China Hongqiao : VOLUNTARY ANNOUNCEMENT

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 Hongqiao Group Limited

中國宏橋集團有限公司

(Incorporated under the laws of Cayman Islands with limited liability)

(Stock Code: 1378)

Voluntary Announcement

This is a voluntary announcement made by China Hongqiao Group Limited (the "Company").

The 2020 interim financial information of Shandong Hongqiao New Material Co., Ltd. ("Shandong Hongqiao") and Shandong Weiqiao Aluminum and Power Co., Ltd. ("Aluminum & Power"), both of which are wholly-owned subsidiaries of the Company, was disclosed on the website of Shanghai Stock Exchange (http://www.sse.com.cn) and the website of Shenzhen Stock Exchange (http://www.szse.cn). As the 2020 interim financial information of Shandong Hongqiao and Aluminum & Power is available only in Chinese, the Company wishes to provide the following unaudited consolidated balance sheet statement as at 30 June 2020 and unaudited consolidated income statement for the six months ended 30 June 2020 prepared by Shandong Hongqiao and Aluminum & Power.

The board of directors of the Company wishes to remind investors that the financial information of Shandong Hongqiao and Aluminum & Power contained herein is prepared based on the generally accepted accounting principles of the PRC and the unaudited management accounts. It has not been reviewed or audited by the auditors of Shandong Hongqiao and Aluminum & Power.

The investors are cautioned not to unduly rely on such information and are advised to exercise caution when dealing in the shares of the Company.

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		CONSOLIDATED BALANCE SHEET
Prepared by Shandong Hongqiao New Material Co., Ltd.		Date: 30 June 2020	Units: RMB
Assets	Row	Opening balance	Ending balance		Liabilities and owners' equity	Row	Opening balance		Ending balance
Current assets:					Current liabilities:
Cash at bank and on hand	1	42,179,527,836.95	41,766,247,316.87		short-term borrowings	29	20,206,524,388.98		25,494,573,473.71
Financial assets at fair value	2				Financial liabilities at fair	30
through profit or loss					value through profit or loss
Financial assets held for	3	2,005,336.43			Financial liabilities held for	31	2,513,150.00		441,350.00
trading					trading
Notes receivable	4	11,139,774,701.46	8,155,954,109.01		Notes payable	32	2,138,842,046.11		2,059,068,949.25
Accounts receivable	5	10,459,651,873.46	9,735,375,643.24		Accounts payble	33	17,604,071,560.90		12,467,289,123.41
Prepayments	6	3,306,735,499.22	4,324,807,147.52		Advances from customers	34	2,424,421,780.69		832,835,292.87
Other receivable	7	1,799,593,694.22	5,602,838,067.48		Staff remuneration payables	35	607,012,239.84		461,642,309.15
Invetories	8	21,561,663,723.07	20,840,115,941.35		Taxes payable	36	2,781,760,129.40		3,010,530,694.89
Assets held for sale	9	370,058,072.87			Other payable	37	10,337,986,206.37		8,389,856,185.65
Non-current assets due within	10				Liabilities held for sale	38
one year
Other current assets	11	1,018,348,932.08	1,123,526,189.32		Non-current liabilities due	39	8,238,581,263.98		25,861,590,907.03
					within one year
					Other current liabilities	40			161,490,336.06
Total current assets:		91,837,359,669.76	91,548,864,414.79		Total current liabilities:		64,341,712,766.27		78,739,318,622.02
Non-current assets:					Non-current liabilities:
Available-for-sale financial	12				Long-term borrowings	41	405,990,000.00		507,616,250.00
assets
Other debt investment	13		1,000,000,000.00		Bonds payable	42	38,529,228,965.47		18,895,488,897.04
Held-to-maturity investments	14				Long-term payables	43	4,772,872,633.21		2,965,537,417.42
Long-term receivables	15	2,000,000,000.00	2,000,000,000.00		Estimated liabilities	44
Long-term equity investments	16	2,410,689,480.69	2,872,080,149.65		Deferred income	45	571,416,378.60		632,738,141.74
Investment in other equity	17	111,000,782.51	111,000,782.51		Deferred tax liabilities	46	318,245,792.65		310,608,311.33
instruments
Investment property	18				Other non-current liabilities	47	13,856,497.93		14,441,781.23
Fixed assets	19	62,816,757,781.46	56,758,430,005.35
Construction in progress	20	1,399,591,944.50	2,303,131,252.78		Total non-current liabilities:		44,611,610,267.86		23,326,430,798.76
Biological assets for	21
production
Oil and gas assets	22				Total liabilities:		108,953,323,034.13		102,065,749,420.78
Intangible assets	23	5,052,724,023.39	5,173,035,591.39
Development expenses	24	2,427,707.90			Shareholders' equity:
Goodwill	25	608,817,605.80	509,574,519.00		Share capital	48	9,921,364,362.00		10,272,439,362.00
Long-term prepaid expenses	26	1,987,937.99	1,572,755.54		Capital reserve	49	5,375,558.27		5,520,652.02
Deferred tax assets	27	2,329,961,053.21	2,469,029,886.65		Less: Treasury Share	50
Other non-current assets	28	213,348,113.84	393,131,433.71		Other comprehensive income	51	-1,919,041.77		-1,915,377.38
					Surplus reserve	52	1,237,468,987.08		1,237,468,987.08
Total non-current assets:		76,947,306,431.29	73,590,986,376.58		Special reserve	53	431,391,403.01		494,315,318.35
					Undistributed profits	54	46,861,507,439.03		49,435,130,805.70
					Minority interests	55	1,376,154,359.30		1,631,141,622.82
					Total shareholders' equity:		59,831,343,066.92		63,074,101,370.59
TOTAL ASSETS		168,784,666,101.05	165,139,850,791.37		TOTAL LIABILITIES AND		168,784,666,101.05		165,139,850,791.37
					OWNERS' EQUITY
Person-in-charge of	Person-in-charge of		Person-in-charge of
corporate:		accounting:		accounting institution:
Zhang Bo		Zhang Ruilian		Ma Fei

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CONSOLIDATED INCOME STATEMENT
Prepared by Shandong Hongqiao New Material Co., Ltd.		January to June 2020	Units: RMB
						Amount for the	Accumlated
Item			Row		corresponding	Amount for the
						period last year	current year
I. Operating income				1		41,136,992,457.45	40,258,530,135.33
Less: Operating cost				2		32,961,035,753.84	33,012,941,887.42
Taxes and surcharges				3		420,682,565.47	352,993,679.36
Selling expenses				4		291,647,548.92	152,545,110.29
Administrative expenses				5		1,011,438,734.71	1,134,416,751.27
Research and development expenses				6		325,294,734.51	375,147,328.36
Financial expenses				7		2,664,880,165.66	2,025,915,471.97
Of which: Interests expenses				8		2,683,573,118.68	1,955,418,792.31
Interests income				9		95,777,484.49	145,522,270.66
Add: Other gains				10		9,584,250.01	118,133,658.13
Investment gains (Losses are indicated by "-")		11		36,294,074.26	270,167,964.49
Gains from changes in fair value				12		53,625.00	2,072,136.00
(Losses are indicated by "-")
Credit impairment losses				13		-258,380.57	-26,785,606.11
(Losses are indicated by "-")
Asset impairment losses				14		-1,175,825,833.81	-334,154,303.70
(Losses are indicated by "-")
Gains on disposal of assets (Losses are			15		-15,193.05	174,571,416.08
indicated by "-")
II. Operating profit (Losses are indicated by "-")			16		2,331,845,496.18	3,408,575,171.55
Add: Non-operating income				17		155,119,222.49	80,498,931.44
Less: Non-operating expenses				18		658,743.92	6,695,744.50
III. Total profit (Losses are indicated by "-")				19		2,486,305,974.75	3,482,378,358.49
Less: Income tax expenses				20		785,117,519.44	601,567,962.52
IV. Net proft (Losses are indicated by "-")				21		1,701,188,455.31	2,880,810,395.97
(I) Net profit from continuing operations				22		1,701,188,455.31	2,880,810,395.97
(Net loss is indicated by "-")
(II) Net profit from discontinued operations				23
(Net loss is indicated by "-")
Person-in-charge of	Person-in-charge of	Person-in-charge of
corporate:		accounting:	accounting institution:
Zhang Bo		Zhang Ruilian		Ma Fei

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		CONSOLIDATED BALANCE SHEET
Prepared by Shandong Weiqiao Aluminum & Power Co., Ltd.		Date: 30 June 2020			Units: RMB
Assets	Row	Opening balance	Ending balance		Liabilities and owners' equity	Row	Opening balance		Ending balance
Current assets:					Current liabilities:
Cash at bank and on hand	1	30,736,539,592.81	30,207,922,341.48		short-term borrowings	29	14,418,000,000.00		19,332,208,261.92
Financial assets at fair value	2				Financial liabilities at fair	30
through profit or loss					value through profit or loss
Financial assets held for	3	2,005,336.43			Financial liabilities held for	31	2,513,150.00		441,350.00
trading					trading
Notes receivable	4	9,575,821,778.54	6,642,288,769.39		Notes payable	32	2,000,000,000.00		2,000,000,000.00
Accounts receivable	5	6,700,053,684.73	5,898,830,624.43		Accounts payble	33	11,406,086,255.63		6,866,064,034.86
Prepayments	6	3,175,357,865.65	3,419,064,191.72		Advances from customers	34	1,219,501,351.25		719,303,403.23
Other receivable	7	2,629,066,036.50	6,870,354,111.39		Staff remuneration payables	35	490,023,409.47		369,386,487.66
Invetories	8	15,346,721,952.20	15,789,926,730.19		Taxes payable	36	2,262,581,502.04		2,235,139,890.81
Assets held for sale	9	370,058,072.87			Other payable	37	16,616,093,005.13		12,294,324,915.66
Non-current assets due within	10				Liabilities held for sale	38
one year
Other current assets	11	795,186,145.56	927,961,550.13		Non-current liabilities due	39	6,740,000,000.00		15,802,182,139.44
					within one year
					Other current liabilities	40			161,490,336.06
Total current assets:		69,330,810,465.29	69,756,348,318.73		Total current liabilities:		55,154,798,673.52		59,780,540,819.64
Non-current assets:					Non-current liabilities:
Available-for-sale financial	12				Long-term borrowings	41	395,000,000.00		498,000,000.00
assets
Other debt investment	13		1,000,000,000.00		Bonds payable	42	15,847,304,180.83		9,748,655,829.46
Held-to-maturity investments	14				Long-term payables	43	9,711,746,243.36		2,965,437,434.02
Long-term receivables	15	2,000,000,000.00	2,000,000,000.00		Estimated liabilities	44
Long-term equity investments	16	2,410,689,480.69	2,872,080,149.65		Deferred income	45	537,215,485.85		503,809,020.31
Investment in other equity	17	111,000,782.51	111,000,782.51		Deferred tax liabilities	46	304,717,554.37		298,129,117.61
instruments
Investment property	18				Other non-current liabilities	47
Fixed assets	19	53,939,321,545.18	46,967,693,013.92
Construction in progress	20	1,246,098,418.34	1,468,814,684.92		Total non-current liabilities		26,795,983,464.41		14,014,031,401.40
Biological assets for	21
production
Oil and gas assets	22				Total liabilities:		81,950,782,137.93		73,794,572,221.04
Intangible assets	23	4,634,351,596.58	4,566,431,704.25
Development expenses	24				Shareholders' equity:
Goodwill	25	311,768,933.61	311,768,933.61		Share capital	48	13,000,000,000.00		13,000,000,000.00
Long-term prepaid expenses	26	1,899,511.23	1,424,633.43		Capital reserve	49	4,026,911.53		4,172,005.28
Deferred tax assets	27	1,913,543,512.29	1,988,744,509.62		Less: Treasury Share	50
Other non-current assets	28	187,062,109.98	202,680,359.92		Other comprehensive income	51	-1,919,041.77		-1,915,377.38
					Special reserve	52	340,052,733.57		388,297,540.78
Total non-current assets:		66,755,735,890.41	61,490,638,771.83		Surplus reserve	53	3,332,910,751.32		3,332,910,751.32
					Undistributed profits	54	37,451,258,293.04		40,714,040,183.23
					Minority interests	55	9,434,570.08		14,909,766.29
					Total shareholders' equity:		54,135,764,217.77		57,452,414,869.52
TOTAL ASSETS		136,086,546,355.70	131,246,987,090.56		TOTAL LIABILITIES AND		136,086,546,355.70		131,246,987,090.56
					OWNERS' EQUITY
Person-in-charge of	Person-in-charge of		Person-in-charge of
corporate:		accounting:		accounting institution:
Zhang Bo		Zhang Ruilian		Ma Fei

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CONSOLIDATED INCOME STATEMENT
Prepared by Shandong Weiqiao Aluminum & Power Co., Ltd.		January to June 2020	Units: RMB
				Amount for the	Accumlated
Item		Row		corresponding	Amount for the
				period last year	current year
I. Operating income		1		35,371,853,890.47	36,467,456,738.62
Less: Operating cost		2		28,867,281,070.22	30,801,434,773.08
Taxes and surcharges		3		372,711,663.96	304,912,715.33
Selling expenses		4		298,845,681.36	160,709,331.31
Administrative expenses		5		834,581,177.35	940,289,795.64
Research and development expenses		6		285,192,097.04	307,493,487.23
Financial expenses		7		1,470,113,906.62	1,165,401,040.15
Of which: Interests expenses		8		1,536,221,686.79	1,184,648,614.29
Interests income		9		96,823,747.64	121,363,950.09
Add: Other gains		10		9,111,035.72	101,083,825.50
Investment gains(Losses are indicated by "-")	11		36,294,074.26	270,167,964.49
Gains from changes in fair value		12		53,625.00	2,072,136.00
(Losses are indicated by "-")
Credit impairment losses		13		-264,225.20	-21,540,670.88
(Losses are indicated by "-")
Asset impairment losses		14		-1,116,882,498.88	-197,218,272.57
(Losses are indicated by "-")
Gains on disposal of assets (Losses are	15			785,254,689.31
indicated by "-")
II. Operating profit (Losses are indicated by "-")	16		2,171,440,304.82	3,727,035,267.73
Add: Non-operating income		17		123,000,775.00	60,165,729.13
Less: Non-operating expenses		18		635,955.65	6,695,677.78
III. Total profit (Losses are indicated by "-")		19		2,293,805,124.17	3,780,505,319.08
Less: Income tax expenses		20		696,517,829.29	518,278,232.69
IV. Net proft (Losses are indicated by "-")		21		1,597,287,294.88	3,262,227,086.39
(I) Net profit from continuing operations		22		1,597,287,294.88	3,262,227,086.39
(Net loss is indicated by "-")
(II) Net profit from discontinued operations		23
(Net loss is indicated by "-")
Person-in-charge of	Person-in-charge of	Person-in-charge of
corporate:	accounting:	accounting institution:
Zhang Bo	Zhang Ruilian		Ma Fei

By Order of the Board

China Hongqiao Group Limited

Mr. Zhang Bo

Chairman

Shandong, the People's Republic of China

31 August 2020

As at the date of this announcement, the Board comprises nine directors, namely Mr. Zhang Bo, Ms. Zheng Shuliang, and Ms. Zhang Ruilian as executive directors, Mr. Yang Congsen, Mr. Zhang Jinglei and Mr. Chen Yisong (Mr. Zhang Hao as his alternate) as non-executive directors, and Mr. Xing Jian, Mr. Han Benwen and Mr. Dong Xinyi as independent non-executive directors.

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