Huaxin Cement Terminates Plan for Spin-off Listing of Overseas Subsidiaries

On the evening of October

8, Huaxin Cement (600801) announced that the company had decided to terminate the planning of the spin-off listing of overseas subsidiaries.

The announcement shows that Huaxin Cement originally planned to integrate all the overseas assets of its subsidiaries that actually carried out production and operation into the overseas subsidiaries to be established by the company or its subsidiaries, and to apply for the spin-off of the subsidiaries to be listed on overseas stock exchanges. After full communication and careful demonstration with relevant parties, as the time required for the spin-off listing exceeds expectations, combined with the stable growth of the company's overseas business and considering future market changes, there is a problem before the completion of the spin-off listing. At that time, the net profit of the subsidiary to be split according to the equity in the consolidated statement of the latest fiscal year exceeds 50% of the net profit attributable to the shareholders of the listed company, and then no longer meets the relevant provisions of the Rules for the Split of Listed Companies (Trial Implementation). After comprehensive consideration of the above situation, the company decided to terminate the planning of the spin-off listing.

Huaxin Cement said that the termination of the planned spin-off listing would not have a significant adverse impact on the company's production and operation activities and financial situation, nor would it adversely affect the implementation of the company's overall strategic plan in the future.