Summary by Futu AI
China Construction Materials (CNBM) announced that, despite the failure of the Shanghai Stock Exchange's Merger and Reorganization Audit Committee (recommittee) on January 16, 2024 to proceed with the approval of the proposed transaction for the absorption of information on the merger of Ningxia Construction Materials and decided to terminate the audit on January 23, the Company and Ningxia Construction Materials (CNBM) decided to proceed with the transaction. The reorganization noted that Ningxia Construction did not adequately explain the basis for the repayment of receivables without significant uncertainty, and whether the proposed transaction was actually conducive to improving asset quality and financial condition. China Construction said that the proposed transaction was in line with the Group's strategic development, which would help eliminate competition with Tianshan Cement. The Company will supplement, revise and improve the application materials based on the reorganization's deliberations, and will resubmit it to the Shanghai Stock Exchange for review. If material changes are made, an announcement will be made as required by the Listing Rules. Investors should exercise caution.