Analysis of Market Attention on Wanjia Group's (00401.HK) Rights Issue Plan

Wanjia Group (00401.HK) is a pharmaceutical distribution enterprise in the healthcare sector of the Hong Kong market [1]. On January 2, 2026, the company became a market focus due to its announcement of a

rights issue plan, with a subscription price of HK$0.08, which is a 31.62% discount to the closing price before the announcement (December 30). The net proceeds are expected to be used for the development of pharmaceutical wholesale and distribution business, hemodialysis treatment and consulting services, as well as debt repayment and supplementary working capital [2][3].

As of the day of the event, Wanjia Group’s stock closed at HK$0.094, down 6.00% on the day [1]; the trading volume was 500,000 shares, higher than the average volume of 443,000 shares, indicating increased trading activity [1]. The company’s 52-week high is HK$0.182 and low is HK$0.044 [1].

Regarding market sentiment, the significant discount on the subscription price has caused divergences: some investors are worried about short-term selling pressure due to equity dilution; others are optimistic about the growth potential of the healthcare industry and believe the rights issue will provide financial support for the company’s business expansion [0].

1. Significant Impact of Rights Issue Plan
   : The 31.62% significant discount and the 1-for-1 ratio may lead to significant equity dilution for existing shareholders. If the company’s future performance fails to meet expectations, the dilution effect will amplify investment risks.
2. Expansion Demand Amid Losses
   : The company’s current earnings per share are -HK$0.02, and it is still conducting a large-scale rights issue while in a loss-making state, indicating the urgency for business expansion and reflecting the pressure of capital demand [1].
3. Industry Opportunities and Competition Coexist
   : The healthcare industry still has growth potential in China, especially in niche areas such as hemodialysis, but the industry is highly competitive, and the company’s business expansion faces uncertainties [0].

• The healthcare industry, especially the hemodialysis service sector, has growth potential. The rights issue provides financial support for the company’s business expansion. If the funds are used effectively, there may be long-term development potential [0].

• Profit Risk
  : The company is currently in a loss-making state, and its future profit prospects are uncertain [1].
• Equity Dilution
  : The 1-for-1 rights issue ratio will lead to equity dilution for existing shareholders. If the company’s performance fails to meet expectations, the dilution effect will amplify investment risks [0].
• Competitive Pressure
  : The pharmaceutical distribution and hemodialysis service industries in China are highly competitive, and the company’s business expansion faces challenges [0].
• Feasibility of Rights Issue
  : The successful completion of the rights issue depends on the subscription willingness of existing shareholders, and there is a risk of insufficient fund raising [0].

• Wanjia Group (00401.HK) announced a 1-for-1 rights issue plan with a subscription price of HK$0.08, a 31.62% discount to the pre-announcement price, and the proceeds will be used for business expansion and debt repayment.
• As of January 2, 2026, the company’s stock price fell by 6% to HK$0.094, with trading volume higher than the average level, indicating increased market attention.
• There are divergences in the market regarding the rights issue plan. Attention should be paid to risks such as the company’s losses and equity dilution, while also noting the potential growth opportunities in the healthcare industry.