Dezign Format Group Limited Issues Update on Independent Director Amid Audit Review at Mirxes

Key Highlights from the Announcement

• Independent Director, Mr. Choo Beng Lor, Implicated in Audit Review at Mirxes: Mr. Choo, who serves as the Chief Financial Officer and Chief Corporate Development Officer of Mirxes Holding Company Limited, is subject to an ongoing independent review at Mirxes.
• Audit Findings and Transaction Review at Mirxes: Mirxes’ auditors, KPMG, have raised concerns regarding 14 transactions (mainly prepayments to service providers and vendors for new projects) totaling approximately US\$14.8 million, primarily occurring in the second half of 2025. These matters require further independent investigation before Mirxes’ 2025 annual results can be released.
• Formation of an Independent Investigation Committee (IIC): The IIC has been established at Mirxes to review the identified transactions and report findings directly to its board.
• Trading Suspension at Mirxes: Mirxes’ shares have been suspended from trading on the HKEX since 9:00 a.m. on 1 April 2026, pending resolution of the audit issues.
• No Allegations or Findings Against Mr. Choo: The review is ongoing, with no allegations or findings of wrongdoing against Mr. Choo at this stage.
• Nominating Committee’s Assessment: Dezign Format Group’s Nominating Committee (NC), with Mr. Choo recusing himself, has determined that Mr. Choo can continue his role as Independent Director, citing his professionalism and ethical conduct since his appointment in 2025.
• Ongoing Oversight and Updates: The NC and Board will reassess Mr. Choo’s position if circumstances change. Mr. Choo has committed to updating the Board on any material developments regarding the investigation at Mirxes.
• Direct Impact on Dezign Format Group Limited: The company notes that the review at Mirxes does not involve Dezign Format Group or its subsidiaries, and thus currently does not affect its business or operations.

Important Information for Shareholders

• Potential Price Sensitivity: While the current investigation is centered on Mirxes and not Dezign Format Group, the involvement of a key director (Mr. Choo) in a high-profile audit review at another listed entity could create uncertainty or negative sentiment among investors, potentially impacting share price.
• Business Continuity Assured: Dezign Format Group’s Board, with Mr. Choo recusing himself, has decided to maintain Mr. Choo in his current roles to ensure business continuity, reflecting confidence in his integrity and professionalism.
• Ongoing Monitoring and Shareholder Caution: The Board and NC have pledged to monitor the situation closely and will update shareholders promptly on any material developments. Shareholders are advised to exercise caution and consult their professional advisers regarding any trading decisions.
• Regulatory Oversight: This announcement has been reviewed by the company’s sponsor, Evolve Capital Advisory Private Limited, but not by the Exchange, which assumes no responsibility for its contents.

Detailed Background

Mirxes Holding Company Limited, listed on the Hong Kong Stock Exchange, is undergoing an independent review of 14 transactions flagged by auditors, totaling US\$14.8 million. These prepayments for new projects, largely in the latter half of 2025, have delayed the publication of Mirxes’ 2025 annual results and triggered a trading suspension. An Independent Investigation Committee is overseeing the review process, which is still ongoing with no individuals accused of wrongdoing.

Mr. Choo Beng Lor, who holds top executive positions at Mirxes, is also an Independent Director at Dezign Format Group Limited. The Nominating Committee of Dezign Format Group, recognizing the seriousness of the situation but noting the absence of direct implications or allegations against Mr. Choo, has affirmed his continued suitability as an Independent Director. The Board concurs, emphasizing that the investigation pertains solely to Mirxes and does not involve Dezign Format Group or its operations.

The company underscores its commitment to transparency and will continue to evaluate Mr. Choo’s position should new information arise. Shareholders are warned to be vigilant given the potential for sentiment-driven volatility, even though the company’s business remains unaffected at this time.

Shareholder Actions and Advisory

Shareholders are strongly advised to exercise caution in trading Dezign Format Group Limited shares. The company will issue further announcements as warranted by new developments. If in doubt, shareholders should seek advice from their stock brokers, bank managers, solicitors, or other professional advisers.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should exercise due diligence and consult their professional advisers before making any investment decisions. The information is based on the latest company announcement and may be subject to change as new developments arise.

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