Hong Kong – 9 March 2026 – E-Star Commercial Management Company Limited (E-Star CM, 06668 HK) announced that its indirect wholly owned subsidiary, Nanjing Xingheng, has agreed to sell 100% of Changzhou Galaxy Commercial Management Co., Ltd. (“Changzhou Commercial Management”) to Anlinshan Real Estate (Shenzhen) Co., Ltd., an entity indirectly controlled by E-Star CM’s controlling shareholder Mr. Huang, for RMB5.50 million.
The transaction will shift the operating model of Changzhou Wujin Hutang Galaxy COCO City from a fixed-rent sublease arrangement to a brand-and-management output services model. Concurrent with the equity transfer, Nanjing Xingheng and Changzhou Commercial Management signed a Cooperation Agreement under which E-Star CM will provide brand and management services to the property through 31 December 2028. These services fall within the scope and annual caps of the existing New Commercial Property Operational Services Framework Agreement.
Financially, Changzhou Commercial Management reported unaudited net assets of approximately RMB3.91 million as at 31 December 2025. Based on the consideration and estimated transaction costs of RMB0.08 million, E-Star CM expects to record an accounting gain of about RMB1.51 million on completion. The proceeds will be used for general working-capital purposes.
Following completion, Changzhou Commercial Management will cease to be a subsidiary of E-Star CM and its results will no longer be consolidated. The existing lease agreement between Changzhou Commercial Management and Changzhou Xingshengbao remains in force, removing related lease liabilities and rental obligations from E-Star CM’s balance sheet.
Under Hong Kong Listing Rules, the disposal is classified as a connected transaction with the highest applicable percentage ratio exceeding 0.1% but below 5%. It is therefore subject to reporting and announcement requirements only and is exempt from independent shareholders’ approval.
For reference, Changzhou Commercial Management generated revenue of RMB24.33 million, RMB23.67 million and RMB23.78 million in 2023, 2024 and 2025 respectively, with corresponding net profits after tax of RMB4.98 million, RMB4.35 million and RMB4.88 million.
The board states that the disposal reduces fixed rental commitments, lowers operational risk and enhances financial flexibility while maintaining service income through the new management-output arrangement.