China Aoyuan : INSIDE INFORMATION APPROVAL FOR THE ISSUE OF DOMESTIC CORPORATE BONDS BY THE CHINA SECURITIES REGULATORY COMMISSION

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.

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 3883)

INSIDE INFORMATION

APPROVAL FOR THE ISSUE OF DOMESTIC CORPORATE BONDS

BY THE CHINA SECURITIES REGULATORY COMMISSION

This announcement is made by China Aoyuan Group Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined in the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board of directors (the "Board") of the Company is pleased to announce that the China Securities Regulatory Commission ( 中國證券監督管理委員會) ("CSRC") has issued the relevant approval

documents (Zheng Jian Xu Ke [2019] No. 1449), whereby CSRC approved the application of 奧園 集團有限公司 (Aoyuan Corporation (Group) Limited), a wholly-owned subsidiary of the Company incorporated in the People's Republic of China (the "Issuer"), for the issue to the public of domestic corporate bonds of up to an aggregate principal amount of RMB4.2 billion (the "Domestic Bonds").

After the book-building exercise completed on 30 August 2019, the Issuer and the underwriters have determined that the total issue size for the first tranche of Domestic Bonds shall be RMB1.5 billion at the coupon rate of 6.80% per annum for a term of 4 years, with the Issuer's option to adjust the coupon rate and the investors have the option to sell back the first tranche of Domestic Bonds at the end of the second year from the date of issue. The results of the issue of the first tranche of Domestic Bonds will be released to the qualified investors on 4 September 2019. Details of the issue of Domestic Bonds have been published on the website of the Shanghai Stock Exchange (www.sse.com.cn).

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The Company intends to apply the proceeds from the issue of the first tranche of Domestic Bonds for refinancing certain existing indebtedness of the Group.

The issue of the first tranche of Domestic Bonds is subject to completion. Holders of shares or other securities of the Company and potential investors are advised to exercise caution when dealing in the shares or other securities of the Company.

By order of the Board

China Aoyuan Group Limited

Guo Zi Wen

Chairman

Hong Kong, 2 September 2019

As at the date of this announcement, the executive directors of the Company are Mr. Guo Zi Wen, Mr. Guo Zi Ning, Mr. Ma Jun and Mr. Chan Ka Yeung Jacky; and the independent non-executive directors of the Company are Mr. Tsui King Fai, Mr. Cheung Kwok Keung and Mr. Hu Jiang.

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