Hong Kong stock exchange data reveals that on January 5th, a shareholder of Graphex Group (06128) transferred shares from USB Securities Hong Kong Limited to Cheong Lee Securities. The transferred shares had a market value of HK$18.25 million, representing a 9.1% stake.

Graphex Group announced that on December 1, 2025, the seller (the company's wholly-owned subsidiary, Happy Growth Group Limited), the buyer (M2i Global, Inc.), and the company to be sold (the company's wholly-owned subsidiary, Graphex Technologies LLC) entered into an agreement. Under this agreement, the seller intends to grant the buyer an option for a cash consideration of $500,000 USD (equivalent to HK$3.9 million).

Accordingly, during the option period and subject to certain conditions being met, the buyer may, at its discretion, require the seller to proceed with a potential sale. This would involve the sale of the sale units (equivalent to 100% of the issued and outstanding limited liability units of the company to be sold) to the buyer for a consideration of $100 million USD (equivalent to HK$780 million), to be settled in cash and consideration shares.

The announcement stated that, considering recent geopolitical tensions—including the U.S. Inflation Reduction Act, China's export restrictions on graphite products, and the ongoing trade war—the board anticipates significant challenges for future investments in the United States.

The board believes the potential sale is the most advantageous option for enhancing shareholder value. By leveraging the existing team's capabilities, manpower, and resources to provide basic design and technical support, the group considers the terms and conditions of the potential sale to be beneficial for the company and its shareholders as a whole.

Finally, the potential sale would allow the group to focus on its expansion plans within China.