On January 3, Gelonghui reported that SHIMAO SERVICES (00873.HK) announced that on January 3, 2025, SHIMAO Tiancheng and the buyer (both indirectly wholly-owned subsidiaries of the company) entered into an Equity Transfer Agreement and a Settlement Agreement with the seller and the original Shareholder, whereby the seller agreed to sell and the buyer agreed to purchase 33% of the equity in the target company. The consideration for the acquisition is set at 83.159 million yuan.
The target company, Shenzhen Shilu Yuan Environmental Co., Ltd., primarily engages in providing integrated urban and rural sanitation services in China and is currently a non-wholly-owned subsidiary with a 67% equity stake held by the group. After the original acquisition was completed, the target company continued to be managed by its original controllers. Due to business declines in 2022 and 2023, the group took over the management of the target company in March 2023 and vigorously expanded the market, increased management efficiency, and implemented cost reduction and efficiency enhancement measures. Since the group's takeover, the target company has successfully secured 19 new projects, with a total contract amount of approximately 0.359 billion yuan. As of June 30, 2024, the target company’s business operation has returned to profitability. After the completion of the acquisition, the target company will become a wholly-owned subsidiary of the company.
