CHAIRMAN’S STATEMENT


Dear Shareholders,

On behalf of the board of directors (the “Board”) of the Company, I am pleased to present to you the annual results of the Company for the twelve months ended 31 December 2017 (the “Report Period”), and the operating results of the Company during the said period for your review.

Review

The year 2017 saw continuous deepening of reform and significant achievement in development of the Group. The Company made strenuous efforts in various aspects, including deepening of reform, driving innovation, transformation and upgrade, as well as enhancing quality and efficiency, through which it has achieved enhanced synergy from the restructuring of Jidong, positive innovation of organization, management and control system, significant achievement in green reform and strengthening technological innovation. Relevant key projects progressed in an orderly manner, while strategic expansion and external cooperation were further strengthened. The overall economy of the Company grew steadily at a rapid pace with continuous improvement in quality and efficiency of economic operation. During the Reporting Period, the Company recorded operating revenue of RMB63,678.3 million, representing a year-on-year increase of 33.4%; net profit attributable to the shareholders of the parent company amounted to RMB2,836.7 million, representing a year-on-year increase of 5.6%; basic earnings per share attributable to the shareholders of the parent company amounted to RMB0.27, representing a year-on-year increase of 8.0%.

Prospects

2018 is a critical year for implementing the 13th Five-Year Plan. It is expected that the global economy will continue to recover, yet there still remain numerous instabilities and uncertainties. With guidance of the new development concept, the Chinese economy will continue to adhere to the key note of making progress while maintaining stability with a focus on changes in major social contradictions, and take supply-side structural reform as its main task in accordance with the requirements of quality development, with a view to keeping all works and plans in progress and maintaining continuous and sound development. Meanwhile, the Company will closely adhere to the positioning of functions of Beijing, the synergetic development of Beijing, Tianjin and Hebei Province and the strategic requirements of the new master plan for Beijing to adopt precise positioning and active initiatives to accelerate its transformation and upgrade and enhance the quality of its development, with a view to making its businesses stronger, better and larger and achieving a new round of leap-forward development for BBMG.

In respect of the cement and ready-mixed concrete segment, the Company will further enhance the synergy brought by the restructuring of BBMG and Jidong. In particular, the cement business will aim at optimizing its regional market layout and enhancing its core competitiveness. It will strive to further increase the concentration level of it production capacity and maintain sound market order by enhancing business strengths in core areas, improving quality in key areas and activating the regional network. As for concrete business, leveraging the cement sub-group as platform, the Company will establish an operation system with centralized operation, synergetic efficiency and strong management and control, and further strengthen its flat, professional and regional management. In respect of modern building materials and commerce and logistics segment, the Company will further enhance its fundamental management, utilize its advantages in terms of production capacity, strengthen technological innovation and enhance the technical content of its products with a view to creating unique products. In respect of property development segment, leveraging the property development sub-group as platform, the Company will seriously examine the industry policies to accurately capture market trends, at the same time continuing to optimize its operation and management model to enhance operation efficiency and quality. As for the property investment and management segment, the Company will focus on the establishment of “Four Centers” in Beijing to fully explore and utilize the stock resources of the Company’s real estate with a view to fully enhancing the quality and momentum of its development.

Lastly, on behalf of the Board, I would like to express my gratitude to the shareholders and business partners of the Group for their support and assistance over the Reporting Period. I hope to continue walking hand-in-hand and creating a win-win future with you in the new voyage.

Jiang Deyi
Chairman of the Board
Beijing, the PRC
29 March 2018