Ever Sunshine Services Group Limited (ES Services) disclosed that its subsidiary Yongsheng Yande (Hainan) Investment Company Limited has signed a supplemental agreement with the vendor of Hunan Meizhong Biophysical Environment Technology Co., Ltd. to waive the final three instalments of the consideration for a 51% equity acquisition completed in September 2021.
Following the agreement dated 29 June 2026, the vendor released Yongsheng Yande from paying the fourth, fifth and sixth instalments, totalling RMB 16.71 million. Consequently, the aggregate consideration actually payable for the majority stake falls to RMB 41.48 million, equal to the first three instalments already settled.
Management highlighted three main rationales for the waiver:
1. Ongoing Partnership: ES Services and the vendor continue to cooperate in developing Hunan Meizhong, in which the vendor retains a 49% interest, ensuring aligned incentives for the target’s long-term growth.
2. Financial Flexibility: Eliminating the outstanding payments preserves cash resources for the group, strengthening its liquidity position without altering ownership terms.
3. Strategic Synergy: Leveraging ES Services’ market reach and operational expertise is expected to support Hunan Meizhong’s expansion, benefiting both shareholders.
All other provisions of the original 2021 acquisition agreement remain unchanged. The board of ES Services deems the supplemental terms fair, commercially reasonable and in the best interests of the company and its shareholders.
Comments