West China Cement : THIRD QUARTERLY RESULTS OF 2019 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)

THIRD QUARTERLY RESULTS OF 2019 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 and 8 May 2019 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.

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 nine months ended 30 September 2019 (the "Quarterly Results") on the website of China Money and Shanghai Clearing during the three-years term of the Medium-term Notes.

- 1 -

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 Senior Notes 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 these Senior Notes 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.

- 2 -

1. Balance Sheet

Prepared by: Yaobai Special Cement Group Co., Ltd Unit:			RMB
		As at	As at	As at	As at
		30 September	31 December	30 September	31 December
		2019		2018		2019	2018
Items	Consolidated	Consolidated	Yaobai	Yaobai
Current Assets:
	Monetary capital	1,096,289,547.98	1,014,934,242.16	848,286,074.10	867,524,565.09
Notes receivable and accounts receivable	735,548,478.61	405,657,965.96	36,908,849.57	12,312,122.84
	Advance payments	149,449,889.17	118,537,830.90	3,612,206.89	6,560,061.31
	Other receivables	1,284,077,116.47	1,144,277,287.12	2,512,320,879.99	3,669,453,542.17
	Inventories	673,827,198.80	475,949,101.03	459,454.69	422,612.50
Non-current assets due within one year	362,584,650.00	350,819,071.40	-	-
	Other current assets	38,911,897.25	54,695,957.81	-	566,709.37
Total current assets
4,340,688,778.28		3,564,871,456.38		3,401,587,465.24	4,556,839,613.28
Non-current assets:
Financial assets available for sale	20,000,000.00		20,000,000.00		-	-
	Long-term receivables	188,612,526.02	191,495,645.00	-	-
	Long-term equity investments	73,354,148.40	80,327,363.40	4,804,936,831.32	4,341,230,446.32
	Fixed assets	5,891,247,936.89	6,028,911,018.49	148,580,898.15	150,879,153.27
	Construction in progress	1,084,259,031.84	449,307,967.65	384,871.31	384,871.31
	Intangible assets	641,224,880.66	653,996,800.11	18,769,167.14	19,325,097.05
	Goodwill	183,263,878.86	183,263,878.86	-	-
	Long-term prepaid expenses	33,724,195.24	50,168,268.89	-	-
	Deferred tax assets	51,718,503.05	51,718,503.05	1,568,069.83	1,568,069.83
	Other non-current assets	176,633,030.00	166,426,700.00	-	-
Total non-current assets
8,344,038,130.96		7,875,616,145.45		4,974,239,837.75	4,513,387,637.78
Total assets
12,684,726,909.24		11,440,487,601.83		8,375,827,302.99	9,070,227,251.06
Current liabilities:
	Short-term borrowings	880,000,000.00		703,570,760.00		690,000,000.00	693,570,760.00
Notes payable and accounts payable	1,423,702,406.74	645,411,866.41	236,197,534.85	41,614,699.30
	Receipts in advance	285,834,640.54	232,766,853.21	-	1,200.00
	Employee benefits payable	62,085,698.07	64,226,734.59	6,567,427.60	7,971,339.66
	Taxes payable	117,064,313.81	190,699,761.83	496,297.85	431,784.37
	Other payables	908,268,051.69	656,509,702.89	686,792,964.02	425,940,932.37
Non-current assets due within one year	-	160,000,000.00	-	160,000,000.00
	Other current liabilities	8,738,079.97	-	-	-
Total current liabilities
3,685,693,190.82		2,653,185,678.93		1,620,054,224.32	1,329,530,715.70

- 3 -

		As at	As at	As at	As at
		30 September	31 December	30 September	31 December
		2019		2018		2019	2018
Items	Consolidated	Consolidated	Yaobai	Yaobai
Non-current liabilities:
	Long-term borrowings	1,368,592,900.37	1,572,461,776.56	1,368,592,900.37	1,572,461,776.56
	Debentures payable	495,722,133.69	-	495,722,133.69	-
	Long-term payables	41,160,720.13	76,612,344.52	-
	Estimated liabilities	36,655,802.57	36,432,433.34	-	-
	Deferred income	44,078,816.04	49,754,902.81	5,396,573.53	6,896,573.56
	Deferred tax liabilities	3,703,735.27	3,703,735.27	-	-
Total non-current liabilities
1,989,914,108.07		1,738,965,192.50		1,869,711,607.59	1,579,358,350.12
Total liabilities
5,675,607,298.89		4,392,150,871.43		3,489,765,831.91	2,908,889,065.82
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	53,487,937.18	53,487,937.18	12,715,940.06	12,715,940.06
	Special reserve	34,989,227.39	20,466,565.57	-	-
	Surplus reserve	379,579,028.81	379,579,028.81	379,579,028.81	379,579,028.81
	Undistributed profit	4,265,760,691.66	4,444,820,114.19	2,603,766,502.21	3,879,043,216.37
Total equity attributable to owners of
	the Company (or shareholders)	6,623,816,885.04	6,788,353,645.75	-	-
	Minority interests	385,302,725.31	259,983,084.65	-	-
Total owners' equity (or shareholders' equity)
7,009,119,610.35		7,048,336,730.40		4,886,061,471.08	6,161,338,185.24
Total liabilities and owners' equity
	(or shareholders' equity)	12,684,726,909.24		11,440,487,601.83		8,375,827,302.99	9,070,227,251.06

- 4 -

2. Income Statement

Prepared by: Yaobai Special Cement Group Co., Ltd Unit:								RMB
			2019 Q3				2018 Q3				2019 Q3				2018 Q3
Items			Consolidated				Consolidated				Yaobai				Yaobai
I. Total operating revenue	5,110,611,375.62	4,103,269,030.12	33,408,559.79	263,935,773.74
Including:	Revenue	5,110,611,375.62	4,103,269,030.12	33,408,559.79	263,935,773.74
II. Total operating costs
3,821,820,357.25	3,019,115,006.08	79,090,317.67	219,066,361.48
Including:	Operating costs	3,342,855,128.53	2,606,905,233.37				-	135,548,377.13
	Taxes and surcharges	55,741,539.64	56,463,045.43	1,169,751.07	3,831,096.62
	Selling and distribution expenses	39,964,453.98	34,265,895.23	10,287,214.92	11,489,610.88
	General and administrative expenses	262,533,396.94	206,064,976.00	59,785,454.21	64,051,951.56
	Research and development expense	-				-				-				-
	Financial expenses	116,465,488.73	105,616,124.79	7,847,897.47	4,625,916.70
		Including: Interest expenses	125,237,544.32	113,472,219.48	17,334,595.71	12,948,550.11
		Interest income	-10,159,630.11				-10,502,551.50				-9,677,986.00				-10,214,699.83
	Asset impairment losses	4,260,349.43	9,799,731.26				-				-480,591.41
Add:	Other income	180,810,475.74	198,741,056.58	1,500,000.03	12,879,361.11
	Investment income (loss expressed
		with "-")	15,824,264.45	18,204,793.40	79,891,566.38	18,204,793.40
	Asset disposal income (loss is
		represented by "-")	2,148.29				-				-67,127.61				-
III. Operating profit (loss is represented by "-")
1,485,427,906.85	1,301,099,874.02	35,642,680.92	75,953,566.77
Add:	non-operating income	7,921,956.58	23,291,060.56	1,701,971.80	6,936,368.10
Less:	non-operating expenses	61,251,540.84	7,996,915.64	16,300.00	911,742.33
IV. Total profit (total loss is represented by "-")
1,432,098,322.59	1,316,394,018.94	37,328,352.72	81,978,192.54
Less:	income tax expenses	210,685,863.32	268,538,183.03				-7,755,083.46	11,508,530.82

- 5 -

	2019 Q3	2018 Q3	2019 Q3	2018 Q3
Items	Consolidated	Consolidated	Yaobai	Yaobai
V. Net profit (net loss is represented by "-")	1,221,412,459.27	1,047,855,835.91	45,083,436.18	70,469,661.72

1. By continuity of operations
   1. Net profit from continuing operations

(net loss expressed with "-")

1,221,412,459.27

1,047,855,835.91

45,083,436.18

70,469,661.72

1. By ownership

1. Net profit attributable to shareholders   of the Company (net loss is

			represented by "-")	1,142,669,330.83		1,032,792,090.41			-	-
	2.	Minority interests (net loss is
			represented by "-")	78,743,128.44		15,063,745.50			-	-
VI. Net other comprehensive income after tax
(I)	Net other comprehensive income after tax
	attributable to owners of the Company	-	-			-	-
(II)	Net other comprehensive income after tax
	attributable to minority shareholders	-	-			-	-
VII. Total comprehensive income
1,221,412,459.27	1,047,855,835.91	45,083,436.18	70,469,661.72
(I)	Total comprehensive income attributable to
	owners of the Company	1,142,669,330.83		1,032,792,090.41			-	-
(II)	Total comprehensive income attributable to
		minority shareholders	78,743,128.44		15,063,745.50			-	-

- 6 -

3. Cash Flow Statement
Prepared by: Yaobai Special Cement Group Co., Ltd Unit:		RMB
	2019 Q3	2018 Q3	2019 Q3	2018 Q3
Items	Consolidated	Consolidated	Yaobai	Yaobai
I. Cash flow generated from operating activities:

Cash received from sales of goods or rendering
	of services	4,424,152,481.48		3,848,840,792.85	1,663,522,050.82	1,302,394,260.14
Tax refund received	178,994,552.77		204,283,139.95	830,771.80	12,979,497.01
Cash received relating to other operating
	activities	358,718,863.77		226,826,926.10	105,985,339.71	7,662,348.88
Sub-total of cash inflow from operating
	activities	4,961,865,898.02		4,279,950,858.90	1,770,338,162.33	1,323,036,106.03
Cash paid for goods and service	1,896,620,832.58		1,429,570,472.60	55,000,000.00	60,481,970.07
Cash paid to and for employees	418,851,761.73		277,884,754.96	33,309,840.47	41,866,720.72
Payments of taxes and surcharges	723,663,462.20		685,558,994.87	70,167,051.67	70,290,300.97
Cash payments relating to other operating
	activities	460,108,327.75		843,526,485.63	211,220,477.18	32,315,445.86
Sub-total of cash outflows from operating
	activities	3,499,244,384.26		3,236,540,708.06	369,697,369.32	204,954,437.62
Net cash flow from operating activities
1,462,621,513.76		1,043,410,150.84	1,400,640,793.01	1,118,081,668.41

- 7 -

		2019 Q3	2018 Q3		2019 Q3		2018 Q3
Items		Consolidated	Consolidated		Yaobai		Yaobai
II. Cash flow generated from investing activities:
Cash received from returns on investments	22,780,000.00		-	25,653,584.97		-
Net cash received from disposal of fixed assets,
intangible assets and other long-term assets	303,604.40		389,391.01		-		-
Cash received relating to other investing
	activities	10,000,000.00		40,303,000.00		-		-
Sub-total of cash inflows from investing
	activities	33,083,604.40		40,692,391.01	25,653,584.97		-
Cash paid to acquire fixed assets, intangible
assets and other long-term assets	475,982,675.62		394,073,835.28	114,033,230.43	68,167,971.07
Cash paid to acquire investments	-	59,763,883.33	406,878,000.00	298,930,000.00
Sub-total of cash outflows from investing
	activities	475,982,675.62		453,837,718.61	520,911,230.43	367,097,971.07
Net cash flow from investing activities
-442,899,071.22	-413,145,327.60		-495,257,645.46		-367,097,971.07

- 8 -

							2019 Q3	2018 Q3			2019 Q3	2018 Q3
Items						Consolidated	Consolidated			Yaobai	Yaobai
III. Cash flow generated from financing activities:
	Cash received from capital contributions	20,550,000.00		-			-	-
	Including: cash received from capital
						contributions by minority
						shareholders of subsidiaries
	Cash received from borrowings	1,462,447,500.00		650,720,760.00	1,460,600,000.00		624,770,760.00
	Cash received from issuance of debentures
	Cash received relating to other financing
		activities		2,956,000.00		-			-	-
	Sub-total of cash inflows from financing
		activities		1,485,953,500.00		650,720,760.00	1,460,600,000.00		624,770,760.00
	Cash repayments of borrowings	1,093,244,298.19		912,752,783.00	1,088,039,636.19		911,200,000.00
	Cash payments for distribution of
	dividends profits and interest	1,304,690,757.86		687,998,104.81	1,297,182,002.35		674,764,881.29
	Cash payments relating to other financing
		activities		26,385,580.67		-			-	-
	Sub-total of cash outflows from financing
		activities		2,424,320,636.72		1,600,750,887.81	2,385,221,638.54		1,585,964,881.29
	Net cash flow from financing activities
	-938,367,136.72	-950,030,127.81			-924,621,638.54	-961,194,121.29
IV.	Effect of change of foreign currency rates
	on cash and cash equivalents	-	-			-	-
V.	Net increase in cash and cash equivalents
81,355,305.82		-319,765,304.57			-19,238,490.99	-210,210,423.95
	Add: Opening balance of cash and
				cash equivalents	1,014,934,242.16		1,338,555,212.00	867,524,565.09		1,121,311,574.00
VI.	Closing balance of cash and cash equivalents
1,096,289,547.98		1,018,789,907.43	848,286,074.10	911,101,150.05

- 9 -

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 audited consolidated financial statements to be published by the Company for the year ending 31 December 2019. 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 these 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.

DEFINITIONS

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

"IFRS"	International Financial Reporting Standards, which collective
	term 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
"Senior Notes"	the 6.50% senior notes due 2019 in the aggregate principal
	amount of US$400 million issued by the Company on 4
	September 2014
	By Order of the Board
	West China Cement Limited
	Zhang Jimin
	Chairman
Hong Kong, 29 October 2019
	- 10 -

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.

- 11 -