Core Viewpoint - Huazhong City is entering liquidation, with its stock price at 0.107 HKD and a market capitalization of only 1.2 billion HKD, a significant drop from its peak market value of over 30 billion HKD [1][3]. Group 1: Company Status - The Hong Kong High Court issued a liquidation order for Huazhong City on August 11, 2025, leading to the suspension of its stock trading [3]. - As of the end of 2024, the company's total liabilities reached 60.9 billion HKD, with a net profit loss of nearly 9 billion HKD attributed to the parent company last year [4][5]. Group 2: Debt Issues - The immediate trigger for Huazhong City's liquidation was the failure to repay a debt of 306 million USD due in April last year, leading to a petition for liquidation by creditors [5]. - Despite attempts at debt restructuring, the company was unable to reach an agreement with creditors, resulting in the court-ordered liquidation [5]. Group 3: Historical Context - Established in May 2002 and listed on the Hong Kong Stock Exchange in 2009, Huazhong City was once a prominent player in the commercial logistics and trading center development sector [7]. - The company faced operational challenges around 2021, including declining revenue and increased short-term debt, which became due in 2022 [7]. Group 4: Attempts at Recovery - In May 2022, a significant investment of 1.9095 billion HKD was made by a state-owned enterprise, which became the largest shareholder, but this did not prevent the company's decline [8]. - By December 2023, Huazhong City reported severe cash flow issues and debt defaults, indicating a deteriorating financial situation despite previous support from state-owned enterprises [8][9].