Core Viewpoint - The company Dalian City Real Estate has received approval for privatization and delisting from the Hong Kong Stock Exchange, aiming to streamline its governance structure and improve operational efficiency [2][5]. Group 1: Privatization and Delisting - On November 17, Dalian City Real Estate announced that its privatization and delisting proposal has been approved [2]. - The company plans to repurchase approximately 4.729 billion shares at a cash cancellation price of HKD 0.62 per share, totaling a maximum cash payment of about HKD 29.32 billion [5]. - After the transaction, the controlling shareholder will hold approximately 96.13% of the shares, and the company will apply for the cancellation of its listing status [5]. Group 2: Reasons for Delisting - The company cited complex governance structures and decision-making inefficiencies due to control by A-share listed company shareholders as reasons for the privatization [5]. - The aim is to simplify governance and corporate structure, allowing for more efficient management and reduced decision-making time [5]. Group 3: Financial Performance - Dalian City Real Estate reported a revenue of approximately HKD 81.24 billion for the first half of the year, a decrease of 5.8% year-on-year, with net profit declining by 26.6% to HKD 1.05 billion [5][11]. - The property development segment contributed HKD 54.81 billion in revenue, down 8.3% year-on-year, while rental income from investment properties was approximately HKD 20.38 billion, down 2.5% [11]. - The company’s operating cash flow decreased by nearly 53% to HKD 8.44 billion, and cash and cash equivalents fell by 15.24% to HKD 167.78 billion [11]. Group 4: Market Conditions - The company has faced challenges in the market, with its stock price consistently below net asset value and low liquidity affecting its ability to raise funds from capital markets [6][10]. - The average daily trading volume over the past five years was only about 0.045% of the total shares issued, indicating limited market activity [10].