HK Stock Market Move | SHENGHUI CLEAN (02521) rises more than 9%, likely to enter into a memorandum of understanding with Hao Huo (Chongqing) Network Technology for potential investment.

SHENGHUI CLEAN (02521) rises more than 9%, as of the time of publication, it has increased by 9.62%, to HK$0.57, with a turnover of HK$3.0508 million. On the news front, SHENGHUI CLEAN announced that its subsidiary, Guangzhou Shenghui, has entered into a non-binding agreement of intent with the target company, Hao Huo (Chongqing) Network Technology Co., Ltd., regarding possible capital injection. According to the agreement of intent, Guangzhou Shenghui intends to subscribe to new shares in the target company through cash injection. Therefore, after the possible capital injection is completed, Guangzhou Shenghui will hold no less than 51% of the equity in the target company. The target company is mainly engaged in providing software solutions, assisting small and medium-sized enterprise clients in the application of artificial intelligence (AI) and cloud technology to develop software systems for human resource allocation, training, administrative, and legal management. The Board of Directors believes that the possible capital injection, if implemented, will provide the Group with an opportunity to expand revenue sources, integrate technology with daily operations to save costs and optimize resource allocation, and create synergies with the Group's existing business.