Hang Yick Holdings Shareholders Against Proposed Share Dilution

(1) VOTE AGAINST THE RESOLUTIONS;

(2) FORM A SHAREHOLDER COMMITTEE.

HONG KONG, Jan. 05, 2026 (GLOBE NEWSWIRE) -- Ace Capital Management Ltd, acting on behalf of a group of shareholders who collectively own approximately 33.5 million shares of Hang Yick Holdings Company Limited (HKEX: 1894), today issued an open letter to fellow shareholders urging them to vote AGAINST the proposed 4-for-1 rights issue at the February 2, 2026 Extraordinary General Meeting and form a shareholder committee.

The full text of the letter follows:

Dear Fellow Shareholders,

We are writing to you as Ace Capital Management Ltd, acting on behalf of a group of concerned shareholders who collectively own 33.5MM shares of Hang Yick Holdings Company Limited (HKEX:1894) and are deeply troubled by the proposed rights issue and its impact on our interests. The Board has proposed a 4-for-1 rights issue at HK$0.46 per rights share, to be voted on at the Extraordinary General Meeting (EGM) on February 2, 2026. We urge you to participate actively.

The Company states this is needed to fund projects, settle debts, and support working capital, aiming to raise up to HK$84.7 million gross. However, it poses significant risks to existing shareholders. The rights issue is non-underwritten, with no guarantee of full subscription. Unsubscribed shares may be placed with independent third parties, potentially causing further dilution. Non-participating shareholders could face up to an 80% reduction in proportional ownership, eroding our influence and value. Most critically, the HK$0.46 subscription price represents an approximately 84.67% discount to the consolidated NAV per share of HK$3.00 (as at 30 September 2025). This massive discount destroys shareholder value by transferring wealth from existing shareholders to new investors who acquire shares far below true worth. Any dilution must never occur at a price below NAV.

This is about protecting our rights as shareholders. By voting against the resolutions, we can demand better alternatives, such as non-dilutive financing or dilution only at a price equal to or above NAV.

We invite you to join us in forming a shareholder committee to work collaboratively with management to restore and enhance share value through stronger governance and value-accretive initiatives.

We strongly encourage you to:

Review the forthcoming circular (expected by January 13, 2026) and prospectus (February 16, 2026) carefully.
Attend the EGM in person or appoint a proxy.
Vote "NO" on all resolutions related to the rights issue and placing agreement.

If you share these concerns, please consider granting us your proxy to amplify our voice. With sufficient opposition, we can block this proposal and push for better outcomes. To discuss or join the committee, contact us via website contact form: ace-vpc.com, email: vmak@ace-vpc.com, or phone/WhatsApp: +852 6524 5637.

Let us stand united to safeguard our investments. Your vote is crucial.

Sincerely,

Ace Capital Management Ltd
Acting on Behalf of a Group of Shareholders

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