Zhong An Real Estate : Announcements and Notices - Profit Warning

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ZHONG AN REAL ESTATE LIMITED

(incorporated in the Cayman Islands with limited liability)

(Stock code: 672)

PROFIT WARNING

This announcement is made by Zhong An Real Estate 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 under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The board of directors of the Company (the "Board") wishes to inform the shareholders of the Company (the "Shareholders") and potential investors that, based on the preliminary assessment of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2018 (the "Period"), the Group expects to record a relatively substantial decrease in its profit for the Period as compared to the corresponding period in 2017.

The relatively significant decline in profit of the Group for the Period was mainly due to (subject to final confirmation) the decrease in fair value gain of investment properties for the Period as compared with the larger amount of fair value gain of investment properties recorded for the corresponding period in 2017. At the same time, no additional projects with contracted sales recognised were launched for the Period and the revenue recognised from the sales of existing properties decreased significantly as compared to the corresponding period of last year notwithstanding the increase in gross profit margin as compared to the corresponding period of last year.

Information contained in this announcement is only based on the preliminary review and assessment made by the Board with reference to the information currently available (including the unaudited consolidated management accounts of the Group for the Period which have not been reviewed or audited by the independent auditors of the Company). The actual results of the Group for the Period may differ from those disclosed in this announcement. Details of the Group's financial information will be disclosed in the interim results announcement of the Group for the half year ended 30 June 2018 which is expected to be published by late August 2018.

Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company and, in case of doubt, to seek independent advice from professional or financial advisers.

By Order of the Board

Zhong An Real Estate Limited

Shi Kancheng

Chairman

The PRC, 17 August 2018

As at the date of this announcement, the Board comprised five executive Directors, namely Mr Shi Kancheng (Chairman), Ms Wang Shuiyun, Ms Shen Tiaojuan, Mr Zhang Jiangang and Mr Jin Jianrong, one non-executive Director, namely Ms Shen Li, and three independent non-executive Directors, namely Professor Pei Ker Wei, Dr Loke Yu and Mr Zhang Huaqiao.