On October 23, Kiu Hung Int'l (00381.HK) announced that the board of directors paid attention to the report by Zhitong Finance titled "Rising nearly 30 times in 16 trading days, is Kiu Hung Int’l (00381) soaring because of two 'brokers' only?' The report claimed that the company is a manipulated small market cap target, with suspicions of stock price manipulation through the repeated operations by two brokers, which has been reposted by other media.

After making all reasonable inquiries, the board of directors firmly denied the speculation contained in the media reports and deemed them inaccurate and misleading. The company has consulted its legal advisors and will take further action. The company reserves the right to take legal action against entities and/or individuals responsible for spreading misleading and malicious statements, malicious short selling for profit, causing damage to the company's market cap or other compensations. At the same time, the company will report to the police station to investigate the criminal liability of suspected malicious short selling activities. The company reiterated that the accusations in the media reports are baseless, containing misleading statements, malicious and false allegations, and significant factual errors. Lawyers will write to the media on behalf of the company, demanding the removal of such false media reports.

After conducting a reasonable inquiry into the company's relevant situations, the board of directors confirmed that they were not aware of any reasons causing fluctuations in price or volume, or any material that needs to be disclosed to avoid false markets of the company's securities, or any insider information required to be disclosed under the Securities and Futures Ordinance. The company reminds shareholders and potential investors to pay attention to the information on the website of the Stock Exchange.

The board of directors explicitly stated that over the years, the company has actively developed its existing business and sought opportunities beneficial to the company's development. On October 4, 2024, the company appointed Academician Li Lizhong as an executive director and co-chairman. Academician Li has long been engaged in the research of artificial intelligence, metaverse, internet of things, and blockchain, and his research results not only promote technological progress but also bring significant changes to human life. Academician Li's work showcases the wisdom and strength of Chinese scientists to the world, making important contributions to China's development in the field of technology.

The '14th Five-Year Plan' of the country proposes to embrace the digital era, unleash the potential of data factors, promote the construction of a strong network country, accelerate the development of the digital economy, digital society, digital government, and drive the overall transformation of production, lifestyle, and governance through digital transformation. Based on the new wave of digitalization brought by the '14th Five-Year Plan,' various industries will gain more development opportunities. Facing the new stage and features of social and economic development in China, the company will focus on deepening the development and operation of existing businesses in the future, stabilize development towards digital media distribution, and enrich the diversified structure of the business, enabling the company to steadily move forward.