GEM Co., Ltd. (002340.SZ): Green Cycle intends to transfer the equity of three subsidiaries, collectively recovering funds of 922 million yuan.

GEM Co., Ltd. (002340.SZ) issued an announcement that, in accordance with the company's strategic goal of optimizing asset structure through asset transfer in 2024, on December 26, the company's controlling subsidiary, Jiangxi Green Circulation Industry Co., Ltd. (hereinafter referred to as "Green Circulation"), signed a equity transfer agreement with Henan Circular Technology Industry Group Co., Ltd. (hereinafter referred to as "Henan Circular Group"). Green Circulation transferred 100% equity of its holding subsidiary, Henan Green Circulation Electronic Waste Disposal Co., Ltd. (hereinafter referred to as "Henan Green Circulation"), 90% equity of Shanxi Hongyang Haiou Waste Electrical and Electronic Product Recycling Co., Ltd. (hereinafter referred to as "Shanxi Hongyang Haiou"), and 100% equity of Inner Mongolia Xinchuang Resource Recycling Co., Ltd. (hereinafter referred to as "Inner Mongolia Xinchuang") to Henan Circular Group. After this transfer, the company no longer holds the equity of Henan Green Circulation, Shanxi Hongyang Haiou, and Inner Mongolia Xinchuang. This transaction involves the company's three designated electronic waste disposal enterprises in Henan, Shanxi, and Inner Mongolia. The company fully transferred the equity of Henan Green Circulation, Shanxi Hongyang Haiou, and Inner Mongolia Xinchuang to Henan Circular Group. This is an implementation of the good complementary advantages between state-owned and private enterprises, leading the circular industry from model-led to scale-led, in line with the current trend of national development in the circular industry. Through this equity transfer, the company received a total of 922 million yuan (including 242 million yuan of fund subsidies recently announced by the Ministry of Finance), which will help reduce the debt ratio, expand development funds, and enhance the company's competitiveness and profitability.