第一财经·2025-11-17 16:08Core Viewpoint - Daxiyucheng Real Estate is set to privatize, ending its public listing after being established in 2013 and planning to delist by November 27, 2025, following shareholder approval at a court meeting [3][4]. Group 1: Company Overview - Daxiyucheng Real Estate, a commercial real estate platform under COFCO Group, manages 32 projects across five major city clusters in China, including luxury hotels and investment properties in first-tier cities [4]. - The company is a subsidiary of Daxiyucheng Holdings, which is listed on the A-share market, representing a less common "A-share controlled red chip" structure in the industry [4]. Group 2: Privatization Details - The total cost for the share buyback and delisting is approximately HKD 29.32 billion, driven by low stock liquidity, limited financing capabilities, and increased governance complexity [5]. - Post-privatization, Daxiyucheng Holdings' ownership in Daxiyucheng Real Estate will increase from 64.18% to 96.13%, significantly enhancing its control and potential profit margins [5]. Group 3: Financial Performance - Daxiyucheng Holdings has reported continuous losses over the past three years, with losses of CNY 2.882 billion in 2022, CNY 1.465 billion in 2023, and an estimated CNY 2.977 billion in 2024, totaling over CNY 7 billion [5]. - The company anticipates a turnaround to profitability by the first half of 2025, aided by the privatization plan which is expected to bolster its financial performance [5]. Group 4: Industry Trends - The trend of privatization among real estate companies has been increasing, with several firms like China Hongtai Development and Huafa Property also opting for delisting due to market pressures and operational challenges [6][7]. - Key reasons for this trend include insufficient stock liquidity, loss of financing capabilities, and the need for strategic flexibility amid a challenging real estate market environment [7].