Core Viewpoint - The trend of real estate companies delisting is expected to continue over the next 2-3 years, with Dalian City Real Estate's privatization plan set to conclude its public listing journey by 2025 [1][4]. Company Summary - Dalian City Real Estate (00207.HK) announced that shareholders approved the privatization resolution during a court meeting on November 17, 2023 [1]. - The company's listing status on the Hong Kong Stock Exchange is expected to be officially revoked on November 27, 2023 [2]. - Dalian City Real Estate is a commercial real estate platform under COFCO Group, managing 32 projects across five major city clusters in China, including luxury hotels and investment properties [2]. - The total cost for the share repurchase plan is approximately HKD 29.32 billion [2]. - Prior to the agreement, COFCO Group held 64.18% of the shares, which will increase to 96.13% post-privatization [2]. Financial Performance - Dalian City Real Estate has reported continuous losses over the past three years, with losses of CNY 2.882 billion in 2022, CNY 1.465 billion in 2023, and an estimated CNY 2.977 billion in 2024, totaling over CNY 7 billion [3]. - Dalian City Holdings is expected to turn profitable by mid-2025, benefiting from the increased equity in Dalian City Real Estate post-privatization [3]. Industry Trends - The increase in privatization and delisting among real estate companies is attributed to several factors: insufficient stock liquidity, loss of financing capabilities, and ongoing losses and debt crises [4]. - Privatization allows companies to implement long-term strategies and enhance operational flexibility while reducing regulatory costs [4]. - The real estate industry is undergoing significant adjustments, with declining sales and a complex market environment, indicating that the trend of privatization will likely persist [4].