China Hongbao (08316) completed the issuance of 45.31 million subscribed shares for capitalization through loans.

CHINA HONGBAO(08316) announced that all the pre-conditions specified in the subscription agreement have been met, and the subscription was completed on March 4, 2025. In accordance with the terms and conditions of the subscription agreement, the company has issued and distributed a total of 45.31 million subscription shares to the subscriber at a subscription price of HK$0.203 per share. The subscription involves capitalizing part of the debt into subscription shares, and the company will settle the related expenses using internal resources. Since all proceeds generated from the subscription will be used to offset the debt on an equal basis, no proceeds will be generated from the subscription. According to the terms and conditions of the subscription agreement, the company is required to settle the outstanding balance of the debt that remains after completion in cash within 3 months.