Shenghui Cleaning (02521) plans to acquire 15 patents from Shenzhen Baishida

Zhitong Finance App News, Shenghui Clean (02521) announced that on December 23, 2025, Guangzhou Tianyou Shenghui, a wholly-owned subsidiary of the company, plans to acquire the target patent from Shenzhen Baishida, at a total cost of RMB 4 million. The target patents are 15 patents exclusively owned by Shenzhen Baishida, including 13 utility model patents and 2 design patents.

On October 21, 2024, the company successfully used patented technology from its strategic partner PepsiCo to jointly develop the first model and complete trial production through its subsidiary. At the same time, it customized the equipment according to the Group's specifications and uses, focusing on achieving zero wastewater emissions during the treatment process. The equipment will be used to dispose of waste materials, mainly from collected paper waste (including packaging materials, used paper food boxes, paper cups, tissues, wooden boards), organic waste (including coffee grounds, tea leaves, agricultural and forestry straw resources collected from the logging and mowing process), and other plant waste materials from the Group's daily cleaning and maintenance operations, using Pepsi's recycling technology to convert them into environmentally friendly pulp, cartons, packaging materials, cardboard and organic fertilizer.

The Group intends to use the equipment to: (i) bio-based industrial parks, particularly in Hong Kong, China, Macau and Singapore, where land resources are scarce and demand for garbage and waste recycling is growing; and (ii) use the waste and waste collected by the Group to enhance its environmental, social and governance efforts to support its existing business. The development of the above equipment is critical to the Group's future plans. It is not only in line with the Chinese government's policy to promote the establishment of a value chain for material recycling across the country, but also enhances the Group's competitiveness in the industry as environmental, social and governance awareness and needs continue to increase. As of the date of this announcement, the Group is installing the equipment at the 21-acre Baishi Shenghui Circular Economy Industry Demonstration Park in Panyu, Guangdong Province, China.

In view of the above, and in order to enhance Guangzhou Tianyou Shenghui's influence in the green recycling industry, the company believes that the transfer of the target patent will facilitate and streamline the Group's further development of this equipment and strengthen the Group's core competitiveness in the waste recycling market. The company can cooperate vertically and horizontally with Guangzhou Tianyou Shenghui to form a closed loop industrial ecosystem. This move will enhance the Group's core competitiveness in related industries and facilitate the long-term development of the company.