BJ DIGITAL (ASX: 06188) has announced that on July 11, 2026, its controlling shareholder, Zhuhai Huafa Group Co., Ltd., informed the board that it had received a notice from the Doumen District Supervisory Commission of Zhuhai City. The notice stated that Executive Director Mr. Liu Donghai has been detained by the commission, which has formally initiated an investigation into alleged illegal activities involving Mr. Liu.

In light of this development, the board resolved on July 13, 2026, to suspend all of Mr. Liu's operational, administrative, and executive duties and powers within the company with immediate effect. As of the date of this announcement, the company is not aware of the specific details regarding the subject of the investigation.

The board believes that, as of the announcement date, this matter will not have a material adverse impact on the group's business and operations. The company will make further announcements in accordance with the requirements of the listing rules at the appropriate time.