Dongwu Cement International : FURTHER ANNOUNCEMENT ON THE ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2015

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Dongwu Cement International Limited

東吳水泥國際有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 695)

FURTHER ANNOUNCEMENT ON THE ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2015

Reference is made to the announcement dated 23 January 2015 published by Dongwu Cement International Limited (the "Company") in respect of the Placing Agreement entered into between the Company and the Placing Agent in relation to the placing of the Placing Shares (the "Announcement"), the Company's further announcement dated 13 February 2015 (the "Further Announcement") and the Company's annual report for the year ended 31 December 2015 (the "Reporting Period") published on 18 April 2016 (the "Annual Report"). Unless defined otherwise, capitalised terms used in this announcement shall have the same meanings as those defined in the Announcement, the Further Announcement and the Annual Report.

It is stated, in the Announcement that, the net proceeds arising from the Placing was approximately HK$51.33 million (the "Net Proceeds") and the Company intended to use the Net Proceeds for acquiring 100% equity interest of Shanghai Biofit Environmental Technology Co., Ltd. (the "Target Company") and for general working capital of the Group. It is further stated in the Further Announcement, the Placing was completed on 13 February 2015.

In addition to the information disclosed in the Annual Report, the Company would like to provide the Shareholders and the market with the additional information below:

USE OF NET PROCEEDS

1. Acquiring 100% Equity Interest in Shanghai Biofit Environmental Technology Co., Ltd.

   On 16 February 2015, the Company, through its wholly-owned subsidiary, Xi Hua Shanghai Investment Management Company Limited (the "Purchaser"), entered into an acquisition agreement with Shanghai Dong Xi, Shanghai Yue Quan and Yu Jian Zhong (together the "Vendors"), pursuant to which the Purchaser agreed to purchase and the Vendors agreed to sell

   the entire equity interest of the Target Company for the consideration of RMB32,000,000 (the "Acquisition"). On 13 April 2015, the consideration of the Acquisition was adjusted to RMB30,254,269 (HK$37,820,000) (the "Adjusted Consideration"). All the Adjusted Consideration was satisfied from the Net Proceeds.

2. Corporate Working Capital

The remaining Net Proceeds were HK$13,510,000, of which approximately HK$2,933,000 has been used on the general corporate purposes, including payment of directors and staff remuneration, legal, rental, Stock Exchange, audit, share registry, printer expenses and Company registry during the Reporting Period.

As at the end of the Reporting Period, the remaining Net Proceeds were approximately HK$10,577,000.

The additional information provided above does not affect other information contained in the Annual Report, and the contents of the Annual Report remain unchanged.

By Order of the Board

Dongwu Cement International Limited Xie Yingxia

Chairman

Hong Kong, 11 August 2016

As at the date of this announcement, the Board comprises Ms. Xie Yingxia, Mr. Jin Chungen and Mr. Ling Chao as executive Directors, Mr. Tseung Hok Ming as non-executive Director and Mr. Cao Guoqi, Mr. Cao Kuangyu and Mr. Lee Ho Yiu Thomas as independent non-executive Directors.