AInnovation Technology Group Co., Ltd.* (Stock Code: 2121) issued a supplemental agreement regarding the acquisition of 51% equity interest in AInnovation EHigher (Shanghai) Intelligence Technology Co., Ltd. (“Shanghai EHigher”), alongside an update on its 2024 annual report. According to the original share transfer agreement dated 20 May 2022, the total consideration for taking a 51% stake in Shanghai EHigher was RMB153.0 million. The supplemental agreement adjusts the closing date for collecting performance-based payments for the 2024 financial year from 30 June 2025 to 30 September 2025.
Under the updated arrangement, Shanghai EHigher’s revenue was adjusted to RMB332.5465 million and its net profit (excluding extraordinary gains and losses) was RMB27.9359 million as of 31 December 2024, meeting all indicated margins and resulting in a 100% performance achievement rate. Consequently, the Company is required to pay a total of RMB25.5 million to the original vendors as the adjusted share transfer price for 2024.
Beyond Shanghai EHigher, the Company previously entered into another agreement on 20 May 2022 to acquire 51% equity interest in Qingdao Aolipu Qizhi Intelligent Industrial Technology Co., Ltd. (“Target Company II”) for a total consideration of RMB122.4 million. For the 2024 financial year, the revenue of Target Company II was adjusted to RMB215.4348 million, with net profit (excluding extraordinary gains and losses) of RMB26.6498 million, leading to a performance achievement rate of 96.67%. The Company will therefore pay RMB19.7207 million for that portion of the share transfer price.
According to the 2024 annual report, the Group additionally recognized a total impairment loss of RMB227.973 million on goodwill and intangible assets for Shanghai EHigher, Shanghai Compass, and Shenzhen Huiyan. These subsidiaries faced uncertain market conditions and intensified competition during 2024, particularly in the automotive and financial sectors, leading to greater difficulty in securing orders and compressing profit margins.
All other terms from the original agreements remain in force unless otherwise amended. The Board has expressed that the revised terms serve normal commercial purposes and help advance ongoing operations.
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