Hong Kong-listed E-Star Commercial (06668) reported largely stable first-half 2026 results, with a slight revenue contraction and resilient margins, while maintaining a high dividend payout.

Key Financials (six months ended 30 June 2026) • Revenue: RMB 280.48 million, down 1.3% year on year. • Gross profit: RMB 142.16 million, easing 4.4%; gross margin slipped 1.6 ppt to 50.7%. • Profit attributable to owners: RMB 85.07 million, down 2.1%. • Basic EPS: RMB 8.40 cents versus RMB 8.58 cents in 1H25. • Interim dividend: HK 8.0 cents per share; payout ratio 82.9%.

Segment Performance • Entrusted management services contributed RMB 174.31 million (62.1% of total), falling 6.1% on operational adjustments at core projects. • Brand & management output services generated RMB 33.65 million (12.0%), down 2.3% after one project exit offset a model shift at another site. • Sublease services rose 13.2% to RMB 72.53 million (25.9%) on incremental income from the newly launched Shenzhen Guangming Galaxy COCO City, partly diluted by a model change at Changzhou Wujin Hutang Galaxy COCO City. Segment gross margin narrowed to 22.1% (-2.4 ppt) due to rent-free periods for new tenants.

Cost and Expenses • Service costs increased 2.0% to RMB 138.32 million, reflecting higher outlays for new sublease projects, partly mitigated by ongoing cost-control measures. • Selling expenses rose 5.2% to RMB 7.02 million, tied to marketing for newly opened assets. • Administrative expenses fell 12.8% to RMB 22.99 million as organisational efficiencies were realised. • Finance costs were broadly stable at RMB 17.78 million, mainly lease-related interest.

Balance-Sheet Highlights • Cash, short-term deposits, debt instruments and FVTPL investments totalled RMB 1.36 billion, up 1.0% from end-2025. • No bank loans or pledged assets; gearing ratio steady at 44.4%. • Trade and other payables declined 13.7% to RMB 238.99 million, while current trade and other receivables trimmed 1.4% to RMB 35.41 million. • Investment properties stood at RMB 799.49 million, little changed from year-end.

Operational Metrics • Network: 51 contracted projects across 18 Chinese cities, with contracted GFA of 2.39 million sq.m.; 26 malls in operation (1.48 million sq.m.). • Third-party projects represent 41.8% of contracted GFA. • Portfolio occupancy averaged 92.8% (flat year on year). • Revenue concentration: 79.8% derived from Greater Bay Area, led by Shenzhen (72.2%).

Strategic Focus Management has designated 2026 as the “Year of Lean Management,” targeting enhanced operational efficiency, asset revitalisation, disciplined regional expansion, and ESG integration. Two openings—phase II Shenzhen Galaxy WORLD • COCO Park and Shenzhen Longgang Galaxy COCO City—are scheduled for 2H26.

Post-Balance Sheet No material subsequent events were noted.

Dividend Timetable The register of members closes 27–30 Nov 2026; payment is slated for around 18 Dec 2026.