West China Cement Limited Announces Potential Disposal of Assets

Key Points and Implications for Shareholders

Date: 13 March 2026
Company: West China Cement Limited (Stock Code: 2233)

Overview of the Announcement

West China Cement Limited (the Company), together with its subsidiaries (the Group), has made a voluntary announcement regarding the potential disposal of certain assets located in China. This move is aimed at optimizing the Group’s investment structure, reducing its debt ratio, saving on interest costs, and enabling more effective resource allocation. The potential transaction also seeks to strengthen the Group’s strategic focus on key development areas, support overseas market expansion, and enhance overall operational efficiency and long-term competitiveness.

Key Details of the Potential Disposal

• Current Status: The Company is in preliminary discussions with a potential buyer regarding the disposal. As of the date of the announcement, negotiations and due diligence are still at an early stage. No legally binding or definitive agreement has been signed, and major terms have yet to be determined.
• Strategic Rationale: The planned disposal is part of a broader strategy to:
  • Optimize investments
  • Lower debt and interest costs
  • Improve resource allocation
  • Strengthen focus on strategic development areas
  • Expand and deepen presence in overseas markets
  • Boost operational efficiency and long-term competitiveness
• Transaction Classification: If the disposal proceeds, it will constitute a notifiable transaction under Chapter 14 of the Hong Kong Listing Rules. More importantly, since the potential buyer is an associate of Conch International Holdings (HK) Limited (a substantial shareholder and connected person under Chapter 14A), the transaction will also be classified as a connected transaction. This classification will require additional disclosure and possibly shareholder approval.
• Uncertainty and Risks: The Company emphasized that the transaction is subject to multiple conditions, including:
  • Successful commercial negotiations
  • Completion of due diligence by the buyer
  • Execution of a definitive agreement with mutually agreed terms and conditions

  The Company also highlighted that macroeconomic conditions, industry policy shifts, and market fluctuations could impact whether the transaction proceeds. There is no assurance that the disposal will ultimately materialize.

Important Considerations for Shareholders

• Potential Share Price Impact: As the disposal could result in a material change to the Group’s asset base, debt structure, and overall strategic direction, the news is potentially price sensitive.
• Regulatory Implications: The transaction will trigger notifiable and connected transaction requirements under the Listing Rules, which may necessitate further announcements and possibly shareholder approval.
• Exercise Caution: The Board has expressly reminded shareholders and potential investors that the disposal is not guaranteed. Exercise caution when dealing in the shares of the Company until further announcements are made.

Next Steps

The Company will make further announcements in compliance with the Listing Rules as and when appropriate, keeping shareholders and investors informed about any material developments regarding the potential disposal.

Disclaimer: This article is for informational purposes only. The potential disposal described herein is at a preliminary stage, and there is no certainty that it will proceed. Investors are advised to exercise caution and consult their own professional advisers before making any investment decisions. The Company will provide further updates as required by the Listing Rules.

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