Strategic Public Relations Group - Investor Relations Campaign
Company: Strategic Public Relations Group
Company Description: PR networks in Asia and the largest PR consultancy in Hong Kong. It is a specialist in public relations, investor relations and financial communications, and a trusted corporate and marketing communications leader. The award-winning agency has a 300 strong workforce, nine offices in the Asia-Pacific, and retainer clients numbering 300.
Nomination Category: Corporate Communications, Investor Relations, & Public Relations Categories
Nomination Sub Category: Communications or PR Campaign/Program of the Year - Investor Relations
Nomination Title: A New Phase to Success - China New Town Development Co. Ltd
Tell the story about this nominated campaign since 1 January 2016 (up to 650 words). Focus on specific accomplishments, and relate these accomplishments to past performance or industry norms.
China New Town Development Co. Ltd. announced its intention to voluntarily delist (“Delisting”) from the Singapore Stock Exchange (SGX) on October 18, 2016 while maintaining single-listing status on the Hong Kong Stock Exchange (HKEX).
SPRG’s objective during August 1, 2016 to March 31, 2017 was to support CNTD to pass a Delisting resolution while minimizing independent shareholders’ tender of CNTD shares for buyback. We aimed to achieve a better share price performance, thereby predisposing shareholders to hold their shares.
However, before CNTD enlisted SPRG in March 2016, the stock was ignored by investors, inactively traded, and unawareness of its engagement in primary land development and urbanization meant it was misperceived as a real estate property developer. Share ownership dispersal across both exchanges, proxy solicitation and assessment of passing this resolution also presented challenges.
-We implemented a well-planned strategic IR program to persuade over three-quarters of individual shareholders to vote for Delisting by education about CNTD’s core competence, conveying the benefits and positive long-term investment value of Delisting through repositioning CNTD and enhancing its brand.
-Built up awareness and understanding of CNTD and through publicity illustrated its good financial performance and sound strategies on expanding its downstream business
-Educated investors about the advantages of Delisting and highlighted its promising prospec
-Generated greater awareness of Delisting benefits to influence a favorable vote outcome and shareholders not tendering the shares in the critical period before the EGM
-After Delisting, maintained CNTD’s investment momentum through continued publicity
We communicated the news of good interim results and progress on the iconic integrated tourism and healthcare project in Beijing and two shanty town reformation and education projects all aimed at boosting awareness of and confidence in CNTD among investors and the media
Announcement of Delisting
Highlighted the advantages of Delisting to the public
Organized road shows in Hong Kong and with Singapore key individual investors
Organized luncheons with opinion leaders
Disseminated key messages through news coverage, including HKET, Ming Pao, ET Net and The Edge Singapore
Pre-EGM to EGM
Seek vote in favor of Delisting and shareholders not tendering their shares
Co-ordinated with Securities Investors Association (Singapore) to organize a dialogue session between management and Singapore-based individual shareholders to explain rationale for Delisting
Arranged media interviews with CNTD management in Hong Kong
Reminded Hong Kong individual shareholders to submit proxy forms by sending emails to targeted brokers
During Extraordinary General Meeting (“EGM”) in Singapore, arranged direct communication between shareholders and management to raise confidence in voting for Delisting
Post EGM to 2016 Annual Results
Organized special gong striking event at HKEX celebrating commencement of trading SGX shares in Hong Kong
Leveraged outstanding 2016 annual results to highlight CNTD’s bright prospects to the public and maintaining long term investment momentum
-Delisting approved by 98.24% of total votes at CNTD’s EGM on January 17, 2017
-98.78% of issued shares kept by shareholders demonstrating strong support among Hong Kong and Singapore shareholders
-On March 31, its share price closed at HK$0.425, up 51.8% compared to HK$0.27 before the program
-Increased buzz among the investor community: CNTD met 77 investors during the campaign
-Generated 242 items of news coverage in regional newswires, local printed and online financial media with a PR value of HK$9.8 million.
-No negative news reports appeared, about 85% were positive and stock commentaries and the remainder were factual news in the most influential media such as Bloomberg, The Edge Singapore, and Hong Kong Economic Times
Key messages were cited in the headline or content of media coverage:
-Changing of its development strategies to “Investment and operation in urbanization”
-Highlighted the continuing improved financial performance (interim results, third quarter results and annual results of 2016)
-Highlighted CNTD’s overarching strategy to expand its downstream urbanization business and enter the education sector
In bullet-list form, briefly summarize up to ten (10) of the chief features and results of this nominated PR program since the beginning of 2016 (up to 150 words).
-China New Town announced its intention to voluntarily delist from The Singapore Exchange in October 2016, maintaining a single-listing status on HKEX
-Prior to engaging SPRG, CNTD was ignored by investors with inactive trading and share ownership dispersed across both exchanges, so proxy solicitation was challenging
-Aim to increase awareness of CNTD and convince Hong Kong and Singapore shareholders about the advantages of Delisting
-Delisting was approved by independent shareholders in January 2017
-98.78% of issued shares kept by shareholders demonstrating strong support among HK and Singapore shareholders
-Organised a Market Opening Ceremony at HKEX, symbolising start of a new era
-At end of March, its share price closed at HK$0.425, up 51.8% compared to HK$0.27 before the program
-Met with 77 investors, increasing buzz among the investor community
-The campaign generated 242 news coverages with a PR value of HK$9.8 million