GEM subsidiary undergoes equity restructuring, secures new investors

GEM announced that its wholly-owned subsidiary, PT Indonesia Qingmei Energy Materials, will undergo equity restructuring and capital increase, introducing strategic investors including Eternal Oasis Hong Kong Investment Limited and PT Merdeka Energi Utama. This move aims to optimize the capital structure, enter global markets, and enhance competitiveness in the nickel resource downstream industry. Following the restructuring, GEM's total stake in the target company will be diluted from 100% to 29.59%, and the target company will no longer be consolidated into GEM's financial statements.

The capital increase involves various parties subscribing to new ordinary shares, with Eternal Oasis Hong Kong Investment Limited holding 32.52%, PT Merdeka Energi Utama 11.16%, and GEM Jiangsu 29.32%. The restructuring facilitates the integration of MHP product interests and is intended to meet global tariff and market access rules for Europe and America. This transaction will create a passive financial assistance totaling $33,269.51 for GEM, arising from existing intercompany loans.

GEM’s board also approved the addition of 100,000 yen in related party transactions for 2025, specifically for the procurement of MHP from PT ESG New Energy Material and PT Green Eco Nickel. Shareholders are scheduled to vote on these matters at the Fifth Extraordinary General Meeting on November 3, 2025.