Core Points - Dalian Wanda Commercial Properties has announced the approval of its privatization plan, which is expected to lead to its delisting from the Hong Kong Stock Exchange on November 27 [2][5] - Dalian Wanda Holdings will increase its stake in Dalian Wanda Commercial Properties to 96.13% following the privatization [2][6] - The company aims to simplify its corporate structure and improve operational efficiency in response to market challenges [2][6] Company Overview - Dalian Wanda Commercial Properties, a subsidiary of COFCO Group, is engaged in the development, operation, sale, leasing, and management of mixed-use and commercial properties [4] - The company has established a presence in 24 cities across mainland China and Hong Kong, managing 32 commercial projects [4] - The company was listed in Hong Kong in 2013 and underwent significant restructuring in 2019, aiming to leverage both A-share and H-share markets for financing [4] Financial Performance - For the first half of 2025, Dalian Wanda Commercial Properties reported total revenue of 8.124 billion RMB, a decrease of 5.8% year-on-year, and a net profit of 105 million RMB, down 26.6% [5] - The company experienced a post-tax loss of approximately 140 million RMB due to changes in the fair value of investment properties and exchange rate fluctuations, while core net profit increased by 25.1% to 244 million RMB [5] - Rental income from investment properties totaled approximately 2.038 billion RMB, a decline of 2.5% year-on-year, with a gross margin of 78% [5] Market Context - The decision to privatize is attributed to the company's low stock price relative to net asset value and limited liquidity, which hindered its ability to raise capital [5][6] - The trend of privatization among listed real estate companies is increasing, with approximately 23 companies exiting the capital market in the past three years [9][10] - The ongoing trend of both passive and active delistings is expected to continue, driven by low stock prices and the need for strategic flexibility [10]