Graphex Group Faces Further Governance Issues with Director Resignation, Becomes Non-Compliant with HKSE Rules

summarizeSummary

Graphex Group announced the resignation of an independent non-executive director, leading to multiple non-compliance issues with HKSE Listing Rules, compounding recent governance challenges. Concurrently, the company increased its stake in Tronche International New Energy Vehicles, which has commenced pilot production of EVs.

check_boxKey Events

• Independent Director Resigns

  Mr. Wang Yuncai resigned as an independent non-executive director, effective February 5, 2026, citing other business development. This follows the passing of another independent director on January 15, 2026.

• Multiple Listing Rule Non-Compliance

  The resignation causes Graphex Group to be non-compliant with several HKSE Listing Rules, including requirements for the number of independent non-executive directors, board committee compositions, and gender diversity. The company has three months to rectify these breaches.

• Increased Stake in EV Venture

  Graphex's subsidiary, Allied Apex, acquired an additional 40% interest in Tronche International New Energy Vehicles Co., Limited for HK$1.5 million (approximately US$192,000), increasing its total ownership to 58% and enabling consolidation of Tronche into Graphex's financial statements.

• EV Pilot Production Commences

  Tronche's subsidiary, Hachi, has commenced pilot production of short-range electric vehicles at its 60,000 m² plant, with Tronche having funded USD500,000 as paid-up capital to Hachi.

auto_awesomeAnalysis

The resignation of an independent non-executive director, Mr. Wang Yuncai, marks the second director departure in less than a month and significantly exacerbates Graphex Group's corporate governance challenges. This event immediately renders the company non-compliant with multiple critical HKSE Listing Rules, including board composition, committee requirements, and gender diversity. Such persistent governance issues, especially for a company already trading on the OTC Expert Market, raise serious concerns about oversight and regulatory standing, potentially impacting investor confidence and future listing prospects. While the concurrent announcement of an increased stake in Tronche International New Energy Vehicles and the commencement of pilot EV production offers a positive business development, the relatively small acquisition value and the severity of the governance breaches overshadow this operational progress. Investors should closely monitor the company's efforts to regain compliance and address its board composition.