NEW CONCEPTS (02221) Plans to Acquire Equity in Companies Engaged in Waste Cooking Oil Collection and Primary Processing

NEW CONCEPTS (02221) announced on December 15, 2025, that the company (as the buyer) entered into the following agreements:

1. A non-binding memorandum of understanding (MOU A) with Seller A (Mr. Xu Zebing) for the potential acquisition of up to 90% equity in Target Company A (Leshan Chunyi New Energy Technology Co., Ltd.). 2. A non-binding memorandum of understanding (MOU B) with Seller B (Mr. Luo Zhiqiang) for the potential acquisition of up to 80% equity in Target Company B (Guizhou Qianying Environmental Services Co., Ltd.). 3. A non-binding memorandum of understanding (MOU C) with Seller C (Mr. Yan Yutai) for the potential acquisition of 100% equity in Target Company C (Yingkou Yutai Waste Oil Collection Co., Ltd.). 4. A non-binding memorandum of understanding (MOU D) with Seller D (Mr. Han Biqiang) for the potential acquisition of up to 100% equity in Target Company D (Fuyang Qiangyou Oil Processing Co., Ltd.). 5. A non-binding memorandum of understanding (MOU E) with Seller E (Mr. Fang Shuo) for the potential acquisition of up to 40% equity in Target Company E (Anhui Feidian Environmental Technology Co., Ltd.).

**Business Overview of Target Companies:** - **Target Company A** (Leshan, Sichuan) specializes in renewable resource recycling, processing, and sales; R&D and processing of biochemical products; liquid biomass fuel technology; bio-based materials R&D, manufacturing, and sales; industrial animal fat chemicals; and non-edible plant oil processing. - **Target Company B** (Guiyang, Guizhou) focuses on food waste disposal, specialized environmental equipment sales and manufacturing, bio-organic fertilizer R&D and sales, renewable resource processing, and non-metal waste treatment. - **Target Company C** (Yingkou, Liaoning) is engaged in food waste disposal. - **Target Company D** (Fuyang, Anhui) primarily manufactures and sells non-edible plant oil and industrial animal fat chemicals. - **Target Company E** (Lu’an, Anhui) operates in recyclable businesses, including renewable resource recovery (excluding hazardous waste and scrap metal), processing and sales of recycled materials, R&D in recycling technology, urban waste collection, industrial solid waste treatment, and production of environmental equipment.

**Strategic Collaboration:** On the same day, NEW CONCEPTS signed a cooperation framework agreement with Guangxi Ronghe for the joint sales and processing of waste oil in China. The company will collect and supply waste oil extracted from grease interceptors within its operational network, while Guangxi Ronghe will handle procurement, processing, and sales. Guangxi Ronghe, a Chinese limited company, specializes in industrial oils, biodiesel, and bio-based plasticizers, with core products including first-generation biodiesel (UCOM) and bio-marine fuel (B24).

**Strategic Rationale:** The proposed acquisitions and partnership aim to strengthen NEW CONCEPTS’ vertically integrated presence in the bioenergy sector. The target companies are strategically located in key raw material regions, enabling rapid expansion of waste cooking oil supply, enhanced upstream resource control, and improved supply chain stability. The collaboration with Guangxi Ronghe secures downstream sales channels, ensuring efficient capacity utilization and establishing a full industrial value chain from "collection—processing—refining—sales." This initiative is expected to bolster the group’s core competitiveness, revenue stability, and long-term profitability, aligning with the interests of the company and its shareholders.