This weekend, I thoroughly reviewed the ten-year memorabilia of Mr Ng’s entry into the Orange Sky, and finally sighed…
31/10/2007 Mr Ng bought 31,432,151 shares and CB with a face value of 20 million yuan for 202 million yuan, and the conversion price was 2.2 yuan per share.
4/3/2008 Orange Sky sells 50% stake in TGV held for a total consideration of HK$96.5 million
10/7/2008 Mr Ng made a voluntary offer of 3.7 per share, holding 105,670,412 shares, together with 9,090,909 shares of CB, holding a total of 146,423,472 shares.
26/8/2008 Orange Sky completed the sale of TGV equity, with a special interest of 0.1 yuan per share
1/4/2009 Wusheng’s share placement reduced 9 million shares, and the price per share was 4.5 yuan to restore market liquidity.
16/6/2009 Connected Transaction – Orange Tian bought Wutian Zhihong’s shareholding in Wusheng, the consideration includes HK$36.1 million in cash and HK$54.1 million in convertible notes, with a conversion price of 3.38 yuan
24/9/2009 Orange Sky 1 share split 10 shares
12/11/2009 Orange Sky Placing 366 million shares at a price of 0.539 yuan per share, raising approximately RMB190 million for its business development in China (especially cinema business) and for working capital
10/2/2010 Orange Sky placed 340 million shares at a price of 0.97 per share, raising about 330 million yuan to expand the mainland China territory
August 2010 Mr Ng added 11.47 million shares in the market, with an average price of about 0.56 yuan per share.
23/9/2010 Orange Sky intends to purchase US$25 million to acquire US legendary
9/12/2010 Connected Transaction – Orange Sky sells Pan Asia Huaying Advertising to Mr Ng for a price of HK$20.36 million
25/5/2011 Mr Ng exercised CB, holding 160,189,348 shares at 0.338 yuan per share
28/8/2011 Orange Sky Acquired US Legendary Blowing, Received $5 Million in Compensation
September 2011-January 2012 Orange Sky repurchased 22.725 million shares in the market, with a repurchase price ranging from 0.27 to 0.33 yuan.
June 2011-September 2012 Wusheng increased its holdings in the market by 24.45 million shares, and the price ranged from 0.265 to 0.4 yuan.
14/1/2013 Orange Sky acquires 10,380 square feet of office space in Wanchai for 171 million
26/3/2013 Orange Sky holds 35.71% of Taiwan Weixiu shares, intends to apply for listing in Taiwan
27/5/2014 Orange Sky holds 35.71% of Taiwan Weixiu shares, disputes between shareholders
July 6-8, 2015 Wusheng increased its holdings of 33.23 million shares in the market, and the price ranged from 0.404 to 0.536 yuan.
22/1/2016 Orange Sky issued CB raised 200 million yuan, the conversion price of 1 yuan per share
29/11/2016 Orange Sky completed the sale of 7.41% stake in Orange China, at a price of 200 million yuan
10/2/2017 Orange Sky announced the sale of 92.59% stake in Orange Sky China for RMB 3.286 billion
13/4/2017 Granted 106,991,400 stock options to Mr Ng, exercise price of 0.84 yuan
31/5/2017 Connected Transaction – Orange Sky Acquires Pan Asia Cinema Advertising to Mr Ng for HK$71 Million
28/7/2017 Completed the sale of the equity of Orange China, with a net receipt of RMB 3.02 billion
3/8/2017 Mr Ng exercised share options, holding 109,734,429 shares at 0.84 yuan per share
10/8/2017 Orange Sky declared a special dividend of 0.351 yuan per share, involving 1 billion yuan
14/9/2017 CB holders convert some CBs, convert 10 million yuan CB to HK$0.67 per share, convert 14.93 million shares
16/10/2017 Orange Sky redemption of 190 million yuan CB
In October 2017, Mr Ng increased its holdings of 22.225 million shares in the market, and the price ranged from 0.5 to 0.52 yuan.
25/10/2017 Orange Sky completed the acquisition of 50% equity of Singapore Carnival Film Amateur, with a price of 1.012 billion yuan
November-December 2017 Orange Sky repurchased 70.53 million shares in the market, with a price per share ranging from 0.54 to 0.77 yuan.
4/1/2018 Orange Sky declared a second special dividend of 0.253 yuan per share, involving 708 million yuan
Mr Mg has a sword and achieved good results in ten years. All of them were very good. Unfortunately, a connected transaction – Orange Sky bought Jiangyin Orange World to Wusheng last week for 560 million yuan, and pushed the orange sky to the land of annihilation. Because investors believe that this acquisition is Orange Tian to send benefits to Mr Ng, everyone lost confidence in Orange Sky and Mr Ng.
Ten years ago, when Mr Ng obtained the control of Orange Sky in the form of a voluntary offer, Orange’s half-year results were a profit of 3 million yuan and a net asset value of 540 million yuan. Ten years later, the orange Sky interim results were a profit of 48 million yuan. The net value was 2.18 billion yuan, and it was after the special interest of 1.7 billion yuan. Ten years ago, the market value of Orange Sky was about 500 million yuan. After 10 years, the market value was 700 million yuan. The valuation was low. In the final analysis, the valuation of Orange Sky was completely devastated by a connected transaction.
Now, Orange Sky look like the previous Sunshine Paper (02002) announced after the connected transaction, the market is extremely skeptical of the integrity of the major shareholders, but we shall use the feet to vote. To alleviate this worry, we can only cancel this connected transaction. The most ideal situation is of course that the two parties to the transaction will cancel voluntarily. Otherwise, the minority shareholders will work together to veto, and then they will do their best to listen to the fate.
I miss the joyful scene half a year ago, I hope the life is just like the first sight.