SHENGHUI CLEAN (02521) announced that on December 23, 2025, its wholly-owned subsidiary, Guangzhou Tianyou Shenghui, intends to acquire 15 target patents from Shenzhen Bestar for a total consideration of RMB 4 million. The target patents consist of 13 utility model patents and 2 design patents exclusively owned by Shenzhen Bestar.
On October 21, 2024, the company, through its subsidiary, successfully utilized Bestar's patented technology to jointly develop the first model of a waste-processing device and completed trial production. The device was customized according to the group's specifications, emphasizing zero wastewater discharge during processing.
The equipment will be used to treat waste materials, primarily paper waste (including packaging materials, used paper food containers, cups, tissues, and wooden boards), organic waste (such as coffee grounds, tea residues, and agricultural/forestry straw collected from logging and lawn mowing), and other plant-based waste from the group's daily cleaning and maintenance operations. Using Bestar's recycling technology, these materials will be converted into eco-friendly pulp, cartons, packaging materials, cardboard, and organic fertilizers.
The group plans to deploy the device in: (i) Bio-based industrial parks, particularly in Hong Kong, Macau, and Singapore, where land resources are scarce and demand for waste recycling is growing; and (ii) Enhancing its environmental, social, and governance (ESG) efforts by utilizing collected waste to support its existing operations.
The development of this equipment is critical to the group's future plans, aligning with China's national policy to establish a material recycling value chain. It also strengthens the group's competitiveness as ESG awareness and industry demands rise.
As of the announcement date, the group is installing the device at the Bestar-Shenghui Circular Economy Industrial Demonstration Park in Panyu, Guangdong Province, covering 21 mu (approximately 14,000 square meters).
The acquisition of these patents is expected to streamline further development of the device, enhance Guangzhou Tianyou Shenghui's influence in the green recycling sector, and solidify the group's core competitiveness in waste recycling. By integrating vertically and horizontally, the company aims to establish a closed-loop industrial ecosystem, supporting long-term growth and reinforcing its market position.