Zheng Quan Shi Bao·2025-09-23 12:12Group 1 - The core point of the article is that Changhong Jiahua (03991.HK) has resumed trading and experienced a significant stock price increase of 23.91% following the announcement of its privatization plan by its parent company Sichuan Changhong (600839) [1][2] - Sichuan Changhong holds a substantial stake in Changhong Jiahua, with 875 million ordinary shares and 1.116 billion convertible preferred shares, representing 60.13% and 100% of the respective total issued shares [2] - Despite a 9.76% year-on-year increase in revenue to approximately HKD 21.169 billion in the first half of 2025, Changhong Jiahua's overall gross margin decreased by 0.27 percentage points to 3.07% due to intense market competition [2] Group 2 - The stock performance of Changhong Jiahua has been poor, with a total market capitalization of only HKD 1.7 billion, while its net assets exceed RMB 2.8 billion as of June 30 [2] - The trading activity of Changhong Jiahua has been extremely low, with six months in the first eight months of the year recording transaction volumes below HKD 10 million [2][4] - Sichuan Changhong stated that the long-term low stock price of Changhong Jiahua makes it difficult to utilize the Hong Kong stock platform for capital operations, leading to the decision to privatize [4][6] Group 3 - The article notes that 20 Hong Kong companies have opted for privatization this year, indicating a trend among companies facing low trading volumes and challenges in maintaining their public listing [5][6] - The latest company to privatize is Jin'an Industrial, which completed its delisting on September 19, 2025, due to low trading levels and a lack of investor interest [7][8] - Companies choosing to privatize often cite reasons such as low stock liquidity, inability to raise funds through public markets, and the high costs associated with maintaining a public listing [8]