Dayang Group (1991.HK) rights issue "kills two birds with one stone," resolving short-term concerns and supporting long-term development.
Recently, Hong Kong Stock Exchange-listed Dayang Group Holdings Limited (1991.HK, hereinafter referred to as "Dayang Group") announced a rights issue plan, aiming to raise net proceeds of approximately HK$274.5 million or about HK$299 million. The funds are intended for investment in computer infrastructure for AI digital human technology development, data training for AI digital human technology development, employee investment for AI digital human technology development, as well as for the Group's general working capital and repayment of the Group's debts.
$TA YANG GROUP(01991.HK) The rights issue plan indicates that the raised funds are primarily intended to support the development of strategic emerging businesses. According to the company's development trends, it has gradually increased strategic investments in emerging business areas in recent years. For example, in February 2026, Dayang Group signed a strategic cooperation agreement with CONSCIOUSNESS FOUNDATION LTD. to deepen collaboration on the "Silicon Buddy" AI smart hardware project, focusing on the R&D, production, global sales, and continuous iterative upgrades of the X-Mart brand AI trendy companion robot; in 2025, Dayang Group formally signed a comprehensive strategic cooperation agreement with the Asia Digital Development Research Institute and China Great Wall Computer International Co., Ltd. to jointly promote the Web 4.0 strategic transformation, injecting new momentum into the digital transformation of the real economy, and so on. Looking ahead, if the rights issue plan is successfully implemented, it will be conducive to accelerating Dayang Group's transformation path.
However, Dayang Group's rights issue plan has been subject to "noise" interference. Recently, Beijing Rixin Jiarui Investment Management Co., Ltd., as a creditor, submitted a winding-up petition to the Hong Kong High Court through a law firm on March 19, involving an unpaid amount of nearly HK$50.38 million. In response, Dayang Group immediately activated its emergency response mechanism, adhering to the principles of candor and transparency, and provided a comprehensive explanation of the incident's course, potential risks, and response path to stakeholders.
It is reported that Dayang Group has initiated comprehensive countermeasures, forming a multi-layered safeguard system. On the legal front, the company is working with legal advisors to review the petition's legality, actively preparing its defense, and striving to have the petition dismissed or the proceedings suspended; it is also actively communicating with the creditor to create conditions for resolving the matter. Meanwhile, Dayang Group is simultaneously advancing the activation of realizable assets, stabilizing core operations and the team, making every effort to ensure business continuity, and maximizing the protection of the legitimate rights and interests of shareholders, creditors, and partners.
Industry insiders analyze that the aforementioned creditor's winding-up petition is debatable. On one hand, this winding-up petition is not due to a deterioration in the company's fundamental business operations. Dayang Group's 2025 interim report shows that the company's profitability significantly improved in the first half of 2025, with not only a substantial increase in gross profit margin but also a successful turnaround from loss to profit. On the other hand, for the vast majority of Dayang Group's shareholders, winding up does not align with the principle of maximizing interests, especially since the amount involved in the petition (HK$50.38 million) is far lower than the scale of funds intended to be raised through the rights issue plan.
For Dayang Group, the rights issue plan, while resolving short-term troubles, is also beneficial for supporting long-term business development. Currently, Dayang Group has strictly followed the Hong Kong Stock Exchange's listing rules to initiate related work such as rights issue framework design, valuation, prospectus preparation, and scheduling, ensuring the process is compliant and efficiently implemented.
If the rights issue plan is successfully implemented, Dayang Group can achieve the goal of "killing two birds with one stone." In the short term, the implementation of the rights issue is conducive to the company repaying debts and interest, bank financing loans, some finance lease loans, mortgage property loans, etc. In the long term, while resolving short-term debt and loan issues, the rights issue is more conducive to supporting the company's long-term business development, especially helping to improve asset quality, focus on core strategic businesses, and strengthen market competitiveness.
In summary, Dayang Group's rights issue plan is a pragmatic move to resolve short-term troubles and support long-term development, and it is also a wise move to maximize the interests of shareholders, creditors, and all sectors of society.
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