First Service Holdings (02107) issued an announcement. As disclosed in the Qingdao Luohang takeover announcement, Seller 1, Seller 2, Wei...
Zhitong Finance App News, First Service Holdings (02107) issued an announcement. As disclosed in the Qingdao Luohang takeover announcement, Seller 1, Seller 2, Weihai Haicheng and Wang Zhilan promised that the net profit of Shangcheng Property for each year from January 1, 2021 to December 31, 2023 (Shangcheng Property Guaranteed Profit), and for the year ended December 31, 2021, 2022, and 2023, Shangcheng Property's revenue shall not be less than $132 million, 145 million yuan and 160 million yuan (Shangcheng Property Guarantee) revenue).
According to the equity transfer agreement relating to the acquisition of Qingdao Luohang, First Property Beijing has the right to deduct 13% (adjustment amount A) of the difference between the guaranteed income of Shangcheng Property and the actual income of Shangcheng Property during the year (adjustment amount A) and the difference between 15 million yuan and the actual net profit of Shangcheng Property during the year (adjustment amount B) from the balance of compensation of 22.68 million yuan (balance of cost balance) or profits that should be distributed between January 1, 2021 and December 31, 2023 (performance commitment period), then the amount is adjusted A It is equal to zero, and if the actual net profit of Shangcheng Property during the performance of the commitment is not less than 45 million yuan, then the adjustment amount B is equal to zero.
Since the actual annual revenue of Shangcheng Property for the year ended December 31, 2021, 2022 and 2023 was higher than 112 million yuan, First Property Beijing has no right to require Weihai Haicheng and Wang Zhilan to transfer the management rights of Shangcheng Property Management's property projects to First Property Beijing during the performance of their commitments.
As of the date of this announcement, the parties to the equity transfer agreement are negotiating the final adjustments to the cost balance.