On December 10th, Gelunhui (00309.HK) announced that the board of directors of the company has established a directorate committee (consisting of all independent non-executive directors of the company) to conduct further investigations into the serious improper conduct and failure to comply with the director's duty of care and / or trust liability of Mr. Chen Zhenhe. The independent directorate committee has completed its investigation, and recommended that the board of directors initiate legal proceedings against Mr. Chen, former executive director of the company, and Mr. Liu Shaoxiong, former company secretary and former chief financial officer.

On December 9, 2020, the plaintiff, the company and its wholly-owned subsidiary, Xinhua News Media Co., Ltd., directly issued summonses to Mr. Chen (the first defendant) and Mr. Liu (the second defendant) in the regional court, regarding the defendants' violation of the employment contract and the first defendant's violation of the trust liability, including but not limited to unauthorized salary increases and claiming and / or approving ineligible medical expenses without the consent of the board of directors. The plaintiff claimed amounts (together with interest, costs and other relief) of approximately HKD 900,000 and HKD 85,000 from the first and second defendants, respectively.