Core Viewpoint - Dalian City Real Estate Co., Ltd. plans to repurchase shares at HKD 0.62 per share and suggests delisting from the stock exchange, with a privatization proposal aimed at optimizing governance and enhancing management efficiency [1][2]. Group 1: Company Actions - Dalian City Real Estate will repurchase and cancel 4.73 billion shares, requiring approximately HKD 2.933 billion in funding [1]. - Dalian City Holdings, which owns 64.18% of Dalian City Real Estate, along with its subsidiary, holds a combined 66.76% stake [1]. - The company was suspended from trading on July 18 due to insider information and saw its stock price rise over 40% upon resumption of trading [1]. Group 2: Financial Performance - Since 2020, the net profit attributable to the parent company has declined for five consecutive years, with a projected net loss of CNY 294 million in 2024 [2]. - Despite the losses, the investment property segment has provided stable cash flow, with cash and cash equivalents covering short-term debt more than twice [2]. Group 3: Industry Context - The real estate sector is experiencing cyclical fluctuations, impacting market performance and liquidity for companies like Dalian City Real Estate [2]. - Other real estate firms, such as Huayuan Real Estate and Shouchuang Real Estate, have also opted for privatization or delisting in response to similar challenges [3]. - The reasons for privatization include poor performance affecting listed companies, low stock prices making delisting costs manageable, and the burden of fixed costs like annual audits [3].