Link Xiong'an New Area with Beijing New Airport; Contract amounts approximately RMB1.19 billion

 

HONGKONG, CHINA - MediaOutReach - 15 October 2019 - Hebei Construction Group CorporationLimited ("Hebei Construction Group" and itssubsidiaries, together, the "Group", stock code: 1727) is pleased to announcethat the Company received the letter of acceptance, stating that the Companyhas won the ZT2 bid section of main body construction project of Beijing-Hebeiboundary to Jinshi Expressway section along Beijing New Airport - DezhouExpressway (the "Project"). The contract amount of the Project isapproximately RMB1.19 billion and the construction period is 19 months.  The Project is expected to be completed in2021.

The Project is located within the jurisdiction of Langfang City, HebeiProvince, which starts from Beijing-Hebei boundary in the east of JijiazhuangVillage, Gu'an County, Langfang City, and links to Beijing section (theconnecting line between the north and south terminals of the new airport) withthe roadbed being 14 kilometers in length and the road surface being 14.4kilometers in length. The Project is an integral part of Beijing-DezhouExpressway. Upon completion, the Beijing-Dezhou Expressway will become the mainexpressway from Xiong'an New Area to Beijing new airport and an important linkbetween Xiong'an New Area and southeast Hebei and western Shandong.

The Board believes that winning the bid for the Project demonstrates theCompany's strong strength and leading position in the construction industry inHebei Province and will create good opportunities for the Company to furtherexpand its market and business, improve its profitability and realizecross-regional development.

HebeiConstruction Group has laid a solid foundation in Hebei Province in its long history.Leveraging on its high quality construction engineering services andgeographical advantages, the Group has played an important role in theconstruction of Beijing new airport and Xiong'an New Area. Being the only non-state-ownedcompany to participate in the construction of key components of Beijing DaxingInternational Airport, the Group has accumulated contract value of more thanRMB3 billion. The development potential of Hebei Xiong'an New Area willcontinue to be growth drivers of the Group.

Early this year, theCentral Committee of the Communist Party and the State Council of China haveapproved the "Master Plan for the HebeiXiong'an New Area 2018-2035". On October 10, Xiong'anNew Area released the "Notice forTransfer the Right to the Use of State-owned Construction Land of Xiong'an BusinessService Center Project" 《雄安商務服務中心項目國有建設用地使用權出讓公告》in which land ofconstruction projects will be supplied through public transfer of rights. Thisimplies Xiong'an New Area has transformed from planning stage to full-scaleconstruction. More infrastructure projects are expected to commence in fullfledge in the future. As one of the leading non-state-owned constructionenterprises in China, the largest non-state-owned construction enterprise inthe Beijing-Tianjin-Hebei region, and the largest construction enterprise inHebei Province, the Group is expected to continue to benefit from the coordinated development of Beijing-Tianjin-Hebei and constructionof Xiong'an New Area in the future.

Mr. LI Baozhong, Chairman and Executive Directorof Hebei Construction Group, said, "Beijingnew airport 'has caught the eye of the entire world and we are the only non-state-owned enterprise to participate in itsconstruction. Winning the bid for the Beijing-Dezhou Expressway implies that wewill participate in the construction of the main expressway from Xiong'an NewArea to Beijing new airport as well. As a leading player in the constructionindustry of Hebei Province, we are set to embrace greatdevelopment opportunities from the Beijing-Tianjin-Hebei strategic developmentzone and Xiong'an New Area. Wewill work closely with the government, financial institutions, central andstate-owned enterprises and major property developers to actively exploremutually beneficial cooperation opportunities and create more value."

About Hebei Construction Group Corporation Limited

Hebei Construction GroupCorporation Limited was established in 1952 and rooted in Hebei Province for 67years. It has benefited from the coordinated development ofBeijing-Tianjin-Hebei and the construction of Xiong'an New Area. The Group hasgrown into a leading comprehensive private construction enterprise in China andhas been included in the Fortune 500Chinese Enterprises (2019). The group mainly provides integrated solutionsfor engineering contracting of building construction and infrastructureprojects. According to Frost & Sullivan, Hebei Construction Group is thelargest non-state-owned construction contracting company inBeijing-Tianjin-Hebei region and the second largest non-state-ownedconstruction contracting company in China.