Zheng Quan Zhi Xing·2025-08-06 16:22Core Viewpoint - The report discusses the proposal for the privatization of Joy City Property by its parent company, Joy City Holdings, through a share buyback arrangement, which will lead to the delisting of Joy City Property from the Hong Kong Stock Exchange [3][4]. Group 1: Transaction Overview - Joy City Holdings intends to buy back shares from all shareholders of Joy City Property, excluding its controlling shareholder, for a cash price of HKD 0.62 per share, totaling approximately HKD 2.93 billion [3][4]. - The buyback will result in Joy City Holdings increasing its ownership stake in Joy City Property from 64.18% to 96.13% post-transaction [6][7]. - The transaction is subject to several conditions, including approvals from the Bermuda Supreme Court and the Hong Kong Stock Exchange [4][8]. Group 2: Financial Performance - For the year 2024, Joy City Property reported a total revenue of RMB 19.83 billion and a net profit attributable to shareholders of RMB 779 million [6]. - The total assets of Joy City Property stood at RMB 106.77 billion, with total liabilities of RMB 73.58 billion, resulting in a net asset value of RMB 16.24 billion [6]. Group 3: Business Operations - Joy City Property focuses on the development, operation, and management of urban complexes under the "Joy City" brand, with a presence in major cities across China [7]. - The company operates in four main business segments: investment properties, property development, hotel operations, and management services [7]. Group 4: Strategic Implications - The transaction aims to optimize the governance framework of Joy City Holdings and enhance its decision-making efficiency, thereby improving overall operational effectiveness and market competitiveness [8]. - Post-transaction, Joy City Holdings is expected to benefit from increased net profit and better resource allocation across its various business segments [8].