Core Viewpoint - The judicial auction of the Shenzhen Huating Plaza project is set to start on September 9, with a starting price of approximately RMB 30.53 billion, reflecting a significant decrease from its previous valuation and highlighting the ongoing financial struggles of Huating International [2][9]. Group 1: Auction Details - The starting price for the auction is set at approximately RMB 30.53 billion, down from a market value of about RMB 43.61 billion, indicating a discount of 30% [2]. - This marks the third time Huating Plaza has been put up for auction, with the starting price reduced by over RMB 2.5 billion compared to three years ago [2][9]. - The auction has garnered attention from over 10,800 individuals, but no bidders have registered as of the announcement date [2]. Group 2: Company Background and Financial Struggles - Huating Plaza was initially envisioned as a high-end shopping center, with a budget of RMB 4 billion, but has faced numerous delays and operational challenges since its inception [3][4]. - The project has been plagued by financial difficulties, with Huating International reporting a cumulative loss of RMB 44.44 billion over five years, and continuous losses since 2019 [12][13]. - The company has been unable to meet its debt obligations, leading to a lawsuit from the bank and the subsequent court-ordered seizure of Huating Plaza [7][11]. Group 3: Strategic Shifts and Future Outlook - In an attempt to alleviate financial pressure, Huating International has been exploring a strategic shift towards the semiconductor industry, although this transition has not yielded the expected results [13][16]. - The company's semiconductor business has consistently underperformed, with revenues falling short of targets, contributing to ongoing financial instability [17]. - The potential sale of Huating Plaza could trigger mandatory delisting risks for Huating International, as it represents a significant portion of the company's revenue [11][12].