GRAPHEX GROUP (06128) fell more than 23%, trading at HK$0.219 by the time of writing, with a turnover of HK$3.76 million. The decline follows the company's announcement on December 1, 2025, regarding a proposed sale of its U.S. graphene production project.

Under the agreement, the seller (GRAPHEX's wholly-owned subsidiary Happy Growth Group Limited) and the buyer (M2i Global, Inc.) entered into a deal involving the sale of Graphex Technologies LLC, another wholly-owned subsidiary. The seller granted the buyer an option to acquire 100% of the issued and outstanding limited liability units of the subsidiary for US$100 million (approximately HK$780 million), payable in cash and shares. The option fee was set at US$500,000 (around HK$3.9 million).

The board cited increasing geopolitical tensions, including the U.S. Inflation Reduction Act, China's export restrictions on graphite products, and ongoing trade conflicts, as key challenges for future U.S. investments. The sale is seen as a strategic move to enhance shareholder value by allowing the company to focus on its expansion plans in China while leveraging its existing team's expertise in design and technical support. The board believes the terms of the potential sale are favorable to the company and its shareholders.