Green Energy Group Limited Announces Disposals of Real Estate and Assets: Key Details for Investors

Date: 20 April 2026
Company: Green Energy Group Limited (Stock Code: 979)

Overview

Green Energy Group Limited (“the Company”) has issued a supplemental announcement regarding the disposals of certain real estate and assets. This move follows the suspension of its plastic recycling business in August 2025. The announcement provides further clarity on the rationale, valuation, and implications of these disposals, which are potentially price sensitive and could impact the Company’s share value.

Key Points in the Report

• Assets Disposed: The disposals include real estate (industrial buildings and warehouses) in Germany, originally acquired in September 2016, and production machineries and other assets mostly in use since 2012.
• Carrying Values and Considerations:
  • Real Estate: Unaudited carrying value as of 28 February 2026 was approximately EUR660,000 (HK\$6,178,000), down from an original cost of EUR1,100,000 (HK\$10,296,000) after accounting for accumulated depreciation and impairment losses.
  • Assets: Unaudited carrying value as of 28 February 2026 was approximately EUR82,000 (HK\$767,000), with an original cost of EUR978,000 (HK\$9,154,000) and significant accumulated depreciation.
  • The consideration for both real estate and assets (the “Total Consideration”) was set based on their carrying values, further adjusted for ongoing depreciation up to completion of the disposals.
• High Holding Costs: Since suspending operations, the Group has continued to incur significant monthly overheads (~EUR40,000/ HK\$374,000), including staff costs to maintain compliance with German regulatory requirements, plus monthly depreciation expenses (~EUR8,300/ HK\$77,700).
• Risks and Market Conditions:
  • Difficulty in finding buyers due to the poor prospects for plastic recycling in Germany and volatile economic conditions.
  • Geopolitical risk from the 2026 Iran war, with potential to impact asset value and business stability.
  • The only interested buyers were the Real Estate Purchaser and Asset Purchaser, making the agreed price effectively the “market price” in current conditions.
• Financial Impact:
  • The disposals are expected to result in aggregate losses of approximately HK\$1,486,000 for the Group, but the Board considers this preferable to incurring further holding costs and the risks of further impairment or failing to find future buyers.
  • Monthly depreciation and overheads would quickly erode any potential gain from waiting for better offers.
• Complexity and Cost of Alternative Disposal:
  • Selling the real estate and assets separately, or not on an “as is” basis, would require significant time (at least 6 months) and costs (not less than EUR100,000/ HK\$936,000) for vacating, cleaning, and repairing the assets, plus additional environmental assessment and possible intensive soil cleaning (at least EUR150,000/ HK\$1,404,000).
  • Some machinery is not in working condition and would require professional repair, with outdated models potentially causing additional delays.
• Sale Terms:
  • The Purchasers have agreed to acquire the assets on an “as is” basis and will continue the plastic recycling business, saving the Company from incurring significant additional costs and time for clean-up and asset repairs.
  • Completion of the disposals is scheduled for 30 April 2026.

Shareholder Considerations & Price Sensitive Information

• Expected Losses: The disposals will result in a booking of losses (~HK\$1,486,000), potentially impacting the Company’s profitability and possibly its share price in the short term.
• Reduction of Ongoing Costs and Risks: By disposing of these assets, the Company will cease to incur significant monthly staff and overhead costs, and will avoid the risk of asset devaluation and regulatory issues.
• Market Sentiment: The announcement highlights the Company’s proactive approach to mitigating further losses and addressing operational inefficiencies, which may be viewed positively or negatively by investors depending on risk appetite and sentiment regarding the Company’s future direction.
• Geopolitical Exposure: The reference to the 2026 Iran war and its potential impact on German assets could raise concerns about the Company’s exposure to global risks and the security of its overseas operations.
• Asset Sale at a Discount: The Company is selling below carrying values, reflecting the lack of market interest and the high cost of alternative strategies, which could be seen as a prudent, if unsatisfactory, outcome given current market conditions.

Management Statement

The Board, led by Co-Chairman Lo Kam Wing JP, emphasizes that the disposals, though resulting in losses, are in the best interests of the Company and its shareholders as a whole, as they prevent continued high holding costs and mitigate further risks associated with the assets.

Directors

• Mr. Lo Kam Wing JP (Co-Chairman & Executive Director)
• Mr. Shao Mingbiao (Executive Director)
• Mr. Ho Wai Hung (Executive Director)
• Mr. Tam Chun Wa (Independent Non-Executive Director)
• Mr. Man Kwok Leung (Independent Non-Executive Director)
• Ms. Chan Corrie Wai Yan (Independent Non-Executive Director)

Exchange Rate Disclaimer

All amounts are translated at an exchange rate of EUR1 : HK\$9.36 for illustration purposes only. No representation is made that such rates were or will be achieved.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult a financial advisor before making investment decisions. The information has been compiled from the official supplemental announcement of Green Energy Group Limited dated 20 April 2026 and is subject to change without notice. The author and publisher accept no liability for any loss arising from the use of this information.

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