In connection with the Announcement, Anhui Conch Cement Company Limited supplement the historical transaction amount and the reference for determination of contract price for the Procurement of Cement Admixtures (Grinding Aids) Contract (also defined as "2020 Contract" in this announcement) made with Conch New Materials Company and the background of shareholders of Conch New Materials Company. Reference is also made to the Company's announcement dated 14 February 2019 in relation to a procurement of cement grinding aids contract entered into between the Company and Conch New Materials Company with a validity period from 14 February 2019 to 31 December 2019. As disclosed in the 2019 Announcement, the aggregate transaction amount was estimated to be not more than RMB 840,000,000. Based on the unaudited management accounts of the Company, the actual transaction amount is approximately RMB 750,000,000, which did not exceed the estimated transaction cap amount. After the expiry of the 2019 Contract, the Company re-negotiated and subsequently entered into the 2020 Contract with Conch New Materials Company to procure cement grinding aids, with a validity period from 14 January 2020 to 31 December 2020. The Company would like to clarify that the terms of the 2020 Contract were negotiated between the Parties after the expiry of the 2019 Contract and is a new agreement signed between the Parties. The 2019 Contract expired on 31 December 2019, there were no renewal clauses therein and certain terms (including the basis for determination of the contract price) contained in the 2020 Contract were re-negotiated and are different from those in the 2019 Contract. Notwithstanding that the 2020 Contract is not a renewed or extended agreement of the 2019 Contract, as similar products (that is grinding aid products) are to be purchased from the same counterparty (that is Conch New Materials Company), in the course of negotiation of the contract price of the 2020 Contract, reference was made to the historical transaction amount under the 2019 Contract (that is approximately RMB 750,000,000) and as disclosed in the Announcement, the Company was offered certain price concessions and certain proportion of downward price adjustment based on the price of similar products purchased by the Group from Conch New Materials Company in 2019.