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NANPING, China - Golden Heaven Group Holdings Ltd. (Nasdaq: GDHG), a Chinese amusement park operator with a market capitalization of approximately $10 million, has announced a share consolidation plan approved by its board of directors on April 23, 2025. The consolidation comes as the stock trades near its 52-week low of $0.25, having declined over 98% in the past year according to InvestingPro data. The consolidation, set at a 25 for 1 ratio, is scheduled to take effect with the opening of trading on May 9, 2025. This move aims to bring the company into compliance with Nasdaq Marketplace Rule 5550(a)(2), which is necessary for maintaining its listing on the Nasdaq Capital Market.
The company’s Class A ordinary shares will continue to trade under the ticker "GDHG" but will have a new CUSIP Number, G3959D208. The consolidation will result in every 25 existing ordinary shares being combined into one issued and outstanding ordinary share. Shareholders will not need to take any action, as the conversion will occur automatically. No fractional shares will be issued; instead, shareholders will receive one whole share in place of any fractional shares that would have resulted from the consolidation.
Following the consolidation, Golden Heaven’s authorized share capital will remain at US$200,600,000 but will be divided into fewer shares with a higher par value. Specifically, Class A ordinary shares will decrease from 40 billion shares with a par value of US$0.005 each to 1.6 billion shares with a par value of US$0.125 each. Similarly, Class B ordinary shares will be reduced from 120 million shares to 4.8 million shares, each with a new par value of US$0.125. InvestingPro analysis reveals the company maintains a strong liquidity position with a current ratio of 10.41, indicating substantial coverage of short-term obligations.
Golden Heaven operates amusement and water parks in China, offering a variety of attractions and experiences, including rides, water features, festivals, and performances. While the company trades at a notably low price-to-book ratio of 0.11, InvestingPro data indicates concerning financial health with negative earnings per share of -$0.70 and declining revenues. The share consolidation is part of the company’s efforts to comply with trading regulations and continue its operations without interruption. InvestingPro subscribers have access to 14 additional key insights about GDHG’s financial performance and outlook.
This announcement is based on a press release statement from Golden Heaven Group Holdings Ltd. and contains forward-looking statements that are subject to risks and uncertainties. Investors are advised to review the company’s filings with the U.S. Securities and Exchange Commission for a more comprehensive understanding of potential factors that could affect future results.
In other recent news, Golden Heaven Group Holdings Ltd. has announced an extraordinary general meeting of shareholders scheduled for April 22, 2025. The meeting’s agenda remains undisclosed, but the company has issued a notice and proxy statement to all shareholders of record, dated April 15, 2025. This announcement aligns with the company’s compliance with SEC regulations, specifically under Form 6-K for foreign private issuers. The filing, signed by CEO Jin Xu, indicates that the company submits its annual reports under Form 20-F. While the company’s business address and contact information were included in the filing, no performance or strategic details were shared. Shareholders are advised to review the proxy statement for further information on the meeting’s agenda. This development is part of the company’s ongoing communication with its shareholders and regulatory bodies.
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