China Hongbao Holdings Limited reported a marked turnaround for the year ended 31 March 2026 (FY2026), moving to a net profit of HK$4.64 million from a HK$9.75 million loss a year earlier. The swing was driven mainly by a HK$17.68 million gain recognised from the deconsolidation of its insolvent construction subsidiary, Ambitious Achievement Group, which was ordered to be wound up on 11 February 2026.

Financial highlights • Revenue rose 43.6% year over year to HK$116.11 million, fuelled by a 223.6% surge in internet services turnover to HK$112.23 million. • Gross profit fell 17.1% to HK$19.09 million as overall gross margin slid to 16.4% (FY2025: 28.5%), reflecting higher promotion and system-upgrade costs and a HK$5.70 million gross loss in the construction segment. • Administrative expenses declined 24.2% to HK$20.79 million, while finance costs dropped 65.3% to HK$0.42 million. • Impairment charges on financial and contract assets increased to HK$6.42 million (FY2025: HK$3.86 million). • Income-tax expense rose to HK$4.52 million (FY2025: HK$0.36 million) in line with improved profitability.

Segment performance • Internet services (O2O e-commerce and supply-chain management) contributed 96.6% of group revenue, with O2O e-commerce alone generating HK$103.27 million, up 305.6% year on year. • Foundation and other construction works revenue plunged 91.6% to HK$3.89 million, reflecting the cessation and liquidation of Ambitious Achievement. • The supply and installation of new-energy charging piles recorded no revenue after the related PRC subsidiary was deconsolidated.

Balance-sheet recovery • A HK$20.10 million debt waiver by Executive Director and Chairman Cheng Jun, including an assigned shareholder loan, lifted the Group from a FY2025 net liabilities position to net assets of HK$10.04 million at 31 March 2026. • Cash and cash equivalents stood at HK$11.84 million (31 March 2025: HK$36.77 million) while lease liabilities declined to HK$0.48 million (31 March 2025: HK$1.69 million). The Group had no other borrowings outstanding after deconsolidation.

Auditor’s qualified opinion CCTH CPA Limited issued a qualified opinion, citing insufficient audit evidence for the assets, liabilities and results of Ambitious Achievement Group prior to its deconsolidation, and consequently for the HK$17.68 million gain recognised.

Operational developments and outlook • The internet services segment remains the Group’s growth engine, supported by expanded platform functionality and increased merchant participation. • The Group will evaluate opportunities to rebuild its construction presence in Hong Kong and pursue renovation-consultancy business in Mainland China via a newly established entity. • Activities in new-energy charging-pile installation have ceased following the deconsolidation of Gaochuang Yuanwei.

Dividend No dividend was declared for FY2026.

Capital structure Issued share capital remained at 953.38 million shares. No new shares were issued during FY2026.

Subsequent events The Group continues to cooperate with the provisional liquidators of Ambitious Achievement and will participate in forthcoming creditors’ meetings related to the winding-up process.