BBMG : 2020 INTERIM REPORT

September 10, 2020 at 04:40 am EDT

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

Stock Code : 2009

INTERIM

REPORT

For Identication Purposes Only

CONTENTS

2 CORPORATE INFORMATION

7 CHAIRMAN'S STATEMENT

10 MANAGEMENT DISCUSSION AND ANALYSIS

42 OTHER INFORMATION

49 REVIEW REPORT ON INTERIM FINANCIAL STATEMENTS

50 UNAUDITED INTERIM CONSOLIDATED BALANCE SHEET

53 UNAUDITED INTERIM CONSOLIDATED INCOME STATEMENT

55 UNAUDITED INTERIM CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

57 UNAUDITED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS

59 UNAUDITED INTERIM BALANCE SHEET OF THE COMPANY

62 UNAUDITED INTERIM INCOME STATEMENT OF THE COMPANY

63 UNAUDITED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS'S EQUITY OF THE COMPANY

65 UNAUDITED INTERIM STATEMENT OF CASH FLOWS OF THE COMPANY

67 NOTES TO UNAUDITED INTERIM FINANCIAL STATEMENTS

314 SUPPLEMENTARY INFORMATION TO UNAUDITED INTERIM FINANCIAL STATEMENTS

CORPORATE

INFORMATION

Chinese name of the Company	北京金隅集團股份有限公司
English name of the Company	BBMG Corporation*
Headquarters of the Company	Tower D, Global Trade Center
	No. 36, North Third Ring East Road
	Dongcheng District, Beijing 100013, the PRC
Registered address and principal	Tower D, Global Trade Center
place of business in the PRC	No. 36, North Third Ring East Road
	Dongcheng District, Beijing 100013, the PRC
Principal place of business	Room 405, Kai Wong Commercial Building
in Hong Kong	222 Queen's Road Central, Hong Kong
Website of the Company	www.bbmg.com.cn/listco
Legal representative	Jiang Deyi
The Board
Executive Directors	Jiang Deyi (Chairman)
	Wu Dong
	Zheng Baojin
Non-executive Directors	Guo Yanming
	Xue Chunlei
Independent non-executive Directors	Wang Guangjin
	Tian Lihui
	Tang Jun
	Ngai Wai Fung

* For identification purposes only

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CORPORATE INFORMATION

The Supervisory Board
Supervisors	Pei Ying (Chairman)
	Yu Kaijun
	Zhang Guoliang
	Zhuang Zhenguo
	Jiang Yu
	Song Lifeng
Committees
Audit Committee	Tian Lihui (Chairman)
	Wang Guangjin
	Tang Jun
	Ngai Wai Fung
	Guo Yanming
	Xue Chunlei
Remuneration and Nomination	Wang Guangjin (Chairman)
Committee	Wu Dong
	Tian Lihui
	Tang Jun
	Ngai Wai Fung
Strategic Committee	Jiang Deyi (Chairman)
	Zheng Baojin
	Wang Guangjin
	Tian Lihui
	Tang Jun
	Ngai Wai Fung

CORPORATE INFORMATION

Authorised Representatives	Jiang Deyi
	Lau Fai Lawrence
Board Secretary	Zheng Baojin
Company Secretary	Lau Fai Lawrence
Listing Information
A Shares
A Share registrar	China Securities Depository and Clearing
	Corporation Limited, Shanghai Branch
	3rd Floor, China Insurance Building
	166 Lujiazui Road East, Pudong New District
	Shanghai, the PRC
Place of listing	Shanghai Stock Exchange
Stock name	BBMG
Board lot	100 shares
Stock code	601992.SH
H Shares
H Share registrar	Computershare Hong Kong Investor Services Limited
	Shops 1712 - 1716, 17th Floor, Hopewell Centre
	183 Queen's Road East, Wan Chai, Hong Kong
Place of listing	The Stock Exchange of Hong Kong Limited
	(the "Hong Kong Stock Exchange")
Stock name	BBMG
Board lot	1,000 shares
Stock code	02009.HK

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CORPORATE INFORMATION

Principal bankers	Industrial and Commercial Bank of China Limited
	Agricultural Bank of China Limited
	Bank of Beijing Co., Ltd.
	China Construction Bank Corporation
	Bank of China Limited
Independent auditor	Ernst & Young Hua Ming LLP
	Certified Public Accountants
Legal advisers	Withers
	As to Hong Kong law
	Sino-Integrity Law Firm
	As to PRC law

Jiang Deyi

Chairman

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CHAIRMAN'S

STATEMENT

Dear Shareholders,

On behalf of the board of directors (the "Board") of BBMG Corporation (the "Company" or "BBMG", together with its subsidiaries, the "Group"), I am pleased to present to you the interim results of the Company for the six months ended 30 June 2020 (the "Reporting Period"), and report on the operating results of the Company during the said period for your review.

Review

The outbreak of COVID-19 epidemic has produced a significant impact on the production and operation of the Company. Confronted with the epidemic, the Company made scientific decisions, effectively overcame the combined impact of the traditional off- season for the industry in the first quarter and the production suspension during the epidemic period, actively created favorable conditions and promoted the resumption of work and production in a reasonable and orderly manner. With its solid efforts, the Company overcame the difficulties and achieved the fast recovery of main economic indicators in the second quarter, thus making excellent achievements.

During the Reporting Period, the Company recorded an operating revenue of RMB40,928.1 million, representing a year-on-year decrease of 8.3%. Net profit attributable to the shareholders of the parent company amounted to RMB1,523.6 million, representing a year-on-year decrease of 50.0%. Basic earnings per share attributable to the shareholders of the parent company amounted to RMB0.14.

CHAIRMAN'S STATEMENT

Prospect

On the one hand, the home and abroad situation is still complicated and severe and has a high degree of uncertainty and instability. China is dedicated to forming a new development pattern, pursuant to which domestic and foreign markets can boost each other with domestic market as the mainstay, and establishing mid-and-long term coordination mechanism for epidemic prevention and control and economic and social development; on the other hand, the Company achieved leapfrog development by acquisition and reorganization and possessed solid industrial basis and favorable development inertia. Looking into the second half of 2020, the Company will further boost its development confidence, grasp the development direction and seize new opportunities in the crisis, open up new grounds in changes, strengthen basic management, strengthen risk prevention and control, achieve stable operation, strive to minimize the influence and losses caused by the epidemic and strive to complete the operation indicators and all major works throughout the year, so as to implement the "13th Five-Year" plan thoroughly and lay a solid foundation for a good start on the "14th Five-year" plan.

Based on its position of "building a world-class cement industry group which is modern, professional and large in scale", the cement and ready-mixedconcrete segment will continue to cultivate the value highland with Beijing-Tianjin-Hebei region as the core, promote strategic extension in an orderly manner and strengthen strategic resource reserve. The Company strives to become the leading cement enterprise with the strongest core competitiveness in China, continue to develop and thrive, maintain the top three positions in the industry and lead and standardize industrial development. The modern building materials and commerce and logistics segment will continue to strengthen basic management and make precise control, provide and improve its existing products, tap its own advantages, define the industrialization path, build the core competitiveness and achieve large-scale coordinated development of the segments. The property development segment will stick to "fast development with good quality", speed up "internal circulation", achieve more sales and more revenues; speed up the comprehensive utilization of "urban mineral resources", tap the full potential of existing stock resources, create the differentiated competitiveness of BBMG Real Estate

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CHAIRMAN'S STATEMENT

and strengthen property segment development platform. The property investment and management segment will improve the service quality and operation level on a continuing basis, give full play to the BBMG's characteristics of "urban mineral resources", interconnect with the real estate business, focus on the development of science and technology industrial park properties such as intelligent manufacturing workshop and science park, and become a first-class domestic investment property operator with characteristics of BBMG based on the capital's functional positioning of "Four Centers".

Finally, on behalf of the Board of the Company, I would like to express my sincere gratitude to our shareholders for their long-standing support for the Company's development, and thank the Board and the Supervisory Board for their diligence and all employees of the Company for their hard work. Currently, China has achieved major strategic results in the epidemic prevention and control when the epidemic sweeps across the world. However, the epidemic prevention and control may become a norm. Faced with complicated situations and arduous works, we have a firm belief in achieving high-quality development of the Company. The Company will endeavor to give back to the shareholders and the society, and build a bright future for BBMG with shareholders!

Jiang Deyi

Chairman of the Board

Beijing, the PRC

19 August 2020

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MANAGEMENT DISCUSSION AND ANALYSIS

I. DETAILS OF THE COMPANY'S PRINCIPAL BUSINESS, BUSINESS MODEL AND INDUSTRY SITUATION DURING THE REPORTING PERIOD

(I) Principal business and business model of the Company

The Company's principal businesses include (1) cement and ready-mixed concrete business; (2) modern building materials manufacturing and commerce and logistics; (3) property development; and (4) property investment and management.

1. Cement and ready-mixed concrete business: The Company is the third largest cement industrial group in China with strong scale advantage and market dominance within the region, and is the leader of low-carbon, green, and environmentally-friendly development, energy saving and emission reduction, and circular economy in the domestic cement industry. The cement business continued to adopt Beijing-Tianjin-Hebei region as its core strategic region, and continued to expand the coverage of its network, mainly with presence in 13 provinces (municipalities and autonomous regions), including Beijing- Tianjin-Hebei region, Shaanxi, Shanxi, Inner Mongolia, Northeastern region, Chongqing, Shandong, Henan and Hunan. The production capacity of clinker amounted to approximately 110 million tonnes; the production capacity of cement amounted to approximately 170 million tonnes. With cement as its core product, the Company extends to related products and services through an internal synergetic mechanism. Currently, the production capacity of ready- mixed concrete amounted to nearly 60 million cubic meters while the production capacity of aggregates and grinding aids and admixtures amounted to 36 million tonnes and approximately 0.34 million tonnes respectively. Its annual capacity for disposal of various solid wastes was nearly 2.20 million tonnes. The Company will insist to promote market expansion and strategic resources consolidation simultaneously, and currently has a total limestone reserve of 3.442 billion tonnes.

2. Modern building materials and commerce and logistics business: The Company is the leader in the building materials industry in China and one of the largest suppliers of green, environmentally-friendly, and energy-saving building materials in the Pan Bohai region. Its major products and services include furniture and woods, wall body and insulation materials, decorative and fitting materials, building materials and commerce and logistics. The Company actively carried out

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MANAGEMENT DISCUSSION AND ANALYSIS

industrial layout centering around the coordinated and high-quality development of Beijing-Tianjin-Hebei region, and completed the construction of three industrial bases, namely Tangshan Caofeidian Stone Wool, Tangshan Caofeidian Wood Industry, and Tangshan Yutian Prefabricated Parts Base, which further enhanced the modern building materials industry chain. The Company's modern building materials products and construction and installation services were widely used in the construction of key hotspot projects in Beijing-Tianjin-Hebei region, such as the sub-town centre and supporting facilities in Beijing, Citizen Service Centre in Xiong'an New District, the Winter Olympic Stadium, and Universal Studios Beijing, which fully demonstrated the advantages of BBMG's modern building materials business in brand, quality and industrial chain and enhancing systematic application and coordinated marketing of its products. As long as risks are under control, the Company will continuously enhance the development of commerce and logistics industry and proactively explore developed marketing modes of e-commerce.

3. Property development business: The Company is one of the top property developers in Beijing in terms of overall strength with an annual area commencing construction of 8 million sq.m.. The Company has made its presence in 15 cities including Beijing, Shanghai, Tianjin, Chongqing, Hangzhou, Nanjing, Chengdu, Hefei and Haikou and developed more than 130 property projects with a total gross floor area of approximately 30 million sq.m., developing a nationwide business presence "from Beijing to three major economic rims, namely Beijing- Tianjin-Hebei region, Yangtze River Delta and Chengdu-Chongqing region", with a comprehensive development strength covering property projects of multiple categories. As a large state-owned enterprise under the Beijing municipality, the Company has been in the leading position in construction of affordable housing in Beijing for years with a total gross floor area of more than 7 million sq.m. of planned and completed affordable housing, providing over 70,000 affordable housing units. Based on continuous consolidation of core business strengths, the Company is making efforts on nurturing new segment formats and seeking coordinated development with Beijing-Tianjin-Hebei region based on the functions of non-capital cities and actively researches and explores urban renovation. The Company has successfully established its presence in various sectors such as industrial properties and technology and innovation related properties, bringing new development opportunities for the Company.

MANAGEMENT DISCUSSION AND ANALYSIS

4. Property investment and management business: The Company is one of the largest investors and managers of investment properties in Beijing with the most diversified businesses, holding approximately 1.78 million sq.m. of investment properties such as high-end office buildings, commercial and industrial parks in Beijing and Tianjin (of which 0.988 million sq.m. are high-end investment properties in core areas in Beijing) and managing nearly 13.5 million sq.m. of properties (including residential communities and commercial units at low floors) in Beijing and Tianjin. The Company has maintained its leading position in the areas such as professional capability, brand recognition, occupancy rates and income level in Beijing, even across the whole China, for many years.

(II) Description of major industries

1. Cement Industry

Due to the impact of COVID-19 outbreak, the Chinese economy was significantly affected, especially in the first quarter of 2020; as the government continued to implement the prevention and control measures, the epidemic was under effective control in the second quarter of 2020, production and normal daily life has gradually resumed, the resumption of work and production advanced solidly, the decrease in infrastructure investment slowed down evidently and the investment in real estate development turned from fall to rise. The demands in cement has declined sharply in the first quarter of 2020 but rebounded significantly in the second quarter of 2020, which corresponded to the downstream industries. According to the data of the National Bureau of Statistics, in the first half of 2020, the national cement production was 998 million tonnes, representing a year-on-year decrease of 4.8% and a decline narrowed by nearly 20 percentage points compared with that of the first quarter. When cement inventory stayed at a high level, the cement price in the most regions of China remained relatively reasonable.

According to the Ministry of Industry and Information Technology, in the first half of 2020, the operating revenue of the cement industry amount to RMB426.2 billion and the profits amounted to RMB76.7 billion, representing a year-on- year decrease of 6.1%.

2. Property Development Industry

In the first half of 2020, the central government insisted on the orientation of "houses are for living, not for speculation", and the supervision of finance in the real estate industry remained tight. Affected by the COVID-19 epidemic, the transaction volume and price of real estate market, especially the transaction volume, fell in the short term. Since March 2020, with the gradual implementation

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MANAGEMENT DISCUSSION AND ANALYSIS

of effective policies such as trimming the interest rate, the pent-up market demand in the previous period was released and drew buyers to the markets. Property developers seized the opportune timing to strengthen its sales efforts and innovation of marketing model. In the second quarter, the transaction volume and price in the real estate market gradually resumed but the market performance in various regions and cities were differentiated.

According to the data of the National Bureau of Statistics, in the first half of 2020, the investment in real estate development in China stood at RMB6,278 billion, representing a year-on-year increase of 1.9%, and decreased by 0.3% from January 2020 to May 2020. Investment in residential properties was RMB4,635 billion, representing a year-on-year increase of 2.6% and an increase of 2.6 percentage points over the period from January 2020 to May 2020. Investment in residential properties accounted for 73.8% of aggregate investment in real estate development. The construction sites for corporate use of real estate developers stood at 7,927.21 million sq.m., representing a year-on-year increase of 2.6% and an increase of 0.3 percentage point over the period from January 2020 to May 2020, among which, 5,587.76 million sq.m. were area of construction sites for residential properties, representing a year-on-year increase of 3.8%. The area of newly started construction of real estates was 975.36 million sq.m., representing a year-on-year decrease of 7.6%, a decline narrowed by

percentage points; among which, the area of newly started construction of residential properties was 715.83 million sq.m., representing a year-on-year decrease of 8.2%. The area of completed real estate stood at 290.30 million sq.m., representing a year-on-year decrease of 10.5%, a decline narrowed by

percentage point. Of this, area of completed residential properties was

million sq.m., representing a year-on-year decrease of 9.8%. In the first half of 2020, land area acquired by real estate developers was 79.65 million sq.m., representing a year-on-year decrease of 0.9%, a decline narrowed by

percentage points over the period from January 2020 to May 2020. Area of sold commodity housing was 694.04 million sq.m., representing a year-on- year decrease of 8.4%, a decline narrowed by 3.9 percentage points over the period from January 2020 to May 2020. Area of sold residential properties, office and properties for commercial operation decreased by 7.6%, 26.5% and 20.7%, respectively. Sales of commodity housing amounted to RMB6,689.5 billion, representing a year-on-year decrease of 5.4%, a decline narrowed by

percentage points over the period from January 2020 to May 2020. Of this, sales of residential properties, office and properties for commercial operation decreased by 2.8%, 28.0% and 25.5% respectively. As at the end of June 2020, area of commodity housing for sales was 510.81 million sq.m., representing a decrease of 6.91 million sq.m. compared with the end of May 2020.

MANAGEMENT DISCUSSION AND ANALYSIS

SUMMARY OF FINANCIAL INFORMATION

			Unit: RMB'000
	For the six months
	ended 30 June
	2020	2019	Change
	(Unaudited)	(Unaudited)

Operating revenue	40,928,098	44,611,089	-8.3%

Operating revenue from principal business	40,714,935	44,210,815	-7.9%

Gross profit from principal business	9,325,912	12,210,928	-23.6%

Gross profit margin from principal business (%)	22.9	27.6	a decrease of
			4.7 percentage
			points

Total profit	3,365,221	5,264,638	-36.1%

Net profit	2,187,594	3,964,973	-44.8%

Net profit attributable to the shareholders of
the parent company	1,523,592	3,045,574	-50.0%

Basic earnings per share attributable to the
shareholders of the parent company (RMB)	0.14	0.29	-51.7%

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MANAGEMENT DISCUSSION AND ANALYSIS

	As at	As at 31
	30 June 2020	December 2019	Change
	(Unaudited)	(Audited)

Cash and bank balances	33,241,537	21,325,043	55.9%

Current assets	189,019,660	174,495,858	8.3%

Current liabilities	127,502,144	127,706,358	-0.2%

Net current assets	61,517,516	46,789,500	31.5%

Non-current assets	107,454,496	107,627,898	-0.2%

Non-current liabilities	75,972,704	71,886,047	5.7%

Total assets	296,474,157	282,123,756	5.1%

Equity attributable to the shareholders of the
parent company	63,489,133	61,131,200	3.9%

Debt ratio (total liabilities to total assets) (%)	68.6	70.7	a decrease of
			2.1 percentage
			points

MANAGEMENT DISCUSSION AND ANALYSIS

SUMMARY OF BUSINESS INFORMATION

	For the six months
	ended 30 June
	2020	2019	Change

Cement and Ready-mixed Concrete
Segment
Sales volume of cement (in million tonnes)	42.1	45.3	-7.0%
Sales volume of ready-mixed concrete (in
million cubic meters)	6.02	8.15	-26.1%

Modern Building Materials and Commerce
and Logistics Segment
Stone wool boards (in thousand tonnes)	30.5	29.2	4.5%

Property Development Segment
Booked GFA (in thousand sq.m.)	612.6	455.1	34.6%
Contracted sales GFA (in thousand sq.m.)	658.3	400.5	64.4%

Property Investment and Management
Segment
Gross GFA of investment properties
(in thousand sq.m.)	1,781.7	1,549.9	15.0%

DISCUSSION AND ANALYSIS ON OPERATIONS

The outbreak of COVID-19 epidemic has produced a significant impact on the production and operation of the Group. Confronted with the epidemic, the Company made scientific decisions, effectively overcame the combined impact of the traditional off-season for the industry in the first quarter of 2020 and the production suspension during the epidemic period, actively created favorable conditions and promoted the resumption of work and production in a reasonable and orderly manner. With its solid efforts, the Company overcame the difficulties and achieved the fast recovery of main economic indicators in the second quarter and making excellent results.

During the Reporting Period, the Company recorded an operating revenue of RMB40,928.1 million, of which operating revenue from its principal business amounted to RMB40,714.9 million, representing

year-on-yeardecrease of 7.9%; total profit amounted to RMB3,365.2 million, representing a year- on-year decrease of 36.1%; net profit amounted to RMB2,187.6 million, representing a year-on-year decrease of 44.8%; and net profit attributable to the parent company amounted to RMB1,523.6 million, representing a year-on-year decrease of 50.0%.

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MANAGEMENT DISCUSSION AND ANALYSIS

(1) Cement and Ready-mixed Concrete Segment

Based on its strategic position of "building a world-class cement industry group which is modern, professional and large in scale" for the cement business, the Company sticks to high-quality development and optimizes strategic layout. The Company also coordinated and collaborated among the regions to strengthen market advantages, consolidate management foundation and enhance core competitiveness; the Company strengthened management and control of marketing for the concrete business, so as to improve the performance rate of contacts and reduce the operation risks.

In the first half of 2020, sales volume of cement and clinker was 42.1 million tonnes (exclusive of joint ventures, associates and the Company), representing a year-on-year decrease of 7.0%; the revenue from principal business recorded RMB17,140.0 million, representing a year-on-year decrease of 13.2%; gross profits from principal business amounted to RMB5,379.3 million, representing a year-on-year decrease of 14.6%, among which sales volume of cement amounted to 36.47 million tonnes and sales volume of clinker amounted to 5.63 million tonnes; the aggregated gross profit margin for cement and clinker was 35.0%, representing a year-on-year decrease of 2.8 percentage points. The sales volume of concrete amounted to 6.02 million cubic meters, representing a year-on-year decrease of 26.1%; and the gross profit margin of concrete was 13.4%, representing a year-on-year increase of 4.2 percentage points.

(2) Modern Building Materials and Commerce and Logistics Segment

This segment tapped into the stock's full potential and nurtured new power of industrial development; promoted the research on integrated technology and accelerated the pace of achievements transformation; and further developed key projects such as Xiong'an New District, Beijing Municipal Sub-centre and Winter Olympic Stadium.

In the first half of 2020, the modern building materials and commerce and logistics segment recorded an operating revenue from principal business of RMB13,952.8 million, representing

year-on-yearincrease of 9.1%, among which the revenue from principal business of manufacturing industry was approximately RMB1,170 million and the revenue from principal business of commerce and logistics industry was approximately RMB12,240 million; gross profit from its principal business amounted to RMB520.1 million, representing a year-on-year decrease of 18.8%.

MANAGEMENT DISCUSSION AND ANALYSIS

(3) Property Development Segment

The segment changed thinking pattern, responded rapidly, plotted in advance, focused on implementation, made scientific arrangement, accelerated resumption of work and production, executed with great efforts and firmly grasped the opportunities to make additional marketing efforts, so that the sales indicators increased against trend.

In the first half of 2020, the property development segment recorded revenue from its principal business of RMB9,429.9 million, representing a year-on-year decrease of 15.4%, and the gross profit from its principal business was RMB2,584.1 million, representing a year-on- year decrease of 38.1%. The booked GFA was 612,562.7 sq.m., representing a year-on-year increase of 34.6%, among which booked GFA of commodity housing amounted to 418,248.2 sq.m., representing a year-on-year increase of 2.6%, while booked GFA of affordable housing amounted to 194,314.5 sq.m., representing a year-on-year increase of 310.0%. The aggregated contracted sales area of the Company was 658,342.2 sq.m., representing a year-on-year increase of 64.4%, among which contracted sales area of commodity housing increased year-on-year of 64.6% to 658,137.1 sq.m. The contracted sales area of affordable housing amounted to 205.1 sq.m., representing a year-on-year decrease of 65.3%.

In the first half of 2020, the Company further capitalized on its self-owned resources. It acquired the right to develop three industrial land projects, adding about 227,433 sq.m. to the Company's land reserves. As of 30 June 2020, the land reserve of the Company was approximately 7,569,900 sq.m..

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MANAGEMENT DISCUSSION AND ANALYSIS

								Date of
								Acquisition
				Land area	Planned			(year-
				of the	plot ratio	Land	Method of	month-	Percentage
No.	Name of projects (parcel of land)	Location	Use of land	project	area	Price	Acquisition	day)	of interest
				(sq.m.)	(sq.m.)	(RMB million)

1	Plot C-02 at district of Qixin Cement Factory,	Lubei District,	Residential (R2)	42,282	105,700	675.46	Auction	2020-01-23	100%
	Tangshan	Tangshan
2	Plots such as 1820-618B at No.1,	Haidian District,	Residential (R2) and	47,115	99,865	2,788.00	Tender	2020-02-11	100%
	Anningzhuang East Road, Haidian	Beijing	land for basic
	District, Beijing		education
3	Plots 1006- 605 at Affiliated Complex, 3rd	Chaoyang	Commercial and	7,289	21,868	352.00	Listing	2020-04-03	100%
	Area, Xili, Huajiadi, Wangjing, Chaoyang	District, Beijing	financial
	District, Beijing

		Total		96,686	227,433	3,815.46

Notes: The Company won the bid for the state-owned construction land use rights in respect of the land parcel No. R-09 in Jiangpu Community of Yangpu District, Shanghai on 31 July 2020; and won the bid for the state-owned construction land use rights in respect of the land parcels of Jin Bei Chen Wen (Gua) No. 2020-010(津北辰文(掛)2020-010號) and Jin Bei Chen Wen (Gua) No. 2020-011(津北辰文(掛)2020-011號) in Tianjin on 8 August 2020. For details, please refer to the relevant dates for announcements.

(4) Property Investment and Management Segment

The segment spares no effort to prevent and control the epidemic, resume work and production in an accurate and orderly manner, concentrate the strengths and advantageous resources, and make every effort to accelerate the resolution of difficult issues such as evacuation and vacations, sale and leasing of scattered assets. During the Reporting Period, the rental of the office buildings stayed at a high level. GTC Residence (金隅環貿國際公寓) recorded an occupancy rate of 88%. Phase I of BBMG Intelligent Manufacturing Workshop (金隅智造工場一期) recorded an occupancy rate of 87%. The occupancy rate of Phase I of BBMG High-Tech Industrial Park (金隅高新產業園一期) was nearly 95%.

In the first half of 2020, the property investment and management segment recorded an operating revenue from principal business of RMB1,880.5 million, representing a year-on- year decrease of 15.5%, and gross profit from its principal business was RMB999.7 million, representing a year-on-year decrease of 32.0%. The Company held investment properties totalling approximately 1,781,700 sq.m. in the core districts of Beijing and Tianjin. The consolidated average occupancy rate was 79% and the consolidated average rental unit price was RMB5.9/sq.m./day, of which the consolidated average rental unit price of high-end office building in core area in Beijing was RMB8.1/sq.m./day.

MANAGEMENT DISCUSSION AND ANALYSIS

Investment properties held by the Group as at 30 June 2020

				Average	Average
		Property		Rental	Occupancy	Unit
	Location	Gross Area	Fair Value	Unit Price	Rate	Fair Value
		(thousand	(RMB	(RMB/day)		(RMB/
		sq.m.)	million)			sq.m.)

Phase 1 of Global Trade Centre	North Third Ring Road, Beijing	108.2	3,378.8	11.9	85.7%	31,227
Phase 2 of Global Trade Centre	North Third Ring Road, Beijing	141.0	3,428.3	9.0	91.7%	24,314
Phase 3 of Global Trade Centre	North Third Ring Road, Beijing	57.5	1,273.3	8.5	88.8%	22,145
(commercial units at low floors)
Tengda Plaza	West Second Ring Road, Beijing	67.9	1,796.4	9.6	80.3%	26,457
Jin Yu Mansion	West Second Ring Road, Beijing	41.2	1,248.1	12.5	82.1%	30,294
Jianda Building and Beijing	East Second Ring Road, Beijing	43.0	1,163.9	6.3	90.2%	27,067
Building Materials Trading Tower
Dacheng Building	West Second Ring Road, Beijing	41.4	1,225.9	11.5	74.9%	29,611
Pan Bohai Jin'an Plaza	Hexi District, Tianjin	302.0	2,435.6	2.3	93.0%	8,065
Pangu Plaza Building 5	North Forth Ring Road, Beijing	137.0	5,343.5	12.3	49.3%	39,004
Phase 1 of Logistics Park Project	South Six Ring Road, Beijing	122.0	874.0	2.1	94.8%	7,164
Phase 1 of Intelligent	North Fifth Ring Road, Beijing	75.4	620.9	5.7	87.2%	8,235
Manufacturing Plant

	Sub-total	1,136.6	22,788.7			20,050

Other properties	Beijing and Tianjin Municipality	645.1	7,089.5			10,989

	Total	1,781.7	29,878.2	5.9	79.2	16,769

The above investment properties are all located in the PRC and have been leased for commercial use in medium term.

The investment properties are valued by an independent professional valuer using future earnings approach and market-based approach according to open market data and such properties' current uses.

BBMG CORPORATION	23
INTERIM REPORT 2020

MANAGEMENT DISCUSSION AND ANALYSIS

ANALYSIS ON INCOME STATEMENT, CASH FLOWS AND ITEMS OF ASSETS AND LIABILITIES

1. Principal business operations

Unit: RMB million

				Year-on-	Year-on-	Year-on-
				year	year	year
				increase or	increase or	increase or
				decrease	decrease	decrease
	Revenue	Cost of	Gross profit	in revenue	in cost of	in gross profit
	from	sales from	margin from	from	sales from	margin from
	principal	principal	principal	principal	principal	principal
	business	business	business	business	business	business
			(%)	(%)	(%)

Cement and Ready-mixed	17,140.0	11,760.7	31.4	-13.2	-12.5	Decrease of 0.5
Concrete						percentage point
Modern Building Materials	13,952.8	13,432.6	3.7	9.1	10.5	Decrease of 1.3
and Commerce and						percentage points
Logistics
Property Development	9,429.9	6,845.8	27.4	-15.4	-1.9	Decrease of 10.0
						percentage points
Property Investment and	1,880.5	880.8	53.2	-15.5	16.6	Decrease of 12.9
Management						percentage points
Eliminations	(1,688.3)	(1,530.9)

Total	40,714.9	31,389.0	22.9	-7.9	-1.9	Decrease of 4.7
						percentage points

MANAGEMENT DISCUSSION AND ANALYSIS

2. Gains from changes in fair value of investment properties

The Group uses the fair value model for subsequent measurement of its investment properties. Fair value changes are included in "Gains from changes in fair value" in the income statement. Reasons for the adoption of the fair value model as the accounting policy for subsequent measurement by the Group are as follows:

(1) The investment properties are located in places where the property markets are active

The Group's current investment properties, most of which are commercial properties at developed commercial districts, are primarily located at core districts such as Beijing and Tianjin where the property markets are relatively active. The Group is able to obtain market price and other related information of properties of the same category or similar nature. It is practicable for the Group to adopt the fair value model for subsequent measurement of the investment properties.

(2) The Group is able to obtain market price and other related information of properties of the same category or similar nature from the property markets, by which the Group makes a reasonable estimation of the fair value of its investment properties

The Group engaged a valuer with relevant qualifications to make valuation on the fair value of the investment properties of the Group using the income method and market approach. The result of such valuation is used as the fair value of the investment properties of the Group.

Key assumptions and major uncertain factors adopted by the Group for the estimation of the fair value of the investment properties of the Group mainly include: assuming the investment properties are traded in the open market and will continue to be used for their existing purposes; there will be no significant changes in the macro-economic policies of the PRC and the social and economic environment, tax policies, credit interest rates and foreign exchange rates in the places where the investment properties are located; and there is no other force majeure and unforeseeable factor that may have a material impact on the Group's operation.

During the Reporting Period, the gains arising from changes in fair value of investment properties of the Group decreased by approximately RMB191.3 million year-on-year to RMB247.4 million, accounting for 7.4% of the profits before tax.

BBMG CORPORATION	25
INTERIM REPORT 2020

MANAGEMENT DISCUSSION AND ANALYSIS

3. Selling expenses, administrative expenses and finance costs

During the Reporting Period, the year-on-year changes in major expenses of the Group were as follows:

(1) Selling expenses were approximately RMB1,302.2 million in the first half of 2020, representing a decrease of approximately RMB88.2 million year-on-year, mainly attributable to the year-on-year decrease in employee remuneration and agency intermediary fee during the Reporting Period.

(2) Administrative expenses were approximately RMB2,860.5 million in the first half of 2020, representing a decrease of approximately RMB333.0 million year-on-year, mainly attributable to the year-on-year decrease in employee remuneration and repair and maintenance expenses during the Reporting Period.

(3) Finance costs were approximately RMB1,694.8 million in the first half of 2020, representing an increase of approximately RMB280.4 million year-on-year, mainly attributable to the combined effect of the year-on-year decrease in interest income from borrowings and the year-on-year increase in handling charges during the Reporting Period.

4. Cash flows

In the first half of 2020, a net increase of RMB10,798.2 million in cash and cash equivalents was recognised in the consolidated financial statements of the Group, of which net cash inflow from operating activities was RMB2,797.7 million, representing a year-on-year increase of approximately RMB1,849.6 million in inflow, mainly attributable to the decrease in cash paid for goods and services year-on-year; net cash outflow from investing activities was RMB1,170.3 million, representing a year-on-year increase of approximately RMB217.7 million in outflow, mainly attributable to the decrease in other cash received in relation to investing activities year-on-year; net cash inflow generated from financing activities was RMB9,167.4 million, representing a year-on-year increase of approximately RMB6,978.3 million in inflow, mainly due to the increase in scale of financing of the Company year-on-year; and the effect of changes in exchange rate on cash and cash equivalents decreased by approximately RMB3.4 million.

MANAGEMENT DISCUSSION AND ANALYSIS

5. Analysis on Items of Assets and Liabilities

(1) Cash and bank balances: an increase of approximately RMB11,916.5 million or 55.9% from the beginning of the Reporting Period, mainly attributable to the increase in the size of financing of the Company during the Reporting Period;

(2) Bills receivable: a decrease of approximately RMB4,571.5 million or 87.9% from the beginning of the Reporting Period, mainly because most bank acceptance bills are expected to be endorsed or discounted due to the business model adjustment during the Reporting Period;

(3) Receivables financing: an increase of approximately RMB3,405.8 million or 678.7% from the beginning of the Reporting Period, mainly because most bank acceptance bills are expected to be endorsed or discounted due to the business model adjustment during the Reporting Period;

(4) Debt investments: an increase of approximately RMB575.6 million or 278.1% from the beginning of the Reporting Period, mainly attributable to the purchase of wealth management product by the Company during the Reporting Period;

(5) Wages payable: a decrease of approximately RMB222.1 million or 45.3% from the beginning of the Reporting Period, mainly attributable to the payment of performance related bonuses of the previous year by the Company during the Reporting Period;

(6) Short-term financing bonds payable: an increase of approximately RMB1,098.1 million or 33.3% from the beginning of the Reporting Period, mainly attributable to the issuance of short-term financing bonds by the Company during the Reporting Period.

BBMG CORPORATION	27
INTERIM REPORT 2020

MANAGEMENT DISCUSSION AND ANALYSIS

CORE COMPETITIVENESS ANALYSIS

The Company is a leading building material enterprise in the Beijing-Tianjin-Hebei region in environmental protection, energy-saving and emission reduction and recycling development, and contributes to the ecological civilization. During the Reporting Period, the Company proactively followed the policy orientation of the synergetic development of the Beijing-Tianjin-Hebei region and the supply-side structural reform to tap the general trend and seize historical strategic opportunities. Focusing on the goal of high-quality development, the Company continued to deepen the restructuring of Jidong Group, the holding of Tianjin Building Materials Group and internal integration and other major reform achievements, and strive to enhance the connotation and effectiveness of the restructuring, deeply explore the value potential of the restructuring, continue to optimize the strategic layout of the Beijing-Tianjin-Hebei region, create a model industrial synergy development zone, consolidate regional value highlands, and transform the resources aggregation advantages formed by the restructuring into competitive advantages and practical development. The core competitiveness of the Company has been enhanced, the sustainable development momentum has been strengthened, the leading position of the building materials industry in the Beijing-Tianjin-Hebei region has been strengthened, and the influence of the industry has been further enhanced. The Company has strong momentum for high quality sustainable development since it is one of the top 500 enterprises, top 200 most cost-effective enterprises and top 100 most profitable enterprises in China, and ranks No. 1,048 on the Forbes Global 2000. In the first half of the year, the Company's core competitive advantages were further highlighted in the prevention and control of epidemics, orderly resumption of work and production and deepening reform of the system and mechanism, effectively coping with the impact of external risks.

The core competitiveness of the Company is detailed as follows:

1. Competitive Edge in the Industrial Chain:

The Company has developed a vertical and fully integrated industrial chain. On the back of its advantages in new green building materials manufacturing and equipment manufacturing industry, the Company further expanded into the area of real estate development, and focused on business development and industrial upgrading and developed modern service industries such as trade, services, high-end property management, operation of technical innovation industry parks, and human resource. By accelerating the transformation of the manufacturing industry into a service-oriented one and concentrating development into a new type of green park, the Company will continue to build its position as a regional industry leader and further form the layout of the whole industry chain of design, manufacturing, trading, construction and service, highlighting its unique value advantages of the whole industry chain. The strong demand from real estate development projects has boosted the Company's green building materials businesses and other related businesses such as architectural designing, decoration

MANAGEMENT DISCUSSION AND ANALYSIS

and property management services. On the other hand, the Company's strong brand, technical advantages and expertise in new green building materials manufacturing, property operation and property management services translated into higher quality, better brand image and stronger sales of the Company's real estate development projects in a systematic, industrialized, and specialized manner with green ultra-low energy consumption and advanced technology such as assembled components. Leveraging on various resources and advantages accumulated in the process of "going abroad" by the new green building materials manufacturing industry, the Company has strengthened its regional advantages, deepened urban development, increased land resources reserves in core cities, tapped into high-quality regional markets, and optimized the core business layout. The Company's different business segments support and promote the development of each other with significant synergistic effect and overwhelming advantages as a whole. Information sharing, complementary resources, and coordinated interaction between various business segments and upstream and downstream enterprises underline the advantages of integration and create market competitive edge.

2. Competitive Edge in Technology Innovation:

Focusing on the cutting edge of the industry, the front-end of the industry and the high- end of value, guided by the market and policies, the Company actively promotes scientific and technological innovation, and creates core competitiveness for the Company's high- grade, precision and advanced industry reserves with BBMG characteristics. The research and development of new technologies, new products, new processes and new equipment and the landing of achievements have continuously injected new vitality into the transformation and upgrading of the Company. In the first half of 2020, 23 key scientific research projects were implemented, including 4 projects of second-generation cement technology and equipment, 5 projects of coordinated disposal and recycling of hazardous waste/urban solid waste, 9 projects of industrial solid waste recycling and 5 projects of new fabricated buildings. At present, all key scientific research projects have been completed the demonstration of the implementation plan and started as planned, and some phased results have been achieved. In the first half of 2020, the Company's investment in science and technology amounted to RMB806.1 million, and the sales revenue of new products amounted to RMB1.189 billion, and the Company received 4 awards for scientific and technological progress in Beijing and Tianjin, 2 awards for international leading level achievements, and 1 award for advanced international level achievements. The Company has applied for 146 patents, including 42 invention patents. The Company played a leading role in formulating 51 international standards, national standards, industry standards, local standards, and group standards, and has carried out more than 20 high-level academic exchanges with domestic and foreign colleges and universities, research institute, thus continuously strengthening our scientific and technological influence.

BBMG CORPORATION	29
INTERIM REPORT 2020

MANAGEMENT DISCUSSION AND ANALYSIS

The Company continues to improve the management system of scientific and technological innovation: formulating the Administrative Measures on the Provision for Corporate R&D Investment (Trial) to ensure the continued stability of R&D investment and innovation promotion from a systemic perspective; Review the scientific and technological achievements of the "13th Five-Year Plan", analyze the internal and external development environment, and closely follow the Group's strategic development planning, and are in the process of preparing the BBMG Technology Development Plan for the 14th Five-Year Plan, which aims at clarifying the main direction of scientific and technological innovation and development in the following five years. The Company intends to implement the 561 Technology Innovation Project Strategy, focusing on the five major directions of green manufacturing, green construction, green building materials, green environmental protection and new materials, and six innovation areas of "deep energy saving and emission reduction in cement production and alternative raw fuel technology", "technology for preparing energy-saving building materials by utilizing solid waste resources", "technology for preparing new green building materials", "new assembled green building technology", "digital intelligent building materials equipment manufacturing technology" and "building materials service industry", forming a number of new technologies and achievements leading the technological advancement of the industry and the high-quality development of the Group's industries.

3. Competitive Edge in Sustainable Development of Green Operations:

The Company has fully leveraged to its industrial advantages, actively focused on the strategic positioning of the capital, Beijing, met the needs for construction of "four centers", and adhered to the development concept of "Green Hills and Clear Waters are Gold & Silver Mountains". It has transformed the cement enterprises in Beijing into environmental technology firms, which became part of the urban infrastructure. The Company also has replicated its proprietary waste treatment technology of cement kiln in cement companies outside of Beijing, reinforcing the Company's role in helping governments cleanse the urban environment. The Company also continued in promoting eco-friendly sustainable development. The Company's shift to an eco- friendlier enterprise further solidified its core competitiveness.

MANAGEMENT DISCUSSION AND ANALYSIS

In the first half of 2020, the environmental protection industry collected 870,000 tonnes of solid waste and disposed of 1.03 million tonnes of solid waste. During the Reporting Period, the site removal of the contaminated soil project in Beixin'an of Shijingshan was completed, and the contaminated soil project in Tang Ye successfully started. As of the first half of 2020, there are 30 enterprises carrying out the disposal of solid wastes, and 13 hazardous waste disposal projects, 15 sludge disposal projects and 5 domestic garbage projects have been completed and put into operation; the formed disposal capacity is 501,700 tonnes of hazardous waste, 1,020,200 tonnes of domestic sludge and 631,700 tonnes of domestic garbage. The Company increased efforts to accelerate green transformation, with a total of 16 projects under construction and 10 environmental impact assessment approval projects, the collaborative disposal has covered 86% of the cement enterprises of the Company. The Company has focused on serving the construction of a "Zero-waste City" in Xiong'an New District. In combination with the distribution of disposal facilities in Hebei region, the Company has given full play to its advantages in diversified disposal capacity of hazardous waste, sludge, domestic garbage, contaminated soil, etc., and it has won the bid for the solid waste outward transport disposal project of the phase II of Tanghe Sewage Reservoir Environmental Restoration Project. Under the new situation of epidemic prevention and control, environmental protection enterprises of the Company in Beijing actively responded to the needs of epidemic prevention and control in the capital in a timely manner, quickly completed the relevant waste disposal tasks in Xin Fa Di market (新發地), which demonstrated the responsibility committed by the Company.

4. Competitive Edge in Industry-Finance Integration:

The industry-finance integration has given a boost to all principal businesses of the Company. The Company has further promoted its cooperation with key financial institutions, innovated the financing management, explored the new financing channels and reduced financing cost. BBMG Finance Co., Ltd. and BBMG Finance Lease Co., Ltd. have constructed a platform to boost the Company's efficiency in capital use, widened the Company's financing channels and prevented capital risks. The platform enables organic industry-finance integration. Moreover, the Company has fully leveraged to its listing status advantages, boosted its overall financing capability and laid sound financial foundation for the Company's healthy and sustainable development.

BBMG CORPORATION	31
INTERIM REPORT 2020

MANAGEMENT DISCUSSION AND ANALYSIS

In the first half of 2020, for the purpose of reducing the impact of the epidemic, the Company promoted its cooperation with financial institutions, reduced financing costs, obtained more low- interest financing, and replaced or reduced some high-interest financing. In the first half of 2020, the Company's financing cost reached the lowest level in recent years, saving financial costs. The new financing cost decreased by 77 basis points year-on-year. The financing structure was more optimized, with the proportion of long-term financing increasing by 3 percentage points.

5. Competitive Edge in Corporate Culture and Branding:

The core value of BBMG's corporate culture is based on the pragmatic working culture of "work with aspiration, competence, efficiency, success and prudence", the human spirits of "eight specials", the development philosophy of "integration, communion, mutual benefit and prosperity", and the corporate spirits of "three emphasis and one endeavor". We reaffirmed confidence and united as one to tackle difficulties, worked diligently to surmount the challenges, thereby laying the foundation for the perfect end of the 13th Five-Year Plan and a good start to the 14th Five-Year Plan with excellent performance and achieving quality growth. The culture of BBMG is built based on experiences of numerous cadres and employees within the system. It aims to help employees realize their dreams, and is the driving force and cornerstone of BBMG's business. "BBMG" has been consecutively honored as a well-known trademark in Beijing. It ranked 65th on the list of the 2020 (17th) China's 500 Most Valuable Brands. The superior brand awareness and prestige has created a sound cultural atmosphere and intelligence support for BBMG to achieve a new round of leap-forward development in full force.

MANAGEMENT DISCUSSION AND ANALYSIS

POSSIBLE RISKS FACED BY THE COMPANY

1. Risk of Epidemic Impact

At the beginning of 2020, the sudden outbreak of the COVID-19 epidemic greatly affected the economy in China and the uncertainty of domestic and international environment grew. During the epidemic, project suspensions led to stagnated cement demand; at the early stage and fast development stage of the epidemic, the demand for house purchase was curbed and the potential buyers tended to wait and lacked confidence. Despite the major achievements in the epidemic prevention and control made by China, the trend of continuously improving the overall situation of economic and social development and accelerated recovery of production and life order, the overseas epidemic situation continues to deteriorate and the international environment tends to be more complicated, coupled with all kinds of international issues such as regional safety, which resulted in the growth in long-term instability and uncertainty. The impact brought by external environment on China's economy remains highly unstable and brings certain risks to the future development of the Company.

Countermeasures: We will have insight into the new characteristics and new requirements of the current development, raise the awareness of opportunities and risks of development, cultivate new opportunities in crisis, break new ground in the turbulent situation, grasp opportunities, draw on advantages and avoid disadvantages and cope with challenges. We will also strengthen prospective thinking, global planning, strategic layout and grasp opportunities to carefully study and plan development path in the new development pattern where domestic and foreign markets can boost each other with domestic market as the mainstay while grasping the opportunities brought by the preparation of "the 14th Five-year Plan". We will further enhance core competitiveness, face up to challenges, turn adversity into opportunity and strive to minimize the influences and losses caused by the epidemic so as to complete the"13th Five-Year Plan" on a high note and lay a solid foundation for a good start on the "14th Five-year Plan". Grasping the opportunities of "two new-type constructions and one major construction" (namely, new-type infrastructure construction, new-type urbanization and major engineering construction of transportation and hydraulic engineering) launched to cope with the impact of the epidemic and stabilize growth, the Company will be more prospective and active, make the best of policy measures of China for epidemic prevention and control and growth stabilizing, give play to the advantages of industries with infrastructure demands such as cements and aggregates, seize the opportunities brought by rebounding economic growth and major infrastructure demand after the epidemic, seize the momentum, win more market shares and promote the growth of building material products such as cements. Meanwhile, in terms of the real estate business, the Company will strive to develop the strategic orientation

BBMG CORPORATION	33
INTERIM REPORT 2020

MANAGEMENT DISCUSSION AND ANALYSIS

of integrated development of urban agglomerations, focus on core areas, optimize land acquisition strategies, effectively controls investment risks, continue to upgrade products, innovate marketing strategies and better adapts to market demand after the epidemic and achieve them with great efforts.

2. Policy Risk

The development of cement and property sectors is directly subject to macroeconomic development and macroeconomic control policies. Domestic and overseas economic environments remained complex and challenging, and external market witnessed higher level of instabilities and uncertainties. Lots of imbalance and underdevelopment existed in China's economy, and a growing downward pressure was observed, posing fresh risks and challenges. Overcapacity in cement industries is yet to be fundamentally eliminated. In line with the promotion of supply- side structural reform and high-quality development policy of the PRC, the cement industry will continue to execute stricter elimination of outdated capacity and environmental protection control policies. Cement companies will continue to transform and upgrade its operations, and strive for sustainable development in line with China's supply side structural reform. Meanwhile, China is expected to keep the long term policy stance of "houses are for living, not for speculation". Guided by the principle that "houses are for living, not for speculation," the long-term administrative mechanism for the real estate industry has graduated from the pilot stage to the full implementation stage, and the local governments continues to implement city-specific policies according to the actual conditions and development and changes in real estate market; the core of the development of real estate market returns to the residence- centered goal. The growth in investment and sales scale of real estate is slowed down but the market scale can be still guaranteed with the continuous promotion of urbanization and continuous release of improvement-based demand. Industrial development will transit from expansion in scale to improvement of quality and it's an irresistible trend to enhance enterprise operation quality.

MANAGEMENT DISCUSSION AND ANALYSIS

Countermeasures: Cement companies will focus on supply-side structural reform, continue to strengthen strategic thinking, study and assess national policies and industrial trend, grasp opportunities, practice new development philosophy and continue to enhance core competitiveness. Through "targeted analysis, targeted decision making, targeted implementation" of regional markets, they will strengthen linkage, enhance regional market control, strive to achieve balanced development of regions and improvement of overall strength, guide and promote industrial integration, transformation and upgrade process, maintain good market order and seize the rebounding growth of the market after the epidemic to further increase market share. In terms of the real estate business, we will choose solid and quality development mode, adopt regional intensive development strategies with metropolitan area and central cities as the core and high-level cities as focus. For cities with their presence, we will continue to increase investment and realize scale economies effect through regional intensive development. Meanwhile, the Company will promote operation and management system building, enhance project operation efficiency and continue to enhance core competitiveness with "enhancement of products quality" as an effective means; strengthen cost system innovation and establish advanced cost control model.

3. Capital Operation Risk

The Company believes that it is important to prevent and mitigate the risk of capital operation brought by policy adjustment under the continuous pressure from the impact of the epidemic on operation and financial supervision. Despite the overall prudent monetary policy of the Central Bank in the first half of 2020, the market financing cost continues to decrease, the financing in real estate industry is still under pressure. The capital of real estate industry is under continuous pressure. The Company's scale is still expanding, and sufficient capital is needed to fund the Company's daily operation and future development.

BBMG CORPORATION	35
INTERIM REPORT 2020

MANAGEMENT DISCUSSION AND ANALYSIS

Countermeasures: The Company will enhance its management on finance and capital, and improve the efficiency in the use of capital. It will actively analyze and grasp the policies that encourage financial institutions to serve the real economy and supply-side structural reform, and promote its cooperation with financial institutions. It will also innovate financing channels and explore new financing channels with a view to ensuring the safety and stability of the capital chain of the Company. The Company will leverage the financing platform of listed companies to raise funds for business development. Leveraging on the advantages of the financial arm and finance lease arm of the Company, cash flow of the Company will be secured as a whole.

4. Market Competition Risk

The cement output in China has remained in high-level plateau for consecutive years. According to industrial development cycles, the industry has gradually entered into a mature period with basically stable or slightly decreased cement demands. However, in the first half of the year, the central government and local governments are expected to make great progress in intensively launching a large batch of infrastructure projects and further drive the demands of infrastructure construction in cements in the second half of the year. Moreover, the real estate market is still resilient. From the new commencement of construction and construction of real estate industry, the new commencement of construction gradually recovers and construction acceleration continues to grow as a whole, which underpins the cement demands. The continuous benefits delivered by strategic restructuring of the Company further enhances the regional market order of cement industry. However, some subsidiaries of the Company are not competitive enough and have weak ability to respond to market changes, making them barely able to compete with peers. The increasing concentration and high quality development of real estate industry put forward higher standards on the quality of products and services. Declining population bonus and demographic shifts will have far-reaching influence on the supply, demand and development of real estate market.

MANAGEMENT DISCUSSION AND ANALYSIS

Countermeasures: The Company will continue to focus on cement business, strengthen market orientation, stick to high quality development, strengthen regional market integration, formulate sales strategy according to "one strategy for one region" and expand regional market shares. It will deepen strategic development thinking, strengthen strategic cooperation with competing enterprises in the industry, optimize cement industry layout, speed up environmental protection industrial development, accelerate enterprise transformation and upgrade, grow aggregate industry, strengthen industrial chain advantages, enhance the ability to integrate resources and reinforce the foundation for sustainable development. For real estate business, the Company will comply with the market trend, focus on market and customer demands, enhance products competitiveness, enhance professional management and control level, speed up the urban mineral resources exploitation and efficient usage of self-owned lands, have in-depth analysis on land policies and market environment changes, control the pace of land acquisition, further expand presence in major cities, give play to the collaborative advantages of vertically integrated industrial chain of the Group, lower operation costs and enhance product service quality and market influence.

LIQUIDITY AND FINANCIAL RESOURCES

As at 30 June 2020, the Group's total assets amounted to RMB296,474.2 million, representing an increase of approximately 5.1% from the beginning of the Reporting Period, which comprised total liabilities of RMB203,474.9 million, minority interests of RMB29,510.2 million and total equity attributable to the shareholders of the parent company of RMB63,489.1 million. As at 30 June 2020, total shareholders' equity amounted to RMB92,999.3 million, representing an increase of approximately 12.7% from the beginning of the Reporting Period. As at 30 June 2020, the Group's net current assets were RMB61,517.6 million, representing an increase of approximately RMB14,728.1 million from the beginning of the Reporting Period. Debt ratio (total liabilities to total assets) was 68.6%, representing a decrease of 2.1 percentage points from the beginning of the Reporting Period.

BBMG CORPORATION	37
INTERIM REPORT 2020

MANAGEMENT DISCUSSION AND ANALYSIS

As at 30 June 2020, the Group's cash and bank balances amounted to RMB33,241.5 million, representing an increase of RMB11,916.5 million from the beginning of the Reporting Period. During the Reporting Period, the Group generally financed its operations with internally generated resources, corporate bonds, short-term financing bonds, medium-term notes and banking facilities provided by its principal bankers in the PRC. As at 30 June 2020, the Group's interest-bearing bank borrowings amounted to RMB81,307.3 million (as at 31 December 2019: RMB86,234.7 million) which bore fixed interest rates and were all denominated in Renminbi. Among these borrowings, approximately RMB43,667.7 million interest-bearing bank borrowings were due for repayment within one year, representing a decrease of approximately RMB6,779.6 million from the beginning of the Reporting Period. Approximately RMB37,639.6 million interest-bearing bank borrowings were due for repayment after one year, representing an increase of approximately RMB1,852.2 million from the beginning of the Reporting Period. The Group's interest-bearing bank borrowings were all denominated in RMB.

During the Reporting Period, the Company entered into cooperation agreements with various banks to obtain credit facilities. As at the end of the Reporting Period, the Company was granted with total bank credit facilities of RMB174,831 million and drew down borrowings of RMB80,591 million in China. Unutilized credit facilities was RMB94,240 million. As at the date of this interim report, no bonds interests of the Company for the current period had not been paid as scheduled, not been fully paid and was payable but yet to be paid. During the Reporting Period, the interests of other bonds and debt financing instrument of the Company had been fully settled as scheduled in accordance with the contract or relevant agreement and no event of default have occurred. The Company has sufficient capital for its operation. As at 30 June 2020, the Group had no future plans for material investments or capital assets.

The Company will formulate annual and monthly capital utilization plans according to the repayment arrangement for principal and interests of borrowings and bonds to be due in the future so as to allocate capital in a reasonable manner and ensure on-time repayment of interests and principal when they fall due.

The sources of capital for settling debts are mainly the cash flows generated from daily operating activities.

MANAGEMENT DISCUSSION AND ANALYSIS

During the Reporting Period, in order to effectively safeguard the interests of bondholders and ensure the principal and interests of the bonds for the current period are settled as agreed, the Company has established a series of work mechanisms, including measures on opening designated account for proceeds and designated account for settlement of debts, setting up work teams which will be in charge of settlement, engaging bonds trustees and enhancing information disclosure. Those measures together will form a comprehensive system that can ensure the principal and interests of the bonds for the current period are settled as agreed.

As of the date of this interim report, no bonds interests of the Company for the current period had not been paid as scheduled, not been fully paid and was payable but yet to be paid.

ENVIRONMENTAL PROTECTION

During the Reporting Period, the Company conducted production and operation in strict compliance with the requirements under the national laws and regulations in respect of environmental protection. There was no breach of laws and regulations, liability for accidents and administrative penalty in relation to environmental protection that involved the company and its subsidiaries which were the key pollutant discharging units as announced by the environmental protection departments.

DISCLOSEABLE TRANSACTIONS DURING THE REPORTING PERIOD

During the Reporting Period, there are no transactions that are required to be disclosed by the Group under the Rules Governing The Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules").

BBMG CORPORATION	39
INTERIM REPORT 2020

MANAGEMENT DISCUSSION AND ANALYSIS

COMMITMENTS

			Unit: RMB
		As at	As at
		30 June 2020 31 December 2019
		(Unaudited)	(Audited)

Asset acquisition or construction contracts entered
into but not completed	890,103,758.72	149,181,143.13
Property development contracts entered into and
being executed or will be executed	11,871,761,172.98	2,638,777,513.45

		12,761,864,931.70	2,787,958,656.58

CONTINGENCIES

					Unit: RMB
				As at	As at
				30 June 2020 31 December 2019
				(Unaudited)	(Audited)

Provision of guarantee on mortgage to
third parties	Note 1	9,982,539,898.52	8,583,893,305.90
Provision of guarantee on loans and
others to third parties	Note 2	980,000,000.00	1,000,000,000.00

				10,962,539,898.52	9,583,893,305.90

Note 1:	Certain customers of the Group have purchased the commodity housing developed by the Group
	by way of bank mortgage (secured loans). According to the bank requirement in respect of the
	secured loans of the individual purchase of housing, the Group has provided guarantees to secure
	the periodical and joint obligation of such secured loans granted by banks for home buyers.
	These guarantees will be released upon obtaining building ownership certificates and completion
	of formalities of mortgage by the home buyers. The management is of the opinion that in the
	event of default in payments, the net realizable value of the relevant properties is sufficient to

cover the outstanding mortgage principals together with the accrued interests and penalties, and therefore no provision for the guarantees has been made in the financial statements.

MANAGEMENT DISCUSSION AND ANALYSIS

Note 2: Jidong Group, a subsidiary of the Group, provided guarantee on the borrowings of RMB980,000,000.00 for Tangshan Culture & Tourism Investment Group Co., Ltd. (唐山市文化旅遊投資集團有限公司). The Guarantee will expire on 21 May 2029.

PLEDGE OF ASSETS

As at 30 June 2020, certain of the Group's inventories, fixed assets, investment properties, land use rights and equity interest totaling RMB52,148.0 million (as at 31 December 2019: RMB60,999.1 million) were pledged or mortgaged to secure the short-term and long-term loans of the Group, which accounted for approximately 17.6% of the total assets of the Group (as at 31 December 2019: 21.6%).

EMPLOYEES

As at 30 June 2020, the Group had 47,945 employees in total (as at 31 December 2019: 49,189). During the Reporting Period, the aggregate remuneration of the Group's employees (including Directors' remuneration) amounted to approximately RMB2,649.0 million (for the six months ended 30 June 2019: RMB3,082.8 million), representing a decrease of approximately 14.1%. The Group provides its employees in the PRC with retirement insurance, medical insurance, unemployment insurance, maternity insurance and industrial injury insurance as well as a housing provident fund pursuant to PRC laws and regulations. The Group pays salaries to its employees based on a combination of factors such as their positions, lengths of service and work performance, and reviews these salaries and benefits on a regular basis.

RISK MANAGEMENT

The Group has established and maintained sufficient risk management procedures to identify and control various types of risk within the organisation and the external environment with active management participation and effective internal control procedures, which is in the best interest of the Group and its shareholders.

BBMG CORPORATION	41
INTERIM REPORT 2020

MANAGEMENT DISCUSSION AND ANALYSIS

FOREIGN EXCHANGE RISK MANAGEMENT

The Group mainly operates its business in the PRC. During the Reporting Period, sales proceeds and procurement expenses of the Group were mainly denominated in RMB. Most of the Group's financial instruments such as accounts and bills receivable, cash and bank balances are denominated in the same currency or a currency that is pegged to the functional currency of the operations to which the transactions are related. Accordingly, it is believed that the Group has minimal foreign exchange risks. The Group has not used any forward contract or currency borrowing to hedge its interest rate risks. Fluctuations of the exchange rates of foreign currencies did not constitute any material challenges to the Group or have any significant effects on its operations or working capital during the Reporting Period. However, the management will continue to monitor foreign exchange risks and adopt prudent measures as appropriate.

TREASURY POLICIES

The Group adopts conservative treasury policies and controls tightly its cash and risk management. The Group's cash and bank balances are held mainly in RMB. Surplus cash is generally placed in short term deposits denominated in RMB.

MATERIAL ACQUISITION AND DISPOSAL OF SUBSIDIARIES

The Group had not conducted any substantial acquisition or disposal of subsidiaries, associates or joint ventures that were required to be disclosed during the Reporting Period.

SIGNIFICANT EVENTS AFTER BALANCE SHEET DATE

As at the date of this interim report, the Group did not have any significant event after balance sheet date required to be disclosed.

OTHER

INFORMATION

SUBSTANTIAL SHAREHOLDERS' AND OTHER PERSONS' INTERESTS IN SHARES

As at 30 June 2020, the total number of issued shares of the Company was 10,677,771,134 shares, of which 8,339,006,264 were A Shares and 2,338,764,870 were H Shares. To the best knowledge of the directors of the Company (the "Directors"), the records of interest (being 5% or more of the Company's issued share capital) as registered in the register of interests kept by the Company under section 336 of the Securities and Futures Ordinance (the "SFO") were as follows:

Long positions:
				Percentage
				of such
				shareholding
				in the same	Percentage of
Type of		Capacity and nature	Number of	type of issued	total issued
shareholding	Name of shareholder	of interest	shares held	share capital	share capital
				(%)	(%)

A Shares	北京國有資本經營管理中心 (Beijing	Direct beneficial owner	4,797,357,572	57.53	44.93
	State-owned Capital Operation
	and Management Center, "Beijing
	SCOM Center") (Note 1)
	北京京國發股權投資基金（有限合夥）	Interest of corporation	43,115,900	0.52	0.40
	(Beijing Jingguofa Equity Investment	controlled by
	Fund (Limited Partnership))	the substantial
	(Note 2)	shareholder
	State-owned Assets Supervision and	Held by controlled	4,840,473,472	58.05	45.33
	Administration Commission of	corporation
	People's Government of Beijing
	Municipality (Note 1)
H Shares	Ouyang Jieliang	Direct beneficial owner	214,351,000	9.17	2.01
H Shares	FMR LLC	Interest of corporation	189,271,901	8.09	1.77
		controlled by
		the substantial
		shareholder
H Shares	Fidelity Investment Trust	Direct beneficial owner	142,387,500	6.09	1.33
H Shares	Prime Capital Management Company	Investment manager	139,915,755	5.98	1.31
	Limited

BBMG CORPORATION	43
INTERIM REPORT 2020

OTHER INFORMATION

Note 1:The Beijing SCOM Center is a collectively-owned enterprise established under the laws of the PRC with registered capital fully paid up by the State-owned Assets Supervision and Administration Commission of People's Government of Beijing Municipality.

Note 2: The Beijing SCOM Center is interested in 43,115,900 A Shares of the Company through its 83.4262%

direct equity interest in Beijing Jingguorui State-owned Assets Reform and Development Fund (Limited Partnership)* (北京京國瑞國企改革發展基金(有限合夥)) and 93.32% indirect equity interest in Beijing Jingguofa Equity Investment Fund (Limited Partnership)* (北京京國發股權投資基金(有限合

夥)), which is directly held by Jingguorui State-owned Assets Reform and Development Fund (Limited Partnership)* (北京京國瑞國企改革發展基金(有限合夥)) .

Save as disclosed above, as at 30 June 2020, so far as was known to the Directors, there were no other parties who had interests or short positions in the shares or underlying shares of the Company which would fall to be disclosed to the Company and the Hong Kong Stock Exchange under the provisions of Divisions 2 and 3 of Part XV of the SFO, or which were recorded in the register of interests required to be kept by the Company pursuant to Section 336 of the SFO.

OTHER INFORMATION

INTERESTS AND SHORT POSITIONS OF DIRECTORS, SUPERVISORS AND CHIEF EXECUTIVE IN SHARES AND UNDERLYING SHARES

As at 30 June 2020, the interests or short positions of the Company's Directors, supervisors or chief executive in the shares and underlying shares of the Company or any of its associated corporations (within the meaning of Part XV of the SFO) which were required to be notified to the Company and the Hong Kong Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests or short positions which they were taken or deemed to have under such provisions of the SFO); or were required, pursuant to section 352 of the SFO, to be entered in the register of interests maintained by the Company, or were required, pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers (the "Model Code") set out in Appendix 10 to the Listing Rules, to be notified to the Company and the Hong Kong Stock Exchange, were as follows:

					Percentage
					of such
					shareholding in	Percentage
		Capacity			the same type	of total
		and nature	Number of	Type of	of issued share	issued share
Name	Position	of interest	shares held	shareholding	capital	capital
					(%)	(%)

Jiang Deyi	Director	Beneficial owner	63,000 Shares	A Shares	0.00%	0.00%
Wu Dong	Director	Beneficial owner	60,000 Shares	A Shares	0.00%	0.00%

All the shareholding interests listed in the above table are "long" positions.

MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS AND SUPERVISORS

The Company has adopted the model code for securities transactions by the Directors, supervisors and relevant employees on terms no less exacting than the required standards set out in the Model Code. Relevant employees who are likely to be in possession of inside information in relation to the purchase and sale of the securities of the Company are also required to comply with the Model Code.

As at 30 June 2020, the Directors were not aware of any issues of the Directors, supervisors and relevant employees not in compliance with the Model Code during the six months ended 30 June 2020. Specific enquiry has been made to all Directors and supervisors, who have confirmed that they had complied with the Model Code during the Reporting Period.

BBMG CORPORATION	45
INTERIM REPORT 2020

OTHER INFORMATION

PURCHASE, SALES OR REDEMPTION OF THE COMPANY'S LISTED SECURITIES

The Group did not sell, repurchase or redeem any of the securities of the Company during the six months ended 30 June 2020.

CORPORATE GOVERNANCE CODE

Good corporate governance is conducive to enhancing overall performance and accountability and is essential in modern corporate governance. The Board continuously observes the principles of good corporate governance in the interests of Shareholders and devotes considerable effort identifying and formalizing the best practice. During the Reporting Period, the Company had reviewed its corporate governance documents and the Board is of the view that the Company had fully complied with the code provisions of the Corporate Governance Code set out in Appendix 14 to the Listing Rules.

BOARD COMPOSITION

The balance of power and authorities is ensured by the operation of the Board and the senior management, which comprise experienced and high caliber individuals. As of the date of this interim report, the Board comprises three executive Directors, two non-executive Directors and four independent non-executive Directors. It has a strong independence element in its composition.

There is no change in the composition of the Board during the Reporting Period.

INVESTOR RELATIONS MANAGEMENT

The Group strongly believes that investor relations are an integral part of maintaining good corporate governance of a listed company. During the Reporting Period, the Group has been actively maintaining contact with investors and keeping them abreast of the industry updates, corporate information and business development in a timely manner, so as to establish a platform for fair, open and transparent information disclosure. The Board Secretary, Zheng Baojin, is responsible for the investor relations of the Group with the full support from the Board and the senior management. During the six months ended 30 June 2020, the Group actively participated in various investor relations activities and provided real-time information to investors through its company website.

OTHER INFORMATION

1. Investor Forums and Conferences

During the six months ended 30 June 2020, the Group held a number of investors' online briefing on the results and telephone presentations, and actively organized one-on-one and group meetings with fund managers and analysts in various regions. During the Reporting Period, the Group has met with various analysts, fund managers and financial commentators and maintained close communications with institutional investors, providing them with up-to- date information about the Group.

2. Ongoing Communications with Shareholders, Investors and Analysts

The Group has adopted an active and progressive approach to provide the shareholders and investors of the Group with the opportunity to communicate with the senior management of the Group through one-on-one and group meetings and luncheons to share with them the financial performance, business updates and future prospects of the Group.

3. Results and Profit Alert Announcements

The Group had prepared detailed result reports upon release of interim and annual results accompanied by a profit alert announcement where required under Rule 13.09(2) of the Listing Rules and the Inside Information Provisions under Part XIVA of the SFO. Investors' online briefing on the results and telephone presentations were also held to provide updates in relation to the market environment, financial performance, operating strategies and future prospects to the public in an accurate and effective manner, so as to maintain the Group's transparent investor relations strategy and strengthen the communications with the public.

4. Maintaining Interactive Communications with Media

The Group endeavors to maintain a close relationship with the overseas and local media, and disseminate the Group's updates to the public through various channels, ranging from organizing press conferences for interim and annual results announcements, issuing regular press releases, and arranging news media interviews with the management of the Group, thus increasing the Group's publicity and further strengthening its corporate image and position.

5. Timely Dissemination of Latest Corporate Updates

Company website is considered to be one of the quickest means to communicate with investors. Information was disseminated through the Company's website (www.bbmg.com.cn/listco) as the platform to communicate with the public. The Group regularly updates the website contents, disseminates the latest corporate updates and developments and discloses financial information of the Group so as to enable the public to obtain such information in a timely manner. In addition, the Group also swiftly responds to different enquiries made by the shareholders, investors, analysts and media by means of email, facsimile and telephone, and publishes announcements, press releases and other latest updates on the development of the Group, so as to strengthen the effectiveness of information dissemination.

BBMG CORPORATION	47
INTERIM REPORT 2020

OTHER INFORMATION

INVESTOR INFORMATION

1.	Share Particulars
	H Shares
	Listing date	29 July 2009
	Stock Exchange	Hong Kong Stock Exchange
	Board lot	1,000 shares
	Number of issued H Shares	2,338,764,870 shares (as at 30 June 2020
		and 19 August 2020)
	Stock code	02009.HK
	A Shares
	Listing date	1 March 2011
	Stock Exchange	Shanghai Stock Exchange
	Board lot	100 shares
	Number of issued A Shares	8,339,006,264 shares (as at 30 June 2020
		and 19 August 2020)
	Stock code	601992.SH

2.	Financial Calendar
	2019 annual results announcement	published on 31 March 2020
	2020 first quarterly results announcement	published on 29 April 2020
	2020 interim results announcement	published on 19 August 2020
	2019 annual general meeting	held on 19 May 2020
	Closure of register of H shares members to	20	April 2020 - 19 May 2020
	determine the eligibility of shareholders to
	attend the 2019 annual general meeting
	Financial year end	31	December

3.	Dividends
	2019 final dividends	RMB0.12 per share (inclusive of applicable
			tax) (or equivalent to HK$0.1311 per
			H share)
	Closure of register of H shares members to	28	May 2020 - 2 June 2020
	determine the entitlement of shareholders
	to the 2019 final dividends
	Payment of 2019 final dividends of H shares	17	July 2020

OTHER INFORMATION

For any queries, please contact:

BBMG Corporation

Room 2220, 22nd Floor, Tower D

Global Trade Center

No. 36 North Third Ring East Road

Dongcheng District

Beijing 100013

The People's Republic of China

Investor Relations Department

Phone: (8610) 6641 7706

Fax: (8610) 6641 0889

Email: ir@bbmg.com.cn

Company website: www.bbmg.com.cn/listco

AUDIT COMMITTEE

The Company has established the Audit Committee pursuant to the provisions of the Listing Rules, aimed at reviewing and supervising the Group's financial reporting procedures. The Audit Committee is composed of two non-executive Directors and four independent non-executive Directors. At the meeting convened on 19 August 2020, the Audit Committee had reviewed the unaudited interim consolidated financial statements of the Group for the six months ended 30 June 2020. The Audit Committee has considered the Group's internal audit report for the first half of 2020, reviewed the accounting standards and practices adopted by the Group, considered the Group's financial statements for the first half of 2020 and recommended their adoption by the Board.

As at the date of this interim report, members of the Audit Committee are Mr. Guo Yanming (non- executive Director), Mr. Xue Chunlei (non-executive Director), Mr. Wang Guangjin (independent non- executive Director), Mr. Tian Lihui (independent non-executive Director), Mr. Tang Jun (independent non-executive Director) and Mr. Ngai Wai Fung (independent non-executive Director). Mr. Tian Lihui is the chairman of the Audit Committee.

AUDITORS

The Board has engaged Ernst & Young Hua Ming LLP, Certified Public Accountant, to review the interim financial statements of the Company.

BBMG CORPORATION	49
INTERIM REPORT 2020

Review Report on Interim Financial Statements

Ernst & Young Hua Ming (2020) Zhuan Zi No. 60667053_A14

To the shareholders of BBMG Corporation:

We have audited the accompanying financial statements of BBMG Corporation, which comprise the consolidated and company balance sheets as at 30 June 2020, and the consolidated and company income statements, the statements of changes in equity and the statements of cash flows for the six-month period ended 30 June 2020 and the notes to the financial statements (hereinafter collectively, the "Interim Financial Statements". The management of BBMG Corporation is responsible for the preparation of the Interim Financial Statements, while we are responsible for the presentation of a review report on the Interim Financial Statements based on our review.

We conducted our review in accordance with China's Auditing Standards for the Certified Public Accountants No. 2101 － Review of Financial Statements. The standard requires our planning of and performing the audit to obtain reasonable assurance about whether the Interim Financial Statements as a whole are free from material misstatement. The review is principally based on the enquiries with the related staff of the Company and on the analysis procedures on the financial data only, therefore the extent of assurance provided by which fall below that obtained from audit. As a result of the non-performance of audit, we do not provide audit opinion.

Based on our review, we have not been aware of any convincing events that the said Interim Financial Statements had failed to be prepared in accordance with the Accounting Standards for Business Enterprises No. 32 - Interim Financial Report or failed to present fairly, in all material aspects, the financial position, the operating results and cash flows of BBMG Corporation.

Ernst & Young Hua Ming LLP

Chinese Certified Public Accountant: Meng Dong (Engagement Partner)

Chinese Certified Public Accountant: Meng Jia

Beijing, the PRC

19 August 2020

Unaudited Interim Consolidated Balance Sheet

As at 30 June 2020

RMB

Assets	Note V		30 June 2020		31 December 2019
			(Unaudited)		(Audited)

Current assets
Cash and bank balances	1	33,241,536,646.77	21,325,042,578.37
Financial assets held for trading	2	1,019,907,801.08		1,015,278,286.73
Bills receivable	3	631,065,293.97		5,202,609,351.30
Accounts receivable	4	8,644,064,329.10		8,001,473,532.63
Accounts receivable financing	5	3,907,669,819.53		501,846,392.39
Prepayments	6	1,960,493,783.58		1,524,225,471.45
Other receivables	7	8,621,312,597.48		9,067,357,777.42
Inventories	8	123,786,301,663.54		121,531,025,336.50
Contract assets	9	37,147,095.89		42,952,083.21
Other current assets	10		7,170,161,203.56		6,284,046,698.11
Total current assets		189,019,660,234.50	174,495,857,508.11
Non-current assets
Debt investments	11	782,487,853.43		206,933,697.53
Long-term receivables	12	810,282,362.23		1,021,971,024.22
Long-term equity investments	13	3,821,481,200.35	3,988,531,537.26
Investment in other equity instruments	14	351,710,927.94		382,047,682.07
Investment properties	15	29,878,169,538.84	29,632,244,749.53
Fixed assets	16	43,857,680,989.82	44,512,207,458.24
Construction in progress	17	2,286,915,817.55	2,279,231,800.75
Right-of-use assets	18	608,164,961.93		589,176,549.64
Intangible assets	19	16,470,155,368.39	16,625,761,408.49
Goodwill	20	2,591,468,983.05	2,591,468,983.05
Long-term deferred expenditures	21	1,385,118,193.28	1,276,284,193.48
Deferred income tax assets	22	4,035,605,251.74	3,988,640,507.00
Other non-current assets	23		575,254,833.74		533,398,608.96

Total non-current assets			107,454,496,282.29	107,627,898,200.22
Total assets		296,474,156,516.79	282,123,755,708.33

The accompanying notes form an integral part of these financial statements

BBMG CORPORATION	51
INTERIM REPORT 2020

Unaudited Interim Consolidated Balance Sheet (continued)

As at 30 June 2020

RMB

Liabilities and equity attributable to shareholders	Note V		30 June 2020		31 December 2019
			(Unaudited)		(Audited)

Current liabilities
Short-term loans	24	35,045,118,750.00	37,217,682,474.50
Bills payable	25	1,743,516,966.36	1,976,142,322.65
Accounts payable	26	16,572,152,922.36	17,701,948,542.45
Receipts in advance	27	320,934,858.39	334,666,882.90
Contract liabilities	28	26,224,948,449.30	24,557,147,374.24
Wages payable	29	268,751,558.20	490,892,896.45
Tax payable	30	2,518,307,195.51	2,515,633,050.02
Other payables	31	10,804,230,790.42	8,517,423,661.65
Non-current liabilities due within one year	32	18,783,090,079.78	20,319,530,862.57
Short-term financing bonds payable	35	4,396,868,375.88	3,298,801,089.25
Other current liabilities	33	10,824,224,601.99	10,776,488,930.30
Total current liabilities		127,502,144,548.19	127,706,358,086.98
Non-current liabilities
Long-term loans	34	37,639,595,784.47	35,787,401,022.47
Bonds payable	35	29,651,078,179.40	27,460,996,718.14
Lease liabilities	36	334,356,667.15	317,196,853.52
Long-term payables	37	19,712,220.69		17,818,306.88
Long-term wages payable	38	647,847,827.02	647,490,892.12
Accrued liabilities	39	874,199,995.41	803,168,068.27
Deferred income	40	834,642,493.54	837,416,381.95
Deferred income tax liabilities	22	5,949,495,381.53	5,992,070,007.93
Other non-current liabilities	41		21,775,903.94			22,488,938.80

Total non-current liabilities			75,972,704,453.15	71,886,047,190.08
Total liabilities		203,474,849,001.34	199,592,405,277.06

The accompanying notes form an integral part of these financial statements

Unaudited Interim Consolidated Balance Sheet (continued)

As at 30 June 2020

RMB

Liabilities and equity attributable to shareholders	Note V		30 June 2020	31 December 2019
			(Unaudited)	(Audited)

Equity attributable to shareholders
Share capital	42	10,677,771,134.00	10,677,771,134.00
Other equity instruments	43	17,512,000,000.00	14,962,000,000.00
Including: Perpetual bonds		17,512,000,000.00	14,962,000,000.00
Capital reserve	44	6,421,285,817.02	6,434,307,002.11
Other comprehensive income	45	206,632,714.69	232,267,913.04
Specific reserve	46	47,512,477.25	32,250,174.13
Surplus reserve	47	1,926,994,968.55	1,926,994,968.55
General risk reserve	48	359,957,564.90	359,957,564.90
Retained earnings	49	26,336,978,514.22	26,505,650,840.60
Total equity attributable to the shareholders of the parent
company		63,489,133,190.63	61,131,199,597.33
Minority interests		29,510,174,324.82	21,400,150,833.94
Total equity attributable to shareholders		92,999,307,515.45	82,531,350,431.27
Total liabilities and equity attributable to shareholders		296,474,156,516.79	282,123,755,708.33
The financial statements have been signed by:

Legal representative:	Chief accountant:	Head of the accounting department:
Jiang Deyi	Chen Guogao	Wang Lanfeng

The accompanying notes form an integral part of these financial statements

BBMG CORPORATION	53
INTERIM REPORT 2020

Unaudited Interim Consolidated Income Statement

For the six months ended 30 June 2020

RMB

			January to		January to
	Note V		June 2020		June 2019
			(Unaudited)		(Unaudited)

Operating revenue	50	40,928,098,134.64		44,611,088,630.66
Less: Operating costs	50	31,513,755,189.53		32,233,081,668.80
Tax and surcharges	51	797,689,781.43		1,876,770,916.69
Selling expenses	52	1,302,239,165.35		1,390,471,643.71
Administrative expenses	53	2,860,480,846.42		3,193,509,354.13
Research and development expenses	54	138,524,427.00		120,614,864.67
Finance costs	55	1,694,837,346.02		1,414,421,704.70
Including: Interest expense		1,757,088,862.95		1,709,474,654.52
Interest income		253,487,917.73		445,148,683.74
Add: Other gains	56	285,851,134.84		339,144,246.14
Investment gains	57	211,678,187.29		254,789,279.12
Including: Gains from investment in associates and
joint ventures		158,492,876.08		201,772,767.47
Gains from changes in fair value	58	252,221,568.61		500,972,469.63
Credit impairment losses	59	(158,664,388.39)	(148,435,766.41)
Asset impairment losses	60	(10,710,430.49)	(66,991,361.63)
Gains on disposal of assets	61		24,993,675.24			2,579,915.26

Operating profit			3,225,941,125.99			5,264,277,260.07
Add: Non-operating revenue	62	233,719,984.38		120,848,872.17
Less: Non-operating expenses	63		94,440,588.62			120,488,103.75

Total profit			3,365,220,521.75			5,264,638,028.49
Less: Income tax expenses	65		1,177,626,556.08			1,299,665,306.11

Net profit			2,187,593,965.67			3,964,972,722.38
Classified by continuing operations

Net profit from continuing operations		2,187,593,965.67		3,964,972,722.38
Classified by attribution of ownership
Net profit attributable to the shareholders of the parent
company		1,523,592,114.58		3,045,574,008.22
Minority interests		664,001,851.09		919,398,714.16

The accompanying notes form an integral part of these financial statements

Unaudited Interim Consolidated Income Statement (continued)

For the six months ended 30 June 2020

RMB

				January to		January to
	Note V			June 2020		June 2019
				(Unaudited)		(Unaudited)

Net other comprehensive income after tax attributable to
shareholders of the parent company		(25,635,198.35)	(1,083,524.13)
Other comprehensive income not allowed to be reclassified
into profit or loss
Changes arising from re-measurement of defined benefit
plans		(8,524,914.00)	(5,000.00)
Changes in fair value of investment in other equity
instruments		(5,348,706.32)	(1,248,349.60)
Other comprehensive income to be reclassified into profit
or loss
Other comprehensive income that may be reclassified to
profit or loss under the equity method		(8,734,689.30)	399,789.66
Exchange differences on translation of financial
statements prepared in foreign currency		(3,026,888.73)	(229,964.19)
Net other comprehensive income after tax attributable to
minority interests			(42,836,485.65)	(3,193,721.80)

Total comprehensive income			2,119,122,281.67		3,960,695,476.45
Including:

Total comprehensive income attributable to the
shareholders of the parent company		1,497,956,916.23		3,044,490,484.09
Total comprehensive income attributable to minority

interests		621,165,365.44		916,204,992.36
Earnings per share

Basic earnings per share (RMB/share)	66	0.14		0.29

Diluted earnings per share (RMB/share)	66	0.14		0.29

The accompanying notes form an integral part of these financial statements

BBMG CORPORATION	55
INTERIM REPORT 2020

Unaudited Interim Consolidated Statement of Changes in Shareholders' Equity

For the six months ended 30 June 2020

RMB

				Equity attributable to shareholders of the parent company

		Other equity
		instruments			Other								Total equity
	Share	Including:	Capital		Comprehensive	Specific	Surplus	General	Retained		Minority	attributable to
	capital	Perpetual bonds	reserve		income	reserve	reserve	risk reserve	earnings	Subtotal	interests	shareholders

1. Balance at the end of the
previous period	10,677,771,134.00	14,962,000,000.00	6,434,307,002.11	232,267,913.04	32,250,174.13	1,926,994,968.55		359,957,564.90	26,505,650,840.60	61,131,199,597.33	21,400,150,833.94	82,531,350,431.27
2. Movements during the
period
(i) Total comprehensive
income	-	-	-	(25,635,198.35)	-	-	-	1,523,592,114.58	1,497,956,916.23	621,165,365.44	2,119,122,281.67

Capital contribution and reduction from shareholders

1	New capital
	contribution
	from minority
	shareholders	-	-	-	-	-	-	-	-	-	8,400,000,000.00	8,400,000,000.00
2	Equity transactions
	that do not
	affect control	-	-	(13,021,185.09)	-	-	-	-	-	(13,021,185.09)	(109,188,762.12)	(122,209,947.21)
3	Reduction of
	minority
	interests upon
	deregistration of
	subsidiaries	-	-	-	-	-	-	-	-	-	(346,772.85)	(346,772.85)
4	Disposal of non-
	wholly owned
	subsidiaries	-	-	-	-	-	-	-	-	-	1,987,131.53		1,987,131.53
5	Issuance of
	perpetual
	bonds	-	2,550,000,000.00		-	-	-	-	-	-	2,550,000,000.00		-	2,550,000,000.00
(iii) Profit distribution
1	Dividend to
	shareholders	-	-	-	-	-	-	-	(1,281,332,536.08)	(1,281,332,536.08)	(715,011,733.00)	(1,996,344,269.08)
2	Interest on
	perpetual
	bonds	-	-	-	-	-	-	-	(410,931,904.88)	(410,931,904.88)	(102,000,000.00)	(512,931,904.88)
(iv) Specific reserve
1	Appropriated
	during the
	period	-	-	-	-	50,917,364.75		-	-	-	50,917,364.75		55,279,368.32		106,196,733.07
2	Paid during the
	period	-	-	-	-	(35,655,061.63)	-	-	-	(35,655,061.63)	(41,861,106.44)	(77,516,168.07)
III. Balance at the end of
the period	10,677,771,134.00		17,512,000,000.00	6,421,285,817.02	206,632,714.69	47,512,477.25	1,926,994,968.55	359,957,564.90	26,336,978,514.22	63,489,133,190.63	29,510,174,324.82	92,999,307,515.45

The accompanying notes form an integral part of these financial statements

Unaudited Interim Consolidated Statement of Changes in Shareholders' Equity (continued)

For the six months ended 30 June 2019

RMB

								Equity attributable to shareholders of the parent company

				Other equity
				instruments			Other								Total equity
				Including:	Capital	comprehensive	Specific	Surplus	General					attributable to
		Paid-up capital	Perpetual bonds	reserve	income	reserve	reserve	risk reserve	Retained earnings	Subtotal		Minority interests	shareholders

I. Balance at the end of the
previous period	10,677,771,134.00	14,962,000,000.00	5,273,970,842.54		206,951,321.03	20,124,124.94	1,537,434,040.24	340,792,201.29	24,646,427,835.84	57,665,471,499.88	21,549,031,047.34	79,214,502,547.22
Plus: Changes in
accounting policies		-	-	-	-	-	-	-	(39,155,945.38)	(39,155,945.38)	(71,099,466.79)	(110,255,412.17)
II. Balance at the beginning of
the period	10,677,771,134.00	14,962,000,000.00	5,273,970,842.54		206,951,321.03	20,124,124.94	1,537,434,040.24	340,792,201.29	24,607,271,890.46	57,626,315,554.50	21,477,931,580.55	79,104,247,135.05

Movements during the period
1. Total comprehensive

income

(1,083,524.13)

3,045,574,008.22

3,044,490,484.09

916,204,992.36

3,960,695,476.45

Capital contribution and reduction from shareholders
1 Equity transactions

	that do not affect
	control	-	-	406,999,558.21	-	14,642,439.62	-	-	-	421,641,997.83	(421,641,997.83)	-
2	Business
	combination not
	under common
	control	-	-	-	-	-	-	-	-	-	190,512,133.32	190,512,133.32
3	New capital
	contribution
	from minority
	shareholders	-	-	-	-	-	-	-	-	-	13,754,000.00	13,754,000.00
4	Reduction of
	minority
	interests upon
	deregistration of
	subsidiaries	-	-	-	-	-	-	-	-	-	(250,249.49)	(250,249.49)
5	Disposal of non-
	wholly owned
	subsidiaries	-	-	-	-	-	-	-	-	-	(6,150,335.85)	(6,150,335.85)
6	Issuance of
	perpetual bonds	-	-	-	-	-	-	-	-	-	1,018,867.89	1,018,867.89

Profit distribution 1 Dividend to

	shareholders	-	-	-	-	-	-	-	(587,277,412.39)	(587,277,412.39)	(566,989,423.73)	(1,154,266,836.12)
2	Interest on perpetual
	bonds	-	-	-	-	-	-	-	(401,820,000.00)	(401,820,000.00)	(102,000,000.00)	(503,820,000.00)
(IV) Specific reserve
1	Appropriated during
	the period	-	-	-	-	48,884,388.91		-	-	-	48,884,388.91		49,100,142.41	97,984,531.32
2	Paid during the
	period	-	-	-	-	(42,819,970.51)	-	-	-	(42,819,970.51)	(41,637,611.85)	(84,457,582.36)
IV. Balance at the end of
the period	10,677,771,134.00		14,962,000,000.00	5,680,970,400.75	205,867,796.90	40,830,982.96	1,537,434,040.24	340,792,201.29	26,663,748,486.29	60,109,415,042.43	21,509,852,097.78	81,619,267,140.21

The accompanying notes form an integral part of these financial statements

BBMG CORPORATION	57
INTERIM REPORT 2020

Unaudited Interim Consolidated Statement of Cash Flows

For the six months ended 30 June 2020

RMB

				January to		January to
		Note V		June 2020		June 2019
				(Unaudited)		(Unaudited)

I.	Cash flows from operating activities:
	Cash received from sale of goods or rendering of
	services		42,424,498,505.94		45,105,904,822.83
	Refunds of taxes		142,413,679.76		185,168,773.65
	Cash received from other operating activities	67	1,313,541,602.97	1,710,153,747.87
	Subtotal of cash inflows from operating activities		43,880,453,788.67	47,001,227,344.35
	Cash paid for goods and services		31,069,130,924.70	34,221,743,227.59
	Cash paid to and on behalf of employees		2,850,706,939.66	3,232,695,697.55
	Cash paid for all types of taxes		4,148,113,829.40	4,868,452,733.08
	Cash paid for other operating activities	67	2,925,639,363.78	3,219,312,975.56
	Net increase in deposits placed with the Central Bank			89,166,965.95			510,943,095.83

	Subtotal of cash outflows from operating activities			41,082,758,023.49	46,053,147,729.61
	Net cash flows from operating activities	67	2,797,695,765.18		948,079,614.74
II.	Cash flows from investing activities:
	Cash received from redemption of investments			-	234,199,108.75
	Cash received from return on investments		427,515,539.10	413,516,423.78
	Net cash received from disposal of fixed assets,
	intangible assets and other long-term assets		312,971,686.10	140,068,834.15
	Net cash received from disposal of subsidiaries and
	other operating units		83,459,798.22	703,628,908.97
	Cash received from other investing activities	67	1,157,825,990.68	2,628,396,634.59
	Subtotal of cash inflows from investing activities		1,981,773,014.10		4,119,809,910.24
	Cash paid for acquisition of fixed assets, intangible
	assets and other long-term assets		1,369,630,475.63		938,166,939.93
	Cash paid for investments		100,000,000.00		100,820,000.00
	Net cash paid for acquisition of subsidiaries and other
	operating units			-	48,421,037.65
	Cash paid for other investing activities	67	1,682,426,792.53		3,984,958,397.03
	Subtotal of cash outflows from investing activities		3,152,057,268.16		5,072,366,374.61
	Net cash flows from investing activities		(1,170,284,254.06)	(952,556,464.37)

The accompanying notes form an integral part of these financial statements

Unaudited Interim Consolidated Statement of Cash Flows (continued)

For the six months ended 30 June 2020

RMB

				January to		January to
		Note V		June 2020		June 2019
				(Unaudited)		(Unaudited)

III.	Cash flows from financing activities:
	Cash received from capital contributions		8,400,000,000.00		13,754,000.00
	Including: Cash received by subsidiaries from minority
	interests		8,400,000,000.00		13,754,000.00
	Cash received from issuance of bonds		11,214,307,000.00	8,495,523,773.58
	Cash received from borrowings		29,063,222,096.20	32,882,355,515.71
	Cash received from issuance of perpetual bonds		2,550,000,000.00		-
	Cash received from other financing activities	67	720,300,000.00			35,000,000.00

	Subtotal of cash inflows from financing activities		51,947,829,096.20		41,426,633,289.29
	Cash paid for repayment of borrowings		34,053,948,026.27	28,553,033,237.95
	Cash paid for distribution of dividends or profits or for
	interest expenses		3,740,497,267.45	3,508,805,604.30
	Including: Dividends and profits paid by subsidiaries to
	minority interests		545,005,214.45		200,035,558.58
	Cash paid for redemption of bonds		4,875,552,000.00	6,691,065,000.00
	Cash paid for other financing activities	67		110,399,947.21			484,564,382.84

	Subtotal of cash outflows from financing activities			42,780,397,240.93	39,237,468,225.09
	Net cash flows from financing activities		9,167,431,855.27		2,189,165,064.20
IV.	Effect of changes in exchange rate on cash and cash
	equivalents			3,388,131.68			(12,997,514.67)

V.	Net increase in cash and cash equivalents	67		10,798,231,498.07			2,171,690,699.90
	Add: Cash and cash equivalents at the beginning of
	the period	67	15,327,545,297.51		13,520,047,307.82
VI.	Cash and cash equivalents at the end of the period	67	26,125,776,795.58		15,691,738,007.72

The accompanying notes form an integral part of these financial statements

BBMG CORPORATION	59
INTERIM REPORT 2020

Unaudited Interim Balance Sheet of the Company

As at 30 June 2020

RMB

Assets	Note XIV		30 June 2020		31 December 2019
			(Unaudited)		(Audited)

Current Assets
Cash and bank balances		21,254,580,137.78	8,627,307,336.62
Accounts receivable		28,555,573.78			-
Other receivables	1	81,118,224,689.15	74,611,857,334.04
Other current assets			2,321,214.76			2,321,214.75

Total current assets			102,403,681,615.47	83,241,485,885.41
Non-current assets
Long-term receivable			-	110,958,405.25
Investment in other equity instruments		200,000.00		200,000.00
Long-term equity investments	2	48,613,028,475.93	47,954,670,429.73
Investment properties	3	11,948,369,593.33	11,839,906,198.63
Fixed assets		1,042,202,763.92	1,093,157,067.74
Intangible assets		363,962,903.57		371,326,596.68
Long-term deferred expenditure		15,672,425.45			-
Deferred income tax assets		221,233,673.66		221,233,673.66
Other non-current assets			237,974,705.06			32,563,767.56

Total non-current assets			62,442,644,540.92	61,624,016,139.25
Total assets		164,846,326,156.39	144,865,502,024.66

The accompanying notes form an integral part of these financial statements

Unaudited Interim Balance Sheet of the Company (continued)

As at 30 June 2020

RMB

Liabilities and shareholders' equity		30 June 2020		31 December 2019
		(Unaudited)		(Audited)

Current liabilities
Short-term loans	28,648,150,000.00		29,448,150,000.00
Accounts payable	8,534,173.57		8,534,173.57
Receipts in advance	130,163,734.24		148,269,417.58
Wages payable	85,430.15		10,815,430.15
Tax payable	52,642,101.01		52,799,147.76
Other payables	5,930,718,846.89		3,594,511,759.17
Short-term financing bonds payable	2,000,000,000.00		2,000,000,000.00
Non-current liabilities due within one year	12,901,271,763.07		11,593,754,157.19
Total current liabilities	49,671,566,048.93		46,856,834,085.42
Non-current liabilities
Long-term loans	32,555,851,500.00		22,426,432,300.00
Bonds payable	26,158,730,448.80		23,969,695,517.95
Long-term wages payable	342,902,787.46		341,924,593.46
Deferred income tax liabilities		2,196,389,549.05			2,169,273,700.37

Total non-current liabilities		61,253,874,285.31			48,907,326,111.78
Total liabilities	110,925,440,334.24		95,764,160,197.20

The accompanying notes form an integral part of these financial statements

BBMG CORPORATION	61
INTERIM REPORT 2020

Unaudited Interim Balance Sheet of the Company (continued)

As at 30 June 2020

RMB

Liabilities and shareholders' equity		30 June 2020	31 December 2019
		(Unaudited)	(Audited)

Equity attributable to shareholders
Share capital	10,677,771,134.00	10,677,771,134.00
Other equity instruments	17,962,000,000.00	14,962,000,000.00
Including: Perpetual bonds	17,962,000,000.00	14,962,000,000.00
Capital reserve	6,674,854,902.82	6,674,854,902.82
Other comprehensive income	73,272,959.79	81,426,873.79
Surplus reserve	1,924,214,128.32	1,924,214,128.32
Retained earnings	16,608,772,697.22	14,781,074,788.53
Total equity attributable to shareholders	53,920,885,822.15	49,101,341,827.46
Total liabilities and equity attributable to shareholders	164,846,326,156.39	144,865,502,024.66
The financial statements have been signed by:

Legal representative:	Chief accountant:	Head of the accounting department:
Jiang Deyi	Chen Guogao	Wang Lanfeng

The accompanying notes form an integral part of these financial statements

Unaudited Interim Income Statement of the Company

For the six months ended 30 June 2020

RMB

			January to		January to
	Note XIV		June 2020		June 2019
			(Unaudited)		(Unaudited)

Operating revenue	4	433,646,751.43		520,471,978.62
Less: Operating costs		38,702,097.47		40,778,605.70
Tax and surcharges		65,547,742.80		71,952,479.76
Selling expenses		1,890,344.69		20,575,656.07
Administrative expenses		69,434,854.29		69,481,974.98
Finance costs		658,500,104.34	362,087,077.92
Including: Interest expense		2,259,753,186.92	2,160,565,825.54
Interest income		1,727,017,105.86	1,879,378,223.22
Add: Investment gains	5	3,777,541,030.83	2,300,598,718.99
Including: Gains from investment in associates and
joint ventures		18,967,228.95	17,515,609.08
Gains from changes in fair value			108,463,394.70	50,872,789.63

Operating profit			3,485,576,033.37			2,307,067,692.81
Add: Non-operating revenue		72,106,081.33		5,180,565.65
Less: Non-operating expenses			10,048,424.00			-
Total profit		3,547,633,690.70		2,312,248,258.46
Less: Income tax expenses			27,115,848.68			16,025,063.71

Net profit			3,520,517,842.02			2,296,223,194.75
Classified by continuing operations

Including: Net profit from continuing operations		3,520,517,842.02		2,296,223,194.75
Net other comprehensive income after tax
Other comprehensive income that will not be reclassified to
profit or loss in subsequent periods
Changes arising from re-measurement of defined benefit
plans			(8,153,914.00)		-

Total comprehensive income			3,512,363,928.02			2,296,223,194.75

The accompanying notes form an integral part of these financial statements

BBMG CORPORATION	63
INTERIM REPORT 2020

Unaudited Interim Statement of Changes in Shareholders' Equity of the Company

For the six months ended 30 June 2020

RMB

								Other equity
								instruments			Other
					Share	Including: Perpetual	Capital	comprehensive	Surplus	Retained	Total shareholders'
					capital		bonds	reserve	income	reserve	earnings		equity

I.	Balance at the end of previous
		period and the beginning
		of the period	10,677,771,134.00	14,962,000,000.00	6,674,854,902.82	81,426,873.79	1,924,214,128.32	14,781,074,788.53	49,101,341,827.46
II.	Movements during the period
	(I)	Total comprehensive
			income		-		-	-	(8,153,914.00)	-	3,520,517,842.02	3,512,363,928.02
	(II)	Capital contribution
			and reduction from
			shareholders
		1	Issuance of perpetual
			bonds		-	3,000,000,000.00	-	-	-	-	3,000,000,000.00
	(III) Profit distribution
		1	Dividend to
			shareholders		-		-	-	-	-	(1,281,332,536.08)	(1,281,332,536.08)
		2	Interest on perpetual
			bonds		-		-	-	-	-	(411,487,397.25)	(411,487,397.25)
III.	Balance at the end of the
		period	10,677,771,134.00	17,962,000,000.00	6,674,854,902.82	73,272,959.79	1,924,214,128.32	16,608,772,697.22	53,920,885,822.15

The accompanying notes form an integral part of these financial statements

Unaudited Interim Statement of Changes in Shareholders' Equity of the Company (continued)

For the six months ended 30 June 2019

RMB

					Other equity
					instruments						Total
			Share	Including:	Capital	Other comprehensive	Surplus	Retained	shareholders'
			capital	Perpetual bonds	reserve		income	reserve	earnings	equity

I.	Balance at the beginning of the
	period	10,677,771,134.00		14,962,000,000.00	6,674,854,902.82	64,844,712.79	1,537,434,040.24	12,686,531,408.25	46,603,436,198.10
II.	Movements during the period
	(I) Total comprehensive
		income	-	-	-		-	-	2,296,223,194.75	2,296,223,194.75
	1	Transfer of subsidiaries
		at nil consideration	-	-	(4,571,306,727.21)		-	-	-	(4,571,306,727.21)
	2	Equity interests in
		subsidiaries
		obtained
		through business
		combinations
		under common
		control	-	-	(130,377,538.20)		-	-	-	(130,377,538.20)
	(II) Profit distribution
	1	Dividend to
		shareholders	-	-	-		-	-	(587,277,412.39)	(587,277,412.39)
	2	Interest on perpetual
		bonds	-	-	-		-	-	(401,820,000.00)	(401,820,000.00)
III. Balance at the end of the
	period	10,677,771,134.00		14,962,000,000.00	1,973,170,637.41	64,844,712.79	1,537,434,040.24	13,993,657,190.61	43,208,877,715.05

The accompanying notes form an integral part of these financial statements

BBMG CORPORATION	65
INTERIM REPORT 2020

Unaudited Interim Statement of Cash Flows of the Company

For the six months ended 30 June 2020

RMB

				January to		January to
		Note XIV		June 2020		June 2019
				(Unaudited)		(Unaudited)

I.	Cash flows from operating activities:
	Cash received from sale of goods or rendering of
	services		418,680,898.16		586,147,774.65
	Refunds of taxes			-	387,520.06
	Cash received from other operating activities	6	27,922,486,322.13		25,250,650,933.68
	Subtotal of cash inflows from operating activities		28,341,167,220.29		25,837,186,228.39
	Cash paid for goods and services		7,089,356.87		8,803,428.09
	Cash paid to and on behalf of employees		30,639,829.87		34,474,087.23
	Cash paid for all types of taxes		116,843,085.86		140,101,662.78
	Cash paid for other operating activities	6	29,334,914,941.23	22,632,394,870.02
	Subtotal of cash outflows from operating activities		29,489,487,213.83		22,815,774,048.12
	Net cash flows from operating activities	7	(1,148,319,993.54)	3,021,412,180.27
II.	Cash flows from investing activities:
	Cash received from redemption of investments			-	7,339,214.03
	Cash received from return on investments		1,102,973,750.39		1,072,185,733.41
	Net cash received from disposal of subsidiaries and
	other operating units			-		1,526,863,800.00
	Subtotal of cash inflows from investing activities		1,102,973,750.39		2,606,388,747.44
	Cash paid for acquisition of fixed assets, intangible
	assets and other long-term assets		205,560,649.51		1,273,815.00
	Cash paid for investments		639,390,817.25		4,380,532,303.91
	Cash paid for other investing activities			-			110,958,405.25

	Subtotal of cash outflows from investing activities			844,951,466.76			4,492,764,524.16
	Net cash flows from investing activities		258,022,283.63		(1,886,375,776.72)

The accompanying notes form an integral part of these financial statements

Unaudited Interim Statement of Cash Flows of the Company (continued)

For the six months ended 30 June 2020

RMB

			January to		January to
	Note XIV		June 2020		June 2019
			(Unaudited)		(Unaudited)

III. Cash flows from financing activities:
Cash received from borrowings		27,022,500,000.00	20,886,000,000.00
Cash received from issuance of perpetual bonds		3,000,000,000.00		-
Cash received from issuance of bonds		8,819,107,000.00	6,500,000,000.00
Subtotal of cash inflows from financing activities		38,841,607,000.00	27,386,000,000.00
Cash paid for repayment of debts		20,184,480,800.00	13,936,428,700.00
Cash paid for redemption of bonds		2,819,107,000.00	6,506,065,000.00
Cash paid for distribution of dividends or profits or for
interest expenses		2,320,564,952.43	2,072,375,032.17
Subtotal of cash outflows from financing activities		25,324,152,752.43	22,514,868,732.17
Net cash flows from financing activities		13,517,454,247.57	4,871,131,267.83
IV. Net increase in cash and cash equivalents	7	12,627,156,537.66	6,006,167,671.38
Add: Cash and cash equivalents at the beginning of the
period	7	8,577,069,332.94	6,440,358,384.99
V. Cash and cash equivalents at the end of the period	7	21,204,225,870.60	12,446,526,056.37

The accompanying notes form an integral part of these financial statements

BBMG CORPORATION	67
INTERIM REPORT 2020

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

I. BASIC INFORMATION

BBMG Corporation (hereinafter referred to as the "Company" or "BBMG Group") is a joint stock company with limited liability incorporated in Beijing, the People's Republic of China and was established on 22 December 2005. The Renminbi-denominated ordinary shares (A shares) and H shares of the Company are listed on the Shanghai Stock Exchange ("Shanghai Stock Exchange") and The Stock Exchange of Hong Kong Limited, respectively. The Company's headquarters is located at No. 36, North Third Ring East Road, Dongcheng District, Beijing.

The principal business activities of the Company and its subsidiaries (collectively, the "Group") includes: manufacture and sale of cement and building materials, construction and decoration, trade and logistics, tourism services, real estate development, property investment and management.

The Company's parent and ultimate holding company is BBMG Assets Management Co., Ltd. (北京金隅資產經營管理有限責任公司) (formerly named as "BBMG Group Company Limited", hereinafter referred to as "BBMG Assets Company"), a company established in the People's Republic of China, originally. On 11 November 2016, State-owned Assets Supervision and Administration Commission of the People's Government of Beijing Municipality agreed the gratuitous transfer of 100% shares of the Company held by BBMG Assets Company to Beijing SCOM Center (hereinafter referred to as "BSCOMC"). On 29 December 2016, the transfer registration formalities for the gratuitous transfer of the A shares of the Company were completed, after which, BSCOMC directly held 4,797,357,572 state-owned shares of the Company, representing 44.93% of the total share capital of the Company, and became the controlling shareholder of the Company.

These financial statements were approved by a resolution of the board of directors of the Company on 19 August 2020.

The consolidation scope of consolidated financial statements was determined on the basis of control. Please refer to note VI for changes during the Year.

II. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS

The financial statements are prepared in accordance with the "Accounting Standards for Business Enterprises- Basic Standards" issued by the Ministry of Finance and the specific accounting standards, application guidelines, interpretations and other relevant regulations (collectively referred to as "Accounting Standards for Business Enterprises") subsequently issued and revised.

The financial statements are presented on a going concern basis.

Except for certain financial instruments and investment properties, the financial statements have been prepared under the historical cost convention. The prices of disposal groups held for sale shall be the lower of the book value and the net amount of fair value less disposal expenses. If the assets are impaired, corresponding provisions for impairment shall be made according to relevant provisions.

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

III. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES

The specific accounting policies and accounting estimates have been prepared by the Group based on actual production and operation characteristics, as mainly embodied in the provision for bad debt of accounts receivable, inventory valuation methods, the depreciation of fixed assets, revenue recognition, the recognition and allocation of development costs on properties under construction, etc.

1. Statement of Compliance with Accounting Standards for Business Enterprises

The financial statements are in compliance with the requirements of Accounting Standards for Business Enterprises, and truly and completely reflect the financial position of the Company and the Group as at 30 June 2020 and the results of operations and cash flow for the six months ended 30 June 2020.

2. Accounting period

The accounting year for the Group is from 1 January to 31 December of each Western calendar year. The accounting period for this report is from 1 January to 30 June 2020.

3. Functional currency

The Company's reporting and presentation currency is Renminbi ("RMB"). Unless otherwise stated, the unit of the currency is RMB yuan.

The subsidiaries, joint ventures and associates of the Group may determine their own functional currencies based on the specific economic environments in their place of business. In the preparation of financial statements, their functional currencies shall be translated into RMB.

4. Business combinations

Business combinations are classified into business combinations under common control and business combinations not under common control.

Business combinations under common control

A business combination under common control is a business combination in which all of the combining entities are ultimately controlled by the same party or parties both before and after the combination, and that control is not transitory. For a business combination under common control, the party that, on the combination date, obtains control of another entity participating in the combination is the acquiring party, while that other entity participating in the combination is a party being acquired. The combination date is the date on which the acquiring party effectively obtains control of the party being acquired.

BBMG CORPORATION	69
INTERIM REPORT 2020

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

III. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES (continued)

4. Business combinations (continued)

Business combinations under common control (continued)

Assets and liabilities (including the goodwill arising from acquisition of the party being acquired by the ultimate controlling party) that are obtained by the acquirer in a business combination under common control shall be subject to relevant accounting treatment on the basis of their carrying amounts in the financial statements of the ultimate controlling party at the combination date. The difference between the carrying amount of the net assets obtained and the carrying amount of the consideration paid for the combination (or the aggregate face value of shares issued as consideration) shall be adjusted against share premium under capital reserve and the balance of capital reserve transferred in under the old accounting system. If the capital reserve is not sufficient to absorb the difference, any excess shall be adjusted against retained earnings.

Business combinations not under common control

A business combination not under common control is a business combination in which the combining entities are not ultimately controlled by the same party or parties both before and after the combination. For a business combination not under common control, the party that, on the acquisition date, obtains control of another entity participating in the combination is the acquirer, while that other entity participating in the combination is the acquiree. Acquisition date is the date on which the acquirer effectively obtains control of the acquiree.

The acquiree's identifiable assets, liabilities and contingent liabilities acquired in a business combination not under common control are measured at their fair values on the acquisition date.

Where the aggregate of the fair value of the consideration paid (or the fair value of the equity securities issued) and any fair value of the acquirer's previously held equity interest exceeds the acquirer's interest in the fair value of the acquiree's identifiable net assets acquired, the difference shall be recognised as goodwill. Goodwill is subsequently measured at cost less any accumulated impairment losses. Where the aggregate of the fair value of the consideration paid (or the fair value of the equity securities issued) and any fair value of the acquirer's previously held equity interest is less than the acquirer's interest in the fair value of the acquiree's identifiable net assets acquired, reassessment of the measurement of these items is conducted first, if the sum of the fair value of this consideration and other items mentioned above is still lower than the acquirer's interest in the fair value of the acquiree's identifiable net assets acquired, the difference is recognised in profit or loss for the current period.

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

III. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES (continued)

4. Business combinations (continued)

Business combinations not under common control (continued)

For a business combination not under common control achieved in stages, the long-term equity investments in the acquiree before the acquisition date will be remeasured at fair value on the acquisition date. The difference between the fair value and the carrying amount is recognised as investment income for the current period; previously held long-term equity investments in the acquiree involving other comprehensive income under the equity method will be subject to accounting treatment on the same basis as direct disposal of underlying assets or liabilities by the investee, and other changes in shareholders' equity will be reclassified as profit or loss for the period in which the acquisition date falls, except for net profit or loss, other comprehensive income and profit distribution. For the other equity instruments investment of the acquired party held before the acquisition date, change in fair value of the equity instrument accrued in other comprehensive income before the acquisition date is transferred to retained earnings.

5. Consolidated financial statements

The consolidation scope of consolidated financial statements is determined on the basis of control, including the financial statements of the Company and all of its subsidiaries. A subsidiary is an entity (including an enterprise, a separable part of an investee, a structural entity controlled by the Company, etc.) that is controlled by the Company.

In preparing consolidated financial statements, subsidiaries adopt the same accounting period and accounting policies as those of the Company. All assets, liabilities, interests, income, fees and cash flows resulting from intra-group transactions are eliminated on consolidation in full.

Where the amount of losses for the current period attributed to the minority shareholders of a subsidiary exceeds the minority shareholders' portion of the opening balance of shareholders' equity of the subsidiary, the excess amount is allocated against minority interests.

For subsidiaries acquired through a business combination not under common control, the operating results and cash flows of the acquiree are included in the consolidated financial statements from the date on which the Group obtains control and will continue to be consolidated until the date that such control ceases. In preparing consolidated financial statements, adjustments shall be made to the subsidiaries' financial statements based on the fair values of the identifiable assets, liabilities and contingent liabilities at the acquisition date.

BBMG CORPORATION	71
INTERIM REPORT 2020

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

III. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES (continued)

5. Consolidated financial statements (continued)

For subsidiaries acquired through a business combination under common control, the operating results and cash flows of the acquiree are included in the consolidated financial statements from the beginning of the combination period. In preparing consolidated financial statements, adjustments shall be made to related items of prior year's financial statements, as if the reporting entities after the combination had existed from the date when the combining entities first came under control of the ultimate controlling party.

The Group reassesses whether or not it controls an investee if facts or circumstances indicate that there are changes to one or more elements of control.

A change in minority interests, without a loss of control, is accounted for as an equity transaction.

6. Classification of joint arrangements and joint operation

Joint arrangements are divided into joint operation and joint venture. Joint operation refers to a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets and obligations of the liabilities relating to the arrangement. Joint venture refers to a joint arrangement whereby the parties that have joint control of the arrangement only have rights to the net assets of the arrangement.

7. Cash and cash equivalents

Cash comprises the Group's cash on hand and deposits that can be readily withdrawn on demand for payment purposes. Cash equivalents are short-term, highly liquid investments held by the Group that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

III. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES (continued)

8. Foreign currency transactions and translation of financial statements prepared in foreign currencies

The Group translates the amounts of foreign currency transactions occurred into its functional currency.

Foreign currency transactions are recorded, on initial recognition, in their functional currencies by translating the foreign currency amounts at the spot exchange rates at the transaction dates. At the balance sheet date, foreign currency monetary items are translated using the spot exchange rates at the balance sheet date. All the resulting exchange differences are taken to profit or loss, except for those relating to foreign currency borrowings specifically for acquisition and construction of assets qualified for capitalisation, which are capitalised in accordance with the principle of capitalisation of borrowing costs. The non-monetary foreign currency items are designated as part of the hedge of the Group's net investment of a foreign operation are recognised in other comprehensive income until the net investment is disposed of, at which the cumulative amount is reclassified to the profit or loss for the current period. Non-monetary foreign currency items measured at historical cost shall still be translated at the spot exchange rates prevailing on the transaction dates, while the amounts denominated in the functional currencies do not change. Non-monetary foreign currency items measured at fair value are translated at the spot exchange rates prevailing on the date on which the fair values are determined. The resulting exchange differences are recognised in profit or loss or as other comprehensive income for the current period, depending on the nature of the non-monetary item.

For foreign operations, the Group translates their functional currency amounts into Renminbi in preparing the financial statements as follows: asset and liability items in the balance sheet are translated using the spot exchange rates at the balance sheet date, and equity items other than "retained earnings" are translated using the spot exchange rates on the transaction dates; revenue and expense items in the income statement are translated using the weighted average exchange rate for the period during which the transactions occur. The resulting exchange differences are recognised as other comprehensive income. On disposal of a foreign operation, the component of other comprehensive income relating to that particular foreign operation is transferred to profit or loss in the period during which the disposal occurs. If the disposal only involves a portion of a particular foreign operation, the calculations will be made on a pro-rata basis.

Foreign currency cash flows and the cash flows of foreign subsidiaries are translated using the average exchange rate for the period during which the cash flows occur. The effect of exchange rate changes on cash is separately presented as an adjustment item in the statement of cash flows.

BBMG CORPORATION	73
INTERIM REPORT 2020

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

III. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES (continued)

9. Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Recognition and derecognition of financial instruments

The Group recognises a financial asset or a financial liability when it becomes a party to the contractual provisions of a financial instrument.

The Group derecognises and writes off a financial asset (or part of a financial asset, or part of a group of similar financial assets) from its account and balance sheet when the following conditions are met:

(1) the rights to receive cash flows from the asset have expired;

(2) the Group has transferred its rights to receive cash flows from the asset, or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a "pass-through" arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

If the underlying obligation of a financial liability has been discharged or cancelled or has expired, the financial liability is derecognised. If an existing financial liability is replaced by the same creditor with a new financial liability that has substantially different terms, or if the terms of an existing financial liability are substantially revised, such replacement or revision is accounted for as the derecognition of the original liability and the recognition of a new liability, and the resulting difference is recognised in profit or loss for the current period.

Regular way purchases or sales of financial assets are recognised and derecognised on the trade date. Regular way purchases or sales of financial assets mean that the financial assets are received or delivered under the terms of a contract within a period established by regulations or conventions in the marketplace. Trade date is the date that the Group commits to purchase or sell the asset.

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

III. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES (continued)

9. Financial instruments (continued)

Classification and measurement of financial assets

According to the Group's corporate business model for managing financial assets and the contractual cash flow characteristics of the financial assets, the Group's financial assets are, on initial recognition, classified into the following categories: financial assets at fair value through profit or loss, financial assets at amortised cost, financial assets at fair value through other comprehensive income. Financial assets are measured at fair value on initial recognition. However, if the accounts receivable or bills receivable arising from sales of goods or provision of services do not include significant financing components or does not consider financing components not exceeding one year, they shall be initially recognised at the transaction price.

In the case of financial assets at fair value through profit or loss, relevant transaction costs are directly charged to profit and loss for the current period; transaction costs relating to financial assets of other categories are included in the amounts initially recognised.

The subsequent measurement of financial assets depends on their classification as follows:

Financial assets at amortised cost

Financial assets are classified as financial assets measured at amortised cost if the financial assets meet the following conditions: the objective of the Group's business model for managing the financial assets is to collect contractual cash flows; the contractual terms of the financial assets requires that the cash flows giving rise on specified dates represent payments of principal and interest on the principal amount outstanding. For such financial assets, the effective interest method is used for recognizing interest income. The gains or losses arising from derecognition, amendment or impairment are recognized in profit or loss for the current period.

Debt instruments investment at fair value through other comprehensive income

Financial assets are classified as financial assets at fair value through other comprehensive income if the financial assets meet the following conditions: the financial assets are held within a business model whose the objective is achieved by collect contractual cash flows and selling; the contractual terms of the financial assets requires that the cash flows giving rise on specified dates represent payments of principal and interest on the principal amount outstanding. For such financial assets, the effective interest method is used for recognizing interest income. Changes in fair value are included in other comprehensive income except for interest income, impairment loss, and exchange differences which are be recognised as profit or loss for the current period. On derecognition of financial assets, gains and losses accumulated in other comprehensive income are reclassified to profit or loss for the current period.

BBMG CORPORATION	75
INTERIM REPORT 2020

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

III. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES (continued)

9. Financial instruments (continued)

Classification and measurement of financial assets (continued)

Equity instruments investment at fair value through other comprehensive income

The Group irrevocably elects to designate its certain equity instrument investments not held for trading as financial assets at fair value through other comprehensive income, and only recognise dividends (except for dividend income clearly recovered as part of the investment cost) in profit or loss for the current period. Subsequent changes in fair values are included in other comprehensive income, and no provision for impairment is required. On derecognition of financial assets, gains and losses previously accumulated in other comprehensive income are reclassified to retained earnings.

Financial assets at fair value through profit or loss

Except for the above-mentioned financial assets at amortised cost and financial assets at fair value through other comprehensive income, the Group has classified the remaining financial assets as financial assets at fair value through profit or loss. Such financial assets are subsequently measured at fair value, except for hedge accounting, where all changes in fair value recognised in profit or loss.

Classification and measurement of financial liabilities

The Group's financial liabilities are, on initial recognition, classified into financial liabilities at fair value through profit or loss, other financial liabilities. For financial liabilities at fair value through profit or loss, relevant transaction costs are directly charged to profit or loss for the current period, and transaction costs relating to other financial liabilities are included in the initial amounts recognised.

The subsequent measurement of financial liabilities depends on its classification as follows:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading (including derivatives that are financial liabilities) and those designated upon initial recognition at fair value through profit or loss. Financial liability held for trading (including derivatives that are financial liabilities) are subsequently measured at fair value, except for hedge accounting, where all changes in fair value are recognised in profit or loss for the current period. For financial liabilities designated as measured at fair value through profit or loss, subsequent measurements are made at fair value. Changes in fair value caused by changes in the Group's own credit risk are recognised in other comprehensive income, while other changes in fair value are recognised in profit or loss for the current period. Unless changes in fair value caused by changes in the Group's own credit risk recognised in other comprehensive income may result in or expand accounting mismatches in profit or loss, the Group shall recognise all changes in fair value (including the amount of impact of changes in its own credit risk) in profit or loss for the current period.

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

III. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES (continued)

9. Financial instruments (continued)

Classification and measurement of financial liabilities (continued)

Other financial liabilities

Such kinds of financial liabilities are subsequently measured at amortised cost by using the effective interest rate method.

Impairment of financial assets

On the basis of expected credit losses, the Group performs the impairment treatment on financial assets measured at amortised cost, debt instruments investments at fair value through other comprehensive income, lease receivables, contract assets, and financial guarantee contract and recognizes the loss provision.

For lease receivables, amount receivables and contractual assets, the Group uses a simplified measurement method to measure loss provision based on the amount of expected credit losses equivalent to the entire duration of the life.

In addition to the financial assets and financial guarantee contract mentioned above that use the simplified measurement method, the Group assesses whether its credit risk has increased significantly since the initial recognition on each balance sheet date. If the credit risk has not increased significantly since the initial recognition, it is at the first stage, and the Group measures the loss provision based on the amount of expected credit loss equivalent to the next 12 months and calculates interest income based on book balance and effective interest rate; if the credit risk has increased significantly since the initial recognition but credit loss has not occurred, it is at the second stage, and the Group measures loss provision based on the amount of expected credit losses equivalent to the entire duration of the life and calculates interest income based on book balance and effective interest rate; if credit loss has occurred since initial recognition, it is at the third stage, and the Group measures loss provision based on the amount of expected credit losses equivalent to the entire duration of the life and calculates interest income based on amortized cost and effective interest rate. For financial instruments that only have low credit risk at the balance sheet date, the Group assumes that their credit risks have not increased significantly since initial recognition.

The Group assesses expected credit loss of financial instruments individually and in group. After considering the credit risk characteristics of difference customers, the Group assesses the expected credit loss of financial instruments measured at amortized cost based on age combinations.

Please refer to Note VIII. 3 for the Group's criteria for determining significant increase in credit risk, definition of financial assets that have been credit-impaired, and assumption for measurement of expected credit loss.

When the Group no longer reasonably expects to be able to fully or partially recover the contractual cash flows of financial assets, the Group directly writes down the carrying amount of the financial assets.

BBMG CORPORATION	77
INTERIM REPORT 2020

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

III. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES (continued)

9. Financial instruments (continued)

Offset of financial instruments

Financial assets and financial liabilities are offset and the net amount is presented in the balance sheet to the extent that there is a currently enforceable legal right to offset the recognised amounts and that there is an intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.

Financial guarantee contract

Financial guarantee contracts are contracts that require the issuer to make specified payments to reimburse the contract holder for a loss the holder incurs because a specified debtor fails to make payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are measured at fair value on initial recognition. Subsequent to initial recognition, financial guarantee contracts that are not designated as financial liabilities at FVTPL are measured at the higher of the amount of the provision for the expected credit loss determined at the balance sheet date and the amount initially recognised less cumulative amortisation recognised in accordance with the principles of revenue recognition.

Derivative financial instruments

The Group uses derivative financial instruments, such as commodity forward contracts, to hedge exchange rate risk, commodity price risk and interest rate risk, respectively. Derivative financial instruments are initially measured at fair value at the date when the derivative contracts are entered into and are subsequently measured at their fair values. Derivative financial instruments with a positive fair value are recognised as an asset, and that with a negative fair value is recognised as a liability.

Other than hedge accounting, gains or losses arising from changes in the fair value of derivatives are directly recognised in profit or loss for the current period.

Transfers of financial assets

If the Group transfers substantially all the risks and rewards of ownership of the financial asset, the Group derecognises the financial asset; if the Group retains substantially all the risks and rewards of ownership of the financial asset, the Group does not derecognise the financial asset.

If the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset, it accounts for the transactions as follows: if the Group has not retained control, it derecognises the financial asset and recognises any resulting assets or liabilities; if the Group has retained control, it continues to recognise the financial asset to the extent of its continuing involvement in the transferred financial asset and recognises an associated liability.

Continuing involvement that takes the form of a financial guarantee over the transferred financial asset is recognised at the lower of the carrying amount of the financial asset and the amount of financial guarantee. The amount of financial guarantee refers to the maximum amount of consideration that the Group could be required to repay.

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

III. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES (continued)

10. Inventories

Inventories include raw materials, work in progress, finished goods, goods in stock, turnover materials, contract performance cost, properties under development and completed properties held for sale.

Inventories are initially carried at cost. Except for properties under development and completed properties held for sale, cost of inventories comprises all costs of purchase, costs of conversion and other costs. The cost of inventories also includes gains or losses arising from purchase meeting the criteria of cash flow hedging transferred from other comprehensive income. The actual cost of inventories transferred out is determined by using the weighted average method. Turnover materials include low value consumables and packing materials. Low value consumables and packing materials are amortised by using the immediate write-off method.

Costs of properties under development and completed properties held for sale consist of land acquisition cost, construction cost, interests capitalised and other direct and indirect development expenses. Cost of properties under development is transferred to cost of completed properties held for sale upon completion of development. Within the construction cost, public ancillary facilities represent government- approved public ancillary projects, i.e. roads. The relevant costs are recognised under the properties under development, and are accounted for and allotted by cost object and cost item. Land use rights for development purpose are classified as part of properties under development.

The Group adopts a perpetual inventory system.

At the balance sheet date, inventories are stated at the lower of cost and net realisable value. If the cost of inventories is higher than the net realisable value, a provision for decline in value of inventories is recognised in profit or loss for the current period. If factors that previously resulted in the provision for decline in value of inventories no longer exist and result in the net realisable value being higher than their carrying amount, the amount of the write-down is reversed to the extent of the amount of the previous provision for the inventories and is recognised in profit or loss for the current period.

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs to completion and the estimated expenses and the related taxes necessary to make the sale. The provision for decline in value is made on an individual basis, provided that for inventories with large quantity and lower unit cost, the provision for decline in value is made on a category basis. For inventories related to a series of products manufactured and sold in the same area, and of which the final use or purpose is identical or similar, and if it is difficult to measure them by separating them from other items, the provision for decline in value of inventories are made on a combination basis.

BBMG CORPORATION	79
INTERIM REPORT 2020

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

III. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES (continued)

11. Non-current assets or disposal groups held for sale

A non-current asset or disposal group is classified as held for sale when its carrying amount will be recovered principally through a sale transaction rather than through continuous use. Non-current assets or disposal groups are classified as held for sale only when the following conditions are satisfied: according to the practice of disposing this type of assets or disposal groups in similar transactions, the non-current asset or disposal group is available for immediate sale in its present condition; the sale will likely occur as the enterprise has made a resolution in respect of a disposal plan and obtained a firm purchase commitment, and the sale is expected to be completed within one year (and approval has been obtained by the enterprise where approval of the sale is required from relevant competent authorities or regulatory bodies in accordance with relevant regulations). If sale of any investment in a subsidiary will result in the loss of control over the respective subsidiary, whether or not any part of the equity investments is retained after the sale, the investment in subsidiary is classified as held for sale in the respective financial statements, and all assets and liabilities of the subsidiary shall be classified as held for sale in the consolidated financial statements.

For a non-current asset or disposal group classified as held for sale (other than financial assets, deferred income tax assets and investment properties measured at fair value), its carrying amount is written down to its fair value less costs to sell if its carrying amount is higher than its fair value less costs to sell. The reduced amount is recognised as asset impairment loss and charged to current profit or loss, with provision made for the impairment of the held-for-sale assets. No depreciation or amortisation is provided for a non-current asset in the non-current assets or disposal groups held for sale.

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

III. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES (continued)

12. Long-term equity investments

Long-term equity investments include equity investments in subsidiaries, joint ventures and associates.

A long-term equity investment is initially measured at its initial investment cost on acquisition. For a business combination involving entities under common control, the initial investment cost of the long- term equity investment is the carrying amount of the absorbing party's share of the owner's equity of the party being absorbed on the consolidated financial statements of the ultimate controller. The difference between the initial investment cost and the carrying amount of the consideration paid for the combination shall be adjusted against capital reserve (where the capital reserve is not sufficient to absorb the difference, any excess shall be adjusted against retained earnings). Other comprehensive income prior to the date of the merger is accounted for on the same basis as that used to account for direct disposal of such assets or liabilities by the investee, and shareholders' equity recognised as a result of changes in other shareholders' equity of the investee other than net profit or loss, other comprehensive income and profit distribution is transferred to profit or loss for the current period upon such disposal, of which the investment which remains long-term equity investment upon the disposal is transferred in proportion, and the investment which is converted into financial instruments upon the disposal is transferred in full. The initial investment cost of the long-term equity investment is the cost of acquisition for a business combination not under common control (for a business combination not under common control achieved in stages, the initial investment cost is measured at the carrying amount of the equity investments in the acquiree before the acquisition date plus the additional investment cost incurred on the acquisition date). The cost of combination includes the assets transferred and the liabilities incurred or assumed by the acquirer, and the fair value of equity securities issued. Other comprehensive income held prior to the date of the acquisition and recognised using the equity method is accounted for on the same basis as that used to account for direct disposal of such assets or liabilities by the investee, and shareholders' equity recognised as a result of changes in other shareholders' equity of the investee other than net profit or loss, other comprehensive income and profit distribution is transferred to profit or loss for the current period upon such disposal, of which the investment which remains long-term equity investment upon the disposal is transferred in proportion, and the investment which is converted into other equity instruments investments upon the disposal is transferred in full. Any change in accumulated fair value of the equity investment held prior to the date of the acquisition included in other comprehensive income as financial instruments are transferred to retained earnings in full when the cost method is adopted. For a long-term equity investment acquired other than through a business combination, the initial investment cost is determined as follows: (i) if acquired by paying cash, the initial investment cost is the actual purchase price paid and those costs, taxes and other necessary expenditures directly attributable to the acquisition of the long- term equity investment; (ii) if acquired by the issue of equity securities, the initial investment cost is the fair value of the securities issued; and (iii) if acquired by exchange of non-monetary assets, the initial investment cost is determined in accordance with Accounting Standards for Business Enterprises No. 7 - Exchange of Non-Monetary Assets.

BBMG CORPORATION	81
INTERIM REPORT 2020

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

III. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES (continued)

12. Long-term equity investments (continued)

For a long-term equity investment where the Company can exercise control over the investee, the long- term equity investment is accounted for using the cost method in the Company's separate financial statements. Control refers to having the power over the investee, the entitlement to variable returns through the participation in the relevant activities of the investee, and the ability to affect the amount of returns by using its power over the investee.

Under the cost method, the long-term equity investment is measured at its initial investment cost. If investment is increased or withdrawn, the cost of long-term equity investment shall be adjusted. Cash dividends or profit distributions declared by the investee are recognised as investment income for the current period.

The equity method is adopted when the Group holds joint control, or exercises significant influence on the investee. Joint control is the relevant agreed sharing of control over an arrangement, and relevant activities of such arrangement shall be decided upon the unanimous consent of the parties sharing control. Significant influence is the power to participate in decision making of the financial and operating policies of the investee, but without the power to control or jointly control with other parties the formulation of those policies.

Under the equity method, where the initial investment cost of a long-term equity investment exceeds the investing enterprise's interest in the fair values of the investee's identifiable net assets at the acquisition date, long-term equity investment is measured at the initial investment cost. Where the initial investment cost is less than the investing enterprise's interest in the fair values of the investee's identifiable net assets at the acquisition date, the difference is charged to profit or loss for the current period, and the cost of the long-term equity investment is adjusted accordingly.

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

III. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES (continued)

12. Long-term equity investments (continued)

Under the equity method, the Group recognises, upon acquisition of the long-term equity investment, its share of the net profits or losses and other comprehensive income made by the investee as investment income or losses and other comprehensive income respectively, and adjusts the carrying amount of the investment accordingly. The Group recognises its share of the investee's net profits or losses after making appropriate adjustments to the investee's net profits or losses, except for those from dispensing or selling businesses constituted by assets, based on the fair value of the investee's identifiable assets at the acquisition date, using the Group's accounting policies and periods, and eliminating the portion of the profits or losses arising from internal transactions with its associates and joint ventures, attributable to the investing party according to its entitled ratio (but impairment losses for assets arising from internal transactions shall be recognised in full). The carrying amount of the investment is reduced based on the Group's share of any profit distributions or cash dividends declared by the investee. The Group's share of net losses of the investee is recognised to the extent the carrying amount of the investment together with any long-term interests that in substance form part of its net investment in the investee is reduced to zero, except that the Group has incurred obligations to assume additional losses. The Group adjusts the carrying amount of the long-term equity investment for any changes in shareholders' equity of the investee (other than net profit or loss, other comprehensive income and profit distributions) and includes the corresponding adjustments in the shareholders' equity.

On disposal of a long-term investment, the difference between the carrying amount of the investment and the sales proceeds actually received is recognised in profit or loss for the current period. For long- term equity investments accounted for using the equity method, where the equity method is no longer adopted, the relevant other comprehensive income previously accounted for using the equity method is accounted for on the same basis as that used to account for direct disposal of such assets or liabilities by the investee, and shareholders' equity recognised as a result of changes in other shareholders' equity of the investee other than net profit or loss, other comprehensive income and profit distribution is transferred to profit or loss in full for the current period; where the equity method is still adopted, the relevant other comprehensive income previously accounted for using the equity method is accounted for on the same basis as that used to account for direct disposal of such assets or liabilities by the investee and transferred to profit or loss in proportion for the current period, and shareholders' equity recognised as a result of changes in other shareholders' equity of the investee other than net profit or loss, other comprehensive income and profit distribution is transferred to profit or loss in corresponding proportion for the current period.

BBMG CORPORATION	83
INTERIM REPORT 2020

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

III. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES (continued)

13. Investment properties

Investment properties are held to earn rentals or for capital appreciation or both. Investment properties include land use right that is leased out, land use right held for transfer upon capital appreciation, and building that is leased out. The Group's investment properties are held for long term purposes and are leased to earn rentals.

An investment property is measured initially at cost. Subsequent costs incurred for an investment property are included in its cost only when the economic benefits associated with the asset will probably flow in and the cost can be measured reliably. Otherwise, subsequent costs are recognised in profit or loss for the period during which they are incurred.

(1) The investment properties are located in places where the property markets are active.

The Group's current investment properties, most of which are commercial properties at developed commercial districts, are primarily located at core districts of Beijing and Tianjin where the property markets are relatively active. The Group is able to obtain market price and other related information of properties of the same category or similar nature. It is practicable for the Group to adopt the fair value model for subsequent measurement of the investment properties.

The Group has engaged a valuer with relevant qualifications to make valuation on the fair value of the investment properties of the Group using the income method and market method. The result of such valuation is used as the fair value of the investment properties of the Group.

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

III. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES (continued)

14. Fixed assets

A fixed asset is recognised only when the economic benefits associated with the asset will probably flow to the Group and the cost of the asset can be measured reliably. Subsequent expenditures incurred for a fixed asset that meet the recognition criteria shall be included in its cost, and the carrying amount of the component of the fixed asset that is replaced shall be derecognised. Otherwise, such expenditures shall be recognised in profit or loss for the period during which they are incurred.

Fixed assets are initially measured at cost and the effect of any expected costs of abandoning the assets is considered. The cost of a purchased fixed asset comprises the purchase price, relevant taxes and any directly attributable costs for bringing the asset to working condition for its intended use.

Except for those fixed assets formed by using production safety fees accrued, depreciation of fixed assets is calculated using the straight-line method. The useful lives, estimated net residual values and annual depreciation rates of fixed assets are as follows:

			Annual
		Estimated net	depreciation rate
	Useful life	residual value	(%)

Buildings	20-40 years	5%	2.38-4.75
Machinery and equipment	15 years	5%	6.33
Transportation equipment	6-10 years	5%	9.50-15.83
Office and other equipment	5 years	5%	19.00

Different depreciation rates are applied where the components of fixed assets have different useful lives or provide the entity with economic benefits in different patterns.

The Group reviews the useful life and estimated net residual value of a fixed asset and the depreciation method applied at least once at the end of each financial year, and makes adjustments if necessary.

15. Construction in progress

The cost of construction in progress is determined according to the actual costs incurred for the construction, including all necessary construction costs incurred during the construction period, borrowing costs that shall be capitalised before the construction gets ready for its intended use and other relevant expenses.

Construction in progress is transferred to fixed assets when the asset is ready for its intended use.

BBMG CORPORATION	85
INTERIM REPORT 2020

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

III. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES (continued)

16. Borrowing costs

Borrowing costs are interest and other costs incurred by the Group in connection with the borrowing. Borrowing costs include interest, amortisation of discounts or premiums related to borrowings, ancillary costs incurred in connection with the arrangement of borrowings, and exchange differences arising from foreign currency borrowings.

The borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised. The amounts of other borrowing costs incurred are recognised in profit or loss for the period in which they are incurred. Qualifying assets are assets (fixed assets, investment properties, inventories, etc.) that necessarily take a substantial period of time for acquisition, construction or production to get ready for their intended use or sale.

The capitalisation of borrowing costs commences only when all of the following conditions are satisfied:

(1) expenditures for the asset are being incurred;

(2) borrowing costs are being incurred;

(3) activities relating to the acquisition, construction or production of the asset that are necessary to prepare the asset for its intended use or sale have commenced.

Capitalisation of borrowing costs ceases when the qualifying asset being acquired, constructed or produced becomes ready for its intended use or sale. Any borrowing costs subsequently incurred are recognised in profit or loss for the period during which they are incurred.

During the capitalisation period, the amount of interest to be capitalised for each accounting period shall be determined as follows:

(1) where funds are borrowed for a specific purpose, the amount of interest to be capitalised is the actual interest expense incurred on that borrowing for the period less any temporary bank interest earned from depositing the borrowed funds or any investment income.

(2) where funds are borrowed for a general purpose, the amount of interest to be capitalised on such borrowings is determined by multiplying a weighted average interest rate of the funds borrowed for a general purpose by the weighted average of the excess amounts of accumulated expenditure on the asset over and above the amounts of specific-purpose borrowings.

Capitalisation of borrowing costs is suspended during periods in which the acquisition, construction or production of a qualifying asset is interrupted by activities other than those necessary to prepare the asset for its intended use or sale, when the interruption is for a continuous period of more than three months. Borrowing costs incurred during these periods are recognised in profit or loss for the period during which they are incurred until the acquisition, construction or production is resumed.

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

III. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES (continued)

17. Intangible assets

An intangible asset shall be recognised only when it is probable that the economic benefits associated with the asset will flow to the Group and the cost of the asset can be measured reliably. Intangible assets are measured initially at cost. However, intangible assets acquired in a business combination which is not under common control and with a fair value that can be measured reliably are recognized separately as intangible assets and measured at fair value.

The useful life of an intangible asset is determined according to the period over which it is estimated to generate economic benefits for the Group. An intangible asset is regarded as having an indefinite useful life when the period over which the asset is estimated to generate economic benefits for the Group is uncertain.

The intangible assets of the Group consist of land use rights, mining rights, trademarks and software use rights.

Land use rights that are purchased by the Group for purposes other than real estate development are generally accounted for as intangible assets. For buildings such as plants that are developed and constructed by the Group, the relevant land use rights and buildings are accounted for as intangible assets and fixed assets, respectively. Payments for the land and buildings purchased are allocated between the land use rights and the buildings; if they cannot be reasonably allocated, all of the land use rights and buildings are accounted for as fixed assets. Land use rights of the Group are amortised on the straight-line basis over the term stipulated on the certificates of land use rights obtained by the Group.

Costs of mining rights include costs incurred to obtain the mining licence and estimated mine restoration cost. Amortisation is calculated using the production method based on the relevant recoverable mining reserves.

An intangible asset with a finite useful life is amortised using the straight-line method over its useful life. For an intangible asset with a finite useful life, the Group reviews the useful life and amortization method at least once at the end of each financial year and makes adjustment if necessary.

Intangible assets with indefinite use life (mainly trademarks) are tested for impairment each year, irrespective of whether there is any indication that the asset may be impaired. An intangible asset with indefinite useful life shall not be amortised, for which the useful life is reassessed in each accounting period. If there is evidence indicating that the useful life of that intangible asset becomes finite, it shall be accounted for by applying the accounting policy for intangible assets with a finite useful life.

BBMG CORPORATION	87
INTERIM REPORT 2020

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

III. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES (continued)

17. Intangible assets (continued)

The Group classifies expenditure for an internal research and development project into expenditure in the research phase and expenditure in the development phase. Expenditure in the research phase is recognised in profit or loss for the period in which it is incurred. Expenditure in the development phase is capitalised when the Group can demonstrate all of the following: (i) the technical feasibility of completing the intangible asset so that it will be available for use or sale; (ii) the intention to complete the intangible asset and use or sell it; (iii) how the intangible asset will generate probable future economic benefits, for which, among other things, the Group can demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset; (iv) the availability of adequate technical, financial and other resources to complete the development and the ability to use or sell the intangible asset; and (v) the expenditure attributable to the intangible asset during its development can be measured reliably. Expenditure in the development phase that does not meet the above criteria is recognised in profit or loss for the period in which it is incurred.

18. Impairment of assets

The Group determines the impairment of assets other than inventories, contract assets and assets relating to contract assets, investment properties measured under the fair value model, deferred income tax assets, financial assets and assets held for sale using the following methods:

The Group assesses at the balance sheet date whether there is any indication that an asset may be impaired. If any indication exists that an asset may be impaired, the Group estimates the recoverable amount of the asset and performs test for impairment. Goodwill arising from a business combination and intangible assets with indefinite useful life are tested for impairment at least once at the end of each year, irrespective of whether there is any indication that the asset may be impaired. Intangible assets that have not been ready for intended use are tested for impairment each year.

The recoverable amount of an asset is the higher of its fair value less costs to sell and the present value of the future cash flows estimated to be derived from the asset. The Group estimates the recoverable amount on an individual basis. If it is not possible to estimate the recoverable amount of the individual asset, the Group determines the recoverable amount of the asset group to which the asset belongs. Identification of an asset group is based on whether major cash inflows generated by the asset group are largely independent of the cash inflows from other assets or asset groups.

When the recoverable amount of an asset or an asset group is less than its carrying amount, the carrying amount is reduced to the recoverable amount. The reduction in carrying amount is treated as impairment loss and recognised in profit or loss for the current period. A provision for impairment loss of the asset is recognised accordingly.

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

III. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES (continued)

18. Impairment of assets (continued)

For the purpose of goodwill impairment testing, the carrying amount of goodwill acquired in a business combination is allocated from the acquisition date on a reasonable basis to each of the related asset groups; if it is not possible to allocate to the related asset groups, it is allocated to each of the related set of asset groups. Each of the related asset group or set of asset groups is an asset group or set of asset groups that is able to benefit from the synergy of the business combination and shall not be larger than a reportable segment determined by the Group.

In testing an asset group or a set of asset groups to which goodwill has been allocated for impairment test, if there is any indication of impairment, the Group first tests the asset group or set of asset groups excluding the amount of goodwill allocated for impairment, i.e., it determines and compare the recoverable amount with the related carrying amount and recognise any impairment loss. After that, the Group tests the asset group or set of asset groups including goodwill for impairment, the carrying amount (including the portion of the carrying amount of goodwill allocated) of the related asset group or set of asset groups is compared to its recoverable amount. If the recoverable amount of the asset group or set of asset groups is lower than its carrying amount, the amount of the impairment loss is first reduced by the carrying amount of the goodwill allocated to the asset group or set of asset groups, and then by the carrying amount of other assets (other than the goodwill) within the asset group or set of asset groups, pro rata based on the carrying amount of each asset.

Once the above impairment loss is recognised, it cannot be reversed in subsequent accounting periods.

19. Long-term deferred expenditures

Long-term deferred expenditures represent expenditures incurred but should be recognised as expenses over more than one year in the current year and subsequent periods, including costs of leasehold improvements, renovation expenses and stripping cost of mines. A long-term deferred expenditure is amortised using the straight-line method according to the period over which it is estimated to generate economic benefits for the Group.

BBMG CORPORATION	89
INTERIM REPORT 2020

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

III. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES (continued)

20. Employee benefits

Employee benefits are all forms of considerations or compensations given by the Group in exchange for services rendered by employees or for the termination of employment. Employee benefits include short-term benefits, post-employment benefits, termination benefits and other long-term employee benefits. The benefits provided by the Group to the spouses, children and dependents of employees as well as families and other beneficiaries of decreased employees are also classified as employee benefits.

Short-term benefits

In the accounting period in which services are rendered by employees, the actual amount of short- term benefits incurred is recognised as liabilities and charged to profit or loss for the current period or cost of underlying assets.

Post-employment benefits (the defined contribution plan)

The employees of the Group participate in the pension insurance and unemployment insurance scheme administered by the local government and also enterprise annuity, and the corresponding expenses are included in the costs of underlying assets when incurred or recognised in profit or loss for the current period.

Post-employment benefits (the defined benefit plan)

The Group operates various defined benefit pension plans, which includes providing certain eligible retirees of the Company and its subsidiaries with supplementary allowance benefits. No capital has been injected into the plan. The benefits cost under the defined benefit plan is calculated using the projected accumulative benefit unit method.

The items to be remeasured as a result of the defined benefit pension plan, which include actuarial gains or losses, movements arising from assets cap (net of amounts included in net interest of liabilities in the defined benefit plan) and return on plan assets (net of amounts included in net interest of liabilities in the defined benefit plan), are all immediately recognised in the balance sheet, and are included in shareholders' equity through other comprehensive income during the period in which they are incurred. They will not be reversed to profit or loss in subsequent periods.

The past service costs are recognised as expenses for the current period when the defined benefit plan is modified or when the Group recognises relevant restructuring costs or termination benefits, whichever occurs earlier.

Net interest is calculated by multiplying net liabilities or net assets of the defined benefit plan by the discount rate. The Group recognises changes in net liabilities of the defined benefit plan under finance expenses in the income statement. Service cost includes current service cost, past service cost and gains or losses on settlement; net interest includes interest income on plan assets, interest expenses on plan obligations and interest arising from assets cap.

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

III. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES (continued)

20. Employee benefits (continued)

Termination benefits

Where the Group provides termination benefits to employees, the employee benefits liabilities arising from termination benefits are recognised and accounted for in profit or loss for the current period at the earlier of the following dates: when the Group cannot unilaterally withdraw the offer of these termination benefits as a result of termination of employment plan or downsizing proposal, and when the Group recognises restructuring costs involving the payment of termination benefits.

21. Accrued liabilities

Except for contingent consideration and contingent liability assumed in a business combination not under common control, the Group recognises an obligation related to a contingency as an accrued liability when all of the following conditions are satisfied:

(1) the obligation is a present obligation of the Group;

(2) it is probable that an outflow of economic benefits from the Group will be required to settle the obligation;

(3) the amount of the obligation can be measured reliably.

Accrued liabilities are initially measured at the best estimate of the expenditure required to settle the related present obligation, with comprehensive consideration of factors such as the risks, uncertainty and time value of money relating to a contingency. The carrying amount of accrued liabilities is reviewed at each balance sheet date. If there is clear evidence that the carrying amount does not reflect the current best estimate, the carrying amount is adjusted to the best estimate.

22. Other equity instruments

Perpetual bonds issued by the Group are classified as equity instrument if there is no expiration date or if the Group has the right to extend for unlimited number of times, to defer the payment of the coupon interest on the perpetual bonds, or has no contractual obligation to pay cash or other financial assets after the expiration thereof.

For financial instruments classified as equity instruments (such as perpetual bonds), its issue, repurchase, sale or cancellation are treated by the Group as changes in equity, with related transaction costs deducted from equity. The Group's distribution to holders of equity instruments are treated as a distribution of profits.

BBMG CORPORATION	91
INTERIM REPORT 2020

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

III. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES (continued)

23. Revenue from contracts with customers

When the Group has fulfilled its performance obligations of the contract, the revenue is recognized when the customers take control of the relevant goods or services. Taking control of the relevant goods or services means being able to dominate the use of the goods or the provision of the services and obtain almost all of the economic benefits from them.

Sales contracts of goods

Sales contracts of goods between the Group and its customers generally include the performance obligation of transferred goods only. Generally, upon taking account of all the following factors, namely, receipt of the current payment rights of goods, transfer of major risks and rewards in relation to the ownership of goods, transfer of the legal ownership of goods, transfer of physical assets of goods and receipt of delivery of such goods by the customers, the Group recognises this as revenue when control of goods have been transferred to the buyer.

Revenue from the sales of completed properties is recognised when the risks and rewards of property ownership have been transferred to the buyer, i.e., when the properties has been completed and delivered to the buyer pursuant to the sale agreement and the collection of the consideration determined under the purchase and sales contract can be assured reasonably. According to the contract, the instalments of sold properties and proceeds from pre-sale collected prior to the revenue recognition will be presented in the contractual liabilities or other non-current liabilities under the balance sheet based on liquidity.

Construction Contracts

Construction contracts between the Group and its customers generally include performance obligations in relation to civil installation, maintenance, etc. As the customer can control the assets under construction in the course of the Group's performance, the Group considers such revenue as performance obligations fulfilled during a specific period and recognises the revenue based on the progress of performance, unless the progress of performance cannot be reasonably determined. The Group determined the progress of performance in relation to the provision of services using input method. Where progress of performance cannot be reasonably determined, the Group determined its revenue based on the incurred amount of costs to the extent that they are expected to be compensated, until the progress of performance is able to be determined reasonably.

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

III. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES (continued)

23. Revenue from contracts with customers (continued)

Contracts for provision of services

Contracts for provision of services between the Group and its customers generally include performance obligations in relation to decoration and design, property management, etc. As the customers will receive and consume economic benefits arising from the fulfilment of performance obligations as stipulated in the contracts by the Group. The Group considers such revenue as performance obligations fulfilled during a specific period and recognises the revenue based on the progress of performance, unless the progress of performance cannot be reasonably determined. The Group determined the progress of performance in relation to the provision of services using input method or output method. Where progress of performance cannot be reasonably determined, the Group determined its revenue based on the incurred amount of costs to the extent that they are expected to be compensated, until the progress of performance is able to be determined reasonably.

Significant financing component

For the existence of significant financing components in the contract, the Group determines the transaction price based on the amount payable by cash when assuming that the client takes the control of the goods or services, and uses the discount rate of the nominal amount of the contract consideration to the discounted price of the goods sold or services rendered. The difference between the determined transaction price and the consideration amount of the contractual commitment is amortized using the effective interest method during the contract period.

Where the interval between the customer's taking control of the goods or services and the customer's payment for goods or services is expected to be less than one year, the Group did not consider the significant financing components existing in the contract.

Warranty obligations

The Group provides quality assurance for the goods sold pursuant to contractual agreement and laws and regulations. The Group performs accounting treatments in accordance with Note III. 21 with a view to providing guarantee to the customers that the goods sold meet the established quality standards. In addition to providing guarantee to the customers that the goods sold meet the established quality standards, providing the customers with a separate quality assurance for services is regarded as a separate performance obligation by the Group. Based on the relative proportion of the individual selling prices of providing quality assurance for goods and services, part of the transaction price is allocated to quality assurance of services and revenue is recognized when the customers take control of the services. In assessing whether quality assurance is provided as a separate service other than providing guarantee to the customers that the goods sold meet the established quality standards; the Group considers factors such as whether the quality assurance is a statutory requirement, the term of quality assurance and nature of the Group's commitment to perform its obligations.

BBMG CORPORATION	93
INTERIM REPORT 2020

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

III. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES (continued)

23. Revenue from contracts with customers (continued)

Variable consideration

There exist arrangements under certain business contracts between the Group and its customers where the amount of settlement is calculated in the manner as agreed in the contract upon completion of the projects, which results in a variable consideration. The Group determines the best estimate amount of the variable consideration based on the expected value or the most likely amount, but the transaction price including the variable consideration does not exceed the amount that the accumulated and recognized revenue is likely not to be significantly reversed when the relevant uncertainty is eliminated.

Main responsible person/agent

Upon receiving commodities held for trading or taking control over other assets from third parties, the Group is entitled to solely determine the price of goods held for trading when transferring such goods to the customers. As such, the Group would be able to control such goods before it transfers the goods held for trading to its customers. Therefore, the Group is the main responsible person and recognizes the revenue according to the total consideration received or receivable. Otherwise, the Group is an agent and recognizes the revenue according to the amount of the commission or handling fee expected to receive. The amount shall be netted according to the total amount received or receivable, after deducting the price payable to other related parties, or determined according to the established commission amount or proportion thereof.

24. Contract assets and contract liabilities

The Group presented contract assets or contract liabilities on the balance sheet based on the correlation between the performance of obligations and customer payments. The Group offsets contract assets against contract liabilities under the same contract and presents the net amount.

Contract assets

Contract asset refers to the right to consideration in exchange for goods or services that the Group has transferred to a customer when that right is conditioned on something other than the passage of time.

Details of the Group's determination method and accounting treatment for expected credit losses of contract assets are set forth in Note V. 9.

Contract liabilities

Contract liabilities present the obligation to transfer goods or services to a customer for consideration received or receivable from the customer, such as the amount received by the enterprise before the promised goods or services are transfer to the customers.

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

III. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES (continued)

25. Assets related to contractual cost

The Group's assets related to contractual costs include costs incurred to secure a contract and costs incurred in performing a contract, which are presented in inventory, other current assets and other non-current assets, respectively, based on their liquidity.

The Group recognises as the additional costs incurred to secure a contract as an asset if it expects to recover the costs, unless the amortization period of the asset is less than one year.

If the costs incurred in performing a contract are not within the scope of inventories, fixed assets, intangible assets or other relevant standards, the Group recognises the costs incurred in performing a contract as an asset if those costs meet all of the following criteria:

(1) the costs relate directly to an existing contract or to an anticipated contract, including direct labour, direct materials, production overheads (or similar costs), costs that are explicitly chargeable to the customer and other costs that are incurred only by the reason of the contract;

(2) costs generate resources of the corporate that will be used in satisfying performance obligations in the future;

(3) the costs are expected to be recovered.

Assets related to contract costs are amortised on a basis that is consistent with the recognition of the revenue to which the assets relate and recognised in profit or loss for the current period.

The Group makes impairment provisions and recognises an impairment loss on asset to the extent that the carrying amount of an asset related to contract costs exceeds:

(1) The remaining amount of consideration that the corporation expects to receive in exchange for the goods or services to which the assets relates; less

(2) the estimated costs to be incurred for the exchange of the related goods or services.

The Group shall make a reversal of the provision for asset impairment previously made and recognise it in profit or loss for the current period when the impairment conditions have changed resulting in the difference between (1) and (2) aforementioned higher than the carrying amount of the asset. However, the carrying amount of the asset upon reversal shall not exceed the carrying amount that would have been determined on the date of reversal if no impairment provisions had been made previously.

BBMG CORPORATION	95
INTERIM REPORT 2020

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

III. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES (continued)

26. Government grants

Government grants are recognised when all attaching conditions can be complied with and the grant can be received. If a government grant is in the form of a transfer of a monetary asset, it is measured at the amount received or receivable. If a government grant is in the form of a transfer of a non- monetary asset, it is measured at fair value; if fair value cannot be reliably determined, it is measured at a nominal amount.

Government grants shall be recognised as government grants related to assets where long- term assets are built or otherwise developed in accordance with the requirements of government documents. If there are no specific requirements of government documents, judgment shall be exercised based on the basic conditions required for the grants. Government grants shall be recognised as government grants related to assets where the building or otherwise development of long-term assets is considered as the basic condition; otherwise, they shall be recognised as government grants related to income.

A government grant related to income is accounted for as follows: (a) if the grant is a compensation for related cost expenses or losses to be incurred in subsequent periods, the grant is recognised as deferred income, and recognised in profit or loss or offset against relevant costs over the periods in which the related costs expenses for losses are recognised; and (b) if the grant is a compensation for related cost expenses or losses already incurred, it is immediately recognized in profit or loss or offset against relevant cost for the current period.

A government grant related to an asset shall be offset against the carrying amount of relevant assets or recognised as deferred income, and recognised in profit or loss in instalments over the useful life of the related asset in a reasonable and systematic way, provided that a government grant measured at a nominal amount is recognised immediately in profit or loss for the current period. If the related assets are disposed of, transferred, scrapped and damaged before the end of the useful life, the relevant remaining deferred income unallocated shall be transferred to the profit or loss for the period when the assets are disposed of.

27. Income tax

Income tax comprises current and deferred tax. Income tax is recognised as an income tax expense or income in profit or loss for the current period, or otherwise recognised directly in shareholders' equity if it arises from goodwill on a business combination or relates to a transaction or event which is recognised directly in shareholders' equity.

The Group measures a current tax liability or asset arising from the current and prior periods based on the amount of income tax estimated to be paid by the Group or returned by taxation authority calculated in accordance with the requirements of related tax laws.

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

III. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES (continued)

27. Income tax (continued)

Deferred tax is recognised under the balance sheet liability method based on the temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts, and temporary differences between the tax bases and carrying amounts in respect of items not recognized as assets and liabilities, but the tax bases being determinable under tax law.

Deferred tax liabilities are recognised for all taxable temporary differences, except:

(1) where the taxable temporary differences arise from the initial recognition of goodwill, or the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither accounting profit nor taxable profit or deductible tax loss.

(2) in respect of taxable temporary differences associated with investments in subsidiaries, joint ventures and associates, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not be reversed in the foreseeable future.

A deferred tax asset is recognised for deductible temporary differences, and unused deductible tax losses and tax credits that can be carried forward, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, deductible tax losses and tax credits can be utilised, except:

(1) where the deductible temporary difference arises from a transaction that is not a business combination and, at the time of the transaction, affects neither accounting profit nor taxable profit or deductible tax loss.

(2) in respect of the deductible temporary differences associated with investments in subsidiaries, joint ventures and associates, a deferred tax asset is only recognised to the extent that it is probable that the temporary differences will be reversed in the foreseeable future and taxable profit will be available against which the deductible temporary differences can be utilised in the future.

At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates that are estimated to apply to the period when the asset is recovered or the liability is settled according to the requirements of tax laws. The measurement of deferred tax assets and deferred tax liabilities reflects the tax consequences that would follow from the manner in which the Group expects, at the balance sheet date, to recover the assets or settle the liabilities.

BBMG CORPORATION	97
INTERIM REPORT 2020

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

III. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES (continued)

27. Income tax (continued)

The carrying amount of deferred tax assets is reviewed at the balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available in future periods to allow the deferred tax assets to be utilised. Unrecognised deferred tax assets are reassessed at the balance sheet date and are recognised to the extent that it has become probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be recovered.

When the following conditions are satisfied, deferred tax assets and deferred tax liabilities are shown as net amounts after set-off: there is a legally enforceable right to settle current tax assets and current tax liabilities on a net basis; deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities, but the involved taxable entities intended to settle the current tax assets and current tax liabilities on a net basis or to simultaneously acquire assets and repay debts during each future period in which significant amounts of deferred tax assets and deferred tax liabilities are expected to be reversed.

28. Right-of-use assets

The right-of-use assets of the Group mainly comprise land, buildings, machinery and equipment, transportation equipment and others.

On the commencement date of the lease term, the Group recognises its right to use the lease assets over the lease term as the right-of-use asset, including: the initial measurement amount of the lease liability; the amount of the lease payment on or before the commencement date of the lease term, deducting the relevant amount of the lease incentives already enjoyed if there is a lease incentive; the initial direct expenses incurred by the lessee; and the cost expected to by incurred by lessee for dismantling and removing the lease assets, restoring the site where the lease assets are located or restoring the lease assets to the state agreed upon under the lease terms. The Group subsequently depreciated the right-of-use assets using the straight-line method. If it is reasonable to determine that the ownership of the lease assets can be obtained at the expiration of the lease term, the Group will provide for depreciation during the remaining useful life of the lease assets. If it is not reasonable to determine that the ownership of the lease assets can be obtained at the expiration of the lease term, the Group will provide for depreciation during the shorter of the lease term and the remaining useful life of the lease assets.

When the Group re-measures the lease liabilities based on the present value of the changed lease payment amount and adjusts the carrying amounts of the right-of-use assets accordingly. If the carrying amounts of the right-of-use assets have been reduced to zero but the lease liabilities still need to be further reduced, the Group accounts for the remaining amount in the current profit or loss.

Notes to Unaudited Interim Financial Statements

For the six months ended 30 June 2020

RMB

III. MAJOR ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES FOR BUSINESS ENTERPRISES (continued)

29. Lease liabilities

On the commencement date of the lease term, the Group recognises the present value of the outstanding lease payments as lease liabilities, except for short-term leases and low-value asset leases. In calculating the present value of the lease payments, the Group uses the implicit interest rate in the lease as the discount rate; if the implicit interest rate of the lease cannot be determined, the lessee's incremental borrowing rate is used as the discount rate. The Group calculates the interest expense of the lease liabilities for each period of the lease term based on the fixed periodic interest rate and recognises it in profit or loss for the current period, unless otherwise stipulated to be recognized in related asset costs. The variable lease payments that are not included in the measurement of the lease liabilities are recognised in profit or loss when incurred, unless otherwise stipulated to be recognised in related asset costs.

After the commencement date of the lease term, when the substantially fixed payment amount changes, the expected amount payable of the guarantee residual value changes, the index or ratio used to determine the lease payment amount changes, or the assessment results or actual exercise of the purchase option, renewal option or termination option change, the Group re-measures the lease liabilities based on the present value of the changed lease payments.

30. Leases

On the contract start date, the Group assesses whether the contract is a lease or contains a lease. If one of the parties to the contract transfers the right to control the use of one or more identified assets for a certain period of time in exchange for consideration, the contract is a lease or contains a lease. In order to determine whether the contract has transferred the right to control the use of the identified assets within a certain period of time, the Group assesses whether the customers in the contract are entitled to almost all of the economic benefits arising from the use of the identified assets during the period of use and have the right to direct the use of identified assets during this period of use.

Identification of separate leases

Where the contract contains multiple separate leases, the Group will split the contract and separate the leases for accounting treatment. The right to use the identified asset constitutes a separate lease in the contract if the following conditions are met:

(1) The lessee can profit from using the asset alone or in conjunction with other resources that are readily available; and

(2) The asset does not have a high degree of dependency or a high degree of association with other assets in the contract.

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BBMG Corporation published this content on 10 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 September 2020 08:39:11 UTC

Market Closed - Hong Kong S.E. Other stock markets 04:09:13 2024-04-23 am EDT			5-day change	1st Jan Change
0.61 ^HKD	-1.61%		0.00%	-16.44%

Apr. 02	BBMG's 2023 Profit Plunges 98% Despite Higher Revenue	MT
Apr. 01	BBMG Corporation Proposes Final Ordinary Dividend for the Year Ended 31 December 2023	CI

BBMG's 2023 Profit Plunges 98% Despite Higher Revenue	Apr. 02	MT
BBMG Corporation Proposes Final Ordinary Dividend for the Year Ended 31 December 2023	Apr. 01	CI
BBMG Corporation Reports Earnings Results for the Full Year Ended December 31, 2023	Mar. 31	CI
BBMG Corporation Provides Group Earnings Guidance for the Ended 31 December 2023	Jan. 30	CI
BBMG Corporation completed the acquisition of 10% stake in Easyhome New Retail Group Corporation Limited from Beijing Easyhome Investment Holding Group Co., Ltd.	Dec. 27	CI
BBMG Corporation Appoints Hao Liwei as Non-Executive Director	Dec. 18	CI
BBMG Acquires Land Parcel in Shanghai’s Taopu Science and Technology Smart City For 2.3 Million Yuan	Dec. 08	MT
BBMG Acquires Real Estate Project in China’s Tangshan City for 442.5 Million Yuan	Dec. 04	MT
BBMG to Buy 10% Stake in Easyhome New Retail Group	Nov. 19	MT
BBMG Corporation entered into an agreement to acquire 10% stake in Easyhome New Retail Group Corporation Limited from Beijing Easyhome Investment Holding Group Co., Ltd. for CNY 2.2 billion.	Nov. 17	CI
Bbmg Corporation Announces Resignation of Mr. Wang Zhaojia as Non-Executive Director and Member of the Audit Committee	23-10-30	CI
BBMG Corporation Reports Earnings Results for the Nine Months Ended September 30, 2023	23-10-27	CI
Bbmg Corporation Approves Executive Changes	23-09-27	CI
BBMG’s Profit Down 78% in H1	23-09-08	MT
BBMG Corporation Appoints Gu Yu as General Manager	23-08-24	CI
BBMG Corporation Reports Earnings Results for the Half Year Ended June 30, 2023	23-08-24	CI
MSCI to Add 29 Stocks to Chinese Indices Including JAC Motors, BAIC BluePark, Yutong Bus	23-08-14	MT
BBMG Expects Over 67% Drop in H1 Profit	23-07-14	MT
BBMG Corporation Provides Group Earnings Guidance for the Six Months Ended 30 June 2023	23-07-14	CI
Bbmg Corporation Announces Executive Changes	23-06-14	CI
Bbmg Corporation Updates Final Ordinary Dividend for the Year Ended 31 December 2022, Payable on 10 July 2023	23-05-12	CI
BBMG Corporation Appoints Ms. Yu Yuehua as A Supervisor to Supervisory Board	23-05-11	CI
Announcement of Resolutions of the 2022 Annual General Meeting of Shareholders	23-05-11	CI
BBMG Swings to Loss in Q1	23-04-28	MT
BBMG Corporation Reports Earnings Results for the First Quarter Ended March 31, 2023	23-04-27	CI

	1st Jan change	Capi.
BBMG CORPORATION	-16.44%	2.34B
CRH PLC	+11.41%	53.19B
MARTIN MARIETTA MATERIALS, INC.	+19.44%	36.06B
VULCAN MATERIALS COMPANY	+14.26%	33.65B
ULTRATECH CEMENT LIMITED	-9.23%	33.07B
GRASIM INDUSTRIES LIMITED	+11.02%	18.56B
AMBUJA CEMENTS	+22.17%	18.21B
HEIDELBERG MATERIALS AG	+15.81%	17.89B
CEMEX, S.A.B. DE C.V.	+6.20%	11.57B
SUMMIT MATERIALS, INC.	+2.60%	6.81B

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