E-STAR CM (06668) has announced that Changzhou Commercial Management currently serves as the lessee under a lease agreement for a property with Changzhou Xingshengbao. To transition the property's operational model from a full leasing service to a brand and management output service model, Nanjing Xingheng entered into a share transfer agreement with a buyer on March 9, 2026 (after trading hours on the Stock Exchange). Nanjing Xingheng agreed to sell 100% of its equity in Changzhou Commercial Management to the buyer for a consideration of RMB 5.5 million. On the same day, Changzhou Commercial Management and Nanjing Xingheng signed a cooperation agreement for the property, under which Nanjing Xingheng will provide brand and management output services to Changzhou Commercial Management post-completion of the transaction. Following the completion, Changzhou Commercial Management will become an indirectly non-wholly owned company of Mr. Huang, thus rendering it a connected person of the company under the Listing Rules. The cooperation will be conducted under the existing New Commercial Property Operation Service Framework Agreement and its annual caps. The property in question is a commercial property located in Changzhou Wujin Hutang Xinghe COCO City, which is the subject of the lease agreement. Changzhou Commercial Management currently operates the property under a full leasing service model. Under the lease agreement, Changzhou Commercial Management leases the property from Changzhou Xingshengbao under a fixed rental arrangement (with an annual increase of approximately 3%), sub-leases it to tenants, and is responsible for daily operations and management, bearing associated leasing and operational risks. The Board believes that since the parties to the lease agreement will remain Changzhou Commercial Management and Changzhou Xingshengbao, the restructuring through the disposal and the cooperation agreement will enable the Group to avoid significant disruption to tenants and operations; reduce the Group's fixed rental obligations and leasing risks related to the property; and shift to a lower-risk brand and management output service model. This will enhance the Group's financial flexibility and align with its long-term strategy. Proceeds from the disposal will be used for the Group's general working capital.