Venture Group Holdings (02221) plans to acquire shares in a company engaged in the collection and initial processing of waste cooking oil

Zhitong Finance App News, Venture Group Holdings (02221) issued an announcement. On December 15, 2025, the company (as the buyer) signed the following agreement: a non-legally binding Memorandum of Understanding A with Seller A (Mr. Xu Zebing) to acquire up to 90% of Seller A's current shares in target company A (Leshan Chunyi New Energy Technology Co., Ltd.); with Seller B (Mr. Luo Zhiqiang) on the acquisition of up to 80% of the shares currently held by Seller B (Guizhou Qianying Sanitation Service Co., Ltd.) the acquisition B concludes a non-legally binding memorandum of understanding B;

A non-legally binding Memorandum of Understanding (D) was concluded with Seller C (Mr. Yan Yutai) regarding the acquisition of all of Seller C's shares in Target Company C (Yingkou Yutai Waste Oil and Fat Acquisition Co., Ltd.); a non-legally binding Memorandum of Understanding D with Seller D (Mr. Han Biqiang) regarding the acquisition of up to 100% of Seller D's current shares in Target Company D (Fuyang Shiqiang Oil & Fat Processing Co., Ltd.) D; and Seller E (Mr. Fang Shuo) for the acquisition of Seller E (Target E) Anhui Boiling Point Environmental Technology Limited company) currently holds up to 40% of the shares and a possible acquisition E enters into a non-legally binding Memorandum of Understanding E.

Target Company A is located in Leshan City, Sichuan Province, China. It is mainly engaged in recycling, processing and sales of renewable resources; biochemical product development and processing; liquid biomass fuel production technology research and development; research, development, manufacturing and sales of bio-based materials; manufacturing and sales of industrial animal oleochemicals; and processing and sales of non-edible vegetable oils.

Target company B is located in Guiyang City, Guizhou Province, China. It is mainly engaged in food waste disposal; sales and manufacture of special environmental protection equipment; research, development and sale of bio-organic fertilizer; processing and sales of renewable resources; and processing and treatment of non-metallic waste and debris.

Target company C is located in Yingkou City, Liaoning Province, China, and is engaged in food waste disposal.

Target company D is located in Fuyang City, Anhui Province, China, and is mainly engaged in the manufacture and sale of non-edible vegetable oils and industrial animal oleochemicals.

Target company E is located in Lu'an City, Anhui Province, China, and is engaged in recyclable business. Its main business areas include: (i) recycling renewable resources (excluding hazardous waste and waste metals generated during manufacturing) and non-metallic waste; (ii) processing and sale of recycled materials and sale of non-metallic minerals; (iii) research and development of recycling technology and bio-organic fertilizer production; (iv) providing municipal domestic waste collection and treatment (excluding hazardous waste), industrial solid waste treatment, construction waste disposal and sanitation services; (v) production of special environmental protection equipment and manufacturing of products related to non-edible animal oils.

On December 15, 2025, the company signed a cooperation framework agreement with Guangxi, which includes cooperation in the sale and processing of waste oil in China. The company is responsible for collecting and supplying waste oil extracted from the oil-water separator in its operating system to Guangxi Fusion. Guangxi Fusion is responsible for the procurement, processing and sale of the above waste oils and fats.

Guangxi was integrated into a limited company established in China, mainly engaged in the processing and sale of industrial fats, biodiesel and bio-based plasticizers. Its main products include first-generation biodiesel (UCOM) biofuel (B24).

The Group plans to acquire shares in target companies engaged in the collection and initial processing of used cooking oil, and also enter into a cooperative framework agreement with Guangxi. This strategic initiative aims to integrate the Group's vertically integrated upstream and downstream layout in the bioenergy industry. Target companies are located in multiple key raw material production areas, enabling the Group to rapidly expand the supply scale of used cooking oil, strengthen control over upstream resources, and significantly improve the stability and safety of raw material supply. At the same time, the signing of the cooperation framework agreement will secure stable downstream sales channels for the Group, ensure effective absorption of future production capacity, and establish a complete industrial value chain covering “collection, processing, refining and sales”. This comprehensive cooperation is expected to further enhance the Group's core competitiveness, revenue stability and long-term profitability, and is in line with the overall interests of the company and its shareholders.