CONTEL (01912) announced that on March 12, 2026, the company received a statutory demand issued by legal counsel representing Ms. Xie Kaicheng, a creditor of the company. The demand was issued under Sections 178(1)(a) or 327(4)(a) of the Hong Kong Companies (Winding Up and Miscellaneous Provisions) Ordinance (Chapter 32), dated March 12, 2026. It requires the company to pay a total amount of approximately $7.5 million (comprising the principal and interest of a loan owed by the company) within 21 days from the date of service of the statutory demand. If the company fails to comply, the creditor may file a winding-up petition against the company.

To the best of the directors' knowledge, information, and belief, after making all reasonable inquiries, the creditor is also the lender of loan financing extended to Mr. Lin Qiang, an executive director, chairman of the board, and controlling shareholder of the company. Additionally, the creditor is the chargee of a share charge established by Mr. Lin over all the issued shares of P.Grand (BVI) Ltd., a company wholly owned by Mr. Lin. Apart from this relationship, the creditor is an independent third party with no connection to the company or its related parties. The company is currently seeking legal advice regarding the statutory demand and assessing whether it will have any significant adverse impact on its operations. The company is also in communication with the creditor to explore potential settlement options for the debt.