Chiho Environmental Group Limited (CHIHO ENV) disclosed that its wholly-owned subsidiary, Chiho-Tiande (HK) Limited, is embroiled in legal proceedings initiated by Hong Kong Science and Technology Parks Corporation (HKSTP) in the Lands Tribunal under Application No. LDPE 764 of 2025.

According to the announcement, HKSTP—landlord of a Yuen Long site leased to Chiho-Tiande since 1997—alleges the subsidiary ceased operations at the premises from 23 January 2024 and left the property unused for over three consecutive months, breaching the lease’s user covenant. After what HKSTP states was an unremedied six-month notice period that expired on 23 February 2025, the landlord exercised a contractual right of re-entry and terminated the lease effective 11 June 2025.

HKSTP is seeking an order for possession, additional premium on a daily-rate basis for the period of the alleged breach, mesne profits, management and maintenance charges, government rates from 11 June 2025 until vacant possession, plus interest and legal costs.

Chiho Environmental’s current board—installed after a complete change in 2026—was not in office when the litigation began. The company has engaged legal counsel, confirmed that the proceedings remain active, and stated that settlement discussions are under way. Management is evaluating the financial impact and expects to book an appropriate provision in forthcoming financial statements in line with applicable accounting standards.

Trading in Chiho Environmental’s shares has been suspended since 1 April 2025 and will remain halted pending fulfilment of resumption guidance from the Hong Kong Stock Exchange. Further announcements will be issued as required by the Listing Rules.