China New Town Development : VOLUNTARY ANNOUNCEMENT Agreement of Reigate Grammar School Project in Zhangjiagang High-Tech Zone

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 New Town Development Company Limited 中國新城鎮發展有限公司

(Incorporated as a business company limited by shares under the laws of the British Virgin Islands)

(Stock Code: 1278)

VOLUNTARY ANNOUNCEMENT

Agreement of Reigate Grammar School Project in Zhangjiagang

High-Tech Zone

The Board of Directors (the "Board") of the Company (collectively with its subsidiaries, the "Group") is pleased to announce that, recently, China Development Bank Education Company Limited ("CDB Education"), a wholly-owned subsidiary of the Company, entered into a co-operation agreement with the committee of administration of high-tech industry development zone in Zhangjiagang, Jiangsu Province("Zhangjiagang High-Tech Zone"), in relation to the investment in operating Reigate Grammar Bilingual School*(萊爵公學雙語學校). Pursuant to the agreement, CDB Education will promote that Kaiyuan Education Fund LP ("Kaiyuan Fund") invests and operates Reigate Grammar Bilingual School in Zhangjiagang ("Zhangjiagang Reigate School")* （「張家港萊爵學校」）, which covers fifteen years of education from kindergarten to high school.

Since 2017, the Group has regarded the education industry as an important part of improving people's livelihood. In the face of the needs of social development, the Group has combined providing comprehensive and diversified education products and services with its principle business of urbanization. CDB Education, a wholly-owned subsidiary, was thus established for the investment in the education industry.

Kaiyuan Fund is a private equity fund initiated by CDB Education and other partners in 2018, mainly investing in the private education industry in Greater China. CDB Education holds 40% interest in the general partner of the fund as its strategic shareholder and actively participates in the fund management, mainly seeking quality education investment projects for the fund by leveraging its nationwide network and resources. At the same time, CDB Education has subscribed for a share of USD40,000,000 as a limited partner in Kaiyuan Fund, while committing to a contribution of an amount equivalent to other limited partners in aggregate to Kaiyuan Fund. For the relevant terms and conditions of Kaiyuan Fund, please refer to the announcement published by the Company on 21 January 2018.

Kaiyuan Fund has obtained the exclusive authorization of Reigate Grammar School to develop a series of Reigate bilingual schools in China, with comprehensive operational support from Reigate Grammar School. Founded in 1675, Reigate Grammar School is an independent full-time K12 coeducation school, and is one of the top private schools in the UK, which is regarded as exceptional by ISI, the official rating institution of the education industry in the UK.

Currently, the Group holds 50% of Nanjing Guoying Zhongxi Development Co., Ltd. through its wholly-owned subsidiary, CDB Nanjing Investment Development Co., Ltd. and China New Town Holding Company Limited, which is implementing the development and construction of a private international school in Jiangning District, Nanjing. The school will be managed by Kaiyuan Fund with Reigate brand, which is named Nanjing Reigate School. The project is currently in good progress and the school is expected be partially opened for studying this year. It is intended to build an international bilingual K12 school originated in Chinese culture as a starting point and implement the Group's layout in the education sector.

Zhangjiagang Reigate School is the second project after the Nanjing Reigate invested by Kaiyuan Fund in the K12 school sector. It is expected that the investment for the school construction will be approximately RMB600 million in total, and will be developed by the government in a PPP mode. Kaiyuan Fund will be responsible for the long-term operation of the school and obtain operation income. The project will implement the overall strategic layout of Kaiyuan Fund in the education sector and continue to spread the brand of Reigate Grammar School through operating in the asset-light mode. Zhangjiagang Reigate School will be a full-time K12 school integrating the advanced theories in education and curriculum both domestic and abroad, which will interact with its sister school in Nanjing. It will deeply implant the idea of K12 bilingual teaching and curriculum into Jiangsu, so as to establish a reputation and a positive cycle of growth with enrollment.

For and on behalf of

China New Town Development Company Limited

Liu Heqiang

Chief Executive Officer

Hong Kong, 5 August 2019

As at the date of this announcement, the executive directors of the Company are Mr. Liu Heqiang (Chief Executive Officer), Ms. Yang Meiyu, Mr. Ren Xiaowei and Mr. Shi Janson Bing; the non-executive directors of the Company are Mr. Zuo Kun (Chairman), Mr. Li Yao Min (Vice Chairman), Mr. Wei Dongzheng and Mr. Wang Jiangang; and the independent non-executive directors of the Company are Mr. Henry Tan Song Kok, Mr. Kong Siu Chee, Mr. Zhang Hao and Mr. E Hock Yap.

*For identification only