ARRAIL GROUP (06639.HK): Independent investigation report to be submitted in early September, trading remains suspended
NewTimeSpace News: On 1 September 2026, Arrail Group Limited (stock code: 06639) issued a quarterly update under Rule 13.24A of the Listing Rules, reviewing previously disclosed matters including the delay in publishing its 2025 interim results and 2025/26 annual results, the establishment of an independent investigation committee and the launch of an independent investigation, the change of auditor, and the resumption guidance and progress.
The independent investigation was launched on 9 December 2025 under the supervision of the independent investigation committee comprising all independent non-executive directors, and is still being conducted by the independent investigator. As of the date of this announcement, the investigator has substantially completed the final-stage interviews with the Group's current employees, consolidated the factual findings and prepared a draft investigation report for submission to the committee; the final report is expected to be submitted to the committee in early September 2026, after which a draft will be submitted to the Stock Exchange for review. In respect of the internal control review, the Company has engaged an internal control adviser, which has substantially completed the on-site work and provided remediation recommendations on identified control deficiencies, with the Company responding to and implementing remediation measures accordingly, and a follow-up review currently underway. The auditor Guowei expects to publish the 2025 interim results and 2025/26 annual results around the end of September 2026.
On operations, the Company is a leading provider of high-end private dental services in China, operating under the Arrail Dental and Arrail RTK Dental brands, with clinics and hospitals continuing normal operations since the suspension. From 1 April to 30 June 2026, the Group recorded approximately 507,612 patient visits, up approximately 4.4% year on year (Arrail Dental 126,158 visits; Arrail RTK Dental 381,454 visits). The Group had 3,177 full-time employees as of the date of this announcement and 969 dentists as of 30 June 2026. The repeat-visit rate of loyal customers (those who received treatment again within the preceding 12 months) was approximately 46.7% as of 30 June 2026, up from approximately 45.5% as of 30 June 2025. The Company stated that it maintains sufficient cash reserves and healthy cash flow. Trading in the Company's shares has been suspended on the Stock Exchange since 9:00 a.m. on 1 December 2025 and will continue to be suspended until the publication of the 2025 interim results, the 2025/26 annual results and any other inside information that may be required to be disclosed under the Listing Rules.
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