Dongwu Cement International (HKG:0695) agreed to sell its wholly owned rare earth subsidiary, Orient Chengzheng Rare Earth, for HK$10 million to Great Ease Holdings, according to a Sept. 12 Hong Kong bourse filing.

Shares of the cement manufacturer were down nearly 6% in Monday mid-day trade.

Completion is conditional on the purchaser settling at least half of the disposal group's outstanding trade receivables, among other requirements.

Dongwu Cement said the rare earth unit had underperformed, posting net losses of HK$9.2 million in 2023 and HK$27.8 million in 2024.

It expects to recognize a disposal gain of about HK$3.9 million, with net proceeds of roughly HK$3.2 million to be used as general working capital.

The sale will allow it to focus on its core cement operations and improve liquidity.