Core Viewpoint - The long-established menswear giant, Goldlion, is struggling with continuous poor performance and has faced a failed privatization attempt, which has led to a significant drop in its stock price. Group 1: Privatization Attempt - Goldlion's chairman, Zeng Zhiming, has been pushing for privatization since late last year, aiming to end the company's 33-year listing on the Hong Kong stock market [1][2] - The privatization plan was rejected in a court meeting on May 9, with only 55.33% of votes in favor, failing to meet the required 75% threshold [4][5] - Following the rejection, Goldlion's stock price plummeted nearly 40% on the first trading day, closing down 33.56% [1] Group 2: Financial Performance - Goldlion's revenue for 2024 was HKD 1.129 billion, a year-on-year decline of 8.44%, while net profit shrank to HKD 86.21 million, down 19.86% [8][12] - The company has experienced a compound annual decline of 12% in performance over the past three years, with net profit growth rates showing double-digit negative growth [8][12] - Despite the poor performance, Goldlion maintains a stable cash flow with over HKD 1 billion in cash and bank balances, and no bank loans or overdrafts [12][13] Group 3: Market Position and Challenges - Goldlion's market position has weakened, with an average daily trading volume of only 296,000 shares, representing less than 0.03% of total shares [3] - The company has not utilized its listing status for fundraising in the past 20 years, incurring annual compliance costs of HKD 12 million [3][12] - The menswear industry is facing collective challenges, with other brands like Youngor and Bananai also reporting significant declines in profits [14] Group 4: Asset Valuation - Goldlion has substantial property assets valued at approximately HKD 2.605 billion, with a net asset value of HKD 4.47 per share, nearly three times the privatization offer price of HKD 1.52 per share [6][13] - The company reported rental income of HKD 146 million and property management fees of HKD 41 million in 2024, totaling HKD 187 million [13] Group 5: Strategic Initiatives - Goldlion has attempted to pivot by launching products that incorporate traditional Chinese culture and establishing sub-brands aimed at urban social life, but these efforts have yielded limited results [14]