Dear Valued Customers, Suppliers, and Business Partners,
Since May 2026, certain international media outlets have published investigative reports concerning Harxon's products and alleged business activities related to Russia. On June 16, 2026, the UK government designated Harxon under its Russia sanctions regime. In response to the concerns raised by these developments, Harxon would like to provide the following clarification regarding the matters reported, its compliance practices, and its planned actions.
Clarification of the Reported Matters
In response to media reports alleging that Harxon's products may have reached Russia through third-party channels, including reported business dealings involving former employees and a third-party company, NavX, Harxon has conducted a comprehensive internal review. Based on this review, the Company provides the following clarification:
1. Corporate Relationship: NavX has no equity, ownership, control, management, organizational, or other corporate affiliation with Harxon. The two companies are independent and are not affiliated entities.
2. Individuals and Business Activities: Anthony Zheng, who was mentioned in the reports, left Harxon in January 2026. Any activities undertaken by him following his departure were conducted independently and were not associated with the Company. Another individual, Masha Wu, forwarded customer inquiries to Anthony Zheng at NavX without Harxon's knowledge or authorization. Such conduct was undertaken in an individual capacity, was inconsistent with the Company's internal policies and compliance requirements, and did not constitute authorized business activities or formal commercial arrangements of Harxon. The Company has dismissed the relevant personnel and is currently collecting relevant evidence to assess the adverse impact and losses caused by the above conduct. The Company does not rule out taking further legal measures, including litigation, to pursue the legal liability of the relevant individuals and to safeguard its legitimate rights and interests.
3. Product Information: The product model referenced in the reports is not a Harxon product, and its model designation does not correspond to the Company's established product naming system. Based on its internal review, Harxon has never manufactured, promoted, or sold products under the referenced model designation.
Harxon's Compliance Practices and Response
In response to the UK government's sanctions measures, Harxon has actively assessed the situation, reviewed the legal basis and scope of application of the relevant measures, and continues to monitor developments while taking appropriate steps to protect its legitimate rights and interests in accordance with applicable laws.
Harxon has also taken the media reports seriously and conducted a dedicated internal review of the business activities, third-party relationships, and compliance matters concerned. The Company remains committed to conducting its business lawfully and responsibly and to complying with applicable international trade and export control regulations. Any unauthorized actions undertaken by individuals do not represent the Company's business position or its formal commercial arrangements.
Based on the findings of its internal review to date, Harxon has not identified any conduct involving the circumvention of regulatory requirements, assistance to third parties in the unauthorized use of its products, or violations of applicable export control requirements.
Future Actions and Commitments
Harxon will continue to monitor developments, take necessary and appropriate measures, further strengthen its compliance management system, and safeguard normal business operations and the legitimate interests of its customers and business partners. The Company will focus on the following priorities:
1. Strengthening Compliance Management: Further enhance its international trade and export control compliance framework, strengthen customer due diligence and end-user and end-use screening, improve business authorization and management procedures, and continuously enhance its ability to identify and mitigate compliance risks.
2. Maintaining Business Continuity: Proactively assess and appropriately address the impact of the relevant sanctions measures, strengthen communication and cooperation with customers, suppliers, and business partners worldwide, and make every reasonable effort to maintain the stability and continuity of product supply, customer service, and business relationships.
3. Enhancing Transparency and Communication: Closely monitor developments and changes in the external environment, provide necessary information and updates through official channels as appropriate, respond to legitimate stakeholder concerns, and protect the Company's lawful interests and reputation.
Harxon remains firmly committed to legal compliance, business integrity, technological innovation, and product development. We will continue striving to provide reliable products and services to customers worldwide. We sincerely appreciate the continued understanding, trust, and support of our customers, suppliers, and business partners.
Harxon Corporation
October 30, 2026
