Conch Cement intends to use 1.76 billion yuan to become the second largest shareholder of West China

Byzengjiaming12

Updated Tue, 11 Jan 2022 09:48:41 GMT

Conch Cement (600585.SH) announced on the evening of the 21st that it intends to use its own funds of RMB 1.76 billion to participate in the subscription of non-public issuance of A shares of China Construction West Construction Co., Ltd. (002302.SZ), the number of subscriptions is 251 million shares (Specifically, the number of shares finally approved by the China Securities Regulatory Commission shall prevail).

On December 21, 2021, Conch Cement and Western Construction signed a "conditional effective stock subscription agreement" and a "conditional effective strategic cooperation agreement" regarding their proposed participation in the subscription of its non-public issuance of A shares. After the completion of the subscription of shares, Conch Cement will hold 16.30% shares of Western Construction and become its second largest shareholder.

In the announcement, Conch Cement further stated that the subscription is to implement the company's "14th Five-Year Plan" development plan and implement the extension and expansion of the upstream and downstream industrial chain around the main cement business.

It is reported that Western Construction is a leading comprehensive service provider for the building materials industry in China and a leading company in the domestic commercial concrete industry. The company intends to further strengthen the strategic cooperation in the fields of supply and marketing of raw materials, concrete business, sandstone and aggregate business, logistics and transportation, and industrial Internet through subscribing to its non-public issuance of A shares. According to the 2020 annual report of Western Construction, its commercial concrete production capacity was 100.82 million cubic meters by the end of 2020, with an increase of 5% year-on-year.

In 2020, Western Construction achieved operating revenue of 23.496 billion yuan, with a year-on-year increase of 2.3%, and realized a net profit attributable to the parent company of 784 million yuan, with a year-on-year increase of 18.70%.