Powerlong Commercial Management Holdings Limited (POWERLONG CM) (09909) has announced a strategic transaction.

On April 29, 2025, the company's wholly-owned subsidiary, Shanghai Powerlong, entered into an equity transfer agreement with Xiamen Erlai.

Under the terms of the agreement, Shanghai Powerlong has agreed to sell, and Xiamen Erlai has agreed to purchase, a 60% equity interest in Xiamen Powerlong for a total consideration of RMB 6 million.

This divestment is part of the group's strategic focus on its core development region, the Yangtze River Delta.

The group intends to prioritize strengthening its Powerlong Plaza product line as a central component of its core brand strategy.

Following a careful review of the group's overall strategic positioning and resource allocation, the board of directors resolved to sell the group's stake in Xiamen Powerlong, along with the four Xiamen Powerlong Tiandi retail commercial properties it manages.

The board noted that Xiamen Powerlong is located outside the group's primary operational region and primarily consists of community-based commercial projects.

These assets are considered to have limited strategic relevance to the group's future growth trajectory.

Maintaining ownership and operation of Xiamen Powerlong would lead to ongoing cross-regional management complexities and operational costs without generating commensurate strategic or financial returns.

Consequently, the disposal will enable the group to streamline its business structure, enhance operational efficiency, and reallocate capital and management resources more effectively toward its core regional markets and core brand operations.