Golden Throat Privatization Failed Stock Price Plunged 40% The single hidden danger of the product has not been eliminated

Financial Associated Press (Shanghai, editor Zhou Xinyang) -- After hours on November 30, 06896.HK announced that its privatization plan had failed. Gold Throat's share price fell as much as 40% at the opening of the market on Wednesday (December 1) and then narrowed slightly, quoting HK$1.63 at press time, down HK$0.94 or 36.58%.

The company announced that its privatization proposal was not approved by the court meeting and the general meeting of shareholders, that the plan would not be implemented and has lapsed, that the offer period had ended, and that the company's shares would remain listed. The announcement states that, under the rules, the offeror may not announce another offer of shares for a period of 12 months from the date of the announcement, unless agreed by the executing officer.

Previously, on October 29, Golden Throat announced that it planned to privatize Golden Throat by way of an agreement arrangement, cancel the shares at HK$2.80 per share of the planned shares, and revoke the listing status of Golden Throat.

In fact, after the company first revealed its intention to privatize in early August, the company's stock price has jumped up, and by November 25, its share price reached a maximum of HK$2.74, which is quite close to the privatization offer price. But after the privatization plan failed, its stock price naturally came from where it went, falling back to the volatility range it had before August.

Previously, the company did not clearly state its reasons for privatization, but the loss of a single product, the ceiling of sales growth, and the inability of Golden Throat to tell a new story in the secondary market caused the stock price to continue to fall, which may have given it the idea of delisting.

Over-reliance on old items

According to the data, Golden Throat was originally the second candy factory in Liuzhou City, Guangxi, and in 1994, it raised 7.8 million yuan to establish Guangxi Golden Throat Pharmaceutical Factory. In 2003, Ronaldo, who came with Real Madrid, had just finished playing a game in China, and received an invitation from Jiang Peizhen, chairman of Golden Throat, to shoot an "advertisement" film, in which Ronaldo wore a jersey printed with "Golden Throat Throat Piece", making Golden Throat a household name.

In July 2015, Golden Throat was listed on the Hong Kong Stock Exchange and reached an all-time high of HK$7.93 in July 2016. But then the development of the golden voice explained what is called the peak of listing. According to the 2015 annual report of Golden Throat, its main product, Golden Throat Throat Tablets, reached the peak of sales, with annual sales of 129 million boxes. But in the following years, it showed a downward trend, with only 0.9 billion boxes in 2020, down 19.4% from the previous year.

The Golden Throat Throat Tablet, accounting for 89.9% of the total sales revenue of Golden Throat in 2020, is also the absolute main force of the annual Golden Throat revenue.

As for the new products expected by the market, although in the annual report, the company said that it has developed 31 new products since 1994, including 8 drugs, 21 foods, 1 health food, and 1 medical device product. But in fact, the annual report shows that Golden Throat invests no more than 3 million yuan in research and development every year after listing, while the annual marketing expenses are about 300 million yuan, and the company's revenue still relies on the single product of Golden Throat Throat Tablets.

On the one hand, there are no new products within the company, excessive dependence on a single explosive product, and the inability to tell a new story, resulting in insufficient development potential of the company. On the other hand, competition in the external market is intensifying. According to the data of the Chinese urban retail pharmacy Chinese patent medicine throat drug market data of Minnei Network, in 2020, Lan cen oral liquid dominated with sales of 1.011 billion yuan, and golden throat tablets ranked second.