COSMOS MACH(00118) is planning to sell all its shares in Hefei Datong Gran Plastic Industry for 48 million yuan.

COSMOS MACH (00118) announced that on August 13, 2026 (after trading hours), the seller, Grand Technology Products Co., Ltd. (a wholly-owned subsidiary of the company), entered into a share transfer agreement with the buyer, Hefei Grandmei New Materials Co., Ltd., pursuant to which the seller has agreed to sell all the equity of the target company, Hefei Datong Grand Plastic Industry Co., Ltd., for a price of 48 million RMB, and the buyer has agreed to acquire it for that amount. The domestic home appliance industry's end-market demand is weak, coupled with consumption downgrade and the normalization of price wars, putting long-term pressure on the target company's profit margins. Despite management's efforts to reduce labor costs and waste through optimized production processes and smart management, the sharp rise in plastic raw material prices in the first half of 2026 further squeezed profitability. Given that the target company is solely a processing factory specializing in home appliance plastic components, its single processing business model lacks sustainable growth prospects under the influence of the aforementioned adverse factors (this situation is reflected in the target companys continuous profit decline over the past three years). The group has also considered the potential costs and management resources required for liquidating the target company, as well as third-party interest in the target company's business. Therefore, the group has decided to sell the target company to reallocate resources to other business segments with growth potential, thereby enhancing the group's overall competitiveness.