Anhui Conch Cement Company Limited and Jiangsu Conch Building Materials entered into the Sale and Purchase of Cement Contract under which certain subsidiaries of the Company located in East China will sell cement products to Jiangsu Conch Building Materials. The Contract is valid from its signing date until 31 December 2018. The aggregate transaction amount is estimated to be approximately not more than RMB 1,600,000,000. Certain subsidiaries of the Company located in East China will sell a total of approximately 3.5 million tonnes of cement products to Jiangsu Conch Building Materials as stipulated in the Contract. The sales price of the cement products will be determined with reference to the prevailing market price. Jiangsu Conch Building Materials will be responsible for product transportation and will bear all expenses after collection of the products. Payment will be settled on a monthly basis.