Core Viewpoint - Wuzhou Real Estate (00230.HK) is moving towards privatization and delisting from the Hong Kong Stock Exchange due to continuous losses and low stock liquidity, with a proposed buyout price of HKD 1 per share, representing a significant premium over previous trading prices [2][5][8]. Group 1: Reasons for Privatization - The privatization plan is initiated by June Glory International Limited, a subsidiary of China Minmetals, to provide an exit opportunity for shareholders due to low stock liquidity, with an average daily trading volume of only 440,000 shares over the past year [4][8]. - The buyout price offers shareholders a chance to realize their investments at a premium, with a 185.71% premium over the unaffected closing price and a 104.08% premium over the last trading day [5][8]. - Wuzhou Real Estate has lost its ability to raise capital through public markets, having not issued shares since 2009, which has limited its financing capabilities [10][8]. - Privatization will allow the company to focus on long-term strategies and resource integration without the pressures of short-term market fluctuations and compliance [10][8]. - The move will simplify the corporate structure and enhance management efficiency by reducing compliance complexities associated with being a publicly listed company [10][8]. Group 2: Financial Performance - Wuzhou Real Estate reported a revenue of HKD 9.883 billion for 2024, a decrease of 21.8%, with a net loss of HKD 3.748 billion, indicating ongoing financial struggles [12][13]. - In the first half of 2025, the company’s revenue dropped to HKD 1.976 billion, a 60.7% decline, with a net loss of HKD 580 million [13]. - The company's total assets were HKD 39.372 billion, with a debt ratio of 77.2%, reflecting increasing financial pressure [13][12]. Group 3: Context within China Minmetals - Wuzhou Real Estate's contribution to China Minmetals' overall revenue is minimal, as the group has a diverse portfolio with total revenue nearing HKD 400 billion [15][14]. - China Minmetals operates nine listed companies, with Wuzhou Real Estate being one of the two listed in Hong Kong, indicating a broader strategy in the real estate sector [15][14].
这家地产央企退市！公司也曾喊出要“活下去”