Winshine Science Moves to Ease Going Concern Pressure with Rights Issue and Cost Cuts

Winshine Science Co., Ltd. ( (HK:0209) ) has shared an announcement.

Winshine Science Company Limited has outlined further measures to address a going concern disclaimer raised in its latest annual report, focusing on improving liquidity and strengthening its financial position. The company has launched a substantial rights issue on the basis of seven rights shares for every existing share at HK$0.14 per share, aiming to raise net proceeds of about HK$176.5 million, primarily to repay borrowings and bolster general working capital, with a portion earmarked specifically to settle a HK$45 million corporate bond that matured on 30 September 2025, for which the bondholder has agreed to defer repayment until one month after completion of the capital raising. In parallel, Winshine is pursuing ongoing cost-control measures in its toys business, including production team streamlining, relocating some manufacturing to lower-cost sites and freezing salaries, underscoring a broader effort to stabilise operations and support its ability to continue as a going concern, with the company committing to further updates as required under Hong Kong listing rules.

The most recent analyst rating on (HK:0209) stock is a Hold with a HK$0.22 price target. To see the full list of analyst forecasts on Winshine Science Co., Ltd. stock, see the HK:0209 Stock Forecast page.

More about Winshine Science Co., Ltd.

Winshine Science Company Limited is a Bermuda-incorporated company listed in Hong Kong, operating a toys segment in which it is currently implementing cost-control initiatives such as streamlining its production team, shifting some production to lower-cost factory locations, and freezing staff salaries to manage its operating expenses and improve financial resilience.

Average Trading Volume: 8,444,491

Technical Sentiment Signal: Sell

Current Market Cap: HK$252.6M

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