Huaxin Cement Co Ltd A

On August 19, several A-share companies disclosed major capital operations. Nanjing Public Utilities received an indirect acquisition of a 54.19 percent stake by the Nanjing municipal state-owned assets group. Litong Electronics plans a private placement to raise no more than 5 billion yuan for building an intelligent computing center. Sieyuan Information signed a 6.45 billion yuan high-performance computing services sales contract. GD Power plans to start acquiring some assets of its controlling shareholder, China Energy Group, involving a total of about 320,000 kilowatts of controlling installed capacity in operation and 13.54 million kilowatts under construction or planned. Sinopharm Modern plans to acquire a 51 percent stake in Guorui Pharmaceutical for 406 million yuan. Minxin Micro plans to acquire a 54 percent stake in Beijing Putian Optoelectronics for 177 million yuan. In addition, Huaxin Building Materials shareholder Huaxin Group plans to increase its stake by 340 million to 680 million yuan. Hengrui Medicine plans to repurchase its A-shares for 1 billion to 2 billion yuan. On the capital side, main funds in the Shanghai and Shenzhen markets saw a net outflow of 193.964 billion yuan that day, with coke, shipping ports, and wind power equipment sectors receiving the largest net inflows from main funds.

In the first half of 2026, domestic cement industry performance generally declined, and overseas business became a breakout lever for a few companies. Tapai Group, which has disclosed its half-year report, posted operating revenue of 1.742 billion yuan, down 15.3 percent year on year, and net profit attributable to the parent of 219 million yuan, down 49.6 percent year on year. Qingsong Jianhua posted operating revenue of 1.574 billion yuan, down 11.05 percent year on year, and net profit attributable to the parent of 124 million yuan, up 13.19 percent year on year. Huaxin Cement expects first-half net profit attributable to the parent of 1.65 billion to 1.76 billion yuan, up 50 to 60 percent year on year, mainly benefiting from high prosperity in overseas markets such as Africa and Central Asia. Analysts pointed out that the current price increases are mainly forced by high coal prices and large-scale industry losses, demand has not yet substantially recovered, room for cement price rebounds in the second half of the year is limited, and the foundation for industry profit recovery is fragile.

Over the past month, companies on the Shanghai Stock Exchange main board have added a total of 91 new buyback and shareholding increase plans, with amount caps exceeding 26 billion yuan. According to statistics, from July 19 to August 18, the Shanghai main board saw 57 new buyback plans, with planned buyback caps of about 14.5 billion yuan, and 34 new shareholding increase plans, with planned increase caps of about 11.5 billion yuan. On the evening of August 19, Foxconn Industrial Internet disclosed its first buyback of 2.41 million shares, worth 149 million yuan. Huaxin Cement's shareholder Huaxin Group plans to increase its stake by 340 million to 680 million yuan. CCCC Design and Consulting's controlling shareholder subsidiary CCCC Capital plans to increase its stake by 80 million to 160 million yuan. In addition, companies such as Huayou Cobalt, Sany Heavy Industry, China Three Gorges Renewables, and China State Construction Engineering also disclosed buyback or shareholding increase plans in late July, and some have already entered a rapid implementation phase.

Huaxin Building Materials announced that shareholder Huaxin Group, which holds more than 5 percent of the company, plans to increase its holdings of the company's A-shares over the next 12 months, with the purchase amount no less than 340 million yuan and no more than 680 million yuan. In the first quarter of 2026, the company achieved revenue of 8.909 billion yuan and net profit attributable to the parent of 630 million yuan.

Huaxin Cement announced plans to acquire shares in Holcim Philippines Inc. through its controlling wholly-owned subsidiary Huaxin Central Asia Investment in two stages, involving indirect and direct holdings by Holderfin B.V. In the first stage, based on an enterprise value of 780 million US dollars for 100 percent of HPI's equity, it will acquire a 67.62 percent stake in HPI indirectly by purchasing shares in three holding companies, for a consideration of approximately 527 million US dollars. In the second stage, after three years, it may acquire the approximately 31.38 percent stake directly held by the seller through the exercise of a call option or put option, for a consideration of no less than 280 million US dollars. This transaction constitutes a connected transaction, but Huaxin Cement believes it will benefit its overseas business development and expansion into new markets, and HPI is expected to become another important profit contributor for it in Southeast Asia. HPI has four large cement plants and one grinding station in the Philippines, with an annual clinker capacity of 5.2 million tonnes and cement capacity of 9 million tonnes. In 2025, its revenue was 375 million US dollars and net profit was negative 65.271 million US dollars.

Huaxin Building Materials announced that it expects net profit attributable to shareholders of the listed company for the first half of 2026 to be between 1.65 billion and 1.76 billion yuan, representing a year-on-year increase of 50% to 60%. During the reporting period, the domestic integrated business remained stable amid market competition, all overseas businesses showed steady growth and achieved efficient operations, and the company's performance improved steadily.