GEM Co.,Ltd. (002340.SZ) plans to acquire a 16.38% stake in Henan Recycling Group for 400 million yuan.

GEM Co., Ltd. (002340.SZ) announced that the company has signed a "Property Transaction Contract" with Henan Investment Group Co., Ltd. (referred to as "Henan Investment Group"). The company will acquire 16.38% equity of Henan Recycling Technology Industry Group Co., Ltd. (referred to as "Henan Recycling Group"), a wholly-owned subsidiary of Henan Investment Group, for a transaction amount of 400 million yuan. The announcement stated that the company's acquisition of a portion of the equity of Henan Recycling Group is a move to better implement the company's circular industry strategic layout.