China Resources Cement Holdings chairman resigns

China Resources Cement Holdings chairman resigns
Published: 21 October 2011

The board at China Resources announced that Madam Zhou had tendered her resignation from the positions of the chairman of the Board, the executive director of the company, the chairman of the executive committee, the member of the nomination committee and the authorised representative of the company with effect from 21 October 2011, due to her pursuit of other work allocation by the China Resources Group.

Madam Zhou had confirmed that she has no disagreement with the Board and there are no other matters that need to be brought to the attention of the shareholders of the company in relation to her resignation.

The Board would like to take this opportunity to express its gratitude and appreciation to Madam Zhou for her valuable contributions to the company.

The Board is pleased to announce that with effect from 21 October 2011, Mr Zhou has been appointed as the chairman of the Board, the chairman of the executive committee and a member of the nomination committee in place of Madam. Zhou. Mr Pan has been appointed as an executive director of the company, a member of the executive committee and to replace Mr Zhou as the chief executive officer of the company, and Mr LAU has been appointed as the authorised representative of the company in place of Madam Zhou.

Meanwhile, China Resources Cement  is down 6.4% at HK$5.01 as the stock falls victim to a broad market sell-off (the HSI is down 2.3%) with continuing uncertainty over Europe’s debt crisis hurting risk-sentiment. The company has recently agreed to buy an entire stake in a Fujian clinker, namely Fujian Zhangping Zhenhong for CNY292m, which will be settled by CRC’s internal resources.

Still, the acquisition isn’t expected to exert pressure on the company’s financial position. Its market cap is at HK$33.12bn.

Zhanging operates a 2500tpd clinker production line and two cement grinding lines with an aggregate annual production capacity of 1Mt. "The acquisition will complement the company’s long-term expansion plan and strengthen its market position in Fujian Province by virtue of the strategic location of the clinker and cement production lines," says South China Research.