Beijing Capital International Airport : ANNOUNCEMENT INSIDE INFORMATION

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.

ANNOUNCEMENT

INSIDE INFORMATION

This announcement is made by Beijing Capital International Airport Co., Ltd. (the "Company") pursuant to the Inside Information Provisions (as defined under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules")) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and Rule 13.09(2)(a) of the Listing Rules.

OPERATING RIGHTS TRANSFER AGREEMENT

Reference is made to the announcement of the Company dated 24 May 2019 in relation to the proposed Transfer of Operating Rights for Car-parking Buildings and Lots at the Beijing Airport (the "Announcement"). Unless otherwise defined, capitalised terms herein shall have the same meanings ascribed to them in the Announcement.

The board (the "Board") of directors (the "Directors") of the Company is pleased to announce that, after completion of the Open Business Invitation, the consortium formed by Shouzhong Investment Management Company Limited* (首中投資管理有限公司) and Beijing Jingtai Transportation Investment Operations Company Limited* (北京靜態交通投資運營有限公司) (the "Consortium") was awarded the tender in respect of the proposed Transfer of Operating Rights for Car-parking Buildings and Lots at Beijing Airport. The Consortium has established Beijing Shouzhong Jingtai Transportation Car-parking Management Company Limited* (北京首中靜態交通停車管理有限公司) ("Project Company") as the special purpose vehicle to operate and manage the Car-parking Buildings and Lots at the Beijing Airport.

On 30 December 2019, (i) the Company, (ii) the Consortium and (iii) the Project Company entered into the operating rights transfer agreement ("Operating Rights Transfer Agreement"), pursuant to which the Company agreed to transfer the operating rights and the rights to receive revenue of the Car-parking Buildings and Lots to the Project Company for a term of 15 years commencing from 1 January 2020 to 31 December 2034. Such operating rights shall mainly include the management, operation, renewal and maintenance of the car-parking areas, the commercial properties, management

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properties, car-parking facilities and equipment, advertising space, public equipment and facilities, roads, passageways and other areas within the Car-parking Buildings and Lots (excluding the reserved parts).

To the best of the Directors' knowledge, information and belief having made all reasonable enquiry, the Consortium and the Project Company are third parties independent of the Company and its connected persons.

The fees payable by the Project Company to the Company under the Operating Rights Transfer Agreement are comprised of the following:

1. Rental payment for the Car-parking Buildings (the "Rental"): the Project Company shall pay the Rental of RMB55 million to the Company per year for the initial period from 1 January 2020 to 31 December 2024. Thereafter, the annual amount of Rental shall be adjusted upwards by 10% every five years for the remaining term, i.e. RMB60.5 million from 1 January 2025 to 31 December 2029 and RMB66.55 million from 1 January 2030 to 31 December 2034;
2. Operating rights transfer fees (the "Transfer Fee"): the Project Company shall pay the Transfer Fee of RMB15 million to the Company from 1 January 2020 to 31 December 2024, RMB16.5 million from 1 January 2025 to 31 December 2029 and RMB18.15 million from 1 January 2030 to 31 December 2034; and
3. Operating income commission (the "Operating Income Commission"): For each year commencing from 1 January 2020, the Project Company shall pay to the Company Operating Income Commission equivalent to 55% of its total income generated from operating the Car- parking Buildings and Lots (excluding income from the entrusted management of trolleys and staff parking services).
4. During the term of operation, if there is any adjustment to the overall plan of Beijing Airport due to factors such as the suspension or termination of operating rights transfer of car-parking areas No.1 and No.5 due to public interest or adjustment of national policy, the Company shall deduct the Transfer Fee based on the appraisal value of car-parking areas No. 1 and No.5 according to the Asset Appraisal Report. During the term of operation, if the Company modifies or adjusts other parts of the Transfer of Operating Rights, resulting in the Project Company being unable to operate normally in accordance with the agreed scope of the Transfer of Operating Rights, the Company may negotiate with the Project Company separately on the deduction of the Rental and Transfer Fee.

As disclosed in the Announcement, given that the Car-parking Buildings and Lots are important ancillary buildings and facilities of the Beijing Airport, the Transfer of Operating Rights can (i) further enhance the standard of management of the Car-parking Buildings and Lots at the Beijing

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Airport and the efficiency of utilisation of resources; (ii) introduce advanced professional technologies and management model; and (iii) enhance the operation efficiency and service quality of the Car-parking Buildings and Lots.

LISTING RULES IMPLICATIONS

As the transactions contemplated under the Operating Rights Transfer Agreement are of a revenue nature in the ordinary and usual course of business of the Company, the entering into of the Operating Rights Transfer Agreement does not constitute a notifiable transaction of the Company under Chapter 14 of the Listing Rules pursuant to Rule 14.04(1)(g) of the Listing Rules.

By order of the Board

Meng Xianwei

Secretary to the Board

Beijing, the PRC

30 December 2019

As at the date of this announcement, the Directors of the Company are:

Executive Directors:	Mr. Liu Xuesong, Mr. Han Zhiliang and Ms. Gao Lijia
Non-executive Directors:	Mr. Gao Shiqing, Mr. Yao Yabo and Mr. Ma Zheng
Independent Non-executive	Mr. Japhet Sebastian Law, Mr. Jiang Ruiming, Mr. Liu Guibin and
Directors:	Mr. Zhang Jiali

An announcement containing details of the matter is available for viewing at the website of Hong Kong Exchanges and Clearing Limited at http://www.hkex.com.hk under "Latest Listed Companies Information", at the website of the Company at http://www.bcia.com.cn and the website of Irasia.com at http://www.irasia.com/listco/hk/bcia.

• For identification purposes only

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