China Hongbao Holdings Limited (8316) issued a seventh supplemental announcement regarding the winding-up of its subsidiary Ambitious Achievement New Materials Holding Limited (Ambitious Achievement) and the loss of control after provisional liquidators were appointed on 11 February 2026. Ambitious Achievement’s operations constituted the Group’s entire construction segment and have been deconsolidated from the Group’s financial results effective 11 February 2026.

According to disclosed financial data for the six months ended 30 September 2025 (6M2026), Ambitious Achievement’s revenue was HK$1.33 million, compared to HK$25.13 million during the same period last year (6M2025). It recorded a segment loss of HK$11.59 million for 6M2026. The Group’s overall revenue rose from HK$33.90 million in 6M2025 to HK$47.44 million in 6M2026, mainly driven by the internet services segment, which achieved HK$46.12 million in revenue. The construction segment’s contribution declined significantly during the period.

The Group has begun resuming construction activities through another subsidiary and is rebuilding its market position with a small-scale project exceeding HK$2.00 million. Additional professional fees are anticipated in relation to the winding-up proceedings, though no material adverse impact on the Group’s financial position is expected. The Board decided not to appeal the winding-up order, citing Ambitious Achievement’s net liabilities of HK$10.40 million, the costs of restoring solvency, and the time and resources required for litigation as key considerations. The Group will continue to cooperate with the provisional liquidators and act in its capacity as a creditor to seek recovery of outstanding amounts. The overall strategy includes expanding the internet services segment while gradually restoring the construction segment’s operations. Shareholders and investors are advised to monitor further announcements.