[For immediate release] Yuzhou Properties' Chairman Increases Personal Shareholding in Company

(28 December 2016, Hong Kong) Mr. Lam Lung On, Chairman of Yuzhou Properties Company Limited ("Yuzhou Properties" or the "Company", together with its subsidiaries referred to as the "Group"; stock code: 01628.HK), increased his shareholding in the Company on 23 and 28 of December 2016 by 2,024,000 shares in total, representing 0.053% of the total issued shares of the Company, for an aggregate consideration of HK$5,152,000 (representing an average price of HK$2.55 per share). This increase in shareholding fully demonstrates the Chairman's confidence in Yuzhou Properties' overall development prospects and growth potential.

The Group has met with a string of good news recently. While bolstering its profit, the Group seized opportunities and acquired lands at prices far below prevailing market valuations. The Group has always made business decisions based on a thorough survey and prudent analysis of the markets where their desired real estates are located and they have long been committed to maintaining a proper balance between scale expansion and profitability.

On 16 December 2016, the Group and Coastal Greenland entered into a cooperation agreement in relation to the proposed acquisition of 100% interests in Wuhan Lan Kong. The area of the land parcels acquired is approximately 168,600 sq.m. and the GFA is approximately 598,200 sq.m.. The maximum consideration amounted to RMB3,589 million, representing a floor price of just RMB6,000/sq.m. Against the backdrop of today's hot land markets which include tender, auction and listing-for-sale procedures, to gain a solid foothold in the Wuhan market by acquiring lands at such a low price is a testament of Yuzhou Properties' keen business acumen and unique vision. As a point of reference, the floor price of nearby land in a recent public auction amounted to RMB13,588/sq.m. If the acquisition ultimately succeeds, Yuzhou Properties will enjoy a solid debut in Wuhan, expanding the Group's formidable reach into central China

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region. Several days after the publication of the cooperation agreement, Wuhan was designated as a National Central City, raising the importance of its development to the level of a national strategy. Moreover, the State Council has officially accepted the 2030 overall city blueprint plan for Wuhan, as recently revealed by the Land Resources and Urban Planning Bureau of Wuhan. As a result, it will become one of the first batch of cities, other than Beijing and Shanghai, which initiated preparation of the new round of overall city planning.

Last week, the Group acquired two plots for residential purpose in Suzhou at very attractive price, RMB3.4 billion in aggregate, thereby rapidly establishing its high-quality land reserves of 460,000 sq.m. there. Accordingly, a new pattern has emerged for the Group to expand into Suzhou and further exploit viable opportunities in central cities in the Yangtze River Delta. The first plot acquired is a residential one with an area of approximately 100,800 sq.m. with a GFA of approximately 221,900 sq.m.. The final floor price is RMB8,865/sq.m.. This plot was sold by drawing lots and the Group ultimately stood out from among 23 bidders and won the bidding at a consideration of RMB1,967 million, representing a premium rate of 47.75%. The second plot is a high-quality commercial-residential land with an area of approximately 128,300 sq.m. and a GFA of 231,000 sq.m. in Xiangcheng District, Suzhou City. The final floor price is RMB6,587/sq.m., representing a premium rate of 1.33%. As a normal practice, the best opportunities for acquiring lands often occur around the Spring Festival season. For this reason, the Group has always adhered to a principle of acquiring lands at strategic times of a year in order to guarantee a more favorable profit margin.

Mr. Lam Lung On, Chairman of the Board of Yuzhou Properties, stated: "In view of the rapid and steady development we've achieved in recent years, I am very optimistic and confident in the future development for the Group. Leveraging on its reputation of excellent quality and strengths and by virtue of its decisive implementation of a region-focused strategy, Yuzhou Properties has been working very hard during the past 22 years. In more specific terms, despite its leading position in the West Strait Region (boasting top housing market share in Xiamen for 11 consecutive years), it continued to expand its coverage into Shanghai, Nanjing and Anhui (ranking among top three in market share of Hefei) and then vigorously entered into Suzhou market (by way of acquiring two plots within three days). With continuous expansion of its coverage in the Yangtze River Delta and a gradual consolidation of its position, the Group has laid a solid foundation for its sustainable development. In the future, we will continue to

uphold the principle of 'establishing a strong foundation in every city we entered', and endeavor to maximize the value and returns for our shareholders and investors through improved corporate governance, management structure and prudent financial strategies, as well as following the concept of 'Building Cities with Heart; Building Home with Love'. "

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Yuzhou Properties Company Limited (01628.HK)

Yuzhou Properties Company Limited is a national property developer, which is based in Shanghai and continuously expands its business in six core cities. Yuzhou Properties strives to become a leading property developer in China with a well-defined expansion strategy as Based in Yangtze River Region, Lead West Strait and Expand Nationwide Coverage.

Established in 1994, Yuzhou Properties specializes in the development of high quality residential, retail and commercial projects. As at 19 Oct 2016, the Company had 64 projects under various stages of development in Xiamen, Fuzhou, Shanghai, Tianjin, Nanjing, Hefei, Hangzhou, Quanzhou, Zhangzhou, Longyan, Bengbu and Hong Kong. Sites measuring a total GFA of over 9.52 million sq. m. are under development or held for future development, Yangtze River Delta Region, West Strait Economic Zone and Bohai Rim Region accounting of 54%, 42% and 4% respectively. Known for its outstanding product quality and diversified product portfolio, strong brand awareness and its experienced management team, Yuzhou Properties has been named "Top 100 China Real Estate Enterprises" for ten years in a row; and Top 50 China Real Estate Enterprises from 2011 to 2016. "Yuzhou" brand has been recognized by the State Administration for Industry and Commerce as a "Renowned Brand in China" and a "Famous Brand" by the Fujian Provincial Government and the Xiamen Municipal government.

For more information about Yuzhou Properties, please visit the company's website: http://www.xmyuzhou.com.cn

Yuzhou Properties Company Limited (HKEX: 01628)

Head/Manager/Assistant Manager of Corporate Finance & Investor Relations Camille Xiong/ Shikai Wu/Christine Huang

Tel: (852) 2508 1718

Fax: (852) 2510 0265

Email: camille.xiong@xmyuzhou.com.cn/shikai.wu@xmyuzhou.com.cn/ huangl3@xmyuzhou.com.cn

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Yuzhou Properties Company Limited published this content on 28 December 2016 and is solely responsible for the information contained herein.
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