Sunac Services: Directors Receive Regulatory Warning and SZSE Criticism Over Sunac Real Estate Disclosure Lapses

Bulletin Express04-10

Sunac Services Holdings Limited announced that Chairman and Non-executive Director Wang Mengde and Non-executive Director Gao Xi have been cited by the Tianjin Securities Regulatory Bureau and the Shenzhen Stock Exchange (SZSE) for historical disclosure breaches related to Sunac Real Estate Group Co., Ltd., a wholly owned subsidiary of Sunac China Holdings Limited.

\n\nKey regulatory actions • Tianjin Securities Regulatory Bureau issued a warning letter to Sunac Real Estate, Mr. Wang (in his capacity as chairman and general manager of Sunac Real Estate), and Mr. Gao (person-in-charge of information disclosure). • SZSE imposed disciplinary sanctions, issuing a formal criticism against the same parties.

\n\nBasis for sanctions From end-2021 to mid-2025, Sunac Real Estate failed to publish timely updates on overdue debt and asset seizures as required under the Administrative Measures for the Issuance and Transactions of Corporate Bonds, the Administrative Measures for Information Disclosure of Enterprise Credit Bonds, and SZSE’s corporate bond listing rules.

\n\nBoard assessment • The Board—excluding Mr. Wang and Mr. Gao—attributed the non-compliance to “objective factors” such as the scale of Sunac Real Estate’s operations, debt position, and resource allocation challenges during periods of operational difficulty. • The Board concluded that neither director engaged in dishonest or fraudulent behavior, affirmed their integrity and diligence, and confirmed their continued suitability to serve. • The Board does not expect the regulatory measures to have a material adverse impact on the Group’s business or operations.

\n\nAdditional disclosures Mr. Wang and Mr. Gao stated that, apart from the matters detailed above, there is no further information requiring disclosure under Listing Rules 13.51(2)(h)–(v), and no other issues need to be brought to shareholders’ attention.

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