NEW CONCEPTS (02221) plans to issue approximately 14.8949 million consideration shares at a premium of 78.51% to acquire 70% equity in Anhui Feidian Environmental Technology Co., Ltd.

NEW CONCEPTS (02221) announced that on September 3, 2026, the company intends to acquire 30%, 20%, and 20% equity interests in Anhui Feidian Environmental Technology Co., Ltd. from Fang Shuo, Zhang Xiaoyun, and Zhu Zucun for a total consideration of 12.775 million yuan. The consideration will be paid by the company through the issuance of approximately 14.8949 million shares at a price of 1 HKD per share to the sellers, which represents a premium of 78.51% over the closing price of the shares of 0.56 HKD on the Hong Kong Stock Exchange on September 3, 2026. As of the date of this announcement, the target company holds 51% equity in its Chinese subsidiary, Chuzhou Feidian Environmental Technology Co., Ltd., which was newly established in July 2026. This Chinese subsidiary will primarily engage in the collection, processing, and trading of waste oil in China. The board of directors believes that the acquisition aligns with the group's strategic development to diversify its revenue sources and expand its environmental protection business. Given the target companys established capabilities in waste oil collection, processing, and trading in Anhui Province, China, combined with its existing procurement network and customer base, the company believes it can further expand its channels for acquiring upstream waste oil resources following the completion of the acquisition. Furthermore, the board anticipates that the acquisition will facilitate the integration of the target company's business with the group's existing environmental protection operations, generating synergies in project development, operational management, and resource utilization. The board of directors holds that the acquisition enables the group to seize the opportunities arising from the growing demand for renewable energy and low-carbon energy. Waste oil is a key raw material for producing sustainable aviation fuel and biodiesel. As the sustainable aviation fuel industry continues to develop in China and globally, the company expects the demand for compliant and traceable waste oil to remain strong. The acquisition will enable the group to further participate in this growing sector and establish a more robust market position in the upstream segment of the renewable fuel supply chain.