** Shares of electrical engineering services contractor Khoon Group plunge as much as 18.9% to HK$0.15, their lowest level since debut in July 2019

** Stock trims losses, down 0.5% by lunchbreak

** Singapore-focused Khoon said late on Wednesday it noted its 55% controlling shareholder Chen Zhi and the company have been subject to certain sanctions imposed by government authorities in the U.S.

** Says none of the company, subsidiaries, directors or senior management are involved in alleged activities which led to the sanctions, and it is seeking legal advice regarding the sanctionss

** Khoon expects the sanctions do not have any material adverse impact on its business operations

** Britain and the U.S. on Tuesday sanctioned a Southeast Asia-based multinational network accused of operating large-scale online 'scam centres', including Chinese-Cambodian tycoon Chen Zhi for online scams

** Stock of construction contractor Geotech 1707.HK, which Chen also owns 54.79% stake, dropped 10.3% to HK$0.052 on Friday, the lowest since May 2024

** Khoon and Geotech dropped 20.6% and 25.6% respectively on Thursday

(Reporting by Donny Kwok)

((donny.kwok@thomsonreuters.com))