China Energy Engineering : ANNOUNCEMENT INSIDE INFORMATION

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ʕ਷ঐ๕ܔணٰ΅Ϟࠢʮ̡

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 Listing Rules of the Shanghai Stock Exchange, China Gezhouba Group Stock Company Limited (ʕ਷໤ݲᜠණྠٰ΅Ϟࠢʮ̡) ("CGGC"), a subsidiary of the Company, published a summary of its 2020 annual report for the year ended 31 December 2020 (the "CGGC Annual Report Summary") 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 Annual Report Summary refers to CGGC.

The CGGC Annual Report Summary set out below has been prepared in accordance with the Generally Accepted Accounting Principles in the People's Republic of China and has been audited by, Zhongxinghua Certified Public Accountants LLP, the auditor of CGGC.

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*

Song Hailiang

Chairman

Beijing, the PRC

19 March 2021

As at the date of this announcement, the executive directors of the Company are Mr. Song Hailiang, Mr. Sun Hongshui and Mr. Ma Mingwei; the non-executive directors are Mr. Li Shulei, Mr. Liu Xueshi and Mr. Si Xinbo; and the independent non-executive directors are Mr. Zhao Lixin, Mr. Cheng Niangao and Dr. Ngai Wai Fung.

*

for identification purpose only

I.

IMPORTANT NOTICE

• 1 The summary of annual report is a simplification of the annual 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 annual report.

• 2 The board of directors, the board of supervisors, the directors, the supervisors and members of senior management of the Company guarantee the authenticity, accuracy and completeness of the contents of the annual report, in which there are no false representations, misleading statements contained or material omissions, and assume the several and joint responsibilities as well.

• 3 All directors of the Company attended the board meeting.

• 4 Zhongxinghua Certified Public Accountants LLP has issued a standard and unqualified audit report for the Company.

• 5 The proposal of distribution of profit for the reporting period or the transfer of capital reserve to equity considered by the board of directors

  Based on the total share capital of 4,604,777,412 shares of the Company, a cash dividend of RMB0.73 (tax included) will be distributed to all ordinary shareholders for every 10 shares, and a total of cash RMB336,148,751.08 will be distributed, and the remaining profits are carried forward to the next year. In the year, the Company will not convert the capital reserve into share capital.

II.

BASIC INFORMATION OF THE COMPANY

1

Company Profile

Stock profile
Stock type	Relevant Exchange that stock listed on	Stock abbreviation	Stock code	Stock abbreviation before change
A Share	Shanghai Stock Exchange	CGGC	600068	/

Contact person and contact methods	Secretary to the board of directors	Securities affairs representative
Name	Lu Zhongnian	Ding Xianyun
Office address	Gezhouba Tower, 558 Jiefang Road, Qiaokou District, Wuhan, Hubei Province	Gezhouba Tower, 558 Jiefang Road, Qiaokou District, Wuhan, Hubei Province
Telephone	027-59270353	027-59270353
Email	[e-mail]	[e-mail]

2

Main Businesses of the Company during the Reporting Period

During the reporting period, the Company's business scope covers engineering construction, industrial manufacturing, investment operations and comprehensive services.

(1)Engineering Construction

The Company has core competitiveness in the field of large-scale infrastructure construction. The Company has been extensively involved in the construction of electric power, transportation, municipal administration, environmental protection, water conservancy and other infrastructure, and has occupied the world's technological commanding height in the fields of river diversion and closure, damming construction, underground engineering, large-type metal structure manufacturing and installation, and large-sized unit installation. The Company actively responds to the national "Belt and Road" initiative and international production capacity cooperation, always adheres to the strategy of giving priority to international business development, and is the leader of Chinese "Going Global" enterprises and the practitioner of "Belt and Road" initiative. Relying on the advantages of global market layout and resource integration, the Company operates in more than 140 countries and regions around the world.

Engineering construction business is the core business and the main source of operating income of the Company. Among them, the main modes of domestic projects are PPP and general construction contracting, and the main modes of international projects are general construction contracting and EPC. The project types mainly involve roads, water conservancy and hydropower, housing construction, railways, municipal administration, water affairs, environmental management, urban underground complexes, ports and navigation channels, etc. The newly signed contract amount and turnover of overseas projects of the Company ranked 8th and 11th among more than 4,000 "Going Global" enterprises, respectively. The Company was appraised as "AAA Grade Enterprise in the Credit Rating Evaluation of Foreign Contracted Projects" and "A Grade Enterprise of Foreign Contracted Projects".

Given remained rigid demand for infrastructure construction in the international market, the nation actively implemented the "Belt and Road" initiative. We will further promote cooperation mechanisms between countries, such as the "High-Speed Railway Network, Highway Network, Regional Aviation Network, and Industrialization", the "Ten Major Cooperation Plans" and the "Eight Major Actions" of China-Africa cooperation, and the "17+1" of Central and Eastern European Cooperation, to help central enterprises go global. The mergers and acquisitions as well as reorganization of domestic construction enterprises have been intensified, and the industry concentration has continued to increase. The industry's business model continues to innovate, and the implementation of the general contracting model has increased. More and more construction and design companies provide customers with a package of services to meet all their needs. The Chinese government has continued to increase its policy support for strategies such as making up for shortcomings in infrastructure, alleviating poverty, and regional development. The market demand in highways, housing construction, railways, municipal administration, water conservancy and water treatment, urban underground complexes, ports and waterways is still relatively large. The new infrastructure market continued to exert strength, and the infrastructure market as a whole showed a trend of stable and rapid development.

(2)

Industrial Manufacturing

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

1.

Cement

The cement business of the Company mainly involves the production and sales of cement, clinker, commercial concrete and related products.

As one of the 60 large cement enterprises supported by government, the pilot enterprise that integrates industrialization and computerization for the promotion of energy conservation and emissions reduction, Cement Company, our subsidiary, is known as "China's granary of dams". Since its establishment, it has built a good brand image with high-quality products and services. It has repeatedly won the "Top 20 Cement Clinker Capacity in China", "Top 100 Chinese Building Materials Enterprises", "Top 10 National Cement Informatization Bench-marking Enterprises", "Demonstration Enterprise for Recycle Waste New Materials" and other titles. During the reporting period, it ranked 13th among the top 50 Chinese cement clinker production capacity in 2020, and ranked 24th among the top 50 Chinese building materials enterprises. It is the president unit of the Hubei Cement Association. It was awarded the "2020 Environmental and Socially Responsible Enterprise" by China Environmental News, and its 6 subsidiaries were selected into the National Green Mine Directory.

In recent years, the domestic cement industry has continued to deepen its supply-side structural reform with focus on quality and efficiency, striving to cut overcapacity, adjust structure, stabilize growth and improve quality. It creates a good environment for its own healthy development by strictly implementing the peak production policy and strengthening industry self-discipline. At the national level, cement companies are encouraged to promote mergers and acquisitions, to increase industry concentration, to promote green and environmental protection development, to achieve industrial environmental protection upgrades, to promote the integration of informatization and industrialization, and to accelerate the construction of smart factories. High returns of the cement industry for the last consecutive years further stimulated capital profitability and speculative impulse. A number of backward production capacity have been "revived" through the capacity replacement. The situation of overcapacity has not been fundamentally changed. Internationally, there is still potential for future market demand growth in some developing countries and regions. Driven by the "Belt and Road" initiative and the RCEP agreement, countries along the route have increased their infrastructure construction and demand for cement was strong, which provided a good international market opportunity for Chinese companies to increase overseas investment and transfer excess production capacity.

2.

Civil explosives

The civil explosives business of the Company mainly includes the production and sales of civil explosive products, construction of explosive projects, general contracting services for mining projects construction and raw materials production and equipment manufacturing of civil explosive products.

Explosive Co., Ltd. is the only enterprise unit among the deputy director units of the National Civil Explosive Standardization Management Committee. It is also a model enterprise that promotes high-quality development and supply-side reform by the Ministry of Industry and Information Technology and the Ministry of Public Security, and a demonstration enterprise in the mixed ownership reform of SASAC. Explosive Co., Ltd. is one of the few large-scale civil explosive enterprises in China that possess the qualifications not only for the production, sales and import and export of civil explosive materials, but also for the general contracting of mine construction and commercial blasting operation. With more than 20 years of development, it has formed a complete industrial chain of scientific research, production, sales, and blasting services for civilian explosives, which has extensively served many fields such as mining, energy engineering construction, infrastructure construction, urban controlled blasting and national defense construction.

With the deepening of the supply-side structural reform in the mining industry, the relationship between market supply and demand and enterprise profitability has improved significantly. The stable development of coal, steel, non-ferrous metals, gravel aggregate, cement and other industries has supported the stable development of the civil explosive industry. Infrastructure supplements has continued to stimulate the demand for the civil explosive market. Along with the upgrading transformation of civil explosive enterprises and the promotion of mergers and acquisitions and restructuring, the industry concentration has continued to increase. With blasting technology as the core, the integrated development of the production and sales of civilian explosives, blasting services, and general contracting of mines has become the main business model of the civilian explosives industry. In the future, the industry will enter a stage of adjustment and upgrade of upgrading product structure, optimizing production capacity layout, improving technology, and strengthening industrial concentration. As international commodity prices bottomed out and rebounded, global mining and infrastructure construction led to continuous growth in the demand for the civilian explosives market, and the development of the civilian explosives industry ushered in a new round of development opportunities.

3.

Environmental protection

The major scope of the Company's environmental protection businesses covers water environment treatment, treatment of sewage sludge, solid waste treatment, recycling of renewable resources, and clean energy, etc. The major operating entities are Cement Company, and Eco-Environment Company, etc.

Water environment treatment: includes the comprehensive remediation of black and odorous water treatment, sludge treatment, pipe network construction, water source protection, soil and water conservation, greening landscape, operation and maintenance, etc.

Treatment of sewage sludge: includes soil remediation, sludge solidification, solid waste treatment, etc, research and development and production of soil curing agents and sludge modifiers, environmental protection construction such as soil treatment and sludge control.

New paving materials: includes the processing, production and sales of steel slag aggregate.

Solid waste treatment: includes cement kiln co-processing business, disposal of domestic garbage, polluted soil, general industrial solid waste, etc.

Recycling of renewable resources: includes waste steel, waste paper, waste plastic, waste non-ferrous metals, waste glass, dismantling of used cars, etc.

Clean energy: mainly includes cement kiln waste heat power generation business.

According to the "13th Five-Year" National Urban Sewage Treatment and Recycling Facilities Construction Plan, in order to improve the quality of urban water environment, we will speed up the completion of shortcomings in urban sewage collection and treatment facilities. Driven by a number of policies, the demand for black and odorous water treatment and rural water environment treatment is growing rapidly. It is expected that the urban sewage treatment market space during the "14th Five-Year Plan" period will grow steadily compared with the "13th Five-Year Plan" period, and the market potential is still relatively large.

4.

High-end equipment manufacturing

The high-end equipment manufacturing business of the Company mainly includes the design, manufacture and sales of energy and environmental protection equipment including energy storage air-conditioning for construction, high-efficiency energy-saving boiler, gas (oil) internal combustion engine power generator unit, gas turbine power generator unit, large-scale compressed air energy storage system and carbon dioxide cold storage refrigeration system as well as integrated services of comprehensive solutions. The operating entity is Equipment Industrial Company.

The 13th Five-Year National Strategic Development Plan on Emerging Industry and other supporting policies raised the high-end equipment manufacturing to the national strategy. It has become a pillar industry of our national economy. The 2020 government work report clearly pointed out that it is necessary to promote the upgrading of the manufacturing industry, and the development prospects of the equipment manufacturing business industry are good. The country vigorously promotes the energy revolution, improves the energy production, supply, storage and marketing system, builds a smart energy system, and improves the capacity of new energy consumption and storage, which will bring broad market opportunities for energy equipment-related industries.

(3)

Investment Operations

The investment operations business of the Company mainly includes real estate, roads investment and operation and water affairs.

• 1. Real estate

  As one of the first 16 state-owned central enterprises approved by SASAC of the State Council to be mainly engaged in real estate, the Company has level I qualification of real estate development. The real estate business of the Company mainly involves development and operation of high-end property, which includes boutique residential, urban complex, tourism real estate and high-end office buildings, etc. The operating entity is Real Estate Company.

  As one of the pillar industries of the national economy, the economic foundation for the future healthy and stable development of the real estate industry has not changed, and the property market regulation has released stable expectations. With the continuous progress of China's urbanization, the rigid demand for urban housing will continue to increase, and the demand for improvement will also continue to be released, and the market space remains broad. Affected by the "three red lines" and other macro policies in the PRC, the concentration of the industry will be further strengthened, and the trend of market differentiation will become increasingly obvious. Residential real estate will gradually enter the post-development era, and the simultaneous lease and sale system will promote the development of the housing rental market. With the acceleration of China's population aging and people's increasing attention to a better living environment, demand for tourism real estate, health and wellness real estate, and sports real estate is gradually heating up.

• 2. Roads investment and operation

  Business scope of the road investment and operation of the Company mainly includes: investment and financing, construction, operation and capital operation of transportation infrastructure such as expressways and other toll roads, parking lots; investment, financing and construction of urban rail transit projects; highway commissioned operation business and, development business business and others. The operating entity is Transportation Investment Company.

  The national highway network continued to improve, reflected by constantly promotion of the network and technology upgrades, cancellation of the toll stations at the provincial borders of highways, and vigorous promotion and popularization of Electronic Toll Collection (ETC) construction. The "safe, reliable, convenient, efficient, green, intelligent and high-quality service" road transportation network is gradually formed, and the industry as a whole has maintained a vigorous development momentum. With the continuous improvement of the expressway network and the further popularization of private cars, the development of road-based economy will become a new field for the development of the expressway industry.

3.

Water affairs

The water affairs business of the Company includes sewage treatment, sludge treatment, introduction, research and development, design, consultation, application and promotion of water environment treatment technology, and research and development of water treatment equipment. The operating entity is mainly Water Affairs Company.

The PRC is striving to speed up the supplement of the urban sewage collection and treatment facilities, and achieve the full coverage, full collection and full treatment of sewage pipe networks as soon as possible. With the accelerating release of market demand for water environment, municipal sewage and rural sewage treatment, the industry is facing a bright future. Requirements for the governance of black and odorous water bodies and node assessment in the PRC will become increasingly strict. From the perspective of the industry competition pattern, national water groups and local state-owned water enterprises are the main players.

(4)

Comprehensive Services

The comprehensive services business of the Company mainly includes finance, trading and others.

The finance business of the Company mainly involves finance leasing. The operating entity is Financial Leasing Company.

The trading business mainly focuses on the upstream and downstream of the Company's main engineering business, carrying out engineering trade and international trade, and the main operating body is trading companies.

Significant Accounting Data and Financial Indicators of the Company

Significant accounting data and financial indicators in the last 3 years

Unit: YuanCurrency: RMB

2020	2019	Increase/decrease (%) compared to last year	2018
Total assets	259,404,704,107.49	234,463,372,633.74	10.64	218,209,265,921.73
Operating revenue	112,611,172,877.22	109,945,696,867.36	2.42	100,625,669,771.65
Net profit attributable to shareholders of the listed company	4,282,298,034.25	5,441,781,311.03	-21.31	4,657,706,341.59
Net profit attributable to shareholders of the listed company deducting the non-recurring gains and losses	3,764,140,047.99	3,328,869,701.53	13.08	4,012,361,000.79
Net assets attributable to shareholders of the listed company	62,210,435,150.35	52,534,121,768.78	18.42	42,803,990,684.04
Net cash flow generated from operating activities	6,364,161,031.78	6,070,433,318.75	4.84	1,277,803,608.77
Basic earnings per share (Yuan/share)	0.726	1.034	-29.79	0.887
Diluted earnings per share (Yuan/share)	0.726	1.034	-29.79	0.887
Weighted average ROE (%)	10.310	16.427	Decreased by 6.117 percentage points	15.652

Explanation:

According to Accounting Standards for Business Enterprises, while calculating earnings per share, the interest of other equity instruments perpetual bonds shall be deducted by the net profit attributable to the shareholders of the listed company, of which the interest for perpetual bonds in 2020 amounted to RMB938,575,000.00 and the interest for perpetual bonds in 2019 amounted to RMB679,925,000.00.

3.2

Significant quarterly accounting data during the reporting period

Unit: YuanCurrency: RMB

The 1st Quarter (January to March)	The 2nd Quarter (April to June)	The 3rd Quarter (July to September)	The 4th Quarter (October to December)
Operating revenue	14,974,422,477.61	28,504,601,631.19	31,725,237,060.59	37,406,911,707.83
Net profit attributable to shareholders of the listed company	405,988,404.89	753,281,339.45	1,354,697,315.50	1,768,330,974.41
Net profit attributable to shareholders of the listed company deducting non-recurring gains and losses	374,532,297.50	772,584,192.66	1,345,318,403.76	1,271,705,154.07
Net cash flow generated from operating activities	-3,377,542,186.18	2,317,920,298.05	666,856,625.34	6,756,926,294.57

Description of the differences between the quarterly data and disclosed data in the regular reports

½Applicable

3 Not Applicable

Information of Share Capital and Shareholders

Number of ordinary shareholders and preference shareholders with voting rights restored and the list of shareholding of top 10 shareholders

Unit: Share

Total number of ordinary shareholders as at the end of reporting period (household)	238,949
Total number of ordinary shareholders at the end of the month before annual report disclosure date (household)	232,420
Total number of preference shareholders with voting rights restored as at the end of reporting period (household)	N/A
Total number of preference shareholders with recovered voting rights restored at the end of the month before annual report disclosure date (household)	N/A
Shareholdings of top 10 shareholders
Name of the shareholder (full name)	Increase/ decrease in the reporting period	Number of shares held at the end of reporting period	Ratio (%)	Number of restricted shares held	Pledge or freeze	Nature of the shareholder
Status of shares	Number
China Gezhouba Group Co., Ltd.	23,042,985	1,972,491,224	42.84	0	Nil	0	State-owned legal person
China Securities Finance Co., Ltd.	0	138,343,785	3.00	0	Nil	0	State-owned legal person
Central Huijin Asset Management Co., Ltd.	0	70,785,800	1.54	0	Nil	0	State-owned legal person
Hong Kong Securities Clearing Company Limited	-20,771,148	62,204,644	1.35	0	Nil	0	Others
Yan Xiaohu	623,629	33,366,763	0.72	0	Nil	0	Domestic natural person
Ye Shiping	Unknown	29,289,390	0.64	0	Nil	0	Domestic natural person
Bank of Communications Co., Ltd. - Guangfa China Securities Infrastructure Project Index Initiating Securities Investment Fund	13,242,374	16,202,547	0.35	0	Nil	0	Others
China Merchants Bank Co., Ltd.- Boshi China Securities Central Enterprise Structural Adjustment Trading Open Index Securities Investment Fund	-9,400	14,633,600	0.32	0	Nil	0	Others
China Merchants Bank Co., Ltd.- Boshi China Securities Central Enterprise Innovation Driven Trading Open Index Securities Investment Fund	-11,305,815	14,426,185	0.31	0	Nil	0	Others
Wei Wei	Unknown	13,627,628	0.30	0	Nil	0	Domestic natural person
Description on the connected relationship or acts in concert of the above shareholders	Among the top ten shareholders, the first shareholder is not connected to other shareholders. The Company is not aware whether there are other shareholders who are connected to each other or acting in concert.
Descriptions on the preference shareholders with voting rights restored and number of shares held	N/A

• 4.2 Chart of equity and control relationship between the Company and the controlling shareholder

  3 Applicable

  ½Not ApplicableChina Gezhouba Group Stock

  Company Limited

• 4.3 Chart of equity and control relationship between the Company and the de facto controller

  3 Applicable

  ½Not ApplicableThe State-owned Assets Supervision and Administration Commission of the

  State Council

  90%

  China Energy Engineering

  Group Co., Ltd.

  62.58%China Energy Engineering

  Corporation Limited

  100%

  China Gezhouba Group Co., Ltd.

  42.84%

  China Gezhouba Group Stock

  Company Limited

• 4.4 The total number of preference shareholders of the Company and the top 10 shareholders at the end of the reporting period

½Applicable

3 Not Applicable

Corporate Bonds

3 Applicable

½Not Applicable

5.1

Basic information of corporate bonds

Unit: 100 millionCurrency: RMB

Name of the bonds	Abbreviation	Code	Issue date	Maturity date	Outstanding balance	Interest	Repayment method	Trading place
Public Issuance of Corporate Bonds of China Gezhouba Group Stock Company Limited in 2016 (First Tranche)	16GZ01	136130	19 January 2016	19 January 2021	30	3.14	The interests of the corporate bonds are paid in installments annually and the final phase will be paid with the principal, which is due at maturity.	Shanghai Stock Exchange
Public Issuance of Corporate Bonds of China Gezhouba Group Stock Company Limited in 2016 (Second Tranche)	16GZ02	136427	4 May 2016	4 May 2021	0.206	3.27	The interests of the corporate bonds are paid in installments annually and the final phase will be paid with the principal, which is due at maturity. The term of the bonds is 5 years, with the option to adjust the coupon rate and investor's resale option at the end of the third year.	Shanghai Stock Exchange
Public Issuance of Corporate Bonds of China Gezhouba Group Stock Company Limited in 2016 (Third Tranche)	16GZ 03	136434	13 May 2016	13 May 2021	40	3.45	The interests of the corporate bonds are paid in installments annually and the final phase will be paid with the principal, which is due at maturity.	Shanghai Stock Exchange
Public Issuance of Renewable Corporate Bonds of China Gezhouba Group Stock Company Limited in 2016 (First Tranche)	16GZY2	136995	21 July 2016	25	3.48	The interests of the corporate bonds are paid in installments annually if the issuer does not exercise the right of deferred payment of interest. If the issuer chooses to repay the bonds in full in a year of exercising the renewal option, the interest payment date shall be the repayment date of the bonds.	Shanghai Stock Exchange
Public Issuance of Renewable Corporate Bonds of China Gezhouba Group Stock Company Limited in 2016 (Second Tranche)	16GZY4	136993	3 August 2016	30	3.43	The interests of the corporate bonds are paid in installments annually if the issuer does not exercise the right of deferred payment of interest. If the issuer chooses to repay the bonds in full in a year of exercising the renewal option, the interest payment date shall be the repayment date of the bonds.	Shanghai Stock Exchange
Public Issuance of Green Corporate Bonds of China Gezhouba Group Lvyuan Technology Co., Ltd. in 2018 (First Tranche)	G18LY1	143822	19 September 2018	19 September 2023	12	4.74	The interests of the corporate bonds are paid in installments annually and the final phase will be paid with the principal, which is due at maturity. The term of the bonds is 5 years, with the option to adjust the coupon rate and investor's resale option at the end of the third year.	Shanghai Stock Exchange
Public Issuance of Corporate Bonds on House Leasing Project of China Gezhouba Group Stock Company Limited in 2019 (First Tranche)	19GZ01	155129	9 January 2019	9 January 2024	10	3.85	The interests of the corporate bonds are paid in installments annually and the final phase will be paid with the principal, which is due at maturity.	Shanghai Stock Exchange
Name of the bonds	Abbreviation	Code	Issue date	Maturity date	Outstanding balance	Interest	Repayment method	Trading place
Public Issuance of Corporate Bonds of China Gezhouba Group Stock Company Limited in 2019 (First Tranche)	19GZ02	155223	13 March 2019	13 March 2024	15	4.1	The interests of the corporate bonds are paid in installments annually and the final phase will be paid with the principal, which is due at maturity.	Shanghai Stock Exchange
Public Issuance of Corporate Bonds of China Gezhouba Group Stock Company Limited in 2019 (Second Tranche)	19GZ03	155370	24 April 2019	24 April 2024	15	3.95	The interests of the corporate bonds are paid in installments annually and the final phase will be paid with the principal, which is due at maturity. The term of the bonds is 5 years, with the option to adjust the coupon rate and investor's resale option at the end of the third year.	Shanghai Stock Exchange
Public Issuance of Renewable Corporate Bonds of China Gezhouba Group Stock Company Limited in 2019 (First Tranche)	19GZY1	155931	20 May 2019	50	4.35	The interests of the corporate bonds are paid in installments annually if the issuer does not exercise the right of deferred payment of interest. If the issuer chooses to repay the bonds in full in a year of exercising the renewal option, the interest payment date shall be the repayment date of the bonds.	Shanghai Stock Exchange
Public Issuance of Renewable Corporate Bonds of China Gezhouba Group Stock Company Limited in 2020 (First Tranche)	20GZY1	175067	28 August 2020	10	3.99	The interests of the corporate bonds are paid in installments annually if the issuer does not exercise the right of deferred payment of interest. If the issuer chooses to repay the bonds in full in a year of exercising the renewal option, the interest payment date shall be the repayment date of the bonds.	Shanghai Stock Exchange
Public Issuance of Renewable Corporate Bonds of China Gezhouba Group Stock Company Limited in 2020 (Second Tranche)	20GZY2	175265	15 October 2020	30	4.14	The interests of the corporate bonds are paid in installments annually if the issuer does not exercise the right of deferred payment of interest. If the issuer chooses to repay the bonds in full in a year of exercising the renewal option, the interest payment date shall be the repayment date of the bonds.	Shanghai Stock Exchange
Public Issuance of Renewable Corporate Bonds of China Gezhouba Group Stock Company Limited in 2020 (Third Tranche)	20GZY4	175334	28 October 2020	20	3.97	The interests of the corporate bonds are paid in installments annually if the issuer does not exercise the right of deferred payment of interest. If the issuer chooses to repay the bonds in full in a year of exercising the renewal option, the interest payment date shall be the repayment date of the bonds.	Shanghai Stock Exchange
Public Issuance of Renewable Corporate Bonds of China Gezhouba Group Stock Company Limited in 2020 (Third Tranche)	20GZY5	175335	28 October 2020	10	4.25	The interests of the corporate bonds are paid in installments annually if the issuer does not exercise the right of deferred payment of interest. If the issuer chooses to repay the bonds in full in a year of exercising the renewal option, the interest payment date shall be the repayment date of the bonds.	Shanghai Stock Exchange

5.2

Interests payment and repayment of corporate bonds

3 Applicable

½Not Applicable

• 1. On 9 January 2020, the Company paid the interest of China Gezhouba Group Stock Company Limited's 2019 public issuance of corporate bonds on house leasing project (first tranche)

• for the period from 9 January 2019 to 8 January 2020.

• 2. On 20 January 2020, the Company paid the interest of China Gezhouba Group Stock Company Limited's 2016 public issuance of corporate bonds (first tranche) for the period from 19 January 2019 to 18 January 2020.

• 3. On 13 March 2020, the Company paid the interest of China Gezhouba Group Stock Company Limited's 2019 public issuance of corporate bonds (first tranche) for the period from 13 March 2019 to 12 March 2020.

• 4. On 24 April 2020, the Company paid the interest of China Gezhouba Group Stock Company Limited's 2019 public issuance of corporate bonds (second tranche) for the period from 24 April 2019 to 23 April 2020.

• 5. On 6 May 2020, the Company paid the interest of China Gezhouba Group Stock Company Limited's 2016 public issuance of corporate bonds (second tranche) for the period from 4 May 2019 to 3 May 2020.

• 6. On 13 May 2020, the Company paid the interest of China Gezhouba Group Stock Company Limited's 2016 public issuance of corporate bonds (third tranche) for the period from 13 May 2019 to 12 May 2020.

• 7. On 20 May 2020, the Company paid the interest of China Gezhouba Group Stock Company Limited's 2019 public issuance of renewable corporate bonds (first tranche) for the period from 20 May 2019 to 19 May 2020.

• 8. On 21 July 2020, the Company paid the interest of China Gezhouba Group Stock Company Limited's 2016 public issuance of renewable corporate bonds (first tranche, type 2) for the period from 21 July 2019 to 20 July 2020.

• 9. On 3 August 2020, the Company paid the interest of China Gezhouba Group Stock Company Limited's 2016 public issuance of renewable corporate bonds (second tranche, type 2) for the period from 3 August 2019 to 2 August 2020.

5.3

Bond rating of the Company

3 Applicable ½Not Applicable

(I)

Public issuance of 2016 corporate bonds of China Gezhouba Group Stock Company Limited

Shanghai Brilliance Credit Rating & Investors Service Co., Ltd. will conduct continuous follow-up ratings on the Company during the duration of the bonds. Continuous follow-up ratings include regular follow-up ratings and irregular follow-up ratings. The regular follow-up rating is conducted once a year, and a formal regular follow-up rating report will be issued within 2 months from the Company's audited annual financial report disclosure date.

According to the Follow-up Rating Report regarding China Gezhouba Group Stock Company Limited and its 16GZ01, 16GZ02 and 16GZ03 in Issue issued by Shanghai Brilliance Credit Rating & Investors Service Co., Ltd. on 29 May 2020 and published on the websites of the Shanghai Stock Exchange and Shanghai Brilliance Credit Rating & Investors Service Co., Ltd., the Company's overall credit rating remains AAA, the rating outlook is stable. At the same time, the bonds' credit rating remains AAA.

(II) Public issuance of 2016 renewable corporate bonds of China Gezhouba Group Stock Company Limited

The Company has commissioned United Credit Ratings Co., Ltd. to serve as the follow-up rating agency of China Gezhouba Group Stock Company Limited for the public issuance of renewable corporate bonds in 2016. The latest follow-up rating report will be disclosed on the websites of the Shanghai Stock Exchange and United Credit Ratings Co., Ltd. within two months after the announcement of the annual report of the Company. During the duration of the corporate bonds, United Credit Ratings Co., Ltd. will issue at least one official regular follow-up rating report each year. According to the issuance and disclosure of 2020 Follow-up Rating Report of China Gezhouba Group Stock Company Limited on Corporate Bonds issued by United Credit Ratings Co., Ltd. on 19 May 2020 on the websites of the Shanghai Stock Exchange and United Credit Ratings Co., Ltd., the Company's overall credit rating remains AAA, and its rating outlook is stable. At the same time, the bonds' credit rating remains AAA.

• (III) Public issuance of 2018 green corporate bonds of China Gezhouba Group Lvyuan Technology Co., Ltd. (first tranche)

  According to the Credit Rating Report regarding Public Issuance of 2018 Green Corporate Bonds of China Gezhouba Group Lvyuan Technology Co., Ltd. (First Tranche) issued by United Credit Ratings Co., Ltd. on 7 September 2018 and published on the websites of the Shanghai Stock Exchange and United Credit Ratings Co., Ltd., China Gezhouba Group Lvyuan Technology Co., Ltd. was rated AA in overall credit rating and the bonds' credit rating is AAA with stable rating outlook.

  China Gezhouba Group Lvyuan Technology Co., Ltd. has commissioned United Credit Ratings Co., Ltd. to serve as the follow-up rating agency of China Gezhouba Group Stock Company Limited for the public issuance of green corporate bonds in 2018 (first tranche). The latest follow-up rating report will be disclosed on the websites of the Shanghai Stock Exchange and United Credit Ratings Co., Ltd. within two months after the announcement of the annual report of the Company. During the duration of the corporate bonds, United Credit Ratings Co., Ltd. will issue at least one official regular follow-up rating report each year. According to the issuance and disclosure of 2020 Follow-up Rating Report of China Gezhouba Group Lvyuan Technology Co., Ltd. on Corporate Bonds issued by United Credit Ratings Co., Ltd. on 24 June 2020 on the websites of the Shanghai Stock Exchange and United Credit Ratings Co., Ltd., the Company's overall credit rating remains AA, and its rating outlook is stable. At the same time, the bonds' credit rating remains AAA.

• (IV) Public issuance of 2019 corporate bonds on house leasing project of China Gezhouba Group Stock Company Limited (first tranche)

  According to the Credit Rating Report of China Gezhouba Group Stock Company Limited on Public Issuance of 2019 Corporate Bonds on House Leasing Project (First Tranche) issued by United Credit Ratings Co., Ltd. on 28 December 2018 on the websites of the Shanghai Stock Exchange and United Credit Ratings Co., Ltd., China Gezhouba Group Stock Company Limited was rated AAA in overall credit rating and the bonds' credit rating is AAA with stable rating outlook.

  The Company has commissioned United Credit Ratings Co., Ltd. to serve as the follow-up rating agency of China Gezhouba Group Stock Company Limited for the public issuance of corporate bonds on house leasing project in 2019 (first tranche). The latest follow-up rating report will be disclosed on the websites of the Shanghai Stock Exchange and United Credit Ratings Co., Ltd. within two months after the announcement of the annual report of the Company. During the duration of the corporate bonds, United Credit Ratings Co., Ltd. will issue at least one official regular follow-up rating report each year. According to the issuance and disclosure of 2020 Follow-up Rating Report of China Gezhouba Group Stock Company Limited on Corporate Bonds issued by United Credit Ratings Co., Ltd. on 19 May 2020 on the websites of the Shanghai Stock Exchange and United Credit Ratings Co., Ltd., the Company's overall credit rating remains AAA, and its rating outlook is stable. At the same time, the bonds' credit rating remains AAA.

(V)Public issuance of 2019 corporate bonds of China Gezhouba Group Stock Company Limited (first tranche, second tranche)

The Company has commissioned United Credit Ratings Co., Ltd. to serve as the follow-up rating agency of China Gezhouba Group Stock Company Limited for the public issuance of 2019 corporate bonds (first tranche, second tranche). The latest follow-up rating report will be disclosed on the websites of the Shanghai Stock Exchange and United Credit Ratings Co., Ltd. within two months after the announcement of the annual report of the Company. During the duration of the corporate bonds (first tranche, second tranche), United Credit Ratings Co., Ltd. will issue at least one official regular follow-up rating report each year. According to the issuance and disclosure of 2020 Follow-up Rating Report of China Gezhouba Group Stock Company Limited on Corporate Bonds issued by United Credit Ratings Co., Ltd. on 19 May 2020 on the websites of the Shanghai Stock Exchange and United Credit Ratings Co., Ltd., the Company's overall credit rating remains AAA, and its rating outlook is stable. At the same time, the bonds' credit rating (first tranche, second tranche) remains AAA.

(VI) Public issuance of 2019 renewable corporate bonds of China Gezhouba Group Stock Company

Limited (first tranche, type 1)

The Company has commissioned United Credit Ratings Co., Ltd. to serve as the follow-up rating agency of China Gezhouba Group Stock Company Limited for the public issuance of 2019 renewable corporate bonds (first tranche, type 1) in 2019. The latest follow-up rating report will be disclosed on the websites of the Shanghai Stock Exchange and United Credit Ratings Co., Ltd. within two months after the announcement of the annual report of the Company. During the duration of the corporate bonds, United Credit Ratings Co., Ltd. will issue at least one official regular follow-up rating report each year. According to the issuance and disclosure of 2020 Follow-up Rating Report of China Gezhouba Group Stock Company Limited on Corporate Bonds issued by United Credit Ratings Co., Ltd. on 19 May 2020 on the websites of the Shanghai Stock Exchange and United Credit Ratings Co., Ltd., the Company's overall credit rating remains AAA, and its rating outlook is stable. At the same time, the bonds' credit rating remains AAA.

(VII) Public issuance of 2020 renewable corporate bonds of China Gezhouba Group Stock Company

Limited (first tranche), (second tranche, type 1), (third tranche, type 1 and type 2)

According to the issuance and disclosure of 2020 Rating Report of China Gezhouba Group Stock Company Limited on Renewable Corporate Bonds issued by United Credit Ratings Co., Ltd. on 9 June 2020 on the websites of the Shanghai Stock Exchange and United Credit Ratings Co., Ltd., the overall credit rating of China Gezhouba Group Stock Company Limited is AAA, and its rating outlook is stable and the bonds' credit rating is AAA. According to the issuance and disclosure of 2020 Rating Report of China Gezhouba Group Stock Company Limited on Renewable Corporate Bonds (Second Tranche) issued by United Credit Ratings Co., Ltd. on 9 October 2020 on the websites of the Shanghai Stock Exchange and United Credit Ratings Co., Ltd., the overall credit rating of China Gezhouba Group Stock Company Limited is AAA, and its rating outlook is stable and the bonds' credit rating is AAA. According to the issuance and disclosure of 2020 Rating Report of China Gezhouba Group Stock Company Limited on Renewable Corporate Bonds (Third Tranche) issued by United Credit Ratings Co., Ltd. on 21 October 2020 on the websites of the Shanghai Stock Exchange and United Credit Ratings Co., Ltd., the overall credit rating of China Gezhouba Group Stock Company Limited is AAA, and its rating outlook is stable and the bonds' credit rating is AAA.

5.4

Significant accounting data and financial indicators in the last 2 years

3 Applicable

½Not applicable

Key indicator	2020	2019	Increase/ decrease compared to the same period of last year (%)
Liabilities to assets ratio (%)	69.41	71.75	-3.26
EBITDA to total liabilities ratio	0.07	0.08	-12.50
Interest coverage ratio	2.40	2.36	1.69

III. OPERATION DISCUSSION AND ANALYSIS

In 2020, facing the complicated situations both at home and abroad and hard reform and development task, under the guidance of Xi Jinping's Thought on Socialism with Chinese Characteristics for a New Era, the Company thoroughly implemented the spirit of the 19th National Congress of the Communist Party of China and the 19th Session, actively responded to the adverse impact arising from the COVID-19 pandemic, vigorously promoted reform and enhanced management with open mind, coordinately promoted the pandemic prevention and control and business development. The Company has achieved outstanding results in pandemic prevention and control, market contracts and operating income have reached new highs, asset quality has continued to improve, and its business structure has been fully optimized. The Company has successfully fulfilled its annual operating goals.

1.

Strengthen the pandemic prevention and control, and make every effort to ensure the safety and health of employees. During the reporting period, the Company resolutely implemented the important instructions of General Secretary Xi Jinping on pandemic prevention and control, strengthened organization and leadership in the first instance, finalized prevention and control responsibilities, initiated emergency response, set up working mechanisms, strengthened staff management, improved emergency reserves, and intensified joint prevention and control, organized a tight and normalized pandemic prevention and control network. The Company has formed 150 party member commandos and volunteer service teams as the front line of the pandemic prevention, and spared no effort to perform the domestic pandemic prevent and control. In the face of the spread of the international pandemic situation, the Company has not slackened to implement and introduce 72 measures for the prevention and control of the international epidemic. The Company has innovatively implemented grid management, built a telemedicine platform to provide medical services and psychological consultations for overseas employees, and strengthened the care for overseas employees and their family members so as to stabilize the overseas employees, ensuring their safety and health.

• 2. Strengthen market expansion and promote continuous improvement of market competitiveness. During the reporting period, the Company straightened out the market development and investment management mechanism, and improved the six major market development platforms including the Beijing-Tianjin-Hebei branch, the Yangtze River Delta branch, Chengyu branch, Hainan branch, the Guangdong-Hong Kong-Macao branch and the Central China branch. The Company has adjusted the military and civilian integration business management system, newly set up market development units in Tibet, Shandong and Guangxi, established rural revitalization, rail transit and expressway project development offices, and optimized the domestic market development system. The Company continued to improve the working mechanism of large projects, exerted the synergies among the headquarters, regional platform companies and subsidiaries, set up special work classes and promoted the winning of bids for projects such as Nanjing Longtan New City (یԯᎲ ᆐอ۬). Through the integration of planning, design, investment and financing, operation and other resources, the Company actively innovated business models, and successfully signed the Meishan Viacom project and others through minority shareholding. A unified layout of "a game of chess" with horizontal and vertical coordination among departments and subsidiaries of the Company and intergroup horizontal synergies was formed, which promoted the orderly and efficient implementation of the Company's market development.

• 3. Strengthen project management with project construction benefits being more prominent. During the reporting period, the Company optimized the project management system, fully implemented the three-level project management responsibility system, improved the project classification and hierarchical management mechanism and authorization management system, which improved the project governance and management capabilities. The Company has innovated the project supervision mechanism, set up the project inspection unit, perfected the project supervision policies, and built the full-business, full-life-cycle project supervision system. Numerous measures were taken to promote the implementation of key projects, and key nodes of a number of key projects were completed on schedule. The Company has built the project management information system, promoted the informatization, digitization and intelligence of project management, improved the customer relationship management mechanism, strengthened the supervision and resolution of issues, and created a good performance environment. The Company has fully implemented the project cost analysis system, which improved the cost control capabilities and strengthened the project efficiency creation capabilities.

• 4. Steadily carry out investment and promote the sound development of investment business. During the reporting period, the Company established the market investment department, clarified the investment control functions of the commercial management department, and improved the "front and back office" balancing mechanism for the investment business. Five major investment platforms were built which clarify the direction of investment, and further improved the investment management system. The Company has strictly implemented the principle of "who benefits, who invests and who is responsible", deepened the integrated management model of investment, construction and operation, consolidated the responsibilities of investment entities, and further straightened out the investment management relationship. The key investment and financing projects were promoted in an orderly manner. The projects of Shandong Zaozhuang-Heze and Ji'nan-Tai'an Expressways were fully opened to traffic, and the Sichuan Bazhong-Wanyuan Expressway entered trial operation. A number of key investment and financing projects were put into operation or achieved the expected node goals. The Company has improve investment business planning, strengthened guidance for investment strategies, intensified dynamic supervision of investment budget estimates, and strictly prevented from investment risks.

• 5. Adhere to international priority and achieve new development in international business. During the reporting period, centering on the "1+4" international business layout, the Company strengthened the high-end platform functions of international companies, accelerated the establishment of four business platforms for overseas project contracting, overseas controlling investment, international trade and management consulting, and established six overseas regional headquarters, forming the management system of "unified leadership under group companies, leading and overall planning by international companies, implementation by classification by platform companies, respective responsibility of regional agencies and coordinated development of subsidiaries". The Company firmly carried out the development of the international market, overcame the impact of the pandemic, and over-achieved the annual target. The Company strengthened project management, and a number of key projects have achieved node goals. The Company has systemically promoted overseas investment, sorted out management relationship of overseas investment business, and Pattan Hydropower

  Station Project in Pakistan has made significant progress.

6.

Deepen reforms in an all-round way and cultivate new drivers of development. During the reporting period, the Company built the "four to one" corporate governance structure of decision-making, support, system and supervision, and comprehensively promoted the integration of party leadership into corporate governance. The scientific decision-making level, standardized operation capabilities and operational efficiency of governed entities at all levels were significantly improved. The Company has deepened the professional construction of subsidiaries, focused on the principal businesses and main responsibilities, strengthened the concentration of resources and the talent team building, and continuously upgraded the qualification level, and the effects of professional construction have been showing. A new round of organizational reform of the headquarters was completed, and the value creation ability continued to be improved. The Company has systematically carried out special actions for institutional clean-up and rectification, deepened the "Disposal and Governance of Zombie Enterprises and Enterprises with Difficulties", completed phased work objectives and fully standardized management of various institutions. The Company innovated human resource management, optimized financial capital management, strengthened mechanical and electrical material management, deepened construction of business systems and technical systems, and actively planned digital transformation, in order to make the development mechanism of the Company more sound.

1

Major Operating Conditions during the Reporting Period

During the reporting period, the Company's business scope covers engineering construction, industrial manufacturing, investment operations and comprehensive services. During the reporting period, the Company achieved operating income of RMB112.611 billion, a year-on-year increase of 2.42%; total profit of RMB7.692 billion, a year-on-year decrease of 12.47%; net profit attributable to owners of the parent company of RMB4.282 billion, a year-on-year decrease of 21.31%. As of the end of the reporting period, the Company's total assets amounted to RMB259.405 billion, representing an increase of 10.64% as compared to the beginning of the year.

(1)Engineering construction

During the reporting period, the value of newly signed contracts of the Company was RMB271.217 billion, up by 7.61% year-on-year, which included newly-signed domestic engineering contracts and newly-signed international engineering contracts of RMB187.372 billion and RMB83.845 billion, respectively.

During the reporting period, the Company strengthened the management of projects under construction in an all-round way, promoted the construction of project management informationalism so as to improve the management efficiency. The Company continued to implement staff performance management of the project department to ensure the good performance of the projects under construction. The Company revised the Measures for the Classification and Hierarchical Management of Engineering Contracting Projects, carried out special inspections of the three-level responsibility system for project management, promoted the full implementation of the three-level responsibility system, and urged the implementation of 100 measures for the "great reform" on schedule. The Company has strengthened the management of key projects, set up the system of weekly reporting and regular meeting, organized two-level cadre sinking activities, and intensified on-site guidance services to ensure the smooth implementation of key projects. The Company paid close attention to project performance to ensure the achievement of major node goals on schedule. The Dateng Gorge Water Control Project opened to navigation, Baihetan, Baihe and Jixi Pumped Storage Power Stations commenced power generation, Zaozhuang-Heze Expressway, Jinan-Taizhou Expressway and Bazhong-Wanyuan Expressway were opened to traffic on schedule, the first expressway of the north to Jingzhou was opened to traffic on schedule, and the water diversion project of Haikou Nandu River was put into operation on schedule. The Sanghe Class II Hydropower Station and the Yunnan Lancang River Miaowei Hydropower Station undertaken by the Company won the "2020 China Power Quality Project Award", and the Shenzhen Pumped Storage Power Station undertaken by the Company won the "2020-2021 First Batch of National Quality Project Awards". The Jinping Hydropower Project undertaken by the Company won the "Special Prize of Hydropower Science and Technology Award".

During the reporting period, the Company actively implemented the national strategies, seized the "Belt and Road" initiative and international production capacity cooperation opportunities. The "four to one" business layout of international project contracting, overseas investment, international trade and management consulting was initially formed and obtained fruitful results in international business. The contracted amount from international market amounted to RMB83.845 billion, representing a record high. The Company has actively expanded new markets and new businesses, and successfully entered 11 new countries with contracted amount from new market accounting for 40.97% of the total contracted amount. The Company has successfully signed contracts for the South Keraniganj Project of Dhaka in Bangladesh with contracted amount of US$2.034 billion, the Darta Hydropower Station project in Indonesia with contracted amount of US$1.645 billion, and the Egirdir Pumped Storage Power Station Project in Turkey with contracted amount of US$1.5 billion, etc. The international project management has been improving, the effect of epidemic prevention and control was outstanding, and the resumption rate of work and production has reached 93%. The Kekai project in Angola was awarded the "Overseas Security Development Outstanding Project".

During the reporting period, the Company's engineering construction business achieved operating income of RMB71.357 billion and a total profit of RMB4.561 billion.

(2)Industrial manufacturing

The industrial manufacturing business of the Company primarily includes cement production, civil explosives, environmental protection and high-end equipment manufacturing businesses.

1.

Cement

During the reporting period, the market share of the Company's cement business in core market increased steadily. During the reporting period, the Company successfully won the bids for the Xiangyang Inner Ring Interconnection Project, Xianning-Jiujiang Expressway, Xiaogan-Hanchuan-Yingcheng Expressway and other key projects. The civilian market continued to maintain its core market share, and cement sales for home improvement achieved remarkable results, up by 75.71% year-on-year. The Mandalay Cement Project in Myanmar has completed the filing with national ministries and commissions, and the Xili Cement Project in Kazakhstan has resumed work and production. The self-developed immersed tunnel cement was successfully applied to the east to west route project of Xiangyang, filling the gap of "Three Gorges" brand cement in the field of large-scale immersed concrete precasting; oil-well cement was exported to Tanzania, which strongly supported the resumption of work and production of oilfields in Tanzania; and low-heat cement was designated as the experimental special cement by the Jiangmen Neutrino Experimental Station of the Chinese Academy of Sciences. During the reporting period, Cement Company obtained 34 national patent authorizations and 1 software copyright registration, and edited 1 national standard and 1 industry standard published; it was approved as the "Green Enterprise Management Award in 2020" granted by China Environment News.

During the reporting period, the Company produced 17.9574 million tons of clinker and 21.18 million tons of cement; sold 23.78 million tons of cement and clinker, 1.36 million cubic meters of commercial concrete and 2.57 million tons of aggregate.

• 2. Civil explosives

  During the reporting period, the signing of contracts, operating income and total profit of the Company's civil explosives business for the year overperformed the annual plan. It has further consolidated its position in the top three of the industry, with the output of industrial explosives reaching 360,000 tons and 14.36 million pieces of industrial detonators. During the reporting period, as for the civil explosives business, the Company completed the acquisition and merger of Guangxi Weiqi Chemical, with additional permitted production capacity of industrial explosives of 60,000 tons and further expansion of the market share of civil explosives market in Guangxi. The Company invested and established Hunan Technology Company, set up an automated production line for carbon dioxide expansion blasting excitation tubes, and took the lead in deploying special environmental blasting business; focusing on horizontal expansion of new projects and vertical extension of business chains, four core markets in Northwest, Southwest, Central China and South China have been formed, and several groups of engineering projects with operating income of over RMB100 million were developed. The Company persisted in scientific and technological progress. Centering on major national projects, the Company carried out scientific research, expand market business, vigorously conducted the organic integration of scientific and technological achievements and production and operation, and pushed ahead the transformation of scientific research achievements such as EPE-3 polymer emulsifier, EDF-1 industrial electronic detonator and initiation system, etc., as well as the optimization of blasting technology. As for the civil explosive business, the Company obtained 18 authorized patents, 7 software copyrights and 6 science and technology awards throughout the year. Explosive Co., Ltd. has become a pilot unit for the classification and hierarchical application of industrial data by the Ministry of Industry and Information Technology, and its industry influence has been increasing.

• 3. Environmental protection

  During the reporting period, Huai'an Company became the governing unit of Huai'an Renewable Resources Comprehensive Utilization Association (ଊτ̹Ύ͛༟๕ၝ Υл͜՘ึ). The four municipal solid waste treatment lines in Laohekou, Songzi, Yicheng and Dangyang were operating normally. As for the cement kiln co-processing business, 161,500 tons of contaminated soil was received and treated throughout the year, and the cement kiln achieved 462.68 million kWh of waste heat for power generation.

4.

High-end equipment manufacturing

During the reporting period, the existing projects of the Company's equipment manufacturing were generally implemented smoothly. The Cambodian 200MW dual-fuel power plant project was completed on schedule and handed over to the owner for use. The completion of the project will provide the power grid of Cambodian with an average annual power generation of 1.75 billion kWh, greatly alleviating the regional power supply shortage. Huadian Huayuan Company successfully signed the Ningxia Wuzhong Centralized Heating Emergency Peaking Heat Source Project. Six 50MW high-voltage electrode boilers (the electrode boiler with the largest power in China) adopted by the project have been delivered to the site by the end of 2020. During the reporting period, Equipment Company organized production under the pandemic, and urgently delivered thermal storage electric boilers to Wuhan Wuzhan Fangcang Shelter Hospital and Meinengda Fangcang Shelter Hospital, and at the same time supported the epidemic prevention work of "Huoshenshan" in Wenzhou and Tongwei County People's Hospital in Gansu. It was well acknowledged by Xinhua News Agency, Economic Daily and other mainstream media, which effectively enhanced the Company's social visibility and influence.

During the reporting period, the Company's industrial manufacturing business achieved operating income of RMB24.099 billion and a total profit of RMB1.763 billion.

(3)Investment and operation

1.

Real estate

During the reporting period, the Company achieved major breakthroughs in its innovative land acquisition model for the real estate business, and achieved a breakthrough in the field of primary and secondary linkages and shed reform in project development. In accordance with the strategic orientation of "fast turnover", Guangzhou Nansha Financial Island Project has achieved the goals of "commencement, opening and launch (කʈeක׳eකᆵ)" as scheduled, accelerating the cash inflow from the project, and contributing experience to the "Nansha" model. Wuhan Jiangyue Orchid Court and Nanjing Guyin Orchid Court commenced construction within five months and launched within nine months from land acquisition. The development capability of "fast turnover" was increasing. Sanya Haitangfu Bay, Shanghai Zijun Mansion and Wuhan Zijun Orchid Court won the National Quality Engineering Award, the National Three-Star Certificate of Green Building Label and the Hubei Provincial Building

Structure Quality Engineering Award, respectively.

During the reporting period, Real Estate Company continuously won the honor of "Top Ten Green Real Estate" and obtained 4 certificates of green building and 1 international award throughout the year. The two national standards compiled by the Company were released and implemented, and one of the "13th Five-Year" national topics led and undertaken by the Company was completed, and seven patents, software copyrights and other intellectual property rights were obtained throughout the year.

During the reporting period, the newly-constructed gross floor area, completed gross floor area and equity gross floor area of projects under construction of the Company were 700,400 square meters, 1,059,000 square meters and 4,504,200 square meters, respectively. The sales area achieved 685,500 square meters, and the contracted sales amount was RMB19.237 billion. As at the end of the reporting period, the area offered for sale by the Company was 344,200 square meters.

• 2. Roads operation

  During the reporting period, in accordance with the integrated principle of "investment, construction and operation", the Company fully exerted its resource advantages, took the service area economy as the main body and gas station business as the core, innovated its business model, created new economic growth points, and promoted the effective and integrated development of road derivative economy and principal business. During the reporting period, the projects operated by the Company include Sichuan Neijiang-Suining Expressway, G55 Xiangyang-Jingzhou Section, Shandong Juye-Danxian Expressway, Shandong Jinan-Taian Expressway, Shandong Zaozhuang-Heze Expressway and Sichuan Bazhong-Wanyuan Expressway, with total operating mileage reaching 775 kilometers, of which the controlling mileage reaching 425 kilometers.

• 3. Water affairs

  During the reporting period, the Company actively implemented the five development concepts, focusing on business areas such as water supply, sewage treatment and water environment treatment. Over 70 water plants in more than ten provinces, municipalities and autonomous regions in China (the annual water treatment volume was 404.6048 million tons), a pipeline network of over 1,000 kilometers and 33 pumping stations operated by the Company have initially realized a national strategic deployment. Five domestic upgrading and expansion projects successfully commenced water supply, remaining work of three projects have been completed successfully and three projects have been pushed ahead in an orderly manner.

In terms of overseas water affairs operation, the San Norenso Water Supply Project in Brazil performed well and received continuous full marks from the appraisal by the owners to ensure full collection of operation and maintenance costs and maintain stable operation.

In terms of hydropower station operation, the Company controlled and operated the hydropower stations with the installed capacity of 314,500 kW, the annual power generation capacity of 918,993,000 kWh and the electricity sales of 902,372,500 kWh.

During the reporting period, the Company's investment and operation business achieved operating income of RMB15.184 billion and a total profit of RMB1.596 billion.

(4)

Comprehensive services

The business structure of Financial Leasing Company has been further optimized, focusing on the financial leasing business and the principal business has become more prominent; the asset-liability ratio decreased sharply year-on-year, financial leverage ratio has been drastically reduced, and the asset structure has been improved; and it continued to promote the transformation of business models and maintained stable development. Trade Company has achieved positive results in various aspects of business development from preparation of branches, business trial orders and stable start-ups to transformation of subsidiaries.

During the reporting period, the Company's comprehensive service business achieved operating income of RMB1.971 billion and a total profit of RMB140 million.

• 2 Reasons for Suspension of Listing

  ½Applicable

  3 Not applicable

• 3 Reasons for Termination of Listing

  The Ministry of Finance issued the Regulations on Accounting Treatment of COVID-19 - Related Rent Concessions (Cai Kuai [2020] No. 10) on 19 June 2020, which has been implemented from 19 June 2020, allowing enterprises to adjust the rent concessions for the period from 1 January 2020 to the effective date of the regulations. According to the regulations, qualified rental reduction and extension of payment directly caused by COVID-19 can be treated using simplified method. The Company has treated the rental reduction within the scope applicable to the regulations using simplified method. The implementation of the regulations has no significant impact on the financial situation and operating results of the Company.

• 4 Analysis and Explanation of Reasons and the Relating Impacts for the Change of Accounting Policies and Accounting Estimations

  ½Applicable

  3 Not applicable

• 5 Analysis and Explanation of Reasons and Impacts for the Correction of Significant Accounting Errors

  ½Applicable

  3 Not applicable

• 6 Compared with the Previous Annual Financial Report, the Company Should Make a Specific Description for the Changes in the Scope of Consolidated Financial Statements

½Applicable

3 Not applicableFor details of the scope of the financial statements for 2020 of the Company and its changes, please refer to the Notes "VIII. Changes in the scope of consolidation" and "IX. Equity in other entities" to the annual report of the Company.