JOY CITY PPT (00207) plans to arrange a share repurchase through an agreement and suggests resuming trading on August 1st.

JOY CITY PPT (00207) announced on July 31, 2025, that the Board of Directors has proposed to plan shareholders to conduct a share buyback in accordance with Article 99 of the Company Law through an agreement arrangement. Upon meeting or exemption (if applicable) conditions and the plan taking effect, all plan shares will be cancelled in exchange for a cash cancellation price of HK$0.62 per plan share. The cash cancellation price of HK$0.62 per plan share represents a premium of approximately 67.57% over the closing price of HK$0.370 per share reported on the Stock Exchange of Hong Kong on July 17, 2025. Shares held by the controlling shareholders will not constitute plan shares and will not be cancelled. After the plan takes effect, the company's shares will be held by Grandjoy Holdings Group Holding Group and DeMa Holding Group in approximately 96.13% and 3.87% respectively, and the shares will be delisted from the Stock Exchange. After the plan takes effect, all plan shares will be cancelled, and the shares related to the plan shares will no longer serve as ownership documents or certificates. The company will immediately apply to the Stock Exchange for the cancellation of the listing status of the shares on the Stock Exchange after the plan takes effect pursuant to Rule 6.15(2) of the Listing Rules. Due to the control of the company by the shareholders of A-share listed companies (i.e. Grandjoy Holdings Group Holding Group), the current structure has added complexity to corporate governance and hindered decision-making efficiency. The proposal aims to streamline the company's governance framework, corporate structure, and equity to enhance management efficiency. After the plan takes effect, the company will apply to the Stock Exchange for the cancellation of the listing status of the shares on the Stock Exchange. Therefore, business strategies, major investments, and capital operations will no longer be subject to approval by the Board of Directors and/or shareholders at shareholders' meetings under the Listing Rules. This will shorten decision-making cycles, improve operational efficiency, and reduce related costs. Over the past few years, the company's stock price has been at a discount to the net asset value per share, with overall low liquidity, limiting the company's ability to raise funds from the capital market. Given the challenging and complex market environment, the company's listing status is unable to provide sufficient overseas financing support and is unlikely to see substantial improvement in the foreseeable future. Given the current market conditions and the challenges facing the Hong Kong real estate industry, the proposed cancellation price offers an attractive premium over the market price, enabling plan shareholders to realize their investments in the company at an appealing premium over the current market price. Due to the limited trading liquidity of the shares, investors may find it difficult to sell on the open market at favorable prices, and may face discounts on exit values due to insufficient liquidity. The proposal provides an attractive exit opportunity for plan shareholders without having to suffer from illiquid discounts. The company has applied to the Stock Exchange to resume trading of its shares on the Stock Exchange from 9:00 a.m. on August 1, 2025.