Hebei Construction Group Won Bid for Beijing-Dezhou Expressway Project

Link Xiong’an New Area with Beijing New Airport; Contract amounts approximately RMB1.19 billion

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HONG
KONG, CHINA - Media
OutReach - 15 October 2019 – Hebei Construction Group Corporation
Limited (“Hebei Construction Group” and its
subsidiaries, together, the “Group”, stock code: 1727) is pleased to announce
that the Company received the letter of acceptance, stating that the Company
has won the ZT2 bid section of main body construction project of Beijing-Hebei
boundary to Jinshi Expressway section along Beijing New Airport – Dezhou
Expressway (the “Project”). The contract amount of the Project is
approximately RMB1.19 billion and the construction period is 19 months.  The Project is expected to be completed in
2021.

The Project is located within the jurisdiction of Langfang City, Hebei
Province, which starts from Beijing-Hebei boundary in the east of Jijiazhuang
Village, Gu’an County, Langfang City, and links to Beijing section (the
connecting line between the north and south terminals of the new airport) with
the roadbed being 14 kilometers in length and the road surface being 14.4
kilometers in length. The Project is an integral part of Beijing-Dezhou
Expressway. Upon completion, the Beijing-Dezhou Expressway will become the main
expressway from Xiong’an New Area to Beijing new airport and an important link
between Xiong’an New Area and southeast Hebei and western Shandong.

The Board believes that winning the bid for the Project demonstrates the
Company’s strong strength and leading position in the construction industry in
Hebei Province and will create good opportunities for the Company to further
expand its market and business, improve its profitability and realize
cross-regional development.

Hebei
Construction Group has laid a solid foundation in Hebei Province in its long history.
Leveraging on its high quality construction engineering services and
geographical advantages, the Group has played an important role in the
construction of Beijing new airport and Xiong’an New Area. Being the only non-state-owned
company to participate in the construction of key components of Beijing Daxing
International Airport, the Group has accumulated contract value of more than
RMB3 billion. The development potential of Hebei Xiong’an New Area will
continue to be growth drivers of the Group.

Early this year, the
Central Committee of the Communist Party and the State Council of China have
approved the “Master Plan for the Hebei
Xiong’an New Area 2018-2035″. On October 10, Xiong’an
New Area released the “Notice for
Transfer the Right to the Use of State-owned Construction Land of Xiong’an Business
Service Center Project” ?????????????????????????in which land of
construction projects will be supplied through public transfer of rights. This
implies Xiong’an New Area has transformed from planning stage to full-scale
construction. More infrastructure projects are expected to commence in full
fledge in the future. As one of the leading non-state-owned construction
enterprises in China, the largest non-state-owned construction enterprise in
the Beijing-Tianjin-Hebei region, and the largest construction enterprise in
Hebei Province, the Group is expected to continue to benefit from the coordinated development of Beijing-Tianjin-Hebei and construction
of Xiong’an New Area in the future.

Mr. LI Baozhong, Chairman and Executive Director
of Hebei Construction Group, said, “Beijing
new airport ‘has caught the eye of the entire world and we are the only non-state-owned enterprise to participate in its
construction. Winning the bid for the Beijing-Dezhou Expressway implies that we
will participate in the construction of the main expressway from Xiong’an New
Area to Beijing new airport as well. As a leading player in the construction
industry of Hebei Province, we are set to embrace great
development opportunities from the Beijing-Tianjin-Hebei strategic development
zone and Xiong’an New Area. We
will work closely with the government, financial institutions, central and
state-owned enterprises and major property developers to actively explore
mutually beneficial cooperation opportunities and create more value.”

About Hebei Construction Group Corporation Limited

Hebei Construction Group
Corporation Limited was established in 1952 and rooted in Hebei Province for 67
years. It has benefited from the coordinated development of
Beijing-Tianjin-Hebei and the construction of Xiong’an New Area. The Group has
grown into a leading comprehensive private construction enterprise in China and
has been included in the Fortune 500
Chinese Enterprises (2019). The group mainly provides integrated solutions
for engineering contracting of building construction and infrastructure
projects. According to Frost & Sullivan, Hebei Construction Group is the
largest non-state-owned construction contracting company in
Beijing-Tianjin-Hebei region and the second largest non-state-owned
construction contracting company in China.