These two land parcels are located on Xiangxue Avenue in Luogang District, which is the commercial, financial and political centre of Luogang District in Guangzhou. They are only 1.5 kilometres away from the Luogang District Government and at the intersection of multiple subway lines close to the Xiangxue metro station which enjoys high passenger traffic. These sites are sufficiently supported by amenities of schools, hospitals, an international art centre and park, etc. The first parcel covers a site area of approximately 52,914 square meters and with expected gross floor area ("GFA") of approximately 211,656 sq. m.. The second parcel covers a site area of approximately 29,652 sq. m. and with expected GFA of approximately 88,363 sq. m. in planned GFA. The two sites, which can be developed into approximately 300,000 sq. m. in aggregate planned GFA, are adjacent to each other and can therefore be planned and developed as a single project to maximize the project value. They are earmarked to be developed into a large-scale integrated commercial and residential project.

Geographically, these two sites are ideally located adjacent to another Aoyuan project, "Aoyuan·Spring Garden", arranged in a layout that the Group believes will allow much better sharing of resources, increase cost efficiencies and strengthen the Group’s brand influence in Luogang district of Guangzhou. Launched for sale for the first time in June this year, Aoyuan·Spring Garden received overwhelming responses with all units launched for sale sold out on the launch day and achieved RMB400 million in sales, making the project the best-seller in Guangzhou. This outstanding sales performance illustrated the strong end user demand in Luogang District.

Aoyuan acquires two sites for commercial and residential use in Luogang District of Guangzhou for a total of RMB1.3 billion

Mr. Guo Zi Wen, Chairman of Aoyuan, said, "Following the land acquisition in Chonqing Chayuan earlier this month, the Group acted again in the land market and acquired the sites in Luogang, Guangzhou. Within the month of August, the Group spent RMB2.275 billion in aggregate in acquisitions of these three land parcels. These helped further strengthen the Group’s land bank and are in line with the Group’s long-term strategy. Since the beginning of this year, the Group entered into 8 acquisitions to acquire quality projects, most of which are located in Guangdong Province, including Zengcheng in Guangzhou, Jiangmen in Guangdong, Nanhai in Foshan, Yangjiang in Guangdong, Luogang in Guangzhou, and one in Chongqing Municipality. This year, the Group has entered into a phase of rapid development. Aoyuan will continue to upgrade and be innovative in key areas including product positioning, product design, marketing and sales planning. The Group proactively engages in development of commercial and residential mixed-use projects, whilst continuing to boost our land bank and maximize value for our shareholders."