Casablanca Group Limited provided details regarding recent developments in its non-wholly-owned subsidiary, Casa Living. According to the announcement, Beijing East Jiahe transferred 13% and 9% of its equity interest in Casa Living to Hangzhou Gaoshi Enterprise Management Partnership (Limited Partnership) and Liaoning Tangmei Textile Technology Co., Ltd., respectively. Subsequently, Hangzhou Gaoshi fulfilled the outstanding capital contribution of RMB1.95 million on 28 October 2025, completing all registered capital payment for Casa Living.
Casablanca Group continues to hold a 51% stake in Casa Living, which remains a consolidated subsidiary. A new cooperation agreement was signed on 6 February 2026 among Jollirich Investment, Hangzhou Dingyuan, Taishan Delicious Foodstuffs, and the new shareholders. Under this agreement, Casa Living’s registered capital remains at RMB15 million. The board of Casa Living comprises seven members, with four nominated by Jollirich Investment.
To promote a new cross-border e-commerce business project, Casa Living registered a branch company in Hangzhou and appointed a dedicated management team led by Mr. Li Quanzhi. Profit targets for the cross-border e-commerce project were set at RMB25 million, RMB40 million, and RMB80 million after tax for the fiscal years 2026, 2027, and 2028, respectively. Share options totaling 8,000,000 shares, subject to relevant listing requirements, are planned to incentivize this management team upon achieving these targets. The agreement also contemplates a possible acquisition of the remaining 49% equity interest in Casa Living by Casablanca Group, pending further negotiations and necessary approvals.
The board of directors stated that these arrangements will support the company’s goal to expand its new retail business with a focus on online channels and overseas markets, leveraging resources and managerial capabilities from the new shareholders. Shareholders and potential investors are advised to exercise caution when dealing in the company’s securities.