SHENGHUI CLEAN (02521) subsidiary And Friends (Chongqing) Network Technology has entered into a possible investment intention agreement.

SHENGHUI CLEAN (02521) announced that on November 18, 2025 (after trading hours), Guangzhou Shenghui (an indirectly wholly-owned subsidiary of the company) has entered into a non-legally binding memorandum of understanding with the target company (Hao Huo (Chongqing) Network Technology Co., Ltd.) regarding a potential investment. According to the memorandum of understanding, Guangzhou Shenghui intends to subscribe for new equity in the target company through a cash injection, and therefore, after the potential investment is completed, Guangzhou Shenghui will hold no less than 51% of the shares in the target company. Guangzhou Shenghui has agreed to pay a refundable deposit of RMB 9 million to the target company. If the memorandum of understanding is terminated by mutual agreement, or if the parties fail to enter into a formal investment agreement within 60 days after the payment of the refundable deposit, the deposit will be fully refunded to Guangzhou Shenghui within three working days. If the target company fails to meet the above requirements, it will be required to pay Guangzhou Shenghui a default penalty of 0.05% of the outstanding amount per day. The target company, established in Chongqing, is mainly engaged in providing software solutions to help small and medium-sized enterprise clients with tasks such as human resource allocation, training, administrative and legal management, using artificial intelligence (AI) and cloud technology to develop software systems. The directors believe that the potential investment (if realized) will provide the group with opportunities to expand revenue sources, integrate technology with day-to-day operations to save costs and optimize resource allocation, and create synergies with the group's existing business. For example, the group is mainly engaged in providing cleaning and maintenance services, which are labor-intensive, suffer from high employee turnover, and are constrained by factors such as working hours, geographic location, gender, and age. By adopting AI algorithm technology developed by the target company, the platform can be used to provide training to new employees and allocate available full-time and part-time employees to positions that require manpower. This optimization of internal and external resources will greatly reduce labor costs, bring about AI digitization transformation, and contribute to the long-term development of the group.