Star Commercial (06668) announced that on July 23, 2024, its indirectly wholly-owned subsidiary, Shenzhen Xinghe Commercial Development Group Co., Ltd., entered into a commercial property operation and management agreement with a subsidiary of a state-owned enterprise in Zhuhai (the “Owner”) to provide brand and management output services to a shopping center (the “Shopping Center”) near Gongbei Port in Xiangzhou District, Zhuhai, Guangdong Province.
According to the agreement, the group is required to provide brand and management output services to the Shopping Center from the date of the agreement until the opening of the Shopping Center, including market positioning, design and construction consulting services, tenant solicitation services, and operation management services. In accordance with the terms and conditions of the agreement, the agreement may be extended for 5 years. The group has the right to charge fixed fees for positioning, design and construction consulting services, fees for successfully soliciting tenants before the opening of the Shopping Center, and fees for operation management services, which are calculated as a predetermined percentage of the Shopping Center’s income and excess profit, but are subject to the revenue and excess profit amounts stipulated in the agreement.
The board of directors believes that entering into this agreement is a further practice of the group's expansion strategy of "taking Shenzhen and Guangzhou in the Greater Bay Area as the core while radiating key cities such as Zhuhai, Dongguan, Foshan, and Zhongshan." This business cooperation is a good opportunity for the group to further develop its existing business and consolidate its financial status, which is in line with the overall interests of the company and shareholders.
