Manjia Group (00401.HK) "1-for-1" Rights Issue Plan Draws Market Attention

Manjia Group (00401.HK) is a Hong Kong-listed healthcare company mainly engaged in pharmaceutical wholesale and distribution, as well as hemodialysis treatment and consulting services [1][2]. The company’s current share price is HK$0.099, with a market capitalization of approximately HK$55.46 million, making it a typical small-cap stock. On December 31, 2025, the company announced a major rights issue plan, which is the core catalyst driving the stock to receive high market attention [3][4][5].

This “1-for-1” rights issue is one of the most important capital operations of the company in recent years. According to the announcement, the company intends to issue new shares on the basis of 1 rights share for every 1 existing share held, with the offer price set at HK$0.08 per share, representing a discount of approximately 19% to the current price [3][4]. The scale of the rights issue is not less than 560 million shares and not more than 641 million shares, and the total fundraising amount (before deducting expenses) is expected to be approximately HK$44.82 million to HK$51.28 million. Notably, the company also proposes to increase its authorized share capital from HK$50 million to HK$100 million (from 1 billion shares to 2 billion shares), which is subject to approval at an extraordinary general meeting of shareholders to take effect [3][4][5].

The proceeds from the rights issue will be used for multiple purposes: the company plans to use the funds to develop its existing pharmaceutical wholesale and distribution business as well as hemodialysis treatment and consulting services, to explore potential investment opportunities in the medical and healthcare sector, while approximately HK$5 million will be used to partially settle the group’s trade and other payables, and to repay approximately HK$8.5 million owed to a director together with accrued interest. The remaining funds will be used as general working capital for the group, including payment of salaries, rent and professional fees [3][4]. Judging from the capital allocation, the company is facing certain capital turnover pressure, and the need to raise funds to repay the director’s amount is particularly worthy of attention.

From the secondary market performance, Manjia Group has shown a strong upward trend over the past year, with an annual return of 102.04%, significantly outperforming the Hang Seng Index’s 35.74% increase over the same period [0]. However, the share price performance has been relatively flat since 2026, with a year-to-date return of only 1.00%, lagging behind the Hang Seng Index’s 2.99% [0]. This phenomenon may reflect the market’s reserved attitude towards the rights issue plan, or indicate that the previous rally has fully priced in positive expectations.

Today’s market data shows that the trading volume of this stock reached 663,840 shares, which is approximately 46% higher than the average volume of 453,658 shares [0][6], indicating that market attention has increased significantly after the announcement of the rights issue. An increase in trading volume usually means higher activity among market participants. For such small-cap stocks, changes in trading volume often precede price movements, which deserves close tracking by investors.

From a fundamental perspective, Manjia Group is currently facing certain financial challenges. The company’s earnings per share (EPS) over the latest 12 months is -HK$0.020, indicating that it is still in a loss-making state [1]. This loss-making status, combined with the company’s need to raise funds through the rights issue to repay the director’s amount (approximately HK$8.5 million), suggests that the company may be under capital turnover pressure [3][4].

The company’s beta is 1.33 (based on 5-year monthly data), meaning its share price volatility is higher than the market average [0]. Considering the company’s market capitalization is only approximately HK$55 million, liquidity is relatively low, and the share price may experience large fluctuations during periods of low trading volume. The 52-week price range is HK$0.048 to HK$0.182, and the current price of HK$0.099 is in the lower-middle part of this range [0].

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This rights issue plan reveals several cross-dimensional correlations worthy of in-depth analysis. First, a comparison of the rights issue price with the historical high shows that the rights issue price of HK$0.08 is not only lower than the current price but also significantly lower than the 52-week high of HK$0.182, which may trigger market concerns about the company’s future development prospects [0]. Second, the inclusion of repaying the director’s amount in the fundraising purpose reflects that there may be a certain degree of connected transactions in the company’s governance structure, which requires investors to consider carefully when making decisions.

From the industry perspective, China’s pharmaceutical distribution industry continues to benefit from medical reform and aging population trends [3]. As an industry participant, Manjia Group should theoretically benefit from industry growth. However, the company’s current loss-making status indicates that it may face certain difficulties in industry competition. Whether the funds raised from the rights issue can be effectively converted into business growth is a key factor determining the company’s long-term value.

The “1-for-1” rights issue plan will have a significant impact on the company’s share structure. After the completion of the rights issue, the company’s share capital will double immediately. Although the shareholding ratio of existing shareholders will theoretically remain unchanged, earnings per share and net asset value per share will be diluted by approximately 50% [3]. This significant dilution effect is a core factor that investors must weigh when deciding whether to participate in the rights issue. For shareholders who choose not to participate, their shareholding ratio will be compulsorily diluted, which is a typical feature of the rights issue mechanism in Hong Kong stocks.

The proposal to increase authorized share capital from HK$50 million to HK$100 million (from 1 billion shares to 2 billion shares) [3][4][5] provides greater space for further fundraising in the future. Although this arrangement will not take effect immediately in this rights issue, it may indicate that the company’s management is open to future capital operations, and existing shareholders need to continue to pay attention to possible subsequent share structure changes.

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: This rights issue is on a “1-for-1” basis, meaning that shareholders holding 1 share need to subscribe for an additional 1 share to maintain their original shareholding ratio; otherwise, they will face passive dilution of their equity. For shareholders who choose not to participate in the rights issue, their shareholding ratio will be directly halved, which is a mandatory result under the rights issue mechanism [3].

: The company is currently in a loss-making state (EPS -HK$0.020) and needs to raise funds through the public market to repay the director’s amount [1][3]. This phenomenon indicates that the company’s internal cash flow may be tight, and it relies on external financing to maintain operations. Investors should carefully assess the sustainability of the company’s business model.

: As a small-cap stock with a market capitalization of only approximately HK$55 million, Manjia Group has limited daily trading volume. Volume data shows an average daily trading volume of approximately 450,000 shares [0]. For investors looking to buy or sell large amounts, insufficient liquidity may lead to unfavorable execution prices. In addition, the share price of low-liquidity stocks is more prone to sharp fluctuations due to single large transactions.

: The rights issue plan still needs to be approved at the upcoming extraordinary general meeting of shareholders before it can be implemented [3][4]. If the plan is not approved by shareholders, the entire arrangement will not proceed, which will directly affect the company’s fundraising plan.

: Although the share price has performed strongly over the past year, its flat performance since the beginning of the year (+1.00% lagging behind the Hang Seng Index’s +2.99) suggests that the market may be taking a wait-and-see attitude towards the rights issue news [0]. The share price may experience significant fluctuations around the ex-rights date (February 12, 2026).

: The rights issue price of HK$0.08 represents a discount of approximately 19% to the current price of HK$0.099, providing existing shareholders with an opportunity to increase their holdings at a discounted price [3][4]. For investors who are optimistic about the company’s long-term development, participating in the rights issue can maintain their shareholding ratio while reducing the average cost of their holdings.

: China’s healthcare industry continues to benefit from population aging and medical reform policies, and the pharmaceutical distribution industry is expected to maintain steady growth [3]. If the company can effectively use the funds raised from the rights issue to develop its business, it may share the industry growth dividend in the future.

: The current share price of HK$0.099 is in the lower-middle part of the 52-week range. If the company’s business develops smoothly or market sentiment improves, the share price may rebound towards the middle or even the high point of the range.

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Manjia Group (00401.HK), a small-cap healthcare stock, has become a market focus following the announcement of its “1-for-1” rights issue plan on December 31, 2025. The company intends to issue new shares at HK$0.08 each to raise approximately HK$45-51 million, which will be used for business development, debt repayment and general working capital [3][4]. The share price has risen by 102% over the past year, significantly outperforming the broader market, but its performance has been flat since the beginning of the year, and the company is currently in a loss-making state.

The ex-rights date is set for February 12, 2026, and the dispatch date is April 1, 2026 [3][4][7]. Investors need to decide whether to participate in the rights issue before the extraordinary general meeting of shareholders, and fully understand the equity dilution effect under the “1-for-1” rights issue mechanism. The current trading volume is approximately 46% higher than the average level, indicating that market attention is increasing [6].

The information presented in this report is intended to provide objective background and an analytical framework to support the information collection phase of the investment decision-making process. All data and analysis are based on public information and internal analytical tools [0], and do not constitute any form of investment advice or trading recommendation. Investors should conduct independent research, assess their personal risk tolerance, and consider consulting a professional financial advisor before making investment decisions.

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Date	Event
January 2026	Extraordinary General Meeting (to approve the rights issue plan)
February 12, 2026	Ex-Rights Date (deadline for rights issue registration)
February 16, 2026	Book Closure Date
April 1, 2026	Dispatch Date / New Shares Officially Listed

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Price Type	Price Level	Description
Current Price	HK$0.099	Current price level
Rights Issue Price	HK$0.080	Reference price for rights issue subscription
52-Week Low	HK$0.048	Extreme downside risk level
52-Week High	HK$0.182	Upper resistance level