For Immediate Release

16 Aug 2019

(Stock Code2886.HK)

Binhai Investment Announces 2019 Interim Results,

Total Revenue Maintained a Steady Growth

Supported by Energy Development Policy,

Proactively Expand Scale of Operation

Financial Highlights (For Period Ended 30 June 2019)

  • Total revenue was about HK$1.778 billion by a POP increase of 10%
  • Profit was approximately HK$67.63 million, representing a POP decrease of 8%
  • Total asset was approximately HK$5.869 billion, representing a POP decrease of 2%
  • Profit attributable to owners of the Company was about HK$66 million, representing a POP decrease of 7%
  • The total gas pipeline network was approximately 2,782km, representing an increase of 138 km as compared with the end of last year
  • The piped gas sales income increased 9% to HK$1.494 billion

(16 Aug 2019 - Hong Kong) Binhai Investment Company Limited ("Binhai Investment" or the "Company", stock code: 2886.HK, together with its subsidiaries, the "Group") is principally engaged in the construction of gas pipeline networks, gas construction and installation service, sales of piped natural gas, pipeline transportation and bottled natural gas sales. Binhai Investment is pleased to announce the consolidated results of the Group for the six months ended 30 June 2019 (the "Reporting Period").

For the Reporting Period, total revenue of the Group was about HK$1.778 billion by a POP increase of 10%; total asset was approximately HK$5.869 billion, representing a POP decrease of 2%; gross profit was approximately HK$245.01 million, representing a POP decrease of 7%; profit was approximately HK$67.63 million, representing a POP decrease of 8%; the total gas pipeline network was approximately 2,782km, representing an increase of 138 km as compared with the end of last year; the piped gas sales income increased 9% to HK$1.494 billion.

Wonderful Sky Financial Group 皓天財經集團

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9/F, The Centre, 99 Queen's Road Central, Central, Hong Kong 香港中環皇后大道中 99 號中環中心 9 樓全層

T 852 2851 1038 F 852 2815 1352 E enquiry@wsfg.hk W www.wsfg.hk

Gas Construction and Installation Service

The Group constructs gas pipelines for its clients and connects such pipelines to the Group's main gas pipeline networks. The Group then charges gas construction and installation service fees from industrial and commercial customers, property developers and property management companies. As at 30 June 2019, the Group's total gas pipeline network was approximately 2,782 kilometers, representing an increase of 138 kilometers of the pipeline network from 2,644 kilometers as at 31 December 2018. During the Period, the gas construction and installation service income amounted to approximately HK$227,445,000, representing an increase of HK$27,182,000 or 14% as compared to HK$200,263,000 for the corresponding period last year.

Piped Gas Sales

During the Period, consumption of piped gas by residential and industrial customers amounted to approximately 4,954*106 and 12,636*106 mega-joules respectively, as compared to 4,006*106 and 12,068*106 mega-joules respectively for the corresponding period last year. During the Period, the piped gas sales income of the Group amounted to HK$1,493,924,000, representing an increase of HK$121,508,000 or 9% as compared to HK$1,372,416,000 for the corresponding period last year. The increase in piped gas sales income is mainly due to the increase in natural gas sales volume.

Pipeline Transportation

The Group transports gases for clients through gas pipeline networks and charges transportation fees. During the Period, the volume of gases transported by the Group for its clients amounted to 538,077,550 cubic meters and pipeline transportation income amounted to HK$45,296,000, representing an increase of HK$9,564,000 or 27% as compared to HK$35,732,000 for the corresponding period last year.

Property Development

As at 30 June 2019, the Group held a piece of land under development of approximately 15,899.6 square meters located to the east of Central West Road, west of Central Road, north of Xi San Road and south of Xi Er Road in the Tianjin Airport Economic Area in the Binhai New Area of the PRC, with land use rights for commercial use for a term of 40 years from 31 December 2009. In view of the incompatibility of real estate business with the Group's current strategic direction which focuses on the development of gas business, the Group plans to dispose of the above property under development. The management emphasized the decision of the disposal of the real estate, and had appointed professional

Wonderful Sky Financial Group 皓天財經集團

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9/F, The Centre, 99 Queen's Road Central, Central, Hong Kong 香港中環皇后大道中 99 號中環中心 9 樓全層

T 852 2851 1038 F 852 2815 1352 E enquiry@wsfg.hk W www.wsfg.hk

staff to actively contact agents and potential buyers.

Prospects

Following the energy transformation and the further promotion of the plan of "Winning the Battle for a Blue Sky", there is an enormous potential for domestic demand for clean energy. During the first half of the year, the national demand for natural gas demonstrated a steady growth. The national apparent consumption volume of natural gas reaches 149.3 billion cubic metres, representing a year on- year growth of 10.8%.

In respect of reform of the natural gas system, the PRC government has decided to establish a national pipeline network company as a key step in the marketisation reform of natural gas. This allows the state-owned oil and gas enterprises to concentrate on exploration and enhancement of production volume in order to improve the supply capacity of natural gas. Also, the increase in number and further diversification in the nature of suppliers, users and intermediary service agents will benefit the progress of marketisation reform of natural gas prices.

The promulgation of the latest "Special Administrative Measures for Access of Foreign Investment (Negative List) (2019 Edition)*" has completely opened up the market access of city gas for foreign investment which encourages the development of city gas and is beneficial to the downstream utilisation of natural gas, bringing new development opportunities to large-scale Hong Kong-listed and overseas-registered domestic urban gas companies including the Group. The Group will continue to capitalise on its geographical advantages in the existing operating regions in order to proactively expand its scale of operation and promote the steady growth of operating results.

~ End ~

Wonderful Sky Financial Group 皓天財經集團

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9/F, The Centre, 99 Queen's Road Central, Central, Hong Kong 香港中環皇后大道中 99 號中環中心 9 樓全層

T 852 2851 1038 F 852 2815 1352 E enquiry@wsfg.hk W www.wsfg.hk

About Binhai Investment Company Limited (Stock Code: 2886.HK)

Binhai Investment Company Limited is principally engaged in the construction of gas pipeline networks, the provision of connection services, the sales of piped gas, pipeline transportation and bottle gas sales. The Company listed on the main board in Hong Kong on 11 February 2014 (Stock Code: 2886.HK). As one of the earliest foreign-funded enterprises participating in the public utilities industry in the PRC, the Company is committed to aligning with the national policy of the PRC in providing clean energy for the commercial and industrial users and urban citizens, also developing the gas market in mainland China. Leveraging on the Company's long experience in the industry, safe and trustworthy service quality, professional expertise as well as the close relationship with the local government, Binhai Investment has a coverage of gas business that encompasses six provinces and two municipalities across the PRC. The Company's ultimate controlling shareholder is Tianjin TEDA Investment Holding Co. Ltd. With the benefits of the abundant resources in Tianjin, the economic center in Bohai Rim area, and leveraging on the rapid development in Binhai New Area, the Company ties in with the thriving development in Binhai New area with a brand new image to strengthen its principal operation, gas business, expand business scale and foster organic growth. For detailed information of the Company, please visit the website of the Company at http://www.binhaiinv.com/.

This press release is distributed by Wonderful Sky Financial Group Limited on behalf of Binhai

Investment Company Limited.

For further information, please contact:

Wonderful Sky Financial Group

Ivy Chen

Tel: (852) 3970 2229

Email: binhai@wsfg.hk

Wonderful Sky Financial Group 皓天財經集團

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9/F, The Centre, 99 Queen's Road Central, Central, Hong Kong 香港中環皇后大道中 99 號中環中心 9 樓全層

T 852 2851 1038 F 852 2815 1352 E enquiry@wsfg.hk W www.wsfg.hk

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Binhai Investment Company Limited published this content on 20 August 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 August 2019 15:51:07 UTC