Tianshan Cement to transfer production quotas in strategic asset divestment

Xinjiang Tianshan Cement will transfer 4,500 tons per day (1.35 million tons) of cement clinker production capacity quotas from two subsidiaries for a total of 80.4 million yuan. Gansu Qilianshan Cement Group Co., Ltd., a related party, emerged as the sole bidder. The transaction, approved by the board on December 12, 2025, constitutes a connected transaction due to a former senior executive's current role at Qilianshan Cement.

Additionally, the company plans to divest 17,850 tons per day (5.355 million tons) of clinker production capacity from seven other subsidiaries, targeting approximately 297.5265 million yuan. The cumulative connected transactions with Qilianshan Cement in 2025, including this latest transfer, total approximately 810 million yuan.

These transfers aim to optimize resource allocation, realize asset monetization, and enhance value. The first transfer is expected to increase net profit by approximately 65.24 million yuan, representing 10.90% of the previous year's audited net profit. The associated production lines will be decommissioned following the quota transfers, potentially incurring additional gains or losses.