Fantasia Holdings Group Co., Limited 2020 Interim Results Presentation

August 2020

3 Disclaimer

This document is prepared by Fantasia Holdings Group Co., Ltd. (the "Company") and is only used for presentation by the Compa ny and its subsidiaries (collectively the "Group").

No representations or warranties regarding the impartiality, accuracy, completeness or correctness of the information or opin ions contained in this document are made, whether expressly or impliedly, and no person shall rely on the information or opinions contained in this document. The Company, any member of the Group and their affiliates or any of their directors, managers, employees, advisers or representatives shall not be liable for any loss arising out of the use of the information contained in this document or any other matter relating to this docume nt (whether negligence or misrepresentation under tort law, contract law or any other relevant law.

This publication is not a proposal to sell or solicit for the purchase of any securities in the United States or in any other jurisdiction. It is illegal to sell or solicit upon any such proposal without registration or approval under the Securities Law of any such jurisdiction. No securit ies may be sold or issued in the United States before going through the registration procedures or obtaining exemptions for registration. Any public sale of any securities in the United States shall be in the form of publishing the prospectus which shall contain details on the company raising related sales as well as details on its management and financial statements. The Company will not issue securities publicly in the United States.

This document contains the statement on the Group’s and the Company's current views and forecast for the future on each applicable date. This forward-looking statement is based on assumptions about the operation of the Company and the Group and factors beyond the control of the Group or the Company, with significant risks and uncertainties. In view of this, there may be significant differences between the actu al results and the forward- looking Statement. Therefore, you should not rely on this forward-looking statement. The Group and the Company are not obligated to update the forward-looking statement based on future events or circumstances.

4 I. Results Highlights Contents II. Results Review 1) Operating Results: Outstanding Performance

2) Financial Strategy: Sound Policy

3) Investment Strategy: Targeted Investment

4) Operation Strategy: High Efficiency

III. Pandemic Relief Efforts

IV. Human Resources Strategy

V. Land Bank and Urban Renewal Projects

VI. Community Service Strategy

VII. Outlook

Appendix

5 Part 1

Results Highlights 2020 Interim Results Highlights

Contracted Sales Total Revenue Community Service and Other Income

RMB17.51Bn RMB9.24Bn RMB2.61Bn up 33.0% YoY up 7.7% YoY Provides stable cash flow

Gross Margin Core Net Profit (1) Net Gearing Ratio

33.6% RMB558 MM 78.3% Maintains a good level up 97.6% YoY Sound financial position

Newly Invested Projects (2) Planned Land Bank Urban Renewal Projects

MM m2 MM m2 3.00 37.31 19.54 MM m2 Replenishing land bank to ensure Abundant land bank to Rooted in the Greater Bay Area enough saleable resources empower future growth

Notes: 1. Core net profit refers to net profit excluding net exchange losses 2. For the period from beginning of 2020 to 8/18/2020 7 Part 2

Results Review 1

Operating Results: Outstanding Performanc e Sales and Industry Ranking in Recent Years

Breakdown of Contracted Sales in 2020 1H by Region (1)

2020 1H contracted sales of RMB 17.51Bn Central China Bohai Rim up 33.0% YoY Metropolitan Area Metropolitan Area

RMB 1.0 Bn RMB2.42 Bn 2020 1H contracted area of 1.35MM m2 up 21.1% YoY 5.7% of total 13.8% of total

Sales and Industry Ranking in Recent Years (2)

362.1

301.7

201.6 175.1

131.7

89 81 75 81 69 Chengdu-Chongqing -Hong Yangtze River Delta Metropolitan Area Kong-Macao Metropolitan Area Greater Bay Area

RMB6.31 Bn RMB 1.79 Bn RMB 5.74 Bn 2017 2018 2019 20191H 20201H Sales (RMB‘00 mm) Industry Ranking 36.0% of total 10.2% of total 32.8% of total

Notes: 1. Sales for 2020 1H include RMB237MM of sales from Singapore 2. Industry ranking data is sourced from CRIC China 10 Steady Increase in Revenue and Earnings

Total Revenue Gross Margin RMB MM %

19,082

YOY growth: 7.7% 13,986 33.6% 29.6% 29.9% 28.0% 29.6% 9,783 8,577 9,241

2017 2018 2019 1H2019 1H2020 2017 2018 2019 1H2019 1H2020

Net Profit Net Profit Excluding Net Exchange Losses RMB MM RMB MM

1,502 1,409 1,909 1,168 1,728 YOY growth: 13.4%

811 558 244 277 282

2017 2018 2019 1H2019 1H2020 2017 2018 2019 1H2019 1H2020

11 Simultaneous Advancement of “Property Development + Community Service”

Property Development Revenue Community Service and Other Income (1) • 71.8% of total revenue • 28.2% of total revenue • Becomes the "power source" of future • Becomes the "stabilizer" of cash inflow income growth

RMB MM

13,226

8,555 6,598 6,631 5,431 5,855 5,731

3,184 2,846 2,611

2017 2018 2019 1H2019 1H2020

Property Development Community Service and Other Income

Total Revenue Breakdown

Community Community Community Community Property Community Property Service and Property Service and Property service and Property Service and Development Service and Development Other Income Development other income Development other income Development other income 71.8% Other Income 67.5% 61.2% 30.7% 69.3% 33.2% 66.8% 32.5% 38.8% 28.2%

2017 2018 2019 1H 2019 1H 2020

Notes: 1. Community service and other income includes revenue from property investment, property agency, property operation and other business except for property development 12 2

Financial Strategy : Sound Policy Solid Financials with Positive Rating Actions

RMB MM 2018 2019 1H 2019 1H 2020

Bank balances and cash 28,570 23,044 25,064 25,191 Total debt 436,24 38,173 40,547 41,151 Net assets 194,55 20,592 19,485 20,377

Net debt / net assets 77.4% 73.5% 79.5% 78.3%

Net Debt / Net Assets %

79.5% 78.3% 76.0% 77.4% 73.5%

2017 2018 2019 1H2019 1H2020

Rating of B2 Rating of B Rating of B+ Rating outlook upgraded Rating outlook upgraded Rating outlook upgraded to “Stable" to “Stable" to “Stable"

14 Decrease in Financing Costs

 Through effective bond management, the yield rate at the secondary market has dropped to a low level, significantly Financing costs outperforming the market of offshore  The Group’s financing costs decreased from 15% at the end of 2018 to 7.95% in August 2020 bonds decreased  The Group will continue to implement active bond management in the second half of 2020, so as to optimize the maturity significantly profile of its debts

Issuance of Onshore and Offshore Bonds by Fantasia Since 2019 Offshore Bond Yield Curve of Fantasia at the Secondary Market

Time of Amount Tenor Coupon 30 14 issuance Asian high-yield bond Jan 2020 US$450 million 3 years 10.875% index narrowed by 75 bps from the beginning of 27 2019 12 May 2020 US$300 million 3 years 11.875% Increased by 184 bps July 2020 US$350 million 3 years 9.250% 24 from the beginning of 2020 10

August 2020 US$200 million 2 years 7.950% High of YieldAverage 21 Debt Structure by Maturity 8

18 0.7% 0.3% 0.7%

4.4% 6

- yield Bonds (%) Bonds yield 15 31.8% 28.7% 44.0% 38.9% 4 12 Purchase Purchase Yield ofFantasia Bonds (%) Fantasia’s bond yield 34.5% narrowed by over 1,000 bps 37.8% 23.6% from beginning of 2019 2 30.2% 9 Narrowed by 100 bps from beginning of 2020 33.1% 30.1% 36.1% 6 0 25.2% 2019/1/1 2019/3/20 2019/6/6 2019/8/23 2019/11/9 2020/1/26 2020/4/13 2020/6/30

2017 2018 2019 1H2020 11.75% coupon due 2022 7.95% coupon due 2022 12.25% coupon due 2022 10.875% coupon due 2023 Less than 1 year 1-2 years 2-5 years Over 5 years 11.875% coupon due 2023 Asian High-yield Bond Index (RHS)

15 Optimizing Debt Structure

Debt Structure by Currency Debt Structure by Type

% %

0.4% 0.3%

14.0% 15.2% 12.2% 20.5%

38.0% 38.1% 16.6% 19.7% 47.3% 21.7% 54.9% 24.0% 13.9%

22.5% 15.2% 13.7%

62.0% 61.9% 57.3% 52.3% 47.9% 44.8% 43.8% 41.8%

2017 2018 2019 1H2020 2017 2018 2019 1H2020

(1) RMB USD HKD Offshore bonds Onshore bonds Bank loans Others

Notes: 1. Others includes Trust, PE, Finance Lease, ABS and other financing tools 16 3

Investment Strategy : T argeted Inv estment Strategy of Emphasizing Investment: Emphasizing Quality

Emphasizing quality

Focusing on the front end Controlling the middle end Following up the back end

Standardize the investment decision- Strengthen urban research capabilities Enhance post-investment management making process • Cities already entered: Unlock potential value • Establish a standard process for investment • Strengthen large-scale operation functions of geographical plates, analyze customer decision-making, standardizing relevant while coordinating project management demand while forecasting city cycles frameworks, responsibilities and mechanisms throughout all stages in the project cycle for investment decision-making • Exercise risk control of the entire investment • Cities newly entered: The first project to be process together with the finance, tax and developed in cooperation with a local • Fully mobilize professional functions to legal investment teams established real estate enterprise maximize investment results

Improve accuracy of research analysis Clarify investment plans Dynamic tracking management

• Build a valuation model of geographical plates • Clarify quantitative financial standards for • Conduct dynamic tracking and accounting and plots to improve the accuracy of project investment, calculate investment objectives according to project schedule and cost research and analysis from multiple angles, with clear region-level analysis that is continuously updated

Regional Land Project Approval Investment Promotion and Summary and Research on the Selection and Meeting of the Committee of the Implementation Transfer of External Market Project Approval Group Group of Projects Projects

External Information Region Screening Investment No Development and Filing of Land Selection Project Research on Meeting Information Large-scale Phase I the Land Market Regional Project Approval Operation Decision-making No No No Regional Management Survey and Due Diligence

Compilation of Project Review Project Review Reports and Discussion Meeting City Estimates Stora Compl- Yes Yes Cash -ge Build etion On-Line Payment of Financ Inven Approval of Sup- colle- Phase II Projects Deposit -ing -ing Sales -tory ction Provision of ply Authorized Price

Yes Participation in Project Auction Project Plate Summary Review of Transfer Transaction Agreement Finance, Taxation and Law

Phase III Project Initiation Plot Meeting Regional/Urban Matters of the Investment and Development Department of the Group Corporate Matters and he Functional Departments in the Real Estate Group in China Matters of the Investment Decision- Matters Concerning the Merger and Acquisition Process making Committee of the Group 18 Seizing Market Opportunities to Increase Land Bank

• Since 2020, sticking to the strategy that emphasizes steady and moderate progress, the Group seized market opportunities arising from the overall economic and industry situation in the first half of the year to replenish its land bank • As of 18 August 2020, the Group has added 18 new plots of land with a total GFA of approximately 3.00 million sq.m., and the GFA attributable to the Group was 1.63 million sq.m.. The total land price was RMB19.3 billion and the land price attributable to the Group was RMB10.3 billion • The value of newly-added saleable inventory was RMB43.8 billion and the saleable inventory value attributable to the Group was approximately RMB23.6 billion, laying a solid foundation for future sales growth • According to the newly-added inventory value ranking for the first seven months of 2020 released by CRIC China, Fantasia was ranked 39th

Overview of newly-added land bank since 2020 (from the beginning of 2020 to 18 August 2020)

Land price Expected inventory GFA attributable attributable to Expected saleable value attributable to Number of Total GFA to the Group Total land price the Group inventory value the Group Area City projects (sq.m.) (sq.m.) (RMB billion) (RMB billion) (RMB billion) (RMB billion)

Chengdu- Chongqing Chengdu, Metropolitan Chongqing 8 1,313,661 872,426 4.4 3.0 12.9 9.0 Area

Yangtze River Nanjing, Delta Hangzhou, Metropolitan Shaoxing, 4 801,053 417,780 7.8 4.7 15.6 8.8 Area Nantong

Bohai Rim Metropolitan Tianjin, Beijing 3 316,170 83,860 3.9 1.1 7.6 2.3 Area

Guangdong- Hong Kong-Macao Foshan 2 420,493 182,353 3.1 1.4 6.9 3.1 Greater Bay Area

Central China Metropolitan Zhengzhou 1 150,594 76,803 1.4 0.7 0.8 0.4 Area

Total 18 3,001,971 1,633,222 19.3 10.3 43.8 23.6

19 Taking Root in Strategic Cities with Targeted Land Bank

• Continue to expand strategic presence in the five major metropolitan areas by exploring key targeted areas • Extend its business presence to new strategic cities including Foshan, Shaoxing, Zhengzhou, Nantong and Chongqing • Acquire land plots mainly through public auctions and also certain M&A projects • Focus on small- to mid-scale projects to accelerate project turnover

Bohai Rim “5+N” urban investment strategy

Based on the national urban development strategy and potential, the Group adopted the “5+N” investment strategy to extend its business 5 Yangtze presence to targeted cities Central Riv er China • 5 (core strategic areas): five major urban hubs including Delta Guangdong-Hong Kong-Macao Greater Bay Area + Chengdu- Chengdu- chongqing Chongqing Economic Zone + Yangtze River Delta Metropolitan Area + Central China Metropolitan Area + Bohai Rim Metropolitan Area Greater Bay Area • N (targeted cities): 20+ cities in which the Group continues to 3 6 expand or intends to establish business presence Analysis on newly acquired land since 2020 Way of acquisition breakdown (by number of Project size breakdown (by number of Geographic breakdown (by total GFA) projects) projects) Central China M&A Below 200k sq.m. Bohai Rim Metropolitan Area 17% Over 300k sq.m. 72% Metropolitan 5% 6% Area 11% Chengdu- Guangdong- Chongqing Hong Kong- Metropolitan Macao Greater Area Bay Area 43% 14% Public auction 83% 200k-300k sq.m. Yangtze River Delta 22% Metropolitan Area 27% 20 Enhancing Strategic Cooperation to Achieve Complementary Advantages

• Enhance cooperation with outstanding peer companies to form strong alliance and achieve complementary advantages:  Cooperate with state-owned enterprises: learn from them their sophisticated operation and management experiences and make good use of financing with lower costs  Cooperate with real estate brands in core areas: expand business presence through strong alliance, so as to achieve the effect of 1+1> 2  Cooperate with real estate enterprises with high project turnover: help to accelerate project turnover and improve capital turnover

Cooperated project Business partner Cooperated project Business partner

Ningbo Fenglinfu Zhongnan, Song Du Chengdu Chunyu Riverside Longfor

Ningbo Chaoyue Nantang Zhong Liang, Jianhang Chengdu Xifuhongyun CFLD, COFCO Property

Zhuzong, Beijing Capital Chengdu Yinweilai Dowell Beijing Guoxiangfu Development, CIFI

Chengdu Endless Blue Desun Chengdu Pidu 30mu Project Dowell

Tianjin Lake West Project CCCC Greentown Shaoxing Project CCCC Real Estate

Foshan Guicheng Project Kaisa Nantong Rugao Project Zhong Liang, Future Land

21 3

Operation Strategy : High Efficiency Implementing Goal-oriented Integrated Operation Mechanism

• Integrated operation management to improve ”cashflow + profit” Focus on integrated • Digital project password consisting of ”process + meeting + operation results” management • Effective collaboration and decision-making mechanism to ensure comprehensive information exchange across the Group and various areas

• 2.5-level management mode, streamlining head office Establish clearly- structure + strengthening regional operation + improving business department/project efficiency, to achieve Operation defined clearly-defined terms of reference and accelerate mechanism organisation approval process structure • Implement standardised operation: standardised products/construction, enhance standardised project duration

• Optimize operation assessment approach and incentives system by delivering rewards and penalties Implement reward and • Offer special incentives for key projects to promote penalty system breakthroughs

23 Expedite Project Development to Accelerate Project Turnover

• During the period, operation efficiency was significantly improved by enhancing schedule control of projects, with the cycle from land acquisition to commencement of construction for new projects shortened to 2.7 months and the cycle from land acquisition to launch of project shortened to 8.2 months during the year • According to the Company’s strategy of accelerated project turnover, most of the projects acquired in the fourth quarter of 2019 and the first half of 2020 will be launched in 2020 and generate revenue contribution to the Group

Acceleration of the process from land acquisition to Acceleration of the process from land acquisition to launch of commencement of construction project

6.5 10.2

4.0 8.2 7.5 7.4 2.7 2.6

2018A 2019A 2020H1 2020E 2018A 2019A 2020H1 2020E

Ningbo Chaoyue Nantang Ningbo Fenglinfu Nanjing Huahaoyuan Qingdao Endless Blue Land acquisition: October 2019 Land acquisition: October 2019 Land acquisition: January 2020 Land acquisition: December 2019 Project launch: June 2020 Project launch: June 2020 Project launch: July 2020 Expected project launch: August 2020

Chengdu Yinweilai Chengdu Endless Blue Chengdu Chunyu Riverside Hangzhou Duiyuetian Land acquisition: December 2019 Land acquisition: January 2020 Land acquisition: March 2020 Land acquisition: January 2020 Expected project launch: August 2020 Expected project launch: Expected project launch: October 2020 Expected project launch: October 2020 September 2020 24 Enhance Operation Efficiency

• Through measures such as enhanced process and efficient operation, the Group achieved quality improvement, efficiency enhancement and quality growth, leading to a reduction in ratio of sales and management expenses to revenue and contracted sales • In order to enhance operation efficiency and achieve breakthroughs in key and difficult projects, the Group also strengthened the process- based incentives and annual incentive system, with an aim to inspire more employees to make breakthroughs in terms of sales, products, engineering, costs and other aspects

Sales & management expenses / revenue Focusing on key points with process-based incentives % Efficiency Breakthrough in key 16.2% enhancement and difficult projects 13.0% Speedy sales Speedy supply+ 9.7% 9.3% 9.2% launch popular sale Aw ard for 11.9% tackling 9.9% difficulties 7.2% Perfect 7.5% 7.5% Strong reputation delivery 4.3% 3.1% 2.5% 1.8% 1.7% Aw ard for major 2017 2018 2019 1H2019 1H2020 Sound breakthrough Focus on cashflow operation Sales expense Management expense

Sales & management expenses / contracted sales Result-oriented annual incentives % 7.9% Business expansion Professional and innovation performance 6.1% 6.1%

5.1% 4.9% Market leader aw ard Product aw ard 5.8% (sales ranking) 4.6% 4.9% 3.8% 4.0% Professional Project achievement award engineering aw ard 2.1% (function) 1.5% 1.3% 1.2% 0.9%

2017 2018 2019 1H2019 1H2020 Annual outstanding Procurement and project aw ard Sales expense Management expense cost award 25 Improving Marketing Capability

Implement institutionalised and systematic management model: 1 Facilitate significant improvement in the institution and system through prompt adjustment to the structure of the marketing organisation

Establish standardised workflow and toolkit: 2 Culture Significantly improve work performance and management efficiency

Expertise Build a work system empowered with platform support + frontline assistance: 3 Promote rapid improvement on both the levels of the entire marketing Organization organisation and individual staff

Promote integration of sales marketing and market Information expansion: 4 Enhance customer acquisition and direct marketing efforts to strengthen direct sales and reduce marketing costs

Develop online marketing and direct marketing system: 5 The online marketing platform of the Company – Fantasia Go is coming into shape

26 Product Quality: Clear Improvement in Overall Performance and Efficiency

• In the first half of 2020, the product center underwent management enhancement from the perspectives of the “team”, “structure”, “system” and “product” • Positive results have been achieved in these four perspectives, which in turn drove improvement in company performance

Team System Framework Product Building Building Building Optimisation n • Adjustments to terms of • Meeting system • Schedule control system • Product objectives review reference of different • Construction change control ‒ Governance structure ‒ Land analysis organisationsand personnel system consisting of the board, • Inspection for acceptance ‒ Customer analysis • Vertical control over design supervisory committee and system for demonstration and customer research shareholders’ meeting ‒ Product analysis area ‒ Establish customer research ‒ Function department • Customer research and • Establishment of product function meeting analysis line framework ‒ Conduct research on ‒ Profession category ‒ T+8 land subdivision ‒ Product lines (“Joyful, customer characteristics meeting framework Tasteful, Meaningful”) ‒ 10 customer groups such as and needs ‒ Product series by purchase • Supplier system customers settling down or ‒ Create products catering to power, family lifecycle • Standardised system seeking for premium customer needs ‒ Standardised construction residence • Implementation of period • Design approval system benchmark projects ‒ Quota index ‒ 106 projects in Chengdu ‒ Construction practice ‒ Shaoxing Guandu Project • Collection system

27 Customer Research: Accurate Product Positioning Driven by Customer Segmentation

• To achieve the goal of “different product strategy for various customer segmentations”, urban customers are categorized into 8+2 groups by “purchase power, lifecycle and intended residence plan” • Customer segmentation can be broken down into numerous small categories based on different customer agenda. Sticking to the goal-driven strategy, customer segmentation by Fantasia aims to provide guidance for its product strategy • Based on the description of “purchase power, lifecycle and intended residence plan” of various customers, this customer segmentation demonstrates the potential spatial relationship among different residence scenarios of various customer groups

 Age curve  Income curve

50 50 50 45 40 35 35 30 30 25

Settling dow n Separate Residence for Generations Premium Residence Premium Premium Residence Residence in cities residence raising under one residence for with urban residence indicating offering high- from parents children roof big families educational residence w ith better social status end lifestyle facilities environment

Customers to Local young Mainly families of Families of three Families of three Customers Families with Active elderly Ultra-wealthy Ultra-wealthy settle down in people who move three members generations living generations living pursue quality strong purchase who value the group or the group who are cities and seek out of their (some consist of under one roof under one roof educational power that place living nouveau riche self-confident for a residence in parents’ houses four members) that place with strong facilities (at least emphasis on the environment and who are eager to and hate to be the first or after getting that put emphasis on purchase power, primary school or size of the house surrounding eco- show off their labelled by their second-tier cities, married or new emphasis on product function which have above) who can and higher environment at financial strength; wealth, have mainly including jobs residence needs and number of higher be converted demand for the expense of value the strong personal graduates from for raising rooms, have no requirements for from other product quality, longer residence as an value proposition key universities children, with stringent product function, customer groups mainly consisting commuting symbol of social and pursue for a or migrants from priority on requirements on number of only if there are of a couple or distance status more than free and suburban areas educational size and quality rooms, size and quality three or four a comfortable distinctive who intend to facilities (public due to limited quality educational members, not home lifestyle settle down in school will do) purchase power facilities exceeding two cities and give priority generations to the needs of the elderly

28 Launch the Product Lines of Joyful-Tasteful-Meaningful Series

As a contemporary oriental brand, Fantasia has unique insights into human nature and is keen to seize the Tasteful Shaoxing Guandu Project development trend. Fantasia is committed to becoming a leader in providing joyful, tasteful and meaningful living space and experience, and aims to deliver unique and inspiring living spaces and experiences to value-oriented customers In the first half of 2020, the product center has finalised a number of quality programs with distinctive product characteristics of Fantasia based on the product concept of “joyful, tasteful and meaningful”

Valuable, Recreational, Curious, Exuberant, Fearless Broad-minded, Insightful, Novel Leisurely

Shenzhen Haoshiguang Project Joyful

29 Brand Strategy: Emphasis on Value Concept

• Brand strategy of Fantasia: emphasis on value concept - based on the new brand center structure of Fantasia in 2020, establish value concept before creation of product portfolio • Brand team of Fantasia for 2020: the founder also acts as the general manager of the brand center, and the team mainly consists of post-90s young elites. Zhi Art Museum has been merged into the brand center, and an art team has been established to improve product competitiveness

General manager of the brand center of Fantasia China Group (Ms. Zeng Jie, Baby, founder of Fantasia and chairman of the Strategic Planning Committee)

Business assistant Art consultant to the founder

Brand Public w elfare Brand strategy Zhi Art management Art team foundation Museum group group

Brand center structure of Fantasia China Group in 2020 Case study: Fantasia · Wunan396 Shanghai Establish value concept In creating the first product of the “Elegant” series of Fantasia, led by the brand team, both the marketing Create product portfolio and promotion teams participated in project research and seminar discussion to explore and Products of Fantasia Group come up with the product theme of “Good old days”, and subsequently the product team carried out product design based on the core value concept of the project.

30 Strengthen Brand Proposition and Enhance Brand Influence

• During the period, Fantasia continued to promote its brand concept of “joyful, tasteful and meaningful” through diverse ways to strengthen its brand proposition, improve its market reputation and enhance its influence in the industry • Fantasia is committed to public welfare and charity activities, and devotes great efforts to improve its capability in fulfilling its corporate social responsibilities, with an aim to strengthen the market, customers and employees’ trust in the Fantasia brand

Create an Internet brand promotion matrix through the combination of external media + in-house media team, in an effort to build its joyful, tasteful and meaningful market image with “hard + soft powers”, demonstrating the unique brand proposition and aesthetic appreciation under the contemporary oriental brand of Fantasia, which received great response from the market and the customers

Fantasia was ranked 31st in the Brand Recognition Ranking of Top 100 Real Estate Companies in China in the First Half of 2020 released by CRIC Research Center

On the offline brand promotion front, in addition to marketing campaigns and offline community activities, Fantasia Public Welfare Foundation and Fantasia · Zhi Art Museum overcame the challenges of the Covid-19 pandemic and launched relevant education, elderly care and art public welfare projects in innovative ways, Fantasia was ranked Top 35 in the demonstrating its strong commitment to Top 100 Real Estate Wechat Index fulfilling its corporate social responsibilities (REWI) for single month in the first half of 2020 released by ifeng.com and Fengcaixun Fantasia was ranked Top 10 in April 2020

31 PART 3

Pandemic Relief Efforts Fight Against COVID-19: an All-out Battle

• In active response to the central government’s call for resumption of work and production, and while ensuring the safety of our staff and customers, the property development segment of Fantasia bucked the trend to achieve sales growth and accelerate project turnover through prompt response and flexible measures

Operation: promote resumption of Sales: buck the trend to achieve sales work and production to growth by integrating online accelerate project turnover and offline sale channels

• Fantasia promptly established the anti-pandemic steering group w hich is responsible • Launched the online marketing center in January to capitalize on the trend of online for communication on major pandemic prevention issues on a 24/7 basis sales

• Meanw hile, Fantasia stepped up efforts for pandemic monitoring and disinfection • Launched the “Everyone can be a Homeow ner” program to tap on potential treatment at the office premises, so as to ensure the health and safety of the frontline customers via social media in February staff. No case of mass infection w as reported at the office premises of Fantasia during the outbreak • The sales offices of Fantasia in the four major areas (i.e. the Guangdong-Hong Kong- Macao Greater Bay Area, Yangtze River Delta Metropolitan Area, Chengdu- • Fantasia w orked closely w ith the construction units, implemented pandemic Chongqing Metropolitan Area and Bohai Rim Metropolitan Area) have resumed full prevention measures as required by the government and took measures to recruit operation by the end of March construction w orkforce. By adopting scientific and effective measures, the Group strived to achieve resumption of operation at the construction sites as early as • The sales offices in Central China Metropolitan Area w ere reopened in mid April and launched a new project named Huahaoyuan in Wuhan in June, w hich received w arm possible w hile complying w ith the management requirements of the government w elcome by the citizens in Wuhan • The Group managed to resume construction for 90% of projects in progress by the end of March and for all projects by the end of April, so as to ensure no delay in the • Launched its online marketing account “Fantasia Go” in June, offering property purchasers easy access to the “online house selection”, “customer reference for development progress of the key projects commission” and other functions via Wechat accounts, w hich helped to facilitate efficient interaction w ith property purchasers

33 Our Fight against the Pandemic: Outstanding Performance as a Demonstration of Notable Advantages as Industry Leader

• Colour Life and Home E&E, subsidiaries of Fantasia, played an active role in the fight against the pandemic at the community level. Their efforts have achieved remarkable results and won high recognition from the owners and the government, laying a solid foundation for Fantasia and Colour Life for future expansion of their community business. We would like to express our heart-felt gratitude towards the owners, our business partners and staff for their great support to our fight against the pandemic

Improvement in the High recognition from Progressive measure Remarkable results service relationship all parties

• In the “Satisfaction Survey for • Making unified arrangement and • Over 75% of the projects managed Pandemic Prevention and Control” coordinated actions • No mass infection w as reported in by the Group received co-organised by Leju Finance (乐居 • Issuing alerts and ensuring any community managed by the commendation from the Group 财经) and China Property standardized operation government or compliments and Management Research Institute • Allocating funds to ensure supply for regards from the ow ners • The average infection rate of the (CPMRI) (中物研协), on w hich the the frontline projects managed by Colour Life ow ners directly voted, • The Group has received praises for • Focusing on details to improve (Wuhan) w as far low er than the Wanxiangmei topped the popularity its excellent w ork for 127 times service quality average infection rate of Wuhan rankings and Colour Life w as from district-level governments, and • Granting incentives and rew ards in a City ranked 3rd in comprehensive 603 times from sub-district offices timely manner grading and communities respectively

34 Staying Committed to Providing Quality Community Services – Playing a Frontline Role in Pandemic Prevention and Control

On 10 March, President Xi Jinping paid a visit to Donghu New Town community and had a cordial exchange with the community workers, base-level policemen, doctors at the health service station, cadres in grass-root units and volunteers to learn about community-based efforts in the epidemic prevention and control, community services and measures taken to ensure the supply of daily essentials. Donghu New Town community is one of the 56 communities managed by Fantasia Colour Life in Wuhan with nearly 13,000 residents. No confirmed cases were reported continuously after the intensive inspection carried out. Donghu New Town community was awarded the certificate of “Epidemic-free Community” on 8 March. President Xi Jinping stated that as the front line of prevention and control of epidemic spared, the community shoulders heavy tasks. The comrades involved in this job work so hard and have made important contributions to curbing the spread of the epidemic and ensuring the lives safety of the people. Wewill keep in mind the words of President Xi, take root in the community with passion and affection, promote the continuous combat style, pay close attention to the epidemic prevention and control work, improve the front line work of defense in epidemic prevention, serve the people, and completely win the fight in epidemic prevention and control.

35 PART 4

Human Resources Strategy Human Resources Strategy

• 2019: by means of turnover, system changes, recruitment selection and training, we focused on training employees via strengthening the cultural essence and enhancing the organisational value • 2020: we built up a strong workforce with accurate talent profile and continuous training. Upholding the philosophy of “a good team is essential to promote business development”, we developed our human resources strategy based on established business targets and implemented result- oriented mechanism to drive business development

Talent development principle Organisation Build up talent reserves in Human resources management structure development advance principle Set up a balanced team Organisation growth + Attract industry talent • Organisation department: strategy continuity, classification management across the country organisation optimisation, cadre management with standardised function Provide training with • Promotion department: corporate value export, allocation common language promotion and implementation • Human resources department: mechanism 01 02 formulation and criteria establishment

Human resources development strategy

• Organisation development: adopt standardised structure to promote organisation growth • Talent development: seek suitable talents across the country to build up talent reserves in 04 03 advance • Performance appraisal: focus on operation Remuneration Performance performance, process management, inventory incentive principle appraisal principle efficiency and red-line compliance Strong external Focus on operation • Remuneration incentives: nurture strong competitiveness performance, process competitive strength by offering bonus for Effective incentives for management, inventory frontline staff and incentives for enhanced value frontline staff efficiency and red-line Share the enhanced value compliance Establish clearly-defined accountability system

37 Team Building and Integration

• Since 2020, the Company continued to review and develop the talent profile of Fantasia and introduce leading industry talents. Meanwhile, the Company continued to recruit new key talents to attend trainings with clear criteria and common language, so as to accelerate integration of the new talents into our team and prepare them for their work.

Newly introduced and appointed talents since 2019 (those in red are new management personnel introduced in 2020)

Talent Position Background

Ke, Kasheng Executive Director of Fantasia (1777.HK) CBRC, China Huarong Executive Director of Fantasia (1777.HK) Zhang, Huiming CITIC Real Estate, Agile Executive Director and COO of Fantasia Real Estate Group Group Executive Director and CFO of Fantasia (1777.HK) China State Construction, Chen, Xinyu Executive Director of Color Life (1778.HK) Country Garden Zhao, Shanwei Vice CFO of Fantasia Group (China) Co., Ltd. Country Garden Zhu, Bin Assistant President and GM of the Audit Monitoring Dept. of Fantasia Group (China) Co., Ltd. Evergrande, Kaisa Mao, Xiaobing Chief Product Consultant of Fantasia Real Estate Group AECOM Mao, Qin Vice CPO of Fantasia Real Estate Group Zhongnan Sun, Guojun Vice President of Fantasia Real Estate Group and Vice President of Beijing Area Company Ping An, Wanda

Li, Wan Vice President and GM of Sales Management Dept. of Fantasia Real Estate Group Country Garden, COLI

Real Estate Group Vice President of Fantasia Real Estate Group and President of and Wuhan Area Zhao, Yinghua Country Garden, Logan Company Zhu, Guogang Vice President of Fantasia Real Estate Group and President of Chengdu Area Company Wanda, Fantasia Guo, Feng Vice President of Fantasia Real Estate Group and President of Shanghai Area Company CIFI Wang, Xingxiang Executive Vice President of Wuhan Area Company of Fantasia Real Estate Group Vanke, Gemdale Huo, Yong Executive Vice President of Beijing Area Company of Fantasia Real Estate Group COLI, Excellence Group Huang, Wei Executive Director and CEO of Color Life (1778.HK) COLI Property Management, Kaiyuan International Colour Life Yu, He CTO of Color Life Group (1778.HK) Huawei, Ping An, S.F. Holdings

38 Implement Profit-sharing System to Inspire Employees to Create Greater Profit

• In order to stimulate the work enthusiasm of frontline staff and management team, the Group launched two incentives measures in the first half of the year, namely the employee co-investment system and excessive profit incentive system, which encourage the employees to co- invest and share profit and risks with the Company, offering them a chance to participate in profitable return while creatingexcessive profit for the Company. These two measures will be applied to new projects to be acquired in the second half of the year

“Investment sharing” scheme: employee co-investment “Profit sharing” scheme: excessive profit incentive system system

• While retaining long-term service of the management, • Encourage frontline staff to co-invest and share profit and encourage them to create profits beyond set goals and risks with the Company, so as to unleash their passion for increase capital turnover for the Group, helping Fantasia to work and yield maximum benefits Purpose achieve profitable scale growth

• Group/regional decision-makers or members of the management, head of the Investment and M&A • Regional presidents, project general managers, regional Department, head of the Sales Management Department Mandatory and project teams and relevant teams at group headoffice co-investment and regional presidents, general manager of the Business participant Department, project general managers, etc.

• All domestic projects newly acquired by the Company, • All domestic projects newly acquired by the Company, excluding urban renewal projects, properties acquired by excluding urban renewal projects, properties acquired by the Group for strategic purpose and projects held for own the Group for strategic purpose and projects held for own Investment targets use only use only

• For units that have an annualized return on internal funds • An investment company shall be established by the of over 20% and realize capital recovery within prescribed investors to invest in projects invested by the Group. The period, the management team could get a bonus by a investment company and the Group shall make provision ratio contributions on a pro-rata basis in proportion to their • Meanwhile, the Group also launched negative incentives respective shareholding, and shall participate in profit Rules measure, under which penalties will be imposed on the sharing or assume losses in proportion to their respective management team should the annualized return on internal shareholding funds of the unit be less than 13%

39 PART 5

Land Bank and Urban Renewal Projects Abundant Land Bank to Support Future Growth

• As of June 30, 2020, the planned land bank GFA of the Group was 37.31MM m2., including 17.77 MM m2 of confirmed GFA, and 19.54MM m2 of urban renewal projects expected to be converted into land bank in the future • The land bank is concentrated in five major metropolitan areas of China, with first- and second-tier cities accounting for over 90% • Over 50% of land bank is situated in Guangdong-Hong Kong-Macao Greater Bay Area, especially six core cities

Bohai Rim Metropolitan Area City GFA (m2) % Tianjin 697,556 1.9% Baoding 64,525 0.2% Shijiazhuang 63,740 0.2% Zhangjiakou 527,622 1.4% Beijing 174,960 0.5% Qingdao 5,396,291 14.5% Baoding Beijing Subtotal 6,924,694 18.6% Zhangjiakou Tianjin Qingdao Yangtze River Delta Metropolitan Area Central China Metropolitan Area 2 City GFA (m ) % City GFA (m2) % Shijiazhuang Nanjing 562,114 1.5% Wuhan 1,190,072 3.2% Suzhou Suzhou 211,072 0.6% Subtotal 1,190,072 3.2% Shanghai 6,627 0.0% Shanghai Nanjing Hangzhou 335,517 0.9% Ningbo Chengdu Wuhan Hangzhou Ningbo 692,832 1.8% Shaoxing Ziyang Shaoxing 373,867 1.0% Chengdu-Chongqing Metropolitan Area Subtotal 2,182,029 5.7% City GFA (m2) % Guilin Guangzhou Guangdong-Hong Kong-Macao Greater Chengdu Dongguan 3,705,374 9.9% Kunming Bay Area Foshan Ziyang 524,695 1.4% Huizhou City GFA (m2) % Zhongshan Kunming 972,236 2.6% Shenzhen 7,904,788 Shenzhen 21.2% Guilin 1,058,359 2.8% Huizhou 2,380,914 6.4% Subtotal 6,260,664 16.8% Foshan 885,968 2.4% Dongguan 2,751,647 7.4% Zhongshan 3,391,012 9.1% Guangzhou 3,411,610 9.1% Subtotal 20,725,939 55.6% Notes: 1. The Group has a project under construction in Singapore with a total GFA of 22,759 m2 41 Evolvement of Shenzhen Urban Renewal Policy

• It has been 10 years since the promulgation of the Shenzhen Urban Renewal Measures (《深圳城市更新办法》) in 2009, marking the beginning of a series of urban renewal policies in Shenzhen which played a pioneering role in this area in China • Over the past three years, we witnessed increasing demand for urban renewal, improvement in urban renewal policies and accelerated progress in urban renewal projects

Period of revolutionary changes (since 2016)

• Authority delegation to government at district level (强区放权) • The 13th Five-Year Plan • Notice on Establishment and Improvement of a Comprehensive Regulation System for Joint Stock Companies (建立健全股份合作公司综合监管系统的通知) • Draft Urban Renewal Regulations of Shenzhen Special Economic Zone (深圳经济特区城市更新条例(草案)) • ····· Period of development (2013-2016)

Period of initiation (2009-2013) • Improvement of implementation polices and regulations • Urban Renewal Measures • Trial Measures for Dealing with Unauthorised • Implementation Rules of Urban Buildings (违建处理试点办法) Renewal Measures (城市更新办法细 则) • Interim Measures on Enhancement and Improvement of Implementation of Urban • “1+6” Documents of the Government Renewal Projects (城市更新实施工作暂行措 on Optimisation of Resource 施) Allocation to Promote Industrial Transformation and Upgrading • ····· (政府优化资源配置促进产业转型 Period of exploration (2004-2009) 升级“1+6”文件) • ······ • Renovation of urban villages and shabby villages • Upgrading and renovation of old industrial villages • ····· 42 Launch of the Draft Urban Renewal Regulation of Shenzhen Special Economic Zone

• On 28 June 2020, the Draft Urban Renewal Regulations of Shenzhen Special Economic Zone (the “Regulations”) was submitted for consideration and approval for the first time, which is designed to promote the vertical in-depth development of urban renewal business in Shenzhen and will also benefit the urban renewal projects in the following ways:

Implement stringent regulations and Upgrade legislative framework to Impose property freezes to regulate carry out redevelopment to promote stabilize market expectation trade market fairer relocation compensation

Open tendering of construction contractors for redevelopment of old Set out compensation criteria to Address relocation issues based on residential communities regulate relocation practice judicial ruling

43 Urban Renewal Strategy: Rooted in the High-potential Greater Bay Area

• The Group has 46 urban renewal projects under different stages of development in the Greater Bay Area, most of which are located in Shenzhen, and also covering areas across Huizhou, Dongguan, Zhongshan, Foshan and Guangzhou. The projects focused on residential properties and also included industrial and commercial projects • Estimated to have a planned GFA of 19.54MM m2 and a total inventory value of RMB384.5Bn (1)(2)

Shenzhen Number of projects: 27 Estimated GFA: 7.32MM m2 Estimated total inventory value: RMB205.5Bn

Outside Shenzhen Number of projects: 19 Estimated GFA: 12.22MM m2 Estimated total inventory value: RMB179Bn

Residential Number of projects: 34 Estimated GFA: 14.91MM m2 Estimated total inventory value: RMB287.3Bn

Industrial and Commercial Number of projects: 12 Estimated GFA: 4.63MM m2 Estimated total inventory value: RMB97.2Bn

Notes: 1. Given the great uncertainties as to planning adjustments for urban renewal projects, the project information (including but not limited to the estimated GFA, total inventory value, and expected delivery time) is only internal statistics of the Company and can be subject to ongoing adjustment 2. The total inventory value includes the saleable inventory value and the value of relocation housing (which is calculated at market price); The sales unit price in the calculation of inventory value is conservati vel y estimated based on the market price level in 2019 3. Estimated GFA includes capacity building area and others, while the final number will depend on the approval file from the government 44 Well Positioned in Urban Renewal Projects in Shenzhen

• The 27 projects cover virtually all districts of Shenzhen, including all the downtown districts, namely Futian, Nanshan, Luohu and Yantian • The planned GFA is ~7.32MM m2, accounting for ~37% of the total planned GFA of all urban renewal projects The inventory value is estimated to be ~RMB205.5Bn, accounting for ~53% of the total planned inventory value of all urban renewal projects • The central government supports Shenzhen in building a pioneering demonstration zone of socialism with Chinese characteristics, so Fantasia's urban renewal business will grow better and faster given its strong presence in Shenzhen

Shenzhen

Guangming New District

Longhua New Longgang District District Pingshan New District

Bao'an District

Dapeng New District Yantian District

Luohu District Nanshan District

Urban Renew al Projects

45 Plan for Delivery(1) of Urban Renewal Projects from 2020 to 2022

• It is expected that 17 urban renewal projects will be converted into development land in the next 3 years, with a total GFA of ~4.12MM m2 and a total inventory value of ~RMB118.6bn • 16 projects are located in Shenzhen, and 1 in Huizhou • The 16 Shenzhen projects are all in rather mature stages(2) of urban renewal. Two of them are in the stage of demolition compensation (stage 6), five projects are in the stage of applying for special planning (stage 5) and eight projects are in the stage of project establishment (stage 4)

1,186

527 541 412

204 173 118 35

GFA ('0,000 m2) Inventory value (RMB'00 mm)

2020 2021 2022 Total

Total GFA 35 204 173 412 ('0,000 m2)

Total Inventory Value 118 527 541 1,186 (RMB'00MM)

Notes: 1. Delivery is based on the confirmation of the contractor 2. For the stages of urban renewal projects in Shenzhen, please refer to page 59 of the appendix to this presentation 46 Projects Expected to be Delivered in 2020

Pingshan World Plastic Factory Phase II Name Futian Meilin Yuehua Project Name Project At the intersection of Caitian Road and Beihuan Road, which is the north gateway to Futian CBD At the southwest of the intersection of Dongzong Location Location and a station connecting Maling Station of Metro Road and Jinbi Road in Pingshan New District and Meilin East Station of Metro Type Industrial & Commercial Type Residential & Commercial Estimated GFA 126,610 m2 Estimated GFA 220,620 m2 Average Unit Price of RMB120,000/m2 for industrial properties and Average Unit Price of RMB50,000/m2 for residential properties and Nearby Projects RMB180,000/m2 for commercial properties Nearby Projects RMB55,000/m2 for commercial properties Estimated Total Inventory Estimated Total Inventory RMB6Bn RMB5.8Bn Value Value Current Stage Demolition & Compensation (stage 6) Current Stage Demolition & Compensation (stage 6) Estimated Delivery Time 2020 Estimated Delivery Time 2020

47 Six Advantages of Fantasia in Urban Renewal

As a pioneer in urban renewal, Fantasia has built up six advantages by developing urban renewal projects in the Guangdong-Hong Kong-Macao Greater Bay Area, especially in Shenzhen

Geographical • With 21 years of development in the Greater Bay Area, Fantasia has deep insights into urban renewal, is familiar with relevant policies and procedures, understands local culture, is good at handling relationships with original Advantage landowners, and has won the trust and support of many partners

Experience • Fantasia has independently developed various types of urban renewal projects with complete results, and has Advantage accumulated a wealth of experiences in the process

Team • Fantasia has a 150-person professional team and a sound management system for urban renewal Advantage

Professional • After years of efforts, Fantasia has developed a mature valuation system for urban renewal business to accurately estimate the future value of each project by analyzing the difficulty level of urban renewal projects in Advantage different stages

Resource • Fantasia has built a strong industrial real estate ecosystem through exploration and research and developed Advantage diverse capabilities in business collaboration and resource integration

Cost • The cost of acquiring land for urban renewal projects is relatively low, with high expected investment return. At present, it is estimated that the average cost of acquiring land for Shenzhen projects is about RMB 14,500/m2, Advantage and that for projects outside Shenzhen is about RMB 5,000/m2 , which is much lower than the public market price

48 Part 6

Community Service Strategy Colour Life is Well-Positioned for Business Growth with its Leading Advantages

Size advantage 1 Serving the management areas of 564 million m2, and over 10 million property owners

Workforce advantage 2 We have a team of over 50,000 employees with extensive experience and good track record

Market-oriented operation advantage 3 The management areas from third-party engagements accounted for up to 99% of our total management areas

Internet+ advantage 4 Colour Life joined hands with JD.com and 360.com, two Internet titans, to explore online business

Empowerment advantage 5 Export of its brand and extensive experience to empower business development

Execution advantage 6 A litmus test of brand property management companies upon occurrence of major emergency events, where Colour Life has delivered an outstanding performance during the COVID

50 2020 Strategy: Consolidate Offline and Develop Online Value-added Services

Empowering Consolidating business with offline basic online value- services added services

 Enhance basic property management service, improve  Propel implementation of projects in cooperation with service quality, promote satisfaction of property owners JD.COM and 360.COM, promote development of online services and empower offline services  A wide variety of community activities will be organized to promote community harmony and owners’ satisfaction  Build up community business model and community service scenarios, to create further new momentum for growth of industry value

 Cooperation across areas  Cooperation across areas including community sales and including community finance, direct-to-consumer- security, big data, internet logistics, smart communities, and AI technologies cloud technologies and data platforms

51 Future Development Strategy

Largest scale, most diversified product portfolio and best service quality

Community Community Community 1.0 2.0 3.0

Consolidating Building Caring Exploring Basic Services Community Consumption Scenarios Providing “security, cleaning, Carrying out a wide variety of With a focus on community life greening and maintenance” basic themed community activities to scenarios, offering the residents services to improve resident create a closer and trustful various additional services to satisfaction relationship with the residents make property management services an important part of the residents’ lives

52 PART 7

Outlook Important Development Advantages

Balancing the Development of Asset-heavy and Asset-light Business Models with a Focus on Core Business

• Abundant land bank with a focus on the Greater Area: the land bank was 37.31 million m2, with over 50% of land bank situated in the Guangdong-Hong Kong-Macao Greater Bay Area. The existing land bank is sufficient to support our growth target for the coming three years

Property development • Unique products with high premium: the Group has developed three product lines, i.e. ”joyful, business tasteful and meaningful”, offering customers with unique and distinctive boutique products • Leader in urban renewal sector: the Group has explored the urban renewal market for ten “Joyful, tasteful and meaningful” leader in living spaces and years with strong advantages in relevant experience, experienced team, extensive experiences resources and customer loyalty

• Extended service coverage with significant scale effect: community management area reached 560 million m2 with over 37 million eco-system users, providing customers with the best service experience • Leader in exploring value-added services with huge development potential: as a pioneer in embracing the Internet, the Group joined hands with JD.com and 360.com to create smart communities Community service business • Extensive experience in third-party expansion with significant cost advantage: the Group Global leading community service operator has strong capability in third-party management contract expansion with outstanding cost control and community activity experiences

54 2020 Strategies

Operational Strategy: Speed Investment Strategy: Focused 1) Fast sales in small steps to enhance sales turnover 1) Build presence in high-potential cities in 2) Fast construction to complete land acquisition 5 major city hubs and property sales in the same year 2) Prioritize fast turnover while maintaining high profits for projects 3) More efficient operation to improve profit ) margin and cash flow 3 Investment framework to support targeted investments 4) Rapid response to policy and market 4) Open to win-win cooperation opportunities changes

Community Strategy: Safe Financial Strategy: Soundness 1) Completely win the fight in epidemic 1) Control debt scale and keep net gearing prevention and control ratio at ~80% 2) Growth: promote growth in GFA under 2) Exercise sound debt management to optimize management by utilizing advantages of lower debt structure costs and third-party expansion capabilities 3) Diversify financing channels onshore and offshore to 3) Increased efficiency: lowering costs using reduce financing costs internet technologies 4) Improve debt collection efforts to increase capital turnover 4) Value-add: explore further community value- add services opportunities

55

Appendix Group Structure

Fantasia Holdings Group Co., Limited (1777.HK)

51.69% 100.0%

Colour Life Services Group Co., Fantastic Victory Limited Limited (1778.HK)

100.0% 100.0%

Tong Yuan Holdings Limited Fantasia Investment Holdings Company Limited

100.0% 100.0% Offshore Onshore

Shenzhen Colour Life Service Group Fantasia Group (China) Company Limited Co., Limited.

As of June 2020

58 Introduction to the General Process of Shenzhen Urban Renewal Project

1 2 3 4 5 Collective Urban Renewal Conv ening The Assets Project Approv al & Intention Specific Planning Application Four Meetings Transaction Initiation Collection Filing(1)

Time Required 0.5 year 0.5 year 0.5 year 1.5 year 2 year Main Work To determine the subject declarer for the rights of the URPs, with the consent of the village board of To file the urban To incorporate the urban renewal To solicit villagers' renewal project with the regions into the government renewal intention to include their directors, villager To compile a special planning scheme for the urban renewal regions, and properties in the urban shareholders' congress, collective asset unit plan, and obtain the government's determine the volume and plot ratio of the project available for development renewal project village board of management office of approval for urban renewal in the supervisors and local government regions collective assets management committee. Core competencies

Having a good Obtaining local villagers' Being familiar with local Being familiar with local urban renewal reputation among local trust and support collective asset and urban planning policies Being familiar with local urban renewal and urban planning policies villagers management policies

6 7 8 Signing of Implementation Land Compensation & Demolition Subject Transferring Confirmation Contract Time Required 2 year 0.5 year 0.5 year Main Work

To obtain government To pay land premium, To negotiate with villagers and owners about specific compensation standards, confirmation as the and sign a formal land and demolish after agreement signing subject of project transfer contract with implementation the government

Core competencies Good relationship with the government and Good relationship with Good relationship and negotiation skills with local residents the government and familiarity with urban financial strength renewal policies

Notes: 1. Some districts in Shenzhen, such as Longgang, collectively file d the asset transaction after the completion of the special plan 59 Introduction to the General Process of Huizhou Urban Renewal Project

1 2 3 4 5 6 Determination Compilation of Planning Plotting and of Public selection Preliminary rev iew of draft Design Conditions Notice Storage in Due Diligence renov ation of partner units implementation plan or Planning for Renewal Database scope Units

Time Required 0.5 year 0.5 year 0.5 year 0.5 year 1 year 1 year Main Work

Mainly to investigate the For the control detailed planning regions population, household To select the To submit the Old Village Renewal The Rural collective that have been compiled, the government Transformation subjects registration, land, cooperative subjects Implementation Scheme (Draft) organization shall make through public bidding shall issue the Notice of Planning and shall apply to town housing, historical and formulated by the project transformation application, and the on the government's Design Conditions for the land plot; for (district) government for cultural remains of the implementation subjects according to the government shall delimit public platform, with the the control detailed planning regions that plotting and storage in old villages to be basic data results of the preliminary work the transformation consent of more than have not been compiled, the government database transformed, and the to the urban renewal authority in the scope 2/3 of the villager authority shall be responsible for intention of district for preliminary review. representatives, compiling the planning for renewal units transformation.

Core competencies Being familiar with local Being familiar with local Obtaining local villagers' Obtaining local villagers' Being familiar with local urban renewal Being familiar with local urban renewal urban renewal and urban renewal and trust and support trust and support and urban planning policies and urban planning policies urban planning policies urban planning policies

7 Compilation of 8 9 Signing of Demolition Signing of Land Implementation Scheme, Compensation Transferring and Public Voting for the Agreement Contract Scheme

Time Required 1 year 1 year 0.5 year Main Work

The implementation scheme including the To pay land premium, compensation and resettlement scheme Demolition after signing a demolition and sign a formal land for demolition shall be voted on in the compensation agreement transfer contract with village the government

Core competencies Good relationship with Good relationship and negotiation skills Good relationship and negotiation skills the government and with local residents with local residents financial strength

60 Introduction to the General Process of Dongguan Urban Renewal Project

W illingness 1 Public 2 3 4 Draft public 5 6 Upgrade objectives of consultation with Attracting Acquisition contracts with real estate tendering selection of real estate local units process Partners owners early partners owners Time Required 0.5 year 1 year 0.5 year 0.5 year 0.5 year 0.5 year Main Work

Take on most if not all Local government early-stage (street Clarify job functions of responsibilities Draft public management suppliers, fee calculation including willingness Local government (street tendering bureaus) consult matrices, settlement Negotiation on compensation standards with villagers and consultation, plan management bureaus) drafting proposals, fine-tuning, probability with real estate timeline and calculation; owners, moving-out and demolishment will begin after the signing proposals on upgraded objectives organize assessment, social owners within the attract partners through of contracts of local units democratic risk assessment, upgraded scope of collective asset basic data framework units to be management networks assessment, proposal drafting demolished Core Competencies

Good reputation Good relationships with local Trusted and Trusted and Good relationships with local Good negotiation capabilities and relationships w ith local among local villagers governments and familiarity with relevant supported by local supported by local governments and familiarity policies villagers villagers with relevant policies villagers and real estate ow ners

7 Confirm 8 9 Signing of Implement proposal closing party contracts

Time Required 0.5 year 0.5 year 0.5 year

Main Work Pay for differences in land Signing of Drafting prices and official signing of“1+N”implementation of contracts with local agreements to governments in regards to confirm closing party proposals the change in land interests Core Competencies Good relationships Familiarity with relevant Familiarity w ith relevant local with local governments and local policies policies financial capability

61 Introduction to the General Process of Dongguan Urban Renewal Project

1 2 3 4 5 Consultation Compilation of a Listing for on intention scheme for the inv estment by Renewal Unit Delimitation Offer to acquire the real estate interests of real estate listing for the single interest owners inv estment subjects

Time Required

1 year 0.5 year 0.5 year 0.5 year 2 year Main Work

To clarify the specific The Town People's work contents, fee Government (Street settlement standards, To prepare a public Town People's Government Street Office Office) shall seek the settlement time points solicitation scheme and and settlement methods To negotiate with villagers and owners about specific compensation standards, shall organize the compilation of a renewal intention of all organize democratic of the service providers, and demolish after agreement signing renewal unit delimitation scheme real estate owners within voting and introduce partners the scope of the renewal publicly through the unit demolition collective asset management network

Core competencies Good relationship with Good relationship with the government Obtaining local villagers' Obtaining local villagers' the government and Good relationship and negotiation skills with local residents and familiarity with urban renewal policies trust and support trust and support familiarity with urban renewal policies 6 7 8 Determination of Signing of Land Implementation of Scheme the Closing Transferring Compilation and Reporting Party Contract

Time Required 0.5 year 1 year 0.5 year Main Work

To pay land premium, Make an agreement to To formulate the overall implementation and sign a formal land confirm the closing party scheme of "1+N" transfer contract with the government

Core competencies

To be familiar with local To be familiar with local urban renewal Good relationship with urban renewal policies the government and policies financial strength

62 Introduction to the General Process of Zhongshan Urban Renewal Project (Scenario 1: Previously Selected Cooperative Enterprises)

1 2 3 4 5 6 Declaration of the Surv ey of Public selection Submission for approv al Public selection transformation project Public Voting for transformation of upfront and announcement of of enterprises of planning scheme, and Determination of intention service providers transformation project plan interest compilation of renewal unit Cooperativ e Enterprises planning

Time Required 0.5 year 0.5 year 1 year 0.5 year 1 year 1 year Main Work

The villagers shall vote on the optimal design scheme and detailed compensation and To undertake part or all of resettlement scheme of the enterprise with the upfront work such as The town authority shall review and announce To select no more than 3 The planning scheme of the transformation cooperative intention. There is only one To solicit villagers' intention survey, mapping, the transformation scope, area, land use, enterprises with project of the bidder with the best enterprise with cooperative intention and the cooperative enterprise is determined directly by intention to include their feasibility study implementation mode, planning scheme, cooperative intention in comprehensi ve score among the intended voting; If there is more than one enterprise, it properties in the urban assessment, social risk compensati on and resettlement scheme, turn, according to the enterprises shall be declared to the township by will be eliminated by voting one by one. The renewal project assessment, basic data transformation timing sequence, intention comprehensi ve ability of the the collective economic organization as the demolition compensation scheme involved survey, scheme investigation materials, voting results, etc. enterprises planning scheme of the project shall be agreed by more than 2/3 of the compilation, etc. members of the collective economic organization (or the general assembly of the members). Signing of Cooperation Agreement

Core competencies Being familiar with local Having a good reputation Having a good reputation Being familiar with local urban renewal and Being familiar with local urban renewal and Good relationship and negotiation skills with urban renewal and urban among local villagers among local villagers urban planning policies urban planning policies local residents planning policies

7 Determination of 8 9 10 Procedures for qualification Compilation of project Signing of the Demolition applying for the of the Compensation Agreement transformation scheme, transfer of land implementation v oting and approv al by agreement subject Time Required 0.5 year 1 year 1 year 0.5 year Main Work

To pay land premium, and To obtain government To negotiate with villagers and owners about To compile the project transformation scheme, sign a formal land transfer confirmation as the subject specific compensati on standards, and demolish which shall be voted on by collective economic contract with the of project implementati on after agreement signing organizations and approved by the government government

Core competencies Good relationship with the Good relationship with the Good relationship and negotiation skills with Good relationship and negotiation skills with government and familiarity government and financial local residents local residents with urban renewal policies strength

63 Introduction to the General Process of Zhongshan Urban Renewal Project (Scenario 2: Later Selected Cooperative Enterprises)

1 2 3 4 5 6 Carrying out Formulation of Compilation of inv estigation Public selection transformation project transformation project plan, Dev elopment of and v oting Public selection on of upfront plan, submission for formulation of the on project design scheme of cooperativ e transformation service providers approv al and compensation and and public trading scheme enterprises intention announcement resettlement scheme

Time Required

0.5 year 0.5 year 1 year 1 year 1 year 0.5 year Main Work Public selection of The collective economic organization shall cooperative enterprises entrust relevant service institutions, according According to the approved transformation unit through public resource to the basic data such as the scope, area, land To undertake part or all of planning, the collective economic organization trading centers shall be not The town authority shall review and announce and housing of the proposed transformation the previous work such as shall entrust the relevant service organization less than 30 days after To solicit villagers' the transformation scope, area, land use, land, and the planning situation of the proposed public announcement intention survey, mapping, transformation land, organize the formulation of to formulate the project design scheme, and set intention to include their implementation mode, planning scheme, (qualification requirements feasibility study the planning of the reconstruction project, the the open trading conditions, cooperation properties in the urban compensati on and resettlement scheme, shall be met, and the assessment, social risk simultaneous formulation of the compensation agreement and other plans according to the renewal project transformation timing sequence, intention contract signing rate for and resettlement scheme, examinati on and and demolition assessment, basic data approval of the towns, voting by at least 2/3 of procedure around the quality strength, investigation materials, voting results, etc. compensati on and survey, related scheme the members of the village collective economic development experience, responsibility ability, compilation, etc. construction cycle and benefit division of the resettlement within 12 organizations (or members' congresses) for months shall be more than agreement. market subject to be selected. 80%) Core competencies

Being familiar with local Having a good reputation Having a good reputation Being familiar with local urban renewal and Good relationship and negotiation skills with Being familiar with local urban renewal and urban renewal and urban among local villagers among local villagers urban planning policies local residents urban planning policies planning policies

7 Determination of 8 9 10 Procedures for qualification of Compilation of project Signing of the Demolition applying for the the Compensation Agreeme nt transformation scheme, transfer of land implementation v oting and approv al by agreement subject Time Required 0.5 year 1 year 1 year 0.5 year Main Work

Formulation by the project transformation scheme by the implementati on body , voting by The demolition contract rate after negotiating To pay land premium, and To obtain government the collective economic organization, consent compensati on standard with villagers and sign a formal land transfer confirmation as the subject by 2/3 above the members of the collective owners shall be at least over 80%; otherwise, contract with the of project implementati on economic organization (or the general meeting subject of cooperation will be disqualified government of the members) and approval by the municipal government Core competencies Good relationship with the Good relationship with the Good relationship and negotiation skills with Good relationship and negotiation skills with government and familiarity government and financial local residents local residents with urban renewal policies strength

64 Introduction to the General Process of Foshan Urban Renewal Project (Refer to Nanhai Region)

1 2 3 4 5 6 Determination of Plotting and Voting of the Declaration of Public selection of and Compilation of Planning for renov ation storage in intention of urban renewal v oting on the cooperativ e Urban Renewal Units scope database renewal unit plan subjects

Time Required

0.5 year 0.5 year 0.5 year 0.5 year 1 year 1 year Main Work

To incorporate the Village Collective urban renewal regions Application for inclusion Identification of upfront To compile a special planning scheme Application and into the government After making the recruitment documents, in the work of plotting service providers, and for the urban renewal regions, and Government renewal unit plan, and the village collectives shall publicly select and storage in determination of determine the volume and volume ratio Determination of Urban obtain the government's and vote on the cooperative subjects. database intention of renewal of the project available for development Renewal Scope approval for urban renewal in the regions

Core competencies Being familiar with local Being familiar with local Obtaining local Being familiar with local Obtaining local villagers' trust and Being familiar with local urban renewal urban renewal and urban renewal and villagers' trust and urban renewal and support and urban planning policies urban planning policies urban planning policies support urban planning policies

7 8 9 Compilation of project Signing of Land Signing of Demolition and implementation scheme Transferring Resettlement Agreement and v oting Contract

Time Required 1 year 1 year 0.5 year Main Work

To pay land premium, To negotiate with villagers and owners To implement Scheme with Demolition and sign a formal land about specific compensation standards, Compensation Settlement Scheme transfer contract with and demolish after agreement signing the government

Core competencies Good relationship with Building good relationship with local Good relationship and negotiation skills the government and villagers with local residents financial strength

65 Introduction to the General Process of Guangzhou Urban Renewal Project

1 2 3 4 5 6 Village Collective Application for Collection of Include Urban Public Selection of Renewal Scope Preparation and rev iew of Plotting and intention to Renewal Annual Cooperativ e Determination the implementation plan Storage in transform Plan Enterprises Database

Time Required 0.5 year 0.5 year 0.5 year 0.5 year 0.5 year 1 year Main Work The district government shall direct the To incorporate the Village Collective to compile the project urban renew aled The district government implementation scheme, solve all District Renewal Rational determination of shall check the basic opinions and improves the plan, and To solicit villagers' regions d into the Institution directs village renewal scope by the data, and after the basic then report to the city renewal bureau. intention to include their government renew al The city renewal bureau shall take the collective applications to guidance of Regional data is published, the properties in the urban lead to review the relevant matters and be included in plotting Government to the unit plan, and obtain Village Collective shall renewal project feed back to the district government. The and storage in database Village Collective the government's introduce the cooperative district government shall direct the approval for urban enterprises publicly. village collective to revise the scheme according to the feedback, and then renew al in the regions form the scheme voting draft. Core competencies Being familiar with local Being familiar with local Being familiar with local Having a good reputation Obtaining local villagers' Being familiar with local urban renewal urban renewal and urban urban renewal and urban urban renewal and urban among local villagers trust and support and urban planning policies planning policies planning policies planning policies

7 8 9 Signing of Land Implementation Demolition Negotiations Transferring Scheme Voting Contract

Time Required 0.5 year 2 year 0.5 year Main Work

Passing of the To pay land premium, implementation scheme To negotiate with villagers and owners about specific compensation standards, and sign a formal land by the voting of village and demolish after agreement signing transfer contract with the representatives government

Core competencies Good relationship with Building good relationship Good relationship and negotiation skills with local residents the government and with local villagers financial strength

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