Shimao Group Holdings Limited (Shimao Group) disclosed that its 63.9 %-owned subsidiary, Shanghai Shimao Co., Ltd., has received an Advance Notice of Administrative Penalty from the Shanghai Regulatory Bureau of the China Securities Regulatory Commission (CSRC). The notice, dated 26 June 2026, stems from information-disclosure violations covering the 2020–2022 financial years.

The CSRC investigation found that Shanghai Shimao failed to make timely and complete disclosures on indebtedness, related-party transactions, debt defaults, connected guarantees, as well as litigation and arbitration matters. As a result, the regulator intends to impose the following penalties on the “Relevant Parties,” including Chairman, President and Executive Director Mr. Hui Sai Tan, Jason:

• Formal warning • Aggregate monetary fine of RMB4.90 million • Six-year securities market access prohibition for Mr. Hui, preventing him from participating in securities business or holding senior posts at any listed company

The CSRC’s decision is not yet final. The parties are entitled to submit statements, present defences and request a hearing before sanctions are confirmed.

Shimao Group’s board—excluding Mr. Hui—stated that, based on currently available information, the prospective penalties are not expected to exert a material adverse impact on the Group’s business or operations. The company added that Shanghai Shimao has made “significant progress” in rectification efforts and will continue to implement remaining measures.

Shimao Group committed to monitor developments closely and provide further updates as warranted under Hong Kong Listing Rule 13.51B(2). At the time of the announcement on 28 June 2026, no additional matters relating to Mr. Hui required disclosure under Listing Rules 13.51(2)(h)–(v).