China Communications Construction : SUPPLEMENTAL ANNOUNCEMENT CONNECTED TRANSACTION SUBSCRIPTION OF THE PERPETUAL CAPITAL SECURITIES

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中國交通建設股份有限公司

CHINA COMMUNICATIONS CONSTRUCTION COMPANY LIMITED

(A joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 1800)

SUPPLEMENTAL ANNOUNCEMENT

CONNECTED TRANSACTION

SUBSCRIPTION OF THE PERPETUAL CAPITAL SECURITIES

Reference is made to the announcement of China Communications Construction Company Limited (the "Company") dated 27 December 2019 in relation to the subscription of the perpetual capital securities (the "Announcement"). Unless the context otherwise requires, capitalised terms used in this announcement shall have the same meanings as those defined in the Announcement.

The Board would like to provide the Shareholders and potential investors of the Company with additional information in relation to the transaction as follows:

INFORMATION ABOUT THE SUBSCRIPTION

On 27 December 2019, Tianjin CCCC Greentown issued the perpetual capital securities in the total principal amount of RMB1,719,195,800 (the "PCS"), all of which were subscribed by its existing shareholders on a pro rata basis. As at 27 December 2019, Tianjin CCCC Greentown was owned as to 39% by CFHCC City Investment, 20% by CCCC Beijing-Tianjin-Hebei Investment and 41% by Tianjin Greentown Northern Real Estate Co., Ltd. (a subsidiary of CCCG, "Greentown Northern Real Estate"), and such shareholding remains unchanged as at the date of this announcement. Thus, CFHCC City Investment and CCCC Beijing-Tianjin-Hebei Investment (both are wholly- owned subsidiaries of the Company) subscribed for the PCS in the respective principal amount of RMB670,486,362 and RMB343,839,160 (representing 39% and 20% of the total principal amount of the PCS, respectively), and Greentown Northern Real Estate subscribed for the PCS in the principal amount of RMB704,870,278 (representing 41% of the total principal amount of the PCS). The principal terms of the above subscriptions are substantially the same.

Save as disclosed above, there is no other outstanding PCS held by other parties as at the date of this announcement.

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INFORMATION ABOUT THE PCS

1. Rights of the PCS
   Pursuant to the terms and conditions of the PCS, the PCS does not confer a voting right and cannot be converted into equity interests of Tianjin CCCC Greentown.
   The subscription of the PCS will not result in a change of control of Tianjin CCCC Greentown or have any impact on its composition of the board of directors.
2. Accounting treatment

Based on the terms and conditions of the PCS, the PCS has been recorded as equity securities in the financial statements of the Company.

INFORMATION ABOUT TIANJIN CCCC GREENTOWN

Tianjin CCCC Greentown was established on 31 October 2018 by the Company and CCCG to jointly invest in the construction of Chentang Area integrated development project in Hexi District, Tianjin (the "Project"). Tianjin CCCC Greentown has acquired three land parcels for the Project with a gross site area of 66,000 sq.m at a total consideration of RMB2.57 billion, which are under construction at the current stage and proposed to be developed into residential properties with a total gross floor area of approximately 263,100 sq.m.

According to the unaudited financial statements of Tianjin CCCC Greentown prepared in accordance with the International Financial Reporting Standards, the total asset of Tianjin CCCC Greentown as at 30 June 2019 was RMB3,009 million, and its net asset value was RMB996 million. The table below sets out the audited net profit/(loss) of Tianjin CCCC Greentown (before and after tax and extraordinary items) for the period from the establishment date to 31 December 2018:

	The period
	from the
	establishment
	date to
	31 December
	2018
	(Audited)
	RMB'000
Net profit/(loss) before tax and extraordinary items	(468)
Net profit/(loss) after tax and extraordinary items	(351)

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REASONS FOR AND BENEFITS OF THE TRANSACTION

As elaborated above, the Project is under construction and development, requiring large capital investment from Tianjin CCCC Greentown from time to time. In December 2019, Tianjin CCCC Greentown issued the PCS to its shareholders to raise funds for the investment in the Project as it could lower the gearing ratio of Tianjin CCCC Greentown as compared with external loans, which could facilitate its future financing from banks and other institutions. Meanwhile, the subscription of the PCS provides the Group with long-term investment opportunities and expands its source of income. The Board believes the subscription by the Group is beneficial to the Company and its Shareholders as a whole.

By order of the Board

China Communications Construction Company Limited

ZHOU Changjiang

Company Secretary

Beijing, the PRC

6 March 2020

As at the date of this announcement, the directors of the Company are LIU Qitao, SONG Hailiang, LIU Maoxun, HUANG Long#, ZHENG Changhong# and NGAI Wai Fung#.

• Independent non-executive director of the Company

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