Conch Cement has announced that its wholly-owned subsidiaries, Hefei Conch and Ulanqab Conch, have entered into agreements to acquire cement assets located in Chaohu City and Ulanqab City.

The respective purchase prices are approximately RMB 275 million and RMB 344 million, resulting in a maximum total consideration of around RMB 691 million.

Following the completion of the acquisitions, Hefei Conch will lease the approximately 295 mu of land occupied by the acquired assets from Wanwei High-Tech for a period of 20 years.

On the same day, the company also entered into a framework agreement for continuing connected transactions with Wanwei High-Tech.

This agreement covers the period from the completion of the asset purchases until December 31, 2026, and governs the sale and purchase of goods and provision of services between the subsidiaries and Wanwei High-Tech and its subsidiary, Mengwei Technology, due to operational needs.

Under this framework, the maximum total value for the group's sales of goods is set at RMB 37.052 million, purchases of goods at RMB 65.7611 million, and provision of services at RMB 246,000.

The company stated that the acquired cement assets are situated within the existing plant areas of Wanwei High-Tech and Mengwei Technology, where utilities like power lack independent operational conditions.

Utilizing the existing pipeline networks and supporting facilities will enable the parties to sell production materials and by-products to each other locally, facilitating resource recycling.

This arrangement is expected to reduce procurement and transportation costs, enhance overall operational efficiency, and create a mutually beneficial outcome that aligns with the interests of the company and all its shareholders.