According to the announcement, the Target Company is mainly engaged in the provision of cleaning services, greening services and maintenance and outdoor wall cleaning. As of the announcement date, the target company is wholly and beneficially owned by the seller Mo Yuxiu, and the target company owns 100% equity of Ningbo Jiayin. Ningbo Jiayin is mainly engaged in research and development of environmental protection technology, technical consulting, technology transfer, sanitation cleaning tools, energy-saving environmental protection equipment research and development, production and sales, construction waste cleaning, cleaning services and greening maintenance services.
According to the China-Austria Daojia survey, the established customer base of the Target Group had no fewer than 156 ongoing cleaning service projects on April 30, 2020, with a total contract value of approximately RMB 95 million.
The announcement shows that the seller agrees to ensure that the target company's comprehensive net profit after tax for the financial years ended December 31, 2020, December 31, 2021, and December 31, 2022 is not less than RMB 6.8 million, respectively Yuan, 8.2 million yuan and 9.8 million yuan.
If the target company ’s actual consolidated net profit after tax is less than the above guaranteed amount, the buyer has the right to exercise the put option; or the seller is required to compensate the difference between the actual amount and the guaranteed amount according to the following formula.
After the completion of the acquisition, the target company will become a 51% -owned subsidiary of Zhongao Daojia, and its financial performance will be consolidated into the financial statements of Zhongao Daojia Group.