GRANDJOY(SZ:000031) Bei Jing Shang Bao·2025-08-04 11:15Core Viewpoint - Dalian Wanda Commercial Properties is planning to privatize and delist from the Hong Kong Stock Exchange, offering shareholders a buyback price of HKD 0.62 per share, totaling approximately HKD 29.32 billion, which represents a significant premium over recent trading prices [1][5][9] Group 1: Privatization Details - Dalian Wanda Commercial Properties, established in 1992 and listed in 2013, is set to end its 12-year presence in the Hong Kong market by submitting a proposal to delist by 2025 [5] - The buyback will increase Dalian Wanda Holdings' stake in Dalian Wanda Commercial Properties from 64.18% to 96.13%, while the stake of other shareholders will decrease [5][8] - The company operates primarily in developing and managing urban complexes under the Dalian Wanda brand, with four main business segments: investment properties, property development, hotel operations, and management services [5] Group 2: Financial Implications - Following the transaction, Dalian Wanda Holdings expects to enhance its equity in Dalian Wanda Commercial Properties, which could improve its net profit attributable to shareholders [6] - Dalian Wanda Holdings reported a revenue of approximately CNY 357.91 billion for 2024, a decrease of 2.70% from 2023, with a net loss of about CNY 29.77 billion, a significant improvement of 103.14% [8] - Dalian Wanda Commercial Properties reported a revenue of CNY 198.31 billion for 2024, with a net profit of CNY 7.79 billion and total assets of CNY 1,067.71 billion, alongside total liabilities of CNY 735.78 billion [8] Group 3: Market Context and Strategy - The stock price of Dalian Wanda Commercial Properties has been below HKD 1, making the privatization offer attractive to shareholders, providing a premium of 67.57% over the last closing price [9] - The company has faced challenges in raising funds from the capital market due to low liquidity and a significant discount to net asset value, prompting the need for privatization [9][10] - Experts suggest that privatization will allow Dalian Wanda Commercial Properties to focus on long-term value investments and asset optimization, reducing pressure from short-term financial metrics [10][12] Group 4: Operational Efficiency - The current governance structure complicates decision-making, and privatization is expected to streamline operations and enhance management efficiency [12] - Post-privatization, the company will have greater flexibility in strategic decision-making, allowing for quicker responses to market changes [12] - The focus will shift towards improving asset quality and cash flow management, with a more concentrated investment strategy in core commercial real estate projects [9][12][13] Group 5: Future Outlook - Dalian Wanda Commercial Properties aims to enhance its competitive edge in the commercial real estate sector through asset optimization and operational efficiency [14] - The company is recognized as a leader in experiential retail and cultural trends, with plans to deepen brand value and establish its projects as urban landmarks [14]