Reference is made to Coolpad Group Limited's announcement dated 17 October 2017 in relation to a cooperative development agreement (the "Agreement ") entered into by a subsidiary of the Company with Shenzhen Xinghuaan Real Estate Development Co. Ltd. ("Xinghuaan") pursuant to which the parties had agreed to jointly develop the first, second and third phases of Coolpad Information Harbor (the "Project"). As at the date of this announcement, the first phase of the Project is near completion, and the construction work in respect of the second and third phases of the Project has not been commenced. The Group has been considering and reviewing its development plans for the second and third phases of the Project since the signing of the Agreement and, in light of change in circumstances, the relevant subsidiary of the Company has agreed to terminate the Agreement and the transactions contemplated thereunder. The Board considers that the termination of the Agreement and the transactions contemplated thereunder will not have any material adverse impact on the financial position or the operations of the Group. The Group will continue to consider and explore other possible avenues in developing the second and third phases of the Project.