Fantasia’s contracted sales for the first three quarters up 62.86% to RMB8.176 billion and is optimistic about achieving the sales target for the year

(8 Oct 2015 – Hong Kong) FantasiaHoldings Group Co., Limited (“Fantasia”, or the “Company”, which togetherwith its subsidiaries is referred to as the “Group”; HKEx stockcode: 1777) announces that its property business achieved steady growth for themonth of September, attributable to favourable government policies for the propertymarket in Mainland China. The Group is optimistic about achieving its salestarget for the year.

The Group achieved contracted sales ofRMB1.093 billion with 127,928 sq.m. in aggregated gross floor area (“GFA”) soldin September. The property division of the Group had also met its contractedsales and cash recycling targets for in the month. Over 10 projects underdevelopment by seven subsidiaries of the Group locating in Shanghai, Wuhan,Shenzhen, Huizhou, Guilin, Nanjing and Suzhou, outperformed their respectivecontracted sales targets for the month.  

For the nine months ended 30 September 2015,the Group recorded aggregated contracted sales of RMB8.176 billion with approximately924,853 sq.m. in aggregate GFA, representing year-on-year growths of 62.86% and23.69%, respectively. The Group has thereby completed 74% ofits RMB11 billion contracted sales target for the year.

According to institutional research rankings,the Group ranked within the top 100 in Mainland China in terms of contractedsales performance for the first 3 quarters in mainland China, while itscontracted sales growth rate was in the upper quartile.  

September and October are in the traditionalpeak sales season in the property market in China. However, the salesoutperformance during the second quarter had fulfilled part of the pend-updemand, taming the overall sales performance of the property market in generalfor September. The market ran into a dichotomy with third- and fourth-tiercities still facing inventory clearance pressure, while selected first- andsecond-tier cities achieved significant transaction volumes.

On 30 September, the People’s Bank of Chinaand China Banking Regulatory Commission further reduced the down payment ofcommercial individual home-purchase financing in non-HPR (home purchaserestriction) cities to 25% of the property value. Many other governmentdepartments also enacted policies such as adjusting the capital requirement forproperty projects and the implementation of cross-region loan collateralized byprovident funds, with an intention to promote healthy development of propertymarket from both the supply and demand ends.  

Mr. Pan Jun, Chairman and Chief ExecutiveOffice of Fantasia indicated that there was a round of favourable news emergedfor the property market in Mainland China. There will be significantly moreprojects launched in key cities, conducive to steady growth in transactionvolume of the whole market the fourth quarter prompted by the persistentlyfavourable housing consumption policies. Thus, property enterprises will seebetter sales and results this year than last year.  

As part of its planning, the Group willleverage its window of opportunity of policies and initiate its volume salemode for the year. More projects will be launched in the fourth quarter tospeed up inventory clearance and sales take-up in newly launched new projectsby adopting more flexible sales strategies. Looking ahead, the Group remainsoptimistic about achieving its RMB11 billion sales target for the year.

On 18 September,through the wholly-owned subsidiary Fantasia Group (China) Company Limited, theGroup completed an issuance of RMB2 billion five-year domestic corporate bonds.This helps further reduce the proportion of offshore debts, optimize its debtstructure, and reduce financing costs and foreign exchange risks, laying asolid foundation for the Group’s business scale growth and sustainabledevelopment.

In line withprompting steady growth in its existing businesses, the Group signed acomprehensive strategic partnership agreement with Beijing Goldin Tide Group(“Goldin Tide”) on 9 September. In the next few years, Fantasia will fullypromote operation and managements of projects under Goldin Tide with aninnovative thinking to provide assets management and assets value-addedservices that are in all dimensions, all cycles and cover all industries.

In order to drive thelight asset transformation of its property business, Fantasia is consolidatingits business segments, namely property development, property operation, assetsmanagement and finance investment to build an industrial property O2O platformcalled “WEWORTH”. This will establish a comprehensive industry ecosystem bycombining online and offline, innovation and entrepreneurship, incubation andinvestment. According to the plan, the first batch of Fantasia’s “WEWORTH”projects will launch soon in cities such as Beijing, Shenzhen and Guangzhou,Chengdu and Wuxi.

Furthermore, a “E-leasing” (「E租房」) series of Colour Life’s(HKEx stock code: 1778) community O2O platform Caizhiyun launched a“Xiangzufang” (「想租房」) APP in September, aiming at establishing a one-stop service platformfor community services such as house leasing, selling and hosting. Currently,“Xiangzufang” covers more than 900 communities Colour Life serves, about 10,000housing units. Colour Life’s community business ecosystem continues to receivenew breakthroughs.

On 11 September,Colour Life was named a “2015 China’s Leading Property Management Brand” by theEnterprise Institute of Development Research Center of the State Council,Property Institute of Tsinghua University and China Index Academy. On 14September, Colour Life ranked 4th among “2015 Top 100 Property ManagementCompanies” by China Property Management Association.