CONTEL (01912) has received a statutory demand for repayment and is in contact with creditors to discuss and resolve the situation.

CONTEL (01912) announced that on March 12, 2026, the company received a statutory demand letter dated March 12, 2026 from legal advisors acting on behalf of Ms. Xie Kaicheng (a creditor of the company) pursuant to sections 178(1)(a) or 327(4)(a) of the Companies (Winding Up and Miscellaneous Provisions) Ordinance of Hong Kong. The letter requested the company to pay a total amount of approximately 7.5 million dollars (being the principal and interest of the company's outstanding loan) within 21 days from the date of service of the statutory demand letter, failing which the creditor may petition for the winding up of the company. After making all reasonable inquiries, the directors are aware, fully informed, and believe that the creditor is also a lender for the loan financing granted to Mr. Lin Qiang (an executive director, chairman of the board, and controlling shareholder of the company), and Mr. Lin is the mortgagee for the share charge created over the issued shares of P. Grand (BVI) Ltd. (a company wholly owned by Mr. Lin); and except for the relationships mentioned, the creditor is independent of the company and its related parties. The company is seeking legal advice on the statutory demand letter and evaluating whether it will have any material adverse impact on the company's operations, and is in discussions with the creditor for debt resolution solutions.