Core Viewpoint - The company, Shangkun Real Estate, is set to be delisted from the Hong Kong Stock Exchange on October 27, 2025, after failing to meet the resumption conditions following a prolonged trading suspension that began on April 2, 2024, due to the inability to publish its annual report for 2023 [1][2][3] Group 1: Delisting Trigger - The delisting was primarily triggered by the company's failure to timely release its 2023 annual performance report, leading to a trading suspension [2] - Reasons for the delay included the departure of key management and finance personnel, which severely impacted the preparation of financial statements and audit processes [2] - Despite receiving resumption guidance from the exchange, the company failed to meet the requirements for resumption, including disclosing all outstanding financial performance and business updates [2] Group 2: Financial Performance Decline - Prior to its suspension, the company's stock price plummeted to HKD 0.013 per share, with a market capitalization of approximately HKD 26.94 million, contrasting sharply with its initial listing price of HKD 2.28 per share and a market cap of HKD 45.6 billion [3] - The company experienced a dramatic decline in revenue, with 2022 revenue dropping to HKD 3.034 billion, a 63.61% year-on-year decrease, and further declining to HKD 912 million in the first half of 2023 [6] - Sales performance also saw a steep decline, with sales dropping from HKD 24.84 billion in 2021 to HKD 8.29 billion in 2022, and further down to HKD 3.01 billion in 2023 [6] Group 3: Business Expansion and Debt Crisis - Shangkun Real Estate, founded in 2010, initially expanded rapidly, entering multiple markets and achieving significant sales growth until 2021 [4][6] - The company's aggressive expansion strategy, characterized by high turnover and high land acquisition costs, led to unsustainable debt levels, which became critical during the industry downturn [5][6] - By mid-2023, the company had outstanding borrowings totaling approximately HKD 10.348 billion, while cash and cash equivalents were only about HKD 748 million, indicating severe liquidity issues [6] Group 4: Management and Operational Challenges - The company has been forced to implement cost-cutting measures, including significant layoffs, reducing its workforce from 1,083 in 2021 to 525 by mid-2023 [7] - Frequent changes in the executive team have occurred, with several board members resigning in 2023, which may be linked to the company's operational challenges and ongoing losses [7] - The trajectory of Shangkun Real Estate serves as a microcosm of the struggles faced by many small to medium-sized private real estate firms during the industry's adjustment period [7]