GEM announced that it has signed an equity transfer contract with Henan Investment Group to acquire a 16.38% stake in the latter's wholly-owned subsidiary, Henan Recycling Group, for Yuan 400 million. Upon completion of the transaction, Henan Recycling Group will become an associate of GEM and will not be included in GEM's consolidated financial statements.
The acquisition is part of GEM's strategic expansion in the circular economy sector, aligning with national trends in promoting circular industries. The company stated that the move will not adversely affect its financial position or operating results, nor will it impact GEM's operational independence.
According to disclosed figures, Henan Recycling Group reported revenue of Yuan 67.3049 million for the period from January to September 2025, with a net loss of Yuan 1.6262 million.
Written by Cora Ji, jiruyan@mysteel.com
