China Aoyuan Group Limited

Chairman Guo Zi Wen of Aoyuan and Chairman Lee Ka Kit of Henderson Land Personally Subscribe for New Shares of Aoyuan for a Total Consideration of HK$1 Billion
Introduction of Strategic Investor Broadens Shareholder Base and Demonstrates Confidence in Prospect of Aoyuan

Time：2021-09-27

(27 September 2021 – Hong Kong) China Aoyuan Group Limited (“Aoyuan” or the “Company”, Stock Code: 3883) announces that the Company and Successful Lotus have entered into a subscription agreement, where Successful Lotus will subscribe for 107,875,000 new shares of Aoyuan at HK$3.708 per share for a total consideration of approximately HK$400 million. On the same day, Mr. Guo Zi Wen, Chairman of the Company, will subscribe for 161,813,000 new shares of Aoyuan at HK$3.708 per share for a total consideration of approximately HK$600 million. The subscription shares of Successful Lotus and Chairman Guo will account for approximately 3.64% and 5.46% of the total enlarged issued shares, respectively. It is expected that the net proceeds from the above subscriptions will amount to approximately HK$998 million, which will be utilized as the Company's working capital and for general corporate purposes.

Successful Lotus is an investment company wholly-owned by Dr. Lee Ka Kit, an Executive Director and the Co-chairman of Henderson Land Development Co., Ltd. ("Henderson Land", Stock Code: 12), a renowned property developer in Hong Kong.

Aoyuan management commented, “Aoyuan is honored to introduce Chairman Lee Ka Kit of Henderson Land as a strategic investor as well as to have Chairman Guo subscribing for new shares of the Company. This will help broaden the Company’s shareholder base, strengthen its share capital and optimize its credit indicators, while manifesting the recognition of and confidence in the future development of Aoyuan. In April 2018, Aoyuan first introduced Henderson Land to develop an urban redevelopment project in the Guangdong-Hong Kong-Macao Greater Bay Area — Guangzhou Aoyuan Henderson The Residence Class. After three years of development, the project was launched for presale on 18 September 2021, recording an overwhelming response with sales of over RMB1 billion within the first two hours of launch. As of end-June 2021, Aoyuan had over 70 urban redevelopment projects at different phases. They are expected to provide additional saleable resources of over RMB750 billion, of which 99% were located in the Greater Bay Area. Looking forward, Aoyuan will continue to deepen development and collaboration of urban redevelopment projects in the Greater Bay Area through integrating competitive advantages and resources of different partners, thereby achieving win-win for all while promoting Aoyuan’s sustainable and high-quality development.”

– End –

在·