10:08     ANHUI CONCH<00914> - Announcement (3)                               

    The Company obtained from the Stock Exchange a waiver for an              
    indefinite period in connection with the Continuing Connected             
    Transactions from the requirement of disclosure by press notice,          
    circular to shareholders and/or independent shareholders'                 
    approval as stipulated in the then Chapter 14 of the Listing              
    Rules on 3 November 1997, on condition, among the others, that            
    the aggregate consideration paid for the cement packaging bags            
    from the connected parties would not exceed 8% of the combined            
    or consolidated gross turnover of the Group in each financial             
    year. The Company was able to satisfy all the conditions of the           
    waiver in each financial year up to 2004. Details of the                  
    Continuing Connected Transactions were disclosed and elaborated           
    in the prospectus of the Company dated 7 October 1997 when its            
    H shares were listed on the Main Board of the Stock Exchange in           
    Hong Kong and in the annual report of the Company for each                
    financial year up to 2004.                                                
                                                                              
    The Continuing Connected Transactions are on normal commercial            
    terms and the percentage ratios under the Listing Rules in                
    respect of the relevant items, including the consolidated total           
    assets value and the revenue of the Group, as disclosed in the            
    Group's audited consolidated financial statements as at 31                
    December 2004 is more than 0.1% but less than 2.5%. Accordingly,          
    under Rules14A.34 of the Listing Rules, the Continuing Connected          
    Transactions are only subject to the reporting and announcement           
    requirements under Rules 14A.35 to 14A.41 and Rules 14A.45 to             
    14A.47 of the Listing Rules. No Independent Shareholders'                 
    approval is required. Details of the Continuing Connected                 
    Transactions will be included in the Company's annual report              
    and financial statement for the year ending 31 December 2005.             
                                                                              
    DEFINITIONS                                                               
                                                                              
    In this announcement, unless the context otherwise requires,              
    the following terms shall have the meanings set out below:                
                                                                              
    "associates":has the meaning as ascribed thereto under the                
    Listing Rules                                                             
                                                                              
    "Conch Holdings":Anhui Conch Holdings Company Limited                     
    * , a joint stock company established                                     
    in the PRC and the controlling shareholder of the Company                 
    currently holding 622,480,000 State owned legal person shares             
    of RMB1 each in the Company (representing about 49.57% of the             
    Company's registered capital)                                             
                                                                              
    "connected person":has the meaning as ascribed thereto under              
    the Listing Rules                                                         
                                                                              
    "Continuing Connected Transactions":the continuing connected              
    transactions between the Group and Ningchang Group pursuant               
    to the Purchasing Agreement                                               
                                                                              
    "controlling shareholder":has the meaning as ascribed there to            
    under the Listing Rules                                                   
                                                                              
    "Company":Anhui Conch Cement Company Limited, a company                   
    established in the PRC, whose H Shares are listed on the Stock            
    Exchange                                                                  
                                                                              
    "Directors":the directors of the Company                                  
                                                                              
    "Group" :the Company and its subsidiaries                                 
                                                                              
    "H Shares":overseas listed foreign shares in the ordinary                 
    share capital of the Company, with a nominal value of                     
    RMB1.00 each                                                              
                                                                              
    "HK$":Hong Kong dollars, the lawful currency of Hong Kong                 
                                                                              
    "Hong Kong":the Hong Kong Special Administrative Region of                
    the PRC                                                                   
                                                                              
    "Independent Shareholders":shareholders of the Company,                   
    other than Conch Holdings and its associates                              
                                                                              
    "Listing Rules" :Rules Governing the Listing of Securities                
    on the Stock Exchange