Shifang Holdings (01831): The board of directors of the company promptly vetoed to stop major illegal insider transactions and protect the basic rights and interests of all shareholders

Zhitong Finance App News, Shifang Holdings (01831) issued an announcement. On July 29, 2026, a major illegal insider transaction in the company's paper shares submitted to the Hong Kong Stock Transfer Office “Zhuojia Securities Limited” ended in failure. This highlights the strict governance of the board of directors of the company, which puts safeguarding the basic rights and interests of every shareholder as the first priority, and successfully safeguarding the basic legal image of Hong Kong listed companies in this major illegal insider transaction.

It is mentioned that the completion of specific business orders with the relevant results described in the Company's “Voluntary Notice and Disclosure Transaction” dated June 29, 2026 has not been disclosed and that the disclosure period for the statutory financial year statements is approaching. After members of the board of directors of the Company collectively confirmed (complete evidence has been submitted to the supervisory and enforcement agencies), some relevant persons used non-compliant documents to the Hong Kong Stock Transfer Office “Zhuojia Securities Co., Ltd.” with the intention of harming the basic rights and interests of the Company's shareholders and business partners. After the incident occurred, most of the Company's important business partners called the Company's board of directors to inquire whether the illegal and major insider transaction was completed because if the transaction was completed, it would seriously affect the basic confidence of the Company's shareholders in the Company's stock price and management capacity. Most of these important business partners clearly indicated to the Company that if such an illegal major insider transaction was completed, they would cancel all subsequent business cooperation with the Company. The Company has now officially announced that this major illegal insider transaction has ended in failure. The Company now discloses information relating to the specific process of this major illegal insider transaction and the documents provided in accordance with SFO Cap. 571 section 307B (Requirement for Listed Corporations to Notify Inside Information) of the Securities and Futures Ordinance and section 13.09 (2) (a) of the Main Board Listing Rules to warn all shareholders to protect the safety of their assets and protect the right of all shareholders to know.

On July 28, 2026, the Hong Kong Stock Transfer Office “Zhuojia Securities Limited” received a paper stock transfer procedure and officially notified the Company via email on July 29, 2026 to confirm registration. The Board of Directors of the Company immediately submitted a veto confirmation, successfully protecting the basic rights and interests of all shareholders and business partners from being lost. At the same time, it also won the trust and commitment of most important business partners of the Company to continue to maintain business cooperation with the Company to ensure the steady development of the Company's financial performance. This major illegal insider transaction involved 75,759,903 shares of the Company's shares (more than 5% of the total share capital). The ultimate beneficiaries of the non-compliant and failed transaction transfer documents are Mr. Chen Jiaxuan and Mr. Chan Ka-rui. The Company has appointed criminal lawyers to confirm the criminal liability of the ultimate beneficiaries of this major illegal insider transaction based on section 291 (Criminal Offences of Insider Dealing/Insider Trading) of the Securities and Futures Ordinance (Securities and Futures Ordinance, Cap. 571, SFO for short) Criminal Offences (Part XIV) Prepare for prosecution and report cases one after another to law enforcement supervisory agencies other than the law enforcement supervisory agencies that the Company has lawfully reported. The Company once again solemnly promises to all shareholders and business partners that the Company has strict governance, stable business development as announced, and that any individual or legal third party with the intention of unlawfully harming the basic rights and interests of the Company's shareholders or business partners will be disclosed and prosecuted in accordance with the law.