Fantasia Kicks off a New Journey with Sales over RMB10 Billion
3 January 2014, Hong Kong- Fantasia Holdings Group Co., Limited (hereinafter referred to as “Fantasia” or the “Company”; stock code: 1777) announced its sales for December 2013. In December 2013, Fantasia achieved contract sales of approximately RMB2.078 billion and gross floor area (“GFA”) sold of approximately 195,600 square meters, representing year-on-year increases of 147.67% and 88.43% respectively. As of 31 December 2013, Fantasia recorded accumulated contract sales of approximately RMB10.174 billion and accumulated GFA sold of 1,292,700 square meters, accomplishing its annual sales target of RMB10 billion and becoming one of the companies with such level of sales in the PRC.

Annual Sales Goal of RMB10 Billion Accomplished with Year-on-Year Increase of 26.95%

In December 2013, the Company launched a large number of rigid- demand properties and commercial properties, which boosted the fast growth of the Company’s results. The rigid-demand properties continued to record prominent sales in Guilin Fantasia Town, Huizhou Special Town, Wuxi Love Forever and Chengdu Fantasia Town. Commercial properties such as Future Plaza, Meinian Plaza and Funian Plaza in Chengdu and Wuxi Hairun Complex were ready or almost ready for occupancy. The well-known brand recognition has enhanced the confidence of home buyers, boosting the sales growth. The overseas project in Singapore also contributed to the good sales performance.

Early at the beginning of the year, the Company had sets its annual sales target for 2013 of RMB10 billion. With the stable performance of sales in the first half, Fantasia stepped up efforts in marketing and product development and had ultimately surpassed the goal in the second half, attributable to its flexible marketing campaigns and outstanding quality of products. In terms of marketing strategy, through resources integration between eight internal major business segments, the Company had been able to launch rigid-demand and commercial products in due course to cater for the market needs and continuously initiate innovative various marketing activities. Leveraging the features of the era of internet, the Company enhanced its marketing activities on Taobao, Weibo and WeChat at the same time and retainedattention from the market, thereby continuously boosted up sales growth.

For the development of its products, the rigid-demand products introduced by the Company have been well received by the market. Those products maintain their best-selling momentum no matter in Tier-1 or Tier-2 cities, peak season or low season. Most of the commercial properties such as Future Plaza and Funian Plaza in Chengdu, as well as Wuxi Hailrun Complex in Wuxi were delivered during the year as it has become the markets favorite for exhibition of positive brand recognition. In addition, innovative tourism properties such as Chengdu Grande Valley Mini villa were also well received by purchasers due to high product quality with competitive prices.

The Company obtained awards from the media and capital market for its continuous provision of superb products and services to its customers during the year, and its potential for future development. It has received various awards including the Listed Company with the Best Investment Value 2013 (2013年度最具投資價值上市公司) by Boao 21st Century Real Estate Forum (博鰲•21世紀房地產論壇), the Outstanding Real Estate Developer in China 2013 (2013年中國傑出房地產商) which was organized by Economic Digest (《經濟一週》), a famous economic media in Hong Kong, as well as the Annual Award for Listed Companies 2013 (上市公司年度大獎2013) by The Hong Kong Institute of Financial Analysts and Professional Commentators Limited. Various investment banks, securities firms and research institutes such as Citi Securities, ICBC International, First Shanghai, Phillip Securities, Emperor Capital, Guoyuan Securities and South China Financial covered Fantasia and issued relevant reports. Buy ratings were usually assigned, showing that the investment potential of the Company is emerging, and becoming a favorite pick to more investors.

Eight Major Business Segments Achieve Outstanding Development

The Company started its strategic transformation development in 2013. Apart from the accomplishment of its goal of RMB10 billion in the property business, the remaining seven business segments of the Company also have great achievements. The Company gradually shifts to a financial holding group and continuously provides joyful, colorful and meaningful living space and experience to its customers.

For example, Colour Life Services Group, as a community integrated service and operation platform with the service concept of bring our service into every household in the community, has been continuously extending its scale and promoting its services in 2013. In July 2013, it held a branding news conference, stating that it had served more than 500 communities across the country with the area under management of more than 60 million square meters. In the meantime, it uses Internet platform and Colour Life (彩之雲) APP system, property butler on-the-spot services, establishing mini commercial areas with a radius of 1 kilometers extending from the community and other measures to offer the clients major online and offline service experiences. In the future, Color Life will also plan to offer financial service, healthcare service, incubating small and micro business and other endowment community integrated services in the community.

As for financial sector, Guilin Hehenian Microcredit Company Limited, a subsidiary of the Company, officially commenced business in June 2013 and expanded rapidly. By the end of 2013, it has opened 10 stores. Qianhai Fantasia Financial Services Company Limited, Shenzhen (深圳市前海花樣年金融服務有限公司) has been established. At the present, the Company is making strategic layout in the four major regions of North China, East China, South China and Southwest China, striving to use non-banking financial service business to drive the integrated development of innovative finance in China.

In the hotel business sector, the company has entered into hotel REIT cooperation alliance with CORIDEL on July, 2013 and officially takeover Ningbo Kangcheng Sunshine Hotel (寧波康城陽光酒店) in August which cleared its direction by using capital operation to push a rapid growth in the hotel business. In 2013, Fantasias hotel brand Geyuan Junshan Hotel (the Hotel) and U hotel (君山) had its grand opening. Tianjin U hotel is on its trial operation stage and is expected to be officially opened for business before the Spring Festival in 2014.

In the commercial business sector, the company has established the Yuhuatai series, which is the mid to high end regional shopping malls targeting family, young and fashionable customers and the 紅唐 series which is the city leveled shopping mall targeting high end customers. Currently, Nanjing Yuhuatai project, Longnian International Plaza, Guilin Yuhuatai Project, Chengdu Meinian Plaza 紅唐, Suzhou紅唐 project has started the investments. The property management business sector has its national strategic layout in core regions covering Chengdu-Chongqing, Pearl River Delta Region, Yangtze River Delta Region, and Ring-Bohai economic circle. The Ankangnian (安康年) platform of the senior housing business sector is created to focus on family endowment and community endowment service and have set up service network stations in communities in Shenzhen and Chengdu. In the cultural tourism business in Shanghai and Chengdu are planned and under development.

Own adequate land reserves, will achieve cross - regional development in 2014

Along with the establishment of long-term regulations and the marketization of the real estate industry by the central government, the real estate industry will extend to a more healthy and sustainable direction. According to China's real estate assessment center data released on January 1, 2014, the number of national sales developer with sales revenue over RMB10 billion grew to more than 70 and expected to reach 100 in 2014. Comforting to the market development trends, the Company will enter a leapfrog development channel in 2014 after accomplishing its full year sales target of RMB10 billion in 2013.

In 2013, the Company had successfully issued 7-year senior notes of US$250 million with an interest rate of 10.75% and 3-year senior notes of RMB1 billion with an interest rate of 7.875%, which ensured the funding of its existing and additional property development projects.

In respect of land acquisitions, Fantasia had successively, by means of bidding and acquisitions, secured several land parcels in Suzhou, Chengdu, Ningbo, Shanghai and Tianjin, and entered into first-tier and second-tier cities such as Ningbo, Wuhan and Shanghai in 2013. As of the end of 2013, Fantasia had already marked its footprint in 16 first-tier and second-tier cities in China and will extend its presence to more first-tier and second-tier cities with growth potentials when the opportunity arises.

As of the end of 2013, the Company had sufficient land bank in first-tier and second-tier cities and possessed over 10 projects with GFA of approximately 2.5 million square meters in Shenzhen. In addition, its inventory and available-for-sales launched in 2014 also expected to have a substantial growth compared with 2013. By grasping market opportunities, Fantasia will seek for a substantial growth in its property sales performance in 2014 through flexible online and offline marketing campaigns.  

In the meantime, regarding to other 7 major business segments of the Company, the Company will, according to its strategic planning and positioning as a financial holding group, continue its asset-light strategy for these business segments, and establish a balanced organic ecosystem based on two major platforms which are finance and service provider.