Yuzhou Properties : Announcements and Notices - Voluntary Announcement Strategic Cooperation Framework Agreement and Investment Cooperation Framework Agreement

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(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 01628)

VOLUNTARY ANNOUNCEMENT

STRATEGIC COOPERATION FRAMEWORK AGREEMENT AND

INVESTMENT COOPERATION FRAMEWORK AGREEMENT

This announcement is made by Yuzhou Properties Company Limited (the "Company", together with its subsidiaries the "Group") on a voluntary basis to provide its shareholders and potential investors with updated information in relation to the latest business development of the Group.

STRATEGIC COOPERATION FRAMEWORK AGREEMENT AND THE INVESTMENT COOPERATION FRAMEWORK AGREEMENT

The board of directors (the "Board") of the Company is pleased to announce that, on 8 May 2018,

Xiamen Yuzhou Group Co., Ltd.*€ขژ߃ݲණྠٰ΅Ϟࠢʮ̡(a subsidiary of the Company, "Xiamen Yuzhou"), China Aerospace Construction Group Company Limited*€ʕ਷ঘ˂ܔணණྠ Ϟࠢʮ̡("China Aerospace Construction"), and Zhongan Taida Construction Group Limited* €ʕτइ༺ܔண೯࢝Ϟࠢʮ̡ ("Zhongan Taida") had entered into a Strategic Cooperation Framework Agreement (the "Strategic Cooperation Framework Agreement"), pursuant to which the parties agree to jointly develop construction of the project of Aerospace Smart Town (the "Project"). The Project contains a piece of land which is located at Shuangqiao District, Chengde City, Hebei Province, PRC with a site area of approximately 4,000 mu (approximately 2.67 million sq.m.) (the "Land"). Making the most of the integrated development of Beijing-Tianjin-Hebei Region, these parties will conduct in-depth cooperation in respect of the application of the new aerospace technology leveraging the natural resources and geographical advantages of Chengde City. The purpose of the Project is to develop the Land as an aerospace smart town with features of aerospace theme park, aerospace smart healthcare, aerospace smart education, aerospace new material R&D application base, satellite remote technology R&D application base, etc..

Chengde Aerospace Smart Town places emphasis on the application of new materials and new technology in investment. It focuses on application of new and high-tech materials, satellite remote technology as well as big data analysis and process industry. The project will proactively introduce top-tier talents, bolster to achieve the goal of "digital, network-based, IT-based and smart" construction, so as to promote "modernization driven by information" and formulate "digital China" strategy.

Following the execution of the Strategic Cooperation Framework Agreement, Shenzhen Wohang Technology Limited* €ଉέӜঘ߅ҦϞࠢʮ̡ (a subsidiary of the Company, "Shenzhen Wohang") has entered into an Investment Cooperation Framework Agreement ("Investment Cooperation Framework Agreement", together with the Strategic Cooperation Framework Agreement, the "Framework Agreements") with Zhongan Taida to specify the development arrangement in relation to the Project. According to the Investment Cooperation Framework Agreement, Shenzhen Wohang and Zhongan Taida will form a joint venture company ("Project Company") to develop the Land under the Project. Shenzhen Wohang and Zhongan Taida will hold 51% and 49% share equity of the Project Company respectively.

INFORMATION OF THE PARTIES TO THE FRAMEWORK AGREEMENTS

Xiamen Yuzhou

Xiamen Yuzhou is a subsidiary of the Company, which is established in PRC principally engaged in properties investment, development and management.

China Aerospace Construction

China Aerospace Construction is established in PRC principally engaged in general contracting of housing construction. China Aerospace Construction is a subsidiary of China Aerospace Science & Industry Corporation*€ʕ਷ঘ˂߅ʈණྠʮ̡. China Aerospace Construction has extensive experience in planning, consultation, designing, and construction of the projects in relation to aerospace field.

Shenzhen Wohang

Shenzhen Wohang is a subsidiary of the Company, which is established in PRC principally engaged in investment of aerospace industry projects.

Zhongan Taida

Zhongan Taida is established in PRC principally engaged in general contracting of construction, properties development, and engineering design. Zhongan Taida has extensive experience in reconstruction of old town and strengthening and rebuilding of old buildings.

This announcement is made by the Company on a voluntary basis for the information of Shareholders and potential investors. The Company will issue further announcement to update its shareholders on any new significant development of the aforesaid matter as and when appropriate.

By order of the Board

Yuzhou Properties Company Limited

Lam Lung On

Chairman

Hong Kong, 9 May 2018

As at the date of this announcement, the executive directors of the Company are Mr. Lam Lung On (Chairman, J.P.), Ms. Kwok Ying Lan and Mr. Lin Conghui, and the independent non-executive directors of the Company are Mr. Lam Kwong Siu, Mr. Wee Henny Soon Chiang and Dr. Zhai Pu.

* for identification purpose only