CNBM (03323.HK): Issues latest extension letters to Ningxia Building Materials and Tianshan Material, proposing further two-year extension of non-competition commitments
NewTimeSpace News: On 9 August 2026, China National Building Material Company Limited (stock code: 03323) published a voluntary announcement, announcing that in August 2026 the Company issued letters (the "Latest Extension Letters") to the covenant companies, namely Ningxia Building Materials Group Co., Ltd. (a subsidiary of the Company, whose A shares are listed and traded on the Shanghai Stock Exchange, stock code 600449, "Ningxia Building Materials") and Tianshan Material Co., Ltd. (formerly known as "Xinjiang Tianshan Cement Co., Ltd.", a subsidiary of the Company, whose A shares are listed and traded on the Shenzhen Stock Exchange, stock code 000877, "Tianshan Material"), regarding the extension of the performance of the non-competition commitments, further extending the performance of the non-competition commitments made by the Company to such covenant companies in December 2017 (the "2017 Commitment Letters").
According to the announcement, under the 2017 Commitment Letters, in respect of the horizontal competition existing before the merger of the Company with the former China National Materials Co., Ltd. and any horizontal competition between the Company and the covenant companies arising from such merger (if any), the Company would, within three years from the date of the 2017 Commitment Letters, promote the integration of relevant businesses through various means in accordance with relevant laws, regulations and regulatory requirements to resolve the horizontal competition issues (the "Commitments"). The Company had previously issued a letter to Ningxia Building Materials on 1 December 2020 extending the performance of the Commitments by three years, and issued letters to the covenant companies on 9 August 2024 extending the performance by two years, with such extensions having been considered and approved by the respective boards of directors and shareholders' meetings of the covenant companies.
The Company stated that it has been committed to performing the Commitments since making them, actively communicating with relevant parties and seeking feasible solutions that neither infringe nor affect the independence of the listed companies while maximising the interests of their public shareholders to resolve the horizontal competition issues; business integration plans for the basic building materials segment must be maturely formulated and steadily advanced under the principles of benefiting the development of the listed companies and safeguarding the interests of their public shareholders. Accordingly, the Company proposes to further extend the Commitments to Ningxia Building Materials and Tianshan Material, to be performed within two years from the date on which the respective shareholders' meetings of the covenant companies approve the extension of the performance of the non-competition commitments, with all other contents of the 2017 Commitment Letters remaining unchanged.
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