Shimao Services Holdings Limited announced that the China Securities Regulatory Commission (CSRC) has issued an Advance Notice of Administrative Penalty to Shanghai Shimao Co., Ltd.—a non-wholly owned subsidiary of Shimao Group—and to several related parties, including Jason Hui, who serves as Chairman and Executive Director of Shimao Services.

According to the notice, the CSRC’s investigation found that Shanghai Shimao failed to provide timely and complete information on indebtedness, related-party transactions, debt defaults, guarantees, and litigation matters for the 2020-2022 financial years. The regulator plans to levy penalties comprising: • A warning; • A monetary fine of RMB4.90 million; and • A six-year ban on Mr. Hui’s access to China’s securities market, prohibiting him from holding senior positions or engaging in securities business at any issuer or securities institution.

The CSRC’s decision is not yet final. The parties named in the notice may submit statements, present defenses, and request a hearing before penalties are confirmed. Shimao Services stated that Mr. Hui is currently assessing the situation.

The company added that Shanghai Shimao has made “significant progress” in rectification measures and will continue to advance remaining items. The board of Shimao Services—excluding Mr. Hui—believes the Advance Notice will not have a material adverse impact on the Group’s business or operations.

Shimao Services will continue to monitor developments and provide further updates if material information arises. The board confirmed there is no additional information on Mr. Hui requiring disclosure under Hong Kong Listing Rules 13.51(2)(h) to (v).