Geotech (HKG:1707) said it was informed that the company and its controlling shareholder Chen Zhi were placed on the U.S. sanctions list, according to a Hong Kong bourse filing Wednesday.

Shares of the engineering firm fell over 5% in late morning trade Thursday.

The firm said most of its material assets were located in Hong Kong and the majority of its customers and suppliers were not located in the U.S.

Furthermore, the company denied that its board or members of senior management were involved in any activity that could lead to sanctions. It added that Chen was also no longer a staff of the company and had no role in the business.

Geotech said it did not expect the sanctions to have any material impact on its business, and that it was seeking legal advice on the development.