Core Viewpoint - The privatization plan of Goldlion Group was not approved by shareholders, leading to a nearly 40% drop in stock price upon resumption of trading on May 12. The proposal received only 55.33% support, falling short of the required 75% threshold, while 44.66% opposed it, exceeding the 10% limit for dissenting votes [2][4][7]. Group 1: Privatization Attempt - The chairman of Goldlion, Zeng Zhiming, proposed a privatization plan to acquire the remaining 31.25% of shares at HKD 1.5232 per share, totaling approximately HKD 464 million. The plan aimed to consolidate ownership within the Zeng family [4]. - The Hong Kong High Court accepted Goldlion's privatization application on April 11, 2025, with plans to delist from the Hong Kong Stock Exchange on July 2, ending a 33-year listing history [4]. - The privatization plan required at least 75% approval from non-interested shareholders and that dissenting votes not exceed 10% of total votes. The unexpected high level of opposition led to the plan's failure [7][8]. Group 2: Financial Performance - Goldlion's performance has been declining since 2014, with 2024 revenue estimated at HKD 1.219 billion, a year-on-year decrease of 8%, and net profit of HKD 93.1 million, down 19.86% [4]. - The company's stock market activity has been weak, with an average daily trading volume of only 296,000 shares, representing 0.03% of total shares, and an annual turnover rate below 20%, significantly lower than the average for Hong Kong's main board [7]. - As of the end of 2024, Goldlion's total assets were HKD 5.15 billion, with a net asset value of approximately HKD 4.46 per share, indicating that the privatization offer represented a discount of about 66% [8]. Group 3: Market Dynamics - The men's apparel segment, which Goldlion primarily operates in, is facing challenges in attracting younger consumers, compounded by brand aging and lower purchase frequency compared to women's and children's clothing [5]. - The failed privatization reflects a disconnect between the proposed offer and the expectations of minority shareholders, suggesting that any future attempts would require greater consideration of shareholder interests [8].
金利来私有化退市不获股东批准，股票复牌暴跌近40%