On December 1, Golden Throat (06896. HK) shares opened sharply, falling more than 40% in 5 minutes, and as of the close of the Hong Kong Stock Exchange on December 1, the share price has fallen to HK$1.60 per share, a decline of 37.74%.
Just the night before, Golden Voice announced on the Hong Kong Stock Exchange that since the privatization plan had not been approved by at least 75% of the votes attached to the shares of the plan held by the non-interested shareholders who voted at the court meeting, and the number of votes voted against the resolution at the court meeting to approve the plan exceeded 10% of the votes attached to all the plan shares held by the uninterested shareholders, the privatization plan would not be implemented and had lapsed, the offer period had ended, and the shares would remain listed on the stock exchange.
In addition, pursuant to the Takeovers Code, the Offeror and the Offeror acting in concert shall not announce another Offer for Shares for a period of 12 months from the date of this announcement, except with the consent of the Executor.
Previously, on October 29, Golden Throat announced that it planned to privatize the company by way of an agreement arrangement, and would cancel the shares at HK$2.80 per share of the planned shares (a premium of 3.7% over the closing price on the 28th), and was expected to withdraw its listing status on the Stock Exchange on December 15. Today, it appears that the plan has failed.
In this regard, some market analysts said that after the listing of golden throat has been facing the dilemma of a single product, the two products of golden throat throat treasure and golden throat throat tablets account for 90% of the revenue, and the revenue performance is basically in place. The failure of this privatization means that the expectations of controlling shareholders to buy back shares from small shareholders in cash and other ways have failed, the market reaction is fierce, and the early ambush funds have fled.
According to public information, Golden Throat Holding Group Co., Ltd. was originally Liuzhou City Candy No. 2 Factory, which was founded on March 6, 1956, and in 1994, the company self-raised 7.8 million yuan to establish Guangxi Golden Throat Pharmaceutical Factory. In 1998, with the approval of Liuzhou Municipal People's Government, it was restructured by Guangxi Golden Throat Pharmaceutical Factory and Liuzhou Candy No. 2 Factory, and was listed on the Hong Kong Stock Exchange on July 15, 2015.
After the listing, Golden Throat reached an all-time high of HK$8.47 in July 2016, with a peak market capitalization of more than HK$7 billion, and since then the stock price has gone downhill, and now the market value is only HK$1.183 billion, down more than 80% from the peak period.
The reporter reviewed the 2020 annual report of Golden Throat and found that the sales of its core products, Golden Throat Throat Tablets and Throat Treasure Series products, accounted for 89.9% of the total revenue, while the annual sales of Golden Throat Throat Tablets and Throat Treasure Series in 2020 were only 0.9 billion boxes, down 19.4% from the previous year.
In terms of new products, according to the annual report of Golden Throat, the company has developed 31 new products since 1994 and has obtained production licenses for such products, including 8 drugs, 21 foods, 1 health food and 1 medical device product. It is noteworthy that this phrase has appeared in six annual reports issued by Golden Voice in six consecutive years.
Image source: Golden Throat 2015 Annual Report
Image source: Golden Throat 2020 Annual Report