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