NETJOY (02131.HK): Independent Internal Control Follow-up Review Completed with All Remedial Measures Implemented; Trading Suspension Continues

NewTimeSpace News: Netjoy Holdings Limited (stock code: 02131) issued an inside information announcement stating that the internal control consultant has submitted the second-phase internal control review report (the Follow-up Review Report) to the audit committee and the board of directors on 6 August 2026, covering its second-phase internal control review work conducted from 22 June 2026 to 24 July 2026 to examine the implementation of remedial measures by the Company, with a review period from 1 June 2026 to 30 June 2026.

The announcement disclosed that the follow-up review was conducted in response to the resumption guidance formulated by the Stock Exchange for the Company. Previously, to demonstrate that the Company has established adequate internal controls and procedures to fulfil its obligations under the Listing Rules, the Company engaged an internal control consultant to conduct an internal control review covering the period from 1 January 2025 to 31 December 2025, and the internal control consultant submitted its internal control review report on 22 June 2026. In respect of the results of the follow-up review, the Group has implemented and operated all remedial measures recommended in the internal control review report to address the internal control deficiencies and matters identified in the internal control review report and the report of the investigating firm.

The announcement noted that two items constitute exceptions to the implementation status. First, in respect of Item 2.5 of the internal control announcement concerning procurement acceptance and recording processes, as the Group had ended its new short-drama purchase business in June 2026 and ceased all subsequent procurement plans in that month as stated in the internal control announcement, the follow-up review of the relevant rectification is not applicable. Second, in respect of Item 4.1 of the internal control announcement concerning inventory management systems and processes, although the updated "Third-Party Warehouse Management System" was issued and became effective in June 2026, as the Group currently operates with a single warehouse and has no internal transfers of goods in its daily operations, the internal control consultant did not obtain samples of goods transfers during the review period. After completing the fieldwork and the follow-up review, the internal control consultant did not identify any updates, events or transactions that would require modifications to the results and findings derived from the fieldwork.

The Board confirmed that, except for the inapplicable implementation statuses noted above, the internal control issues identified by the internal control consultant in the internal control review report and the report of the investigating firm have been adequately addressed through the remedial measures described in the internal control review report, including the enhancement and adoption of written policies and procedures and the implementation of and compliance with such policies and procedures in the Group's operations and business. Based on the work completed by the internal control consultant, the relevant information and data provided by the Group, and the recommended measures implemented by the Group, the Group's current internal control system is sufficient to effectively identify and prevent the internal control issues identified in the main findings of the independent forensic review and the internal control review report, so as to ensure compliance with the Listing Rules.

In respect of the views of the Board and the audit committee, having reviewed the contents and rectification results of the internal control report and the Follow-up Review Report, they consider that management has completed the corresponding rectification of the remedial measures and recommendations, adequately addressed the internal control deficiencies, and that the remedial measures taken are sufficient and adequate. The Company's shares have been suspended from trading on the Stock Exchange since 9:00 a.m. on 1 April 2025 and will remain suspended until the Company complies with all resumption guidance, remedies the issues causing its suspension and fully complies with the Listing Rules to the satisfaction of the Stock Exchange.

NewTimeSpace Disclaimer: All content herein is the original work of NewTimeSpace. Any reproduction, reprinting, or use of this content in any other manner must clearly indicate the source as "NewTimeSpace". NewTimeSpace and its authorized third-party information providers strive to ensure the accuracy and reliability of the data, but do not guarantee the absolute correctness thereof. This content is for reference only and does not constitute any investment advice. All transaction risks shall be borne by the user.