Securities code: Huaxin Cement Co.Ltd(600801) , 900933 securities abbreviation: Huaxin Cement Co.Ltd(600801) , Huaxin B-share Announcement No.: 2022015 Huaxin Cement Co.Ltd(600801)
Explanatory announcement on the operation of the company and matters related to the B to h scheme
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Huaxin Cement Co.Ltd(600801) shares Co., Ltd. (hereinafter referred to as “the company” or ” Huaxin Cement Co.Ltd(600801) “) on the application for listing and listing of domestic listed foreign shares on the main board of the stock exchange of Hong Kong Limited by introduction (hereinafter referred to as “B to h scheme”), It has been approved by the China Securities Regulatory Commission and approved by the Listing Committee of the stock exchange of Hong Kong. At present, it is entering the key time point of cash option declaration and cross-border custody transfer of overseas shareholders. In order to ensure the smooth implementation of the company’s plan from B to h, the relevant information of the company is introduced as follows to facilitate investors to have an in-depth understanding of the company.
1、 The company is a competitive leader in China’s cement industry
Founded in 1907, the company is one of the earliest cement enterprises in China. It is a Chinese cement enterprise that has survived for more than 100 years and has always maintained vitality. By the end of 2021, the company has a total capacity of 116 million tons / year of cement grinding in 14 provinces and cities in China and eight overseas countries (the seventh in the world), 43.8 million m3 / year of commercial concrete, 154 million tons / year of aggregate (the second in China), 700 million cement bags / year and 5.53 million tons / year of waste disposal.
2、 The company achieved high-quality, high-speed and high-efficiency development in 2021
In 2021, the company set the set goal of doubling in five years, deepened the implementation of the four strategies of “integrated development, overseas development, business expansion of high-tech building materials and traditional industry + digital innovation”, adhered to the business strategy of “stable price, stable quantity and stable operation”, maintained the stability of business performance, made new breakthroughs in various work, and made a good start for the development of the 14th five year plan.
(I) stick to the red line awareness of safety and environmental protection and consolidate the foundation of enterprise development
All of its factories have achieved 100% licensed sewage discharge, and factories along the river have achieved “near zero” discharge of wastewater. The qualified rate of product supervision and random inspection of market supervision departments at all levels reached 100% throughout the year.
By strengthening the monitoring of annual repair quality and daily operation risk of key equipment, and improving the use of alternative energy, the traditional heat consumption of cement products decreased by 15.7kcal/kg during the year, and the comprehensive energy consumption of comparable clinker in 11 kiln line factories was lower than 100kgce / T.
The world’s first “automatic production line for brick making from cement kiln flue gas CO ν 4 carbon absorption” jointly developed by the company and Hunan University was successfully put into operation in Huaxin Wuxue Industrial Park.
C180 super high performance concrete with stable performance has been developed and successfully applied to bridge projects in Shanghai and other places.
(II) accelerate the implementation of the integration strategy and promote the high-quality development of the company
In terms of cement business, the delivery of M & A assets of Zambian and Malawi cement was successfully completed during the year, with a new cement production capacity of 1.75 million tons; Complete the transformation of 1.5 million T / a cement grinding station of marvini factory in Tanzania; Nepal narayani 3000 t / d cement clinker production line project was ignited and put into operation on January 8, 2022. At present, the company’s overseas cement production capacity has reached 12.19 million tons / year.
In terms of aggregate business, 59 million tons of aggregate capacity was added. After the construction of 700 million tons of aggregate projects, the company will steadily promote the production capacity of 1 billion tons of aggregate projects.
The concrete integration business has been rapidly arranged, and 20 concrete integration stations such as Chibi, Chenzhou, Shuicheng and Zhaotong have been completed and put into operation; Firmly implement the integration strategy along the river, and add two new stations on the basis of the implementation of Changzhou project, with a total new concrete production capacity of 16.7 million m3 / year.
In terms of environmental protection business, alternative fuel projects have been started, standardized design has been completed, and EIA replies have been obtained for 16 projects. The company’s goal is to control the energy consumption of all kilns with a daily output of less than 100GT / CE and a daily output of less than 110kt / CE of clinker through the comprehensive utilization of the kiln’s fuel line.
In terms of emerging industries, Zhuzhou environmental protection brick and Jianchuan environmental protection brick production lines were put into operation, with an additional capacity of 180 million pieces. The first aerated block brick / board factory in Hainan was completed to realize normal production, and the aerated block production line in Yun county was successfully put into operation, with an additional capacity of 850000 m3 / year. Changyang ceramsite, Xiangyang lime and Wanyuan lime projects have been successfully put into operation, with an additional capacity of 390000 tons / year.
3、 Business plan of the company in 2022
In 2022, benefiting from the integrated operation and international development, it is expected that the production capacity of cement, aggregate and concrete will expand, and the company will enter a period of rapid growth.
The company has formulated a doubling development plan, which plans to invest nearly 60 billion yuan during the 14th Five Year Plan period, continuously upgrade the business sectors of cement, aggregate, concrete, new materials and environmental protection, and promote the transformation and upgrading of enterprises and high-quality development
Exhibition. In 2021, the company’s capital expenditure was about 7.16 billion yuan, an increase of nearly 68% over 2020. In 2022, the company plans to make capital expenditure of about 12.2 billion yuan to rapidly promote the implementation of the company’s development strategy.
4、 Significance of B to h scheme to the company
The company’s b-to-h plan is made on the basis of fully considering the liquidity of China’s B-share transaction and the necessity of the company’s further international development in the future. After the implementation of the plan, it will change the current situation of inactive B-share trading of the company; At the same time, after the implementation of the B to h scheme, it is conducive to further improve the corporate governance structure, accelerate the internationalization process of the company, improve the company’s popularity and international influence, improve the operation level of overseas capital, and make full use of overseas capital resources and market incentives to further strengthen its competitiveness. The company’s B to h plan is in line with the company’s development strategy and is conducive to the company’s long-term development.
The company hopes that the shareholders will fully realize Huaxin Cement Co.Ltd(600801) existing competitive strength and potential development ability and support the smooth implementation of the company’s plan of transferring B to H. The company will also adhere to the original intention of “running Hengye with perseverance” and repay investors with better performance.
It is hereby announced.
Huaxin Cement Co.Ltd(600801) board of directors March 10, 2022
