The Security Bureau of the Hong Kong Special Administrative Region Government: Next Media’s attribution of liquidation to law enforcement actions is confusing and shifting responsibility

　　On September 6, the Security Bureau of the Hong Kong Special Administrative Region Government made a series of confusing remarks when the board members of Next Media Co., Ltd. announced their resignation, clarifying the following key facts to prevent the public from being misled.

　　First, the law enforcement agencies initiate prosecutions and take other law enforcement actions based on evidence, strictly in accordance with the law, and based on the actions of relevant persons or units.

The details of the prosecution plan (including the alleged behavior, speech, and articles involved in the crime) have been clearly set out in the written charges submitted by the prosecutor to the court during the legal proceedings and submitted to the defendant.

The information of the prosecution plan is only disclosed to the defendant (including his legal representative) during the trial stage of the case, and not to the public. This is a consistent practice in criminal cases, and the purpose is to ensure that future trials can be conducted fairly.

　　Second, with regard to the decision to freeze property, the Secretary for Security of the Hong Kong Special Administrative Region Government has twice followed the relevant provisions in Schedule 3 of the "Implementation Rules of Article 43 of the Hong Kong Special Administrative Region of the People's Republic of China on the Maintenance of National Security Law" ("Implementation Rules"). Provisions issued written notices to freeze property, respectively freezing Li Zhiying’s shares in Next Media Co., Ltd. and the property in local bank accounts of three overseas companies owned by Li Zhiying in May of this year, and freezing in June this year with Apple Daily. 》The property in the local bank accounts of the three subsidiaries (namely Apple Daily Co., Ltd., Apple Daily Printing Co., Ltd. and Apple Internet Co., Ltd.) related to the publishing business and online business is approximately 18 million Hong Kong dollars.

　　The Security Bureau of the Hong Kong Special Administrative Region Government emphasized that the written notice of freezing of property issued in June only included the above three subsidiaries, and Schedule 3 of the "Implementation Rules" has a clear definition of "crime-related property" that can be frozen.

Relevant departments exercise the powers granted by the Hong Kong National Security Law, the "Detailed Implementation Rules" and other relevant laws in accordance with the law and procedures.

　　Third, in its announcement in May this year, Next Media Co., Ltd. stated that the group has sufficient liquidity. As of March 21, 2021, the group still has about 520 million Hong Kong dollars in liquidity. 18 months of operation starting in April

Next Media Co., Ltd. subsequently made an announcement in July this year, disclosing that the company had repaid a loan of HK$150 million to its former chairman and major shareholders in advance in April 2021.

The above situation shows that there is no situation where the listed company is forced to wind up because of the lack of funds to continue operations due to law enforcement actions; and Next Media Co., Ltd. forcibly attributed its business decision to law enforcement actions, attempting to transfer the responsibility and deliberately blaming it for acting in accordance with the law. Law enforcement agencies and maliciously discredit Hong Kong’s National Security Law.

　　Instead, Hong Kong citizens should pay attention to the fact that according to Next Media’s previous annual reports, the loan should still take a long time before it expires. It makes people wonder whether the repayment is intended to deceive the company’s creditors.

The Security Bureau of the Hong Kong Special Administrative Region Government noted that this is one of the concerns mentioned by the Financial Secretary of the Hong Kong Special Administrative Region Government when he announced the appointment of examiners under the Companies Ordinance to investigate the affairs of Next Media Limited.

　　The Security Bureau of the Hong Kong Special Administrative Region Government regretted the misleading remarks made by Next Media Co., Ltd. regarding its board members.

Law enforcement agencies will continue to handle relevant cases strictly in accordance with the law, and will pursue legal liabilities in accordance with the law.

The public must recognize the facts and not be misled.

(Headquarters reporter Liu Zhimin and Zhou Weiqi)