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Huaxin Cement Co., Ltd.Announcement on Suspending the Acquisition of Hubei Jingl

2010-03-0228128次
Stock Codes: A Share 600801   B Share 900933                         Ref: Lin 2010-001
 
Huaxin Cement Co., Ltd.
Announcement on Suspending the Acquisition of Hubei Jinglan Cement Co., Ltd
 
The Board of Directors of the Company and its members guarantee that there is no 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 contents.
 
On July 23rd, 2009, the Forth Meeting of the Sixth Board of Directors of the Company has reviewed and approved the Proposal in respect of Acquisition of Hubei Jinglan Cement Co., Ltd..  The Board has approved the follow-up due diligence, including financial auditing, assets evaluation, legal due diligence investigation and etc.  The above was disclosed in "China Securities Journal', "Shanghai Securities News" and “Hong Kong Commercial Daily" on July 25, 2009.
 
After the announcement, the Company actively started relevant due diligence in respect of acquisition of Hubei Jinglan Cement Co., Ltd..  However, the acquisition has failed to be completed within the time limit December 26, 2009 agreed by two sides.  Since then, Hubei Jinglan Cement Co., Ltd. immediately sent a letter to the Company, proposing to suspend the implementation of relevant cooperation agreement.  According to the agreement signed by two sides, Hubei Jinglan Cement Co., Ltd. paid 20 million yuan compensation for breach of contract to the Company.  At this point, the Company's acquisition of Hubei Jinglan Cement Co., Ltd. has been suspended.
 
It is herewith announced.
 
 
 
Huaxin Cement Co., Ltd.
Board of Directors
 
March 2nd, 2010
 
 
 
 
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