Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. 中國交通建設股份有限公司 CHINA COMMUNICATIONS CONSTRUCTION COMPANY LIMITED (A joint stock limited company incorporated in the People’s Republic of China with limited liability) (Stock Code: 1800) ANNOUNCEMENT OF ANNUAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2019 FINANCIAL HIGHLIGHTSNote Revenue of the Group in 2019 amounted to RMB552,542 million, representing an increase of RMB63,876 million or 13.1% from RMB488,666 million in 2018. Gross profit in 2019 amounted to RMB69,131 million, representing an increase of RMB4,520 million or 7.0% from RMB64,611 million in 2018. Operating profit in 2019 amounted to RMB34,071 million, representing an increase of RMB750 million or 2.3% from RMB33,321 million in 2018. Profit attributable to owners of the parent in 2019 amounted to RMB20,094 million, compared with RMB19,819 million in 2018. Earnings per share for the year 2019 amounted to RMB1.16, same as that for the year 2018. The value of new contracts in 2019 amounted to RMB962,683 million, representing an increase of 8.1% from RMB890,873 million in 2018. As at 31 December 2019, the backlog for the Group was RMB1,999,086 million. The Board has proposed a final dividend of RMB0.23276 per share (tax inclusive) for the year ended 31 December 2019, subject to Shareholders’ approval. Note: In calculating the amount of basic earnings per share, the interests/dividends with an aggregate amount of approximately RMB1,284 million shall be excluded from profits. – 1 – CHAIRMAN’S STATEMENT In 2019, facing a complex situation with significantly increasing risks and challenges at home and abroad, the Company, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and relying on the strategy of “experts in five areas” and the position of “three roles”, advanced various work such as reform, development and Party building as a whole, and successfully accomplished all targets and tasks. Firstly, our quality and efficiency steadily improved. Revenue of the Group was RMB552,542 million, representing a year-on-year increase of 13.1%; net profit attributable to the shareholders of the Company amounted to RMB20,094 million, representing a year-on-year increase of 1.4%; and earnings per share was RMB1.16. The reduction of leverage and debt achieved results with the total asset-liability ratio decreasing to 73.6%, representing a year-on-year decrease of 1.5 percentage points. Market expansion was carried out smoothly with sufficient order backlog, and new contracts value amounted to RMB962,683 million, representing a year-on-year increase of 8.1%. As at 31 December 2019, the backlog of the Group amounted to RMB1,999,086 million, which provided strong support and guarantee for sustained and steady development of the Company. Secondly, comprehensive reform was deepened constantly. We advanced pilot reforms on state- owned capital investment companies, published and implemented the “Provisional Measures on Standardizing the Operation of the Board of Affiliated Enterprises”, and established and promoted a classified and multi-level authorization scheme. We boosted reform on the functions of the Company’s headquarters, and explored flat, “giant department-based” and “project-based” management, aiming to improve operation efficiency and service capacity. In order to mobilize the initiative and creativity of our employees, we promoted the establishment of a differentiated income distribution system through formulating the “Guidelines on Deepening the Reform on Differentiated Income Distribution”. We have also implemented the “Administrative Measures on Medium and Long-term Incentives” and its implementing rules to explore diversified incentives such as equity incentive and follow-on investment. Thirdly, remarkable results were achieved on technological innovation. The “Self-Development and Industrialization of Large Marine Cutter-suction and Dredging Equipment” was awarded the grand prize of the National Science and Technology Advancement Award, marking a milestone for technological innovation. We have won 2 second-class prizes of the National Science and Technology Advancement Award, 17 Luban Awards, 4 Zhan Tianyou Awards and 5 Chinese Outstanding Patent Awards. Our technological investments changed from capital injection to a combination of capital injection and investments, which fully demonstrates the innovation capability of the Company and laid a solid foundation for its stable development. – 2 – Fourthly, we integrated ourselves deeper into the “Belt and Road Initiative”. We participated in the second Belt and Road Forum for International Cooperation in an all-around way, signing projects with indicative amounts of more than USD30,000 million. Phase I of Nema Railway has officially been put into operation, which was praised as the “witness of the deepening friendly relations and cooperation between China and Africa”. After eight months of negotiation and with the concerted efforts of all parties, the Malaysia East Coast Rail Link Project has resumed construction. A consortium of the Company won the bid for Bogota Metro Line 1 Project in Columbia, writing another new chapter of the Company in the overseas rail transit market. A number of our overseas projects have won the Luban Awards, National Quality Project Awards and ENR awards, setting another batch of examples of our landmark projects, quality projects and livelihood projects in overseas markets. Fifthly, the foundation of our management was further strengthened. We vigorously boosted the “334” program and target management. We carried out a theme year activity of “Reform Adjustment and Quality Improvement”. Project management was continuously improved, and the establishment of a project management system at the Company level was carried out. We put more efforts on subcontracting management and established a negative list of subcontracting management. Efforts were also put on the management of projects under our direct management and planning has played its part in value creation and driving growth. Besides, we continued to strengthen human resources management, information construction and internal control management. Sixthly, new achievements were made in the Party building. We firmly adhered to the general requirements of “keeping original aspiration, assuming missions, finding shortcomings and focusing on implementation” and launched an educational campaign on the theme of “remaining true to our original aspiration and keeping our mission firmly in mind “ in two times. A set of concerns raised by our employees and the public were fully resolved, and the Party members and cadres forged ahead with determination and in an innovation and enterprising spirit. We realized the Party building with our characteristics in four areas including overseas Party building, project Party building, Party building in mixed-ownership enterprises and Party building for poverty alleviation, and achieved results in the improvement of working practices. As an important holding subsidiary of CCCG, the Company played a decisive role in the business performance of CCCG. In 2019, in the Operating Results Assessment of Centrally-administered State-owned Enterprises conducted by the SASAC, CCCG has been rated as a Grade A enterprise for the fourteenth consecutive years. CCCG has also been rated as a Grade A enterprise in the Party Building Accountability Assessment conducted by the SASAC in consecutive years. CCCG has ranked the first among Chinese enterprises in ENR’s Top International Contractors for the thirteenth consecutive years. Meanwhile, CCCG ranked the 93rd in the Fortune Global 500. – 3 – In 2020, based on comprehensive analysis of the economic environment at home and abroad, we will objectively assess the general trend of the infrastructure industry turning from incremental competition to stock competition, and firmly grasp the new direction of national strategic development and the new market opportunities arising from the improvement of the weak links in the infrastructure industry, city development and technological innovation. These will be of great significance to accomplish our targets and goals for the year. In respect of the operation goals in 2020, the Company plans to achieve a year-on-year increase of 8% in the value of new contracts and 8% in revenue. In addition, the Company strives to further improve the operation quality with the asset-liability ratio remained below 75% and the operating margin improved by 0.1 percentage point, and also to increase research and development investments by 0.1 percentage point. The Company will also endeavor to reduce total interest-bearing liabilities, control the increase in cost expenses within reasonable range, maintain stable administrative costs excluding employee remuneration and ensure the increase in “two reserves” not exceeding the increase in revenue for the same period. This year, in addition to accomplishing its annual operating targets, the Company will focus on achieving “five effective implementations”, which are the effective implementation of measures for high quality and stable growth, the effective implementation of measures for the completion of “three critical missions”,