China Shanshui Cement : SUPPLEMENTAL ANNOUNCEMENT TO THE ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2018 AND THE INTERIM REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2019

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SUPPLEMENTAL ANNOUNCEMENT TO THE ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2018 AND THE INTERIM REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2019

INTRODUCTION

References are made to the annual report of China Shanshui Cement Group Limited (the "Company") for the year ended 31 December 2018 (the "2018 Annual Report"), the interim report of the Company for the six months ended 30 June 2019 (the "2019 Interim Report"), the announcements made by the Company dated 6 August 2018, 8 August 2018, 31 August 2018 and 3 September 2018 (the "Convertible Bonds Announcements"), in relation to, amongst others, the issue of convertible bonds under general mandate (the "Convertible Bonds"), and the announcement dated 18 September 2019, in relation to the validation order (the "VO Announcement"). Unless otherwise specified, capitalized terms used in this announcement shall have the same meanings as those defined in the 2018 Annual Report, the 2019 Interim Report, the Convertible Bonds Announcements and the VO Announcement.

In addition to the information disclosed in the 2018 Annual Report and the 2019 Interim Report, the Board would like to provide additional information pursuant to paragraph 11(8) of Appendix 16 to the Listing Rules in relation to the use of proceeds raised from the issuance of the Convertible Bonds in August and September with a total principal amount of US$531,600,000.

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USE OF PROCEEDS

The original intended use of proceeds as set out in the Convertible Bonds Announcements and the actual use of proceeds up to and including each of 31 December 2018 and 30 June 2019 are set out below:

						Unit: US$ million
	Intended
	allocation of
	net proceeds		Utilization	Utilization		Unutilized
	from		up to	up to	amount as at
	issuance of	31 December	30 June		30 June
Intended use of proceeds	the Bonds	2018		2019	2019
(i) redemption of the 2020 Notes	444.2	444.2	444.2		-
(ii) general corporate use	87.4		10.2		21.2		66.2
Total
531.6		454.4		465.4		66.2

As at 30 June 2019, the proceeds from the issue of the Convertible Bonds have not been fully utilized, and the remaining amounts will be used for general corporate use according to the original intended use as stated in the Convertible Bonds Announcements. Further, as stated in the VO Announcement, the dispositions of property and payments made by the Company in the ordinary course of business are limited to US$2 million in each calendar month (the "Disposition Condition"). The Company will publish further announcement(s) for any significant developments in relation to the Disposition Condition or change of use of proceeds from the issue of the Convertible Bonds.

The above additional information does not affect other information contained in the 2018 Annual Report and the 2019 Interim Report and save as disclosed above, all other information in the 2018 Annual Report and the 2019 Interim Report remains unchanged.

By Order of the Board

China Shanshui Cement Group Limited

CHANG Zhangli

Chairman

Hong Kong, 24 October 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.

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