China Evergrande : ADJUSTMENT TO CONVERSION PRICE OF CONVERTIBLE BONDS

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CHINA EVERGRANDE GROUP

中 國 恒 大 集 團

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 3333)

ADJUSTMENT TO CONVERSION PRICE OF CONVERTIBLE BONDS

The Company announces that the Conversion Price of the Convertible Bonds will be adjusted from the existing HK$34.37 per Share to HK$33.24 per Share as a result of the payment of the Final Dividend.

Reference is made to the announcement of China Evergrande Group (the ''Company'') dated 31 January 2018 (the ''Announcement'') in relation to the issue of HK$18.00 billion 4.25% convertible bonds due 2023 (the ''Convertible Bonds''). The Convertible Bonds are listed on SGX-ST. Unless otherwise stated herein, capitalised terms used herein shall have the same meanings as those defined in the Announcement.

Reference is also made to the announcement of the Company dated 6 July 2020 in relation to the poll results of the annual general meeting of the Company held on the same date (the ''AGM''). At the AGM, the payment of a final dividend of RMB0.653 per Share (equivalent to HK$0.71 per Share) for the year ended 31 December 2019 (the ''Final Dividend'') as recommended by the Board was approved by the Shareholders.

The Final Dividend to Shareholders has been paid on 21 July 2020 to Shareholders whose names appear on the register of Shareholders of the Company on 10 July 2020.

Notice is hereby given that, based on the adjustment provisions stipulated under the terms and conditions of the Convertible Bonds, an adjustment has been made to the Conversion Price as a result of the payment of the Final Dividend.

The Conversion Price of the Convertible Bonds, currently HK$34.37 per Share (the ''Existing Conversion Price''), has been adjusted to HK$33.24 per Share (the ''Adjusted Conversion Price'') with effect from 11 July 2020.

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Based on the total outstanding principal amount of the Convertible Bonds of HK$18,000,000,000 at the date of this announcement, the maximum number of Shares that will be issued upon conversion of all the outstanding Convertible Bonds at the Existing Conversion Price and the Adjusted Conversion Price are 523,712,540 Shares and 541,516,245 Shares, respectively.

Any holder of the Convertible Bonds who is in doubt as to the action to be taken should consult his/ her/its stockbroker, bank manager, solicitor, professional accountant or other professional adviser.

By order of the board

China Evergrande Group

Hui Ka Yan

Chairman

Hong Kong, 24 July 2020

As at the date of this announcement, the executive Directors are Mr. Hui Ka Yan, Mr. Xia Haijun, Mr. Shi Junping, Mr. Pan Darong, Mr. Huang Xiangui and Mr. Lai Lixin, and the independent non- executive Directors are Mr. Chau Shing Yim, David, Mr. He Qi and Ms. Xie Hongxi.

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