Fantasia Applied to issue Taiwan Depository Receipts

The first mainland property developer to be listed in Taiwan Stock Exchange


November 30, 2010, Hong Kong - Fantasia Holdings Group Co., Limited ("Fantasia" or the "Company"; Stock code 1777) announced today that the Company has made an application to the Taiwan Stock Exchange and the Taiwan Central Bank to offer and list Taiwan Depositary Receipts (TDRs) on the Taiwan Stock Exchange.  This announcement follows its initial disclosure on November 17 regarding the Company’s intention to issue TDRs.  No more than 240,000,000 new shares will be issued, representing approximately 4.69% of the enlarged issued share capital of the Company, which is within the General Mandate.  The issue price and the amount of funds to be raised will be announced in due course, as appropriate.


The Company is planning to issue 120,000,000 TDRs, each representing two Shares.  It is currently proposed that the TDRs will be offered to selected institutional and retail investors in Taiwan by way of public offer.  The capital market in Taiwan is highly liquid with relatively low financing costs, making it the optimum fundraising destination for the Company at current stage.


All proceeds raised from an eventual TDR issue will remain in Taiwan and the Company plans to use NT$1.2 billion from the funds to be raised for a joint venture with Astro Corporation, a Taiwan listed company.  With this Taiwan partner, Fantasia plans to jointly develop a vacation resort in Jinmen, Taiwan, an island neighboring Xiamen.  Jinmen is expected to grant visas on arrival to PRC citizens, which will be instrumental in accelerating commercial transactions and social activities across the Straits.  This large scale project will offer Fantasia significant first mover advantage which will be difficult to replicate due to limited land supply.


Mr. PAN Jun, the Chairman and Chief Executive Officer of the Company commented: “There is a marked growth in economic integration across the Taiwan Straits and this development is very exciting.  The introduction of the Economic Cooperation Framework Agreement (ECFA) will prompt further commercial interaction between the mainland and Taiwan, which we believe will present substantial business opportunities for us.”  Mr. Pan also commented: “We are actively looking at new opportunities and seeking to expand our business and operations to the next level, effectively utilizing alternative financing channels.”


Taiwan has a well developed service industry with a wealth of valuable experience and talent, which Fantasia hopes to learn from and leverage through collaboration with local partners.  As an established property developer in mainland China, Fantasia continually strengthens its position in home market, at the same time explores strategic commercial opportunities in neighboring markets that will enhance the Company’s competitive advantage in the long term. Thus, the Company will shape the future strategic focus and deploy resources from an international perspective.


The underwriter for the TDR Issue is Jihsun Securities Co., Ltd. of Taiwan, which was ranked No. 1 underwriter of “2009 IPO in Taiwan Stock Exchange”.