AviChina Industry & Technology : ANNOUNCEMENT-PROFIT WARNING OF HONGDU AVIATION

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中國航空科技工業股份有限公司

AviChina Industry & Technology Company Limited*

(A joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 2357)

ANNOUNCEMENT PROFIT WARNING OF HONGDU AVIATION

Jiangxi Hongdu Aviation Industry Co., Ltd ( 江西洪都航空工業股份有限公司) ("Hongdu Aviation"), a non-wholly-owned subsidiary of AviChina Industry & Technology Company Limited* (the "Company"), published an announcement on 23 January 2017 in relation to the expected decrease in its annual results for the year 2016 on the website of the Shanghai Stock Exchange (www.sse.com.cn). It is estimated that net profits attributable to the shareholders of Hongdu Aviation in 2016 may decrease by approximately 90% (on an unaudited basis) as compared with those of last year. The main reasons are that the non-operating revenue of Hongdu Aviation in 2016 decreased as compared with that of 2015 and that Hongdu Aviation received compensation revenue in 2015 for the aviation products sold in the preceding years, while there was non such income in 2016.

The board of directors of the Company considers that the decrease in net profits of Hongdu Aviation for the year 2016 may have adverse impact on the results of the Company for the year 2016 to a certain degree.

Shareholders and potential investors of the Company should thus exercise caution when dealing in the securities of the Company.

For details of the profit warning of Hongdu Aviation, please refer to the announcement published by Hongdu Aviation on 23 January 2017 on the website of the Shanghai Stock Exchange (www.sse.com.cn).

By Order of the board of directors

AviChina Industry & Technology Company Limited* Xu Bin

Company Secretary

Beijing, 23 January 2017

As at the date of this announcement, the Board comprises executive Director Mr. Lin Zuoming, non-executive Directors Mr. Tan Ruisong, Mr. Gu Huizhong, Mr. Gao Jianshe, Mr. He Zhiping and Mr. Kiran Rao as well as independent non-executive Directors Mr. Lau Chung Man, Louis, Mr. Liu Renhuai and Mr. Yeung Jason Chi Wai.

* For identification purposes only.