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Joy City Property is set to withdraw from the Hong Kong Stock Exchange tomorrow following its controlling shareholder, Grandjoy Holdings Group, repurchasing and canceling shares held by other investors through a private agreement, according to the commercial real estate division of a state-owned food processing conglomerate.
Since its IPO in 2013, Joy City will officially delist at the end of trading on November 27, as announced by the Hong Kong-based company. In late July, Joy City disclosed that Grandjoy Holdings—another subsidiary of the parent company and owner of 64% of Joy City—would execute a share buyback program valued at approximately HKD 2.9 billion (around USD 373 million). After the privatization completes, Grandjoy Holdings will own nearly the entire company.
The fluctuation in Joy City’s market performance over recent years, influenced by the cyclical nature of the real estate industry, has impacted its liquidity, according to Grandjoy Holdings based in Shenzhen. The move to privatize is a strategic step to better align with market dynamics, enhance corporate governance, and consolidate ownership and organizational structures. Once finalized, Grandjoy Holdings intends to increase its equity stake, which is expected to improve the net profit attributable to the parent.
In 2019, the real estate segment of the parent conglomerate underwent a significant restructuring. The mainland-listed Grandjoy Holdings acquired a 64% stake in Joy City through a share issuance, enabling the parent company based in Beijing to establish a presence in both the mainland and Hong Kong markets. Following this privatization, the parent’s real estate platform will be streamlined to include only Grandjoy Holdings.
Joy City primarily focuses on developing, operating, and managing urban complexes under the “Joy City” brand. Last year, it reported a net profit of CNY 800 million (approximately USD 113 million) on revenue of CNY 19.8 billion (around USD 2.8 billion). The company’s total assets amounted to CNY 106.8 billion, with liabilities totaling CNY 73.6 billion.
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