Contel Technology Company Limited (Stock Code: 01912) issued a supplemental announcement on 17 March 2026 detailing winding-up petitions filed in Hong Kong against its wholly owned units Flyring Electronics Limited and IH Technology Limited.

The petitioner, Ms. Feng Tao, alleges two outstanding loans: a 0.55 million US-dollar facility dated 30 December 2012 and a 14.00 million renminbi facility dated 30 March 2017. Management states no records of these liabilities exist in the subsidiaries’ books and highlights that the petitioner, identified as a controlling shareholder at IPO, did not disclose any such indebtedness in the June 2019 prospectus, which confirmed all shareholder financial assistance had been fully settled pre-listing.

Contel’s board questions the authenticity and status of the alleged borrowings and confirms the subsidiaries will “strenuously defend” the petitions while exploring possible settlement or withdrawal.

Operational exposure is significant: the two subsidiaries generated the majority of Group revenue for the six months ended 30 September 2025, yet the company acknowledges it lacks sufficient cash to discharge the claimed debts if ruled liable.

The High Court of Hong Kong has scheduled the hearing for 6 May 2026. Management warns that an adverse ruling and subsequent winding-up would materially disrupt group operations. Shareholders and potential investors are urged to exercise extreme caution when dealing in the company’s securities.