ANNOUNCEMENT CONTINUING CONNECTED TRANSACTIONS PURSUANT TO RULE 14A.60(1) OF THE LISTING RULES

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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. ANNOUNCEMENT CONTINUING CONNECTED TRANSACTIONS PURSUANT TO RULE 14A.60(1) OF THE LISTING RULES BACKGROUND Reference is made to the Previous Announcement pursuant to which the Company has announced the Disposal, the completion of which is subject to the fulfillment of certain conditions precedent set out in the Share Transfer Agreement. Pursuant to the Share Transfer Agreement, the Company as vendor conditionally agreed to dispose of and the Parent Company as purchaser conditionally agreed to purchase the Sale Capital, representing 60% of the entire registered capital of the Target Company. As at the date of this announcement, the Disposal has not been completed. It is anticipated that, immediately after the completion of the Disposal, the Target Company will become a direct subsidiary of the Parent Company. CONTINUING CONNECTED TRANSACTIONS PURSUANT TO RULE 14A.60(1) OF THE LISTING RULES The Parent Company is the controlling shareholder of the Company, holding approximately 56.61% of the issued share capital of the Company as at the date of this announcement. The Parent Company is therefore a connected person of the Company. Prior to the date of this announcement, the Target Company has entered into various continuing transactions with the Company under the Service Agreements. The Target Company will become a connected person of the Company by virtue of being a subsidiary of the Parent Company as a result of the completion of the Disposal. 1

2 Consequently, upon the completion of the Disposal, the continuing transactions contemplated under the Service Agreements will constitute continuing connected transactions of the Company under Chapter 14A of the Listing Rules. LISTING RULES IMPLICATIONS Pursuant to Rule 14A.60(1) of the Listing Rules, the Company is required to comply with the annual review and disclosure requirements under Chapter 14A of the Listing Rules, including publication of an announcement and annual reporting in respect of the continuing connected transactions under the Service Agreements. The Company will further comply with all applicable reporting, disclosure and, if applicable, independent Shareholders approval requirements under Chapter 14A of the Listing Rules upon any variation or renewal of the Service Agreements. BACKGROUND Reference is made to the Previous Announcement pursuant to which the Company has announced the Disposal, the completion of which is subject to the fulfillment of certain conditions precedent set out in the Share Transfer Agreement. Pursuant to the Share Transfer Agreement, the Company as vendor conditionally agreed to dispose of and the Parent Company as purchaser conditionally agreed to purchase the Sale Capital, representing 60% of the entire registered capital of the Target Company. As at the date of this announcement, the Disposal has not been completed. It is anticipated that, immediately after the completion of the Disposal, the Target Company will become a direct subsidiary of the Parent Company. CONTINUING CONNECTED TRANSACTIONS PURSUANT TO RULE 14A.60(1) OF THE LISTING RULES The Parent Company is the controlling shareholder of the Company, holding approximately 56.61% of the issued share capital of the Company as at the date of this announcement. The Parent Company is therefore a connected person of the Company. Prior to the date of this announcement, the Target Company has entered into various continuing transactions under the Service Agreements with the Company. The Target Company will become a connected person of the Company by virtue of being a subsidiary of the Parent Company as a result of the completion of the Disposal. 2

3 Consequently, upon the completion of the Disposal, the continuing transactions contemplated under the Service Agreements will constitute continuing connected transactions of the Company under Chapter 14A of the Listing Rules. The material terms of the Service Agreements and the total service fees that have been received by the Target Company under the Service Agreements are set out below in compliance with Rule 14A.60(1) of the Listing Rules: 1. Agreements entered into in 2017: No. of Agreement 1 1. Provision of general work by Beijing Bowei in relation to safety, operation and services of the baggage system and its relevant areas in T3. 153,017, Conducting of daily operation, drilling, repair, preventive maintenance, urgent repair, hygiene and cleaning, transport of empty trays, safety management and monitoring, spare parts management, operational order management of the baggage system in T3 (including the MAXIMO system) by Beijing Bowei in the distribution area of the baggage system in order to ensure the normal operation of the baggage system and the regularity and effectiveness of each of the sections in the baggage transporting process from when baggage are introduced into the system to when they are released and sorted to the baggage carousels; general coordination and management of the operation of the security equipment related to the baggage system in T3 by Beijing Bowei. 3

4 No. of 3. General management of the baggage system areas in T3 by Beijing Bowei in accordance with the safety management requirements stipulated in the, involving system operation, safety and service within the baggage system, including but not limited to the management of transportation, personnel, materials, construction and operations in the baggage system areas; overall responsibility for safety management by Beijing Bowei, such as fire safety and baggage anti-theft in the said areas of the baggage system in T3. 4. Within the term of the, upon the completion of the technological reform and project upgrades organised by the Company within the baggage system or related to its operation, Beijing Bowei shall accommodate technological verification to be conducted by the Company, and after such verification Beijing Bowei shall be responsible for the operation, usage, repair, maintenance and management of the production facility and equipment, amongst which the management and maintenance of the newly added facilities will be confirmed by a maintenance invoice of the newly added facilities to be entered into by both parties. 5. Provision of operational, repair and maintenance work for the fire shutter doors and four-storey check-in counter linkage doors of the baggage system of T3 by Beijing Bowei. 6. Provision of usage, repair, maintenance, replacement of supplies for equipment such as printers, facsimile machines and toners in the central control room of T3 by Beijing Bowei. 4

5 No. of Agreement 2 Provision of operational, repair and maintenance work for corridor bridges in T3, and repair and maintenance work of the 400Hz static change power supply equipment in T3 by Beijing Bowei, including corridor bridges, bridges of various types, the 400Hz static change power supply, and all ancillary components that are required for the normal operation of the aforesaid equipment. 54,927,400 Agreement 3 Provision of operational, repair and maintenance services of the passenger mass railway transport system in T3, repair and maintenance services of all equipment related to the operation of the APM system, and management of various aspects of the equipment area of the APM system, such as safety by Beijing Bowei. 46,368,500 Agreement 4 The operation, repair and maintenance of the boarding bridges in T1 and T2 by Beijing Bowei, which include the parking bays and the bridges of various types of T1 and T2, among which Beijing Bowei is in charge of the operation of 63 units and the maintenance of 57 units. 31,206,900 Agreement 5 Provision of operational, inspection, repair and maintenance work for equipment within the baggage handling system in T1 and T2 (except for aisles Q and V); hygiene and cleaning services for the lower part of the weighing and conveying belts of the check-in counters within the baggage system in T1 and T2; cleaning services for the exterior decorative panels, protective panels and the surfaces of the repair platforms in the baggage system in T1 and T2 by Beijing Bowei. 41,404,500 The above scope and areas may be expanded, and the Company has the right to make practical adjustments based on the operation of the work entrusted upon Beijing Bowei. 5

6 No. of Agreement 6 Provision of management services by Beijing Bowei, such as preventive repair, operational safeguard, daily repair and maintenance (including five-way intercommunication, monitoring system and transmission cables) and operational monitoring on-duty staffing, for the lifts, escalators and walkways in T3. 21,889,950 Including installation of voice announcement and prompting device in addition to the original foundation of the lifts and escalators and walkways in T3; and installation of energy-saving working conditions and protective brush device to the escalators and walkways. Agreement 7 Provision of operational, inspection, repair and protection and maintenance services of the electronic facilities systems in T1 and T2 by Beijing Bowei, including the below systems: internal communication system; public announcement system; flight status display system (including operational system, flight display software and other auxiliary software); close-circuit television surveillance system (CCTV); cable television system (CATV); clock system; integrated wiring system; wireless forwarding system; uninterruptible power supply (UPS); access control system and equipment; passengers boarding bridge cost management system; building automation system; smart lighting control system; flight transit process monitoring and related systems; customer service centre monitoring and customer service related equipment; access control monitoring linkage system in T1 (including some monitoring in T2); operational command centre system and related equipment; lift and escalator monitoring system in T1 and T2; and one-click traveller inquiry system, etc.. 20,985,400 6

7 No. of Agreement 8 Provision of operational safeguard, daily repair and maintenance, operational monitoring on-duty staffing, specialized repair and protection services for the electrical and mechanical equipment and system in T1 and T2 by Beijing Bowei. 14,192,760 To be specific, the scope of services includes: installation of voice station reporting and prompting device in addition to the original foundation of lifts, escalators and walkways in T1 and T2; installation of energy-saving working conditions and protective brush device to escalators and walkways; fiveway intercommunication system; status monitoring system for the Thyssenkrupp escalators in the alteration area of T2; stainless steel pedals on the outer edge of the pit at the apron of T1. Agreement 9 1 April 2017 to 1. Repair and maintenance by Beijing Bowei of the hardware, application environment and procedures and all connected peripherals of the end portal of all types of work stations within the safety management information system in T3D (including the AV cables stemming from the x-ray machines, but not the x-ray machines, and the jumpers between the information point to the work station end portal), and spare parts and accessories in relation to work stations; and maintenance of the environment by Beijing Bowei. 8,505,100 7

8 No. of 2. Provision of the internal communication system, master clock system, CATV system, border inspection LED display system, management centre and conference room, electronic balance for large baggage, signal extension of television surveillance, end portal of security surveillance, low-current electricity ground sockets and the TOCC aircraft display facility in T3 by Beijing Bowei. 3. Maintenance of the call centre system by Beijing Bowei, including: maintenance of the call centre system, facilities and software in T3 and ITC (Information Centre Building); maintenance and upgrade etc. of the hardware and software of the calculators, Industrial Personal Computers, servers etc. within the call centre system; antivirus operations such as installation, repair and upgrade of anti-virus software of all equipment and systems within the call centre system. 4. Provision of database system, optic switches and managing work stations, etc. for the security system in T3 by Beijing Bowei. 8

9 No. of Agreement 10 1 January 2017 to Provision of vehicle maintenance services by Beijing Bowei in certain locations and repair plants of the field service team within the controlled area west of the middle runway in Beijing Airport. Such services mainly include: daily maintenance, general repair, specialised repair, conducting of vehicle functional tests, accessories sale, car wash, car care etc. of vehicles. The higher of the guaranteed rental and the franchise commission, in which the guaranteed rental is RMB150,000, and the franchise commission shall be 10% of the total operating revenue of Beijing Bowei. Agreement 11 1 August 2017 to 31 July 2018 Daily inspection, repair and maintenance of the general-use and exclusive-use vehicles in the aviation area belonging to the airport and runway management division of the management department of the Company, and vehicle auxiliary protection and emergency protection during snow removal in the winter by Beijing Bowei. 930,000 Agreement 12 5 March 2017 to 4 March 2018 Provision of repair services by Beijing Bowei for the six boarding bridges for two A380 parking bays in T2, which mainly include repair, maintenance and inspection, hygiene and environmental management, safety management and accessories and spare parts management of the boarding bridges. Beijing Bowei is required to book-keep and set out working plans and reports according to the circumstances of the subject. 0 9

10 2. Agreements entered into in 2018: No. of Agreement 1 1 January 2018 to Daily operation and maintenance of the facilities and equipment in relation to T3 s baggage system, train system, lifts and escalators, walkway system and the supplemental systems of their relevant ancillary facilities, and purchasing and supply of spare parts, materials and supplies and so forth required in upgrading aging spare parts or when the production of such has discontinued (including various types of spare parts used in T3 s baggage system, train system, escalators, walkway system, empty trays used in check-in counters within T3 s baggage system, and the carriage cars for empty trays in T3 s baggage system and their repair) by Beijing Bowei. A framework with annual amount not exceeding 157,800,000. Agreement 2 1 January 2018 to 31 December 2018 Provision of operational services for bridging equipment in T3 by Beijing Bowei. Bridging equipment includes two types of equipment, namely 400Hz static power supply for aircraft and ground air-conditioners for aircraft. Beijing Bowei is in charge of the connecting and removing operations of the bridging equipment for the airline companies listed in the according to the procedures prescribed by the Company. 10,300,000 Agreement 3 1 January 2018 to 31 March 2018 Provision of stops and starts, inspections, operations, upkeep, repairs, maintenance, troubleshooting, emergency handling, rescue of elevators in the GTC, including escalators, automatic ramps, vertical freight elevators, vertical fire ladders and vertical passenger (sightseeing) elevators, guard over building automation system and its operation, use and management of spare parts and materials by Beijing Bowei. 119,320 10

11 To the best of the Directors knowledge, information and belief and having made all reasonable enquiries, the service fees charged by the Target Company for the services provided to the Company under each of the Service Agreements were arrived at after arm s length negotiations between the Target Company and the Company. These service fees under the relevant terms were determined based on factors including (i) historical service fees paid by the Company to Beijing Bowei in the past; (ii) the costs of relevant materials; (iii) relevant labor costs; and (iv) relevant taxation matters. REASONS FOR AND BENEFITS OF THE CONTINUING CONNECTED TRANSACTIONS Beijing Bowei has maintained a cooperative relationship with the Company for many years and is very familiar with the operation of relevant equipment and facilities of Beijing Airport with rich experiences in the development, installation, operation, repair and maintenance, spare parts supply and technical advisory services of terminal, station and airport equipment. Since the operation of Beijing Airport is highly dependent on the steady and continuous operation of all equipment and facilities for 24 hours, which requires highly stability of operation, safety of management and extremely high emergency responsiveness to repair and maintenance in respect of equipment and facilities, therefore, the relevant operation, repair and maintenance services provided by Beijing Bowei is in favor of ensuring the stability of the daily operation and service quality of Beijing Airport, which helps maintain the continuity of operation, repair and maintenance business while guaranteeing the rapid responsiveness and satisfying the specialty and high efficiency required for the operation of the isolated area of Beijing Airport. In light of the above, the Directors (including the independent non-executive Directors) are of the view that each of the Service Agreements was entered into in the ordinary course of business of the Company, on normal commercial terms that are fair and reasonable and is in the interest of the Shareholders as a whole. None of the Directors have abstained from voting on the resolutions approving the continuation of the Service Agreements at the Board meeting. INFORMATION ON THE PARTIES TO THE AGREEMENTS The Company is principally engaged in the operation of Beijing Airport. The Target Company is an enterprise established in the PRC. It is principally engaged in airport equipment manufacturing, airport equipment development, installation and maintenance, spare parts supply and technical advisory services; terminal, station and freight equipment operation and maintenance; professional contractor; elevator maintenance. Branch offices of the Target Company are principally engaged in class 1 vehicle maintenance (large and medium-sized vehicle repair, large and medium-sized truck repair and small car repair). 11

12 LISTING RULES IMPLICATIONS Pursuant to Rule 14A.60(1) of the Listing Rules, the Company is required to comply with the annual review and disclosure requirements under Chapter 14A of the Listing Rules, including publication of an announcement and annual reporting in respect of continuing connected transactions under the Service Agreements. The Company will further comply with all applicable reporting, disclosure and, if applicable, independent Shareholders approval requirements under Chapter 14A of the Listing Rules upon any variation or renewal of the Service Agreements. DEFINITIONS Beijing Airport Board Company connected person(s) controlling shareholder Director(s) Disposal GTC Beijing Capital International Airport the board of Directors Beijing Capital International Airport Co., Ltd. ( ), a sino-foreign joint stock limited company incorporated in the PRC with limited liability, and the H Shares of which are listed on the Stock Exchange has the same meaning as ascribed under the Listing Rules has the same meaning as ascribed under the Listing Rules the director(s) of the Company the disposal of the Sale Capital by the Company in favour of the Parent Company pursuant to the Share Transfer Agreement the Ground Traffic Center, a 342,700 sq.m. parking lot located on the southern side of T3C in Beijing Airport, including two floors aboveground (the first floor is the commercial area and the second floor is the express train station) and two floors underground (parking lot and taxi queuing area) H Share(s) overseas listed foreign shares of nominal value of RMB1.00 each in the registered capital of the Company 12

13 Listing Rules Parent Company PRC the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited Capital Airports Holding Company ( ), an enterprise established in the PRC and the controlling shareholder of the Company the People s Republic of China Previous Announcement the announcement of the Company dated 23 June 2017 in relation to the Disposal RMB Sale Capital Service Agreements Share(s) Share Transfer Agreement Shareholders Target Company or Beijing Bowei T1 Renminbi, the lawful currency of the PRC 60% of the total registered capital of the Target Company collectively, the s entered into between the Company and the Target Company in relation to the provision of various types of services by the Target Company to the Company, the details of which are set out in the section headed Continuing Connected Transactions Pursuant to Rule 14A.60(1) of the Listing Rules share(s) of RMB1.00 each in the capital of the Company the share transfer dated 23 June 2017 entered into between the Company as vendor and the Parent Company as purchaser in respect of the Disposal holders of the Shares Beijing Bowei Airport Support Limited ( ), an enterprise established in the PRC the passenger terminal numbered one which forms part of the Beijing Airport 13

14 T2 T3 T3C T3D the passenger terminal numbered two which forms part of the Beijing Airport the passenger terminal numbered three which forms part of the Beijing Airport the passenger terminal numbered 3C which forms part of T3 of the Beijing Airport the passenger terminal numbered 3D which forms part of T3 of the Beijing Airport % per cent By the order of the Board Luo Xiaopeng Secretary to the Board Beijing, the PRC 12 February 2018 As at the date of this announcement, the directors of the Company are: Executive Directors: Non-executive Directors: Independent Non-executive Directors: Mr. Liu Xuesong, Mr. Han Zhiliang and Ms. Gao Lijia Mr. Gao Shiqing, Mr. Yao Yabo and Mr. Ma Zheng Mr. Japhet Sebastian Law, Mr. Jiang Ruiming, Mr. Liu Guibin and Mr. Zhang Jiali An announcement containing details of the matter is available for viewing on the website of Hong Kong Exchanges and Clearing Limited at under Latest Listed Companies Information, at the website of the Company at and the website of Irasia.com at 14