Contel Technology Company Limited Receives Statutory Demand for US\$7.5 Million

Key Highlights

• Statutory Demand Received: On 12 March 2026, Contel Technology Company Limited (“Contel Technology” or “the Company”) received a statutory demand from the legal advisers of Ms. Tse Hoi Ching, one of its creditors.
• Amount Claimed: The statutory demand is for an aggregate amount of approximately US\$7,500,000, covering loan principal and interest due by the Company.
• Timeline and Consequences: The Company is required to pay this amount within 21 days of the demand’s service. If it fails to do so, the creditor may present a winding-up petition against Contel Technology.
• Legal Reference: The statutory demand was issued pursuant to Section 178(1)(a) or 327(4)(a) of The Companies (Winding Up and Miscellaneous Provisions) Ordinance (Chapter 32 of the Laws of Hong Kong).

Important Details for Shareholders

• Relationship with Company Insiders: Ms. Tse Hoi Ching is not only a creditor of the Company but also the lender of a loan facility due by Mr. Lam Keung—an executive Director, Chairman of the Board, and controlling shareholder of Contel Technology.
• Share Charge Disclosure: She is additionally the chargee of a share charge created by Mr. Lam in respect of all issued shares of P.Grand (BVI) Ltd., a company wholly owned by Mr. Lam. This was previously disclosed by the Company on 12 February 2026.
• Third-party Status: Apart from these relationships, Ms. Tse Hoi Ching is otherwise independent of the Company and its connected persons.
• Company’s Response: Contel Technology is currently seeking legal advice regarding the previous demand and is assessing any significant adverse impacts on its operations. The Board is also in discussions with the creditor to explore possible settlement options concerning the debts.

Potential Share Price Impact and Investor Caution

This announcement is highly price sensitive. The statutory demand for US\$7.5 million represents a significant financial liability for the Company. If the Company fails to settle the debt within the stipulated period and a winding-up petition is filed, it could lead to severe consequences, including forced liquidation and a potential collapse in share value.

The involvement of the controlling shareholder, Mr. Lam Keung, and the cross-linkage of personal and corporate debts may increase investors’ concerns regarding corporate governance and financial stability. The Company has committed to making further announcements as developments arise.

Shareholders and potential investors are strongly advised to exercise caution when dealing in the shares of Contel Technology Company Limited, as the outcome of this statutory demand could have a substantial effect on the Company’s valuation and future operations.

Board Composition (as of 12 March 2026)

• Executive Directors: Mr. Lam Keung (Chairman), Ms. Cheng Yu Pik
• Independent Non-executive Directors: Mr. Chan Kwok Kuen Kenneth, Mr. Dan Kun Lei, Raymond, Mr. Lai Man Shun

Disclaimer: This article is for informational purposes only. It does not constitute investment advice. Investors are urged to conduct their own due diligence and consult their financial advisors before making any investment decisions. The situation described is evolving, and actual outcomes may differ from those anticipated.

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