China Water Industry Group (1129) announced additional information regarding a winding-up petition filed against the company. The petition stems from an alleged default under a loan agreement dated 20 May 2022, pursuant to which the Petitioner disbursed RMB301,270,000 out of a total RMB320,000,000 in two tranches. The first tranche of RMB161,200,000 in July 2022 carries an interest rate of 5.082% per annum, while the second tranche of RMB140,070,000 in July 2023 carries an interest rate of 4.78% per annum. It was further alleged that RMB29,486,216.84 remained unpaid by 15 May 2025, prompting the Petitioner to accelerate the loan on 10 October 2025. China Water Industry Group provided a guarantee for the obligations under this loan.

The announcement also noted claims from bondholders. One bond with a principal of HK$3,000,000, issued on 6 April 2018 and carrying 6% annual interest, reached maturity on 5 October 2025. A second supporting creditor holds a HK$2,000,000 bond issued on 18 April 2018, also at 6% interest, which matured on 17 October 2025. It is alleged that these bond obligations remain outstanding.

According to the announcement, the company had net assets of approximately HK$1,110.0 million as of 30 June 2025 and considers itself capable of fully repaying the outstanding loan and bond indebtedness. The company indicated it will pursue negotiations with the Petitioner and supporting creditors to withdraw the petition. Planned actions include applying for a validation order when appropriate, prioritizing the recovery of receivables, engaging in asset realization, and seeking cooperation with any potential investors. Further announcements will be made if there are significant developments.