Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

中國交通建設股份有限公司

CHINA COMMUNICATIONS CONSTRUCTION COMPANY LIMITED

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

(Stock Code: 1800)

ANNOUNCEMENT

CONNECTED TRANSACTION

FORMATION OF A PROJECT COMPANY

The Board announces that, on 30 November 2020, CCCC Second Harbour, China Urban and Rural, OriginWater, China Railway 18th Bureau, Changjiang New Town Construction Investment, CITIC Construction and Xinheng Yintong entered into the Shareholders' Contract for the joint investment in the Infrastructure PPP Project of Starting Area of Changjiang New Town in Wuhan. Pursuant to the Shareholders' Contract, the registered capital of the Project Company is approximately RMB1,596 million, of which approximately RMB984 million, RMB324 million, RMB192 million, RMB48 million, RMB16 million, RMB16 million and RMB16 million will be contributed by Xinheng Yintong, CCCC Second Harbour, CITIC Construction, Changjiang New Town Construction Investment, China Urban and Rural, OriginWater and China Railway 18th Bureau, respectively, accounting for 61.67%, 20.33%, 12.00%, 3.00%, 1.00%, 1.00% and 1.00% of the total registered capital of the Project Company, respectively.

As at the date of this announcement, China Urban and Rural and OriginWater are subsidiaries of CCCG, the controlling Shareholder of the Company which holds approximately 57.99% interests in the issued ordinary shares of the Company. China Urban and Rural and OriginWater are thus connected persons of the Company under the Hong Kong Listing Rules. As such, the formation of the Project Company under the Shareholders' Contract constitutes a connected transaction of the Company under Chapter 14A of the Hong Kong Listing Rules.

As the highest applicable percentage ratio in respect of the formation of the Project Company under the Shareholders' Contract exceeds 0.1% but is less than 5%, the Shareholders' Contract and the transaction contemplated thereunder is subject to the announcement requirement but is exempted from the independent Shareholders' approval requirement under the Hong Kong Listing Rules.

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BACKGROUND

The Board announces that, in accordance with the resolution passed at the fortieth meeting of the fourth session of the Board, on 30 November 2020, CCCC Second Harbour, China Urban and Rural, OriginWater, China Railway 18th Bureau, Changjiang New Town Construction Investment, CITIC Construction and Xinheng Yintong entered into the Shareholders' Contract for the joint investment in the Infrastructure PPP Project of Starting Area of Changjiang New Town in Wuhan. Pursuant to the Shareholders' Contract, the registered capital of the Project Company is approximately RMB1,596 million, of which approximately RMB984 million, RMB324 million, RMB192 million, RMB48 million, RMB16 million, RMB16 million and RMB16 million will be contributed by Xinheng Yintong, CCCC Second Harbour, CITIC Construction, Changjiang New Town Construction Investment, China Urban and Rural, OriginWater and China Railway 18th Bureau, respectively, accounting for 61.67%, 20.33%, 12.00%, 3.00%, 1.00%, 1.00% and 1.00% of the total registered capital of the Project Company, respectively.

SHAREHOLDERS' CONTRACT

The principal terms of the Shareholders' Contract are set out below:

Date:

30 November 2020

Parties:

(1)

CCCC Second Harbour;

(2)

China Urban and Rural;

(3)

OriginWater;

(4)

China Railway 18th Bureau;

(5)

Changjiang New Town Construction Investment;

(6)

CITIC Construction; and

(7)

Xinheng Yintong

Amount

of Capital

Registered capital:

Shareholder

Contribution

Percentage

RMB' million

%

Xinheng Yintong

984

61.67

CCCC Second Harbour

324

20.33

CITIC Construction

192

12.00

Changjiang New Town

Construction Investment

48

3.00

China Urban and Rural

16

1.00

OriginWater

16

1.00

China Railway 18th Bureau

16

1.00

Total

1,596

100.00

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The amount of capital contributions under the Shareholders'

Contract was determined after arm's length negotiations

among the parties after taking into account various factors,

including the nature of business, the demand for working

capital and future development plans of the Project Company.

Payment of the capital

The parties shall pay their respective amount of capital

contribution:

contributions in cash in installments in proportion to their

respective shareholding in the Project Company:

(1) the initial capital contribution is 10% of the total

registered capital of the Project Company, which shall

be paid within 30 days from the date of formation of the

Project Company;

(2) the second capital contribution is 50% of the total

registered capital of the Project Company, which shall

be paid within 60 days from the date of formation of the

Project Company; and

(3) the remaining capital contributions shall be paid within

18 months after the formation of the Project Company

according to the project progress and financing needs.

Scope of business:

The scope of business of the Project Company is expected

to include investment, construction and operation of urban

municipal roads, bridges, tunnels, utility tunnels, recycled

water plants and related ancillary works and facilities;

municipal public facility management services, planning

management services, engineering management services,

consulting services, city outlook management services, urban

sanitary management services; urban greening management

services; advertising operation; domestic trade of goods

permitted by laws and regulations (subject to registration

with the industrial and commercial authorities).

Board of directors:

The board of directors of the Project Company comprises

seven directors. CCCC Second Harbour, Changjiang New

Town Construction Investment, CITIC Construction and

Xinheng Yintong are entitled to appoint one director, one

director, one director and three directors, respectively. The

Project Company will elect one employee representative

director through the employee representative congress, the

employees' meeting or other democratic methods.

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REASONS FOR AND BENEFITS OF THE TRANSACTION

The purpose of formation of the Project Company is for joint investment in the Infrastructure

  1. Project of Starting Area of Changjiang New Town in Wuhan, which mainly involves the construction and operation of the sewage treatment plant. The project is in line with the national industrial policies, the Group's development direction of investment business and the layout of investment regions, which will help the Group to explore Changjiang New Town in Wuhan and gain a stronger foothold in the local market of Wuhan. Both of China Urban and Rural and OriginWater possess the industry's leading water treatment technology and rich experience in the operation of sewage treatment plant, the participation of which will help to promote the smooth implementation of the project and enhance the quality of the project, contributing to the achievement of the overall interests of the Company and its Shareholders as a whole.

CONFIRMATION FROM DIRECTORS

Mr. Wang Tongzhou and Mr. Liu Maoxun, being the Directors of the Company, are also the directors of CCCG, and therefore are deemed to have a material interest in the transaction contemplated under the Shareholders' Contract, and have abstained from voting on the relevant Board resolution. Save for the abovementioned Directors, none of the other Directors of the Company has or is deemed to have a material interest in the aforesaid connected transaction.

The Directors (including independent non-executive Directors), having made all reasonable and due enquiries, are of the view that the terms of the Shareholders' Contract are fair and reasonable and on normal commercial terms, and the transaction contemplated thereunder is conducted in the ordinary and usual course of business of the Company and is in the interests of the Company and its Shareholders as a whole.

IMPLICATIONS OF HONG KONG LISTING RULES

As at the date of this announcement, China Urban and Rural and OriginWater are subsidiaries of CCCG, the controlling Shareholder of the Company which holds approximately 57.99% interests in the issued ordinary shares of the Company. China Urban and Rural and OriginWater are thus connected persons of the Company under the Hong Kong Listing Rules. As such, the formation of the Project Company under the Shareholders' Contract constitutes a connected transaction of the Company under Chapter 14A of the Hong Kong Listing Rules.

As the highest applicable percentage ratio in respect of the formation of the Project Company under the Shareholders' Contract exceeds 0.1% but is less than 5%, the Shareholders' Contract and the transaction contemplated thereunder is subject to the announcement requirement but is exempted from the independent Shareholders' approval requirement under the Hong Kong Listing Rules.

- 4 -

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CCCC - China Communications Construction Co. Ltd. published this content on 30 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 December 2020 14:42:04 UTC