Core Viewpoint - Sichuan Changhong announced that its subsidiary, Changhong Jiahua, will be privatized by its controlling shareholder, Changhong Holdings Group, through its wholly-owned subsidiary, Hongtu Investment, leading to the delisting of Changhong Jiahua's ordinary shares from the Hong Kong Stock Exchange [1] Group 1: Privatization Details - The privatization plan involves acquiring the remaining 580 million ordinary shares of Changhong Jiahua, which represent approximately 39.87% of the total ordinary shares, at a price of HKD 1.223 per share, totaling HKD 709 million [1] - The reason for privatization is attributed to Changhong Jiahua's stock price being consistently below its net asset value, making it difficult to leverage the Hong Kong stock platform for capital operations [1] Group 2: Financial Performance - For the fiscal year 2024, Changhong Jiahua reported a revenue of HKD 39.986 billion, reflecting a year-on-year growth of 7.58%, and a net profit of HKD 379 million, up 5.19% [2] - In the first half of 2025, the company achieved a revenue of HKD 21.169 billion, marking a year-on-year increase of 9.76%, with a net profit attributable to shareholders of HKD 181 million, a growth of 10.16% [2] - The ICT enterprise products have been identified as the core growth driver, generating revenue of HKD 8.378 billion in the first half of 2025, a significant increase of 23.67%, while the revenue from ICT consumer products slightly declined to HKD 8.471 billion [2] Group 3: Market Reaction - Following the announcement of the privatization plan, Changhong Jiahua's stock price opened 22.83% higher at HKD 1.13 per share on September 23, with a market capitalization reaching HKD 16.44 billion [2] - The acquisition price represents a premium of 32.93% compared to the last trading price of HKD 0.92 per share before the suspension [2]