E-STAR CM (06668) is selling 100% equity of Changzhou Business Management.

E-STAR CM (06668) announced that currently Changzhou Shangguan Management is the lessee under the lease agreement signed with Changzhou Xingshengbao for the property. In order to change the operating model of the property from full lease service mode to brand and management output service mode, on March 9, 2026 (after the trading hours of the Stock Exchange), Nanjing Xingheng entered into a share transfer agreement with the buyer, agreeing to sell 100% equity of Changzhou Shangguan to the buyer for RMB 5.5 million. On the same day, Changzhou Shangguan and Nanjing Xingheng entered into a cooperation agreement regarding the property, where Nanjing Xingheng will provide brand and management output services to Changzhou Shangguan after the delivery. After the delivery, Changzhou Shangguan will become an indirectly non-wholly-owned company of Mr. Huang, thus becoming a connected person of the Company under the Listing Rules. This cooperation will be carried out within the existing new commercial property operation service framework agreement and its annual limit. The property is located in the commercial property of Wujin Hutang Xinghe COCO City in Changzhou, which is the subject of the lease agreement. Currently, Changzhou Shangguan operates the property in a full lease service mode. Under the lease agreement, Changzhou Shangguan leases the property to Changzhou Xingshengbao with a fixed rent arrangement (annual growth of approximately 3%), and then subleases the property to tenants, responsible for daily operations and management, and bears related leasing and operational risks. The Board of Directors believes that the change in arrangement through the sale and cooperation agreement will enable the Group to avoid significant disruptions to tenants and operations; reduce the Group's fixed rental obligations and leasing risks related to the property; and transition to a brand and management output service mode with lower risks. This will enhance the Group's financial flexibility and align with the Group's long-term strategy. The proceeds from the sale will be used for the Group's general operating funds.