CHINA HONGBAO (08316) has announced that the company and Mr. Cheng Jun, an executive director and a shareholder holding approximately 18.89% of the issued shares, entered into a deed of debt release on March 27, 2026. Pursuant to the deed, Mr. Cheng Jun has irrevocably and unconditionally released the company from debts totaling approximately HK$20.1 million owed to him, including the principal and any related accrued interest. The board of directors believes that signing this deed of debt release aligns with the overall interests of the company and all its shareholders and will help improve the financial position of the group.