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. 中國能源建設股份有限公司 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 (中國葛洲壩集團股份有限公司) (“CGGC”), a subsidiary of the Company, published a summary of its 2016 interim report for the period ended 30 June 2016 (the “CGGC Summary Interim Report”) on the website of the Shanghai Stock Exchange, a reproduction of which is enclosed to this announcement. For the avoidance of doubt, the “Company” contained in the CGGC Summary Interim Report refers to CGGC. The CGGC Summary Interim Report set out below has been prepared in accordance with the People’s Republic of China Generally Accepted Accounting Principles and has not been audited. Shareholders of the Company and potential investors should exercise caution when dealing in the shares of the Company. By Order of the Board CHINA ENERGY ENGINEERING CORPORATION LIMITED* Wang Jianping Chairman Beijing, the PRC 30 August 2016 As at the date of this announcement, the executive directors of the Company are Mr. Wang Jianping, Mr. Ding Yanzhang and Mr. Zhang Xianchong; the non-executive director is Mr. Ma Chuanjing; and the independent non-executive directors are Mr. Ding Yuanchen, Mr. Wang Bin, Mr. Zheng Qiyu and Mr. Cheung Yuk Ming. * For identification purpose only - 1 - Stock Code: 600068 Abbreviation of Stock: Gezhouba China Gezhouba Group Stock Company Limited Summary of 2016 Interim Report - 2 - I. IMPORTANT NOTICE 1.1 This summary of interim report is extracted from the full text of the interim report. For details, investors should read carefully the full text of the interim report which is published on the website of Shanghai Stock Exchange and other websites designated by the China Securities Regulatory Commission. 1.2 Company Profile Stock Profile of the Company Stock class Listing stock Abbreviated Stock code Abbreviated stock exchange stock name name before change A Share Shanghai Stock Gezhouba 600068 / Exchange Contact person and information Secretary to the Board Securities representative Name Peng Liquan Ding Xianyun Telephone 027-59270353 027-59270353 Fax 027-59270357 027-59270357 E-mail address [email protected] [email protected] - 3 - II. MAIN FINANCIAL INDICATORS AND INFORMATION OF SHAREHOLDERS 2.1 Main financial indicators of the Company Unit: Yuan Currency: RMB End of the reporting period End of last year Change (%) Total assets 136,465,865,341.09 127,629,770,969.22 6.92 Net assets attributable to shareholders of the listed Company 23,781,483,743.83 20,240,565,026.16 17.49 Reporting period Corresponding (January-June) period of last year Change (%) Net cash flow from operating activities -6,013,165,936.80 -3,562,857,406.69 N/A Operating revenue 39,276,202,805.91 33,832,401,331.51 16.09 Net profit attributable to shareholders of the listed Company 1,441,569,163.77 1,255,134,431.70 14.85 Net profit after non-recurring profit or loss attributable to shareholders of the listed Company 1,367,614,635.36 1,106,137,453.21 23.64 Weighted average return rate on net assets (%) 6.857 6.518 +0.34 percentage point Basic earnings per share (RMB/share) 0.311 0.273 13.92 Diluted earnings per share (RMB/share) 0.311 0.273 13.92 - 4 - 2.2 Shareholdings of top 10 shareholders Unit: share Total number of shareholders (household) as of the end of the reporting period 302,290 Total number of preferential shareholders (household) with resumed voting rights as of the end 0 of the reporting period Shareholdings of top 10 shareholders Number of shares held subject Nature of Shareholding Number of to selling Number of pledged Name of shareholder shareholder Proportion (%) shares held restrictions or frozen shares China Gezhouba Group Company Limited State-owned 42.34 1,949,448,239 456,201,118 Nil 0 legal person China Securities Finance Corporation Limited State-owned 1.70 78,135,257 0 Nil 0 legal person The National Social Security Fund 103 Composition Other 1.63 74,999,183 0 Nil 0 Central Huijin Asset Management Limited Liability State-owned 1.54 70,785,800 0 Nil 0 Company legal person Boshi Fund – Agricultural Bank of China – Boshi CSI Other 0.59 27,177,300 0 Nil 0 Financial Asset Management Plan Dacheng Fund – Agricultural Bank of China – Dacheng Other 0.59 27,177,300 0 Nil 0 CSI Financial Asset Management Plan ICBC Credit Suisse Fund – Agricultural Bank of China – Other 0.59 27,177,300 0 Nil 0 ICBC Credit Suisse CSI Financial Asset Management Plan Guangfa Fund – Agricultural Bank of China – Guangfa CSI Other 0.59 27,177,300 0 Nil 0 Financial Asset Management Plan Huaxia Fund – Agricultural Bank of China – Huaxia CSI Other 0.59 27,177,300 0 Nil 0 Financial Asset Management Plan Harvest Fund – Agricultural Bank of China – Jiashi CSI Other 0.59 27,177,300 0 Nil 0 Financial Asset Management Plan Southern Fund – Agricultural Bank of China – Southern Other 0.59 27,177,300 0 Nil 0 CSI Financial Asset Management Plan Yifangda Fund – Agricultural Bank of China – Yifangda Other 0.59 27,177,300 0 Nil 0 CSI Financial Asset Management Plan Yinhua Fund – Agricultural Bank of China – Yinhua CSI Other 0.59 27,177,300 0 Nil 0 Financial Asset Management Plan Central Europe Fund – Agricultural Bank of China – Other 0.59 27,177,300 0 Nil 0 Central European CSI Financial Asset Management Plan Description on the connected relationship or acts in concert of the above Among the top 10 shareholders, there is no connected relationship shareholders between the top shareholder and the other shareholders. The Company is also not aware of any connected relationship or acting- in-concert relationship among the other shareholders. Descriptions on the preferential shareholders with resumed voting rights and number of shares held - 5 - 2.3 Total number of preferential shareholders and top 10 preferential shareholders □Applicable 3 Not Applicable 2.4 Change in controlling shareholder or beneficial owner □Applicable 3 Not Applicable III. MANAGEMENT DISCUSSION AND ANALYSIS During the reporting period, under the impact of certain external unfavorable factors such as the sophisticated and volatile international politics and economy, weak recovery of the global economy and the continued domestic economic slowdown, the Company persistently adhered to the essence since the annual work meeting, pushed forward the reformation and innovation, structural adjustment, transformation and upgrading, and technological advance at a faster pace. Accordingly, the external investment was increasing, PPP business developed steadily, project management continued to be consolidated, while the non-construction business rapidly grew and the financing ability was substantially increased, maintaining the positive momentum of a sustainable and healthy development of the Company. During the reporting period, the principal businesses of the Company comprised investment, construction, environmental protection, real estate, cement, civil explosive, equipment manufacturing and finance. During the reporting period, the Company achieved the revenue of RMB39,276,000,000, representing a year-on-year increase of 16.09%; the profit of the operation was RMB2,050,000,000, representing a year-on-year decrease of 0.71%; net profit attributable to the shareholders of the parent company was increased by 14.85% from last year to RMB1,442,000,000. As of the end of the reporting period, the total assets of the Company amounted to RMB136,466,000,000, representing an increase of 6.92% over the beginning of the year. The principal operations of the Company are as follow: 1. Investment During the reporting period, the Company actively implemented the investment strategies, to steadily push forward the investment, acquisition and merger and operation management in respect of emerging businesses such as waterworks, energy and environmental protection, and made breakthrough in overseas investment. Waterworks: During the reporting period, in order to enhance the professional and centralized management of its waterworks business, the Company established China Gezhouba Group Waterworks Operation Co., Ltd. with a registered capital of RMB100 million, which was particularly engaged in the waterworks operation and management of the Company. During the reporting period, the Company completed the acquisition of the remaining 25% equity interest of Kardan Water and subsequently wholly-owned Kardan Water; proposed to acquire 100% equity interest of Hunan Haichuanda Investment Management Co., Ltd. (湖南海川達投資管理有限公司) , which held a total of 7 wastewater treatment plants with - 6 - wastewater treatment capacity of 285,000 tons per day. As of the end of the reporting period, the relevant procedure was under processing. During the reporting period, the Company’s waterwork PPP projects of which construction was underway comprised: Water Diversion Project in Nandu River of Haikou (海口南渡江水務項目) of value RMB3,460,000,000 with construction period of 2 years and term of operation of 30 years; Zhejiang Wenling Wastewater Treatment Project (浙江温嶺污水處理項 目) of value RMB550,000,000 with construction period of 2 years and term of operation of 18 years; Waterwork Project in Zhupi River of Jingmen (荊門竹皮河水務項目) of value RMB1,410,000,000 with construction period of 2 years and term of operation of 28 years.