China Aoyuan Property : 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.

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 3883)

ANNOUNCEMENT POSITIVE PROFIT ALERT

This announcement is made by China Aoyuan Property Group Limited (the "Company", together with its subsidiaries, the "Group") pursuant to Rule 13.09 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 in the Listing Rules) under Part XIVA of the Securities and Future Ordinance, Chapter 571,

Laws of Hong Kong.

The board of directors of the Company (the "Board") wishes to inform the shareholders of the Company and potential investors that based on preliminary review and analysis of the unaudited consolidated management accounts of the Group for the six months ended 30 June 2018 and other information currently available, the Group is expected to record an increase of approximately 50% in the core net profit (excluding fair value gain on investment properties, loss on early redemptions of senior notes, net exchange difference and loss on change in fair value of derivative financial instruments) as compared to the same period of 2017. The increase was primarily attributable to the increase in the Group's total gross floor area delivered to buyers during the period from 1 January 2018 to 30 June 2018.

The information contained in this announcement is only based on the Company's preliminary assessment of the consolidated management accounts of the Group, which have not been reviewed or audited by the Company's auditors. The Company is still in the process of finalising the Group's unaudited interim results for the six months ended 30 June 2018 which will be published in mid-August 2018.

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the shares of the Company.

By order of the Board

China Aoyuan Property Group Limited

Guo Zi Wen

Chairman

Hong Kong, 25 July 2018

As at the date of this announcement, the executive Directors are Mr. Guo Zi Wen, Mr. Guo Zi Ning, Ms. Zhong Ping and Mr. Ma Jun; and the independent non-executive Directors are Mr. Tsui King Fai, Mr. Cheung Kwok Keung and Mr. Hu Jiang.