HK Stock Market Move | GUAN CHAO HLDGS(01872) fell more than 50% at one point during trading, issuing 4.32 billion shares for rights issue at a ratio of 1 for 4.

GUAN CHAO HLDGS (01872) fell more than 50% at one point in intraday trading, and as of the time of writing, it had fallen by 39.82% to 0.68 Hong Kong dollars, with a trading volume of 2.8783 million Hong Kong dollars. In terms of news, GUAN CHAO HLDGS announced that for every 1 share held, shareholders will be entitled to 4 rights shares at a subscription price of 0.40 Hong Kong dollars per rights share, resulting in the issuance of 4.32 billion rights shares. Previously, GUAN CHAO HLDGS announced that the company is expected to have a profit attributable to equity holders of approximately 0.9 million Singapore dollars for the six months ending on June 30, 2024, compared to 6.4 million Singapore dollars in the same period in 2023. Based on the financial data mentioned above, the decrease in profit is mainly attributed to a decrease in revenue due to reduced customer demand. The decrease in revenue in 2024 is also due to the fact that the price of vehicle certificates remains at a high level, leading to a decrease in market demand.