China Hongbao Holdings Limited (8316) reported a temporary halt in the operations of its subsidiary, Ambitious Achievement New Materials Holding Limited (Ambitious Achievement), which constitutes the entire construction segment of the Group. This move follows the sudden unavailability of a key director, missing operational and accounting documents, and the associated disruption of project coordination and client communications.

According to the announcement, Ambitious Achievement had five office employees prior to this event, including the director whose absence has impeded access to core documentation. Furthermore, the company received a statutory demand of approximately HK$2.4 million relating to loans drawn down in March 2025 under a term loan and export invoice finance facility. No winding-up petition has been presented as of the announcement date, but executives note that any potential winding-up could adversely affect the Group’s construction activities.

In the financial year ended 31 March 2025 (FY2025), Ambitious Achievement represented 57.1% of the Group’s total revenue yet remained loss-making, contributing around HK$8.8 million to the Group’s overall loss. The missing documents may also complicate the upcoming interim results, though the Group is working with legal advisers, suppliers, and banks to retrieve relevant financial information. The Group intends to resume its construction operations in Hong Kong once record retrieval and enhanced internal controls are in place, including appointing personnel with relevant expertise and conducting an internal control review to address potential deficiencies.