The market value evaporated by 90%, and Golden Throat announced its delisting

Text/Forbes China

Image source: Visual China

Once a household name, Golden Voice (06896. HK) is about to be delisted. At the deadline given by the Hong Kong Stock Exchange, Jin Came Up with the Final Privatization Plan.

On the morning of 29 October, Golden Voice issued an announcement that the Offeror ( a company indirectly wholly owned by the Founders Holdings Company and Asia Endowment Holdings ) and the Company would take the Company privately by way of an agreed arrangement and would cancel the shares at HK$2.80 per share of the Planned Shares (a premium of 3.7% over yesterday's closing price). It is expected that the listing status on the Stock Exchange will be revoked at 9:00 a.m. on 15 December.

Affected by this news, on October 30, the transaction of Golden Throat was extremely sluggish, and the stock price closed at HK$2.69, with a market value of less than HK$2 billion. In fact, since the listing for 6 years, the stock price of Golden Throat has fallen from a maximum of more than 6 yuan per share to more than 1 yuan, and the market value has shrunk by up to 90%.

According to the official website of Golden Throat Holding Group, Guangxi Golden Throat Group was originally Liuzhou City Candy Second Factory, in 1994 the company self-raised 7.8 million yuan to establish Guangxi Golden Throat Pharmaceutical Factory, the group company annual production of Golden Throat Throat Tablets 5 billion pieces, the annual output value of 1 billion yuan, was once an excellent scientific and technological enterprise in the national pharmaceutical industry. In July 2015, Golden Throat was listed on the Hong Kong Stock Exchange, with a market capitalization of HK$6 billion.

However, the golden voice that is the peak of the listing has gone downhill in recent years. In 2019, Jin Throat was exposed to the arrears of more than 50 million yuan in advertising fees, and the respondent applied to the court for compulsory enforcement because he "had the ability to perform but refused to perform the obligations specified in the effective legal documents". Jiang Peizhen, the 73-year-old chairman of Golden Throat at the time, became a lao Lai and was listed by the court as a "restricted consumer", restricting his high-spending behaviors such as taking planes and staying in hotels above star level.

On September 23 this year, Golden Throat released its 2021 semi-annual report. According to the data, in the first half of this year, the revenue of Golden Throat was 370 million yuan, an increase of 83.1% year-on-year; the net profit was 81.5 million yuan, of which the sales of "ace products" Golden Throat Throat Treasure and Golden Throat Throat Tablets accounted for about 90% of the company's total revenue. At present, these two products are also facing a sales ceiling. In 2020, the sales revenue of Golden Throat Throat Tablets was about 580 million yuan, a decrease of 19.3% year-on-year, and the sales revenue of Throat Treasure series products was about 53.7 million yuan, a year-on-year decrease of 19.6%.

Industry insiders believe that the biggest problem of Golden Throat at present is the single product. After the advent of Golden Throat Throat Treasure, it did not borrow Dongfeng to enrich related throat products, and the company's product structure was too simple. In addition, Golden Throat did not keep up with the development dividend of the health and pharmaceutical industry, relying only on price increases to maintain the operation and development of listed companies, and the follow-up development momentum was insufficient. Whether the golden voice that is about to be delisted can let go of its hands and feet to do better is still unknown.