Shares of EVERG SERVICES (06666.HK) experienced a sharp decline on the afternoon of June 25, plummeting over 27% at one point before closing down 23.53% at HK$0.78, giving the company a market capitalisation of approximately HK$8.4 billion.

Background of the Announcement

The catalyst for the drop was an announcement made by EVERG SERVICES to the Hong Kong Stock Exchange around midday. The company stated it had been informed by its liquidators that negotiations between a potential seller and a potential buyer had been terminated. No formal or legally binding sale and purchase agreement had been executed for the potential transaction. The liquidators are now actively consulting with their financial advisors to seek other potential buyers for the controlling stake in the company held by EVERGRANDE and CEG Holdings.

History of Sale Attempts

EVERG SERVICES was first put up for sale in 2021 when its parent company, EVERGRANDE, faced a liquidity crisis. Hopson Development had planned to acquire a 50.1% stake for HK$20.04 billion. However, the deal ultimately fell through due to disagreements over payment terms and the conditions for a mandatory general offer.

In September 2025, the liquidators of EVERGRANDE formally approached EVERG SERVICES to sell its shareholding, accelerating the disposal process. During this period, several major property management firms were rumoured to be potential buyers, though these speculations were later clarified.

This year, the list of rumoured acquirers for EVERG SERVICES saw further changes.

On the evening of April 14, EVERG SERVICES announced that the EVERGRANDE liquidators had signed an exclusivity agreement with a selected bidder, initiating a 30-working-day exclusive negotiation period for the 51.016% stake.

The process concluded on June 25 when EVERG SERVICES announced the failure of this sale attempt.

Financial Performance Overview

From a financial perspective, EVERG SERVICES remains a quality asset. Its 2025 annual report showed full-year operating revenue of approximately RMB 13.678 billion, a year-on-year increase of about 7.2%. The managed area stood at around 601 million square meters, with newly contracted third-party areas for the year totaling approximately 45 million square meters. Gross profit was about RMB 2.505 billion, up 2.5% year-on-year.