Hong Kong-based real estate company Dayue City Real Estate Co., Ltd. (Dayue City Real Estate) recently announced that it will be delisted from the Hong Kong stock market starting from 4 p.m. on November 27th. After 12 years of being listed, the company has officially withdrawn its listing status in Hong Kong. Some institutions believe that with the continuous decline in sales volume of Chinese real estate enterprises, the trend of companies delisting may continue, leading the industry to undergo a more thorough reshuffling and reorganization.
In the “Dayue City Real Estate Co., Ltd. Court Meeting and Special Shareholders’ Meeting Results Announcement” on November 17th, the company stated that the planned shareholders had approved the company’s privatization resolution during the court meeting held on that day. Once the plan is effective, the listing status of Dayue City Real Estate on the Hong Kong Stock Exchange is expected to be officially revoked on November 27th.
As early as July 31st this year, Dayue City Real Estate’s parent company, Dayue City Holdings Group Co., Ltd., indicated in its “Announcement on the Agreeable Repurchase of Shares by its Subsidiary Dayue City Real Estate Co., Ltd. and Application for Delisting its Listing Status from the Hong Kong Stock Exchange” that the subsidiary company would repurchase shares through agreement arrangements and delist. The offering price was set at approximately HK$0.62 in cash per planned share, totaling around HK$2.932 billion.
The announcement stated: “Upon the effectiveness of the agreement arrangements, Dayue City Real Estate will apply to the Hong Kong Stock Exchange for the delisting of its listing status.”
The reason for Dayue City Real Estate’s delisting is believed to be primarily due to the company’s poor operation.
According to the Chongqing Business Daily, financial data shows that Dayue City has reported consecutive losses for three years, with the net profit attributable to shareholders in 2022, 2023, and 2024 being losses of RMB 2.883 billion, RMB 1.465 billion, and RMB 2.977 billion, respectively, totaling a cumulative loss of RMB 7.325 billion.
The company’s financial report for the first half of this year indicated total operating income of RMB 8.124 billion, a 5.8% year-on-year decrease, a net profit of RMB 105 million, a 26.6% year-on-year decrease, and a post-tax loss of approximately RMB 140 million due to fair value changes of investment properties and exchange rate fluctuations. The core net profit was RMB 2.44 billion, a 25.1% year-on-year increase. Dayue City Real Estate’s total rental income from investment properties and related services was about RMB 2.038 billion, a 2.5% decrease year-on-year.
Furthermore, as reported by the Southern Metropolis Daily on November 19th, Dayue City Real Estate’s parent company, Dayue City Holdings, incurred accumulated losses exceeding RMB 7 billion from 2022 to 2024. In the third quarter of 2025, the company’s operating income reached RMB 5.42 billion, a 23.2% year-on-year increase; however, the net profit attributable to shareholders turned from a loss of RMB 223 million in the same period last year to a loss of RMB 642 million. As of the end of the third quarter, the company’s total assets were RMB 167.278 billion, a 6.3% decrease from the end of the previous year, and the net assets attributable to shareholders were RMB 10.133 billion, a 4.4% decrease from the end of the previous year.
It’s not just Dayue City Real Estate; many real estate companies are choosing to delist in the face of operational pressures. According to statistics from Keckray, in 2023, Xingli Holdings became the first listed real estate company to delist, marking the beginning of the trend. Over the past three years, approximately 23 listed real estate companies in A-shares and Hong Kong stocks have exited the capital market. Since 2021, seven real estate companies have chosen to “privatize and delist.” In September 2021, Shoucang Real Estate became the first real estate company to choose “privatization and delisting,” followed by China Hongta Development under China Jinmao, Huafa Property under Huafa Group, Shoucang Juda under Shoucang Group, and Rongxin Service under Rongxin China all subsequently announced privatization and delisting. On October 23rd this year, one of the 16 key real estate SOEs recognized by the State-owned Assets Supervision and Administration Commission of the State Council, Wugang Real Estate, officially announced its privatization and delisting.
In response to this, First Financial quoted Keckray’s analysis saying that the privatization and delisting of real estate enterprises and their subsidiaries is mainly due to significant market and operational pressures. Limited stock liquidity makes it challenging for shareholders to sell large quantities of shares without affecting the price. Loss of financing functions and prolonged low stock prices constrain the ability to raise capital from the capital market. The pressures of continuous losses and debt crisis also force real estate companies to consider privatization and delisting. Privatization helps companies implement long-term strategies and enhance business flexibility. Additionally, in the current deep adjustment period of the real estate industry and the complex and volatile market environment, real estate companies’ sales have been declining year after year, making privatization a necessary phenomenon during a profound industry adjustment period.
Keckray believes that in the next 2 to 3 years, this trend may continue, and the industry will undergo more thorough reshuffling and reorganization.
Public information shows that Dayue City Holdings Group Co., Ltd. was established on October 8, 1993, with its headquarters in Shenzhen. It is the sole real estate investment and management platform under the central SOE COFCO Group, belonging to a Sino-foreign joint-stock listed company. COFCO Group’s real estate platform also includes Dayue City Holdings, a company listed on A shares, with Dayue City Real Estate being a subsidiary of Dayue City Holdings.
A consolidated subsidiary refers to the practice where the parent company includes the financial statements of all the subsidiaries it controls in its consolidated financial statements to reflect the financial position and operating results of the entire group. This practice usually occurs when the parent company has control over the subsidiary companies, meaning that the parent company can determine the financial and operating policies of the subsidiaries.
Privatization refers to an acquisition activity initiated by the major shareholders of a listed company with the aim of repurchasing all the shares held by minority shareholders, revoking the company’s listing status, and transforming it into a private company owned by the major shareholders. This process eliminates the need for regular disclosures as required by the Securities and Exchange Commission, offering enhanced governance flexibility.