China Hongqiao : VOLUNTARY ANNOUNCEMENT

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.

China Hongqiao Group Limited

中國宏橋集團有限公司

(Incorporated under the laws of Cayman Islands with limited liability)

(Stock Code: 1378)

Voluntary Announcement

Reference is made to the announcement of China Hongqiao Group Limited (the "Company") dated 25 April 2013 in relation to the issue of the Medium-term Notes and Short-Term Financial Bonds in the People's Republic of China ("PRC") by Shandong Hongqiao New Material Co., Ltd. ("Shandong Hongqiao"), a wholly-owned subsidiary of the Company.

As the third quarterly financial information in 2019 of Shandong Hongqiao is available only in Chinese, the Company wishes to provide the following unaudited consolidated balance sheets as at 30 September 2019 and unaudited consolidated income statements for the nine months ended 30 September 2019 prepared by Shandong Hongqiao.

The board of directors of the Company wishes to remind investors that the financial information contained herein is prepared based on the generally accepted accounting principles of the PRC and the unaudited management accounts. It has not been reviewed or audited by the auditors of Shandong Hongqiao and the Company.

The investors are cautioned not to unduly rely on such information and are advised to exercise caution when dealing in the shares of the Company.

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		CONSOLIDATED BALANCE SHEET
Prepared by Shandong Hongqiao New Material Co., Ltd.		Date: 30 September 2019	Units: RMB
		Opening balance						Opening balance
Assets	Row	(Restated)	Ending balance		Liabilities and owners' equity	Row		(Restated)	Ending balance
Current assets:					Current liabilities:
Cash at bank and on hand	1	45,711,729,708.03	30,736,082,635.03		Short-term borrowings	28		14,929,054,607.62	19,620,310,949.25
Financial assets at fair value	2		53,625.00		Financial liabilities at fair value	29
through profit or loss					through profit or loss
Derivative financial assets	3				Derivative financial liabilities	30
Notes receivable	4	11,726,625,705.19	9,626,988,842.84		Notes payable	31		2,000,000,000.00	2,044,837,089.09
Accounts receivable	5	6,949,945,648.70	12,099,550,780.76		Accounts payable	32		16,668,872,874.83	15,356,865,970.38
Prepayments	6	1,226,748,489.70	8,274,395,715.93		Advances from customers	33		629,432,534.96	2,310,343,698.72
Other receivable	7	3,206,897,597.60	1,802,418,856.56		Staff remuneration payables	34		599,938,237.28	454,849,330.88
Inventories	8	19,351,221,610.46	21,968,756,512.60		Taxes payable	35		2,857,865,411.50	2,575,997,385.96
Assets held for sale	9		378,834,065.17		Other payable	36		9,297,075,247.98	9,926,768,586.82
Non-current assets due within one	10				Liabilities held for sale	37
year
Other current assets	11	1,297,891,658.34	1,282,253,558.87		Non-current liabilities due within	38		2,823,433,939.40	3,331,808,702.08
					one year
					Other current liabilities	39		4,019,450,000.00	9,936,428.57
Total current assets:		89,471,060,418.02	86,169,334,592.76		Total current liabilities:			53,825,122,853.57	55,631,718,141.75
Non-current assets:					Non-current liabilities:
Available-for-sale financial assets	12	111,000,782.51			Long-term borrowings	40		7,148,738,000.00	3,936,676,875.00
Held-tp-maturity investments	13				Bonds payable	41		41,077,257,643.07	41,081,883,144.05
Long-term receivables	14		2,000,000,000.00		Long-term payables	42		10,244,386,411.63	4,797,090,518.90
Long-term equity investments	15	122,858,410.08	2,398,498,349.63		Special payables	43
Other equity instrument	16		111,000,782.51		Estimated liabilities	44
investments
Investment property	17	143,606,397.98			Deferred income	45		553,820,162.35	559,394,613.71
Fixed assets	18	66,137,975,621.65	63,897,643,028.84		Deferred tax liabilities	46		346,288,146.70	341,150,823.70
Construction in progress	19	4,400,632,534.25	2,281,398,780.52		Other non-current liabilities	47		14,735,814.04	15,923,253.97
Biological assets for production	20
Oil and gas assets	21				Total non-current liabilities:			59,385,226,177.79	50,732,119,229.33
Intangible assets	22	5,037,438,248.62	4,949,120,344.40
Development expenses	23		2,427,707.90		Total liabilities:			113,210,349,031.36	106,363,837,371.08
Goodwill	24	608,817,605.80	608,817,605.80
Long-term prepaid expenses	25	898,345.39	2,210,577.92		Owners' equity:
Deferred tax assets	26	1,890,173,759.18	2,300,003,477.43		Share capital	48		9,921,364,362.00	9,921,364,362.00
Other non-current assets	27	254,889,016.24	232,096,825.25		Capital reserve	49
					Less: Treasury Share	50
Total non-current assets:		78,708,290,721.70	78,783,217,480.20		Other comprehensive income	51		-1,893,792.74	-1,624,841.03
					Surplus reserve	52		1,187,321,822.06	1,187,321,822.06
					Special reserve	53		389,683,008.50	457,830,958.86
					Undistributed profits	54		42,195,222,586.25	45,631,388,838.18
					Minority interests	55		1,277,304,122.29	1,392,433,561.81
					Total owners' equity:			54,969,002,108.36	58,588,714,701.88
TOTAL ASSETS		168,179,351,139.72	164,952,552,072.96		TOTAL LIABILITIES AND			168,179,351,139.72	164,952,552,072.96
					OWNERS' EQUITY
Person-in-charge of	Person-in-charge of		Person-in-charge of
corporate:		accounting:	accounting institution:
Zhang Bo		Zhang Ruilian			Ma Fei

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CONSOLIDATED INCOME STATEMENT
Prepared by Shandong Hongqiao New Material Co., Ltd.	January to September 2019	Units: RMB
				Amount for the		Accumlated
Item			Row	corresponding period		Amount for the
				last year		current year
I. Operating income			1	66,087,159,465.41		62,637,823,784.54
Less: Operating cost			2	53,934,183,538.56		49,670,070,035.48
Taxes and surcharges			3	666,136,935.87		615,196,946.16
Selling expenses			4	145,554,935.06		360,915,131.40
Administrative expenses			5	1,333,770,792.97		1,560,418,633.83
Research and development expenses			6	628,535,212.82		689,511,556.02
Financial expenses			7	3,879,109,983.36		3,921,748,501.88
Of which: Interests expenses			8	3,091,859,860.32		3,688,515,624.02
Interests income			9	512,846,500.11		157,036,182.66
Asset impairment losses			10	521,653,316.11		1,187,103,375.02
Credit impairment losses			11			258,380.57
Add: Other gains			12	7,500,714.29		14,376,375.02
Investment gains (Losses are indicated by"-")		13	-639,747,014.91		84,695,534.42
Gains from changes in fair value (Losses are indicated by		14	-1,923,675.00		53,625.00
"-")
Gains on disposal of assets (Losses are indicated by"-")		15	155,917.85		-681,759.26
II. Operating profit (Losses are indicated by"-")		16	4,344,200,692.89		4,731,044,999.36
Add: Non-operating income			17	47,628,174.36		274,207,930.26
Less: Non-operating expenses			18	11,989,190.64		3,859,988.78
III. Total profit (Losses are indicated by"-")			19	4,379,839,676.61		5,001,392,940.84
Less: Income tax expenses			20	1,902,540,232.83		1,358,780,664.85
IV. Net profit (Net loss is indicated by"-")			21	2,477,299,443.78		3,642,612,275.99
(I) Net profit from continuing operations (Net loss is indicated		22	2,477,299,443.78		3,642,612,275.99
by"-")
(II) Net profit from discontinued operations (Net loss is		23
indicated by"-")
Person-in-charge of	Person-in-charge of	Person-in-charge of
corporate:	accounting:		accounting institution:
Zhang Bo	Zhang Ruilian		Ma Fei

By Order of the Board

China Hongqiao Group Limited

Zhang Bo

Chairman

Shandong, the People's Republic of China

28 October 2019

As at the date of this announcement, the Board comprises nine directors, namely Mr. Zhang Bo, Ms. Zheng Shuliang and Ms. Zhang Ruilian as executive directors, Mr. Yang Congsen, Mr. Zhang Jinglei and Mr. Chen Yisong (Mr. Zhang Hao as his alternate) as non-executive directors, and Mr. Xing Jian, Mr. Han Benwen and Mr. Dong Xinyi as independent non-executive directors.

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