Huaxin Building Materials Group (06655) plans to engage in foreign exchange derivative transactions.

Huaxin Building Materials Group (06655) announced that Huaxin Building Materials Group Co., Ltd. (hereinafter referred to as "the Company") plans to acquire the equity of CSN Cimentos Brasil S.A., a Brazilian cement company, held by Brazilian National Steel Company CSN. The agreement stipulates that the enterprise value of the target company is BRL12.7 billion. As the settlement currency for this acquisition is the Brazilian real, in order to reduce foreign exchange risk, the Company plans to apply to engage in foreign exchange derivative transactions (such as forwards, swaps, options, or combinations thereof) with financial institutions for hedging purposes, locking in the foreign exchange purchase price for no more than BRL6.3 billion (approximately 50% of the enterprise value).