China CBM Group Company Limited (Stock Code: 8270) has entered into an agreement on 24 November 2025 to dispose of its entire 100% equity interest in Shanxi Qinshui Shuntai Energy Development Company Limited. The purchaser, Shanxi Shenggang Energy Company Limited, will acquire the equity interest for a cash consideration of RMB24,609,319.04.

According to the announcement, the group’s net gain on the disposal is estimated to be approximately RMB66.6 million, based on the unaudited net liabilities of RMB42 million in the target company as of 31 July 2025 and the agreed consideration. The transaction will result in the target’s financial results no longer being consolidated into China CBM’s statements after completion.

Completion is subject to shareholder approval at a special general meeting and the transfer of 8% equity in another entity held by the target. Upon fulfillment of these conditions, the purchaser will release part of the payment from a jointly controlled account, while the remainder is contingent on a government subsidy receipt. The group expects net proceeds of around RMB23.9 million and plans to allocate RMB10 million toward research and development of C-H to Synthesis natural gas production, RMB10.2 million for a proposed equity acquisition in Shanxi Wanzhi Logistics Limited, and approximately RMB3.7 million for general working capital.

The disposal is classified as a very substantial disposal under the GEM Listing Rules, requiring reporting, announcement, and circular disclosure. A circular with further details will be sent to shareholders on or before 15 December 2025. Shareholders and investors are advised to exercise caution when dealing in the company’s shares.