GEM offloads subsidiary to focus on key metal recovery

GEM's controlled subsidiary, Jiangxi GEM Circulation Industry Co., Ltd., has agreed to transfer 100% of its equity in Jiangxi GEM Circulation Material Co., Ltd. to Henan Circulation Technology Industry Group Co., Ltd. The equity transfer amount is 280,000,000 yuan, with a debt transfer amount of 682,464,773.63 yuan. This strategic move aims to optimize GEM's asset portfolio in electronic waste recycling and plastic regeneration, aligning with national green circular industry initiatives.

Following the transfer, GEM will no longer hold equity in GEM Circulation Material, which will cease to be consolidated into GEM's financial statements. The company will instead focus on developing key metal resource recovery businesses, enhancing its technological advantages, and securing a sustainable supply of critical minerals. The transaction is expected to generate an investment income of approximately 10,000,000 yuan, subject to the annual audit.

The equity transfer was reviewed and approved during GEM's Fifth Interim Shareholders' Meeting of 2025, held on November 3, 2025, with 98.0961% of votes in favor. The meeting also approved a related financial assistance proposal and a change in registered address.