[For Immediate Release] 9 May 2017

BMEDI Enters International Capital Market
Collaborates with C Cheng Holdings to Create a New Era for Urban Development

[May 9, 2017 - Hong Kong] Beijing General Municipal Engineering Design & Research Institute Co., Ltd. ("BMEDI") and C Cheng Holdings Limited ("C Cheng Holdings"; Stock Code: 1486), jointly held a press conference today in Hong Kong to detail their latest strategic cooperation initiative. The two parties are pleased to announce that BMEDI has successfully entered the international capital market, and will work with C Cheng Holdings in pursuing a "Techonology + Capital" dual-development initiative. The two parties will collaborate in areas such as expanding services in the value chain and increase geographical coverage of their engineering consultation and design services; exploring business opportunities arising from the "Belt & Road" initiative, and taking an active role in Beijing-Tianjin-Hebei integration, as well as development of the Xiongan New Area and Guangdong-Hong Kong-Macau Bay Area.

C Cheng Holdings Limited - Integrated Services Provider in Architectural Design
C Cheng Holdings is a comprehensive architectural design services provider specializing in architectural design, landscape design, urban planning, interior design, and heritage conservation in Hong Kong and China. C Cheng Holdings is the only integrated services provider listed on the Hong Kong Stock Exchange, and has comprehensive business coverage of the Greater China region. The company is headquartered in Hong Kong, and has branch offices in Shenzhen, Guangzhou, Shenyang, Shanghai, Chongqing and Manila. Well qualified, C Cheng Holdings' achievements include inclusion in the first category list of consultants of the Architectural and Associated Consultants Selection Board (AACSB), and was awarded Class A qualification from the China Construction Industry (Architectural Design Qualification). It has been involved in various notable projects including the International Finance Square in Chengdu, TaiKoo Hui in Guangzhou, and The One in Tsim Sha Tsui, Hong Kong.

BMEDI - Comprehensive Design Services Provider in Urban Infrastructure
Founded in 1955, BMEDI is a wholly-owned subsidiary of Beijing Enterprises Group Co., Ltd., and has Grade A comprehensive engineering design qualification in China. As a modern design focused corporation, its business mainly centers on consultation and design, and is capable of serving every aspect of projects in top-tier national and international cities, covering the full life cycle of urban infrastructure while at the same time complementing and facilitating national development strategies.

BMEDI places heavy emphasis on talent acquisition, and has more than 2,500 employees including world-renowned design masters, well-known academic leaders and professional technicians. In particular, it has 11 National Geo-Engineering and Design Masters; 11 experts enjoying special treatment for prominent contributions in Beijing and at the national level; 7 National New Century Talents; 60 experts entitled for special government subsidies and an innovative team covering all aspects of integrated services. Supported by all this talent, BMEDI has been named "National High-Tech Enterprise", "Zhongguancun National Indigenous Innovation Demonstration Zone", "Advanced Unit of Geo-Engineering and Design in China" and "Beijing Design Innovation Center".

BMEDI understands that moving forward requires technological innovation, hence the reason why it has set up an engineering and technology research center which serves as its R&D and innovation platform, and has undertaken a large number of major national scientific and technological projects, including those with the Ministry of Science and Technology, and the Beijing Municipal Government and other ministries. In addition, as BMEDI owns independent intellectual property rights and core technologies, it is responsible for drafting and editing more than 100 national and industry specifications and guidelines. Over the past 30 years, it has been awarded with more than 1,000 accolades, spanning consultation and surveying to design and technologies - received from the national, ministerial, and municipal level - including winning 17 "Tien-yow Jeme Civil Engineering Grand Awards", 30 gold and silvers of "State Excellent Design Awards", 15 gold and silver awards of State Outstanding Geo-engineering Awards"; and 37 "National Awards for Outstanding Engineering Projects".

BMEDI - Flagship Projects

Since its establishment 62 years ago, BMEDI has been growing along with key regional cities, and its footprint now covers most areas of the country. From 1984, when the industry started to become market-driven, to the present, BMEDI has completed projects with a total investment value of approximately RMB600 billion. Moreover, 10,546 km of roads have been constructed, 3,587 bridges built, 732 km railways formed, and more than 225 water purification and sewage factories created as at the end of 2016. In terms of design and technological capabilities, BMEDI has also received high praise and recognition, especially for its contribution to the modernization and development of Beijing and 193 other cities in around the world.

Flagship projects that are underway:

- The Sub-center of Beijing City - The Sub-center of Beijing City is located in the Southeast region of the capital, with a planned GFA of approximately 155 sq. km. BMEDI has been taking an active role in this landmark project, by participating in the design and construction of the core business area around the canal, the administrative area that is currently under constrction, the Tongzhou cultural tourism area, the connecting transportation facilities, and the water discharge and management system. The project further highlights its service scope as it consists of various aspects of a city, such as roads, water supply and drainage, environmental protection, landscaping, railway and integrated corridors.

- Beijing New Airport - The airport is located south of the capital, and represents an international aviation hub situated along the Beijing and Hebei Langfang corridor. With this project, BMEDI plays a significant role in the design and construction of its complementary facilities and amenties, which are the keys to the success of an airport. The project consists of an 8 sq. km area that will be used as working area, freight area, maintenance area, terminal area and for municipal works.

- 2022 Winter Olympics Yanqing Division - The Yanqing Division is located approximately 30 km northwest of the center of Beijing's Yanqing District. BMEDI is responsible for road construction of the area, including modification of Song Yan Road, and construction of parking area for the connecting shuttle buses. It is also responsible for the drainage system, the solid waste treatment system, the integrated corridor and pipeline system of the area.

- Beijing-Tianjin-Hebei Railway System - The railway starts from the Northern Beijing Shunyi District, and travels south by the Beijing Airport, passing the sub-center of Tongzhou City and Northern tip of Langfang City, finally concluding at Beijing New Airport. The entire railway is 111.8 km long and has a total of 11 stations. BMEDI is contributing to the most crucial part of the network, which is the inner, semi-circular loop of the railway.

- Nanning Nakao River Basin - Nanning is one of the first pilot sponge cities in China, and the Nakao River Basin is the first water management project in the country that is operated under the PPP model, which will provide valuable information to other similar projects. BMEDI is making use of the advanced concepts and technologies of the sponge city, and is responsible for the design of the LID system, the rainwater storage and distribution system, the ecological restoration system, the water purification system, the sewage treatment and recycling system as well as the intelligent management system.

- Shenzhen Qianhai Project - The project includes the Mawan Harbor Crossing Tunnel, the Shuangjie River Road, Tinghai Road, other underground tunnels, and the reconstruction of Guimiao Road. Specifically, the Mawan Harbor Crossing Tunnel is 7.3 km long and is located in the Western coastal area of Shenzhen. After completion, it will become the first habor crossing tunnel in Shenzhen, and together with the construction of Shuangjie River Road, Tinghai Road and other underground tunnels, the project will become the largest munipcal project in Qianhai. The reconstruction of Guimiao Road is also a part of the promenade where an air purification system will be installed and used for the nearby tunnel - a first-of-its-kind project in China.

On April 3, 2017, BMEDI subscribed to 79,473,780 new shares issued by C Cheng Holdings at HKD1.99 per share through its wholly-owned subsidiary, Beijing Design Group Co., Ltd. ("Beijing Design"). The total consideration was approximately HKD158 million, and after the transaction, BMEDI held a 28.83% equity interest in C Cheng Holdings, thus becoming its single largest shareholder.

"Three-steps" Strategy - Creating a New Era for City Development
Under the development guidelines of "Globalization, Innovation, and Integration" from Beijing Enterprises Group Co., Ltd., BMEDI has decided to reach out to the Hong Kong capital market, and after in-depth discussions with a number of Hong Kong listed companies, it has finalized a strategic cooperation agreement with C Cheng Holdings as it shares similar business profile and values.

In respect of future development, BMEDI and C Cheng Holdings have devised an unambiguous "Three-steps" strategy. The first step involves the integration of the two parties in terms of business operations, marketing development, administrative support, corporate culture and other aspects. It is important to note that the process has already taken place, as the two parties have been working closely together in such projects as railway integration, road landscaping, and development of sponge cities with the aim of business expansion. The two executive directors and the independent non-executive director nominated by BMEDI have also become directors of the new board of C Cheng Holdings in an attempt to facilitate integration. The second step will be to transform and upgrade [C Cheng Holdings] through economies of scale and acquisitions, enhancing the listed company's overall value and thus improving investors' confidence. The third and final step will involve leveraging the resources and financing platform of the listed company to further accelerate growth through the "Technology + Capital" strategy, with the goal of improving brand equity, capturing opportunities through globalization efforts, and eventually, to complement national development strategies.

Mr. Jiang Xinhao, Deputy General Manager of Beijing Enterprises Group Co., Ltd., said, "Beijing Enterprises has always observed its urban planning business development model, and we believe that the consultation and design segment will play a leading role in our portfolio. We trust that cooperation between BMEDI and C Cheng Holdings will be smooth, and that both parties will be able to execute the development strategies, improve the brand equity of 'Beijing Design', extend the value-chain coverage of our consultation business, and improve business operations and value propositions with the long-term view of reaching the global market."

Mr. Ronald Liang, Chairman of C Cheng Holdings Limited, said, "Looking at the international and domestic markets, it is not difficult to see that the urbanization trend, together with such developments as smart cities, sponge cities, underground integrated corridors, urban development, and urban renewal have brought tremendous opportunities to the industry. C Cheng Holdings and BMEDI will work together to meet national strategies, improve the brand value of 'Beijing Design' and 'LWK', as well as open up new markets with the help of Beijing Enterprises' global network."

Mr. Liu Guisheng, Chairman of Beijing General Municipal Engineering Design & Research Institute Co., Ltd., said, "BMEDI has been focusing on the design and consultation of urban infrastructure for the past 62 years. In accordance with the 'Technology + Capital' strategy, we will promote BEMDI to the international capital market by relying on our strong technical know-how and capital support. In the future, we will strictly observe the laws of Hong Kong, accepting the supervision of the relevant authorities, following the preset rules of operations in the capital market, and achieving business improvement in the near future. We are also determined to pursue our medium and long-term goals of increasing the market orientaiton, capitalization, and internationalization of our business, which in return will deliver rapid growth and strong visibility to our shareholders while contributing to society."

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This press release is issued by DLK Advisory Limited on behalf of Beijing General Municipal Engineering Design & Research Institute Co., Ltd. and C Cheng Holdings Limited.

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