Sanvo Fine Chemicals Ltd (00301) has announced a new strategic partnership, having entered into a collaborative manufacturing agreement with Green Circle Decarbonize Technology Limited (Green Circle) on September 4, 2026. Under this partnership, the Sanvo group has been appointed as the exclusive supplier and sole manufacturer for the large-scale production of Green Circle's BocaPCM-TES Panels within the People's Republic of China.

This move aligns with Sanvo's ongoing review of opportunities to broaden its business portfolio. The global market for energy-efficient products is exceptionally large, driven by robust demand, and the company's directors believe that energy consumption needs will continue to rise in the future. The collaboration is expected to deliver mutual strategic advantages by pairing the group's operational flexibility and manufacturing strength with Green Circle's award-winning energy-saving technology, creating significant cross-industry synergies.

As the exclusive manufacturing partner, the group will take full responsibility for production, enabling Green Circle's management to focus on research and development, product design, and market expansion. The agreement also outlines the framework for the proposed cooperation, further advancing the relationship the parties intend to build.

The operational synergies between the group's material manufacturing platform and Green Circle's technology are anticipated to reduce overhead costs, supply chain bottlenecks, and expenses related to operational risks. This is expected to accelerate the time-to-market for BocaPCM-TES Panels and allow for a rapid scale-up in production to meet urgent market demand ahead of schedule. After considering these factors, the board believes that entering into this partnership aligns with the overall interests of the company and its shareholders.