HK Stock Market Move | YEAHKA (09923) fell more than 7% in the afternoon, after rebounding over 16% yesterday. Previously, the company raised 1.89 billion Hong Kong dollars through a discounted rights issue.

YEAHKA (09923) fell more than 7% in the afternoon, after a sharp rebound of over 16% yesterday. The stock price has still dropped by nearly 40% this month. As of the time of writing, it fell by 7.16%, to 7.65 Hong Kong dollars, with a turnover of 80.9481 million Hong Kong dollars. In terms of news, YEAHKA announced earlier this month a rights issue of 19.15 million shares at a price of 10.1 Hong Kong dollars per share, equivalent to approximately 4.14% of the enlarged share capital. The group expects to raise approximately 189 million Hong Kong dollars from the rights issue, with around 40% to be used for expanding the group's overseas presence in various business segments in Asia; around 40% for investment in research and development, including the use of artificial intelligence in proprietary software to enhance the competitiveness of the group's business digital ecosystem; and around 20% for working capital and general corporate purposes. In the first half of 2024, YEAHKA achieved revenue of 1.578 billion RMB, a year-on-year decrease of 23.5%; a profit of 32.58 million RMB, a year-on-year increase of 7.3%; and a net profit attributable to equity holders of the company of 31.628 million RMB, a year-on-year decrease of 4.63%. Sinolink previously pointed out that the pressure in the first half of 2024 was mainly due to the impact of macroeconomic factors and non-recurring income. However, the increase in the proportion of high-gross-margin non-payment business income has pushed up the net profit margin. Looking ahead, the impact of non-recurring income in the second half of the year is expected to diminish, overseas business is expected to contribute more incremental growth, and merchant solution is expected to grow steadily, with the possibility of turning around the offline e-commerce business.