Zhitong Finance APP reported that Shenghui Clean (02521) announced that on December 5, 2024, the company's wholly-owned subsidiary Shenghui Clean (Hong Kong) Limited (as the buyer) signed two non-binding memorandums of understanding with the seller regarding the buyer's potential acquisition of the entire equity of the target company.

It is reported that target company A (Fu Hui Property Management Limited) and target company B (Fu Yu Property Management Limited) primarily engage in providing property management services in Hong Kong.

The board of directors believes that the potential acquisition (if realized) will allow the group to vertically integrate into the upstream of its main business, enhance its waste collection and recycling capabilities to meet increasingly stringent environmental, social and governance requirements, and expand the group's revenue sources outside of china. Together with the announcement dated September 3, 2024, regarding the joint venture established by the group with other parties operating a biobased industrial park in Hong Kong, the group has established a recycling value chain in Hong Kong as a pilot program, subsequently introducing it to the Greater Bay Area and other countries, thereby maximizing overall benefits for the company and its shareholders.