(5 January2016 – Hong Kong) Fantasia Holdings Group Co., Limited (“Fantasia” or the“Company”, which together with its subsidiaries, is referred to as the “Group”;HKEx stock code: 1777) announces that it hadoverachieved its sales targetfor 2015 and consolidated its competitive edge on traditionalbusinesses, unleashed development efforts for its multiplecommunity service platforms, thereby enhanced its leading position further in thecommunity service industry in China.

Ranked among Top 100 property developers for threeconsecutive years

In December2015, the Group achieved contracted sales of approximately RMB1.163 billionwith 115,100 sq.m. in aggregated sold gross floor area (“GFA”).

For the 12months ended at 31 December 2015, the Group achieved contracted sales ofapproximately RMB11.272 billion with approximately 1,289,000 sq.m.in aggregate sold GFA, representing a year-on-year increase of 10.4% and ayear-on-year decrease of 6.6%, respectively. TheGroup has successfully completed its RMB11 billion contracted sales target forthe year.

The Grouphad been able to achieve its sales target for the year due to the steadyrecovery in the property market in mainlandChina. In 2015, China enacted an array of favourable monetary and fiscal policies, utilised more openmarket instruments to replace with previous restrictive measures, a move that stimulated the transaction volumes in the property market as a whole, bothtransaction volumes andprices recorded increases in selected first-tiercities.

The propertymarket in China led a trend for the whole year as the Group had prescribed. Fantasia perpetuatedits proactive and flexible sales strategy to tap this window of opportunity. Itstrengthened its sales efforts and expedited the collection of sales receipts,contributing to the steady growth in sales volume. Outstanding contracted salesperformances were achieved in Shenzhen, Wuhan, Huizhou, Guilin, Nanjing andSuzhou.

According tothe latest 2015 China’s Real Estate Sales Ranking published by the ChineseIndustry Academy, and China’s Real EstateEnterprises TOP100 Sales Ranking in 2015 published by CRICChina, Fantasia was ranked among top 100 of the industry, Meanwhile, Fantasiahad been included, for the third consecutive year, in the league of real estateenterprises in China with annual contracted sales exceeding RMB10 billion.

Building multiple capital platforms driven by financialoperations

Toconsolidate the real estate business a competitive advantage while accelerating itstransformation into a light- asset model are the established developing strategiesof Fantasia. In 2015, Fantasia focused on building community service platforms andachieved balanced efforts in multiple platforms, showcasingpreliminarily the enormous potential for Fantasia’s “Community +” businessecosystem.

On 9December 2015, Shenzhen Home E&E Commercial Services Group Co., Ltd. (“HomeE&E”), an indirect subsidiary of Fantasia, received an approval for listingof its shares on the National Equities Exchange and Quotations Systems (“NEEQ”)under the stock code: 834669, making it the first listed company in in thebusiness of short-term rentals and resort property operation.

The listingon the NEEQ enables Home E&E to build its independent unique financingplatform, improve its corporate capital structure, mitigate business risks, andenhance corporate governance standards and the public’s awareness in it as acorporation.

It is theGroup’s third public company, following listing of Colour Life (HKEx stockcode: 1778) and gives rise to Fantasia’s multi-echeloncapital platforms with community services as the core business. After listing,Home E&E initiated its first round of top-up issuance via privateplacement. Renowned financial institutionsincluded ShenzhenCapital and Canopy Capital participated in subscriptions for the shares that raised proceedsof approximately RMB205 million

The launch ofHome E&E marked Fantasia’s official entry to the resort property operationand short-term rentals market in China, accelerating the establishment of acomprehensive online-to-offline resort reservation system.  

On 28December 2015, Fantasia completed an acquisition of the entire interests inMorning Star Group Limited (“Morning Star”) through its indirect subsidiary. This move allowed the Companyto tap tourism and get connectedwith its cultural tourism industry chain, which will helpdevelop its communitytourism business and strengthen the competitive advantages of the Group’s communityservice platform.

As prescribed, Fantasia will leverage MorningStar’s online platform and internet presence in order to establish a unique model of customized tourism business model based on its community service platform. Meanwhile, the Group is joiningforces with market leaders in China to explore different models of travelservices including B2B, B2C and O2O, eventually accomplishing thoroughdevelopment of its cultural tourism businesses.

“Three wings from a trunk” inauguratesa new era of community service

On 28December 2015, Colour Life and Morning Star reached an “Online + Offline”strategic agreement. With management services covering over 1,000communities in China, Colour Life’s and Morning Star provide complementaryservices to jointly establish a tourism-related offering, “Morning Star Holiday”, which will belaunched on Colour Cloud’s mobile application platform soon. The integration of Morning Star and ColourLife’s community platforms will give Morning star access to a strong customer base and enhanceColour Life’s community business ecosystem, taking stickiness and activity ofusers of its O2O community platform to the next level.  

Connecting MorningStar to Colour Cloud represents one of the steps towards enhancing Colour Life’scommunity business ecosystem. In 2015, Colour Life acquired KaiyuanInternational Property Management Co., Ltd. to further secureits position in the high-end community management sector; implemented “CaifuRensheng” (“彩富人生”) value-accretionplan, allowing up to 10,000 households to enjoy property management servicesfor free; introducing residential properties under Colour Life’s brand, leadingthe property sector towards a new era of generating profits by serviceprovision. E-Repair (“E维修”) has struck in a great success and become animportant role model for community O2O. While E-Clean (”保潔”) and E-Safety (“E安全”), which are currently in progress, are expectedto become incredible gears on Colour Life’s community service platform.    

As at 31December 2015, the residential communities under the development and managementof Colour Life aggregated over 320 million sq.m. in GFA. Its competiveness withthe largest scale among the industry has further strengthened.

The community expansion of Fantasiaentered into a “three wings from one trunk” model with mergers and acquisitions Colour Life, thecross-industry cooperation of Home E&E and the formation of property managementalliance in Jiefangqu (“解放區”). As of the end of the 2015, the number of totalregistered users of “Jiefangqu”, another community service platform underFantasia has reached 1.90 million. The number of property management companies in the alliance that signed partnership agreements also reached to 450with cooperating methods including provision of free platform services, jointoperations and output of management services.

In 2015, China Overseas Property HoldingsLimited and Zhong Ao Home Group Limited listed on the Hong Kong Stock Exchangesand more than 16 property management companies also listed on the NEEQ, inaugurating an era of the upgraded transformationin China’s property management towards community services.

Mr. Pan Jun, Chairman of Fantasia, saidthat Colour Life model has created a precedent for community services in Chinaand there will be more followers enter the industry in future. In 2015,Fantasia will be “driven by financial operations and products, anchored on services”to create a community business ecosystem based on communities and families tospeed up product innovation and industry leadership.