Stock Codes: 600801, 900933  Stock Abbreviations: Huaxin Cement, Huaxin B Share  Ref: Lin 2011-029

 

To the best of our knowledge, the Board of Directors of the Company and its members confirm that there is no material false or misleading statement or material omission in this announcement and shall be severally and jointly liable for the truthfulness, accuracy and completeness of its content.

 

Huaxin Cement Co., Ltd. (hereinafter called “the Company”) received the notification from its biggest shareholder -- Holchin B.V. and the party acting in concert with Holchin B.V. -- Holpac Limited.  Holpac Limited has purchased B-shares in the Company through the trading system of Shanghai Stock Exchange on December 23, 2011.  Detailed information is as follows:

 

General Situation:

1.      Share Purchaser: Holpac Limited

Both Holpac Limited and Holchin B.V. are controlled by Holcim Ltd..  Holcim Ltd. has 100% shareholding of Holpac Limited.

 

2.      Aim of the Share Increase:

To show the confidence in the stable and sustainable development of the Company through Share Increase.

 

3.      Approach of Share Increase:

Purchased shares through the trading system of Shanghai Stock Exchange

 

4. Quantities and Proportions of the Share Increase:

Holpac Limited has purchased B-shares in Huaxin Cement through the trading system of Shanghai Stock Exchange on December 23, 2011.  The quantity of B shares purchased is 16,261,336, accounting for 1.74% of the total shares issued by Huaxin Cement.  Before the Share Increase, Holchin B.V. held 373,010,636 shares (including 201,488,036 A shares and 171,522,600 B shares) in Huaxin Cement, accounting for 39.88% of all shares of Huaxin Cement, and it is the largest shareholder of Huaxin Cement; the party acting in concert with Holchin B.V., Holpac Limited did not hold any shares in Huaxin Cement.  After the Share Increase, Holchin B.V. still holds 373,010,636 shares (including 201,488,036 A shares and 171,522,600 B shares) in Huaxin Cement, accounting for 39.88% of all shares of Huaxin Cement; Holpac Limited holds 16,261,336 B shares in Huaxin Cement, accounting for 1.74% of all shares of Huaxin Cement.  The total shares held by Holchin B.V. and its concert parties amount to 41.62% of all shares of Huaxin Cement.

 

5. Share Increase Plan in future

During the next 12 months since the initial date of this Share Increase, Holchin B.V. and its concert parties will continue to increase shares of Huaxin Cement through the trading system of Shanghai Stock Exchange.  The shares continuing to be purchased will be not more than 2,351,132 shares (together with this Share Increase not exceeding 18,612,468 shares) and will be not more than 0.25% of all issued shares of Huaxin Cement (together with the initial increase not exceeding 1.99% of all shares issued by Huaxin Cement).

 

This Share Increase is fully consistent with the applicable laws and regulations, such as PRC Securities Law, departmental regulations, and relevant business rules issued by Shanghai Stock Exchange. Upon the completion of the whole share increase plan, Holchin B.V. will file the application to CSRC for the exemption from the compulsory offering obligation.

 

The largest shareholder Holchin B.V. and its concert parties hereby undertakes that it has not reduced and will not reduce its shareholding in Huaxin Cement during the time period of the implementation of the whole Share Increase plan

 

It is herewith announced.

 

Huaxin Cement Co. Ltd.

Board of Directors

Dec 27, 2011