Fantasia’s contracted sales increased by 6.77% yoy to RMB502.9 million in February Sales target for 2016 raised to RBM12 billion

(4 March2016 – 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 its sales performance for February. FantasiaProperty Group, a subsidiary of the Group, achieved contracted sales ofapproximately RMB5,029 million, up 6.77% year on year, with 29,447 sq.m. inaggregated gross floor area (“GFA”) sold. For the 2 months ended at 29 February2016, the Group achieved contracted sales of approximately RMB1,205 million inaggregate with approximately 75,738 sq.m., in aggregated sold GFA, up 20.11% yearon year.

February,which coincides with Chinese Lunar New Year holidays, is the traditional low-seasonfor sales in the property market in mainland China. Due to this holiday factor,Fantasia saw its aggregated GFA sold declined year on year during this month. TheGroup proactively adjusted sales strategies according to market changes, tappedopportunities stemming from the immense inbound tourist traffic home-return journeysfor Spring Festival and continued to put efforts on end-user demand products, therebyaccomplished growth in contracted sales, bucking the trend.

On 3 March 2016,Fantasia and its subsidiary Colour Life Services Group Co., Limited (“ColourLife”, HKEx stock code: 1778) announced their annual results for 2015. In 2015,Fantasia achieved contracted sales of RMB11.27 billion, up 10.4% year on yearand successfully completed its RMB11 billion contracted sales target for theyear, and was ranked among top 100 of the industry for the third consecutiveyear. Fantasia achieved revenue of RMB8,164 million for the year ended 31December 2015, up 11.7% year on year. Net profit for the year was RMB1,403million, up 2.3% from last year. Gross profit margin stood at 30.9% and netmargin at 17.2%, among the highest in the industry.

As at theend of 2015, cash and bank balance of Fantasia was approximately RMB4.22billion with ample cash flow. Net gearing ratio declined substantially by 11.1percentage points to 75.6% with its financial structure remained robust.

In communityservice area, by end- 2015, Colour Life expanded the GFA under its management to322 million sq.m. in aggregate, thereby maintained its position as the world’slargest residential community service enterprise by GFA covered. Colour Lifeachieved revenue of RMB828 million in 2015, up 112.6% year on year and achievedadjusted profit of RMB328 million, up 50.7% year on year. Net cash fromoperating activities increased by 317.3% year on year to RMB238 million, whilesubstantial growth was maintained for a number of financial measures.

Perpetuatingthe complexities lingered in the external economic environment in 2015, thedomestic economy in China is still subject to pressure for downward adjustmentsthis year, and therefore the Central Government has launched policies tostimulate the property sector with inventory clearance as the core. On 2February 2016, the People’s Bank of China made and adjustment on individualhousing loan policy and lowered the down-payment ratio. On 19 February 2016,the Ministry of Finance made adjustments on deed tax and sales tax of propertytransactions to encourage end-user and home-improvement demand. Many localgovernments have also introduced policies to stimulate the local propertymarkets correspondingly.

Mr. Pan Jun,Chairman of the Board and Chief Executive Officer of Fantasia said, reaping benefitsfrom the favourable policies such as inventory clearance pushes and home-purchasestimulants, the property market in mainland China as a whole will continue torevive and transaction volume will continue to rise. The markets in first- andsecond-tier cities where Fantasia is taking roots in will be more active. TheGroup will grasp this window of opportunity of property market revival, andproactively adjust its sale pace according to market changes and speed up theinventory clearance in order to achieve continuous rapid growth in sales. Salestarget for 2016 for the Group has been raised to RMB12 billion.

While maintaining steady development in the traditional propertybusiness, Fantasia will commit further to exploit better economies of scale inthe communities to nurture a maturing community business ecosystem. Colour Life,on one hand, targets to expand the GFA under its management to 420 millionsq.m. in aggregate in 2016 by adding 100 million sq.m. On the other hand ColourLife will continuously increase online vertical products and applications basedon community and household scenes to promote complete upgrades of its communitybusiness ecosystem.

After the listing on NEEQ, Home E&E will take on a massiveexpansion stride in both online and offline directions to achieve theestablishment of its online/offline retail sharing resort property managementsystem with a significant increase of its scale of offline property management.In addition, with gradual implementation of a management by category systemadopted by NEEQ, high-quality NEEQ companies will benefit from this burgeoning capitalmarket. Fantasia will proactively facilitate inclusion of Home E&E in the innovativecompany category, laying a foundation for financing in future.

Mr. Pan Jun indicates that 2016 marks an important trigger in the developmentand expansion stage of Fantasia Group. The Group will continue to strengthenits foothold in community, business structure adjustments and seek to achievelight-asset transformations further. Through integrating internal and externalenterprise resources, the Group will establish a comprehensive community andhousehold-scene business ecosystem driven by financial operations, supported byproducts and anchored on services. The Group will achieve deepened improvementsin its business systems and expanded its exploration in commercial modelinnovation and service value discovery as well as carry out new capitaloperations.