STRONG PETRO (00852) has announced that following the appointment of a new management team on January 25, 2025, a comprehensive review of the Group's financial records was conducted. The Company and its indirectly wholly-owned subsidiary, Strong Petro Hong Kong Limited, discovered a series of unauthorized payments from one of Strong Petro Hong Kong's bank accounts between December 2024 and January 2025. The total amount of these payments was HKD 8.8009 million. The payments were made via cheques signed by the Company and Strong Petro Hong Kong's former director, Mr. Yao Guoliang, to several external entities.

The Company has been unable to locate any documents authorizing the payments or justifying their issuance. Furthermore, no related service contracts, invoices, or records of services provided by the recipient entities have been found that would substantiate the legitimacy of the payments.

On February 25, 2026, the Company and Strong Petro Hong Kong (collectively referred to as the "Plaintiffs") filed a Writ of Summons with the Court of First Instance of the High Court of the Hong Kong Special Administrative Region. The legal action is against the Company's and Strong Petro Hong Kong's former directors, Mr. Yao Guoliang and Mr. Tan Xiao (collectively, the "Director Defendants"), as well as the recipient entities (the "Entity Defendants", together with the Director Defendants, the "Defendants").

The Plaintiffs are seeking recovery of the funds and any benefits derived therefrom from the Director Defendants and the Entity Defendants. The claims are based on the Director Defendants' alleged breach of their fiduciary duties to the Plaintiffs. The Entity Defendants are claimed to be liable for unjust enrichment from receiving the payments, and/or for having received their respective shares of the funds as knowing recipients, dishonest assistants, and/or constructive trustees.

Additionally, the Plaintiffs are claiming from the Defendants damages to be assessed, equitable compensation and/or restitution, interest, costs, and any further or other relief the court deems appropriate.