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.

XIWANG PROPERTY HOLDINGS COMPANY LIMITED

*

(Incorporated in Bermuda with limited liability)

(Stock Code: 2088)

INSIDE INFORMATION TERMINATION OF A VERY SUBSTANTIAL ACQUISITION

This announcement is made pursuant to Rules 13.09(1) and 14.36 of the Listing Rules and Part XIVA (Disclosure of Inside Information) of the Securities and Futures Ordinance (Cap. 571, Laws of Hong Kong).
The Group and the Jimo Government have entered into the Release Agreement in respect of the Jimo Project.
The Directors consider that the termination of the Development Cooperation Agreement has no material impact on the operations or financial position of the Group. The Company will continue to look for other investment opportunities to further develop the business of the Group.

This announcement is made pursuant to Rules 13.09(1) and 14.36 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and Part XIVA (Disclosure of Inside Information) of the Securities and Futures Ordinance (Cap.
571, Laws of Hong Kong).

* For identification purpose only

1

Reference is made to the announcement of the Company (together with its subsidiaries, collectively, the "Group") dated 2 October 2013 and the circular of the Company dated 11
October 2013 in relation to a development cooperation agreement in respect of a property redevelopment project (the "Jimo Project") in Jimo City, Qingdao, Shangdong Province, the People's Republic of China ("PRC") entered into between Glorious Prosper Limited ("Glorious Prosper"), an indirect wholly-owned subsidiary of the Company, and the Jimo City People's Government (the "Jimo Government") on 28 September 2013 (the "Development Cooperation Agreement").

RELEASE AGREEMENT

After the trading hours of 21 August 2014, the Group received the notification of the Jimo Government that it had signed and sealed the release agreement in respect of the Development Cooperation Agreement (the "Release Agreement") (which had already been signed by Glorious Prosper in escrow before) and dated the same as of 20 August 2014.
Pursuant to the Release Agreement, Glorious Prosper and the Jimo Government agreed to terminate all of their respective rights and obligations, and to release and discharge each other from further obligations, under the Development Cooperation Agreement; and not to make any claim against each other in connection with the Development Cooperation Agreement.
In connection with the Jimo Project, the Group has made payments or incurred expenses of approximately RMB93,706,000 to various parties for the preliminary work in relation to the demolition and resettlement of the intended project site. In view of the termination of the Development Cooperation Agreement, the Group will negotiate with certain parties for refund of the payments made by the Group to them and it is expected that the Group will be refunded of approximately RMB87,000,000.

2

REASONS FOR THE TERMINATION

Having considered the long investment-return cycle of and the huge investment required for the Jimo Project, the directors of the Company (the "Directors") decided to terminate it and entered into the Release Agreement, which in the opinion of the Directors is in the interest of the Company and its shareholders.
The Directors consider that the termination of the Development Cooperation Agreement has no material impact on the operations or financial position of the Group. The Company will continue to look for other investment opportunities to further develop the business of the Group.
By order of the board of directors

Xiwang Property Holdings Company Limited WANG Di

Chairman

Hong Kong, 21 August 2014
As at the date of this announcement, the board of directors of the Company comprises the following directors:

Executive directors: Independent non-executive directors:

Mr. WANG Chuan Wu Mr. WONG Kai Ming
Mr. ZHOU Xiang Lin Mr. WANG An
Mr. CHENG Gang Mr. WANG Shu Jie

Non-executive directors:

Mr. WANG Di
Mr. WANG Yong
Mr. SUN Xinhu

3

distributed by