Shenghui Cleanness (HKG:2521) said it has extended the deadline to enter into a formal agreement for a proposed capital injection, citing additional time needed to complete due diligence, according to a Thursday Hong Kong bourse filing.

Shares of the cleaning and maintenance services provider were up nearly 17% in late-morning trade on Friday.

The latest date for signing a definitive agreement has been extended to March 18, the company said.

The proposal stems from an earlier non-binding agreement of intent under which Shenghui Cleanness's indirect wholly owned subsidiary, Guangzhou Shenghui, is considering subscribing for at least a 51% stake in Haohuo (Chongqing) Network Technology.

Haohuo provides AI- and cloud-based software solutions to small- and medium-sized enterprises, covering areas such as human resources management, training, administration, and legal services.