GEM acquires 16.38% stake in Henan Circular Technology Group

GEM, a leading player in the circular economy, announced the acquisition of a 16.38% equity stake in Henan Circular Technology Industry Group Co., Ltd. for 40,000 yuan. The transaction, formalized with Henan Investment Group Co., Ltd. on December 12, 2025, aims to bolster GEM's strategic layout in the circular industry and foster its development.

Following the acquisition, Henan Circular Group will become an associate company of GEM and will not be consolidated into GEM’s financial statements. The valuation for the 16.38% stake was based on an appraisal report, which assessed Henan Circular Group's total shareholder equity at 244,185.17 yuan as of May 31, 2025.

The acquisition is not classified as a related-party transaction or a major asset restructuring, and does not require approval from the board of directors or shareholders. This move is expected to support the growth of the circular industry, aligning with national development trends, and is not anticipated to adversely affect GEM's financial standing or operational independence.