Xinhua International (00058.HK) announced on December 9 that the court found the co-sponsor and controlling shareholder Zhan Pei-Chung guilty of two counts of conspiracy to commit fraud and breach of common law. The Company agrees with the Contracting Party that the foregoing will not affect the Acquisition Agreement. At the same time, the Board considers that the matter does not and will not have any material adverse effect on the normal day-to-day operations and operations of the Group. Mr Zhan is seeking legal advice on whether to appeal the conviction.

The company's shares have been applied for resumption of trading on Thursday (12th).