(Hong Kong, 30 October 2019) – China Resources Cement Holdings Limited ("China Resources Cement" or the "Company", SEHK stock code: 1313, and together with its subsidiaries, the "Group") announces that its wholly own subsidiary, China Resources Cement Holdings (Hong Kong) Limited ("CR Cement HK"), YCIH Green High-Performance Concrete Company Limited ("YCIH Concrete") and China International Capital Corporation Hong Kong Securities Limited has entered into a cornerstone investment agreement.
CR Cement HK has subscribed 40,164,000 H shares of YCIH Concrete at the global offer price of HK$3.36 per share, representing approximately 8.61% of its total issued share capital and a total consideration HK$134,951,040. The H shares of YCIH Concrete will be listed and traded on the main board of The Stock Exchange of Hong Kong Limited with effect from 31 October 2019.
On 24 June 2019, the Company and Yunnan Construction and Investment Holding Group Co., Ltd. ("YCIH Group"), the controlling shareholder of YCIH Concrete, entered into a strategic cooperation agreement, whereby the parties shall launch comprehensive cooperation on the business of cement, concrete and aggregates. YCIH Group holds approximately 60.05% of YCIH Concrete's total issued share capital. The Company's becoming of a strategic shareholder of YCIH Concrete marks a substantive and key step taken by the parties in the strategic cooperation. The parties' cooperation will be conductive to raising the Group's market competitiveness in Yunnan province and the development strategy of extension of industry chain.
YCIH Group is a very important state owned enterprise in Yunnan province. It ranked first out of the top 100 enterprises in Yunnan province in 2018. Its business involve investments and construction of infrastructure, investments and development of urban construction, property development, investments and development of tourism and health industries, investment and construction of international projects, covering all construction business in the construction industry. Its operations covers China, South Asia, Southeast Asia, Middle East and Africa.
YCIH Concrete is a leading ready-mixed concrete producer in China with strong research and development capabilities. The principal businesses of YCIH Concrete include the production and sale of ready-mixed concrete, polycarboxylic admixtures and aggregates, as well as the provision of concrete-related quality and technology management services. As at the end of 2018, YCIH Concrete had 59 concrete batching plants with annual production capacity of 21.266 million m3. Its production volume of ready-mixed concrete was 9.137 million m3 in 2018, representing a market share of 14.9% in Yunnan province, ranking first in Yunnan province and sixth in China by production volume.
