SHENGHUI CLEAN (02521) has announced that on June 30, 2026, Baishida and the company's indirectly wholly-owned subsidiary, Guangzhou Tianyou, entered into a joint venture agreement for the establishment of a joint venture company.
According to the joint venture agreement, Baishida and Guangzhou Tianyou will make capital contributions of RMB21.42 million and RMB9.18 million in cash, respectively, representing 70% and 30% of the joint venture's registered capital.
Upon its formation, the total registered capital of the joint venture will be RMB30.6 million.
The establishment of the joint venture is part of the concerted efforts by Baishida and the group to expand their footprint in China's recycling and environmental protection industry.
Following the joint venture's establishment, it will proceed to form another joint venture enterprise company (the joint venture subsidiary) in Fujian Province, China.
This subsidiary will primarily focus on the operation of fully integrating and optimizing cavitation pulping equipment technology, aiming to build a new material production and processing base in the southern zone of the Yongding District Industrial Park in Longyan City, Fujian.
The main business of the joint venture company will be investment holding, specifically to hold the registered capital of the joint venture subsidiary.
The joint venture subsidiary will be owned 51%, 30%, and 19% by the joint venture company, Fujian Yongding Industrial Park Investment Construction and Development Co., Ltd. (Yongding Investment), and Longyan Qingganlan Environmental Technology Co., Ltd. (Qingganlan), respectively.
The joint venture subsidiary, Yongding Investment, and Qingganlan will contribute RMB30.6 million, RMB18 million, and RMB11.4 million, respectively, to the registered capital of the joint venture company.
The board of directors believes this initiative aligns with the group's strategic development objectives to extend its existing operations into green business, diversify the group's revenue streams, and foster stable and sustainable long-term growth for the group's earnings.