CHK OIL (00632.HK): Supplementary announcement on termination of executive director's duties, clarifying distinction between termination of service contract and cessation of directorship and the Board's position

NewTimeSpace News: On 10 August 2026, CHK Oil Limited (stock code: 00632) published a supplementary announcement in relation to the termination of an executive director's duties, providing supplementary information to the announcement dated 27 July 2026 relating to the termination of an executive director's duties (the "Announcement"). As disclosed in the Announcement, the Board resolved on 27 July 2026 to terminate the service contract entered into between the Company and Ms. Wong on 1 August 2025, with the resolution made following the Company's receipt of a notice from its controlling shareholder, New China Petroleum (Hong Kong) Limited ("New China"), stating that it had commenced civil proceedings in the High Court of Hong Kong against, among others, Ms. Wong (as the first defendant), alleging that Ms. Wong was suspected of misappropriating 57,000,000 ordinary shares of the Company which New China claims to own, and that certain share certificates and documents used for pledge purposes were used, without New China's authorisation, to transfer the shares to two other defendants.

The announcement clarified that the Board's resolution on 29 July 2026 was to terminate the service contract in accordance with its terms, and did not constitute an exercise of any power under the Company's bye-laws or applicable Bermuda law to remove Ms. Wong from her position as a director of the Company; the statement in the Announcement that "Ms. Wong has ceased to be an executive director and vice chairman of the Company with immediate effect" did not clearly distinguish between the termination of the service contract and the cessation of the directorship. When the Board considered and approved the termination of the service contract and the Announcement, it had not yet received Ms. Wong's resignation letter, nor had it been informed by Ms. Wong that she considered herself to be in any disagreement with the Board or the Company's management.

In her resignation letter, Ms. Wong stated that her resignation was due to disagreements with the Board and the Company's management on a number of matters for which she failed to obtain satisfactory responses, including concerns that certain prepayments aggregating approximately RMB 70 million paid to Hainan Longyou Group Industrial Co., Ltd. ("Longyou") and Zhoushan Xiangze Energy Co., Ltd. ("Zhoushan") for the purchase of oil and oil-related products might not be utilised in accordance with the agreed timetable, the failure to provide monthly cash balance information of each entity, a temporary inability to access her company email account during July 2026, no response to her offers to assist with handover matters relating to Shiny One Limited and Shiny One, USA, LLC, and outstanding salary and other amounts of approximately HKD 3,748,000 (subject to final reconciliation). The Board acknowledged the matters raised in the resignation letter and clarified that they were only the reasons stated by Ms. Wong for her resignation and may not represent the views of the Board or the Company.

In respect of the prepayments, the Board clarified that the Company has commenced an internal review and sought legal advice, and as of the date of this announcement, approximately RMB 55,157,967 and RMB 7,544,659 of the trade deposits paid to Longyou and Zhoushan respectively remain unutilised, with the Company actively pursuing recovery from the relevant counterparties and taking necessary legal actions in due course; in respect of the alleged unpaid remuneration, the Company considers the amount claimed by Ms. Wong to be groundless and is in discussion with Ms. Wong with a view to reaching an amicable settlement. The Board considers that the termination of the service contract and the cessation of Ms. Wong's directorship will not have any material impact on the Group's business operations, financial position or corporate governance, and under the leadership of the existing management team and the Board, the Group's business and operations will continue as normal.

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