2010-09-16 21:25:00

ANNOUNCEMENT PURSUANT TO RULE 13.09(1) OF THE LISTING RULES : APPROVAL OF ISSUE OF MEDIUM-TERM NOTES IN THE PRC

1 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. 北京金 隅股份有限公 司 BBMG Corporation* (a joint stock company incorporated in the People’s Republic of China with limited liability) (Stock Code: 2009) ANNOUNCEMENT PURSUANT TO RULE 13.09(1) OF THE LISTING RULES APPROVAL OF ISSUE OF MEDIUM-TERM NOTES IN THE PRC This announcement is made pursuant to Rule 13.09(1) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. Reference is made to the announcement of BBMG Corporation (the “Company”) dated 9 September 2010 in relation to the approval of issue of medium-term notes (the “Medium-term Notes”) with a total amount of RMB2.8 billion in tranches in the PRC by the National Association of Financial Market Institutional Investors ( 中國銀行間市場交易 商協會). The Company will issue the first tranche of the Medium-term Notes with a total amount of RMB2.0 billion with a term of 5 years with an interest rate to be determined after the book- building procedure is completed. It is expected that the Company will publish the relevant information in relation to the issue of the Medium-term Notes on the websites of ChinaBond (http://www.chinabond.com.cn) and ChinaMoney (http://www.chinamoney.com.cn), respectively, on 17 September 2010. In accordance with the requirements of the National Association of Financial Market Institutional Investors, the Company is required to publish its financial information which consist of consolidated balance sheet as at 30 June 2010 and consolidated income statement and consolidated cash flow statement for the six months ended 30 June 2010. The financial information for the six months ended 30 June 2010 is unaudited and was prepared in accordance with the PRC GAAP. 2 FINANCIAL INFORMATION FOR THE SIX MONTHS ENDED 30 JUNE 2010 CONSOLIDATED BALANCE SHEET OF THE COMPANY AS AT 30 JUNE 2010 Unit: RMB ITEMS As at 30 June 2010 Cash and cash equivalents 4,050,691,998.91 Bills receivable 521,623,165.89 Accounts receivable 2,070,695,343.38 Prepayments 1,133,301,753.80 Interest receivable 3,022,605.22 Others receivable 1,808,138,333.63 Inventories 16,475,946,320.02 Including: Raw materials 737,361,274.61 Stocks 608,343,840.11 Other current assets 45,542,027.35 Total current assets 26,108,961,548.20 Financial assets available for sale 7,700,659.41 Long-term equity investments 567,818,496.58 Investment properties 9,153,171,435.06 Costs of fixed assets 11,701,636,571.96 Less ：Accumulated depreciation 3,698,631,748.75 Net fixed assets value 8,003,004,823.21 Less ：Provision of diminution of fixed assets 51,689,527.74 Net book value of fixed assets 7,951,315,295.47 Construction-in-progress 2,423,121,419.56 Construction materials 47,752,645.56 Intangible assets 1,982,229,877.34 Goodwill 313,558,745.55 Long-term deferred expenditures (deferred assets) 29,621,786.85 Deferred income tax assets 391,278,629.31 Other non-current assets (other long-term assets) 1,203,132.06 Total non-current assets 22,868,772,122.75 Total assets 48,977,733,670.95 3 CONSOLIDATED BALANCE SHEET OF THE COMPANY AS AT 30 JUNE 2010 (continued) Unit: RMB ITEMS As at 30 June 2010 Short-term borrowings 6,529,870,812.17 Bills payable 214,208,299.23 Accounts payable 2,545,885,774.92 Payments received in advance 5,655,978,464.58 Staff remuneration payables 79,230,502.27 Including: Wages payable 19,533,148.24 Welfares payable 4,841,486.24 Taxes and dues payable 383,201,199.16 Including ： Taxes payable 387,443,030.98 Interests payable 1,272,952.17 Other payables 2,356,870,206.95 Non-current liabilities due within one year 2,042,500,000.00 Other current liabilities 1,303,350,609.32 Total current liabilities 21,112,368,820.77 Long-term borrowings 6,083,607,233.00 Debentures payable 1,895,989,662.12 Long-term payables 548,826,476.72 Special payables 138,263,249.02 Accrued liabilities 79,457,493.59 Deferred income tax liabilities 1,394,830,437.59 Other non-current liabilities 252,474,382.65 Total non-current liabilities 10,393,448,934.69 Total liabilities 31,505,817,755.46 Paid-in capital (share capital) 3,873,332,500.00 Corporate capital 2,365,470,065.00 Including: State-owned corporate capital 2,182,970,065.00 Foreign capital 1,507,862,435.00 Net paid-in capital (or share capital) 3,873,332,500.00 Capital surplus 6,064,254,993.42 Surplus reserve 1,114,907.86 Including: Legal reserve fund 1,114,907.86 Undistributed profit 5,446,619,575.99 Total shareholders’ equity attributable to equity holders of parent company 15,385,321,977.27 Minority interests 2,086,593,938.22 Total shareholders’ equity 17,471,915,915.49 Total liabilities and shareholders’ equity 48,977,733,670.95 4 CONSOLIDATED INCOME STATEMENT OF THE COMPANY FOR THE SIX MONTHS ENDED 30 JUNE 2010 Unit: RMB ITEMS For the six months ended 30 June 2010 1. Total operating revenue 8,422,266,167.24 Including: Operating revenue 8,422,266,167.24 Including: Revenue from principal business 8,098,498,029.04 Revenue from other business 323,768,138.20 2. Total operating costs 7,636,153,766.33 Including: Operating costs 6,151,676,893.12 Including: Costs for principal business 6,037,333,971.16 Costs for other business 114,342,921.96 Business tax and surcharges 381,178,913.38 Selling expenses 327,305,470.98 Management expenses 643,170,348.75 Including: Entertainment expenses 21,789,994.18 Research and development expenses 15,464,407.25 Financial expenses 126,734,024.85 Including: Interest expenses 136,955,803.45 Interest income 19,511,459.46 Net loss from foreign currency translation 2,682,656.59 Loss from asset devaluation 6,088,115.25 Add: Profit from fair value changes 374,310,617.44 Investment income 28,418,301.81 Including ：Investment income from associated companies and jointly controlled entities -15,535,413.28 3. Operating profit 1,188,841,320.16 Add: Non-operating income 312,662,462.03 Including: Profit from disposal of non-current assets 9,957,930.58 Government subsidies 236,863,225.47 Profit from debt-restructuring 43,320.00 Less: Non-operating expenses 25,167,537.43 Including: Loss from disposal of non-current assets 16,415,316.37 Loss from debt-restructuring 3,919,771.09 4. Total profit 1,476,336,244.76 Less: Income tax expenses 362,348,200.42 5. Net profit 1,113,988,044.34 Net profit attributable to equity holders of parent company 1,013,760,495.60 Net profit attributable to minority shareholders 100,227,548.74 6. Other comprehensive income 71,668,577.76 7. Total comprehensive income 1,185,656,622.10 Net comprehensive income attributable to equity holders of parent company 1,084,468,076.46 Net comprehensive income attributable to minority shareholders 101,188,545.64 5 CONSOLIDATED CASH FLOW STATEMENTS OF THE COMPANY FOR THE SIX MONTHS ENDED 30 JUNE 2010 Unit: RMB ITEMS For the six months ended 30 June 2010 1. Cash flow from operating activities Cash received from product sales and rendering of services 9,215,712,256.89 Refund of taxes and levies received 168,861,557.91 Other cash received relating to operating activities 764,532,932.62 Sub-total of cash inflow from operating activities 10,149,106,747.42 Cash paid for purchase of goods and services received 12,263,907,544.35 Cash paid to and on behalf of employees 527,620,691.69 Payments of all types of taxes and surcharges 1,038,186,956.34 Other cash paid relating to operating activities 1,000,116,100.22 Sub-total of cash outflow from operating expenses 14,829,831,292.60 Net cash flow from operating activities -4,680,724,545.18 2. Cash flow from investment activities Cash received from disposals of investments 60,232,804.77 Cash received from returns on investments 617,851.19 Net cash received from disposals of fixed assets, intangible assets and other long-term assets 68,285,813.40 Sub-total of cash inflow from investment activities 129,136,469.36 Cash paid to acquire fixed assets, intangible assets and other long- term assets 2,652,119,167.34 Net cash paid to acquire subsidiaries and other operating entities 1,585,226,424.87 Sub-total of cash outflow from investment activities 4,237,345,592.21 Net cash flow generated from investment activities -4,108,209,122.85 3. Cash flows from financing activities Cash received from investments 560,000.00 Including: Cash received by subsidiaries from investments of minority shareholders 560,000.00 Cash received from borrowings 11,465,129,812.17 Other cash received relating to financing activities 154,988.73 Sub-total of cash inflow from financing activities 11,465,844,800.90 Cash paid for repayment of borrowings 4,500,000,000.00 Cash paid for dividend, profit appropriation or interest expenses 424,022,740.68 Including: Cash paid by subsidiaries to minority shareholders for dividend and profit 13,360,397.75 Sub-total of cash outflow from financing activities 4,924,022,740.68 Net cash flow from financing activities 6,541,822,060.22 4. Effect on cash and cash equivalents due to change in foreign exchange rate -2,480,070.31 5. Net increase in cash and cash equivalents -2,249,591,678.12 Add: Cash and cash equivalents at beginning of period 6,101,168,698.83 6. Cash and cash equivalents at end of period 3,851,577,020.71 6 The investors and potential investors in H Shares should not rely on information published or disseminated from the PRC when they deal, or contemplate dealing, in the H Shares or other securities of the Company. By order of the Board BBMG Corporation* Jiang Weiping Chairman Beijing, the PRC, 16 September 2010 As at the date of this announcement, the executive Directors are Jiang Weiping, Li Changli, JiangDeyi, Shi Xijun, Wang Hongjun and Deng Guangjun; the non-executive Director is Zhou Yuxian; and the independent non-executive Directors are Hu Zhaoguang, Xu Yongmo, Zhang Chengfu and Yip Wai Ming. * English translation denotes for identification purposes only

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