GRANDJOY(SZ:000031) Nan Fang Du Shi Bao·2025-11-18 08:18Core Viewpoint - The privatization decision of Joy City Property, a subsidiary of COFCO Group, has been approved, marking the end of its 12-year listing on the Hong Kong Stock Exchange, with the delisting scheduled for November 27, 2023 [1][3]. Group 1: Privatization Details - The privatization process has been approved after four months of progress, with a total buyback amount of approximately HKD 29.32 billion, at a price of HKD 0.62 per share for non-affiliated shareholders [3][5]. - Post-privatization, Joy City Holdings' ownership will increase to 96.13%, while the stake of its subsidiary, De Mao, will decrease to 3.87%, leading to effective full control of the platform [3][4]. - Joy City Property, established in 1992 and listed in 2013, has developed a nationwide presence with 32 commercial projects across major urban clusters in China [4]. Group 2: Motivations for Privatization - The privatization is a strategic response to the cyclical downturn in the real estate market, which has pressured liquidity and market performance [5][6]. - Joy City Holdings aims to simplify governance and improve operational efficiency by consolidating control over its real estate platform, reducing regulatory compliance costs [5][6]. - Financially, Joy City Holdings has faced significant losses over the past three years, totaling over 7 billion yuan, making this privatization a crucial step towards improving profitability [5][6]. Group 3: Industry Context - The trend of privatization among real estate companies has been growing, with several firms opting to delist from the Hong Kong Stock Exchange due to market pressures and operational challenges [7]. - Key factors driving this trend include insufficient stock liquidity, narrowed financing channels, and the need for companies to adapt to a challenging market environment [7]. - The real estate sector is undergoing significant adjustments, and the trend of privatization is expected to continue over the next 2-3 years as companies seek to optimize operations and respond to market changes [7].