SHIFANG HLDG (01831.HK): Discloses Board Rejection of Share Transfer Application Involving 75,759,903 Shares over Suspected Illegal Insider Dealing
NewTimeSpace News: Shifang Holding Limited (stock code: 01831) issued a voluntary announcement on August 7, disclosing that a paper-based share transfer application submitted to Tricor Securities Limited, the Hong Kong share registrar, was rejected in a timely manner by the Board over suspected major illegal insider dealing, and the transaction ended in failure. The transfer involved 75,759,903 shares of the Company, representing more than 5% of the total issued share capital.
Reference is made to the Company's voluntary announcement dated June 29, 2026, in which the completion of specific business orders under the relevant results had not been disclosed and the statutory annual financial statement disclosure period was approaching. The Board collectively confirmed that certain individuals, having learned of the relevant business progress through illegal means, attempted to carry out major illegal insider dealing by submitting non-compliant documents to Tricor Securities Limited, the Hong Kong share registrar, which would harm the interests of the Company's shareholders and business partners.
According to the announcement, on July 28, 2026, Tricor Securities Limited received a paper-based share transfer application and formally notified the Company by email on July 29, 2026, requesting confirmation of registration. The Board rejected the confirmation at the earliest opportunity. The ultimate beneficiaries under the non-compliant and failed transfer documents were Mr. Chen Jiaxuan and Mr. Chen Jiarui. The Company has engaged criminal lawyers to confirm the criminal liabilities of the ultimate beneficiaries with a view to pursuing prosecution, pursuant to Section 291 of Part XIV of the Securities and Futures Ordinance (SFO, Cap. 571) (offence of insider dealing), and will report to other law enforcement and regulatory authorities in due course.
The Company noted that after the incident, most of its key business partners called the Board to inquire whether the illegal insider dealing had been completed, and clearly indicated that they would cancel all subsequent business cooperation had the transaction been completed. The Company now discloses the specific process of the transaction and relevant information under Section 307B of the SFO (requirement for listed corporations to disclose inside information) and Rule 13.09(2)(a) of the Main Board Listing Rules, to alert all shareholders. The Company reiterated that it will disclose and pursue legal action against any individual or third party attempting to illegally harm the interests of its shareholders or business partners.
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