Shimao Group Holdings Limited (Shimao) has detailed a series of measures undertaken since 24 March 2026 to address the auditor’s prior disclaimer of opinion and reinforce its balance-sheet resilience.

Debt restructuring advances • The company’s US$ off-shore restructuring, effective 21 July 2025, has seen steady execution. Mandatory convertible bonds with an aggregate principal of US$4.60 billion, or about 91 % of the total issued on the effective date, have been exchanged for new shares. • On-shore liabilities are being renegotiated. Year-to-date, Shimao has extended on-shore bank loans totaling RMB7.80 billion, with maturities stretched to as far as 2038.

Debt-for-equity swap with on-shore creditors • On 15 May 2026 Shimao and subsidiary Shanghai Shimao Co., Ltd. agreed to resolve RMB379 million in medium-term notes and RMB41 million in accrued interest by issuing 71.54 million new shares. The shares were allotted on 3 June 2026, fully settling the RMB420.00 million obligation.

Working-capital initiatives • Targeted programmes to monetise receivables, land prepayments and deposits, alongside utilisation of government-regulated account balances, are supporting near-term liquidity and funding project costs and taxes.

Cost optimisation • Streamlining of organisational layers has continued. Administrative expenses for the five months ended 31 May 2026 fell approximately 4 % versus the same period in 2025.

Operational performance • Contracted sales for the first five months of 2026 reached RMB6.95 billion. • About 3,000 housing units have been delivered year-to-date, easing delivery pressure and underpinning operational stability.

Shimao states that further updates on resolving the auditor’s disclaimer of opinion will be released in accordance with Hong Kong Listing Rules.