Create Restaurants Holdings plans to sell all shares of its Hong Kong subsidiary. Its board resolved on October 14, 2026 to do so, and the company signed the share transfer agreement the same day. The shares are due to change hands on October 29, so the sale is scheduled, not complete.
The buyer is eDigital Media Limited, which the company describes as a partner that has so far been its franchisee. The price for the 20 million shares is HK$1. The notice lists eDigital's business as web development, digital marketing, branding, social media operation and creative production, and reports no capital, personnel or trading ties with Create Restaurants.
Create Restaurants founded the subsidiary in 2012. It blames a shift in Hong Kong consumer behaviour (the so-called northbound spending trend), a changed local business environment and the closure of its main directly run store. It says it had worked on improving its management structure, including rationalising unprofitable outlets and shifting toward franchising, before deciding on the sale, in the interest of allocating group resources more efficiently.
| Metric | Year to Feb 2024 | Year to Feb 2025 | Year to Feb 2026 |
|---|---|---|---|
| Sales | 521 | 408 | 256 |
| Operating profit | -10 | 45 | -5 |
| Net profit | -115 | -36 | -27 |
| Net assets | -204 | -240 | -267 |
The unit's sales fell from ¥521mn to ¥256mn over three years to February 2026, and net assets were negative ¥267mn at the end of that period. The company says the effect on consolidated results for the current fiscal year, ending February 2027, is minor. The notice does not give a gain or loss on the sale, or say how the company's loans to the subsidiary will be treated.
The extraordinary report filed with the Kanto Local Finance Bureau confirms the voting-rights change: from 20,000,000 votes and 100% before the transfer to none afterward, once the sale closes on the scheduled date.