West China Cement : FIRST QUARTERLY RESULTS OF 2021 OF YAOBAI AND ITS SUBSIDIARIES

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.

WEST CHINA CEMENT LIMITED

中 國 西 部 水 泥 有 限 公 司

(Incorporated in Jersey with limited liability, with registered number 94796)

(Stock Code: 2233)

FIRST QUARTERLY RESULTS OF 2021 OF

YAOBAI AND ITS SUBSIDIARIES

Reference is made to the announcements of West China Cement Limited (the "Company", together with its subsidiaries, the "Group") dated 30 April 2019, 8 May 2019, 31 August 2020 and 4 September 2020 in relation to the issuance of the Medium-term Notes by Yaobai (collectively, the "Announcements"). This announcement is made by the Company pursuant to Rule 13.09(2) of the Listing Rules and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance. Unless otherwise stated, terms used in this announcement shall have the same meanings as those defined in the Announcements.

On 8 May 2019, Yaobai completed the issuance of the first tranche of the Medium-term Notes. The first tranche of the Medium-term Notes was issued in the principal amount of RMB500 million.

On 4 September 2020, Yaobai completed the issuance of the second tranche of the Medium- term Notes. The second tranche of the Medium-term Notes was issued in the principal amount of RMB700 million.

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According to the relevant PRC regulations and the terms of the Medium-term Notes, Yaobai and its subsidiaries ("Yaobai Group") is required to publish its quarterly results for the three months ended 31 March 2021 (the "Quarterly Results") on the website of China Money and Shanghai Clearing during the three-year term of the Medium-term Notes.

Shareholders of the Company ("Shareholders") and potential investors are advised that the Quarterly Results are unaudited and prepared in accordance with the PRC GAAP. There are thus a number of accounting treatments and other differences between the quarterly results of Yaobai Group ("Yaobai Group Results"), and the interim and final results of the Company which are prepared in accordance with IFRS. These differences include, amongst others:

1. the exclusion of the results of the Shaanxi Fuping Cement Company Ltd ("Fuping Cement Ltd") from the Yaobai Group Results, as Fuping Cement Ltd is an indirect subsidiary of the Company;
2. only part of the interests payable under the Syndicated Loan are included in the Yaobai Group Results, with the balance being accounted for under the Company's accounts, and there is no foreign exchange translation differences of the Syndicated Loan in the Yaobai Group Results; and
3. none of the expenses of the Company's offshore entities are included in the Yaobai Group Results.

To ensure that all Shareholders and potential investors of the Company have equal and timely access to the information pertaining to the Company, set forth below are the Quarterly Results prepared in accordance with the PRC GAAP, which is also published simultaneously on the websites of China Money and Shanghai Clearing.

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1. Balance Sheet

Prepared by: Yaobai Special Cement Group Co., Ltd			Unit: RMB
		As at	As at	As at	As at
		31 March	31 December	31 March	31 December
		2021		2020		2021	2020
Items	Consolidated	Consolidated	Yaobai	Yaobai
Current Assets:
	Monetary capital	1,108,291,449.77	1,211,240,371.80	979,146,218.79	921,873,299.05
	Tradable financial assets	87,077,816.70	185,776,315.21	87,077,816.70	185,776,315.21
	Notes receivable	105,233,431.79	106,305,123.63	44,413,631.99	44,613,631.99
	Accounts receivable	975,463,066.60	762,870,940.36	-	-
	Receivables financing	52,450,061.31	13,172,390.00	-	-
	Advance payments	190,021,659.01	147,771,993.37	751,074.33	295,524.07
	Other receivables	1,461,243,036.37	1,160,946,591.86	3,869,257,328.46	4,452,510,594.69
	Inventories	646,639,312.48	626,112,914.61	474,087.59	504,432.00
Non-current assets due within one year	4,102,391.53	4,102,391.53	-	-
	Other current assets	167,945,363.74	180,210,303.59	1,283,333.34	-
Total current assets
4,798,467,589.30		4,398,509,335.96		4,982,403,491.20	5,605,573,797.01
Non-current assets:
	Long-term receivables	219,116,071.03		220,663,450.61		-	-
	Long-term equity investments	79,213,064.20	77,309,191.00	5,857,430,364.49	5,129,210,522.92
Other equity instrument investment	51,951,053.93	48,869,336.56	-	-
	Fixed assets	6,236,906,223.42	6,374,233,101.53	134,573,067.55	137,542,757.69
	Construction in progress	2,518,031,253.10	2,376,787,748.60	3,989,919.31	2,332,154.57
	Intangible assets	964,554,904.79	938,516,346.47	18,075,778.97	18,273,160.19
	Goodwill	183,263,878.86	183,263,878.86	-	-
	Long-term deferred expenses	1,364,678.12	7,791,886.40	-	-
Deferred income tax assets	35,736,014.88	35,736,014.88	867,150.13	867,150.13
	Other non-current assets	917,707,500.89	441,446,894.64	65,200,000.00	65,200,000.00
Total non-current assets
11,207,844,643.22		10,704,617,849.55		6,080,136,280.45	5,353,425,745.50
Total assets
16,006,312,232.52		15,103,127,185.51		11,062,539,771.65	10,958,999,542.51

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	As at	As at	As at	As at
	31 March	31 December	31 March	31 December
	2021	2020	2021	2020
Items	Consolidated	Consolidated	Yaobai	Yaobai
Current liabilities:
Short-term borrowings	1,203,294,187.11	1,058,294,187.11	1,093,294,187.11	958,294,187.11

• Tradable financial liabilities
• Derivative financial liabilities

	Notes payable	946,330,000.00	638,000,000.00	960,000,000.00	636,500,000.00
	Accounts payable	1,201,981,254.80	1,382,612,962.54	5,514,089.25	3,907,461.28
	Receipts in advance	-	11,250.00	-	-
	Contract liabilities	342,258,915.38	196,404,955.93	-	-
	Employee benefits payable	90,640,554.67	92,716,599.74	8,446,331.64	6,109,078.60
	Taxes payable	46,109,544.51	145,955,640.22	13,035,927.78	13,150,018.39
	Other payables	1,167,156,210.24	1,505,872,357.46	831,326,211.39	1,216,133,807.33
Non-current liabilities due within one year	290,000,000.00	290,000,000.00	210,000,000.00	210,000,000.00
	Other current liabilities	97,673,735.53	91,416,180.09	44,413,631.99	44,413,631.99
Total current liabilities
5,385,444,402.24		5,401,284,133.09	3,166,030,379.16	3,088,508,184.70
Non-current liabilities:
	Long-term borrowings	1,258,147,473.27		669,411,158.27	589,411,158.27	589,411,158.27
	Debentures payable	1,255,504,761.23	1,232,842,264.24	1,255,504,761.23	1,232,842,264.24
	Long-term payables	30,218,748.29	35,039,786.57	-	-
	Estimated liabilities	204,345,423.43	204,371,657.11	-	-
	Deferred income	34,382,705.61	35,807,168.44	2,119,949.87	2,119,949.87
Deferred income tax liabilities	10,090,395.14	10,090,395.14	-	-
Total non-current liabilities
2,792,689,506.97		2,187,562,429.77	1,847,035,869.37	1,824,373,372.38
Total liabilities
8,178,133,909.21		7,588,846,562.86		5,013,066,248.53	4,912,881,557.08
Owners' equity (or shareholders' equity):
Paid-in capital (or Share capital)	1,890,000,000.00		1,890,000,000.00	1,890,000,000.00	1,890,000,000.00
	Capital reserve	51,656,776.09	51,656,776.09	12,715,940.06	12,715,940.06
	Other comprehensive income	15,225,086.14	15,207,954.08	-	-
	Special reserve	59,623,126.72	52,622,934.44	-	-
	Surplus reserve	642,134,879.54	642,134,879.54	642,134,879.54	642,134,879.54
	Undistributed profit	4,742,975,113.53	4,462,091,089.31	3,504,622,703.52	3,501,267,165.83
Total equity attributable to owners of
the parent (or shareholders)	7,401,614,982.02	7,113,713,633.46	-	-
Minority interests	426,563,341.29	400,566,989.19	-	-
Total owners' equity (or shareholders' equity)
7,828,178,323.31		7,514,280,622.65	6,049,473,523.12	6,046,117,985.43
Total liabilities and owners' equity
	(or shareholders' equity)	16,006,312,232.52		15,103,127,185.51		11,062,539,771.65	10,958,999,542.51

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2. Income Statement

Prepared by: Yaobai Special Cement Group Co., Ltd								Unit: RMB
			2021 Q1				2020 Q1				2021 Q1				2020 Q1
Items			Consolidated				Consolidated				Yaobai				Yaobai
I. Total operating revenue	1,423,203,537.51	752,005,385.29	18,102,491.36	2,889,313.49
Including:	Operating revenue	1,423,203,537.51	752,005,385.29				-				-
II. Total operating costs
1,106,075,791.71	596,491,978.55				-				-
Including:	Operating costs	949,726,236.63	475,731,898.48				-				-
	Taxes and surcharges	24,640,231.69	10,992,506.75	506,430.85	392,168.05
	Selling expenses	12,995,604.90	7,579,972.79	3,295,933.08	2,000,684.89
	Administrative expenses	82,299,850.87	71,414,592.57	18,795,338.40	12,955,242.81
	Research and development expenses	2,639,776.09	1,362,004.43				-				-
	Financial expenses	33,774,091.53	29,411,003.53	-4,298,685.06	-1,342,301.39
		Including: Interest expenses	38,361,012.66	30,556,668.87	641,666.66				-
		Interest income	-5,138,255.34	-1,565,773.20	-4,943,219.71	-1,383,540.81
Add:	Other income	37,178,321.28	31,773,711.45	27,238.09	553,076.78
	Investment income (loss is represented
		by "-")	2,278,017.37	3,222,093.00	2,258,668.20	3,222,093.00
	Gain on fair value changes
		(loss is represented by "-")	1,301,501.49				-	1,301,501.49				-
		Credit impairment loss
		(loss is represented by "-")	-2,081,414.27	141,334.62				-				-
	Asset disposal income (loss is
		represented by "-")	-	-1,359,292.34				-				-
III. Operating profit (loss is represented by "-")
355,804,171.67	189,291,253.47	3,390,881.87	-7,341,311.09
Add:	Non-operating income	8,022,483.66	4,730,588.97	61,908.43	17,280.00
Less:	Non-operating expenses	2,083,475.60	19,742,888.57	31,244.55				-
IV. Total profit (total loss is represented by "-")
361,743,179.73	174,278,953.87	3,421,545.75	-7,324,031.09
Less:	Income tax expenses	56,045,431.10	29,657,399.81	66,008.06				-

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		2021 Q1	2020 Q1	2021 Q1	2020 Q1
Items		Consolidated	Consolidated	Yaobai	Yaobai
V. Net profit (net loss is represented by "-")	305,697,748.63	144,621,554.06	3,355,537.69	-7,324,031.09
(I) By continuity of operations
1.	Net profit from continuing operations
	(net loss is represented by "-")	305,697,748.63	144,621,554.06	3,355,537.69	-7,324,031.09
2.	Net profit from discontinued operations
	(net loss is represented by "-")	-	-	-	-

1. By ownership
   1. Net profit attributable to shareholders

		of the parent (net loss is
			represented by "-")	280,884,024.22		134,710,983.48	3,355,537.69		-7,324,031.09
	2.	Minority interests (net loss is
			represented by "-")	24,813,724.41		9,910,570.58			-	-
VI. Net other comprehensive income after tax
-	-			-	-
VII. Total comprehensive income
305,697,748.63		144,621,554.06	3,355,537.69	-7,324,031.09
(I)	Total comprehensive income attributable to
	owners of the parent	280,884,024.22		134,710,983.48	3,355,537.69		-7,324,031.09
(II)	Total comprehensive income attributable to
		minority shareholders	24,813,724.41		9,910,570.58			-	-
VIII. Earnings per share
(I)	Basic earnings per share	-	-			-	-
(II)	Diluted earnings per share	-	-			-	-

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3. Cash Flow Statement

Prepared by: Yaobai Special Cement Group Co., Ltd			Unit: RMB
	2021 Q1	2020 Q1	2021 Q1	2020 Q1
Items	Consolidated	Consolidated	Yaobai	Yaobai

I. Cash flow generated from operating activities:

Cash received from sales of goods or rendering
	of services	961,483,703.53			881,455,327.67	126,539,770.18		91,776,620.99
Tax refund received	25,431,506.26			20,745,430.94				-	-
Cash received relating to other operating
	activities	62,604,655.24			35,571,373.34	46,856,822.11		39,232,485.94
Sub-total of cash inflow from operating
	activities	1,049,519,865.03		937,772,131.95	173,396,592.29	131,009,106.93
Cash paid for goods and service	351,819,436.22		381,513,594.68				-	35,600,000.00
Cash paid to and for employees	138,200,042.68			111,180,684.45	13,987,933.66		7,303,494.55
Payments of taxes	172,624,069.66			103,488,288.33	23,010,637.43		1,460,631.22
Cash payments relating to other operating
	activities	135,599,558.37			136,700,242.83	21,586,464.36		82,724,905.85
Sub-total of cash outflows from operating
	activities	798,243,106.93		732,882,810.29	58,585,035.45	127,089,031.62
Net cash flow from operating activities
251,276,758.10		204,889,321.66	114,811,556.84	3,920,075.31
II. Cash flow generated from investing activities:
Cash received from disposal of investments	100,000,000.00		-	100,000,000.00	-
Cash received from returns on investments	354,795.00			-	354,795.00		-
Net cash received from disposal of fixed assets,
intangible assets and other long-term assets	-	350,000.00				-	-
Cash received relating to other investing
	activities	-	-				-	-
Sub-total of cash inflows from investing
	activities	100,354,795.00		350,000.00	100,354,795.00	-
Cash paid to acquire fixed assets, intangible
assets and other long-term assets	933,401,994.18		313,095,663.65	30,195,077.47	187,952,929.82
Cash paid for investments	5,300,000.00			-	140,794,800.00		46,715,000.00
Cash paid relating to other investing activities	-	-				-	-
Sub-total of cash outflows from investing
	activities	938,701,994.18			313,095,663.65	170,989,877.47		234,667,929.82
Net cash flow from investing activities
-838,347,199.18		-312,745,663.65	-70,635,082.47	-234,667,929.82
		- 7 -

			2021 Q1	2020 Q1					2021 Q1	2020 Q1
Items		Consolidated	Consolidated					Yaobai	Yaobai
III. Cash flow generated from financing activities:
	Cash received from borrowings	1,505,000,000.00		100,000,000.00	945,000,000.00		100,000,000.00
	Cash received relating to other financing
		activities	-	-					-	-
	Sub-total of cash inflows from financing
		activities	1,505,000,000.00		100,000,000.00	945,000,000.00	100,000,000.00
	Cash repayments of debt	593,507,525.00		100,000,000.00	515,000,000.00	100,000,000.00
	Cash payments for distribution of
	dividends, profits and interest	427,370,955.95		12,280,827.75	416,903,554.63		9,802,142.75
	Cash payments relating to other financing
		activities	-	-					-	-
	Sub-total of cash outflows from financing
		activities	1,020,878,480.95		112,280,827.75	931,903,554.63	109,802,142.75
	Net cash flow from financing activities
	484,121,519.05		-12,280,827.75	13,096,445.37	-9,802,142.75
IV.	Effect of change of foreign currency rates
	on cash and cash equivalents	-	-					-	-
V.	Net increase in cash and cash equivalents
-102,948,922.03		-120,137,169.74	57,272,919.74	-240,549,997.26
	Add: Opening balance of cash and
		cash equivalents	1,211,240,371.80		1,182,925,084.71	921,873,299.05		1,102,456,218.88
VI.	Closing balance of cash and cash equivalents
1,108,291,449.77		1,062,787,914.97	979,146,218.79	861,906,221.62

The information contained in this announcement is prepared based solely on a preliminary assessment by the management of the Company with reference to the information currently available, which have not been reviewed or audited by the Company's auditors. The Quarterly Results in this announcement, which are unaudited, have been prepared in accordance with PRC GAAP. Accordingly, the information contained in this announcement and in the Quarterly Results may differ from those in the unaudited or audited consolidated financial statements to be published by the Company for the six months ending 30 June 2021 and for the year ending 31 December 2021, respectively. Further, the financial information in this announcement is provided for reference only and Shareholders and potential investors of the Company are advised to exercise caution and not to place undue reliance on such information when dealing in the shares of the Company. When in doubt, the Shareholders and potential investors of the Company are advised to consult their own professional or financial advisers.

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DEFINITIONS

In this announcement, the following terms shall have the following meanings unless the context requires otherwise:

"IFRS"	International Financial Reporting Standards, a collective
	term which includes standards and interpretations approved
	by the International Accounting Standards Board (IASB),
	and the International Accounting Standards and interpretations
	issued by the International Accounting Standards Committee
	(IASC)
"Listing Rules"	the Rules Governing the Listing of Securities on The Stock
	Exchange of Hong Kong Limited
"PRC"	the People's Republic of China, excluding, for the purpose
	of this announcement only, the Hong Kong Special
	Administrative Region, the Macau Special Administrative
	Region, and Taiwan
"PRC GAAP"	the Accounting Standards for Business Enterprises issued by
	the Ministry of Finance of the PRC on 15 February 2006,
	and other relevant accounting principles and financial
	regulations as promulgated in the PRC
"RMB"	Renminbi yuan, the lawful currency of the PRC
"Syndicated Loan"	the loan with a syndicate of financial institutions of US$150
	million for a period of 3 years entered into by the Company
	on 5 September 2019
	By Order of the Board
	West China Cement Limited
	Zhang Jimin
	Chairman
Hong Kong, 28 April 2021

As at the date of this announcement, the executive Directors are Mr. Zhang Jimin and Dr. Ma Weiping, the non-executive Directors are Mr. Ma Zhaoyang, Ms. Liu Yan and Mr. Fan Changhong and the independent non-executive Directors are Mr. Lee Kong Wai, Conway, Mr. Zhu Dong and Mr. Tam King Ching, Kenny.

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