BBMG Corporation — Earnings Release 2019

Jan 7, 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.

==> picture [283 x 78] intentionally omitted <==

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)

POSITIVE PROFIT ALERT

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 the shareholders of the Company and potential investors that, based on the Company’s preliminary estimations and calculations, for the year ended 31 December 2019, the Group is expected to record a net profit attributable to shareholders of the listed company of approximately RMB3,500 million to 3,900 million, representing a year-on-year increase of 7% - 20% and a net profit attributable to shareholders of the listed company after deducting non-recurring profit and loss of approximately RMB3,000 million to 3,400 million, representing a year-on-year increase of 3% to 17%.

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 the shareholders of the Company and potential investors that, based on the Company’s preliminary estimations and calculations, for the year ended 31 December 2019, the Group is expected to record a net profit

• 1 -

attributable to shareholders of the listed company of approximately RMB3,500 million to 3,900 million, representing a year-on-year increase of 7% - 20% and a net profit attributable to shareholders of the listed company after deducting non-recurring profit and loss of approximately RMB3,000 million to 3,400 million, representing a year-on-year increase of 3% to 17%.

The Board considers that such increase in the profit level for the year ended 31 December 2019 is mainly because (1) on the completion of the successful re-structuring of the Company and Jidong, the effect of re-structuring continued to appear and the benefits of re-structuring was further released. At the same time, by benefiting from the in-depth advancement of the supply-side structural reform of the cement industry and the positive impact of market demand improvement in the core regions, the selling price continued to increase year-on-year and the economic benefits continued to improve, thus, the profitability of the Company's cement segment has also increased year-on-year; (2) in 2019, the Company's property segment has proactively responded to market changes and continued to improve its operating efficiency. The booked GFA and booked gross profit margin both achieved year-on-year growth. Therefore, the profit of the Company's property segment was higher than the same period of last year; and (3) the changes in fair value gains and losses of the Company's property investment segment also increased year-on-year, thus, leading to an increase in non-recurring profit and loss year-on-year.

The net profit attributable to shareholders of the listed company and the net profit attributable to shareholders of the listed company after deducting non-recurring profit and loss for the year ended 31 December 2018 were RMB3,260,449,276.97 and RMB2,903,344,151.62 respectively and basic earnings per share was RMB0.31.

For the year ended 31 December 2019, the Group recorded (i) consolidated sales volume of cement and clinker of approximately 96.40 million tonnes (according to accounting records and calculation), representing a decrease of approximately 1.00 million tonne from the same period of last year of approximately 97.40 million tonnes; (ii) sales volume of concrete of approximately 17.46 million cubic meters, representing an increase of approximately 8.88% from the same period of last year of approximately 16.04 million cubic meters; and (iii) booked GFA of approximately 1,106.0 thousand square meters from property development, representing an increase of approximately 9.57% from the same period of last year of approximately 1,009.0 thousand square meters.

The information in this announcement is based on the Company’s preliminary estimations and calculations and has not been audited or reviewed by the independent auditors of the Company.

• 2 -

Detailed audited financial information of the Group for the year ended 31 December 2019 will be announced in March 2020, which shall prevail over the information contained herein.

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, 7 January 2020

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

• English translation denotes for identification purposes only

• 3 -