BBMG Corporation — Earnings Release 2020

Jul 16, 2020

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.

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北 京 金 隅 集 團 股 份 有 限 公 司 *** BBMG Corporation**

(a joint stock company incorporated in the People’s Republic of China with limited liability) (Stock Code: 2009)

PROFIT ALERT OF 2020 INTERIM RESULTS

This announcement is made 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 (Chapter 571 of the Laws of Hong Kong).

The Board wishes to inform its shareholders and potential investors that, based on the Company’s preliminary estimations and calculations, the Company is expected to record a net profit attributable to shareholders of the Company between RMB1,200,000,000 and 1,650,000,000 for the six months ended 30 June 2020, representing a decrease between 61% and 46% when compared with the same period of last year.

Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company.

This announcement is made by BBMG Corporation* (the “ Company ” and, together with its subsidiaries, the “ Group ”) pursuant to Rule 13.09(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “ Listing Rules ”) and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board of directors of the Company (the “ Board ”) wishes to inform its shareholders and potential investors that, based on the Company’s preliminary estimations and calculations, the Group is expected to record a net profit attributable to shareholders of the Company between RMB1,200,000,000 and 1,650,000,000 for the six months ended 30 June 2020, representing a decrease between 61% and 46% when compared with the same period of last year.

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The Board considers that such decrease in the results of the Group for the six months ended 30 June 2020 is mainly due to:

(1) as affected by COVID-19, among the recognized real estate projects, the proportion of affordable housing has increased significantly, and the gross profit margin of the commodity housing projects recognized in the current reporting period were relatively low, thus resulting in a significant year-on-year decline in the operating revenue and gross profit level of the property segment during the current reporting period;

(2) as affected by COVID-19, the downstream customers of cement enterprises resumed production lately, and the commencement and resumption of construction of various projects also resumed in slow pace. Although the combined sales volume of cement and clinker increased year-on-year in the second quarter with the Company’s devoted efforts, there was still a certain gap between the first half of 2020 and the same period of last year, coupled with the decrease in selling price year-on-year, the operating revenue and profit of cement business decreased year-on-year accordingly; and

(3) as affected by COVID-19, in response to the government’s call, the Company reduced and waived the rent of some small and medium-sized enterprises, resulting in a year-on-year decrease in the revenue and profit of the investment properties.

The Group recorded net profit attributable to shareholders of the Company for the six months ended 30 June 2019 of approximately RMB3,045,574,000, with basic earnings per share of RMB0.29.

During the six months ended 30 June 2020, the Group has recorded (i) consolidated sales volume of cement and clinker of approximately 42.10 million tonnes (in accordance with the scope of accounting reporting), representing a decrease of approximately 7.02% from the same period of last year of approximately 45.28 million tonnes; (ii) sales volume of concrete of approximately 6.02 million cubic meters, representing a decrease of approximately 26.16% from the same period of last year of approximately 8.15 million cubic meters; and (iii) booked gross floor area of approximately 621.0 thousand sq.m. from property development, representing an increase of approximately 36.54% from the same period of last year of approximately 455.0 thousand sq.m.

The information in this announcement is based on the Company’s preliminary estimations. Detailed financial information of the Group for the six months ended 30 June 2020 will be announced in August 2020, which shall prevail over the information contained herein.

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Shareholders of the Company and potential investors are advised to exercise caution when dealing in the shares of the Company.

By order of the Board BBMG Corporation Jiang Deyi* Chairman

Beijing, the PRC, 16 July 2020

As at the date of this announcement, the executive directors of the Company are Jiang Deyi, Wu Dong and Zheng Baojin; the non-executive directors of the Company are Guo Yanming and Xue Chunlei; and the independent non-executive directors of the Company are Wang Guangjin, Tian Lihui, Tang Jun and Ngai Wai Fung.

• for identification purposes only

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