NEW CONCEPTS (02221) announced that on November 26, 2025, the buyer (Yisheng (Tianjin) Environmental Technology Co., Ltd., an indirect wholly-owned subsidiary) agreed to purchase a 12% equity stake in the target company (Guangxi Fusion Bioenergy Technology Co., Ltd.) from the seller (Xiamen Nuohongsheng Trading Co., Ltd.) for a total consideration of RMB24 million.
The target company primarily engages in the processing and sales of industrial oils, biodiesel, and bio-plasticizers. Its main products include first-generation biodiesel (UCOM) and marine biofuel oil (B24). The company’s key investment is the Nanning Project, a biodiesel production facility located in Natong Town, Long’an County, Nanning, China. The Nanning Project includes a production line with an annual capacity of approximately 200,000 tons, supported by storage tank areas, utility systems, and auxiliary production facilities. The first phase of construction is scheduled for completion in November 2025.
Supported by global policy frameworks, demand for biodiesel and sustainable aviation fuel (SAF) is expected to rise. The EU’s "Sustainable and Smart Mobility Strategy 2020" aims to reduce transport-related greenhouse gas emissions by 90% by 2050. Meanwhile, China’s favorable policies, including the cancellation of export tax rebates for used cooking oil (UCO)—a key feedstock for biodiesel and SAF—encourage domestic processing and promote growth in the domestic biofuel industry. As a result, global biodiesel demand is projected to expand rapidly.
The board believes the acquisition aligns with the group’s development strategy, strengthening its market share, competitiveness, and brand presence in China while capitalizing on long-term demand for sustainable energy. The deal also represents an opportunity to expand the group’s biodiesel business portfolio, with expected positive contributions from the target company and the broader biodiesel sector.
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