Core Viewpoint - Dalian Wanda Commercial Properties (00207.HK) is planning to privatize and delist from the Hong Kong Stock Exchange, with a proposed share buyback at a maximum cash consideration of HKD 29.32 billion, following a two-week trading suspension [1][3]. Group 1: Privatization Plan - The company aims to simplify its governance structure and improve decision-making efficiency by privatizing, as the current structure complicates governance and hinders decision-making [5][6]. - The buyback price of HKD 0.62 per share represents a premium of 67.57% over the last closing price and significantly higher premiums over the average prices of the previous trading days [5][6]. - The privatization is expected to enhance the parent company's equity in Dalian Wanda Commercial Properties, potentially improving its net profit [3][6]. Group 2: Background and Structure - Dalian Wanda Commercial Properties is a subsidiary of COFCO Group, which has a unique "A-share controlled red chip" structure, with COFCO holding 64.18% of the shares prior to the buyback [1][2]. - The company has undergone significant restructuring in the past, including a merger with COFCO's real estate arm in 2019, which aimed to consolidate its real estate operations [2][3]. Group 3: Financial Performance - Dalian Wanda Commercial Properties has faced financial challenges, with significant losses reported over the past three years, totaling over HKD 70 billion [8][9]. - The company’s revenue from property sales remains its primary income source, accounting for 79.31% of total revenue, while investment properties contribute 14.65% [9]. - Despite recent losses, the company projects a return to profitability by mid-2025, with expected net profits ranging from HKD 0.80 billion to HKD 1.20 billion [9].