The latest news on July 28th, Nature Home announced that it will delist from Hong Kong!

The company' s major shareholder, New Modern Home Furnishing, plans to privatize the company at a privatization price of 1.7 yuan per share.

At present, She Xuebin, She Jianbin and others control New Modern Home and their concerted parties hold a total of 78.8% of the equity of Nature Home. This privatization involves a maximum of 523 million yuan. After the plan takes effect, the company will apply for the cancellation of the listing status of the shares on the Hong Kong Stock Exchange in accordance with the listing rules.

After delisting from Hong Kong, it may prepare for A-share listing

According to analysis by industry insiders, from the perspective of comprehensive judgment strength, annual turnover, and annual profit of Nature Home, after the listing of Nature Home in Hong Kong, the stock value has been underestimated by the capital market.

Since the listing of Nature Home in Hong Kong in 2011, its stock price has been sluggish and its liquidity has been at a low level for a long time. The privatization proposal aims to provide plan shareholders with an attractive opportunity to offer them a premium price compared to the recent transaction price level, realizing the shares held in exchange for cash.

There are also opinions that because of the poor performance of Hong Kong stocks in recent years, Nature Home may prepare for A-share listing after its delisting from Hong Kong. 

It is reported that after the implementation of the plan and its delisting from Hong Kong, Nature Home will plan to reorganize to realize the listing of all or part of its business in China. The intention of New Modern Home is that the group will continue to engage in its existing main business, which is the production and sale of flooring products and customized home improvement products.

At the beginning of this year, nearly a thousand distributors participated in the 2021 Nature Home Entrepreneur Conference. She Xuebin, Chairman of the Board of Directors and CEO of Nature Home Furnishing Holdings Co., Ltd., also said that we will start a second business, recreate Nature in three years, and run towards the dream of home furnishings of hundreds of billions.

First-half performance turned from loss to profit

However, it is not an easy task to realize Hong Kong's delisting from the A-share market.

According to the semi-annual performance forecast of Nature Home, it is expected that the performance of the first half of the year ending June 30 will turn from loss to profit, and the net profit for the same period in 2019 will not be less than 34.93 million yuan. In the same period last year, Nature Home lost about 34.21 million yuan.

Nature Home Furnishing also stated that the company' s overall revenue is expected to be no less than 1.282 billion yuan in the same period in 2019. 

The mainland business has returned to normal and returned to the level before the outbreak. 

Nature Home is expected to announce its full results before the end of August.