China Zenith Chemical Group Limited (In Compulsory Liquidation): Detailed Quarterly Update

Key Points and Investor Highlights

• Winding-up Order and Liquidation: China Zenith Chemical Group Limited (“the Company”) is currently undergoing compulsory liquidation following a Winding-up Order issued by the High Court on 17 March 2025. Joint and Several Liquidators, Osman Mohammed Arab and Lai Wing Lun, have been appointed to oversee the process.
• Review of Business Operations: The Liquidators are actively investigating the status of the Company’s business operations prior to its liquidation. This involves a comprehensive review of the books and records available to them. At present, no final determination regarding the Company’s business status or financial position has been made, and further updates will be announced as information becomes available.
• Change of Principal Place of Business: Effective 16 March 2026, the Company’s principal place of business in Hong Kong has changed to 10/F, 1 Sunning Road, Lee Garden Three, Causeway Bay, Hong Kong. This relocation could have implications for communication with stakeholders and may reflect ongoing administrative adjustments due to the liquidation.
• Continued Suspension of Trading: Trading of the Company’s shares on the Hong Kong Stock Exchange remains suspended since 10:28 a.m. on 17 March 2025 and will continue to be suspended until further notice. There is currently no timeline for the resumption of trading. This prolonged suspension is a critical issue for shareholders as it directly impacts liquidity and the ability to realize investment value.
• Corporate Governance: Upon the granting of the Winding-up Order, all powers of the Board of Directors ceased. The Joint and Several Liquidators are now managing the affairs, business, and property of the Company as agents, without personal liability.

Price-Sensitive and Material Information for Shareholders

• Winding-Up and Liquidation Process: The Company’s winding-up represents a fundamental change to its operations and future prospects. Shareholders should be aware that such processes can ultimately lead to delisting and loss of equity value, depending on the outcome of the liquidation and any potential restructuring.
• No Immediate Resumption of Trading: The indefinite suspension of trading means shareholders are currently unable to buy or sell shares, which may significantly impact share value when/if trading resumes. The Company has not provided any guidance on the potential timeline for lifting the suspension.
• Uncertain Recovery for Shareholders: The ongoing review by the Liquidators regarding the Company’s assets, liabilities, and business operations introduces substantial uncertainty regarding any possible recovery for shareholders. Updates will be announced as and when the Liquidators have more information.
• Change of Registered Office: While not directly affecting share value, the change in principal office may indicate operational consolidation and ongoing administrative changes as part of the liquidation process.

Additional Details and Context

The Company has reiterated its commitment to keeping the public and investors informed through further announcements as required by the Hong Kong Listing Rules and the Securities and Futures Ordinance. The Joint and Several Liquidators are acting strictly as agents of the Company without personal liability.

As of the date of the announcement, the Company’s former Directors are: Mr Law Tze Ping Eric and Mr Tang Yiduan (Executive Directors); Ms Tsang Naomi and Dato’ Sri Lai Chai Suang (Non-Executive Directors); and Mr Ma Wing Yun Bryan, Mr Tam Ching Ho, and Mr Hau Chi Kit (Independent Non-Executive Directors). However, it is emphasized that all powers of the Directors ceased upon the Winding-up Order.

Conclusion

The situation at China Zenith Chemical Group Limited remains highly uncertain due to the ongoing liquidation and continued trading suspension. Investors are advised to closely monitor further announcements and consider the potential risks to their investment in light of these developments.

Disclaimer: The contents of this article are based on the Company’s official announcements and are intended for informational purposes only. This article does not constitute investment advice. Please consult your financial advisor for guidance specific to your circumstances.

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