HUARONG ENERGY (01101) announced that on May 28, 2026, the company received a legal letter from the law firm of Tam Tak Hing, Kwok Ho Lau, and Liu Liqing, dated May 27, 2026. The letter was accompanied by a statutory demand for debt payment issued by FANCY MOUNTAIN LIMITED (the creditor). The creditor claims to be the assignee of Hongyi Victory Investment Co., Ltd. (Hongyi Victory), one of the holders of the acceptance notes issued by the company. According to the statutory demand, the creditor claims the company is obligated to repay the following debts: (a) acceptance notes issued by the company to Hongyi Victory; and (b) a debt of HKD 100 million, which the creditor, as the assignee, is entitled to claim pursuant to a debt transfer agreement signed between Hongyi Victory and FANCY MOUNTAIN LIMITED on May 11, 2026. The creditor demands that the company repay the debt within 21 days of the statutory demand being served; otherwise, the creditor may file a winding-up petition against the company. The company is currently seeking legal advice on this matter and assessing whether it will have any material adverse impact on the company's operations. Concurrently, the company will engage in discussions with the creditor in an effort to reach an amicable resolution.