China Water Industry Group Ltd – Detailed Update on Winding-Up Petition

Key Points

• The Company is currently facing a winding-up petition, which could have significant implications for its financial health and share value.
• The Court hearing for the winding-up petition has been adjourned to Wednesday, 27 May 2026 following a hearing held on 29 April 2026.
• No winding-up order has been granted by the Court as of the date of this announcement.
• The Fourth Supporting Creditor, Chen Liguo, ceased to be a creditor of the Company on 17 April 2026 and will no longer participate in any further hearings related to the petition.
• The Company is actively engaged in amicable negotiations with the Petitioner and other Supporting Creditors to settle the outstanding sums and pursue possible settlement plans.
• The Company is working towards the withdrawal of the winding-up petition and maintaining active communication with all related parties, emphasizing fairness to all creditors.
• Shareholders and potential investors are strongly advised to exercise caution when dealing in shares of the Company.
• As of the announcement date, the Board remains unchanged and is led by Mr. Zhu Yongjun (Chairman and Executive Director), along with other executive and independent non-executive Directors.

Detailed Analysis

China Water Industry Group Limited has issued an important announcement regarding the winding-up petition currently presented against the Company. This is a crucial event that could potentially affect the share price, as winding-up petitions generally signal severe financial distress and the risk of liquidation for a company.

The most recent development is that the Court, after a hearing on 29 April 2026, has decided to adjourn the petition hearing to 27 May 2026. This adjournment gives the Company additional time to negotiate settlements and possibly resolve the outstanding issues before any drastic legal action is taken.

Of note, the Fourth Supporting Creditor, Chen Liguo, is no longer a creditor as of 17 April 2026, meaning the pool of creditors pursuing the winding-up has shrunk. This change could positively impact the Company’s negotiations and reduce the complexity of the settlement process.

The Company stresses that it is in “amicable negotiations” with the Petitioner and supporting creditors, aiming for a fair settlement plan and the withdrawal of the winding-up petition. Management is actively maintaining communication with all parties involved, adhering to fairness and proper handling of related matters.

As of now, no winding-up order has been granted, which is a reassuring (though not definitive) sign for shareholders. However, the ongoing legal proceedings continue to pose a risk, and the outcome will depend largely on the success of the Company’s negotiations and its ability to satisfy creditors.

The Board remains unchanged, with Mr. Zhu Yongjun as Chairman and Executive Director, and a mix of executive and independent non-executive Directors overseeing the Company.

Investor Guidance and Potential Share Price Implications

• This announcement is highly price-sensitive. The outcome of the winding-up petition, whether settled or not, could have a material impact on the Company’s share price.
• Investors should monitor further announcements closely, as any resolution (or escalation) could trigger significant movements in the stock.
• Shareholders are specifically advised to exercise caution when dealing in shares of the Company due to the uncertainty and risks associated with the ongoing winding-up process.
• Any news of successful settlement or withdrawal of the petition could be positive for the stock, while a failure to resolve the matter may have negative consequences.

Board Statement

The announcement is authorized by the Board, which comprises Mr. Zhu Yongjun (Chairman) and Ms. Chu Yin Yin Georgiana (executive Directors), as well as Mr. Wong Siu Keung, Joe, Mr. Lam Cheung Shing, Richard, and Mr. Mak Ka Wing, Patrick (independent non-executive Directors).

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should exercise their own judgment and consult professional advisors before making investment decisions. The Company’s situation is subject to change, and further announcements are expected. Please note that the ongoing legal proceedings could materially affect the Company’s share price.

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