(6th October 2014, Hong Kong)— Fantasia Holdings Group Co., Limited (“Fantasia” or “the Company”, SEHK stock code 1777) announced that following the listing of Colour Life Services Group Co. Limited on the main board of the Hong Kong Stock Exchange, the Company comprehensively initiated the light-asset transformation which involved a shift from a product-oriented  pattern to a platform-oriented  pattern, and began to speed up the coordination and integration process of eight principal business segments.
 
With the long-term macro-control, the real estate market in China has experienced a series of profound changes since September. From the central government to local governments, new housing policies were introduced in a row, and the adjustment of house purchasing quota policies was carried out in depth. More than forty cities nationwide cancelled the house purchasing restrictions successively. There were widespread voices about loosening restriction of the real estate finance. People's Bank of China and China Banking Regulatory Commission published documents to reasonably adjust the housing loan policy. 
 
To some extent, the housing policy adjustment raised the release of demands. Leveraging the “window” period of the market, Fantasia adopted flexible pricing policy to accelerate the process of de-stocking, which achieved significant progress. In September, the contract sales area was 237,915 m2 and the amount of contract sales was RMB1.701 billion, representing an increase of 75.44% and 91.12% year on year respectively, and up by 56.35% and 63.03% respectively as compared with that of August, 2014, which hit record high in terms of the amount of monthly sales in a year. The main areas that contributed to such growth were key cities such as Chengdu, Tianjin, Ningbo, Suzhou and Wuhan. 
 
As at 30 September 2014, Fantasia Real achieved an aggregate contract sales area of 747,718 m2 within the year, with contract sales amount of RMB5.020 billion.

Mr. Pan Jun, the Chairman & CEO of Fantasia, suggested that according to government’s slogan of “letting the market takes the lead in resources distribution”, it was a major trend for the real estate market to become market-oriented. The successive cancellation of administrative measures will further release the market demands, pushing the figures of market transactions to rebound. As planned, Fantasia will comprehensively increase the marketing and sales in the fourth quarter. The Company has confidence in achieving the annual sales target of RMB 10 billion. 

Mr. Pan Jun also pointed out that although the future real estate industry will maintain overall stability amidst fluctuations, the business transitions of companies from Nokia and Motorola to Samsung and Apple suggested that the platform-oriented thinking pattern will ultimately excel the product-oriented pattern, only asset-light transformation will be real estate enterprises’ path to the future. 
 
According to the light-asset strategic transformation strategy, Fantasia has begun to split its businesses into real estate fund and construction agent company, creating a whole new business development model.
 
In the sector of commercial management business, Fantasia’s light-asset business management model began to come into shape. Its Nanjing Yuhuatai Project gradually set up in September, with occupancy rate of 90%, and that of Guilin Huashengtang has reached 75%. Contracts have been signed with ihaveu.com in relation to Chengdu Pixian Outlets Project, a high-end international brand shopping centre, which introduced more than 20 international first-tier brands in order to realize online and offline cross-border cooperation which started a brand new business cooperation model. The larger scale projects of Suzhou and Chengdu Hongtang, with more commercial activities and higher positioning, are in an intense preparation. In addition, business planning investment operation management projects, which were outside Fantasia’s system, were taken over by business management company. These projects include the Yangzhou Jielong Project which already started comprehensive cooperation, and the two new entrust management projects in September, Hefei and Changsha. Within this year, the business management company is planning to undertake eight light-asset management export projects to achieve a significant surpass in the annual performance indicators. 
 
Mr. Pan Jun also emphasized that based on the establishment of a unified platform, the key point of the light-asset transformation was to shift from the perspective of clients to perspective of users, in order that products and services can truly focus on the demands of users. He said, “Having only one function is far from the achievement of victory. We should depend on the continuous update of functions and the improvement of customer experience to elevate our value, which is also one of the essential reasons for the transformation of Fantasia. ”
 
In order to enhance users’ satisfaction continuously and increase corporate capitalization, the Company set the year of 2014 as the year of improving customer service quality and creating users’ value comprehensively by leveraging the “largest community service operator platform of the PRC”, thereby providing the customers with multiple products and services in a full life circle. 
 
In the financial sector, Fantasia Financial is expanding continuously in the field of community finance, so as to facilitate the creative cooperation with each business sector of Fantasia Group gradually. Its online P2P credit business is closely collaborating with Colorful Life and will penetrate the Colorful Life community in a large scale to start the promotion in September, with more than 6,000 additional registered users. As at the end of September, the number of the users of the platform reached 25,000. Furthermore, the cooperative frameworks with the community senior health sector and the property management sector have been finalized basically. The finance leasing business of the Group continued to expand in terms of cross-border finance, business presence spanning across various provinces and cities in the country such as the Northeastern China, Beijing, Yunnan, Guangxi, Sichuan, Jiangxi, Hunan, Hubei, which assisted to increase its national popularity. Moreover, the development of the non-banking finance channels is in progress in the meantime. 
 
Furthermore, the senior housing business sector is also taking advantages of Fantasia’s platform to enhance the resource integration and cooperation with other business sectors. It cooperated with the financial sector to launch the “interest senior housing” products, which assist the seniors to enjoy the services in more favorable payment methods. 
 
In September, Shenzhen Fantasia Charity Foundation continued to put in practice the principle of “enjoyable charity” to steadily develop the public welfare programs of education, art, senior housing and others.