West China Cement Limited (the “Company”) and its subsidiaries (collectively, the “Group”) is one of the leading cement producers in Shaanxi Province, with a leading market position in eastern and southern Shaanxi and a presence in Sichuan and Guizhou Provinces, Uzbekistan as well as Mozambique, Democratic Republic of the Congo (“D.R. Congo”) and Ethiopia, Africa. As at 31 December 2025, the Group had a total production capacity of 38.5 million tons, comprising 21 cement production lines, with 21.7 million tons in Shaanxi Province, 1.5 million tons in Sichuan Province, 1.8 million tons in Guizhou Province, 2.5 million tons in Uzbekistan, 2.0 million tons in Mozambique, 2.7 million tons in D.R. Congo and 6.3 million tons in Ethiopia, Africa. Moreover, the Group had total production capacities of 15.0 million tons in aggregates and 12.4 million cubic meters of commercial concrete.

The Group’s cement production is geared towards the economic development of Western China, Uzbekistan, Mozambique, D.R. Congo and Ethiopia, Africa, driven by the Chinese Government’s “Western Development Policy” and the “Silk Road Economic Development Plan”. The Group aims to serve the development needs of Shaanxi, Guizhou, Sichuan, Uzbekistan, Mozambique, D.R. Congo and Ethiopia, Africa supplying cement products to the infrastructure, urban and rural construction markets. The Group’s cement products are used in a variety of infrastructure projects such as highways, railways, bridges, hydroelectric power stations, water conservancy and water transfer projects.

2025 has proved to be a pivotal year for the Group, marked by significant operational change and progress. On the operational side, the Group has seen some deteriorations for its core China operations as a result of the declining national cement demand which led to the decrease in both Average selling prices (ASPs) and gross profit. Internationally, investments in sub-Saharan Africa and Central Asia began to pay off, with those operations have started to contribute significantly to the Group’s profitability. In addition, the Group has embarked on a significant restructuring of its assets as it continues to pursue growth in its newer, overseas markets. In August 2025, the Group completed the disposal of its entire operations in Xinjiang Province, comprising four plants totalling 3.5 million tons of cement capacity, to the Anhui Conch Cement Company Limited group. In December 2025, the Group completed the acquisition of the 1.2-million-ton Cimenterie de Lukala (CILU) plant located near to Kinshasa, the capital city of the Democratic Republic of Congo (DRC), from the Heidelburg Materials AG group. The main rationale for these transactions is to continue the Group’s growth strategy in sub-Saharan Africa, redirect the Group’s financial and management resources to focus on development in these overseas markets and strengthen the Group’s financial position by using some of the proceeds from the Xinjiang disposal to partially repay the Group’s US$600 million 4.95% senior notes due in July 2026.

The Group’s operations in China have continued to be affected by a relatively subdued construction market due to low levels of infrastructure and real estate demand growth. Demand in Shaanxi Province has outpaced the rest of the PRC market, with Fixed Asset Investment (FDI) growth of -2.8% compared with -3.8% for the PRC as a whole and Real Estate Development Investment (RDI) growth at -7.9% versus -17.2% for the whole country, but activity has remained lacklustre. In the face of this subdued demand, the supply side has been relatively disciplined, with peak-shifting production halts and increased environmental controls limiting excessive oversupply. This has led to some modest decrease in the Group’s ASPs in China. In addition, unit costs have fallen, especially in Shaanxi Province, due to lower coal costs. Consequently, despite reduced volumes, gross margins remained stable, resulting in a stable impact on the Group’s profitability.

Since 2020, the Group has expanded its production into overseas markets in sub-Saharan Africa and Central Asia, supplying its cement products to infrastructure, urban and rural development markets in these continents. The Group believes its cement plant construction and cement production and sales expertise is uniquely positioned to support and benefit from economic and cement industry development in these geographies. Africa has the world’s fastest population growth profile, with total population expected to reach nearly 2.5 billion in 2050 from 1.5 billion in 2024. Sub-Saharan Africa has some of the fastest GDP growth rates in the world. Infrastructure development and urbanization in these markets are benefiting from domestic and international growth policies, including the Chinese Government’s Belt and Road Initiative. Sub-Saharan Africa has some of the lowest per capita cement consumption rates in the world, at a fraction of those in developed markets, and cement production in many countries is backward, under-supplied and highly fragmented.