Hong Kong Exchanges and Clearing Limited has informed Goldstone Capital Group Limited (“Goldstone Capital”) that the company no longer meets the Stock Exchange’s Main Board Listing Rule 13.24, citing an unsustainable business model and inadequate asset base. Trading in Goldstone Capital’s shares is scheduled for suspension on 22 September 2026 unless the issuer requests a review of the decision by 21 September 2026.
The Stock Exchange’s assessment focused on Goldstone Capital’s operating record during the five financial years ended 31 March 2026. Over this period, the investment company’s financial assets fluctuated between zero and HK$6.60 million, consisting mainly of short-term U.S. Treasury bills and debt securities. As of 31 March 2022 and 31 March 2024, the company held no financial assets, and by 31 March 2026 this balance stood at only HK$0.77 million. Annual investment gains ranged from HK$0.03 million to HK$0.47 million—insufficient to offset recurring corporate expenses—leading to persistent net losses, negative operating cash flow and a steady erosion of net worth.
Despite raising HK$41.70 million through a rights issue in March 2022, the company’s limited investment activity resulted in its net asset value falling from HK$32.43 million at the start of the five-year review period to HK$0.55 million by 31 March 2026, before sliding into a net-liability position by 31 May 2026. At the most recent financial year-end, Goldstone Capital reported total assets of HK$6.20 million against total liabilities of HK$5.70 million.
Given these findings, the Exchange concluded that Goldstone Capital lacks both the scale of operations and asset base necessary for continued listing. Under Rule 6.01A(1), the company faces delisting if trading remains suspended for 18 consecutive months. The Exchange further indicated it expects the Chapter 21 investment company to prove, within six months of suspension, that it has: 1) competent and experienced management; 2) sufficient committed capital; and 3) clear investment policies and governance controls. Absent satisfactory progress, the Exchange may shorten the remedial period or expedite delisting.
Goldstone Capital’s board is reviewing the Exchange’s letter and considering whether to seek a Listing Committee review. The company has cautioned shareholders and potential investors about the uncertainty of any such review and advised them to seek professional advice.