Soochow Cement sells its rare earth business and continues to focus on cement!

On October 17, Dongwu Cement announced that it would sell its wholly-owned subsidiary, Dongfang Chengzheng Rare Earth Co., Ltd. (Target Company). Pursuant to the Sale and Purchase Agreement, the consideration for the Disposal is HK $10 million. Screenshot

from the announcement After the sale, the Target Company will no longer be a subsidiary of the Company, and its financial results will no longer be consolidated into the consolidated financial statements of the Company. It is expected that the sale will bring about a gain of approximately HK $3.85 million. According

to Dongwu Cement, the Group believes that the Disposal will enable the Group to streamline its operations and enhance its overall financial performance by focusing its financial resources on the Group's cement business and improving its cash flow liquidity and financial flexibility.

The Board believes that upon completion of the Disposal, the Group's continued focus on its core cement business will ensure that it has sufficient scale of operations and asset value to support its ongoing operations.

According to cement big data, Dongwu Cement has two 1 million tons/year grinding stations

in Suzhou City, Jiangsu Province.