May 25–26 Reverse Roadshow

From May 25 to 26, at the invitation of E-Star Commercial (6668.HK), more than 30 well-known institutional analysts from nearly 20 securities firms visited 5 projects of the company in Shenzhen and Zhongshan (Shenzhen Galaxy WORLD·COCO Park, Shenzhen Longhua Galaxy iCO, Shenzhen Futian Galaxy COCO Park, Shenzhen Longhua Galaxy COCO City, Zhongshan Skyline Galaxy COCO City) and had in-depth communication with the management. The visitors communicated and shared with them actively, witnessing the remarkable achievements of E-Star Commercial and gaining a deeper insight into the great operation and brand strength behind.

01

Stop 1

Shenzhen Galaxy WORLD·COCO Park

Shenzhen Galaxy WORLD·COCO Park is located at the intersection of Wuhe Avenue and Yabao Road in Longgang District, Shenzhen, seamlessly connected to Yabao Station on Metro Line 10. Held by Galaxy Holding and operated based on a commissioned management model, the project started operation on September 29, 2018, with a total contracted operating area of about 40,000 m2. As the supporting business for the industrial park, it is also a successful model for the integration of culture and business innovation and a fashion landmark of a prosperous metropolis. Shenzhen Galaxy WORLD·COCO Park enjoys the unique location advantage of an emerging core business district (CBD). It is planned to have two basements, four above-ground floors, and a roof garden. In the overall business sectors, anchor stores account for 23%, retail accounts for 21%, catering accounts for 31%, children’s consumption accounts for 11%, and other supporting facilities account for 14%. As of December 31, 2020, Shenzhen Galaxy WORLD·COCO Park had achieved a total sales revenue of about RMB 480 million in project merchants and a customer count of 10.6 million.

On the B1 floor, “Food Enjoy” introduced 15 regional cuisines and 630 dishes after overall decoration and split lease to meet the daily dining needs of white-collar workers in the surrounding area and improve the rent level per unit area.

The square on the second floor is built into an experiential HIGH land, integrating cultural and creative business, handicraft, reading, art, entertainment and leisure, trendy retail, slow/light food, and multiple other business sectors to meet people’s demand for diversified experience. Regular group marketing events are held to create a characteristic block with leisure, culture, fun, and business as the positioning.

02

Stop 2

Shenzhen Longhua Galaxy iCO

Located at No. 8 Donghuan 2nd Road, the center of CBD in Longhua District, Shenzhen Longhua Galaxy iCO is E-Star Commercial’s first external expanded third-party project operated in the brand and management output model. The project opened for business on December 12, 2015, with a total contracted operating area of 54,000 m2. It is adjacent to the Hilton Hotel, zero distance away from the largest cultural and sports center in Longhua, and connected to the smart territory of Shenzhen Book City. The project boasts 100,000 m2 of office and government buildings and 300 high-quality mature communities, successfully creating a regional iconic cultural experience business circle.

After 6 years of operation and development, Longhua Xinghe iCO Shopping Mall has leveraged its core advantage of boutique apparel to deploy the female retail sector, covering a number of famous lady’s wear and gold jewelry brands, with the supporting themed social media influencer catering and other diversified services to meet the customer needs at all levels in the surrounding 3-km area. In the overall business sectors, anchor stores account for 14%, retail accounts for 32%, catering accounts for 32%, and other supporting facilities account for 22%. As of December 31, 2020, Shenzhen Longhua Galaxy iCO had achieved a total sale revenue of RMB 510 million in project merchants and a customer count of 9 million.

03

Stop 3

Shenzhen Futian Galaxy COCO Park

Shenzhen Futian Galaxy COCO Park is located at the junction of Shenzhen Fuhua 3rd Road and Mintian Road, the core business cluster of Shenzhen CBD, seamlessly connected to Shenzhen Metro Lines 1 and 3. The project is held by Galaxy Holding and operated based on a commissioned management model.

Phase I officially opened for business on September 30, 2006. As the first park scenario-based shopping mall and the first shopping center operated by E-Star Commercial, it has become a business landmark in Shenzhen CBD after 15 years of continuous iteration. With a total contracted operating area of 67,645 m2, Phase I of Shenzhen Futian Galaxy COCO Park has brought together more than 270 international and domestic brands so far, including 12 folding inner streets, 8 natural light atriums, a 100m sky bridge, and a 6,000m2 sunken open-air plaza, perfectly interpreting fashion with space combination. In the overall business sectors, anchor stores account for 12%, retail accounts for 43%, catering accounts for 41%, and other supporting facilities account for 4%.

On July 31, 2020, Phase II of Shenzhen Futian Galaxy COCO Park was developed, with a total contracted operating area of 43,239 m2, mainly including retail, home furnishing, and supporting business sectors, creating an exclusive space for members, a happy growth paradise for children, and a quality home life center for families in pursuit of fashion trends.

After the renewal and upgrade, the total commercial area of Phases I & II reaches about 110,000 m2. In line with the proactive adjustment and upgrade of brands, beauty, affordable luxury, international fashion, and social media influencer catering are introduced, including famous brands such as Dior, Pandora, Lego, and Mango Tree, making it a veritable gathering place of fashion brands.

Meanwhile, the unique 6,000m2 Sunken Star Plaza is equipped with many social media influencer tea and light meal brands such as LadyM, Starbucks, and HEYTEA, making it the best place for afternoon tea in the CBD. Moreover, Futian Galaxy COCO Park has also seized the highland of the night economy by perfectly combining the Shenzhen landmark Ping An Building with the Shopping Park Bar Street to create an urban-level demonstration block and build a Shenzhen youth city that never sleeps, becoming a leader in nightlife.

With its unique attractiveness derived from tremendous comprehensive advantages, Shenzhen Futian Galaxy COCO Park gained a total sales revenue of RMB 1.63 billion in project merchants in 2020, a customer count of 19.3 million and 1.6 million in Phases I & II projects, and nearly 600,000 WeChat followers.

04

Stop 4

Shenzhen Longhua Galaxy COCO City

Shenzhen Longhua Galaxy COCO City is located at the entrance of Meilong Road, Longhua New Town, Shenzhen, adjacent to Baishilong Station of Metro Line 4. Held by Galaxy Holding and operated based on a commissioned management model, the project opened for business on November 8, 2014, with a total contracted operating area of about 168,000 m2.

As the first large-scale integrated commercial center in Longhua District, Shenzhen, it has carried forward the fashion core of COCO Park, with the unique six large atriums and a super-long frontage. Shenzhen Longhua Galaxy COCO City integrates boutique supermarket, trendy brands, various types of catering, and parent-child entertainment to fully interpret the project brand connotation of city, style and life. Oriented to fashionable young family customers, diversified functional combinations offer fashionable and convenient life experience.

In the overall business sectors, anchor stores account for 28%, retail accounts for 26%, catering accounts for 20%, children’s consumption accounts for 13%, and other supporting facilities account for 13%. In 2020, it achieved a total sales revenue of about RMB 590 million in project merchants and a customer count of 11.2 million.

05

Stop 5

Zhongshan Skyline Galaxy COCO City

Zhongshan Skyline Galaxy COCO City is located at the intersection of the two golden main axes of Zhongshan Road and Changjiang Road, the core CBD area in the East District of Zhongshan. The project is a commercial benchmark in Zhongshan co-created by E-Star Commercial and a third-party developer based on the brand and management output model, with a total contracted operating area of 147,000 m2.

To fully leverage the location advantages at the geometric center of the Guangdong-Hong Kong-Macao Greater Bay Area, Zhongshan Skyline Galaxy COCO City brings together boutique supermarket, brand flagship stores, children’s playground, cinema and international cuisines to create high-quality business sectors. In the overall business sectors, anchor stores account for 25%, retail accounts for 23%, catering accounts for 33%, children’s consumption accounts for 11%, and other supporting facilities account for 7%.

In the communication process, the third-party developer owner stated that: After a long period of investigation, comparison and screening, it chose E-Star Commercial as the shopping mall operator for its differentiated operation capacity, team professionalism, and brand effect. Despite the influence of the pandemic in 2020, E-Star Commercial insisted on active preparation and opened the mall at the end of the year, demonstrating its great execution capacity.

Zhongshan Skyline Galaxy COCO City opened for business on November 28, 2020. It attracted more than 230,000 customers on the grand-opening day alone; introduced Rainbow sp@ce Supermarket, Calvin Klein, UNDER ARMOUR, and many other brands that entered Zhongshan for the first time. As of December 31, 2020, just a little over a month after its grand opening, the project had gained a total sales revenue of RMB 40 million and a customer count of 1.1 million.

06

Management Communication

In this event, the analysts also had in-depth communication with the company’s management in addition to project visit. Mr. Niu Lin, Executive Director and Vice President of E-Star Commercial, Ms. Wen Yi, Executive Director and General Manager of the Financial Management Center, Ms. Yu Jing, Director of the Capital Market Department, Ms. Wang Shirong, Deputy Director of the Financial Management Department, and Ms. Fang Yiqun, Director of Investor Relations attended the event, making clear, comprehensive and in-depth presentations of the performance, strategic positioning, business layout, and development prospects of E-Star Commercial.

In particular, the management emphasized:

1) The market-proven advantages of E-Star Commercial lay in the third-party expansion capabilities. As of the end of 2020, 62% of the contracted area (3.28 million m2) was third-party area;

2) The demonstrated outstanding operational capabilities. Adhering to the tenet of developing a specific strategy for each store on a case-by-case basis, making each case successful and better than last one, E-Star Commercial strove to create differentiated shopping mall scenes through preliminary research and strategy, precise positioning. Even based on the operation of massive third-party projects, the overall occupancy rate remained at 94.3%, leading in the country;

3) The synergy with Galaxy Holding Group. Galaxy Holding had a land reserve of 40 million m2, including 4 million m2 for commercial use, which would also provide a sound foundation for the future development of the company.

★Conclusion★

Through field investigation and communication, everyone fully recognized and highly praised the operational strength of E-Star Commercial, confident in its future growth. It is believed that the massive benchmark projects of E-Star Commercial have provided successful experiences and models with great reference significance, which will help the company scale new heights and continue its success with even more brilliant achievements.