New Concepts (HKG:2221) entered five non-legally binding MoUs to potentially acquire equity interest in five companies, a Monday Hong Kong bourse filing said.

Shares of the environmental protection company were down over 3% in Tuesday afternoon trading.

The MoUs have an exclusivity period of 180 days, and formal agreements with the vendors are subject to further negotiations.

The target firms broadly engage in the niches of recycling, kitchen waste disposal, and non-edible vegetable oil and industrial animal fat chemicals.

The firm also said it agreed to cooperate with Guangxi Ronghe for the sale and processing of waste grease in China for one year.

New Concepts will provide waste grease extracted from oil-water separators within its operational system, while Guangxi Ronghe will process and sell it.