Shenghui Cleanness Group Holdings Limited Provides Update on Potential Capital Injection

Key Highlights for Investors

• Termination of Capital Injection: The anticipated capital injection by Guangzhou Shenghui into the Target Company will not proceed as parties failed to enter into a formal agreement by the stipulated deadline of 18 March 2026.
• Refund of Deposit: The Target Company is required to return the refundable deposit of RMB9 million to Guangzhou Shenghui within three working days from 18 March 2026.
• Impact Assessment: The Board has indicated that this development will not have any material adverse impact on the Group’s existing operations or its financial position.

Details of the Announcement

Shenghui Cleanness Group Holdings Limited (the “Company” or “Group”), a Cayman Islands-incorporated company listed on the Hong Kong Stock Exchange (Stock Code: 2521), has issued an important update regarding its previously announced potential capital injection into a target company.

Referring to earlier announcements dated 18 November 2025 and 15 January 2026, the Company had entered into a non-legally binding Agreement of Intent (AOI) with the Target Company. An extension agreement was also signed on 15 January 2026 to allow more time for negotiation.

As of 18 March 2026, no formal capital injection agreement was reached between Guangzhou Shenghui (a subsidiary or related entity of the Group) and the Target Company. As a result, the possible capital injection will not proceed.

In accordance with the terms of the AOI and extension agreement, the Target Company must refund the full deposit of RMB9 million to Guangzhou Shenghui within three working days of 18 March 2026. The Board has reviewed the situation and concluded that this termination will not materially affect the Group’s current business activities or its financial standing.

Implications for Shareholders

• Potential Share Price Impact: The cancellation of the capital injection may be viewed as a negative development by the market, as it could signal missed growth or expansion opportunities for the Group. However, the immediate financial risk is mitigated by the prompt refund of the RMB9 million deposit.
• No Adverse Operational Impact: The Board’s assurance that the Group’s business and financial position remain stable may help reassure investors.
• Monitoring Future Developments: Investors should closely monitor future announcements, as the Group may explore alternative strategic investments or partnerships.

Board of Directors

The Board currently comprises four executive Directors: Mr. Li Chenghua (Co-chairman and Chief Executive Officer), Mr. Wei Dongjin (Co-chairman), Mr. Chen Liming, and Mr. Dong Jiangang. There are also three independent non-executive Directors: Ms. Cheung Bo Man, Ms. Yau Yin Hung, and Dr. Wang Hui.

Disclaimer

This article is for informational purposes only. It does not constitute investment advice. Investors should consider their own circumstances and consult with their financial advisers before making any investment decisions. The author and publisher assume no responsibility for any actions taken based on the information contained herein.

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