E-STAR Commercial Management Company Limited (E-STAR CM, 06668) reported a marginally softer first half for the six months to 30 June 2026, as revenue edged down 1.3% year on year (YoY) to RMB 280.48 million.

Revenue mix shifted slightly: • Entrusted management services contributed 62.1% of turnover at RMB 174.31 million, down 6.1% YoY, reflecting operational adjustments at core projects aimed at long-term optimisation. • Brand & management output services generated RMB 33.65 million (-2.3% YoY), following the exit of Zhongshan Tianyi Galaxy COCO City and the conversion of Changzhou Wujin Hutang Galaxy COCO City from sub-lease to asset-light management. • Sub-lease services rose 13.2% to RMB 72.53 million, buoyed by the late-2025 launch of Shenzhen Guangming Galaxy COCO City.

Cost of services increased 2.0% to RMB 138.32 million, compressing gross profit by 4.4% to RMB 142.16 million. Group gross margin eased 1.6ppt to 50.7%, reflecting a higher contribution from lower-margin sub-lease projects.

Selling expenses climbed 5.2% to RMB 7.02 million on marketing for new projects, while administrative expenses fell 12.8% to RMB 22.99 million after organisational streamlining. Finance costs were stable at RMB 17.78 million.

Net profit attributable to shareholders slipped 2.1% to RMB 85.07 million; group profit totalled RMB 84.35 million. The board declared an interim dividend of HK 8.0 cents per share (c.HK$81.16 million), payable on or around 18 December 2026 to shareholders on record 30 November 2026.

Balance-sheet highlights: • Cash, short-term deposits, debt instruments and FVTPL investments reached RMB 1.36 billion, up 1.0% from end-2025. • No interest-bearing bank loans; gearing ratio held steady at 44.4%. • Capital commitments stood at RMB 19.35 million. • Unutilised IPO proceeds totalled RMB 248.90 million, earmarked mainly for sub-lease project capex and minority stakes in project companies by end-2028.

Operational metrics: • Services covered 51 commercial projects (2.40 million sq m contracted GFA) across 18 Chinese cities, with third-party owners accounting for 41.8% of area. • Average shopping-centre occupancy remained high at 92.8%; opened GFA stood at 1.48 million sq m. • Operating cash flow amounted to RMB 50.61 million; net investing inflow was RMB 103.19 million, aided by short-term deposit maturities.

Governance updates include the resignation of Executive Director Ma Chaoqun and Non-executive Director Liu Jun on 31 March 2026, with Ms Ou Qunping joining as Non-executive Director and committee member the same day. The group reported no post-period material events.

Management’s second-half agenda centres on “Year of Lean Management” initiatives: enhancing efficiency, revitalising core assets, launching new projects (notably Shenzhen Galaxy WORLD • COCO Park Phase II and Shenzhen Longgang Galaxy COCO City), accelerating digitalisation via a new ERP roll-out, and advancing ESG and regional expansion strategies.