E-Star Commercial seeks shareholder nod for connected transaction renewals

E-Star Commercial Management Company Limited announced an extraordinary general meeting (EGM) on January 15, 2026, to seek shareholder approval for the renewal of three continuing connected transactions with its controlling shareholder, Mr. Huang. These agreements, effective from January 1, 2026, to December 31, 2028, include the new commercial property operational services framework agreement, the new tenant management services framework agreement, and the new sublease framework agreement. The board recommends independent shareholders vote in favor, stating the terms are fair and reasonable and in the company's best interests.

The proposed annual caps for these agreements show expected increases over the three-year period. For commercial property operational services, the total cap is RMB209,256,000 for 2026, RMB268,863,000 for 2027, and RMB332,203,000 for 2028. For tenant management services and rental income, the total caps are RMB33,246,000 for 2026, RMB50,925,000 for 2027, and RMB71,854,000 for 2028. The sublease agreement’s profit compensation to be received by the group is projected at RMB79,069,000 for 2026, RMB86,588,000 for 2027, and RMB124,782,000 for 2028.

Mr. Huang, who indirectly holds approximately 73.89% of the company's issued share capital, and his associates, will abstain from voting on the resolutions. The independent board committee, along with Lego Corporate Finance Limited as independent financial adviser, supports the transactions, citing their alignment with market conditions and the group’s business strategy for growth and expansion.