"Protect your throat, please use the Golden Throat Throat Treasure!"
Simple and easy to remember advertising words, the "brainwashing" type of communication played in turn, so that the "golden voice" once swept the north and south of the river. On 15 July 2015, Golden Throat landed on the Hong Kong Stock Exchange, peaking at HK$6.3 billion in market capitalization.
On 29 October, Golden Voice issued an announcement that the Offeror and the Company had privatized the Company by way of an agreement arrangement and were expected to revoke their listing status on the Stock Exchange at 9:00 a.m. on 15 December.
Screenshot from company announcement
From "on the verge of closure" to "household name"
According to public information, Guangxi Golden Throat Group was originally Liuzhou City Candy No. 2 Factory, founded on March 6, 1956, in 1994 self-raised 7.8 million yuan to establish Guangxi Golden Throat Pharmaceutical Factory, in 1998 by the Liuzhou Municipal People's Government approval, guangxi Golden Throat Pharmaceutical Factory and Liuzhou City Candy Second Factory restructured to establish Guangxi Golden Throat Group.
Founder Jiang Peizhen's entrepreneurial career is also quite legendary. Born in 1946 to a poor family in Pingnan, Guangxi, Jiang Peizhen dropped out of school as an apprentice at the Liuzhou Candy Factory no. 2 at the age of 13 and began her career as a sugar packer. Due to her high technical level, she rose from the head of the production team to the director of the workshop step by step, serving as the deputy director at the age of 18 and the director of the factory at the age of 33.
Due to the rising prices of raw materials and the impact of counterfeit products, the sales of Liuzhou Candy No. 2 Factory plummeted and were on the verge of bankruptcy. Jiang Peizhen decided to transform technology, took the only 70,000 yuan in the factory, went to East China Normal University in Shanghai to buy scientific research patents, and met Professor Wang Yaofa, the inventor of Golden Voice. Wang Yaofa donated the formula he was developing to treat chronic laryngitis free of charge to the candy factory.
Since then, the Golden Throat Treasure has been introduced. In order to commemorate the "nobleman", when the golden voice was first unveiled, it used the head of Wang Yaofa.
On 15 July 2015, Golden Throat was listed on the Hong Kong Stock Exchange at an issue price of HK$4.6 per share. Since then, the share price has risen as high as HK$8.53 per share in July 2016 (later reinstated), bringing the highest market capitalisation to HK$6.3 billion based on a total share capital of HK$739 million.
"Low price" signed Ronaldo
The first well-known spokesperson for Golden Throat was international football superstar Ronaldo. At that time, Ronaldo had just won the 2002 World Cup, the Golden Boot and the title of World Footballer of the Year for the third time, starting with an eight-figure endorsement fee (US dollar). And Jiang Peizhen only spent 300,000 US dollars to "eat a meal" with Ronaldo, and completed a production of "simple" advertising, which was broadcast for several years, successfully opened the market, and the sales of golden throats went all the way up.
Screenshot from the web
According to reports, Ronaldo was once ready to sue Golden Throat for 10 million euros, because the Ronaldo endorsement advertisement published by Golden Voice did not sign an endorsement contract, or even obtain his consent.
In this regard, golden throat group responded in its official website that since 2003, golden voice has signed a number of agreements with Ronaldo, stipulating that Ronaldo will serve as the spokesperson for golden throat products in China, and agree to use its portrait for television advertising. Jin Zizi and Jiang Peizhen do not have the situation of "fooling Ronaldo" and "using the materials on the dinner table to make an advertisement for 'Ronaldo endorsing the golden throat throat piece'" contained in the Internet rumors.
After that, Golden Throat found a new spokesperson, Kaka. According to its prospectus data, from 2012 to 2014, Golden Throat paid a total of about 14.3 million yuan in endorsement fees to Kaka.
In 2019, a consumption restriction order issued by China's Enforcement Information Disclosure Network showed that the "golden throat" owed more than 50 million yuan in advertising fees, making Jiang Peizhen, who was 73 years old at the time, once become a "lao lai". CSI Jun's inquiry found that Jiang Peizhen's height limit order has now been revoked.
In response, the company said that the two parties had already reached a settlement regarding the dispute over the advertising contract between a media company and Golden Throat, and the company had fulfilled all payment obligations. The Shanghai No. 1 Intermediate People's Court has also issued a judicial document clarifying the conclusion of the case.
At one point, the stock price shrank by nearly 90%.
According to the semi-annual report of 2021, the company achieved revenue of 370 million yuan in the first half of this year, an increase of 83.6% year-on-year; net profit of 81.5 million yuan, an increase of 414.65% year-on-year. From 2018 to 2020, the company achieved revenue of 695 million yuan, 797 million yuan and 648 million yuan, and achieved net profit of 102 million yuan, 168 million yuan and 154 million yuan, respectively.
The company said it is currently in good business condition. Among them, the operating income of the listed entities of Golden Throat in the first half of 2021 increased by 83.1% year-on-year. The privatization plan of the listed entity of Golden Throat is an independent business decision of the privatization sponsor and belongs to normal market behavior.
In the six years since its listing, Golden Throat's share price has fallen from a maximum of HK$8.53 per share in July 2016 (after reinstatement) to HK$1.22 per share in October 2018, a maximum reduction of nearly 90%.
Source: Flush
The company's latest share price is HK$2.69, and its market value is less than HK$2 billion.
Editor: Xu Xiaohong