CStone Pharmaceuticals — Share Issue/Capital Change 2001

Jan 8, 2001

This announcement is for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for securities.

The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

兗州煤業股份有限公司

Yanzhou coal mining COMPANY LIMITED

(a joint stock limited company incorporated in the People’s Republic of China with limited liability)

increase in capital

by way of the NEW ISSUE OF 100,000,000 A SHARES OF PAR VALUE RMB1.00 EACH

AT AN ISSUE PRICE OF RMB10.00

IN THE PEOPLE’S REPUBLIC OF CHINA

Further to the Circular, the Announcement and the announcement dated 27th December 2000 (the “Second Announcement”), Yanzhou Coal Mining Company Limited (the “Company”) wishes to announce that:

* The final issue price of the A Shares to be issued under the increase in capital of the Company by way of the A Shares Issue has been determined at RMB10.00 per A Share.

* Valid applications at and above the final issue price (the “Final Issue Price”) were received in respect of a total of 111,196,629 A Shares, or approximately 1.111966 times the 100,000,000 A Shares available for subscription under the increase in capital of the Company by way of the A Shares Issue.

* The 100,000,000 new A Shares to be issued under the increase in capital of the Company by way of the A Shares Issue were fully subscribed and will be allotted and issued as follows: as to 9,525,629 A Shares to existing holders of A Shares who have opened shareholders’ accounts with the SSE (“Eligible Shareholders”), as to 14,835,088 A Shares to other public investors in the PRC, and as to 75,639,283 A Shares to the institutional investors, representing 9.525629%, 14.835088% and 75.639283% of the total number of A Shares available for subscription under the A Shares Issue, respectively.

Unless the context requires otherwise, terms defined in the Second Announcement shall have the same meanings when they are used in this announcement.

Further to the Circular, the Announcement and the Second Announcement, the board of directors of the Company (the “Board”) is pleased to announce further details relating to the A Shares Issue as follows:

FINAL ISSUE PRICE AND RESULTS OF A SHARES ISSUE

1.	The Final Issue Price of the A Shares to be issued under the increase in capital of the Company by way of the A Shares Issue has been determined between the Company and the Lead Underwriter at RMB10.00 (approximately HK$9.35) per A Share.

The Company received valid applications at and above the Final Issue Price in respect of a total of 111,196,629 A Shares, approximately 1.111966 times the 100,000,000 A Shares available for subscription under the increase in capital of the Company by way of the A Shares Issue.
The 100,000,000 new A Shares to be issued under the increase in capital of the Company by way of the A Shares Issue (representing 3.85% of the existing issued share capital and 3.70% of the enlarged issued share capital of the Company) were fully subscribed and will be issued as follows: as to 9,525,629 A Shares to Eligible Shareholders, as to 14,835,088 A Shares to other public investors in the PRC, and as to 75,639,283 A Shares to the institutional investors, representing 9.525629%, 14.835088% and 75.639283% of the total number of A Shares available for subscription under the A Shares Issue, respectively. Of the 75,639,283 A Shares to be issued to the institutional investors, 14,949,882 A Shares will be issued to securities investment funds and 60,689,401 A Shares will be issued to other legal person investors, representing 14.949882% and 60.689401% of the total number of A Shares available for subscription under the A Shares Issue, respectively.
Each of the Eligible Shareholders who applied for A Shares at a subscription price at or above the Final Issue Price will receive allotment of the A Shares in full applied for within the preferential subscription ratio of 10 existing A Shares : 4 new A Shares. For other public investors and institutional investors who applied for A Shares at a subscription price at or above the Final Issue Price, each of them will be allotted 88.98739168% and 88.98739168% of the A Shares applied for by them, respectively.

PROCEEDS FROM A SHARES ISSUE

2.

The A Shares to be issued under the A Shares Issue will be issued at the Final Issue Price and the Company expects to receive total subscription proceeds of approximately RMB1,000,000,000 (before deduction of expenses relating to the A Shares Issue) (approximately HK$935,000,000). Of the expenses relating to the A Shares Issue, the total underwriting fee amounts to approximately RMB18,200,000 (approximately HK$17,009,300). The net proceeds received from the A Shares Issue will be used to finance the acquisition of Jining III from the Parent Company, as disclosed in the Announcement and the Circular.

GENERAL

3.	Except where otherwise stated, translations of Renminbi into Hong Kong dollars for the purposes of this announcement have been made using an exchange rate of HK$1 to RMB1.07. No representation is made that Renminbi amounts could have been or could be converted into Hong Kong dollars at this rate or any other rate or at all.
4.	The information in this announcement is published in Hong Kong and the PRC simultaneously. Further announcement will be made as to the date of commencement of trading of the A Shares to be issued under the increase in capital of the Company by way of the A Shares Issue.

By order of the Board

Chen Guangshui

Company Secretary

Shandong, the People’s Republic of China, 5 January, 2001

Please also refer to the published version of this announcement in the SCMP dated 8/1/2001.