BBMG Corporation — Regulatory Filings 2017

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.

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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)

OVERSEAS REGULATORY ANNOUNCEMENT

This overseas regulatory announcement is made by BBMG Corporation* (the “ Company ”) pursuant to Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

The content of the following information published by the Company on 29 August 2017 regarding change of accounting policy on the website of the Shanghai Stock Exchange is set out herein for reference purpose only.

By order of the Board BBMG Corporation Jiang Deyi* Chairman

Beijing, the PRC, 29 August 2017

As at the date of this announcement, the executive directors of the Company are Jiang Deyi, Zeng Jin, Wu Dong and Zheng Baojin; the non-executive director of the Company is Guo Yanming; and the independent non-executive directors of the Company are Wang Guangjin, Tian Lihui, Tang Jun and Ngai Wai Fung.

• English translation denotes for identification purposes only

Announcement On the Change of Accounting Policy

Stock Code: 601992 Stock short name: BBMG No.: Lin 2017 － 070

BBMG Corporation

Announcement on the Change of Accounting Policy

The Company and all directors warrant that there are no false representations, misleading statements or material omissions contained in the contents of this announcement, and jointly and severally accept responsibility for the truthfulness, accuracy and completeness of its contents.

Important Notice:

The change of accounting policy will not affect the Company’s total assets, net assets and net profits or involve any retroactive adjustment to prior years.

1. Summary on the Change of Accounting Policy

On 10 May 2017, the Ministry of Finance amended the Accounting Standards for Business Enterprises No. 16 - Government Grants to require all enterprises that implemented Accounting Standards for Business Enterprises to implement such amended standard from 12 June 2017. Due to such amendment, the Company shall change its current accounting policy accordingly and implement the foregoing amended accounting standard for business enterprises as of the date as specified in the forgoing document.

On 29 August 2017, the Company held the 22[nd] meeting of the fourth session of the board of directors and the 14[th] meeting of the fourth session of the supervisory board, on which, the Proposal on the Change of Accounting Policy was considered and passed. It was not necessary to submit the change of accounting policy to the general meeting for consideration.

2. Effect of the Change of Accounting Policy to the Company

According to the relevant provisions of the Accounting Standards for Business Enterprises

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Announcement On the Change of Accounting Policy

No. 16 - Government Grants, the Company shall, from 1 January 2017, differentiate government grants related to the Company’s daily business activities from those not related to the Company’s daily business activities by economic business substance of the government grants included i nto the current period profit and loss. Meanwhile, the Company will also separately present “other gains” before the “operating profit” item in the income statement; include the government grants related to the Company’s daily business activities into other gains or offset the corresponding costs and expenses against such government grants; and include the government grants not related to the Company’s daily business activities into non-operating revenue and expenses. Therefore, during the first half of 2017, the amount of the Company’s other gains increased by RMB255,474,156.38 and the amount of its non-operating revenue during the reporting period decreased by RMB255,474,156.38.

The change of accounting policy would only affect the presentation of foregoi ng items listed in the financial statements and will not affect the Company’s total assets, net assets and net profit in the semi-annual financial report of 2017, or involve any retroactive adjustment to prior years.

3. Opinions of Independent Directors and Board of Supervisors

The independent directors believe that the accounting policy of the Company was changed according to the relevant rules and provisions promulgated by the Ministry of Finance; that the accounting policy after the change complies with the related requirements of the Ministry of Finance, China Securities Regulatory Commission and Shanghai Stock Exchange; that the change can objectively and fairly reflect the Company’s current financial position and operating results and is in line with the interests of the Company and all of its shareholders; and that the decision-making procedures for the change of accounting policy have complied with the requirements of relevant laws, regulations and the Articles of Association of the Company.

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Announcement On the Change of Accounting Policy

Therefore, the independent directors approved the change of accounting policy of the Company.

The supervisory board believes that the Company reasonably made the change to its accounting policy according to the specific standards of the accounting standards amended by the Ministry of Finance; that such change objectively and fairly reflected the Company’s financial position and operating results; that the related decision-making procedures of the change have complied with the requirements of relevant laws, regulations and the Articles of Association of

the Company; and that the interests of the Company and all of its shareholders were and would

not be damaged. Therefore, the supervisory board approved the change of accounting policy of the Company.

Announcement is hereby given.

Board of Directors of

BBMG Corporation

30 August 2017

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