Fantasia: strong momentum of the development of light-asset business, speed up the construction of leading operation platform for community services

(5 May 2014, Hong Kong) Fantasia Holdings Group Co., Limited (hereafter as ‘‘Fantasia’’ or the ‘‘Company’’; stock code: 1777) announced In April 2014, the light-asset business of the Company based on the largest operation platform for community services in China maintained strong growth with its revenue making up approximately 20% of the overall revenue of the Company in April.

On the strength of China’s largest community service platform the Company owns, the Company’s Colour Life Group continues to provide community dwellers with a full spectrum of community services to produce richer user value. Following the philosophy of “community service to the family”, Colour Life satisfied the basic conditions of providing standardized service and has become a platform service provider. It makes use of the Internet and the cloud App to provide on-site service and establish a mini 1-kilometer commercial zone for the purpose of providing excellent online and offline services to its customers. As of 28 February 2014, Colour Life has business presence in 76 cities, offering management or advice to 760 residential communities. The contract GFA under its management has exceeded 111 million square meters and is still growing at a fast pace.

With enormous amount of community customer resources and community services, the light-asset business of the Company, including the financial services, Colour Life Group, international property, cultural tourism group, business management and senior housing, etc., recorded a relatively rapid development in April. For example, the community petty loan business has established 17 subsidiaries as at the end of April in Guangxi, Guangdong, Hunan, Hubei and Sichuan, and achieved the loan amount of nearly RMB40 million in April. The international property business concentrated on the asset management services of high-end properties. At present, this business has entered Shenzhen, Shanghai, Beijing, Chengdu, Tianjin, Nanjing and other cities, which formed the core strategic layout in the nation covering the areas of Chengyu, Pearl River Delta, Yangtze River Delta and Bohai Rim Economic Circle, with the area under management of 14 million square meters. The cultural tourism group is actively propelling the expansion of its domestic and overseas business and will launch the projects of Hotel 373 in the USA and U Hotel in Taiwan.

In April, Fantasia recorded contract sales of approximately RMB252 million with stable development of the real estate business. The Company’s rigid-demand property projects sold well in April, Nearly 60 business apartments of Chengdu Meinian Plaza were sold and Chengdu Fantasia Town recorded a subscription of nearly 100 units. In addition, the villa units of Tianjin Flower County(天津花鄉) made a splash in the market and recorded excellent sales, the company maintained steady and healthy cash flow. There will be another peak season for launching projects in rigid demand in May. A total of 5 projects in rigid demand will have newly or additional launched units, including the additional units of Guilin Lakeside Spring Dawn, Floral Shire in Wuhan and Chengdu Fantasia Town, as well as the upper-floor units of Floral Shire in Tianjin. In addition, the units of Phase II in rigid demand of Fantasia Special Town in Suzhou will debut after generally sold out of Phase I upon its launch.

On 18 April, the “2014 Tsinghua Tongheng Aging Industry and Aging Real Estate Forum (2014清華同衡養老產業與養老地產高端論壇)” was held in Beijing with Fantasia Public Welfare Foundation as the co-organizer. The excellent works of “Design for Old Dad and Mum”, a public welfare competition were also displayed at the forum. With regarding the promotion and development of retirement industry in China as its own responsibility, the Company, based on communities, is planning to develop a trinity elderly services system by setting up home-based care service centers for the elderly, day care centers and nursing homes, supplementing with “five major products”, i.e. in-home care, healthcare, general healing treatment, nutrition meal and spiritual consolation, which enable the Company to become one of the retirement industry with government support.

During the media interview after the forum, Mr. Pan Jun, the Chairman and Chief Executive Officer of the Company said that in the future, the Company will gradually transit to light asset based business while achieving profitability via implementation of the internet notion, i.e. customer orientation, massive data and free of charge. “There is only one thing that Fantasia will be committed to —— the community services. We will definitely become the largest O2O operation platform for community services in China by leveraging our eight major value-added services and the capability of offering wide range of services”, said Mr. Pan.

At the end of April, the Fantasia Public Welfare Foundation was honored the title of “Public Welfare Model of Shenzhen” by Shenzhen Special Zone Daily.