China Agri Industries : 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.

This announcement is made by the Company pursuant to the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance and Rule 13.09(2)(a) of the Listing Rules. Based on the Group's unaudited consolidated management accounts for the year ended 31 December 2016, the Group is expected to record significant turnaround in profitability for the Year as compared to 2015. The profit attributable to owners of the Company for 2016 is expected to be approximately HK$1.4 billion.

This announcement is made by China Agri-Industries Holdings Limited (the "Company" and, together with its subsidiaries, the "Group") pursuant to the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance and Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules").

In 2016, the Company continued expanding the market and maintained a solid business momentum, and all its business divisions' performance has been significantly improved for this year. Based on the Group's unaudited consolidated management accounts for the year ended 31 December 2016 (the "Year"), the Group is expected to record significant turnaround in profitability for the Year as compared to 2015. The profit attributable to owners of the Company for 2016 is expected to be approximately HK$1.4 billion.

The board of the directors of the Company (the "Board") believes that the improvement of the performance of the Group is mainly attributable to the following reasons:

1. Despite the noticeable fluctuations in the oils and oilseeds market throughout the Year, the Company has accurately spotted and seized the right opportunities for procurement by

   leveraging its expertise and capabilities in making studies and judgments and has made effective use of its hedging instruments to prevent and control risks, thereby providing a firm support for the Year's business performance.

2. Through continuous efforts of market expansion, regional penetration and marketing synergy to cope with the sluggish growth of demand in the industry, the Group has achieved considerable growth in the sales volume of its major products such as rice, flour, oil, malt and feedstuffs and significant improvement in its overall capacity utilisation rate.

3. The significant drop of the domestic corn prices year-on-year since the third quarter of 2016 and the Company's further implementation of lean management led to higher profit margin of the related products.

The information contained in this announcement is only based on the preliminary assessment made by the Company with reference to the Group's unaudited consolidated management accounts for the year ended 31 December 2016. The Group's financial results for the year ended 31 December 2016, which will be audited by the auditors of the Company, will be disclosed when the annual results of the Company for the year ended 31 December 2016 are announced. As such, shareholders of the Company and potential investors are advised to read the Company's 2016 annual results announcement which will be published before the end of March 2017.

Hong Kong, 6 January 2017

By Order of the Board

Chairman

As at the date of this announcement, the Board comprises: Mr. CHI Jingtao as chairman of the Board and executive director; Mr. GU Lifeng and Mr. SHI Bo as executive directors; Mr. YU Xubo and Mr. MA Wangjun as non-executive directors; and Mr. LAM Wai Hon, Ambrose, Mr. Patrick Vincent VIZZONE and Mr. ONG Teck Chye as independent non-executive directors.