16:27     <03553>, <04624> & <04838> - Announcement (2)                       

    The Adjustments                                                           
                                                                              
    Stock Code 3553 Call Warrants                                             
    Stock Code 4624 Call Warrants                                             
    Stock Code 4838 Call Warrants                                             
                                                                              
    The Conditions provide that every ten Warrants will entitle the           
    Warrantholders on exercise thereof to receive from the Issuer a cash      
    amount (if positive) (the "Cash Settlement Amount") on the Expiry         
    Date calculated in accordance with the following formula:                 
                                                                              
    (Average Price  - Exercise Price) x 1                                     
                                                                              
    where (i) the Average Price is the arithmetic mean of the closing         
    prices of one old Yanzhou share (as derived from the Daily                
    Quotation Sheet of the Stock Exchange, subject to any adjustments         
    (as determined by the Issuer in accordance with the Conditions) to        
    such  closing prices as may be necessary to reflect any capitalisation,   
    rights issue, distribution or the like) for each of the five Business     
    Days immediately preceding the expiry date; and (ii) the Exercise         
    Price is the current exercise price for such warrant.                     
                                                                              
    With effect from and including 26 May, 2005, the Cash Settlement          
    Amount for every ten Warrants on the Expiry Date will be adjusted in      
    accordance with the following formula:                                    
                                                                              
    (Average Price  - New Exercise Price) x 1.6                               
                                                                              
    where (i) the Average Price is the arithmetic mean of the closing         
    prices of one new Yanzhou share (derived as described above and subject   
    to adjustment as described above) for each of the five Business Days      
    immediately preceding the expiry date; and (ii) the New Exercise          
    Price is the current exercise price for such warrant divided by 1.6.      
                                                                              
    For the avoidance of doubt, exercise expenses will be deducted before     
    any payment is made by the Issuer to the relevant Warrantholders in       
    accordance with the Conditions.                                           
                                                                              
    Therefore, after the Adjustments take effect, the New Exercise Price      
    of the Warrants will be as follows:                                       
    Stock Code      New Exercise Price                                        
    3553    HK$8.050 in respect of every ten Warrants                         
    4624    HK$6.175 in respect of every ten Warrants                         
    4838    HK$6.563 in respect of every ten Warrants                         
                                                                              
    The existing global certificate for the Warrants will continue to be      
    valid for all purposes without further amendment.                         
                                                                              
    The Board Lot will not be changed.