HX BLDG MAT (06655.HK) unit to sell 400,000 tpa cement clinker capacity quota for RMB64 million

NewTimeSpace News: On November 9, 2026, Huaxin Building Materials Group Co., Ltd. (06655.HK/600801.SH) announced that its controlled wholly-owned subsidiary Huaxin Cement (Changyang) Co., Ltd. signed a supplementary agreement on the same day with Hubei Yihua Chuxing Ecological Technology Co., Ltd. to transfer the 400,000 tonnes-per-annum clinker capacity quota of a 4,000 tonnes-per-day clinker production line to Yihua Chuxing for a total consideration of RMB64 million.

According to the announcement, the price was reached through fair negotiation with reference to an appraised value by a third-party institution. Beijing Kunyuan Zhicheng Asset Appraisal Co., Ltd. appraised the 400,000 tpa capacity quota at RMB64.072 million using the market approach, with a valuation date of September 30, 2026. Under the payment arrangement, RMB20 million will be paid in cash within ten business days after the supplementary agreement takes effect, and the company has already received the RMB44 million paid by Yihua Chuxing under the original agreement.

The production line commenced operation in September 2009, with an original asset value of RMB352.4553 million (audited) and a net book value of RMB91.7621 million as at September 30, 2026 (unaudited). The company said the line faces rising costs and weakening competitiveness as its limestone resources are depleted and would be unsustainable in the long run; after the transfer, Huaxin Changyang will shut down and dismantle the main equipment of the line in accordance with law, and about RMB60.3774 million of cash is expected to be recovered after deducting all taxes and fees. The transaction does not constitute a connected transaction or a major asset restructuring, does not involve staff resettlement, and will not give rise to additional connected transactions or competition within the same industry.