Gelonghui, December 6, Standard Development Group (01867.HK) announced that on December 6, 2023, Standard Development (Shandong) (an indirect wholly-owned subsidiary of the company) signed a capital injection agreement with the target company, Standard Development (Shandong) (a wholly-owned subsidiary of the company), the target company, Stock Exchange (Juye) Co., Ltd. and Shandong Finance and Energy. According to the capital injection agreement, Standard Development (Shandong) agreed to inject a total of RMB 30 million into the target company in cash as the registered capital of the target company.
As of the date of this announcement, Standard Development (Shandong) held 60% of the shares in the target company, while Shandong Caijin Energy held 40% of the shares in the target company. Immediately after completion, Standard Development (Shandong)'s shares in the target company will increase to 90%, while Shandong Caijin Energy's shares in the target company will be reduced to 10%.
The target company is a limited company established in accordance with Chinese law on May 31, 2022. As of the date of this announcement, the target company's business was in the early stages.
Considering the huge market opportunities brought about by rural revitalization, the Group is actively studying technologies and market opportunities related to the comprehensive development and utilization of rural biomass to seize business opportunities. The target company plans to invest in the construction of a demonstration project for comprehensive utilization of organic waste resources in Juye, Shandong Province. By collecting local livestock and poultry manure and straw, and through treatment processes such as fermentation, waste is converted into clean energy and fertilizer that can be used for cultivation, thereby realizing a sustainable circular economy project that can effectively reduce carbon emissions.
The company believes that the capital injection will provide the target company with the necessary financial resources to enter the biomass clean energy market and seize the attractive market opportunities brought by the Chinese government's encouragement of rural revitalization through the implementation of a number of national and regional policies. It is expected that through the organic growth of the target company's business, the Group will be able to generate long-term sustainable returns for shareholders while making positive contributions to the green community.