2013.12.13
Fanstasia Clarification in Respond to the Disposal of Property Business

13 December 2013, Hong Kong-Fantasia Holdings Group Co., Limited (“Fantasia” or “the Company”,Stock Code: 1777) today issued a clarificationin respondto the current market rumor of the disposal of property business by the Company.

On 29 November, the Company announced“the Disposal of the Entire Issued Share Capital and the Shareholders’ Loan in China Land Property Holdings Limited” (“the Announcement”). The board of directors of the Company (the “Board”) noted that there was market rumor that the Company would dispose of its property development business following the publication of the Announcement. The Board would like to clarify that as disclosed in the Announcement, the subject of the disposal was only one of the wholly-owned subsidiaries of the Company incorporated in Hong Kong which held the real estate ownership rights of a property in Shanghai and the Company has no intention to dispose of its property business. Property development business will continue to be one of the major business segment of Fantasia.

Currently, the Company has been putting more effort on its property sales.For instance, according to the sales results in November 2013 recentlypublished by the Company, Fantasia has achieved contract sales ofapproximately RMB1.4 billion andgross floor area(“GFA”)sold of approximately around 165,216 square meters, representing a year-on-year increase of 42.46% and 38.21%, respectively. As of 30 November 2013, the Company recorded accumulated contract sales of approximately RMB8.096 billion with an accumulated GFA of 1,097,839 square meters. The Company is very confident to complete thefull year sales target of RMB 10 billion by widening the marketing channels and enhancing sales efforts.

In the meantime, with sufficient salable resources and landbank, the Company closely monitorsthe opportunities in the Mainland as well as overseas for entering core cities with potential for development, laying a solid foundation for rapid growth in property sales in 2014 and afterwards. The Company will also continue to focus on its eight major value-added businesses, namely real estate development, financial services, community services, property management, business management, hotel management, cultural tourism and senior housing, which enable it to become a financial holding group with a business model driven by financial operations, anchored on services, and supported by property development.

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