Zhenro Properties (HKG:6158) controlling shareholder Ou Zongrong is facing legal compulsory actions due to his "alleged breach of laws involving criminal offense," according to a Tuesday filing with the Hong Kong Exchange.

The company did not specify the nature of these offenses, the filing said.

Zhenro said Ou does not hold senior management positions and "has not been, and is not, a director," the filing said.

The property company released the statement after Ou Zongrong's son, Ou Guowei, resigned as a non-executive director, according to a separate South China Morning Post report.

Zhenro defaulted in 2022, and as of the end of 2024, held total liabilities of 123.4 billion yuan, the report said.

Shares fell 5% during Tuesday's afternoon trading.