Shenghui Clean (02521) has announced the signing of a non-binding framework agreement with Cold Tree Capital (Beijing) Co., Ltd. on July 17, 2026.

The agreement outlines a cooperative intent covering several key areas. One of the primary objectives is the establishment of a merger and acquisition fund, which will target the acquisition of equity in China Water Environment Group Co., Ltd.

Another key initiative involves forming a joint venture, referred to as Joint Venture A, to collaborate on artificial intelligence-driven smart water management and operational projects. This venture aims to jointly provide smart water supply management solutions and high-quality drinking water solutions for water resource projects managed by Cold Tree Capital.

A third component is the creation of a separate joint venture, designated as Joint Venture B, focused on developing and marketing a proprietary brand line within the water and beverage categories. This product line is expected to include bottled water, chilled beverages, and direct drinking water, with plans for expansion into related markets.

The specific details regarding the establishment of the fund, Joint Venture A, and Joint Venture B are subject to further negotiation between the parties and will be formally documented in subsequent definitive agreements.

Cold Tree Capital is a company incorporated in China, primarily engaged in investment management, investment consulting, and asset management. China Water Environment Group is also a China-based company, with its main business operations in water environment management and resource recycling.