China Environmental Resources (01130) plans to acquire 90% of the shares of Sichuan Yuanlaishun Renewable Resources Co., Ltd. for 9 million yuan

Zhitong Finance App News, China Environmental Resources (01130) announced that on December 12, 2025 (after the transaction period), the company and Goldwin Century entered into a termination agreement on the memorandum of understanding relating to potential cooperation in business development and other ancillary business opportunities for rare earth projects in the People's Republic of China. Based on this, the contracting parties have jointly agreed to terminate the memorandum of understanding with immediate effect. The MOU was established to provide a framework for the company to conduct a due diligence review of Sichuan Yuanlaishun and its business operations and explore the viability of potential cooperation. After further commercial negotiations, the contracting party determined that the direct acquisition of Sichuan Yuanlaishun Renewable Resources Co., Ltd. (target company), the main operating subsidiary of Sichuan Yuanlaishun, would be more in line with the strategic direction of the existing metal recycling business (the company continues to strive to explore similar business opportunities outside Hong Kong after launching the Hong Kong metal recycling business). This move is more beneficial to the Group than the previously proposed cooperation. The acquisition will enable the Group to directly control and fully integrate the target company's business, so as to more effectively seize the synergy benefits and growth opportunities in the rare earth materials market. Accordingly, the contracting parties jointly agreed to terminate the memorandum of understanding which had achieved its initial purpose and enter into a clear agreement to proceed with the acquisition.

On December 12, 2025, the company signed an equity transfer agreement with Sichuan Yuanlaishun through its wholly-owned subsidiary to acquire 90% of the target company's share capital interests for 9 million yuan. The target company is mainly engaged in recycling renewable and recyclable resources in China (focusing on new energy motorcycle rear tire components that produce reusable copper, aluminum, rubber and rare earth permanent magnets) and other ancillary business opportunities. Shortly before the purchase was completed, the target company was wholly owned by Sichuan Yuanlaishun.

The directors believe that the acquisition represents a strategic opportunity to strengthen and expand the Group's metal recycling business by entering the high-quality and specialized field of rare earth material recycling (an industry with significant global prospects and development potential). The acquisition enabled the Group to enter the rare earth business, obtain high-quality rare earth magnetic materials, and stand out in fiercely competitive markets such as electric vehicles and green technology. The directors believe that the acquisition will enable the Group to meet the growing demand for advanced materials and innovative solutions from its diversified business segments, including metal recycling and green market applications.