Core Viewpoint - Dalian Wanda Commercial Properties will end its 12-year listing journey, with the delisting plan approved by the court and set to take effect on November 27, 2023 [1] Group 1: Delisting Plan - The delisting plan involves a share buyback at a price of HKD 0.62 per share, with a total scale of approximately HKD 29.32 billion [1] - After delisting, the controlling shareholder, Dalian Wanda (000031.SH), will increase its shareholding from 64.18% to 96.13% [1] - The rationale for delisting includes streamlining governance and corporate structure to enhance management efficiency [1][2] Group 2: Financial Performance - Dalian Wanda Commercial Properties reported a net profit of -CNY 294 million for 2024, marking its first loss since listing [4] - The company has not faced debt issues but has experienced a consistently low stock price, remaining below HKD 1 since May 2019 [1] - In the first half of the year, the company reported revenue of CNY 8.124 billion, a year-on-year decline of 5.78%, and a net profit of CNY 105 million, down 26.60% [5] Group 3: Rental Income and Business Operations - Rental income from Dalian Wanda shopping centers has shown steady growth, with revenues of CNY 2.998 billion in 2023 and CNY 3.023 billion in 2024 [4] - Despite growth in rental income, the gross margin for residential sales has declined due to the downturn in the real estate sector, with a gross margin of approximately 28.4% in 2024, down 14 percentage points year-on-year [4] Group 4: Impact on Parent Company - The delisting is expected to enhance the profitability of the parent company, Dalian Wanda, by concentrating profits and assets in its financial statements [6][7] - Dalian Wanda has faced significant losses in recent years, with cumulative losses of CNY 73.25 billion from 2022 to 2024 [6] - The delisting will simplify the corporate structure and potentially improve financing capabilities for Dalian Wanda [2][7]