Anhui Conch Cement secures $860m in admixture procurement deals

Anhui Conch Cement Company Limited announced two new continuing connected transactions on November 27, 2025, for the procurement of cement admixtures, concrete admixtures, and other admixtures from Anhui Conch Materials Technology Co., Ltd. Both agreements, effective from January 1, 2026, to December 31, 2026, are subject to shareholder approval from Conch Materials Technology.

The "Cement Admixture Procurement Contract" outlines the procurement of cement grinding aids, with a maximum annual value of RMB700 million. The "Concrete and Other Admixtures Procurement Framework Agreement" sets an annual cap of RMB160 million for the procurement of concrete admixtures and other related products. The aggregate annual cap for both agreements totals RMB860 million. These transactions constitute continuing connected transactions under Chapter 14A of the Listing Rules, as Conch Materials Technology is a connected person to the company.

Procurement prices for the admixtures will be determined through public tenders or a competitive inquiry and negotiation process to ensure fair market value. The board of directors, including independent non-executive directors, unanimously approved the transactions. They noted that the agreements are in the ordinary course of business, conducted on normal commercial terms, and are in the best interests of the company and its shareholders. The transactions’ percentage ratios, based on the RMB860 million annual cap, are between 0.1% and 5%, qualifying them for annual review and disclosure requirements but exempting them from independent shareholders' approval under Listing Rule 14A.76(2).