香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容 而產生或因依賴該等內容而引致的任何損失承擔任何責任。 E-Star Commercial Management Company Limited 星盛商業管理股份有限公司 （於開曼群島註冊成立的有限公司） （股份代號：6668） 持續關連交易 持續關連交易 董事會宣佈，於2025年10月24日，本公司訂立(1)新商用物業運營服務框架協議； (2)新租戶管理服務框架協議；(3)新轉介銷售服務框架協議；(4)新總採購框架協議； 及(5)新整租框架協議（即該等協議），期限均為2026年1月1日至2028年12月31日。 上市規則的涵義 黃先生為本公司的控股股東，於本公告日期間接持有本公司已發行股本約73.89%。根 據上市規則，黃先生因而為本公司的關連人士。因此，根據上市規則第14A章，該等 協議各自項下的交易構成本公司的持續關連交易。 –1– (A) 獲豁免協議 根據上市規則計算，有關(1)新總採購框架協議；及(2)新轉介銷售服務框架協議 （即獲豁免協議）各自的 ...

Investment Rating - The report maintains an "Outperform" rating for the real estate industry [1]. Core Insights - The industry is transitioning into a stock era, with a focus on the renovation and enhancement of existing commercial properties, particularly in lower-tier markets where supply-demand dynamics are more favorable [6][60]. - The report highlights the successful case studies of CapitaLand and China Overseas Commercial REITs, which exemplify the full-cycle capital loop of acquisition, renovation, enhancement, and exit [3][14]. - The renovation of mature and acquired projects can significantly enhance their value, as demonstrated by the operational upgrades and tenant adjustments made by China Overseas since acquiring Nanhai Yifeng City [17][24]. - The report emphasizes the stability of rental income growth in lower-tier cities compared to first and second-tier cities, where competition is intensifying [3][60]. Summary by Sections Industry Transition - The new construction and completion of commercial properties have peaked, with the number of new shopping centers opening in 2024 expected to be the lowest in nearly a decade, indicating a shift from quantity growth to quality improvement [13][10]. - The proportion of reopened projects after renovation is increasing, with 21.79% of new openings in 2024 being renovated stock [13][9]. Case Studies - China Overseas Commercial REIT has shown a 22.82% compound annual growth rate in sales from 2020 to 2024, reflecting effective tenant adjustments and operational upgrades [17][24]. - CapitaLand's project in Changsha has maintained high operational efficiency, with a rental income growth of 13% post-renovation [40][44]. Market Dynamics - The report notes that lower-tier markets have a more favorable supply-demand balance, with less competition and stronger customer loyalty, leading to more stable operational expectations [3][60]. - The valuation of shopping centers in lower-tier cities is comparable to some second-tier cities, with examples like the Foshan project showing competitive pricing [69][70]. Investment Recommendations - The report suggests focusing on high-quality shopping center operators and related consumer infrastructure REITs, as they are expected to maintain high occupancy rates and stable sales [3][6]. - It highlights the potential for investment in companies like China Resources Land and New Town Holdings, which are well-positioned in the evolving market landscape [3][6].

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年9月30日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 星盛商業管理股份有限公司 (於開曼群島註冊成立的有限公司) 呈交日期: 2025年10月6日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 06668 | 說明 | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 1,014,516,000 | | | | 1,014,516,000 | | 增加 / 減少 (-) | | | | | | | | | 本月底結存 | | | 1,014,516,000 | | 0 | | 1,014,516,000 | 第 2 頁 共 10 頁 v 1.1.1 III.已發行股份及 ...

Core Viewpoint - The strategic partnership between Xing Sheng Commercial and Meituan Service Retail aims to enhance the digital transformation of physical retail spaces, leveraging previous successful pilot projects to create a new benchmark for online integration in shopping centers [2][4][10]. Group 1: Background and Rationale - The collaboration traces back to 2019, with years of successful pilot projects laying a solid foundation for this comprehensive strategic partnership [4]. - The shift in consumer behavior towards online platforms for information and purchasing decisions has accelerated the integration of online and offline business models in shopping malls [4][6]. Group 2: Strategic Focus Areas - The partnership will focus on three core areas to upgrade physical retail from "traffic operation" to "value operation": 1. Enhancing merchant sales through a comprehensive marketing matrix, involving deep participation of all categories of merchants in the Meituan ecosystem [8]. 2. Establishing a benchmark for digital construction by achieving membership and data interoperability, facilitating user acquisition and engagement [8]. 3. Improving merchant service capabilities through technology, addressing operational pain points with AI tools and providing digital business toolkits [8]. Group 3: Leadership Perspectives - Xing Sheng Commercial's CEO emphasizes the importance of digital transformation as a strategic priority, aiming to enhance the entire operational chain from "managing space" to "managing users" [10]. - Meituan's representative highlights the long-term cooperation as a foundation for sustainable development, marking a new starting point for mutual growth and innovation in the retail industry [12].

[Company Information](index=3&type=section&id=公司資料) This section provides an overview of Star Properties Commercial Management Co., Ltd.'s governance structure and fundamental corporate details [Board of Directors and Committees](index=3&type=section&id=董事會與委員會) This section lists the members of the Board of Directors, including executive, non-executive, and independent non-executive directors, along with the composition of its Audit, Remuneration, and Nomination Committees - Board members include **Huang Delin** (Chairman), **Chen Qunsheng** (CEO), **Ma Chaoqun** (Executive Director), **Liu Jun**, **Huang Dean** (Non-executive Directors), and **Zhang Jinghua**, **Guo Zengli**, **Wen Kailin** (Independent Non-executive Directors)[5](index=5&type=chunk) - The company has an Audit Committee (Wen Kailin as Chairman), a Remuneration Committee (Guo Zengli as Chairman), and a Nomination Committee (Huang Delin as Chairman)[5](index=5&type=chunk) [Company Basic Information](index=3&type=section&id=公司基本信息) This section provides essential company details such as its registered office, Hong Kong and China business locations, share registrar, principal bankers, legal counsel, and website - Company's registered office is in Cayman Islands, Hong Kong business location is in Wing On Centre, Sheung Wan, and main China business location is in Galaxy WORLD, Longgang District, Shenzhen[5](index=5&type=chunk) - Independent auditor is Deloitte Touche Tohmatsu, and principal bankers include Industrial and Commercial Bank of China, China Construction Bank, and Ping An Bank[5](index=5&type=chunk)[6](index=6&type=chunk) [Management Discussion and Analysis](index=4&type=section&id=管理層討論與分析) This section provides a comprehensive review of the Group's business operations, financial performance, strategic plans, and key developments for the reporting period [Overview](index=4&type=section&id=概覽) Star Properties Commercial Management Co., Ltd. is a leading commercial property operation service provider in the Greater Bay Area, managing 52 projects across 21 cities with a total contracted GFA of approximately 2.65 million square meters, and received multiple industry honors in H1 2025 - As of June 30, 2025, the Group provided services to 52 commercial property projects, covering 21 cities in China, with a total contracted GFA of approximately **2.65 million square meters**[7](index=7&type=chunk) - Approximately **45.8%** of the contracted GFA is developed or owned by independent third parties, including 27 operational retail commercial properties with a total operational GFA of approximately **1.65 million square meters**[7](index=7&type=chunk) - In H1 2025, the Group received multiple industry honors, including "Top 10 Commercial Real Estate Operators in China 2025" from China Index Academy[8](index=8&type=chunk) [Business Review](index=4&type=section&id=業務回顧) The Group, as a commercial property operation service provider, offers services through entrusted management, brand and management output, and master lease models, managing 52 projects with a total contracted GFA of 2.647 million square meters, primarily in the Greater Bay Area, and achieving an average occupancy rate of 92.5% for operational retail commercial properties - The Group provides market positioning, design and construction consulting, tenant solicitation, operation management, property leasing, and value-added services[10](index=10&type=chunk) - Entrusted management model offers high autonomy for ideal performance; brand and management output model has higher gross profit margin for rapid regional expansion; master lease service model maximizes revenue but carries higher risks[12](index=12&type=chunk)[14](index=14&type=chunk)[18](index=18&type=chunk) Contracted GFA and Number of Properties by Operation Model (As of June 30, 2025) | Operation Model | Number of Properties | Contracted GFA (thousand sq.m.) | | :--- | :--- | :--- | | Entrusted Management Services | 12 | 886 | | Brand and Management Output Services | 33 | 1,345 | | Master Lease Services | 7 | 416 | | **Total** | **52** | **2,647** | Contracted GFA and Revenue by Geographical Location (For the six months ended June 30, 2025) | Region | Number of Properties | Contracted GFA (sq.m.) | Revenue (RMB thousand) | Revenue Share (%) | | :--- | :--- | :--- | :--- | :--- | | Greater Bay Area | 32 | 1,500,000 | 212,938 | 74.9 | | Yangtze River Delta | 9 | 422,000 | 42,499 | 15.0 | | Other Regions | 10 | 725,000 | 28,792 | 10.1 | | **Total** | **52** | **2,647,000** | **284,229** | **100.0** | Average Occupancy Rate and Operational GFA of Operational Retail Commercial Properties (As of June 30, 2025) | Product Type | Average Occupancy Rate (%) | Operational Shopping Mall GFA (thousand sq.m.) | | :--- | :--- | :--- | | COCO Park | 93.9 | 494 | | COCO City and iCO | 90.9 | 576 | | Others | 93.7 | 235 | | **Total** | **92.5** | **1,305** | [Star Properties Commercial H2 2025 Work Plan](index=9&type=section&id=星盛商業2025年下半年工作計劃) In H2 2025, Star Properties Commercial will focus on "Cost-Efficiency Year" and "Focus Strategy," with core work revolving around enhancing asset value, strengthening digital intelligence capabilities, reinforcing cost awareness, and deepening regional expansion - Core work for H2 2025 focuses on enhancing asset value, improving digital intelligence capabilities, strengthening cost awareness, and deepening regional expansion[28](index=28&type=chunk) [Enhance Asset Value, Solidify Benchmark Status](index=9&type=section&id=提升資產價值，夯實標桿地位) The Group plans to continuously advance key project adjustments and brand optimization to consolidate benchmark status, adopt diversified tenant attraction strategies, strengthen operational revenue generation, optimize service systems, and strictly control the timely and quality opening of new projects - Key projects like Shenzhen Futian Galaxy COCO Park will solidify benchmark status through apparel upgrades, F&B and trendy play renovations, and partial transformations[28](index=28&type=chunk) - Adopt diversified tenant attraction strategies such as "strategic co-development," "first-entry brands," and "innovative brands," and implement "one-store-one-policy" solutions to improve occupancy rates and rental income[30](index=30&type=chunk) - Expand diversified revenue channels, develop and utilize commercial advertising spaces, venue rentals, value-added services, and engage in external cooperation for commercial consulting and training[31](index=31&type=chunk) - Three new projects, Shenzhen Guangming Galaxy COCO City, Shenzhen Galaxy WORLD•COCO Park Phase II, and Nanjing Galaxy COCO City, are planned to open in H2, with strict control over construction and preparation phases[33](index=33&type=chunk) [Enhance Digital Intelligence Capabilities, Drive Business Growth](index=11&type=section&id=提升數智能力，驅動業務增長) The Group will continue to optimize its smart commercial system, upgrade the B-side "Star Butler" mini-program, integrate financial and tenant attraction systems to build a leasing settlement (ERP) system, strengthen C-side marketing platforms, refine data mid-platform management, and deploy IoT sensors to improve operational efficiency and energy saving - B-side "Star Butler" mini-program will be upgraded, adding modules for key renovation node management, knowledge platform, and store operation guidance, enabling online and paperless merchant services[34](index=34&type=chunk) - Integrate financial management system, tenant attraction management system, etc., to build a leasing settlement (ERP) system, achieving integrated financial and business operations[34](index=34&type=chunk) - Refine data mid-platform management standards, introduce AI algorithms to optimize data applications, promote iterative upgrades of the BI data platform, and deploy IoT temperature and humidity sensors to save energy[35](index=35&type=chunk) [Strengthen Cost Awareness, Optimize Resource Allocation](index=12&type=section&id=強化成本意識，優化資源配置) The Group will strengthen cost awareness, meticulously manage costs during new project preparation, focus on energy saving and consumption reduction for operational projects, and deeply advance the "Baichuan Plan" to refine parking lot revenue management, optimize charging strategies, and smart equipment applications - Strengthen cost awareness during new project preparation, precisely plan capital investment, optimize costs, and avoid ineffective expenditures[36](index=36&type=chunk) - Operational projects will reduce energy consumption through air conditioning energy-saving renovations, optimized operating logic, strengthened equipment maintenance, and implementation of variable frequency technology[36](index=36&type=chunk) - Advance the "Baichuan Plan," refine parking lot revenue structure management, optimize charging strategies and smart equipment applications, reduce labor costs, and increase revenue[37](index=37&type=chunk) [Deepen Regional Cultivation and Expansion, Innovate Business for Efficiency](index=12&type=section&id=區域精耕拓局，業務創新增效) The Group will continue to follow the "14th Five-Year Plan" strategic direction, deeply cultivate the Greater Bay Area market, opportunistically develop the Yangtze River Delta region, steadily develop its core business, continuously advance standardized asset-light business, and explore new opportunities in community and non-standard commercial projects - Continue "14th Five-Year Plan" strategic direction, deepen, densify, and strengthen the Greater Bay Area, opportunistically develop the Yangtze River Delta, and formulate targeted expansion strategies[38](index=38&type=chunk) - Continuously advance standardized asset-light business, explore new opportunities in community and non-standard commercial projects, and promote diversified development of integrated projects[39](index=39&type=chunk) - Explore innovative asset-light business models, expand non-listed commercial full-process consulting services, phased split specialized service projects, and enhance business competitiveness[39](index=39&type=chunk) [Events After Reporting Period](index=12&type=section&id=報告期後事項) As of June 30, 2025, and up to the date of this report, no significant events have occurred that would materially affect the Group's operations and financial performance - As of June 30, 2025, and up to the date of this report, no events have occurred that would materially affect the Group's operations and financial performance[40](index=40&type=chunk) [Financial Review](index=13&type=section&id=財務回顧) For the six months ended June 30, 2025, the Group's revenue decreased by 9.4% to RMB 284.2 million, with service costs down 10.8%, gross profit down 8.2% but margin up to 52.3%, and profit for the period slightly down 0.5% to RMB 86.1 million, while trade receivables increased and payables decreased, and global offering proceeds were primarily used for master lease property leasing and renovation Revenue Overview (For the six months ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 284,229 | 313,780 | -9.4% | | Entrusted Management Service Revenue | 185,706 | 209,691 | -11.4% | | Brand and Management Output Service Revenue | 34,439 | 43,458 | -20.8% | | Master Lease Service Revenue | 64,084 | 60,631 | +5.7% | - Service costs decreased by **10.8%** year-on-year to **RMB 135.5 million**, primarily due to fewer entrusted management projects and refined operational cost reduction and efficiency improvement[43](index=43&type=chunk) Gross Profit and Gross Profit Margin (For the six months ended June 30) | Metric | 2025 (RMB thousand) | 2025 Gross Profit Margin (%) | 2024 (RMB thousand) | 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Total Gross Profit | 148,681 | 52.3 | 161,880 | 51.6 | | Entrusted Management Service Gross Profit | 107,144 | 57.7 | 121,503 | 57.9 | | Brand and Management Output Service Gross Profit | 25,835 | 75.0 | 32,675 | 75.2 | | Master Lease Service Gross Profit | 15,702 | 24.5 | 7,702 | 12.7 | | **Overall Gross Profit Margin Change** | | **+0.7 percentage points** | | | - Profit for the period was approximately **RMB 86.1 million**, a year-on-year decrease of **0.5%**; profit attributable to owners of the Company was approximately **RMB 86.9 million**, a year-on-year decrease of **2.5%**[55](index=55&type=chunk) - Trade and other receivables increased by **7.5%** to **RMB 47.3 million**, mainly due to increased engineering investment in pre-opening projects and differences in management service fee settlement cycles[56](index=56&type=chunk) - Trade and other payables decreased by **22.0%** to **RMB 223.2 million**, mainly due to payment of year-end bonuses accrued in the previous year and various payables[57](index=57&type=chunk) - Net proceeds from the global offering were approximately **RMB 841.8 million**, of which **RMB 471.8 million** had been utilized as of June 30, 2025, primarily for retail commercial property leasing fees and renovation under the master lease service model[65](index=65&type=chunk) [Number of Employees and Remuneration Policy](index=19&type=section&id=僱員數目及薪酬政策) As of June 30, 2025, the Group's total number of employees was 840, a decrease from 954 at the end of 2024, with remuneration based on qualifications, experience, job nature, performance, and market compensation, including various benefits and share-based payment expenses of RMB 981,000 in H1 2025 Total Number of Employees | Date | Total Number of Employees | | :--- | :--- | | June 30, 2025 | 840 | | December 31, 2024 | 954 | - Remuneration is based on qualifications, experience, job nature, performance, and market compensation, including cash performance bonuses, medical plans, insurance, retirement plans, share option schemes, and restricted share unit awards[67](index=67&type=chunk) - In H1 2025, employee costs included share-based payment expenses of approximately **RMB 981,000**, an increase from **RMB 402,000** in the same period of 2024[67](index=67&type=chunk) [Future Plans for Material Investments and Capital Assets](index=19&type=section&id=重大投資及資本資產之未來計劃) For the six months ended June 30, 2025, the Group had no specific plans for other material investments or acquisitions of major capital assets or other businesses, apart from the expansion plans disclosed in the prospectus - Apart from the expansion plans in the prospectus, the Group has no specific plans for material investments or acquisitions of major capital assets or other businesses[68](index=68&type=chunk) [Material Investments, Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=19&type=section&id=重大投資、收購及出售附屬公司、聯營公司及合營企業) For the six months ended June 30, 2025, the Group did not undertake any material investments, acquisitions, or disposals of subsidiaries, associates, and joint ventures - For the six months ended June 30, 2025, the Group had no material investments, material acquisitions, or disposals of subsidiaries, associates, and joint ventures[69](index=69&type=chunk) [Pledges of Assets](index=19&type=section&id=資產抵押) As of June 30, 2025, the Group had not pledged any assets - As of June 30, 2025, the Group had not pledged any assets[70](index=70&type=chunk) [Corporate Governance and Other Information](index=20&type=section&id=企業管治及其他資料) This section outlines the Company's adherence to corporate governance standards, directors' interests, share schemes, and dividend policies [Compliance with Corporate Governance Code and Listing Rules](index=20&type=section&id=遵守企業管治守則及上市規則) For the six months ended June 30, 2025, the Company's directors believe that good corporate governance principles have been applied, and the provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules have been complied with - The Company has applied good corporate governance principles and complied with the provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[71](index=71&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors](index=20&type=section&id=遵守董事進行證券交易的標準守則) The Company has adopted the Model Code for Securities Transactions by Directors, and all directors confirmed compliance for the six months ended June 30, 2025, with no instances of non-compliance by relevant employees found - All directors confirmed compliance with the Model Code for the six months ended June 30, 2025[72](index=72&type=chunk) - The Company found no instances of non-compliance by relevant employees with the Model Code[72](index=72&type=chunk) [Changes in Directors' Information](index=20&type=section&id=董事資料變動) For the six months ended June 30, 2025, and up to the date of this report, there were no changes in the Company's directors' information requiring disclosure under Listing Rule 13.51B(1) - For the six months ended June 30, 2025, and up to the date of this report, no changes in directors' information required disclosure under Listing Rule 13.51B(1)[73](index=73&type=chunk) [Review of Interim Report](index=20&type=section&id=審閱中期報告) The unaudited interim financial information for the six months ended June 30, 2025, has been reviewed by Deloitte Touche Tohmatsu and jointly reviewed by the Audit Committee and management, discussing matters such as accounting principles, internal controls, risk management, and financial reporting - The interim financial information has been reviewed by Deloitte Touche Tohmatsu and jointly reviewed by the Audit Committee and management[74](index=74&type=chunk) [Share Capital](index=20&type=section&id=股本) As of June 30, 2025, the Company's total issued share capital was 1,014,516,000 ordinary shares - As of June 30, 2025, the Company's total issued share capital was **1,014,516,000** ordinary shares[75](index=75&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=20&type=section&id=購買、出售或贖回本公司上市證券) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and the Company held no treasury shares - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[76](index=76&type=chunk) - As of June 30, 2025, and the date of this report, the Company held no treasury shares[77](index=77&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company or any Associated Corporation](index=21&type=section&id=董事於本公司或其任何相聯法團的股份、相關股份及債權證的權益及淡倉) As of June 30, 2025, the Company's directors and chief executive held interests in the Company's shares, with Mr. Huang Delin holding 14.66%, Mr. Huang Dean 0.18%, Mr. Chen Qunsheng 0.02%, Mr. Ma Chaoqun 0.01%, and Mr. Liu Jun 0.02% Directors' Interests in the Company's Shares (As of June 30, 2025) | Director's Name | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Huang Delin | Interest in controlled corporation/Settlor of discretionary trust/Beneficial owner | 148,682,000 (L) | 14.66% | | Mr. Huang Dean | Beneficial owner | 1,791,000 (L) | 0.18% | | Mr. Chen Qunsheng | Beneficial owner | 212,000 (L) | 0.02% | | Mr. Ma Chaoqun | Beneficial owner | 80,000 (L) | 0.01% | | Mr. Liu Jun | Beneficiary of trust | 200,000 (L) | 0.02% | [Interests and Short Positions of Persons Other Than Directors and Chief Executive in Shares and Underlying Shares](index=22&type=section&id=本公司董事及最高行政人員以外的人士於股份及相關股份的權益及淡倉) As of June 30, 2025, Mr. Huang Chulong and his controlled entities held significant interests in the Company's shares, with Mr. Huang Chulong holding a total of 73.89% and Gaoxing Investment Holdings Co., Ltd. holding 59.24% Interests of Persons Other Than Directors and Chief Executive in the Company's Shares (As of June 30, 2025) | Shareholder Name | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Huang | Settlor of discretionary trust/Interest in controlled corporation | 749,596,000 (L) | 73.89% | | TMF (Cayman) Ltd | Trustee | 601,000,000 (L) | 59.24% | | Long Harmony Holding Limited | Interest in controlled corporation | 601,000,000 (L) | 59.24% | | Gaoxing Investment Holdings Co., Ltd. | Beneficial owner | 601,000,000 (L) | 59.24% | | Derui Investment | Beneficial owner/Trustee | 147,303,000 (L) | 14.52% | [Share Award Scheme](index=22&type=section&id=股份獎勵計劃) The Company's controlling shareholder, Mr. Huang Chulong, adopted a share award scheme on April 17, 2023, to incentivize and reward eligible participants, funded by entrusted shares held by Derui Investment, with 54,800,000 award shares granted and 5,220,000 remaining unexercised as of June 30, 2025 - The Share Award Scheme was adopted by controlling shareholder Mr. Huang Chulong on April 17, 2023, to incentivize and reward eligible participants who have contributed to the Group[84](index=84&type=chunk) - The scheme does not involve the issuance of new shares and is funded by entrusted shares held by Derui Investment[85](index=85&type=chunk) Changes in Awarded Shares under Share Award Scheme (As of June 30, 2025) | Status | Number of Awarded Shares | | :--- | :--- | | Unexercised as at January 1, 2024 | 12,495,000 | | Forfeited during the period | (2,450,000) | | Unexercised as at June 30, 2024 | 10,045,000 | | Forfeited during the period | (560,000) | | Unexercised as at December 31, 2024 | 9,485,000 | | Forfeited during the period | (350,000) | | Exercised during the period | (1,112,000) | | Lapsed during the period | (2,803,000) | | **Unexercised as at June 30, 2025** | **5,220,000** | [Share Option Scheme](index=23&type=section&id=購股權計劃) The Company adopted a share option scheme on December 21, 2020, to incentivize and reward eligible participants, but as of June 30, 2025, no share options had been granted or remained unexercised, with 100,000,000 shares available for grant - The Share Option Scheme was adopted on December 21, 2020, to incentivize and reward eligible participants who have contributed to the Group's business[87](index=87&type=chunk) - As of June 30, 2025, the Company had not granted any share options under the Share Option Scheme, and no share options remained unexercised on that date[87](index=87&type=chunk) - As of June 30, 2025, the total number of share options available for grant under the Share Option Scheme was **100,000,000** shares, representing approximately **9.86%** of the issued share capital[87](index=87&type=chunk) [Restricted Share Unit ("RSU") Scheme ("RSU Scheme")](index=23&type=section&id=受限制股份單位（「受限制股份單位」）計劃（「受限制股份單位計劃」）) The Company adopted a Restricted Share Unit Scheme on November 4, 2021, to recognize and reward contributors, having cumulatively purchased 1,937,000 shares for the scheme as of June 30, 2025, but without granting any restricted share units - The Restricted Share Unit Scheme was adopted on November 4, 2021, to recognize and reward eligible participants who have contributed to the Group[88](index=88&type=chunk) - As of June 30, 2025, the Company had cumulatively purchased **1,937,000** shares for the scheme[88](index=88&type=chunk) - As of June 30, 2025, no restricted share units had been granted under the Restricted Share Unit Scheme[89](index=89&type=chunk) [Interim Dividend and Closure of Register of Members](index=23&type=section&id=中期股息及暫停辦理股份過戶登記手續) The Board declared an interim dividend of HKD 5.0 cents per ordinary share for the six months ended June 30, 2025, with the register of members to be closed from November 28 to December 1, 2025, and payment expected around December 19, 2025 Interim Dividend | Period | Dividend per Ordinary Share | | :--- | :--- | | For the six months ended June 30, 2025 | HKD 5.0 cents | | For the six months ended June 30, 2024 | HKD 4.8 cents | - The register of members will be closed from **November 28, 2025, to December 1, 2025**[90](index=90&type=chunk) - The proposed interim dividend is expected to be paid on or about **December 19, 2025**, to shareholders whose names appear on the register of members at the close of business on **December 1, 2025**[90](index=90&type=chunk) [Review Report on Condensed Consolidated Financial Statements](index=24&type=section&id=簡明綜合財務報表審閱報告) This section presents the independent auditor's review report on the condensed consolidated financial statements, including the scope and conclusion of their work [Introduction](index=24&type=section&id=緒言) Deloitte Touche Tohmatsu has reviewed Star Properties Commercial Management Co., Ltd.'s condensed consolidated financial statements for the six months ended June 30, 2025, prepared in accordance with HKAS 34 and Listing Rules, with the Board responsible for preparation and the auditor for conclusion based on the review - Deloitte Touche Tohmatsu has reviewed the condensed consolidated financial statements for the six months ended June 30, 2025[91](index=91&type=chunk) - The financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[91](index=91&type=chunk) [Scope of Review](index=24&type=section&id=審閱範圍) The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, primarily involving inquiries and analytical procedures, and as its scope is less than an audit, no audit opinion is expressed - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, primarily involving inquiries and analytical review procedures[92](index=92&type=chunk) - The scope of a review is less than an audit, therefore no audit opinion is expressed[92](index=92&type=chunk) [Conclusion](index=24&type=section&id=結論) Based on the review, the auditor found no matters that would lead them to believe the condensed consolidated financial statements are not prepared, in all material respects, in accordance with HKAS 34 - The auditor found no matters that would lead them to believe the condensed consolidated financial statements are not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34[93](index=93&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=25&type=section&id=簡明綜合損益及其他全面收益表) This section presents the Group's condensed consolidated statement of profit or loss and other comprehensive income for the reporting period [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=25&type=section&id=簡明綜合損益及其他全面收益表) For the six months ended June 30, 2025, the Group's revenue was RMB 284,229 thousand, a 9.4% year-on-year decrease, with gross profit at RMB 148,681 thousand (down 8.2%), and profit and total comprehensive income for the period at RMB 86,053 thousand (down 0.5%), resulting in basic earnings per share of RMB 8.58 cents Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 284,229 | 313,780 | | Service costs | (135,548) | (151,900) | | Gross profit | 148,681 | 161,880 | | Other income | 15,585 | 18,745 | | Selling expenses | (6,676) | (14,688) | | Administrative expenses | (26,346) | (31,752) | | Finance costs | (18,451) | (18,144) | | Profit before tax | 110,955 | 113,870 | | Income tax expense | (24,902) | (27,374) | | Profit and total comprehensive income for the period | 86,053 | 86,496 | | Profit for the period attributable to owners of the Company | 86,896 | 89,100 | | Basic earnings per share (RMB cents) | 8.58 | 8.80 | [Condensed Consolidated Statement of Financial Position](index=26&type=section&id=簡明綜合財務狀況表) This section presents the Group's condensed consolidated statement of financial position as of the reporting date [Condensed Consolidated Statement of Financial Position](index=26&type=section&id=簡明綜合財務狀況表) As of June 30, 2025, the Group's total assets less current liabilities were RMB 1,936,106 thousand, with non-current assets primarily investment properties, current assets showing increased short-term bank deposits and decreased cash, total equity at RMB 1,265,610 thousand, and non-current liabilities mainly lease liabilities Key Data from Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-current assets | 869,095 | 860,974 | | Current assets | 1,425,297 | 1,417,359 | | Current liabilities | 358,286 | 359,562 | | Net current assets | 1,067,011 | 1,057,797 | | Total assets less current liabilities | 1,936,106 | 1,918,771 | | Total equity | 1,265,610 | 1,255,684 | | Non-current liabilities | 670,496 | 663,087 | - Short-term bank deposits increased from **RMB 655,905 thousand** at the end of 2024 to **RMB 870,808 thousand** as of June 30, 2025[96](index=96&type=chunk) - Cash and cash equivalents decreased from **RMB 710,599 thousand** at the end of 2024 to **RMB 497,609 thousand** as of June 30, 2025[96](index=96&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=27&type=section&id=簡明綜合權益變動表) This section presents the Group's condensed consolidated statement of changes in equity for the reporting period [Condensed Consolidated Statement of Changes in Equity](index=27&type=section&id=簡明綜合權益變動表) For the six months ended June 30, 2025, equity attributable to owners of the Company increased from RMB 1,246,877 thousand to RMB 1,257,646 thousand, driven by RMB 86,896 thousand in profit for the period and RMB 981 thousand in share-based payment reserve, offset by RMB 77,108 thousand in dividend distribution Key Data from Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Metric | January 1, 2025 (RMB thousand) | June 30, 2025 (RMB thousand) | | :--- | :--- | :--- | | Equity attributable to owners of the Company | 1,246,877 | 1,257,646 | | Profit (loss) and total comprehensive income for the period | - | 86,896 | | Equity-settled share-based payments recognized | - | 981 | | Dividends distributed | - | (77,108) | - Statutory reserve increased from **RMB 109,880 thousand** at the beginning of the period to **RMB 117,228 thousand**[97](index=97&type=chunk) - Retained profits increased from **RMB 715,728 thousand** at the beginning of the period to **RMB 795,276 thousand**[97](index=97&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=28&type=section&id=簡明綜合現金流量表) This section presents the Group's condensed consolidated statement of cash flows for the reporting period [Condensed Consolidated Statement of Cash Flows](index=28&type=section&id=簡明綜合現金流量表) For the six months ended June 30, 2025, the Group's net cash generated from operating activities significantly decreased to RMB 38,384 thousand, while net cash used in investing activities was RMB 239,732 thousand, and cash and cash equivalents at period-end were RMB 497,609 thousand, representing a decrease of RMB 212,990 thousand from the beginning of the period Key Data from Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net cash generated from operating activities | 38,384 | 71,887 | | Net cash used in investing activities | (239,732) | (271,893) | | Net cash used in financing activities | (11,642) | (14,093) | | Net decrease in cash and cash equivalents | (212,990) | (214,099) | | Cash and cash equivalents at end of period | 497,609 | 332,815 | - Cash generated from operations decreased from **RMB 110,002 thousand** in 2024 to **RMB 78,746 thousand** in 2025[99](index=99&type=chunk) - Placement of short-term bank deposits decreased from **RMB 560,420 thousand** in 2024 to **RMB 333,794 thousand** in 2025[100](index=100&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=30&type=section&id=簡明綜合財務報表附註) This section provides detailed explanatory notes to the condensed consolidated financial statements, covering accounting policies, revenue, expenses, and other financial disclosures [Basis of Preparation](index=30&type=section&id=編製基準) The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and the applicable disclosure requirements of the Listing Rules - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the applicable disclosure requirements of the Listing Rules[101](index=101&type=chunk) [Principal Accounting Policies](index=30&type=section&id=主要會計政策) The condensed consolidated financial statements are prepared on a historical cost basis, with accounting policies consistent with the 2024 annual consolidated financial statements, and amendments to HKFRS accounting standards applied in this interim period had no significant impact on financial position and performance - The condensed consolidated financial statements are prepared on a historical cost basis, with accounting policies consistent with the 2024 annual consolidated financial statements[102](index=102&type=chunk) - Amendments to Hong Kong Financial Reporting Standards accounting standards were first applied in this interim period but had no significant impact on financial position and performance[103](index=103&type=chunk) [Revenue and Segment Information](index=31&type=section&id=收入及分部資料) The Group's revenue primarily derives from commercial property operation services in China, provided through entrusted management, brand and management output, and master lease models, with total revenue of RMB 284,229 thousand for the six months ended June 30, 2025, and all business and non-current assets located in mainland China Revenue from Commercial Property Operation Services by Operation Model (For the six months ended June 30) | Operation Model | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Entrusted Management Services | 185,706 | 209,691 | | Brand and Management Output Services | 34,439 | 43,458 | | Master Lease Services | 64,084 | 60,631 | | **Total** | **284,229** | **313,780** | Analysis of Revenue from Customer Contracts (For the six months ended June 30) | Revenue Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Market positioning, design and construction consulting and tenant solicitation services | 20,985 | 29,180 | | Operation management services | 182,235 | 198,323 | | Value-added services | 52,884 | 57,616 | | **Total** | **256,104** | **285,119** | - The Group has a single operating segment, with all business and non-current assets located in mainland China[110](index=110&type=chunk)[111](index=111&type=chunk) [Other Income](index=33&type=section&id=其他收入) For the six months ended June 30, 2025, the Group's other income was RMB 15,585 thousand, primarily including bank interest income, government subsidies, and compensation and penalties received from tenants Composition of Other Income (For the six months ended June 30) | Income Source | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank interest income | 14,393 | 17,547 | | Government subsidies | 455 | 603 | | Compensation and penalties received from tenants | 737 | 595 | | **Total** | **15,585** | **18,745** | [Net Impairment Losses Recognized Under Expected Credit Loss Model](index=34&type=section&id=預期信貸虧損模式項下確認的減值虧損淨額) For the six months ended June 30, 2025, the Group recognized net impairment losses of RMB 707 thousand under the expected credit loss model, a decrease from RMB 1,295 thousand in the same period last year, mainly due to changes in estimates for future recovery of trade receivables Net Impairment Losses Recognized Under Expected Credit Loss Model (For the six months ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net impairment losses on trade receivables | (707) | (1,295) | [Income Tax Expense](index=34&type=section&id=所得稅開支) For the six months ended June 30, 2025, the Group's income tax expense was RMB 24,902 thousand, a 9.0% year-on-year decrease, primarily due to reduced profit before tax, with mainland China entities subject to a 25% corporate income tax rate, and one entity in Qianhai enjoying a 15% preferential tax rate Composition of Income Tax Expense (For the six months ended June 30) | Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current tax | 29,268 | 38,532 | | Deferred tax | (4,366) | (11,158) | | **Total** | **24,902** | **27,374** | - Mainland China entities are subject to a **25%** corporate income tax rate, while one entity in Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone enjoys a **15%** preferential tax rate[118](index=118&type=chunk) [Profit for the Period](index=35&type=section&id=期內利潤) For the six months ended June 30, 2025, the Group's profit for the period was RMB 86,053 thousand, with total employee costs of RMB 89,719 thousand, including RMB 981 thousand in equity-settled share-based payments, and total depreciation expense of RMB 23,382 thousand Composition of Profit for the Period (For the six months ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Total employee costs | 89,719 | 99,022 | | Depreciation of property and equipment | 300 | 585 | | Depreciation of investment properties | 23,082 | 23,102 | | Total rental income from investment properties | (28,125) | (28,661) | | Direct operating expenses from investment properties | 27,405 | 27,615 | - Employee costs included equity-settled share-based payments of **RMB 981 thousand**, an increase from **RMB 402 thousand** in the same period last year[119](index=119&type=chunk) [Dividends](index=36&type=section&id=股息) The Board declared an interim dividend of HKD 5.0 cents per ordinary share for the six months ended June 30, 2025, totaling approximately HKD 50,726,000, following the payment of the 2024 final dividend of HKD 8.3 cents per ordinary share, totaling approximately RMB 77,108 thousand, on July 10, 2025 Dividends Recognized as Distributed (For the six months ended June 30) | Dividend Type | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | 2024 final dividend (HKD 8.3 cents per share) | 77,108 | - | | 2023 final dividend (HKD 13.0 cents per share) | - | 120,066 | - The Board declared an interim dividend of **HKD 5.0 cents** per ordinary share for the six months ended June 30, 2025, totaling approximately **HKD 50,726,000**[120](index=120&type=chunk) [Earnings Per Share](index=37&type=section&id=每股盈利) For the six months ended June 30, 2025, basic earnings per share attributable to owners of the Company were RMB 8.58 cents, lower than RMB 8.80 cents in the same period last year, calculated using a weighted average of 1,012,579 thousand ordinary shares Basic Earnings Per Share Calculation Data (For the six months ended June 30) | Metric | 2025 (RMB thousand/thousand shares) | 2024 (RMB thousand/thousand shares) | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company | 86,896 | 89,100 | | Weighted average number of ordinary shares | 1,012,579 | 1,012,635 | | **Basic earnings per share (RMB cents)** | **8.58** | **8.80** | - Diluted earnings per share are not presented as there are no outstanding potential ordinary shares[123](index=123&type=chunk) [Investment Properties](index=37&type=section&id=投資物業) In this interim period, the Group incurred leasehold improvement expenses of RMB 26,169 thousand for right-of-use assets under the master lease service model, which were capitalized as part of the initial cost of investment properties - In this interim period, the Group incurred leasehold improvement expenses of **RMB 26,169 thousand** for right-of-use assets under the master lease service model[124](index=124&type=chunk) - These expenses have been capitalized as part of the initial cost of investment properties[124](index=124&type=chunk) [Trade and Other Receivables](index=38&type=section&id=貿易及其他應收款項) As of June 30, 2025, the Group's total trade and other receivables amounted to RMB 72,868 thousand, with trade receivables primarily from customer contracts and operating leases, typically with a 10 to 30-day credit period, and overdue trade receivables of RMB 886 thousand not considered in default Trade and Other Receivables (As of June 30, 2025) | Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables | 25,985 | 23,961 | | Other receivables | 46,883 | 45,604 | | **Total** | **72,868** | **69,565** | Ageing Analysis of Trade Receivables (Net of allowance for credit losses, as of June 30, 2025) | Ageing | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 10 days | 15,597 | 15,129 | | 11 to 30 days | 391 | 453 | | 31 to 60 days | 2,946 | 207 | | 61 to 90 days | 374 | 367 | | Over 90 days | 1,262 | 2,390 | | **Total** | **20,570** | **18,546** | - As of June 30, 2025, trade receivables overdue by **90 days or more** amounted to **RMB 886 thousand**, but were not considered in default after assessment[127](index=127&type=chunk) [Trade and Other Payables](index=41&type=section&id=貿易及其他應付款項) As of June 30, 2025, the Group's total trade and other payables amounted to RMB 223,171 thousand, a decrease from RMB 286,286 thousand at the end of 2024, with trade payables typically having a 30 to 90-day credit period, and other payables primarily including amounts collected on behalf of tenants, deposits received, and leasehold improvement payables Trade and Other Payables (As of June 30, 2025) | Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 30,482 | 40,286 | | Other payables | 192,689 | 246,000 | | **Total** | **223,171** | **286,286** | Ageing Analysis of Trade Payables (As of June 30, 2025) | Ageing | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | 0 to 30 days | 30,479 | 40,283 | | Over 90 days | 3 | 3 | | **Total** | **30,482** | **40,286** | - Other payables primarily include amounts collected on behalf of tenants (**RMB 56,231 thousand**), deposits received (**RMB 58,509 thousand**), and leasehold improvement payables (**RMB 57,666 thousand**)[133](index=133&type=chunk) [Share Capital](index=42&type=section&id=股本) The Company's authorized share capital is 2,000,000,000 ordinary shares of HKD 0.01 each, with 1,014,516,000 shares issued and fully paid as of June 30, 2025, amounting to RMB 8,487 thousand, following the repurchase and cancellation of 761,000 ordinary shares in January 2024 Share Capital Details (As of June 30, 2025) | Category | Number of Shares | Share Capital (HKD thousand) | Share Capital (RMB thousand) | | :--- | :--- | :--- | :--- | | Authorized share capital | 2,000,000,000 | 20,000 | 16,755 | | Issued and fully paid share capital (June 30, 2025) | 1,014,516,000 | 10,145 | 8,487 | | Issued and fully paid share capital (January 1, 2024) | 1,016,807,000 | 10,168 | 8,506 | | Ordinary shares repurchased and cancelled in January 2024 | (761,000) | (8) | (5) | [Share Award Scheme](index=43&type=section&id=股份獎勵計劃) This note details the Company's Share Option Scheme, Restricted Share Unit Scheme, and the Share Award Scheme adopted by controlling shareholder Mr. Huang Chulong, with no options or units granted under the first two schemes as of June 30, 2025, while the Share Award Scheme granted 54,800,000 shares, with 5,220,000 remaining unexercised, and the Group recognized expenses of RMB 981 thousand for it - The Share Option Scheme was adopted on December 21, 2020, to incentivize and reward eligible participants, but no share options had been granted as of June 30, 2025[138](index=138&type=chunk)[141](index=141&type=chunk) - The Restricted Share Unit Scheme was adopted on November 4, 2021, to recognize and reward contributors; as of June 30, 2025, **1,937,000** shares had been cumulatively repurchased for the scheme, but no restricted share units had been granted[142](index=142&type=chunk)[144](index=144&type=chunk) - The Share Award Scheme granted **54,800,000** award shares on April 17, 2023, with **5,220,000** remaining unexercised as of June 30, 2025[146](index=146&type=chunk)[147](index=147&type=chunk) - The Group recognized expenses of **RMB 981 thousand** for the Share Award Scheme (2024: **RMB 402 thousand**)[150](index=150&type=chunk) [Capital Commitments](index=46&type=section&id=資本承擔) As of June 30, 2025, the Group's capital expenditure contracted but not provided for in the condensed consolidated financial statements for the purchase of property and equipment was RMB 32,178 thousand, a decrease from RMB 48,928 thousand at the end of 2024 Capital Expenditure (As of June 30, 2025) | Category | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Capital expenditure contracted but not provided for the purchase of property and equipment | 32,178 | 48,928 | [Related Party Transactions](index=47&type=section&id=關聯方交易) The Group has significant related party transactions with fellow subsidiaries and joint ventures under the common control of the ultimate controlling shareholder, Mr. Huang Chulong, with revenue from related parties totaling RMB 69,679 thousand and expenses RMB 5,701 thousand for the six months ended June 30, 2025, and total key management personnel remuneration of RMB 4,854 thousand Amounts Due from Related Parties (As of June 30, 2025) | Nature of Related Party | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Fellow subsidiaries | 8,774 | 6,091 | Amounts Due to Related Parties (As of June 30, 2025) | Nature of Related Party | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Fellow subsidiaries | 907 | 5,591 | Related Party Transactions (For the six months ended June 30) | Transaction Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue from related parties | 69,679 | 76,119 | | Expenses from related parties | 5,701 | 6,398 | | Revenue from joint ventures | 1,814 | 1,676 | Key Management Personnel Remuneration (For the six months ended June 30) | Remuneration Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Short-term benefits | 4,574 | 3,852 | | Equity-settled share-based payments | 121 | 63 | | Contributions to retirement benefit schemes | 159 | 109 | | **Total** | **4,854** | **4,024** |

Core Viewpoint - The commercial property operation industry faces challenges such as uneven consumer recovery in the first half of 2025, but Xing Sheng Commercial (6668.HK) has demonstrated resilience and growth potential through refined management and regional focus, as evidenced by its robust mid-year financial report [1][5]. Financial Performance - In the first half of 2025, Xing Sheng Commercial achieved revenue of approximately 284 million yuan, with 74.9% of this revenue coming from the Greater Bay Area, highlighting its leading position in regional development [3]. - The company reported a gross profit of approximately 149 million yuan, with an overall gross margin of about 52.3%, an increase of approximately 0.7 percentage points year-on-year, maintaining a high level within the industry [3]. - Management expenses decreased to 9.3%, down 0.8 percentage points year-on-year, contributing to a net profit attributable to shareholders of 87 million yuan [3]. Operational Highlights - As of June 30, 2025, Xing Sheng Commercial provided services to 52 commercial property projects across 21 cities in China, with a total contracted building area of approximately 2.65 million square meters [3]. - The average occupancy rate for the first half of 2025 reached 92.5%, with a vacancy rate of only 7.5%, significantly lower than the typical urban average of 13.8% [4]. - Same-store sales increased by 11.4% year-on-year, and same-store foot traffic grew by 4.4%, indicating a positive cycle of stable occupancy and rising sales [4]. Strategic Initiatives - The company has made significant strides in operational management, including the introduction of influential brands such as Hema Fresh and Calvin Klein, and renovations of key stores to enhance project attractiveness [4]. - Xing Sheng Commercial's long-term stable dividend policy provides a safety net for investors, with an interim dividend of 5.0 Hong Kong cents per share and cumulative cash dividends of 586 million Hong Kong dollars over five years [7]. Market Outlook - The company is well-positioned to benefit from the ongoing economic recovery in the Greater Bay Area, with expectations of new project openings in the second half of 2025 that will inject new vitality into its performance [8]. - The integration of digital and AI capabilities is a focus area for the company, aimed at enhancing operational efficiency and user experience, which may uncover new growth opportunities [9].

Core Viewpoint - Xing Sheng Commercial (6668.HK) demonstrates resilience through steady operations, cost reduction, and refined management, showcasing its growth potential in the commercial property service sector in the Greater Bay Area [1][2]. Financial Highlights - The company reported revenue of approximately 284 million yuan, with 74.9% coming from the Greater Bay Area, indicating a strong market position [3]. - Management expense ratio decreased to 9.3%, down 0.8 percentage points year-on-year, reflecting effective cost management [3]. - Net profit attributable to shareholders reached 87 million yuan, supported by a cash balance of 1.368 billion yuan, enhancing the company's financial stability [3]. - The interim dividend declared is 0.05 HKD per share, with a total cash dividend of 586 million HKD over five years, highlighting a commitment to shareholder returns [3]. Operational Performance - As of June 30, 2025, the company serviced 52 commercial property projects across 21 cities in China, with a total contracted area of approximately 2.65 million square meters [5]. - Same-store sales grew by 11.4% and customer traffic increased by 4.4% in the first half of the year, with an average occupancy rate of 92.5% [5]. - The company has initiated new collaborations with key brands in Shenzhen, enhancing its operational capabilities [5]. Market Environment - The Greater Bay Area's consumer market is experiencing a structural recovery, with tourism and local consumption showing positive trends [6]. - Continued consumer promotion policies and infrastructure improvements are expected to enhance the shopping center and commercial complex growth potential [6]. Q&A Insights - The company aims to balance short-term shareholder returns with long-term growth, indicating a cautious approach to dividend increases [9]. - Existing projects are showing growth, while new projects in the Greater Bay Area are expected to yield results soon [10]. - The company is exploring new growth points through careful investment in its core business and is open to new project opportunities [11]. - Management efficiency is being enhanced through refined management practices and team building, focusing on innovation and employee engagement [12][13]. - Upcoming projects include several new openings in Shenzhen and Nanjing, expected to launch by the end of the year [14]. - The company is researching asset securitization opportunities to further enhance its financial strategies [15].

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 星盛商業管理股份有限公司 (於開曼群島註冊成立的有限公司) 呈交日期: 2025年9月1日 I. 法定/註冊股本變動 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 06668 | 說明 | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 1,014,516,000 | | | | 1,014,516,000 | | 增加 / 減少 (-) | | | | | | | | | 本月底結存 | | | 1,014,516,000 | | 0 | | 1,014,516,000 | 第 2 頁 共 10 頁 ...

Investment Rating - The report maintains a "Buy" recommendation for the company [1][7][12] Core Views - The company has demonstrated a solid operational foundation with a focus on enhancing shareholder returns through increased dividends, proposing a mid-term dividend of 5 HKD cents per share, a 4.2% increase year-on-year [4][7] - Despite a decline in revenue and net profit in the first half of 2025, the company shows resilience with a same-store traffic growth of 4.4% and a same-store sales growth of 11.4% [4][7] - The company is strategically positioned in the Greater Bay Area and Yangtze River Delta, with ongoing projects expected to enhance its market presence [7] Financial Summary - For the first half of 2025, the company reported revenue of 284 million HKD, a decrease of 9.4% year-on-year, and a net profit of 87 million HKD, down 2.5% year-on-year [4] - The company’s projected revenue for 2025 is estimated to be 657 million HKD, with a slight growth forecast of 2.0% [6][10] - The gross margin improved to 52.3%, reflecting a 0.7 percentage point increase, primarily due to better performance in the leasing model [7] Operational Highlights - The company maintains a high occupancy rate of 92.5% amidst competitive market conditions [7] - Cash reserves are robust, with 1.368 billion HKD available at the end of the reporting period, supporting the increased dividend payout [7] - The company has a total contracted area of approximately 2.65 million square meters, with 1.65 million square meters already operational [7] Future Outlook - The company is expected to continue its focus on the Greater Bay Area and Yangtze River Delta, with new projects planned for opening in the second half of 2025 [7] - Earnings per share (EPS) is projected to remain stable at 0.16 HKD for 2025-2027, with corresponding price-to-earnings (P/E) ratios of 7.7, 7.5, and 7.3 respectively [7][10]

Performance Summary - The company reported a revenue of 2.84 billion RMB and a gross profit of 1.49 billion RMB, with a gross profit margin of 52.3%, reflecting a year-on-year increase of 0.7 percentage points [4][5] - The net profit attributable to shareholders was 0.87 billion RMB, and the management expense ratio decreased by 0.8 percentage points to 9.3% [4][5] - The company maintained a high cash dividend policy, declaring an interim dividend of 5.0 HKD cents per share, representing a year-on-year growth of 4.2% [5][6] Operational Metrics - Same-store sales increased by 11.4%, while same-store foot traffic decreased by 4.47% [5] - The occupancy rate stood at 92.5%, with a slight increase of 0.1 percentage points [5][11] - The company has a cash reserve of 13.68 billion RMB [4] Development and Expansion - The company operates 27 projects with a total area of 1.65 million square meters, maintaining a high occupancy rate compared to industry averages [9][11] - It has developed over 250 new projects and partnered with 2,800 merchants, with 10 new flagship stores launched during the period [13][30] - The company has a brand resource pool of 5,000, enhancing its market presence [12] Marketing and Customer Engagement - The company has implemented various marketing strategies, including collaborations with major platforms, resulting in over 100 million exposures [25][30] - It has introduced membership programs that enhance customer engagement and satisfaction, with significant increases in member sales and participation [30][34] Sustainability and Corporate Responsibility - The company launched a "Sustainable Exploration Plan" aimed at promoting low-carbon practices and reducing carbon emissions by 11 tons [39][41] - It has taken initiatives to support export enterprises by opening commercial spaces and leveraging government resources [41][42] Industry Recognition - The company has been recognized in various industry rankings, including being listed among the top 10 in the Chinese commercial real estate sector [43][44]