(1) VOTE AGAINST THE RESOLUTIONS;
(2) FORM A SHAREHOLDER COMMITTEE.
HONG KONG, Jan. 05, 2026 — Ace Capital Management Ltd, on behalf of a group of shareholders that collectively hold approximately 33.5 million shares of Hang Yick Holdings Company Limited (HKEX: 1894), issued an open letter to fellow shareholders today, urging them to vote AGAINST the proposed 4-for-1 rights issue at the Extraordinary General Meeting on February 2, 2026, and to form a shareholder committee.
The full text of the letter is as follows:
Dear Fellow Shareholders,
We are writing on behalf of Ace Capital Management Ltd, representing a group of concerned shareholders who together hold 33.5 million shares of Hang Yick Holdings Company Limited (HKEX:1894) and are greatly troubled by the proposed rights issue and its impact on our interests. The Board has put forward a 4-for-1 rights issue at HK$0.46 per rights share, which will be voted on at the Extraordinary General Meeting (EGM) on February 2, 2026. We urge you to take an active part.
The company claims this is necessary to fund projects, pay off debts, and support working capital, aiming to raise up to HK$84.7 million in gross. However, it presents substantial risks to existing shareholders. The rights issue is non-underwritten, with no assurance of full subscription. Unsubscribed shares may be sold to independent third parties, possibly causing further dilution. Non-participating shareholders could face a reduction of up to 80% in their proportional ownership, diminishing our influence and value. Most importantly, the HK$0.46 subscription price is approximately 84.67% below the consolidated NAV per share of HK$3.00 (as of September 30, 2025). This large discount destroys shareholder value by transferring wealth from existing shareholders to new investors who buy shares at a price far below their actual worth. Any dilution should never happen at a price lower than NAV.
This is about safeguarding our rights as shareholders. By voting against the resolutions, we can demand better alternatives, like non-dilutive financing or dilution only at a price equal to or higher than NAV.
We invite you to join us in forming a shareholder committee to work together with management to restore and increase share value through stronger governance and value-creating initiatives.
We strongly advise you to:
- Thoroughly review the upcoming circular (expected by January 13, 2026) and prospectus (February 16, 2026).
- Attend the EGM in person or appoint a proxy.
- Vote “NO” on all resolutions concerning the rights issue and placing agreement.
If you share these concerns, please consider giving us your proxy to strengthen our voice. With enough opposition, we can block this proposal and strive for better results. To discuss or join the committee, contact us via the website contact form: ace-vpc.com, email: , or phone/WhatsApp: +852 6524 5637.
Let’s stand together to protect our investments. Your vote is vital.
Sincerely,
Ace Capital Management Ltd
Acting on Behalf of a Group of Shareholders
