Dongwu Cement International Limited (695) published a circular on 17 October 2025, indicating that it entered into a sale and purchase agreement on 12 September 2025 to sell its wholly owned subsidiary, Orient Chengzheng Rare Earth Co., Limited, with completion subject to approval at an extraordinary general meeting (EGM).

According to the circular, the subsidiary’s net asset value was approximately HK$6.15 million as of 30 June 2025, and the agreed consideration for the disposal is set at HK$10 million. Following completion, Dongwu Cement International Limited will cease to hold any shares in the target company, and its financial results will no longer be consolidated into the group’s statements.

The board explained that the rare earth segment has underperformed in recent years and expects the disposal to enable a streamlined focus on the group’s principal cement business. Shareholders are invited to vote on the transaction at the EGM, scheduled for 5 December 2025 in Shanghai, People’s Republic of China. The proposed disposal has been classified as a major transaction under the Listing Rules and is therefore subject to the required approvals outlined in the circular.