China CBM Group (HKG:0578) says that it has entered into a preliminary non-legally binding framework agreement with a JV partner regarding the disposal of its 40% interest in the JV company, Henan Yulong Energy Development Co., Ltd.. The details of the transaction have not yet been fixed and materialized.

China CBM Group also warns that it may record a significant decrease in profit for the year of 2011 compared to 2010 mainly due to occasion suspension of coal mines of the company during the year.

The company plans to announce its 2011 results next month.