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 AEROSPACE INTERNATIONAL HOLDINGS LIMITED

中國航天國際控股有限公司

(Incorporated in Hong Kong with limited liability)

(Stock Code: 31) PROFIT WARNING

This announcement is made pursuant to the provisions of Part XIVA of the Securities and Futures

Ordinance and Rule 13.09 of the Listing Rules.

The Board of Directors of China Aerospace International Holdings Limited (the "Company") wishes to inform the shareholders of the Company and potential investors that, based on the Company's preliminary estimation, it is expected that the profit of the Company for the six months ended 30 June 2014 may decrease substantially as compared to the same period of 2013. The reasons of the decrease in profit were mainly due to no one-off non-recurring income was recorded by the Company and the amount of the gain in the fair value of investment properties significantly decreased in the first half of 2014, in comparing to the same period of 2013. However, it will not have any negative impact on the cash flow and the operations of the Company. Actual result figures will be announced upon the completion of the review by the Company's auditor and the approvals of both the Audit Committee and the Board.

Shareholders of the Company and potential investors should exercise with caution when dealing in the shares of the Company.

By order of the Board

Li Hongjun

Executive Director & President

Hong Kong, 1 August 2014

At the date of this Announcement, the Board of Directors of the Company comprises:

Independent Non-Executive

Executive Directors Non-Executive Directors

Directors

Mr Li Hongjun (President) Mr Zhang Jianheng (Chairman) Mr Luo Zhenbang
Mr Jin Xuesheng Mr Chen Xuechuan Ms Leung Sau Fan, Sylvia
Mr Shi Weiguo Mr Wang Xiaojun

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