WATER INDUSTRY (01129) announced that regarding the winding-up petition filed by International Finance Corporation, on November 25, 2025, the company received a notice from creditor Zhao Yuan (the second supporting creditor) concerning outstanding debts amounting to HKD 2.0125 million (comprising the unpaid principal and accrued interest of bonds issued by the company on April 18, 2018). The notice stated her intention to attend the petition hearing scheduled for January 21, 2026, to support the winding-up petition against the company. As of the announcement date, no winding-up order has been issued by the court.
As previously disclosed, the company is seeking legal advice to determine subsequent steps and potential actions regarding the petition. Meanwhile, the company will proactively maintain communication with the petitioner and supporting creditors, aiming for an amicable resolution under fair treatment of other creditors, including efforts to secure the withdrawal of the petition at the earliest opportunity.
On March 19, 2021, the company’s wholly-owned subsidiary, China Water Industry (Hong Kong) Limited (the borrower), entered into a loan agreement with Kingly Riches Finance Limited (the lender) for a secured loan of HKD 80 million. Under the company’s guarantee dated March 19, 2021, the company secured the borrower’s obligations under the loan agreement and related financing documents. As of the announcement date, the outstanding principal stands at HKD 50 million.
On November 24, 2025, the borrower received a demand letter from the lender’s legal representative, alleging default and demanding repayment of the outstanding amount by November 26, 2025, failing which legal action would be pursued without further notice to recover the amount along with accrued interest, legal fees, and expenses. The company is currently evaluating professional advice, including legal and financial options, to address the repayment. Management is actively negotiating with the lender to explore extensions or alternative solutions.