SHIFANG HLDG (01831.HK): Shares of several shareholder companies allegedly transferred without authorisation, trading remains suspended
NewTimeSpace News: On 31 August 2026, Shifang Holding Limited (stock code: 01831) issued an inside information announcement regarding suspected unauthorised share transfers. The shares of shareholders Happy Day Development Limited (6,195,504 shares, approximately 0.58%) and Song Tai Limited (13,736,411 shares, approximately 1.28%) have been improperly transferred to Chen Jiaxuan and Zou Huifang under share transfer documents dated 28 July 2026, without the knowledge or authorisation of Zheng Shouling, the sole director and beneficial owner of the two companies. The Company has also received materials from other shareholders, including Neo Delight International Limited (7,500,000 shares), Mingyao Investment Holdings Limited (25,000,000 shares), Righteous Stars Limited (7,500,000 shares), Giant Prestiage Limited (7,500,000 shares), Chuangying International Capital Limited (814,554 shares) and Shengtian Limited (20,000,000 shares), alleging that their shares were transferred by the share registrar without authorisation to Chen Jiaxuan, Chen Jiarui and Zou Huifang through unauthorised transfer instructions. The relevant companies have each confirmed that the company seals on the share transfer documents were only similar to, but visibly different from, the seals on file with the registrar.
The Company has contacted all law firms that handled and signed the relevant share issuance documents, and has invited the shareholders and directors of the relevant shareholder companies to attend the relevant Hong Kong law enforcement authorities to verify on-site the relevant Chinese and English legal documents, judicial documents and funding sources. The Company also disclosed that executive director Mr. Chen Zhi is alleged to have induced Ms. Wu Wenlin, a joint venture partner, to sign a share transfer document as a witness during the suspected theft. Ms. Wu has clarified to the Company that she was unaware of the nature of the document and has never met any shareholder or director of the transferor companies, and is willing to attend the Hong Kong police with the Company's lawyers to clarify and remove her personal legal risks; the Board stated that it was not aware of Mr. Chen Zhi's alleged conduct and will unconditionally support Ms. Wu's lawful rights protection. The Company also disclosed that Mr. Chen Zhi was diagnosed with advanced lung cancer, brain atrophy and cerebral infarction in 2023, and has been unable to enter Hong Kong for more than three years due to personal reasons, and the other Board members have so far been unable to confirm whether he remains capable of performing his duties as an executive director.
The Company reported the suspected unauthorised share transfers to the Hong Kong police at around 11:00 p.m. on 21 August 2026 and is awaiting investigation. Trading in the Company's shares has been suspended since 10:04 a.m. on 24 August 2026, and the Company has applied to continue the suspension as the relevant law enforcement and regulatory authorities have not completed their work. The Company stated that its operations and financial position are unaffected, and that it will provide full funding for the rights protection costs of the companies whose shares were allegedly stolen, with further announcements to be made in due course.
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