Asia Allied Infrastructure : Voluntary Announcement - Design and Construction Contract in Relation to a Water Supply Project in the Philippines

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.

This announcement is made by Asia Allied Infrastructure Holdings Limited (the "Company", together with its subsidiaries, the "Group") on a voluntary basis to keep shareholders and potential investors of the Company informed of the Group's latest business development.

The board of directors of the Company (the "Board") is pleased to announce that on 18 August 2017, a company jointly formed by a wholly-owned subsidiary of the Company with two independent third parties as the contractor entered into a contract (the "Contract") with Manila Water Company, Inc. as the employer for the design and construction of the Novaliches-Balara Aqueduct 4 (the "Project") in the Republic of Philippines (the "Philippines") with a contract value of approximately 5.4 billion Philippine Pesos (equivalent to approximately HK$800 million). The Project is a water supply project involving the design and construction of water conveying facilities connecting Novaliches and Balara in Quezon City, the Philippines.

The management of the Group believes the Contract will benefit to the Group in the following ways. The Project, being the Group's first in the Philippines, represents an important step for tapping opportunities related to the "Belt and Road" initiatives encouraged by the governments of the People's Republic of China and regional countries. It will build a solid foundation for the Group to explore government related infrastructure opportunities in the Philippines and

countries/cities around the region, enabling the Group to expand its business presence and further extend its construction business to Asia and "Belt and Road" markets, particularly for countries with higher demand for professional service providers in the infrastructural construction and property development areas. Furthermore, leveraging the Group's know-how and experience in construction, engineering, property development and management, the Project will be executed according to the highest industry standards, which will enable the Group to further build up its industry reputation in other overseas markets.

By Order of the Board

Chairman

Hong Kong, 18 August 2017

As at the date of this announcement, the executive directors of the Company are Mr. Pang Yat Ting, Dominic, Mr. Xu Jianhua, Ir Dr. Pang Yat Bond, Derrick, JP and Mr. Shea Chun Lok, Quadrant, and the independent non-executive directors of the Company are Mr. Ho Gilbert Chi Hang, Mr. Lam Yau Fung, Curt and Mr. Wu William Wai Leung.