Hong Kong, 6 October 2026 — The Stock Exchange of Hong Kong Limited, a wholly owned subsidiary of Hong Kong Exchanges and Clearing Limited, has issued a “Prejudice to Investors’ Interests Statement” and a public censure against Mr Li Siu Bun, former chief financial officer and company secretary of CHK Oil Limited, following findings of severe misconduct in relation to undisclosed lease terminations in the United States.
The Exchange’s Listing Committee determined on 14 April 2026, and the Listing Review Committee affirmed on 17 June 2026, that Mr Li failed to inform the board, audit committee and external auditors that the U.S. Bureau of Land Management terminated three oil-and-gas leases in November 2022. These leases represented about 40% of CHK Oil’s total assets as at 31 December 2022.
Despite receiving an email in January 2024 detailing the termination and the chairman’s lack of response, Mr Li neither investigated the matter nor escalated it internally. He subsequently prepared the group’s 2023 financial statements as if the leases were intact, applied no impairment, and allowed publication of the 2023 annual results and report without referencing the loss.
Auditors later experienced verification difficulties, yet Mr Li continued to forward their enquiries to the unresponsive chairman without further action. When the board eventually became aware of the issue in August 2024, CHK Oil restated its 2022 and 2023 annual results and its 1H 2023 interim results. The restatement revealed a 58.10% overstatement of total assets as at 31 December 2023.
The Exchange concluded that Mr Li, as senior management under Listing Rule 2A.09(2)(c), caused CHK Oil to release materially inaccurate, incomplete and misleading financial statements, breaching Rule 2.13(2). His conduct was deemed a “serious and blatant failure” in his duties, and the Exchange considers that his future involvement as a director or senior manager of CHK Oil or its subsidiaries could prejudice investor interests.
The sanctions apply solely to Mr Li; no penalties were imposed on CHK Oil or its other current or former directors or executives.