CH GENERAL EDU (02175) has announced a fresh development regarding its acquisition of the target company, revealing that discussions are underway to potentially lower the total consideration.

According to the company's latest filing, the second installment payment for the acquisition was originally contingent on the target company achieving a net profit attributable to shareholders of no less than RMB 26 million (after deducting non-recurring gains and losses) for the fiscal year 2026, which spans from September 1, 2025, to August 31, 2026. However, a preliminary review of the target company's unaudited management accounts covering September 1, 2025, through July 31, 2026, indicates that the target is unlikely to meet this profit threshold.

In response, CH GENERAL EDU and the seller have reached an agreement in principle to reduce the acquisition price. The company is now preparing to negotiate with the seller on revised amounts and payment terms. Notably, no binding agreement has been executed yet, and the company has cautioned that the outcome of these discussions remains uncertain and subject to further changes.