Joy City Property : DISCLOSEABLE TRANSACTION ACQUISITION OF LAND USE RIGHTS IN CHONGQING, THE PRC

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JOY CITY PROPERTY LIMITED

大悅城地產有限公司

(incorporated in Bermuda with limited liability)

(Stock code: 207) DISCLOSEABLE TRANSACTION ACQUISITION OF LAND USE RIGHTS IN CHONGQING, THE PRC ACQUISITION OF LAND USE RIGHTS IN CHONGQING, THE PRC

The Board is pleased to announce that on 27 September 2017, Able Current, a wholly-owned subsidiary of the Company, obtained the Confirmation Letter approving the bid of the land use rights of the Land offered for sale by the Land Resources and Building Management Bureau of Chongqing at the Auction for RMB1,780,000,000. The Land Use Rights Grant Contract in relation to the Acquisition is expected to be entered into on or before 29 September 2017. A sum of approximately RMB883,170,000 has been paid by Able Current as the security deposit for the Auction. Immediately upon the completion of the Acquisition, the Company will indirectly hold the interests in the Land.

LISTING RULES IMPLICATIONS

As one or more of the applicable percentage ratios in respect of the Acquisition exceeds 5% but are all less than 25%, the transaction contemplated under the Acquisition constitutes a discloseable transaction for the Company and is subject to notification and announcement requirements under Chapter 14 of the Listing Rules.

INTRODUCTION

The Board is pleased to announce that on 27 September 2017, Able Current, a wholly-owned subsidiary of the Company, obtained the Confirmation Letter approving the bid of the land use rights of the Land offered for sale by the Land Resources and Building Management Bureau of Chongqing at the Auction for RMB1,780,000,000. The Land Use Rights Grant Contract in relation to the Acquisition is expected to be entered into on or before 29 September 2017. A sum of RMB883,170,000 has been paid by Able Current as the security deposit for the Auction. Immediately upon the completion of the Acquisition, the Company will indirectly hold the interests in the Land.

THE CONFIRMATION LETTER

Date	:	27 September 2017
Parties	:	Able Current, a wholly owned subsidiary of the Company; and the Land Resources and Building Management Bureau of Chongqing.
Location of the Land	:	Yu Bei District (渝北區), Chongqing, the PRC
Total site area	:	approximately 116,700 square meters
Total planned gross floor area	:	approximately 400,000 square meters
Proposed use of the Land	:	Commercial and residential
Term of the land use right	:	40 years for office and commercial use and 50 years for residential use
Consideration	:	RMB1,780,000,000, which was the bidding price of the Land submitted by Able Current at the Auction held by the Land Resources and Building Management Bureau of Chongqing. A sum of approximately RMB883,170,000 has been paid by Able Current as the security deposit for the Auction, which will form the payment of the total consideration in relation to the Acquisition

All consideration for acquiring the Land will be solely funded by the Group. The Group will finance its capital commitment for the Auction by its internal resources.

It is intended that Able Current will establish a wholly-owned project company for acquiring the entire interest of the Land and for development, construction and operation of the Land. Immediately upon the completion of the Acquisition, the Company will indirectly hold the interests in the Land.

REASONS FOR AND BENEFITS OF THE ACQUISITION

The Group is principally engaged in development, operation, sales, leasing and management of mixed-use complexes and commercial properties in the PRC. The Land is located in the prime location of Chongqing, and suitable for development of integrated commercial and residential properties. In view of the location and the designated use of the Land, it is expected to be used for the development of the Joy City urban mixed-use complexes, with the objective of achieving high investment value after completion of the development of the Land, thereby generating stable and satisfactory revenue and profit to the Group. The Directors consider that the Acquisition is in line with the business development strategy and planning of the Group.

The Directors consider that the Acquisition is in the interests of the Company and the Shareholders as a whole and the terms thereof are on normal commercial terms, which are fair and reasonable.

INFORMATION ON THE PARTIES

The Company is an investment holding company incorporated in Bermuda. The Group is principally engaged in development, operation, sales, leasing and management of mixed-use complexes and commercial properties in the PRC. The Group develops, holds and operates various property projects in the PRC and Hong Kong.

Able Current is a company incorporated in Hong Kong with limited liability and a wholly-owned subsidiary of the Company. Able Current is principally engaged in investment and development of the Land through its wholly-owned project company.

The Land Resources and Building Management Bureau of Chongqing is a PRC governmental authority and the seller of the Land. To the best of the Directors' knowledge, information and belief and having made all reasonable enquiries, the Land Resources and Building Management Bureau of Chongqing and its ultimate beneficial owner are third parties independent of the Group and its connected persons.

LISTING RULES IMPLICATIONS

As one or more of the applicable percentage ratios in respect of the Acquisition exceed 5% but are all less than 25%, the transaction contemplated under the Acquisition constitutes a discloseable transaction for the Company and is subject to notification and announcement requirements under Chapter 14 of the Listing Rules.

DEFINITIONS

In this announcement, the following expressions have the following meanings, unless the context otherwise requires:

"Able Current"	Able Current Limited (創滔有限公司), a company incorporated in Hong Kong with limited liability and a wholly-owned subsidiary of the Company
"Acquisition"	the acquisition of land use rights of the Land through public bidding process at the Auction
"Auction"	the public auction held by the Land Resources and Building Management Bureau of Chongqing at which the Land was offered for sale
"Board"	the board of Directors
"Company"	Joy City Property Limited ( 大 悅 城 地 產 有 限 公 司 ), a company incorporated under the laws of Bermuda with limited liability, the ordinary shares of which are listed on the Main Board of the Stock Exchange
"Confirmation Letter"	the confirmation letter of land transaction by auction (土地成交確認書) entered into between Able Current and the Land Resources and Building Management Bureau of Chongqing confirming the Acquisition at the Auction on 27 September 2017
"Consideration"	RMB1,780,000,000, being the price for the grant of the land use rights of the Land
"Directors"	the directors of the Company
"Land"	the plots of land described under the section headed "The Confirmation Letter" in this announcement with a total site area of approximately 116,700 square meters which was offered for sale at the Auction

"Land Resources and Building Management Bureau of Chongqing"	Land Resources and Building Management Bureau of Chongqing* (重 慶市國土資源和房屋管理局)
"Land Use Rights Grant Contract"	the land use rights grant contract (國有建設用地使用權出讓合同) to be entered into between Able Current and the Land Resources and Building Management Bureau of Chongqing in respect of the Land
"Listing Rules"	the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited
"Group"	the Company and its subsidiaries
"Hong Kong"	the Hong Kong Special Administrative Region of the PRC
"PRC"	the People's Republic of China, which shall, for the purpose of this announcement, exclude Hong Kong, the Macau Special Administrative Region of the PRC and Taiwan
"RMB"	Renminbi, the lawful currency of the PRC
"Shareholders"	the shareholders of the Company
"Stock Exchange"	The Stock Exchange of Hong Kong Limited
"%"	per cent

In this announcement, unless the context requires otherwise, the terms "connected person(s)", "percentage ratio" and "subsidiary(ies)" shall have the meanings given to such terms in the Listing Rules.

* English translations of the names are provided for ease of reference only and they are not official English names of the companies and authority concerned.

By order of the Board

Joy City Property Limited Zhou Zheng Chairman

The PRC, 27 September 2017

As at the date of this announcement, the Board comprises Mr. ZHOU Zheng (Chairman) and Mr. CAO Ronggen as executive directors; Ms. WU Xiaohui, Mr. JIANG Chao, Mr. ZENG Xianfeng and Mr. JIA Peng as non-executive directors; and Mr. LAU Hon Chuen, Ambrose, GBS, JP, Mr. LAM Kin Ming, Lawrence and Mr. WU Kwok Cheung, MH as independent non-executive directors.