China Shanshui Cement : INSIDE INFORMATION - UPDATE ON LEGAL PROCEEDINGS

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

INSIDE INFORMATION

UPDATE ON LEGAL PROCEEDINGS

This announcement is made by China Shanshui Cement Group Limited (the "Company") pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The Company refers to the fact that China Shanshui Investment Company Ltd ("CSI") is a substantial shareholder of the Company which as at the date of the Company's 2019 Interim report beneficially held 19.47% of the Company's issued share capital, primarily on behalf of the Company's employees. As announced in the Company's previous announcements dated 13 October 2017, 27 March 2018, and 17 April 2018, the ownership of shares in CSI, and control of CSI, is the subject of various claims in the Hong Kong Court.

The Company has become aware of three judgments handed down by the Hong Kong Court of First Instance in High Court Action No. 2648 of 2017 (the "2648 Action") on 30 August 2019 (the "Judgments"). The Judgments, among others, rejected the plaintiff's (i.e. Mr. Chen Hongqing) application for appointment of interim receivers over the relevant shares in CSI which are the subject of the 2648 Action.

By way of relevant background regarding Mr. Chen Hongqing, the Company notes that in a judgment handed down by the Hong Kong High Court in HCA1661/2014 (and related Court actions) dated 31 January 2018, the court found that there was evidence showing the following:

1. By August 2015, Tianrui (International) Holding Company Limited ("Tianrui"), a substantial shareholder of the Company, was interested in acquiring the interests in CSI;
2. Money totalling RMB700 million used by Mr. Chen Hongqing in an attempt to acquire the interests in CSI came from Tianrui; and
3. Mr. Chen Hongqing was a "mid-level manager in the Tianrui group not that long ago".

- 1 -

Shareholders of the Company and potential investors should exercise caution when dealing in the shares or other securities of the Company.

The Board of Directors

China Shanshui Cement Group Limited

Hong Kong, 18 September 2019

As at the date of this announcement, the Board comprises two executive Directors, namely Mr CHANG Zhangli and Ms. WU Ling-ling; and three independent non-executive Directors, namely Mr. CHANG Ming-cheng, Mr. LI Jianwei and Mr. HSU You-yuan.

- 2 -