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. CHINA EVERGRANDE GROUP 中 國 恒 大 集 團 (Incorporated in the Cayman Islands with limited liability) (Stock Code: 3333) ANNOUNCEMENT OF UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2018 FINANCIAL HIGHLIGHTS . Revenue increased by 59.8% to RMB300.35 billion for the six months ended 30 June 2018 (the Reporting Period) as compared with the corresponding period of 2017. Gross profit increased by 61.8% to RMB108.86 billion for the Reporting Period as compared with the corresponding period of 2017; gross profit margin was 36.2%, an increase of 0.4 percentage points. Net profit increased by 129.3% to RMB53.03 billion for the Reporting Period as compared with the corresponding period of 2017; net profit margin was 17.7%, an increase of 5.4 percentage points. Core business profit1 increasedby101.5%toRMB55.01billion for the Reporting Period as compared with the corresponding period of 2017; core business profit margin was 18.3%, an increase of 3.8 percentage points. Profit attributable to shareholders increased by 63.6% to RMB30.81 billion for the Reporting Period as compared with the corresponding period of 2017. 1 Core business profit represents net profit excluding fair value gains on investment properties, exchange gains or losses, fair value gains on derivative financial liabilities, fair value losses on financial assets at fair value through profit or loss, gains on disposal of financial assets at fair value through other comprehensive income, losses on disposal of available-for-sale financial assets and one-off donation. – 1 – . Contracted sales during the Reporting Period amounted to RMB304.18 billion, representing an increase of 24.6% as compared with the corresponding period of 2017; the gross floor area of contracted sales was 29.059 million square meters, representing a growth of 17.4% as compared with the corresponding period of 2017; the average price of contracted sales was RMB10,468 per square meter, representing an increase of 6.1% as compared with the corresponding period of 2017. – 2 – The board of directors (the ‘‘Board’’) of China Evergrande Group (the ‘‘Company’’) is pleased to announce the unaudited consolidated results of the Company and its subsidiaries (the ‘‘Group’’)forthe six months ended 30 June 2018. CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Six months ended 30 June 2018 2017 (Unaudited) (Unaudited) Note RMB million RMB million Revenue 5 300,348 187,981 Cost of sales 6 (191,489) (120,677) Gross profit 108,859 67,304 Fair value gains on investment properties 5 1,347 6,001 Other income 7 4,395 2,520 Other gains/(losses), net 9 2,471 (7,023) Selling and marketing costs (9,334) (7,824) Administrative expenses (6,593) (5,430) Other operating expenses (3,562) (2,051) Operating profit 97,583 53,497 Share of profits of investments accounted for using the equity method 5 1,051 263 Fair value losses on financial assets at fair value through profit or loss 10 (428) (266) Fair value gains on derivative financial liabilities 5 1,203 — Finance costs, net 8 (6,219) (5,151) Profit before income tax 93,190 48,343 Income tax expenses 11 (40,164) (25,216) Profit for the period 53,026 23,127 – 3 – CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Continued) Six months ended 30 June 2018 2017 (Unaudited) (Unaudited) Note RMB million RMB million Other comprehensive income (Item that may be reclassified to profit or loss) Changes in fair value of available-for-sale financial assets, net of tax — 2,435 Share of other comprehensive income of investments accounted for using the equity method 78 2,017 Currency translation differences 184 (241) (Item that may not be reclassified to profit or loss) Changes in fair value of financial assets at fair value through other comprehensive income, net of tax (354) — Other comprehensive (losses)/income for the period, net of tax (92) 4,211 Total comprehensive income for the period 52,934 27,338 Profit attributable to: Shareholders of the Company 30,805 18,834 Non-controlling interests 22,221 4,293 53,026 23,127 Total comprehensive income attributable to: Shareholders of the Company 30,777 22,028 Non-controlling interests 22,157 5,310 52,934 27,338 Earnings per share for profit attributable to shareholders of the Company for the period (expressed in RMB per share) — Basic earnings per share 12 2.338 1.400 — Diluted earnings per share 12 2.202 1.374 Dividends 13 14,732 — – 4 – CONDENSED CONSOLIDATED BALANCE SHEET 30 June 31 December 2018 2017 (Unaudited) (Audited) Note RMB million RMB million ASSETS Non-current assets Property, plant and equipment 35,816 32,898 Land use rights 8,083 7,935 Investment properties 158,582 151,950 Goodwill 1,595 1,402 Intangible assets 275 253 Trade and other receivables 14 1,801 4,352 Prepayments 15 1,506 1,202 Investments accounted for using the equity method 5 45,336 30,376 Financial assets at fair value through other comprehensive income 2,056 — Available-for-sale financial assets — 4,565 Deferred income tax assets 3,583 3,872 258,633 238,805 Current assets Inventories — 126 Available-for-sale financial assets — 1,520 Properties under development 830,414 851,363 Completed properties held for sale 127,643 102,158 Trade and other receivables 14 130,072 120,782 Contract costs 1,994 — Prepayments 15 151,384 146,923 Income tax recoverable 9,862 9,203 Financial assets at fair value through profit or loss 10 1,942 3,150 Restricted cash 101,390 135,714 Cash and cash equivalents 156,554 152,008 1,511,255 1,522,947 Total assets 1,769,888 1,761,752 – 5 – CONDENSED CONSOLIDATED BALANCE SHEET (Continued) 30 June 31 December 2018 2017 (Unaudited) (Audited) Note RMB million RMB million EQUITY Equity attributable to shareholders of the Company Share capital and premium 1,312 1,270 Other reserves 58,087 57,292 Retained earnings 86,368 56,210 145,767 114,772 Non-controlling interests 178,759 127,436 Total equity 324,526 242,208 LIABILITIES Non-current liabilities Borrowings 372,678 376,244 Derivative financial liabilities 5,090 2,840 Other payables 16 1,025 4,049 Deferred income tax liabilities 47,972 51,556 426,765 434,689 Current liabilities Borrowings 298,451 356,381 Trade and other payables 16 454,410 399,459 Contract liabilities 176,531 — Receipt in advance from customers — 267,555 Current income tax liabilities 89,205 61,460 1,018,597 1,084,855 Total liabilities 1,445,362 1,519,544 Total equity and liabilities 1,769,888 1,761,752 – 6 – Notes: 1. GENERAL INFORMATION China Evergrande Group (the ‘‘Company’’),wasincorporatedintheCaymanIslandson26June2006asanexempted company with limited liability under the Companies Law, Cap. 22 (2009 Revision as consolidated and revised from time to time) of the Cayman Islands. The Company is engaged in investment holding. The Company and its subsidiaries (the ‘‘Group’’) are principally engaged in property development, property investment, property management, property construction, hotel operations, internet business, health industry business and investment business in the People’s Republic of China (the ‘‘PRC’’). The address of its registered office is P.O. Box 309, Ugland House, Grand Cayman, KY1-1104, the Cayman Islands. The Company had its listing on the Main Board of The Stock Exchange of Hong Kong Limited (the ‘‘Stock Exchange’’) on 5 November 2009. The interim consolidated financial information is presented in millions of Renminbi Yuan (‘‘RMB’’), unless otherwise stated. The interim consolidated financial information has been approved for issue by the Board of Directors of the Company on 28 August 2018. This interim consolidated financial information has not been audited. 2. BASIS OF PREPARATION This interim consolidated financial information for the six months ended 30 June 2018 has been prepared in accordance with Hong Kong Accounting Standard (‘‘HKAS’’)34,‘‘Interim financial reporting’’. The interim consolidated financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2017, which have been prepared in accordance with Hong Kong Financial Reporting Standards (‘‘HKFRS’’). 3. ACCOUNTING POLICIES Except as described below, the accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2017, as described in those annual financial statements. (i) New standards and amendments to standards adopted by the Group as at 1 January 2018 The following amendments to standards are mandatory for the Group’s financial year beginning on 1 January 2018 for the Group: HKFRS 9 Financial Instruments HKFRS 15 Revenue from Contracts with Customers HKFRS 2 (Amendment) Classification and Measurement of Share-based Payment Transactions HKFRS 4 (Amendment) Applying HKFRS 9 Financial Instruments with HKFRS 4 Insurance Contracts HKAS 28 (Amendment) Investments in Associates and Joint Ventures HKFRS 40 (Amendment) Investments in Investment property HK (IFRIC) 22 Foreign Currency Transactions and Advance Consideration Save for the impact of adoption of HKFRS 9 and HKFRS 15 disclosed in note 4, the adoption of other new and amended standards does not have any significant impact on the results and financial position of the Group. – 7 – (ii) New standards and amendments to standards that have been issued but are not effective HKAS 19 (Amendments) Employee Benefits1 HKAS 28 (Amendments) Long-term Interests in an Associate or Joint Venture1 HKFRS 9 (Amendments) Prepayment Features with Negative Compensation1 HKFRS 16 Leases1 HKFRS 17 Insurance Contracts2 HKFRS 10 and HKAS 28 Sale or contribution of assets between an investor and its associate (Amendments) or joint venture3 Annual Improvements to Improvements to HKFRS1 2015–2017 Cycle HK (IFRIC) 23 Uncertainty over Income Tax Treatments1 1 Effective for periods beginning on or after 1 January 2019.