[Caihua News] Biyao Green Group (01397-HK) announced that on September 25, 2019, the company and its indirect wholly-owned subsidiary Biyao waste disposal entered into a shareholder agreement with Swire Recycling and Alba for the investment and management of the joint venture. The joint venture company will construct and operate one of the treatment plants located in site T6 of the EcoPark, and to recover, recycle and reprocess specific waste plastics in Hong Kong as a subcontractor for Biyao waste treatment in accordance with the government lease (including, but not limited to, washing, crushing, grinding and sheet production), but does not include the collection, storage, sorting or processing of mixed solid waste.
The Group will invest a total of 13.3 million yuan in the joint venture, i.e. the subscription price of 10 million shares and the total amount of shareholder loans promised by Biyao waste disposal. Immediately after the completion of the subscription, the joint venture company will be recorded as an associate in the company's consolidated accounts.
The company refers to the reasons for the transaction. To capitalize on the Group's experience in the domestic waste recovery network and waste disposal industry, the experience of the Alba Group in providing recycling and environmental protection services and the advantages of Swire guarantors in the household beverage market, the parties have agreed to set up a joint venture to operate and operate Hong Kong's first-class waste plastic recycling facilities as a joint venture and is expected to commence operation in the third quarter of 2020.
According to the plan, after full production, the facility will be able to handle the household consumption of plastic beverage bottles and personal care plastic bottles used by Hong Kong consumers, and convert waste plastics into plastic resins and high-quality plastic sheets of the highest food grade. The project will help the Group to deal with its dominant position to gain future opportunities in the relevant industries, while providing it with a platform to expand the upstream and downstream industries of the waste management value chain.