Hong Kong Exchanges and Clearing : 2018 CORPORATE SOCIAL RESPONSIBILITY REPORT (ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT)

About This Report

This report is a true reflection of how BBMG Corporation (hereinafter referred to as "BBMG" or the "Company") has actively fulfilled its economic, social and environmental responsibilities and in addition, has achieved comprehensive, coordinated and sustainable development. Statements concerning future business plans, development strategies, and any other future endeavors herein do not constitute a substantial commitment of the Company to investors.

Reporting Period

This report covers the period from 1 January 2018 to 31 December 2018. Part of the contents of the report may cover periods outside of the above reportin period.

Scope of the Report

All cases and materials in this report are from BBMG and its subsidiaries.

Sources of Information

The data and information used in this report come from the following sources: internal data collection and statistics systems of BBMG, report preparation from qualitative and quantitative information collection tools, and cases of social responsibility practice submitted by subsidiary companies.

Basis of Reporting

This report has been prepared in compliance with the social responsibility information disclosure standards that are commonly accepted in the industry. Based on the industry background, this report highlights the characteristics of the Company. In accordance with the ESG Reporting Guide of the Hong Kong Stock Exchange Limited, the report was prepared in strict compliance with the four principles for ESG reporting - "Materiality", "Quantitative", "Balance", and "Consistency" - and the requirements of "Director Responsibility" with reference to the Guidelines for Environmental Information Disclosure of Listed Companies of the Shanghai Stock Exchange, the Guidelines for Preparation of Social Responsibility Report for Cement Enterprises of China Cement Association, and the Global Reporting Initiative (GRI) Standards.

Abbreviations

For the convenience of presentation and reading, BBMG Corporation is also represented by "BBMG", "Company" or "We" in this report.

Access to the Report

This report is published in both English and Chinese. The electronic version is available for download at www.sse.com.cn and http://www.hkexnews.hk.

Chairman's Statement

2018 saw an extraordinary year in the history of BBMG development. Facing the complex ever changing external environment with arduos and onerous reform and development tasks, BBMG was guided by the new development concept and continued forging ahead, leaving an impressive mark on its grand blueprint of creating a first-class industry group in the world.

Great achievement is made by bearing in mind one's original goal; glory is reaped by living up to one's mission. In the past year, we have actively promoted the integrated development of Beijing-Tianjin-Hebei region and form an industrial layout that is highly compatible with the national strategy. Focusing on the "Four Centers" of the capital, we vigorously "accelerated advancement by relieving and rectification" and realized the organic combination of industrial restructuring and advancement. We continued to deepen the adjustment and reform of the management and control system and organizational structure, and promoted the reform and development of BBMG in a stable and forward-looking manner. We comprehensively strengthened basic management, consolidated our foundation, and improved the quality and efficiency of our development.

In the spirit of reform and innovation, we take the initiative to act actively and with courage, integrating our economic, environmental, and social responsibilities with industrial development. We play an active role in assisting in relieving the production capacity and upgrading industries of Beijing. In recent years, we have, on our own initiative, shut down 25 key enterprises in Beijing and vacated 310,000 square meters of land and buildings. By optimizing resource allocation, we built a "high-grade, prevision and advanced" industrial structure and realized the organic combination of industrial restructuring and advancement. In 2018, we completed 461 tasks of relieving and rectification. We pay attention to people and society by sharing the concerns of the government with practical actions. For instance, we undertook a large number of solid waste disposal tasks in areas where we operate; we took the initiative to contract the construction of affordable housing, renovation of run-down and ecological conservation areas, renovation and greening of abandoned mines, construction of public facilities, etc. In order to help people achieve their desire for a better life we explored and promoted sci-tech and cultural innovation, health and elderly care,

modern services, etc. And we dedicated ourselves to serving the construction of the "Four Centers" of the capital city, providing green products and quality services to key projects such as the Beijing City Sub-center ( 北京城市副中心 ), Xiong'an New District ( 雄安新区 ), Winter Olympic Games stadiums ( 冬奥场馆 ) and the new airport, all of which won widespread acclaim.

In 2018, keeping in mind the responsibility and mission entrusted to us by the State, we thoroughly implemented the national green development strategy. With green building materials as the core, we struck the balance between property development, property investment and management, and other segments, leading the building materials industry to embark on a green development path. We practiced in depth the concept that "Lucid waters and lush mountains are invaluable assets" by working to achieve urban green development while promoting the sustainable development of business operation and the environment. We are deeply concerned about the vital interests of employees; we took concrete steps to ensure their occupational health and safety and incorporated the realization of employees' dreams into the drive of corporate development. We assumed social responsibility with resolve helping to sustain social harmony and stability and we contributed to regional economic development.

2019 marks the 10th anniversary of the listing of the H shars of BBMG. Looking into the future from the present, we will make BBMG bigger, stronger, and better by sticking to our original goal, pooling the strength of reform and opening-up, innovation and cooperation, and making unremitting efforts for self-improvement. We will continue to achieve high-quality development and make greater contributions to economic development and social progress!

Chairman

Jiang Deyi

About Us

Corporate core values:

Faith, responsibility and respect

Corporate mission:

Fulfillment of missions, values and responsibilities

BBMG spirits:

"Three emphasis and one endeavor" - focusing on practice, innovation, and efficiency, and striving to be the first-class

Corporate

Culture

Corporate human spirits of"eight specials":

Especially hardworking, dedicated, passionate, innovative, collaborative, enterprising, considerate and practical

Corporate

BBMG	Corporate pragmatic

BBMG was founded in December 2005, with its H shares and A shares listed on the main board of the Hong Kong Stock Exchange on July 29, 2009 and the Shanghai Stock Exchange on March 1, 2011 respectively.

Since its inception, BBMG has focused its unique resource advantages on manufacturing of cement and new green building materials, extending vertically to real estate development, property investment and management, and

BBMG actively fulfills its corporate social responsibility. To serve the construction of the "four centers" of the capital, we actively contribute to Beijing's urban planning and relieving of non-capital functions. We participated in national key projects and major infrastructure constructions such as the Beijing Olympic Games stadiums, Beijing City Sub- center, and Xiong'an New District. Relying on our superior resources in Beijing-Tianjin-Hebei region, we take the lead in realizing integrated development of the building materials

development philosophy:

integration, communion, mutual benefit and prosperity

working culture:

work with aspiration, competence, efficiency, success and prudence

other industries, thereby becoming one of China's largest building materials manufacturers with a unique vertically integrated industrial chain and business covering more than 20 provinces, autonomous regions and municipalities across the country and expanding overseas.

BBMG is one of the leading enterprises in China's building materials industry, one of the largest suppliers of green environmentally friendly and energy-saving building materials in the Bohai Rim region. BBMG is also one of the most competitive real estate developers and one of the largest investment property holders and managers in Beijing. Our cement production capacity ranks third in the country, coupled with strong regional scale advantage and market control, making us the leader of domestic cement industry in terms of low-carbon environmental protection, energy saving and emission reduction and circular economy and among the top 500 Chinese enterprises in overall strength, top 200 in economic efficiency and top 100 in profitability.

Top 500 Chinese enterprises in overall strength

Top 200 in economic efficiency Top 100 in profitability

05 BBMG CORPORATION

industry in the region.

In 2018, BBMG continued to improve its operating quality and economic efficiency with substantial growth in major economic indicators:

		A year-on-year
A year-on-year	A year-on-year	increase of 30.53%
increase of	increase of

14.94% 14.81%

Net profit attributable to	Basic earnings per	Operating income
shareholders of listed	share was 0.31	was 83.117
companies was 3.26	yuan/share	billion yuan
billion yuan

Based on the total share capital of 10,677,771,134 shares at the end of 2018, the Company distributed a cash dividend of

0.55 yuan (including tax) every 10 shares to all shareholders, totaling RMB 587,277,412.37, so that shareholders truly shared the Company's development results. The Company paid taxes of about 8.1 billion yuan in 2018.

BBMG 2018 Honors & Awards

	Top 500 Chinese		Excellent
Top 500 Chinese	500 Most Valuable	Company in
Enterprises 2018	Manufacturing	Developing
Brands of China
(188th Place)	Enterprises 2018	Building Materials
	(the 79th place)		Service Industry
China Enterprise	China Enterprise	World Brand	China Building
Confederation / China	Confederation / China
Lab	Materials Federation
Enterprise Directors	Enterprise Directors
Association	Association
Most Noteworthy	Top10 Shanghai and	Top10 Shanghai and	Top10 Shanghai and
Real Estate	ShenzhenListed Real	ShenzhenListed Real	ShenzhenListed Real
Developers for	Estate Developers in	Estate Developers in	Estate Developers in
Capital Market 2018	FinancialStability 2018	Investment Value 2018	Overall Strength 2018
China Real Estate	China Real Estate	China Real Estate	China Real Estate
TOP10 Research	TOP10 Research	TOP10 Research	TOP10 Research
Group	Group	Group	Group
Outstanding			"JinzhiAward" Most
Enterprises in		Best IR Hong
	SociallyResponsible
Contribution to the
	Kong Listed	Listed Company in
40-Year Reform and
	Company 2018	China 2018
Opening-up
China Enterprise		New Fortune	Financial website
Reform and			JRJ.com	06
Development		2018 Corporate Social Responsibility Report
Society