Analysis of Lijun International (01355.HK): Placement Financing and Business Transformation Drive Market Attention and Stock Price Volatility

Lijun International (01355.HK) is a Hong Kong-listed accommodation operation enterprise. In 2025, it became a market hot spot due to its placement financing and business transformation plan [1]. On September 8, 2025, the company announced a placement of up to 198.8 million shares at a 11.27% discount, netting approximately HK$12.37 million, with the funds earmarked for the development of healthcare and beauty businesses [2][5]. Financially, its 2025 interim results turned from profit to loss, with a loss of HK$13.484 million, while revenue increased by 33.2% year-on-year to HK$25.445 million [6]. In terms of stock price performance, the stock showed high volatility in 2025, with a 52-week price range of HK$0.064-HK$0.250, a fluctuation range of over 270% [4]. The current stock price is in the range of HK$0.125-HK$0.142, with a total market capitalization of approximately HK$160 million [3]. In terms of industry background, the hotel accommodation sector was still in a recovery period in 2025, facing challenges of declining rents and reduced fair value; peers such as Far East Hotel Enterprises (00037.HK) also faced pressure from losses [7].

1. Transformation Drives Market Sentiment
   : The strategic adjustment to transform into the medical beauty track is the core catalyst; the small market cap (approximately HK$160 million) characteristic amplifies the stock price’s response to news [1][4];
2. Institutional Attention Rises
   : Holdings by funds such as E Fund Asia Select and Fullgoal Minyu Jinqu Shanghai-Hong Kong-Shenzhen Growth Select reflect institutional attention to its transformation potential [1];
3. Industry Comparison Highlights Necessity of Transformation
   : Against the backdrop of the overall weakness in the hotel sector, transformation may be a key measure for the company to break through operational difficulties [7].

• Risks
  : Intense competition in the medical beauty sector brings transformation execution risks; inherent high volatility risks of small-cap stocks; traditional accommodation business still faces pressure from the industry recovery period [1][4];
• Opportunities
  : Growth potential of the medical beauty track; placement funds provide financial support for transformation; institutional holdings boost market confidence [2][5].

Lijun International (01355.HK) advances its business transformation through placement financing, which is the core driving factor for its stock price volatility in 2025. The interim loss reflects challenges in traditional businesses, while the transformation plan brings uncertainty and growth potential. Investors need to continuously monitor the progress of transformation, capital utilization efficiency, and changes in the industry environment.