Cosmos Machinery Enterprises (HKG:0118) has completed the sale of its entire equity interest in a non-core China unit, according to a Feb. 13 Hong Kong bourse filing.

The disposal follows an agreement under which Cosmos Grand Plastics, an indirect, wholly owned subsidiary of the company, sold its entire equity interest in the target company to its director, Diao Junde, for nearly 4.7 million yuan in cash.

The target, which traded plastic raw materials, had been loss-making for three straight years and had an unaudited net asset value of about 4.7 million yuan as of the end of 2025.

Cosmos Machinery said the unit is no longer a subsidiary and its results will no longer be consolidated.

The group expects a disposal loss of about HK$230,000, subject to audit, with net proceeds to be used for working capital and future investments.