BBMG Corporation — Earnings Release 2022

Jul 14, 2022

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 2022 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 approximately RMB1,800,000,000 and RMB1,900,000,000 for the six months ended 30 June 2022, representing a decrease between approximately 3% and 1% 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 approximately RMB1,800,000,000 and RMB1,900,000,000 for the six months ended 30 June 2022, representing a decrease between approximately 3% and 1% when compared with the same period of last year.

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The Board considers that the decrease in the Group's performance year-on-year was mainly due to the impact of the epidemic, the blockage of the supply chain and products delivery and slowing down of the construction projects, which in turn caused the sales volume of the Group’s cement and clinker to fall significantly, and the increase in the price of major raw materials as fuel such as coal has caused the surging of production costs, resulting in the decrease in the overall efficiency of the cement business. As affected by the regulatory policies and the downward pressure on the economy, market confidence and expectations declined accordingly, and the recognised gross profit margin of the Company's property business has also declined. In response to the government's call, the Group has also reduced or exempted rents for small, medium and micro enterprises to relieve their financial difficulties.

At present, as the impact of the epidemic tends to weaken, production order is restored at an accelerated pace, and the construction of various projects is accelerated. The Company will seize the opportunities for development, strive to minimize the impact of the epidemic and ensure the achievement of the business annual targets.

The Group recorded net profit attributable to shareholders of the Company for the six months ended 30 June 2021 of approximately RMB1,911,844,600, with basic earnings per share of RMB0.14.

During the six months ended 30 June 2022, the Group has recorded (i) consolidated sales volume of cement and clinker of approximately 38.40 million tonnes (in accordance with the scope of accounting reporting), representing a decrease of approximately 20% from the same period of last year of approximately 48.01 million tonnes; and (ii) booked gross floor area of approximately 774.0 thousand sq.m. from property development, representing an increase of approximately 1% from the same period of last year of approximately 764.0 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 2022 will be announced in August 2022, 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 Yingwu* Executive Director

Beijing, the PRC, 14 July 2022

As at the date of this announcement, the executive directors of the Company are Jiang Yingwu, Wu Dong and Zheng Baojin; the non-executive directors of the Company are Wang Zhaojia and Gu Tiemin; and the independent non-executive directors of the Company are Yu Fei, Liu Taigang, Li Xiaohui, Hong Yongmiao and Tam Kin Fong.

• for identification purposes only

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