A-Living Smart City Services Co., Ltd. (SEHK:3319) entered into an agreement to acquire 23% stake in ZHS beautiful urban and rural areas sanitation group Co., Ltd. from Zhongshan Huihang Environmental Services Co., Ltd.Cao Hu, Cheng Dongyun, Huili Capital Investment Co., Ltd. on September 18, 2020. A-Living also agreed to subscribe for the additional shares issued by ZH Sanitation. The total consideration for equity transfer and additional shares subscription was CNY 300 million. Upon completion A-Living will hold an aggregate of 30% equity interest in ZH Sanitation. The consideration for the ZH Sanitation Acquisition was determined upon negotiation between the parties with reference to the guaranteed net profit after taxation of ZH Sanitation for the year 2020 in the amount of CNY80 million. If the audited net profit after taxation is less than CNY80 million, the consideration will be subject to certain refund mechanism set out in ZH Sanitation Agreement.