Xingsheng Business (06668.HK) Sells 100% Equity of Changzhou Commercial Management for 5.5 million yuan

Gelonghui, March 9 — Star Sheng Business (06668.HK) announced that Changzhou Commercial Management is currently the lessee under the lease agreement with Changzhou Xing Sheng Bao for this property. To promote a shift in the operating model of the property from a full-lease service to a brand and management output service model, on March 9, 2026, Nanjing Xing Heng entered into an equity transfer agreement with the buyer. Under this agreement, Nanjing Xing Heng agrees to sell 100% of the equity of Changzhou Commercial Management to the buyer for RMB 5.5 million.

After the completion of the transaction, Changzhou Commercial Management will no longer be an affiliated company of the Group, and its financial performance will no longer be consolidated into the Group’s financial statements.

Currently, Changzhou Commercial Management operates the property under a full-lease service model. According to the lease agreement, Changzhou Commercial Management leases the property from Changzhou Xing Sheng Bao at a fixed rent (with an annual increase of about 3%), then subleases the property to tenants and is responsible for daily operations and management, bearing related leasing and operational risks.

The board believes that since the lease agreement parties will continue to be Changzhou Commercial Management and Changzhou Xing Sheng Bao, the changes through the sale and the cooperation agreement will allow the Group to avoid significant disruptions to tenants and operations; reduce the Group’s fixed rent 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 the Group’s long-term strategy. The proceeds from the sale will be used for the Group’s general operating funds.