China Evergrande : POSITIVE PROFIT ALERT

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.

CHINA EVERGRANDE GROUP 中 國 恒 大 集 團

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 3333)

POSITIVE PROFIT ALERT

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

The board of directors (the ''Board'') of the Company wishes to inform shareholders of the Company and potential investors that, based on the information currently available to the management, the Group is expected to record a substantial increase in the after-tax net profit and the net profit from the core business for the six months ended 30 June 2018 as compared with the same period last year. Of which, the after-tax net profit is expected to increase by more than 125% from that of the same period last year, and the net profit from the core business is expected to increase by more than 100% from that of the same period last year. The substantial increase was primarily attributable to the improvement in product quality, enhancement of product added value, reduction in expenses, and increases in the floor area of properties delivered. At the same time, the management of the Company expects that the net gearing ratio of the Group for the six months ended 30 June 2018 will further decline significantly, and is expected to decrease from approximately 184% as at the end of last year to below 130%.

The information contained in this announcement is only based on the preliminary review by the Company's management on the financial information currently available to it and is not based on any figures or information that has been audited or reviewed by the auditors or the audit committee of the Company. Shareholders and potential investors are advised to read carefully the interim results announcement of the Company for the six months ended 30 June 2018 which is expected to be published in late August 2018.

Shareholders of the Company and potential investors are advised to exercise caution when dealing in the securities of the Company.

By order of the board

China Evergrande Group

Hui Ka Yan

Chairman

Hong Kong, 6 August 2018

As at the date of this announcement, the executive Directors are Mr. Hui Ka Yan, Mr. Xia Haijun, Ms. He Miaoling, Mr. Shi Junping, Mr. Pan Darong and Mr. Huang Xiangui, and the independent non- executive Directors are Mr. Chau Shing Yim, David, Mr. He Qi and Ms. Xie Hongxi.