Entrepreneurial Group Holdings (02221) subsidiary proposes to acquire 12% equity interest in Guangxi Fusion Bioenergy Technology Co., Ltd. for 24 million RMB.

Entrepreneur Group Holdings (02221) announced that on November 26, 2025, the buyer (Yisheng (Tianjin) Environmental Technology Co., Ltd., an indirect wholly-owned subsidiary of the Company) intends to acquire 12% equity interest of the target company (Guangxi Ronghe Bioenergy Technology Co., Ltd.) from the seller (Xiamen Nuohongsheng Trading Co., Ltd.) at a total price of RMB 24 million. The target company is mainly engaged in the processing and sales of industrial oils, biodiesel, and bioplasticizers. Its main products include first-generation biodiesel (UCOM) and marine biofuel oil (B24). The target company mainly invests in the Nanning project, which is a biodiesel production facility located in Natong Town, Long'an County, Nanning City, China. The Nanning project includes a production line with an annual capacity of about 200,000 tons, as well as supporting facilities such as tank areas, public engineering systems, and production auxiliary systems. The construction of the first phase is scheduled to be completed in November 2025. Due to global policy support, the global demand for biodiesel and Sustainable Aviation Fuel (SAF) is expected to rise. Considering the EU's "2020 Sustainable and Intelligent Transport Strategy", which sets a target of reducing transport-related greenhouse gas emissions by 90% by 2050; and favorable policy developments in China, including the cancellation of export tax rebates for Used Cooking Oil (UCO), which is a key raw material for biodiesel and sustainable aviation fuel, encouraging domestic processing and promoting the growth of the domestic biofuel industry in China, global demand for biodiesel is expected to rapidly expand. In addition, the Board believes that the acquisition is in line with the Group's development strategy and is expected to help consolidate and enhance the Group's market share, competitiveness, and brand image in China, as well as seize the long-term demand for sustainable energy. This also represents an opportunity to expand the Group's portfolio in the biodiesel industry and contribute positively to the future prospects of the target company and the biodiesel industry.