China Energy Engineering : ANNOUNCEMENT INSIDE INFORMATION

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

CHINA ENERGY ENGINEERING CORPORATION LIMITED*

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

(Stock Code: 3996)

ANNOUNCEMENT

INSIDE INFORMATION

The announcement is made by China Energy Engineering Corporation Limited (the "Company") pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the provisions of inside information under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

Pursuant to the Rules Governing the Listing of Stocks on Shanghai Stock Exchange, China Gezhouba Group Stock Company Limited (中國葛洲壩集團股份有限公司) (the "CGGC"), a subsidiary of the

Company, published a summary of its 2020 interim report for the period ended 30 June 2020 (the "CGGC Summary Interim Report") on the website of the Shanghai Stock Exchange, a reproduction of which is enclosed to this announcement. For the avoidance of doubt, the "Company" contained in the CGGC Summary Interim Report refers to CGGC.

The CGGC Summary Interim Report set out below has been prepared in accordance with the People's Republic of China Generally Accepted Accounting Principles and has not been audited.

Shareholders of the Company and potential investors should exercise caution when dealing in the shares of the Company.

By Order of the Board

CHINA ENERGY ENGINEERING CORPORATION LIMITED*

Wang Jianping

Chairman

Beijing, the PRC

28 August 2020

As at the date of this announcement, the executive directors of the Company are Mr. Wang Jianping, Mr. Sun Hongshui and Mr. Ma Mingwei; the non-executive directors are Mr. Liu Xueshi and Mr. Si Xinbo; and the independent non-executive directors are Mr. Cheung Yuk Ming, Mr. Zhao Lixin and Mr. Cheng Niangao.

* For identification purpose only

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Stock Code: 600068

Abbreviation of Stock: CGGC

China Gezhouba Group Stock Company Limited

Summary of 2020 Interim Report

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1. IMPORTANT NOTICE
2. 1. The summary of the interim report is a simplification of the interim report. To comprehensively understand the Company's operating results, financial position and future development plans, investors shall refer to the website of the Shanghai Stock Exchange and other designated media of the China Securities Regulatory Commission to carefully read the full text of the interim report.
   2. The Board, the Supervisory Committee, the directors, supervisors and members of the senior management of the Company guarantee the authenticity, accuracy and completeness of the contents of the interim report, in which there are no false representations, misleading statements contained or material omissions, and assume the several and joint responsibilities as well.
   3. Directors absent

	Name of director
Position of director absent	absent	Reasons for absence	Name of proxy
Chairman	Chen Xiaohua	Work	Song Ling
Independent director	Weng Yingjun	Work	Su Xianglin

1. 1. The interim report was unaudited.
   2. The proposal of profit distribution or capital reserve to equity transfer for the reporting period considered by the board of directors
      The Company did not implement profit distribution or capital reserve to equity transfer in the reporting period.
2. BASIC INFORMATION OF THE COMPANY

2.1 Company Profile

Stock profile
Stock type	Listed on		Stock abbreviation		Stock code		Stock abbreviation before
								change
A share	Shanghai Stock Exchange		CGGC		600068		/
Contact persons and contact methods	Secretary to the board of directors		Securities affairs representative
Name		Lu Zhongnian		Ding Xianyun
Telephone		027-59270353				027-59270353
Office address		Gezhouba Tower,		Gezhouba Tower,
		558 Jiefang Road,		558 Jiefang Road,
		Qiaokou District, Wuhan, Hubei Province		Qiaokou District, Wuhan, Hubei Province
Email		[e-mail]		[e-mail]

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2.2 Major Financial Information of the Company

Unit: Yuan  Currency: RMB

			Increase/decrease of
			the reporting period
	End of reporting		as compared to the
	period	End of last year	end of last year (%)
Total assets	234,408,200,432.98	234,463,372,633.74	-0.02
Net assets attributable to
shareholders of the Company	53,258,778,615.19	52,534,121,768.78	1.38
			Increase/decrease of
			the reporting period
			as compared to the
	Reporting period	Corresponding period	corresponding period
	(January to June)	of last year	of last year (%)
Net cash flows from operating
activities	-1,059,621,888.13	1,738,180,005.31	-160.96
Revenue	43,479,024,108.80	49,799,314,948.23	-12.69
Net profit attributable
to shareholders of the
Company	1,159,269,744.34	2,124,056,524.74	-45.42
Net profit attributable
to shareholders of the
Company after deduction
of non-recurring gains and
losses	1,147,116,490.16	2,088,728,616.80	-45.08
Weighted average return on			Decreased by 4.08
net assets (%)	2.327	6.406	percentage points
Basic earnings per share
(RMB per share)	0.159	0.387	-58.91
Diluted earnings per share
(RMB per share)	0.159	0.387	-58.91

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1. In the first half of 2020, the operating income of the Company was RMB43.479 billion, representing a period-on-period decrease of 12.69%. Net profit attributable to shareholders of the Company was RMB1.159 billion in the first half of 2020, representing a period-on-period decrease of 45.42%, which was mainly due to the decline in income from construction business and highway business as well as the decrease in profit affected by the epidemic.
2. The relative great change in net cash flows from operating activities in the first half of 2020 was mainly due to the period-on-period decrease in collection of sales receivables from real estate business and highway tolls affected by the epidemic.
3. The change in earnings per share was mainly due to the decrease in the net profit attributable to shareholders of the Company.
4. According to the Accounting Standards for Business Enterprises, when calculating the earnings per share, the net profit attributable to the shareholders of the Company shall be deducted from the interest on the perpetual bonds of other equity instruments. The interest for perpetual bonds from January to June 2020 is RMB428,550,000.00, and the interest for perpetual bonds from January to June 2019 was RMB341,925,000.00.

Description of major accounting data and financial indicators of the Company

• Applicable  3 Not Applicable

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2.3 Shareholdings of Top Ten Shareholders

					Unit: share
Total number of shareholders as at the end of the reporting period (household)				247,285
Total number of preference shareholders with voting rights restored as at the
end of the reporting period (household)						N/A
	Shareholding of top ten shareholders
				Number of
				shares held
	Nature of	Shareholding	Total number of	subject to
	selling	Number of shares pledged
Name of shareholder	shareholder	ratio (%)	shares held	restrictions	or frozen
China Gezhouba Group Company Limited	State-owned	42.34	1,949,448,239	0	Nil	0
	legal person
China Securities Finance Corporation	State-owned	3.00	138,343,785	0	Nil	0
Limited	legal person
Portfolio 103 of The National Social	Others	1.65	75,999,105	0	Nil	0
Security Fund
Central Huijin Asset Management Co.,	State-owned	1.54	70,785,800	0	Nil	0
Ltd.	legal person
Hong Kong Securities Clearing Company	Others	1.47	67,743,027	0	Nil	0
Limited
Portfolio 106 of The National Social	Others	1.31	60,126,699	0	Nil	0
Security Fund
Yan Xiaohu	Domestic	0.73	33,510,234	0	Nil	0
	natural
	person
China Merchants Bank Co., Ltd.-	Others	0.63	28,993,785	0	Nil	0
Bosera CSI State-Owned Enterprises
Innovation-driven Index ETF Security
Investment Fund (博時中證央企創新驅
動交易型開放式指數證券投資基金)
Agricultural Bank of China Limited-	Others	0.50	22,983,810	0	Nil	0
Huaxia CSI State-Owned Enterprises
Structural Adjustment Index ETF
Security Investment Fund (華夏中證央
企結構調整交易型開放式指數證券投
資基金)
China Merchants Bank Co., Ltd. - Bosera	Others	0.48	21,995,500	0	Nil	0
CSI State-Owned Enterprises Structural
Adjustment Index ETF Security
Investment Fund（博時中證央企結構調
整交易型開放式指數證券投資基金）
Explanation on the connected relationship of the	Among the top ten shareholders, there is no connected relationship between the
shareholders and action in concert among the aforesaid	first shareholder and the other shareholders. The Company is also not aware of
shareholders		any connected relationship or acting-in-concert relationship among the other
		shareholders.
Explanation on preference shareholders whose voting rights	N/A
have resumed and the number of their shareholdings

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2.4 Total number of preference shareholders and top ten preference shareholders

• Applicable  3 Not Applicable

2.5 Changes in controlling shareholder and de facto controller

• Applicable  3 Not Applicable

2.6 Undue and unpaid or overdue corporate bonds

• Applicable  □ Not Applicable

Unit: 100 million Yuan  Currency: RMB

					Outstanding
Name of bonds	Abbreviated name	Code	Issue date	Expiry date	balance of bonds	Interest rate (%)
China Gezhouba Group Stock	16 Gezhou 01	136130	19 January 2016	19 January 2021	30	3.14
Company Limited 2016 Public
Issuance of Corporate Bonds (First
Tranche)
China Gezhouba Group Stock	16 Gezhou 02	136427	4 May 2016	4 May 2021	0.206	3.27
Company Limited 2016 Public
Issuance of Corporate Bonds
(Second Tranche)
China Gezhouba Group Stock	16 Gezhou 03	136434	13 May 2016	13 May 2021	40	3.45
Company Limited 2016 Public
Issuance of Corporate Bonds
(Third Tranche)
China Gezhouba Group Stock	16 Gezhou Y2	136995	21 July 2016	-	25	3.48
Company Limited Public Issuance
of 2016 Renewable Corporate
Bonds (First Tranche)
China Gezhouba Group Stock	16 Gezhou Y4	136993	3 August 2016	-	30	3.43
Company Limited Public Issuance
of 2016 Renewable Corporate
Bonds (Second Tranche)
China Gezhouba Group Lvyuan	G18 Lvyuan 1	143822	19 September 2018	19 September 2023	12	4.74
Technology Co., Ltd. Public
Issuance of 2018 Green Corporate
Bonds (First Tranche)

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						Outstanding
Name of bonds	Abbreviated name	Code	Issue date	Expiry date	balance of bonds	Interest rate (%)
China Gezhouba Group Stock	19	Gezhou 01	155129	9 January 2019	9 January 2024	10	3.85
Company Limited Public Issuance
of 2019 House Leasing Project
Corporate Bonds (First Tranche)
China Gezhouba Group Stock	19	Gezhou 02	155223	13 March 2019	13 March 2024	15	4.1
Company Limited Public Issuance
of 2019 Corporate Bonds (First
Tranche)
China Gezhouba Group Stock	19	Gezhou 03	155370	24 April 2019	24 April 2024	15	3.95
Company Limited Public Issuance
of 2019 Corporate Bonds (Second
Tranche)
China Gezhouba Group Stock	19	Gezhou Y1	155931	17 May 2019	-	50	4.35
Company Limited Public Issuance
of 2019 Renewable Corporate
Bonds (First Tranche)

Indicators of the issuer's debt repayment ability:

• Applicable  □ Not Applicable

Major indicator	End of the reporting period	End of last year
Asset-to-liability ratio (%)	71.32	71.75
	Reporting period	Corresponding period
	(from January to June)	of last year
EBITDA interest coverage ratio	2.17	2.64
Explanations on overdue debts

• Applicable  3 Not Applicable

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III DISCUSSION AND ANALYSIS ON OPERATIONS

3.1 Discussion and Analysis on Operations

During the reporting period, the Company conscientiously implemented the spirit of the important instructions of General Secretary Xi Jinping on the overall promotion of epidemic prevention and control and economic and social development, firmly established the "people-centered" development philosophy, and adopted effective measures to actively respond to the adverse impact from the novel coronavirus pneumonia epidemic and the complex and severe international and domestic market condition, fully develop the four major business sectors of engineering construction, industrial manufacturing, investment operations and comprehensive services. Facing the epidemic, the Company has shouldered the heavy responsibility, and insisted on "focusing on epidemic prevention and control while resuming work and production" and promptly promoted stability of the Company's epidemic prevention and control, and the resumption of work and production, achieving the phased goal of "dual battle with dual victory" in epidemic prevention and control and resumption of work and production.

1. The epidemic prevention and control has achieved phased results. During the reporting period, the Company implemented the important instructions of General Secretary Xi Jinping on epidemic prevention and control, promptly initiated emergency response, established epidemic prevention and control working mechanisms, and formulated prevention and control measures. The Company has invested a total of 167,000 personnel to proactively cooperate with local governments to carry out epidemic prevention and control, and curbed the spread of the epidemic in a prompt manner. In light of the spread of the epidemic internationally, the Company has introduced 20 rules and 72 "hardcore" measures for overseas epidemic prevention and control, carried out differentiated prevention and control at different levels in different districts, as well as the epidemic prevention and control and production and operation of overseas projects under "unblocking under the epidemic", and under the premise of ensuring the safety and physical health of overseas employees, and taken multiple measures to promote the resumption of work and production.
2. Market development went against the trend. During the reporting period, the Company's newly signed contracts totaled RMB146.472 billion, accounting for 56.34% of the amount of annual planned new contracts. The Company (as the leading party of the consortium) signed the project of Xinjiang Hetian Yulong Kashi Water Conservancy Works with a total investment of approximately RMB7.9 billion. The Company and its subsidiary were responsible for construction and installation and equipment procurement of approximately RMB5.5 billion; the Company, as a member of the consortium, won the bid for Nayong to Qinglong and Liuzhi to Anlong Highway PPP Projects of Guizhou Province, of which approximately RMB8.7 billion of construction is attributable to the Company and its subsidiary could. Internationally, a number of major projects have been signed, including an EPC contract for the first phase of Indonesia's DATA DIAN Hydropower Station with a contract value of RMB11.5 billion, and an EPC framework contract for the south Keraniganj project of Dhaka in Bangladesh with a contract value of RMB14.4 billion.

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1. Various reforms were intensified. During the reporting period, the Company accelerated the modernization of corporate governance capabilities and governance systems, and established a modern corporate governance system integrating decision-making systems, large-scale supervision systems, support systems and institutional systems. The investment management system has been improved, the investment direction has been clarified, and an investment platform has been created. The business management system has been improved, and contract management, cost control, price-limiting bidding, and investment budget control have been strengthened. The account fund management system was innovated, and a financial "Sky Eye" system with full coverage, full process and immediate supervision was created. Through restructuring the system, rebuilding the team, and reshaping the value, the reform of the electromechanical supplies management system was completed, which closed loopholes and improved efficiency.
2. The business structure was continuously optimized. During the reporting period, the Company established a trading subsidiary, dedicated to building a business platform and brand of "CGGC Trading". The Company's original business structure was adjusted and upgraded to an industrial structure involving "four major construction businesses (mega power, mega construction, mega transportation and mega environmental protection)" + three major industrial manufacturing businesses (cement, civil explosion and equipment) + five major investment businesses (overseas, transportation, real estate, water affairs and cultural tourism) + two service guarantee businesses (finance and trade), forming a business layout of "two-wheel-driven contracting investment, international and domestic coordinated development, industrial manufacturing innovation and transformation, financial and trade boosting upgrade".
3. The management and control capabilities were continuously strengthened. The organizational reform of the headquarter was completed based on the "strategy + operation" management and control positioning as well as the principle of "front and back office separation, management and operation separation, execution and supervision separation", and the departments, institutions, and personnel of the headquarter were adjusted. The process system, authority system, and decision-making and approval system were reconstructed, and a new list of management issues was established. The headquarter has more precise positioning, clearer functions, more effective management and control, smoother mechanisms, and a management model that is more in line with strategic needs. The special rectification of the "headquarter's institutionalisation" issue has achieved substantial results. The audit system reform was completed, and a "centralized, unified, comprehensive, authoritative and efficient" audit supervision system was established. The working mechanism of the board of supervisors and full-time directors stationed in subsidiaries was adjusted and improved, a compliance management department to centrally manage compliance was established, and management and control capabilities in all aspects were effectively improved.

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3.2 Business by Segment

During the reporting period, the Company's business scope comprised of engineering construction, industrial manufacturing, investment operations and comprehensive services. During the reporting period, the Company recorded revenue of RMB43.479 billion, a period-on-period decrease of 12.69%, and recorded total profit of RMB2.303 billion, a period-on-period decrease of 40.21%. Net profit attributable to owners of the Company was RMB1.159 billion, a period-on-period decrease of 45.42%. As of the end of the reporting period, the Company's total assets amounted to RMB234.408 billion, a decrease of 0.02% from the beginning of the year.

Description of business by industry

1. Engineering construction business

During the reporting period, the Company's newly signed contracts totaled RMB146.472 billion, accounting for 56.34% of the annual planned new contract value. Among them: the value of newly signed domestic engineering contracts was RMB99.010 billion, accounting for approximately 67.60% of the total newly signed contract value; the value of newly signed international engineering contracts was equivalent to RMB47.462 billion, accounting for approximately 32.40% of the total newly signed contract value.

During the reporting period, the Company actively promoted epidemic prevention and control and resumption of work and production, strengthened business guidance, management services, increased resource allocation, technology optimization, compiled work outlines, and comprehensively guided the resumption of work and production, and achieved the expected recovery goal; the Company deeply implemented the national development strategy, set up six major domestic market platforms, seized major opportunities in "new infrastructure", and established a large-scale project operation mechanism romote the rapid implementation of domestic businesses; internationally, it actively promoted new international areas, new models and new markets development to increase the layout of international business.

During the reporting period, the Wudongde Hydropower Station undertaken by the Company, the world's thinnest 300-meter-classdouble-curved arch dam, was completed. The Yunnan Lancang River Miaowei Hydropower Station, Shenzhen Pumped Storage Power Station and Cambodia Sanghe Class II Hydropower Station 400MW project won the 2020 China Power Quality Project Award.

During the reporting period, the Company's engineering construction business recorded revenue of RMB26.027 billion and total profit of RMB1.107 billion.

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1. Industrial manufacturing business

The Company's industrial manufacturing business mainly includes cement production, civil explosives, environmental protection and high-end equipment manufacturing.

During the reporting period, as to the cement business, the Company rapidly promoted the extension of the industrial chain. Adhering to the strategy of stable price and volume, the Company gave full play to regional and technical advantages, kept a close eye on the market, and strengthened supply chain management, therefore, product sales rebounded in an orderly manner; it actively increased varieties and improved quality, and the self-developed special cement for immersed tube tunnels was successfully applied; 24 national patent authorizations were obtained in the first half of the year. The construction of digital mines was under steady progress, and new technologies and new equipment such as the optimization system of rotary kiln experts and air suspension centrifugal fans have begun to be piloted.

During the reporting period, as to the civil explosives business, the Company adhered to technological innovation-driven development, focused on building digital production workshops, improving smart manufacturing standards, continuously optimizing regional layout, promoting integrated service models, actively carrying out high-quality mergers and acquisitions, promoting the application of carbon dioxide blasting technology, and continuously improving the industry influence and fostering new driving forces for development. Currently, the total licensed production capacity of industrial explosives reached 384,500 tons, ranking second in China.

During the reporting period, the Company's industrial manufacturing business recorded revenue of RMB11.384 billion and total profit of RMB854 million.

1. Investment and operation business

The Company's investment and operation business mainly includes real estate, highway investment and operation, and water affairs.

During the reporting period, the Company's newly-started equity ground floor area and completed equity ground floor area of real estate business were 591,200 square meters and 271,300 square meters, respectively; it realized equity sales area of 224,900 square meters (including equity participation projects), and sales of signed contract of RMB5.821 billion.

In terms of highway operation, the Company established Gezhouba Group Transportation Investment Co., Ltd. (葛洲壩集團交通投資有限公司) to further accelerate the professional construction, promote

the integrated development of investment, financing, construction and operation of the transportation industry, and create a transportation infrastructure construction platform with complete functions, prominent main business, standardized operation and coordinated development. In the first half of the year, the total mileage of expressways under construction of the Company was approximately 920 kilometers and total operating mileage was approximately 447 kilometers.

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In terms of water affairs, the Company was responsible for operating 58 water plants, more than 1,000 kilometers of pipeline network, 33 pumping stations and 15 projects under construction in more than ten provinces and municipalities in China. The San Lorenzo Water Project in Sao Paulo, Brazil resolutely implemented the requirements for epidemic prevention and control and maintained stable operation. In the first half of the year, five upgrade and expansion projects were completed with water connection and commissioning entered the final stage; the operation of each water plant remained stable.

During the reporting period, the Company's investment and operation business recorded revenue of RMB4.697 billion and total profit of RMB505 million.

1. Integrated service business

The Company's integrated service business mainly includes finance, trading and others.

During the reporting period, the Company's integrated service business recorded revenue of RMB1.398 billion and total profit of RMB100 million.

3.3 Compared to the last accounting period, situation, reasons and influence of the changes in accounting policies, accounting estimates and accounting methods

• Applicable  3 Not Applicable

3.4 Description of the significant accounting error that retroactive adjustment or restatement for the reporting period is made and the correction of accounting error, the reason for accounting error and the impact caused by the accounting error.

□ Applicable  3 Not Applicable

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