China Water Industry Group Limited Issues Update on Winding-Up Petition: New Creditor Joins, Settlement Talks Ongoing

Key Points for Investors

• Winding-Up Petition Status: China Water Industry Group Limited (“the Company”) is currently facing a winding-up petition. As of the date of the latest announcement (6 March 2026), no winding-up order has been granted by the court.
• New Supporting Creditor: The Company has been served with a Notice of Intention to Appear on Petition by Mr. Wang Jiandong, now the third supporting creditor. He is seeking repayment of HK\$2,000,000, the principal amount of a bond issued by the Company on 15 June 2018. He intends to appear at the court hearing on 25 March 2026 to support the winding-up petition.
• Amicable Negotiations: The Company is engaged in ongoing negotiations with the original petitioner and all supporting creditors to reach an amicable settlement and resolve outstanding debts.
• Potential Withdrawal of Petition: Management is actively working to procure the withdrawal of the winding-up petition, which, if successful, could reduce uncertainty and risk for shareholders.

Detailed Overview

China Water Industry Group Limited has published an update regarding the winding-up petition currently lodged against the Company. This follows a series of previous announcements throughout late 2025 and early 2026, as the Company faces financial challenges, particularly regarding outstanding bonds and creditor claims.

On 6 March 2025, the Company received a Notice of Intention to Appear on Petition from Mr. Wang Jiandong, who has joined as a third supporting creditor. Mr. Wang is seeking repayment of an outstanding HK\$2 million bond principal and has expressed his intention to attend the petition hearing scheduled for 25 March 2026, supporting the case for the Company’s winding-up.

At present, no winding-up order has been granted by the court, meaning business operations continue as usual, but the risk of compulsory liquidation remains if the Company cannot resolve its obligations or reach a settlement with its creditors.

The Company emphasizes that it is in amicable negotiations not only with the original petitioner but also with all supporting creditors, including Mr. Wang. Management’s stated objective is to handle all creditor matters fairly and to seek the withdrawal of the petition as soon as possible. This approach, if successful, may prevent the Company from entering liquidation and could be a significant positive for share value.

Investors should note that the Company is actively attempting to maintain “active and good communication” with all relevant parties and is exploring all possible settlement plans.

Impact and Considerations for Shareholders

• Material Risk: The winding-up petition and the support of additional creditors significantly heighten the risk profile of the Company, potentially leading to court-ordered liquidation if settlements are not reached.
• Price Sensitivity: Any adverse developments, such as the granting of a winding-up order or failed negotiations, could have a severe negative impact on the Company’s share price. Conversely, successful settlements and withdrawal of the petition could provide substantial relief and potentially drive positive price movement.
• Ongoing Updates: The Company has committed to making further announcements to keep shareholders and investors informed of any significant developments regarding the petition and negotiations.
• Exercise Caution: Shareholders and potential investors are expressly advised to exercise caution when dealing in the shares of the Company given the ongoing legal and financial uncertainties.

Company Board and Management

As of the latest announcement, the Company’s board includes Mr. Zhu Yongjun (Chairman and Executive Director), Ms. Chu Yin Yin Georgiana (Executive Director), and independent non-executive Directors Mr. Wong Siu Keung, Joe, Mr. Lam Cheung Shing, Richard, and Mr. Mak Ka Wing, Patrick.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should carefully consider their own financial situation and seek professional advice before making any investment decisions. The situation regarding the winding-up petition is subject to ongoing developments, and there is no guarantee of any specific outcome.

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