STRONG PETRO (00852) has announced that the company, as one of the defendants, has received a Writ of Summons issued by the Court of First Instance of the High Court of the Hong Kong Special Administrative Region dated March 23, 2026. The writ was filed by lawyers representing Euro American International Energy L.L.C., the plaintiff, against the company. The other defendants, collectively referred to with the company as the "defendants," include three of the company's directors and/or management members, two subsidiaries of the company, and a third-party individual along with an entity wholly owned by that individual.
The plaintiff is primarily seeking to recover an outstanding sum originating from an arbitration award dated March 24, 2022. The amount is $34,177,600 USD, plus interest and costs, which was originally due to be paid to the plaintiff by the company's former indirect subsidiary, STRONG PETRO (Macau Offshore Commercial Services) Limited (STRONG Macau). STRONG Macau entered voluntary liquidation in 2021. The award relates to a crude oil sales agreement entered into between STRONG Macau and the plaintiff on October 14, 2018.
At all material times, STRONG Macau had a sole director, Mr. Yao Guoliang, who was also a former director and chief executive officer of the company until January 25, 2025. The plaintiff alleges that the defendants conspired to transfer assets out of STRONG Macau around the time of its liquidation, with the primary intention of prejudicing the plaintiff's interests and obstructing the enforcement of the award.
To the best of the company's knowledge, the claims against it and the other defendants are based on allegations of conspiracy. They do not stem from any contractual relationship between the plaintiff (as one party) and the company, its three named directors and/or management members, and two subsidiaries (as the other party). The company denies these allegations and intends to defend itself against the plaintiff's claims. As of the date of this announcement, the company has instructed its legal advisors to take the necessary steps to file a defense within the timeframe stipulated by the court.