What will it be like for Kaiyuan Hotel to withdraw from the market?

Kaiyuan Hotel Delisting On May 24th, Zhejiang Kaiyuan Hotel Management Co., Ltd. (? Kaiyuan Hotel? ) officially delisted from Hong Kong stocks.

As one of the largest private high-star hotel chain groups in China, Kaiyuan Hotel ranks second among the largest hotel groups in China and enjoys a high reputation in the hotel industry. According to the financial report, by the end of 2020, there were about 589 star-rated hotels operated or developed by Kaiyuan Hotel Management Company and its subsidiaries, with an annual income of 654.38+59.8 million yuan.

What is the delisting of Kaiyuan Hotel? Retreat for progress? And then what?

Kaiyuan Hotel has only been listed for two years, when it was only 14. As early as 2005, Kaiyuan Hotel first announced its listing in Hong Kong. Until 2065438+March 2009, Kaiyuan Hotel officially landed in Hong Kong stocks.

After listing, Kaiyuan Hotel was given a cold shoulder by Hong Kong's capital market. Before listing, the IPO scale was not as good as expected, and only raised nearly HK$ 1 1 billion, which was broken on the first day of listing. In the following two years, the company's stock trading was inactive, and the stock price was always lower than the issue price. In June this year, 5438+ 10, after the news of privatization came out, the company's share price hit a record high.

Listing doesn't seem to bring much benefit to Kaiyuan Hotel. In addition to the unsatisfactory stock valuation, business development is not as good as expected. Affected by the epidemic, the performance of Kaiyuan Hotel dropped sharply last year. The annual report of the company in 2020 shows that the annual revenue is about159.8 million yuan, which is about192.8 million yuan compared with the same period in 20 19, and it is about 1. 1% lower than the same period in 2020/9. The net profit decreased from about 205 million yuan in 20 19 to 26.6 million yuan, a decrease of about 87.0%; Gross profit was about 335 million yuan, down about 40.8% year-on-year.

By the end of 2020, Kaiyuan Hotel has operated and managed 5 hotel brands1,including 3 hotels11. At the worst of the epidemic in 2020, Kaiyuan Department Store closed a large number of hotels. Even if some hotels are opened, the occupancy rate is less than 50%, which brings great operating pressure to Kaiyuan Hotel. As far as Kaiyuan Hotel is concerned, due to the unsatisfactory listing, the company decided to withdraw from the market and realize privatization.

Well, that's all I want to share in this issue.