GT GOLD (08299), with its year-to-date surge exceeding 600%, has emerged as one of the most dazzling performers in the 2025 Hong Kong stock market. However, investors have long harbored doubts about its ability to successfully transition to the main board. A recent announcement has now provided the market with much-needed reassurance.
On the evening of December 12, GT GOLD disclosed that it had submitted an updated application to the Hong Kong Stock Exchange (HKEX) under Chapter 9B of the Main Board Listing Rules, including all necessary documents and materials. This signals steady progress in its transition process.
While the shift from the Growth Enterprise Market (GEM) to the main board comes with stringent requirements, GT GOLD’s current standing makes its success a near certainty. The core criteria for transitioning include meeting any one of the financial benchmarks: the "profit test," the "market capitalization/revenue/cash flow test," or the "market capitalization/revenue test." GT GOLD has already satisfied these standards, with its trading volume consistently ranking among the top on GEM.
Moreover, the HKEX’s 2024 "Simplified Transition Mechanism" has significantly streamlined the approval process. Successful transitions in 2025, such as those of Oceanwide Holdings and Biyou Group, were completed within 3-4 months. GT GOLD initially filed its transition application on October 10, 2025, meaning the official main board listing is imminent.
A successful transition would signify HKEX’s recognition of GT GOLD’s stable business model, sustained profitability, and standardized corporate governance. This upgrade would enhance the company’s industry influence and competitiveness. The "international visibility" and "brand endorsement" of the main board would also serve as critical assets for business expansion and attracting high-quality clients and partners.
Crucially, the transition would unlock dual benefits: improved liquidity and valuation re-rating. GEM-listed companies often face liquidity constraints and valuation discounts. Moving to the main board would broaden the investor base and refine the valuation framework, significantly enhancing market efficiency. For instance, Jun'an Holdings (01559) saw its share price rise from HK$1 to HK$2.72 post-transition, with its market capitalization soaring from HK$300 million to HK$2.1 billion, a testament to the main board’s valuation uplift.
Although GT GOLD’s share price has already climbed from HK$0.083 to HK$0.60 this year, this rally reflects years of explosive earnings growth. Data shows that, driven by acquisitions of gold smelting facilities and rising gold prices, GT GOLD has delivered consecutive years of double- to triple-digit revenue and profit growth. In the first half of 2025, revenue surged 103.6% year-on-year to HK$1.095 billion, while net profit jumped 201.1% to HK$42.78 million.
Despite its modest starting point, GT GOLD is a high-growth company with untapped potential. According to its interim report, the company plans to further boost gold production by optimizing existing mines at Tai Zhou Mining and pursuing strategic acquisitions. Notably, GT GOLD has appointed industry veteran Wang Dongsheng as chief advisor, a move expected to drive systemic improvements in "resources, talent, and technology," ensuring sustained rapid growth.
For high-growth companies like GT GOLD, a successful transition would mark a pivotal leap in valuation. The move could attract institutional investors, including sovereign wealth funds and ETFs, allowing the company’s intrinsic value to be fully reflected through earnings growth and valuation re-rating.
For investors, the current window before the transition may represent the final opportunity to capitalize on the "expectation gap."
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