Hong Kong, China, Sept. 18, 2025 — Dongwu Cement (00695.HK), a company listed in Hong Kong, has announced a significant change in its ownership, signaling the start of a major strategic transformation. State-owned capital from Suzhou, through Port & Shipping Group (HK) Investment Co., Limited (Port & Shipping Group (HK) Investment) and Suzhou Fenyan Capital Management Co., Ltd. (Fenyan Capital), has made a strategic investment to gain a controlling interest in the company. This is the first instance of state-owned assets from the Yangtze River Delta taking control of a Hong Kong-listed company and is viewed as a key event demonstrating the integration of state-owned capital with international capital markets.
This transaction marks a significant change for Dongwu Cement, as it moves away from its traditional cement business and adopts a new strategic direction. With the strong backing and policy support from Suzhou state-owned assets, the company is well-positioned for substantial development opportunities in its future ventures.
Building a New Hong Kong-Suzhou Collaborative Mechanism, Empowering Strategic Transformation
The introduction of Suzhou state-owned capital transforms Dongwu Cement from a privately controlled entity into a mixed-ownership enterprise led by state capital with diverse shareholders. This improvement is expected to greatly enhance the company’s governance and resource integration capabilities, allowing it to gain greater policy support and capital investment, thus driving new development.
Aligned with China’s “dual carbon” policies, the industrial resources and capital operation skills of the two Suzhou state-owned shareholders indicate a shift away from traditional cement production, guiding the company towards green industries and emerging economic sectors. In particular, Port & Shipping Group (HK) Investment has been actively investing in advanced technology fields such as Artificial Intelligence (AI) and the low-altitude economy. Its explorations include:
- Drone logistics networks
- Smart air traffic control platforms
- Smart logistics systems for the Yangtze River Delta port cluster
- Upgrading port logistics
Port & Shipping Group (HK) Investment is dedicated to supporting the development of the low-altitude economy and the integrated growth of the Yangtze River Delta, aiming to establish digital application scenarios such as smart ports, smart logistics, and smart shipping, as well as specialized “low-altitude+” application scenarios. With Port & Shipping Group (HK) Investment’s active participation in these market-focused sectors, Dongwu Cement is expected to enter new growth areas.
Demonstrating Resolve and Potential for Change, Releasing Positive Market Signals
Following the entry of the new shareholders, market observers widely expect that Dongwu Cement will decisively implement a comprehensive transformation strategy, progressively exploring and concentrating on new segments such as smart warehousing, modern logistics, and the low-altitude economy. Stakeholders anticipate Dongwu Cement will fully utilize its resource and geographical advantages to actively construct a diversified, forward-looking industrial development landscape, injecting new vitality and encouraging more resilient and sustainable growth.
Furthermore, in accordance with Suzhou City’s strategy to advance industrial upgrading, Dongwu Cement plans to explore an innovative “Hong Kong Capital Platform + Suzhou Industrial Landing” cooperation model, building an effective bridge between capital and industry. By using its position as a Hong Kong-listed international platform, Dongwu Cement will become a key gateway for Suzhou state-owned capital to expand into international capital and resource integration, potentially assisting more Suzhou enterprises to “go global” and attract high-end industrial resources in the future. The low-altitude economy, in particular, is a national priority industry offering vast development potential and market opportunities, benefiting from both policy advantages and significant market space.
Investors will see a strong and transformative entity. With the backing of Suzhou state-owned capital, this transformation and strategic shift by Dongwu Cement fully demonstrate the state’s strong support and investment confidence in corporate upgrading. The company’s future focus on emerging fields, leveraging Hong Kong’s international capital advantages and synergy with Suzhou’s physical industries, aims to create a forward-looking new value blueprint for investors. This undoubtedly sends a positive signal to the market, showcasing Dongwu Cement’s determination and potential for change in the new economic era.
CONTACT: Cecilia Ip Dongwu Cement International Limited admin (at) dongwucement.com
