Core Viewpoint - Sichuan Changhong's subsidiary, Changhong Jiahua, is set to be privatized by its controlling shareholder, Changhong Holdings Group, through its wholly-owned subsidiary, Hongtu Investment, which will acquire the remaining shares not controlled by Sichuan Changhong [1][4]. Group 1: Privatization Details - The privatization plan involves the acquisition of approximately 580 million ordinary shares held by other shareholders, representing about 39.87% of Changhong Jiahua's total ordinary shares and 22.57% of its total issued ordinary and convertible preferred shares [4]. - The acquisition price is set at HKD 1.223 per share, totaling approximately HKD 709 million, which represents a premium of about 32.93% over the last trading day's closing price of HKD 0.920 [5]. - The average closing prices for the last 10, 30, 90, and 180 trading days were HKD 0.911, HKD 0.924, HKD 0.881, and HKD 0.764, respectively, with premiums of approximately 34.25%, 32.36%, 38.78%, and 60.17% [5]. Group 2: Business Context - Changhong Jiahua, a key subsidiary of Sichuan Changhong, focuses on ICT products, solutions, and digital intelligent comprehensive services, reporting a revenue of HKD 21.169 billion in the first half of the year, a year-on-year increase of 9.8%, and a net profit of HKD 181 million, up 10.2% [4]. - Since its restructuring and listing in 2013, Changhong Jiahua's stock liquidity, trading volume, and share price have remained sluggish, leading to a decision to privatize to reduce listing-related costs and explore new development opportunities [4][5]. - The privatization aligns with broader trends among state-owned enterprises, as several have completed similar privatizations of their Hong Kong-listed subsidiaries in recent years [6].