China Environmental Energy (00986.HK) announced that it entered into a non-legally binding memorandum of understanding on August 21st, intending to acquire part or all of the equity of Shandong Jufu Tang Biotechnology held by an independent third party. After the parties reach the intention to acquire, they are expected to leverage their advantages in the biomedical sector of traditional Chinese medicine to conduct research and development and production of bio-medical products such as snake venom antitumor or analgesic pharmaceuticals.

The board of directors believes that the group is expected to benefit from the potential acquisition, which will help expand the supplier and customer base and diversify its business portfolio.