Hong Kong – 30 September 2026 – Anhui Conch Cement Company Limited (“Conch Cement”) disclosed that its 27%-owned subsidiary China Conch Environment Protection Holdings Limited (“Conch Environment Protection”), via units Anhui Conch Environment Group and Wuhu Conch Environmental Protection, has executed four Equity Interests Transfer Agreements to purchase 100% stakes in four medical-waste disposal companies from Anhui Haijing Industrial Investment Partnership.
Key transaction terms • Aggregate consideration: RMB307.00 million (USD42.1 million) in cash, matching the independent valuation. • Targets: Tianjin Hanyang (RMB136.00 million), Shenyang Hanyang (RMB109.00 million), Dalian Hanyang (RMB37.00 million) and Tieling Hanyang (RMB25.00 million). • Payment: Lump-sum settlement within 10 business days after completion; completion expected within 30 days of meeting conditions precedent, including independent shareholder approval at Conch Environment Protection.
Strategic rationale Medical-waste treatment is a regulated, high-entry-barrier segment with stable fee mechanisms. The four targets hold either regional concessions or long-term government contracts and reinforce Conch Environment Protection’s expansion into Northeast China and the Bohai Rim. Management expects smooth integration, improved asset efficiency and stronger synergies with Conch Cement’s broader environmental-protection and green-transformation strategy.
Financial snapshot of targets (IFRS) • 2025 net profit after tax: Tianjin RMB2.73 million; Shenyang RMB7.27 million; Dalian –RMB0.94 million; Tieling RMB2.05 million. • 5M26 net profit after tax: Tianjin RMB1.79 million; Shenyang RMB5.80 million; Dalian RMB5.20 million; Tieling RMB1.49 million. • Combined net assets at 31 May 2026: RMB154.29 million, implying a purchase price of 1.99× book.
Valuation and assurance Independent valuer Anhui Zhonglian Guoxin adopted an income approach (discounted cash-flow) as of 31 May 2026, arriving at valuations equal to the agreed prices. GTG CPA Limited verified the mathematical accuracy of the cash-flow projections and confirmed compliance with Hong Kong Listing Rules requirements for profit forecasts.
Regulatory and governance considerations • Vendor Anhui Haijing is an associate of Conch Cement’s controlling shareholder, Conch Holdings; the acquisitions are deemed connected transactions under Chapter 14A of the Hong Kong Listing Rules. • Aggregated percentage ratios exceed 0.1% but remain below 5%; hence the deals require announcement but are exempt from independent shareholders’ approval in Hong Kong. • Under Shanghai Stock Exchange rules, the consideration is below 0.5% of Conch Cement’s latest audited net assets, obviating a separate SSE announcement. • Four directors linked to Conch Holdings abstained from voting; all other directors, including independent non-executives, unanimously approved the transactions, deeming terms fair, reasonable and in the interests of shareholders.
Post-transaction impact Upon completion, the four Hanyang entities will become subsidiaries of Conch Cement and Conch Environment Protection, with full consolidation of financial results expected to enhance the group’s environmental-services earnings base and geographic reach.