Fantasia Holdings Group Co., Ltd. 2019 Interim Results Presentation

August 2019 Disclaimer

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

No representations or warranties regarding the impartiality, accuracy, completeness or correctness of the information or opinions 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 document (whether negligence or misrepresentation under tort law, contract law or any other relevant law.

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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 actual 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.

3 I. Performance Highlights in the First Half of 2019 Contents 05-06

II. Stabilize Finance

07-12

III. Focus on Operation

13-17

IV. Focus on Investment

18-23

V. Future Strategies

24-39

VI. Appendix

40-48 I Performance Highlights in the First Half of 2019 Performance Highlights in the First Half of 2019

Community services and Contracted sales Total revenue other revenue

13.17billion yuan 8.58 billion yuan 2.85 billion yuan 16.5% YoY increase 65.1% YoY increase Provides stable cash flow

Gross profit margin Net profit Net gearing ratio

29.6% 244 million yuan 79.5% Maintains a high level 35.6% YoY increase Sound financial status

GFA under construction Overall planning of land reserve Urban renewal project

7.39 million sq.m 33.20million sq.m 16.72 million sq.m Speeds up turnaround to ensure available resources Rich land reserve provides power for future development Focusing on the Greater Bay Area

6 II Stabilize Finance Steady increase in revenue and earnings

TOTAL REVENUE GROSS PROFIT MARGIN MILLION YUAN %

13,986

10,921 9,783 32.3% 8,577 29.6% 29.9% 29.6% 5,196 25.4%

2016 2017 2018 1H2018 1H2019 2016 2017 2018 1H2018 1H2019

GROSS PROFIT NET PROFIT MILLION YUAN MILLION YUAN

1,410 4,184 1,168 3,528 1,064 2,898 2,537

1,318 180 244

2016 2017 2018 1H2018 1H2019 2016 2017 2018 1H2018 1H2019

8 Simultaneous Advancement of Dual Head “Real Estate + Community”

Revenue from property sales Community services and other revenue(1) • 123.6% YoY growth in the first half of 2019 • 8.1% YoY growth in the first half of 2019 • Accounts for 66.8% of total revenue • Accounts for 33.2% of total revenue • Becomes a "power source" for future revenue growth • Becomes a "stabilizer" for cash inflows

MILLION YUAN

8,366 8,555 6,598 5,431 5,731

3,185 2,555 2,563 2,633 2,846

2016 2017 2018 1H2018 1H2019 Revenue from property sales Recurring revenue

TOTAL REVENUE PROPORTION Revenue from Community Revenue from Community Revenue from Community Community Revenue from Community Revenue from property sales services and property sales services and property sales services and services and property sales services and property sales 76.6% other revenue 49.5% other revenue 66.8% other revenue other revenue 67.5% other revenue 61.2% 50.5% 33.2% 23.4% 32.5% 38.8%

2016 2017 2018 1H2018 1H2019

Note: (1) Community services and other revenue means revenue from property investments, property agency services, property management services and other services other than that from property development

9 Soundness and Optimization of Financial Situation

Million yuan 2018 1H2019 Bank balance and cash 28,570 25,064 Total borrowing 43,624 40,547 Net assets 19,455 19,485 Net debts/Net assets 77.4% 79.5%

NET DEBTS/NET ASSETS DEBT CURRENCY STRUCTURE DEBT CHANNEL STRUCTURE % % % 0.3% 1.5% 83.0% 79.5% 14.0% 16.7% 14.0% 76.0% 77.4% 39.2% 38.0% 37.8% 29.9% 43.4% 19.7% 27.4% 27.8% 13.6% 22.5% 15.0% 13.7%

60.8% 62.0% 62.2% 56.3% 55.0% 43.8% 41.8% 43.6%

2016 2017 2018 1H2019 2016 2017 2018 1H2019 2016 2017 2018 1H2019

RMB USD HKD Offshore bond Onshore bond Bank loan Others

10 Effective improvement in debt management

BONDS MANAGEMENT BEHAVIOURS SINCE 2019 Issued RMB800 million of domestic company bonds and repaid RMB310 million private 5-YEAR DOLLAR NATIONAL BOND RATE (%) bonds Issued additional Redeemed $300 Repurchased Issued $200 million Got Fitch B+ $100 million notes million notes Issued RMB1 billion $2.5 million notes of dim sum bonds notes rating Redeemed RMB1.6 from the open Rating outlook promoted to Additional billion of dim sum market “Stable” by Moody's and issued bonds Issued S&P Global Ratings Redeemed $140 $100 million 2.5 million notes $200m bonds bonds

1.5 2019/1/1 2019/1/31 2019/3/2 2019/4/1 2019/5/1 2019/5/31 2019/6/30 2019/7/30 MATURITY SITUATION OF OFFSHORE US DOLLAR BONDS DEBT YEAR STRUCTURE USD MILLION In July 2019, USD 300 million senior notes were issued and USD 250 million 0.5% 0.7% 4.4% 0.5% 1,800 2 due in January 2020 was planned to be redeemed in advance 35.2% 44.0% 38.9%

1,200 74.3% Full repayment of USD 500 140 million senior 23.6% 36.6% 30.2% notes due in July 2019 250 600 600 13.6% 33.1% 25.2% 27.7% 1 300 11.6% 250 300 140 200 0 100 2016 2017 2018 1H2019 2019 2020 2021 2022 2023 Within 1 year 1 - 2 years 2 - five years More than 5 years

RATING PROMOTED BY THREE INTERNATIONAL RATINGS AGENCY

April 2019 April 2019 July 2019 Rating outlook promoted to Rating outlook promoted to B+ for the first rating "Stable" "Stable"

11 Stabilize finance by means of “1 strength & 3 controls”

• Collaborate on marketing, set goals & adjust strategies • Track daily, assess monthly & strengthen incentives • Communicate with banks, implement quotas & carry out approval Strength in • Place emphasis on revitalization, control and manage process & speed up payments cash recovery

• Boost product standardization Cost • Establish a collection system for the Group control • Optimize target cost management • Strengthen dynamic monitoring analysis

Expense • Set up an ad hoc task office control • Set up an expense standardization system • Strengthen budget management and assessment • Control financing costs

• Strengthen management of balance-of-payments, set up a bottom line requirement for cash levels & Risk prevent liquidity risks control • Strengthen management of exchange rate risks, use professional tools in a rational way & prevent exchange loss risks • Optimize financial management and control system, upgrade management functions and tools & prevent financial management risks • Define a red line against liabilities, broaden financing channels & optimize domestic and overseas financing structures and deadlines

12 III Focus on Operation Steady Increase in Contract Sales

GEOGRAPHICAL DISTRIBUTION OF CONTRACTED SALES IN THE FIRST HALF OF 2019

Central Bohai Rim Metropolitan area Metropolitan Area 13,170 million yuan 0.777 2.22 Contracted sales 16.5% YoY increase billion yuan billion yuan

Residential products 81.5% Significantly effect in Product structure accelerated deduction

75.8%

Sales collection rate Maintain a high level Chengdu- -Hong Chongqing Kong-Macao Yangtze River Delta Metropolitan Area Greater Bay Area Metropolitan Area 5.418 0.870 3.885 20%-30% YoY increase billion yuan billion yuan billion yuan Whole year sales target Confident in hitting the target

14 Colour life ecosystem improves continuously

Platform service area Ecosystem of Colour Life Online platform Cumulative About 1.206 billion 32 million registered activity transaction amount of users Caizhiyun Platform sq.m 51.3% 5.547 billion yuan

CONTINUOUS GROWTH OF PLATFORM SERVICE AREA JD AND 360 BECAME SHAREHOLDERS OF COLOUR LIFE

• As of June 30, 2019, Colour Life has established cooperation with over 100 property • On July 19, 2019, Colour Life issued an announcement that it has signed enterprises, with the service area of 1.206 billion sq.m. In the future, the cooperative cooperation agreements at capital and business cooperation levels with JD and 360. enterprises will be able to make the communities and owners they serve enjoy the After completion of the transaction, JD and 360 will hold 5.00% and 3.05% shares products and services provided by ecosystem enterprises through the Caizhiyun of Colour Life respectively. Platform. • Based on the successful operation of Caihui Rensheng, JD and Colour Life will cooperate in areas such as business, logistics and science and technology. • As of June 30, 2019, the registered users of the Colour life ecosystem reached 32 • 360 will give play to its advantages in fields of security, big data, Internet of million; where, the active users of ecosystem reached 16.4 million; the degree of Things, artificial intelligence, etc., and create a private, safe and intelligent activity reached 51.3%. community with Colour Life. SHARE PROPORTION AFTER COMPLETION OF TRANSACTIONS MILLION SQ.M Fantasia Holdings Group Co., Ltd. JD Public shareholders (1777) 1,206 1,122 Yaoweifu Enterprise 981 360 900 Co., Ltd. 770 51.70% 15.25% 5.00% 3.05% 25.00%

Colour Life Services Group Co., Ltd. (1778) 2016 2017 2018 1H2018 1H2019

15 Strategy of Enhancing Operation: Quality and Efficiency Improvement

Quality and Efficiency Improvement Achieving Quality Growth

High Efficiency of Information Process Refinement Operation Platformization

Speed and Result Orientation Overall Planning Efficiency Increase

Enhancement of Enhancement of Step-by-step Synergy Assessment Implementation

Horizontal and Risk Checks and Data Support Vertical Circles Balances

Organization Organizational Function Empowerment and Flattening Structure Positioning Efficiency Increase

16 Improving the Group's Operation Ability from Four Aspects

Organization High Efficiency of Information Process Refinement Flattening Operation Platformization

• Implementing the three-layer • Managing profit and cash flow • With financial management as the • In the future, the upgrading of orientation, setting up an operation informatization platform ，will be promoted management system of “group- throughout the development on the basis of the IT construction assessment system centering on region-project”to clarify the cycle strategy， of "overall planning and step-by- positioning and division of profit and cash flow management step implementation” to ensure the online • Strengthening "8 horizontal and and offline integration，, thus further labour at all levels， • Building a three-layer operating improving the company's operation quality 8 vertical" management model conference system, and increasing and efficiency • Achieving the goal of "group and， emphasizing the effective the efforts of operation, specialization - stronger Display OA, Mobile synergy between horizontal management and control through Applications and business - faster project" whole process and vertical full "one layer of control, one layer of Layer Portals participation and one layer of through the three-layer structure function Decision- observation" Management Cockpit and two-level management and making control Support Comprehensive Layer budget management Storage Real Plan Management Platform Estate Specialized Building Business Operation Product Realization Group Perspective Support

Financing flow Cash Layer Management Cash flow Regional区域公司 Supply Sales Service Strong 现金流 Companies Resource

Profit Sales Profit Manage Management Task 利润 Value 项目公司 Saving ment Knowledge Management, 计划 货值 Process Management, Project Support Fast Return Layer Document Management, Company Balanced type Internal Control Management Settlement Foundation Platform Data Center Layer

17 IV Focus on investment Focusing on strategic cities, expanding strategic cooperation

• Since 2019, the Group continued to expand its strategic depth around the metropolitan area and focused on key areas. The Group has added a new land block in Zhangjiakou and Tianjin respectively. The total construction area of interests is about 430,000 sq.m, and the investment amount of interests is about 1 billion yuan. • In the first half of the year, the Group launched strategic cooperation with CIFI Group. It is expected that cooperation will be implemented for several projects in the whole year. Primarily, CIFI Group will become a shareholder for part of the equity of the Group's projects. The two parties will conduct operations jointly. The cooperation is favourable for the Group to speed up turnaround and learn advanced experience of housing enterprise operation. In the future, the Group have opportunities to participate in the strategic partner’s quality projects, and work with the partner to jointly bid for quality land in the open market.

LIST OF NEW LANDS SINCE 2019

Equity Land Price Land Price per sq.m Land acquisition Equity Proportion Equity (RMB) (RMB) Project Name City method GFA (sq.m) (sq.m) GFA(sq.m) million yuan) Yuan/sq.m)

Huailai Block Zhangjiakou Cooperative M&A 527,622 55% 290,192 371 1,278

Xiazhuzhuang Street Bid in the open Tianjin 136,117 100% 136,117 626 4,599 Block, Wuqing market

Total 663,739 426,309 997 2,339

OVERVIEW OF COOPERATION PROJECTS WITH CIFI GROUP THIS YEAR

Wuhan Blue Sky Wuhan Hanzheng Street Pingshan Phase I Located in Dongxihu Located in Qiaokou Located in Pingshan District District of Wuhan of Wuhan of Shenzhen GFA of About 180,000 sq.m GFA of about 360,000 sq.m GFA of about 330,000 sq.m

19 Rich land reserve supports future development

• As of June 30, 2019, the Group planned a total of nearly 33.20 million sq.m of land reserves, including 16.72 million sq.m of urban renewal projects expected to convert to land reserves in the future. (2) • Among the planed land reserves in the five Metropolitan Areas, tier-1 and tier-2 cities account for Bohai Rim Metropolitan Area over 90%. City Building Area(sq.m) % • Guangdong--Macao Greater Bay Area accounts for over 50% in the six core cities. Tianjin 694,079 2.1 Baoding 64,525 0.2 Tangshan 542,101 1.6 Shijiazhuang 63,740 0.2 Zhangjiakou 527,622 1.6 Qingdao 4,431,801 13.4 Subtotal 6,323,871 19.1

Tangshan Zhangjiakou Yangtze River delta region Baoding Tianjin City Building Area(sq.m) % Central China Metropolitan Area Qingdao City Building Area(sq.m) % Shijiazhuang Nanjing 482,308 1.5 Wuhan 1,370,514 4.1 Hangzhou 233,911 0.7 Subtotal 1,370,514 4.1 Suzhou Suzhou 211,072 0.6 Nanjing Shanghai Ningbo 330,363 1.0 Hangzhou Ningbo Chengdu Wuhan Shanghai 6,627 0.02 Ziyang Subtotal 1,264,281 3.8 Chengdu-Chongqing Metropolitan Area (sq.m) City Building Area % GuilinGuangzhou Greater Bay Area Chengdu 3,655,105 11.0 City Building Area(sq.m) % Ziyang 524,695 1.6 Kunming Shenzhen 6,455,957 19.4 Kunming 1,183,088 3.6 Huizhou 3,015,483 9.1 1,104,577 3.3 Shenzhen Subtotal 6,467,465 19.5 Dongguan 2,438,981 7.4 Zhongshan 3,439,944 10.3

Note: Foshan 2,209,291 6.7 (1) The Group has a project under construction in Singapore with a total GFA of 29,262 sq.m. 186,066 0.6 Subtotal 17,745,722 53.5 20 Strategy of emphasizing investment: adjusting layout and structure, and emphasizing investment quality

Profitability Initiatives of emphasizing investment in 2019:

Adjusting Emphasizing structure quality Investment Liquidity • Clarifying urban Layout • Focusing on Three • Optimizing investment the front end structure Attributes • Controlling the middle end • Following up Security the back end

21 Strategy of Emphasizing Investment: Structural Adjustment

1. Clarifying Urban Distribution

In Combination with the Development Strategy and Development Level of National Urban Agglomeration, Making Urban Layout with the "5+N" Investment Strategy

• 5 (Strategic Core Area): Beijing-Tianjin-Hebei+Yangtze River Delta+Guangdong-Hong Kong-Macao Greater Bay Area +Central China Region+Chengdu-Chongqing Economic Zone

• N (Cities Focused): 20 + Deep-Cultivated Cities and Cities with Opportunity Entry

Region Deep-Cultivated Cities Cities with Opportunity Entry 1 Guangdong- Shenzhen, Guangzhou, Huizhou and Hong Kong- Foshan and Zhongshan Dongguan Macao Beijing- Chengdu- Chengdu, Chongqing, Kunming and Guilin Xi'an, Guiyang and Tianjin- Chongqing Hebei

Yangtze River Structure Adjusting Shanghai, Nanjing, Suzhou and Hangzhou Ningbo and Hefei Delta

Beijing-Tianjin- Beijing, Tianjin, Qingdao and Shijiazhuang Dalian, Yantai and Jinan 5 Hebei Yangtze Central River Changsha, Zhengzhou and Central China Wuhan Nanchang China Delta Chengdu - Chongqi ng Guangd ong- 2. Optimizing Project Structure Hong 3 6 Kong- Macao • Increasing the proportion of high-turnover projects to 70%

• Realizing that the profit-oriented and granary- type projects account for 30%

22 Strategy of Emphasizing Investment: Emphasizing Quality

Emphasizing quality

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

Standardizing the investment decision-making Strengthening the post-investment Strengthening urban research process management

• Cities entered: Deeply tapping the value • Establishing the standard investment decision- • Strengthening the large-scale operation functions, and of potential plates, analyzing customer making process, and standardizing the framework, comprehensively planning the management over "storage, responsibilities and mechanism for investment building, financing, supply, sales, saving, return and demand, and forecasting the city cycle settlement" of projects at all stages and in the whole cycle decision-making • Cities newly entered: The first project • Supplementing finance, tax and legal investment personnel must be developed in cooperation with a • Fully mobilizing professional functions, to escort to control risks in the whole process after investment local mature housing enterprise investment results Improving the accuracy of research and Clarifying the investment plans Dynamic Tracking Management judgement • Making a valuation model of plates and • Clarifying quantitative financial standards for • Conducting dynamic tracking and plots to improve the accuracy of project investment, calculating investment objectives from accounting according to project schedule multiple angles, explicitly decomposing them into research and judgement regions, and updating them on a rolling basis and cost

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

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

Compilation of Project Review Project Review City Reports and Estimates Discussion Meeting Yes Stor- Settle Yes On-line Approval of Phase II Payment of Deposit Projects age Build Finan- Sav- Re- -ment Provision of Sup- Authorized Price -ing cing Sales ing turn Yes ply Participation in Project Auction Project Summary Transfer Review of Transaction Agreement Plate Phase III Project Initiation Meeting Finance, Taxation and Law Matters of the Investment and Development Department Regional/Urban of the Group and the Functional Departments in the Real Matters of the Investment Decision- Matters Concerning the Merger Corporate Matters Estate Group in China making Committee of the Group and Acquisition Process Plot

23 V Future Strategies Urban Renewal Strategy:Focusing on the Greater Bay Area to 1 Create the Master of Renewal

The Group has 39 urban renewal projects in the Greater Bay Area which are under different stages and most of which are located in Shenzhen. The group has deployed projects in Huizhou, Dongguan, Zhongshan, Foshan, Guangzhou and other cities, with an estimated total planned building area of about 16.72 million sq.m and a total reserve value of about 352.6 billion yuan(1)(2).

Foshan Guangzhou Huizhou Number of projects: 2 Number of projects: 1 Number of projects: 6 Estimated GFA: 2.21 million sq.m Estimated GFA: 190,000 sq.m Estimated GFA: 2.58 million sq.m Estimated total value: 47.9 billion yuan Estimated total value: 4.6 billion yuan Estimated total value: 28 billion yuan

Zhongshan Dongguan Shenzhen Number of projects: 4 Number of projects: 4 Number of projects: 22 Estimated GFA: 3.44 million sq.m Estimated GFA: 2.44 million sq.m Estimated GFA: 5.86 million sq.m Estimated total value: 56.6 billion yuan Estimated total value: 55 billion yuan Estimated total value: 160.5 billion yuan

Note: (1) As the urban renewal projects have significant uncertainties such as planning adjustment, the project data (including, but not limited to, the estimated building area, value, expected time of market entry, etc.) in this document is only used for internal statistics of the Company and may be continuously adjusted. (2) The total value includes the value of the available sales and the value of replacement buildings (the value of replacement buildings is calculated at market prices). The sales unit price in value calculation is estimated prudently based on the market static price levels in 2019.

25 1 Shenzhen’s Advantages in Urban City Renewal

• 22 projects over Shenzhen • Enter core areas such as , , Nanshan District, etc. • The GFA of planned land reserve area was 5.86 million sq.m and accounts for nearly 35% of the total land reserve area of the urban renewal project, and the estimated total value is 160.5 billion yuan and accounts for nearly 46% of the total urban renewal project value. Shenzhen

Guangming New District

Longgang District Longhua New District Pingshan New District

Baoan District

Dapeng New District

Luohu District Nanshan District Futian District

Urban renewal project

26 Successful Case of Urban Renewal Project - Pingshan 1 World Plastics Factory Phase I

40,000/ 1-3 City renewal intention Total building 18 328,541 sq.m sq.m collection, convening four area meetings, collective asset months Located in the southwest of transaction filing Expected gross margin the intersection of Dongzong 17 Location Road and Jinbi Road in above 50% 4 Project initiation months Pingshan New District RMB4,500/sq.m 19 Type Residential, commercial months RMB12,500/sq.m 5 Special planning reporting

Signing the land transfer 32 Current stage Average cost Average selling price 6-8 Housing demolition, months contract (stage 8) implementation of subject Cost of land Cost of construction confirmation Estimated sales 2020 time

BEFORE TRANSFORMATION CURRENT STATUS AFTER TRANSFORMATION (EXPECTED)

Note: (1) Include demolition costs 27 1 Land Supply (1)Plan for Urban Renewal Projects from 2020 to 2022

• 20 urban renewal projects is expected to be converted into development land in the next 3 years. It is estimated that the total construction area of the land supply will be about 6.31 million square meters, and the total value of the land supply will be about 133.4 billion yuan. • 14 of them are located in Shenzhen, 5 in Huizhou and 1 in Dongguan. • All the 14 Shenzhen projects are in the mature stage of urban renewal(2) , among which 1 is in the stage of demolition compensation (stage 6), 5 are in the stage of declaration for special planning (stage 5), 4 are in the plan for project initiation (stage 4), and 4 are in the stage of filing of collective asset trading (stage 3).

1,333.6

668.6 612.7 631.2 388.9 229.0 13.3 52.3 Area of supplies(10,000 sq.m) Value of supplies(100 million)

2020 2021 2022 Total Total building area (ten 13.3 388.9 229.0 631.2 thousand sq.m) Shenzhen 13.3 180.5 198.6 392.4 Huizhou – 208.4 – 208.4 Dongguan – – 30.4 30.4 Total value (hundred million 52.3 668.6 612.7 1,333.6 yuan) Shenzhen 52.3 448.4 559.9 1,060.6 Huizhou – 220.2 – 220.2 Dongguan – – 52.8 52.8

Note: 1.The supply of land shall be marked by the signing of the land transfer contract. 2.Please refer to page 43 of the annex for the urban renewal phase of Shenzhen .

28 1 Project expected to be available in 2020

Name Futian Meilin Yuehua

Located at the intersection of Caitian Road and Beihuan Road, north portal of Futian CBD, Location the junction of Ziling station of metro and Meilindong station of metro

Type Industrial housing, commercial

Estimated GFA 133,240 sq.m

Average price of nearby 60,000/sq.m for industrial housing, projects 100,000/sq.m for commercial housing

Estimated total value 5.2 billion yuan

Current stage Specific planning reporting (stage 5)

Expected time of land 2020 supply

29 1 Project expected to be available in 2021

Estimated total Estimated value S.N. Project Location Type Development stage GFA(sq.m) (ten thousand yuan)） Pingshan World Plastics (6) Housing demolition 1 Pingshan, Shenzhen Residential, commercial 220,620 579,412 Factory Phase II compensation Xinghua five-building Industrial housing, 2 Nanshan, Shenzhen 86,478 362,311 (4) Project initiation project commercial 3 Bailihong project Dapeng, Shenzhen Residential 79,051 194,326 (5) Specific planning reporting Kwai Chung Great Land 4 Dapeng, Shenzhen Residential 506,308 1,114,351 (4) Project initiation Project Kwai Chung Small Land 5 Dapeng, Shenzhen Residential, commercial 140,080 281,859 (4) Project initiation Project Caopu Qingshuihe New 6 Luohu, Shenzhen Residential, commercial 121,029 499,105 (5) Specific planning reporting Village project Commercial, apartment, 7 Longhua Qinghu Project Longhua, Shenzhen 578,232 1,238,879 (5) Specific planning reporting factory, R&D housing Shajing Farmers Market 8 Shajing, Shenzhen Commercial, office 73,586 213,470 (4) Project initiation Project (4) Open selection of 9 Baichen village Zhongkai, Huizhou Residential 221,097 219,751 cooperative units

10 Donngya Village Huicheng, Huizhou Residential, commercial 904,353 904,353 (3) Fact-finding investigation (4) Open selection of 11 Fangcun Zhongkai, Huizhou Residential, commercial 287,955 307,152 cooperative units Luohu Village back-given 12 Huicheng, Huizhou Residential 480,000 585,600 (3) Fact-finding investigation land Huizhou Heibei Village 13 Hebei, Huizhou Residential, commercial 190,654 185,853 (1) Graphic receipt Project Total 3,889,443 6,686,422

30 1 Project expected to be available in 2022

Estimated total Estimated value S.N. Project Location Type Development stage GFA(sq.m) (ten thousand yuan)）

(3) Collective asset transaction 1 Tunwei Dapeng, Shenzhen Residential, commercial 274,183 712,581 filing

Guangming, (3) Collective asset transaction 2 Gengzhu Park Plant, R&D land, commercial 614,838 1,030,318 Shenzhen filing

(3) Collective asset transaction 3 Shijing Longhua, Shenzhen Residential, commercial 306,078 1,401,835 filing

(3) Collective asset transaction 4 Songyuanwei Longhua, Shenzhen Residential, commercial 263,031 751,181 filing

Yushi New Village Land 5 Longhua, Shenzhen Residential, commercial, office 527,731 1,703,173 (5) Specific planning reporting Preparation Project

Dongguan Fenggang three- 6 Fenggang, Dongguan Residential, Industrial 303,912 527,953 (1) Renewal unit definition five lian village Project

Total 2,289,773 6,127,041

31 1 Five Advantages of Fantasia for Urban Renewal

As the pioneer of urban renewal, Fantasia has fully developed in Shenzhen and continued to expand urban renewal projects in the Greater Bay Area with five core advantages:

Having been in the Greater Bay Area for 20 years, Fantasia deeply understands the connotation of urban renewal, related policies and processes, Location and the local culture. It is good at dealing with the relationship of original land owners to get the trust and support of partners.

Fantasia has independently conducted the full process development of Experience various types of urban refresh projects and achieved complete business results. Therefore, it has rich practical experience.

Fantasia has a specialized urban renewal operation team and management Team system. The team with 150 members has strong ability.

After continuous deepening, Fantasia has built a relatively mature valuation system in urban renewal business. Profession By analysing the difficulty of urban renewal projects in different stages, the future value of the projects can be predicted accurately.

Fantasia actively explores the industrial real estate, and its own industrial Resource resources have formed a powerful industrial ecological circle, with diversified business synergy and resource integration capabilities.

32 2 Industrial Real Estate Strategy: Industrial Operation

Two-Wheel Drive to Industrial Promote Industry Cooperative Industrial Operation Development Upgrading by the Government

Hangzhou Wisdom Net Valley Town Huailai Shanggu Science City Jianyang Chili Town

Industrial partner: 360 Industrial partner: iSoftStone Industrial partner: Haishenglong

Land size: 78mu Land size: 3,500mu Land size: 18,000mu Other cities to be Chengdu, Wuhan, Other cities to be Shanghai, Chengdu and Other cities to be Tianjin landed: Shenzhen Dongguan, Nanjing, landed: landed: Hangzhou and Xi'an

33 产业服务战略：产业运营

Two-Wheel Drive to Industrial Promote Industry Industrial Cooperative Operation Development Upgrading by the Government

Cultural and Office Industrial Industrial Creative Building Incubator Accelerator Industrial Operation Park

Beijing CCTCenter Lenian Square, IC PARK, Pingshan Xingfuqihe, Project Longgang District, District, Shenzhen Chaoyang District, Beijing Jinhui Project Beijing Baihua Project Shenzhen Beijing Beijing IKEA Project Beijing Airport City Project Shanghai MIXC Project

34 3 Product Strategy

• According to the group's overall strategy, and in accordance with national policies and market demand, Fantasia Real Estate will strive to create products that "precisely meet customer needs” within three years of the transition period, and establish the product strategy of "focusing on customers, insisting on product quality, and creating good products with the temperament of Fantasia ". • In the future, the Real Estate Group will improve its product line, build a multi-type and multi-format product system, and develop products with full life cycle to meet customers’ lifelong needs • Philosophy of Fantasia SMART Products

S Sustainable 可持续性

M Maintainable 可维护性

A Academic 学术性

R Rational 理性

T Technical 技术性

35 Product Strategy (continued)

• Standardization: Improving operation efficiency with standardized management system; ensuring the quality of development products with standardized technical system; increasing the cross-regional rapid development capacity with the standardized product system. • Informatization: Using the informatization platform to implement standardized application, ensuring seamless synergy across regions and departments, realizing rapid application of product standards, and carrying out rapid upgrading and iteration according to policies and market environment. Integration of standardization and information to ensure the condition of final products.

Standardization Informatization (Guidance Center) (Platform Center)

Product library Realization: Standardization of Project library Information sharing 01 Product Management Search Part library Synergy across Knowledge library regions and Report center departments Supplier library Quick response to information Standardization of 标准应用平Collection and update 02 Product Technologies of information 台Big data analysis …… Standardization of 03 Stereotyped Products Product configuration Project configuration Use Collective purchase configuration Standardization of 04 Purchase System

36 4 Human Resource Strategy

T a l e n t B a c k g r o u n d S t r a t e g y P e r s o n n e l S t r a t e g y Silver industry Overtaking around the curve Aggressive Stock transfer Great change period Secondary entrepreneurship Transformation "Old" driver Selection and cultivation

Powerful

H a v i n g c l e a r Acting like Being strong Be accurate o b j e c t i v e s electricity a n d s o l i d a n d l i v e l y

Potential

Being rich in Subverting H a v i n g a Having a spirit connotation conventions unique style of innovation

Valuable

R e a l i z i n g M a k i n g A c h i e v i n g Being simple integration u s e r s e m p l o y e e a n d d o w n - to- and linkage s a t i s f i e d g r o w t h e a r t h 37 Human Resource Strategy (continued)

Human Resource Strategy: By means of stock transfer, transformation, selection and cultivation, reshaping employees’ external temperament and intrinsic value, consolidating cultural essence, enhancing organizational value, and building market-oriented survival and development ability in Fantasia

Stork Transfer: Individuals: Introducing new External players into the market temperament Intrinsic value Individuals Transformation: Transforming old Reshaping employees internally Organization: Selection and Cultural Cultivation: essence Organization Cultivating and Organizational shaping the youth value

① Smart, enterprising, ② keen, quick, accurate, hard-working, Reshaping Goals ③ honest, straight-forward, fearless, tough-looking ④ merchant (who can count), "to two decimal places" ⑤ aesthetic, detail-oriented, creative and with a product spirit

Magnanimous Straight-forward Enterprising Efficient

38 CREATING VALUE WITH ASPIRATIONS. VI Appendix Group structure

Fantasia Holdings Group Co., Limited (1777.HK) 55.35% 100.0%

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

100.0% 100.0% Tong Yuan Holdings Limited Fantasia Investment Holdings Company Limited

Offshore 100.0% 100.0%

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

As of June 30, 2019

41 Introduction to the General Process of Shenzhen Urban Renewal Project

Collective Urban renewal 1 2 Four 3 assets 4 Project Initiation of the 5 Solicitation of Declaration of Specific Planning Transaction wishes Meetings Planning Time filing Required 0.5 year 0.5 year 0.5 year 1.5 year 2 years Main Work To determine the subject declarer for To file the urban To solicit the rights of the old renewal project villagers' reform project, with with the intention to the consent of the To incorporate the old reformed regions To compile a special planning scheme for the old reform include their village board of collective asset into the government renewal unit plan, and properties in the directors, villager management obtain the government's approval for old regions, and determine the volume and volume ratio of the urban renewal shareholders' office of local reform in the regions project available for development project congress, village government board of supervisors and collective assets Core management Being familiar with competencies committee,. local collective asset Having a good Being familiar with local old reform and reputation among Obtaining local management Being familiar with local old reform and urban planning policies urban planning policies local villagers villagers' trust policies and support Implementatio 6 7 8 Signing of Land Housing Demolition Compensation n Subject Assignment Contract Confirmation Time Required 2 years 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 Good relationship with Good relationship and negotiation skills with local residents with the government the government and and familiarity with financial strength old reform policies

42 Introduction to the General Process of Huizhou Urban Renewal Project

Plotting and 1 2 Determination 3 4 Public 5 Preliminary review of draft 6 Compilation of Planning Design Storage in of renovation Groping selection of Conditions Notice or Planning for Database scope partner units implementation plan Renewal Units Time Required 0.5 year 0.5 year 0.5 year 0.5 year 1 year 1 year Main Work Mainly to investigate To select the The Agricultural Transformation the population, cooperative subjects For the control detailed planning regions collective To submit the Old Village Renewal subjects shall household registration, through public that have been compiled, the government organization shall Implementation Scheme (Draft) apply to town land, housing, bidding on the shall issue the Notice of Planning and make application, formulated by the project transformation (district) historical and cultural government's public Design Conditions for the land plot; for the and the implementation subjects according to the government for remains of the old platform, with the control detailed planning regions that have government shall plotting and villages to be consent of more basic data results of the preliminary work not been compiled, the government delimit the storage in transformed, and the than 2/3 of the to the urban renewal authority in the authority shall be responsible for compiling transformation database intention of villager district for preliminary review. the planning for renewal units scope Core transformation. representatives, competencies Being familiar with Being familiar with Obtaining local Obtaining local local old reform and local old reform and Being familiar with local old reform and Being familiar with local old reform and villagers' trust and villagers' trust urban planning urban planning urban planning policies urban planning policies policies policies support and support

7 Compilation of Implementation Scheme, and Public 8 9 Signing of Land Signing of Demolition Compensation Agre ement Voting for the Scheme Assignment Contract Time Required 1 year 1 year 0.5 year Main Work To pay land premium, The implementation scheme including the compensation and Demolition after signing a demolition compensation and sign a formal resettlement scheme for demolition shall be voted on in the village agreement land transfer contract with the government Core competencies Good relationship and negotiation skills with local Good relationship Good relationship and negotiation skills with local residents with the government residents and financial strength

43 Introduction to the General Process of Dongguan Urban Renewal Project

Consultation Compilation of 1 2 about the 3 4 Listing for 5 Renewal Unit a scheme for the intention of real Offer to acquire the real estate interests listing for investment by the Delimitation estate interest investment single subjects Time owners Required 1 year 0.5 year 0.5 year 0.5 year 2 years Main Work To clarify the specific work The Town People's To prepare a contents, fee settlement Government (Street public standards, settlement time Town People's Government Office) shall seek the solicitation points and settlement Street Office shall organize the renewal intention of To negotiate with villagers and owners about specific compensation scheme and methods of the service compilation of a renewal unit all real estate owners standards, and demolish after agreement signing organize providers, and introduce delimitation scheme within the scope of the renewal unit democratic partners publicly through demolition voting the collective asset management network. Core competencies Good relationship with the Obtaining local Obtaining local Good relationship with the government and familiarity villagers' trust villagers' trust government and familiarity Good relationship and negotiation skills with local residents with old reform policies and support and support with old reform policies

Determination 6 7 Implementation of Scheme 8 of the Closing Signing of Land Compilation and Reporting Assignment Contract Party Time Required 0.5 year 1 year 0.5 year Main Work

To an agreement to To pay land premium, To formulate the overall confirm the closing and sign a formal land implementation scheme of "1+N" transfer contract with party the government Core competencies Good relationship To be familiar with local old with the To be familiar with local reform policies government and old reform policies financial strength

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

Survey of Public selection Submission for approval Public Declaration of the transformation 1 2 3 and announcement of 4 selection of 5 6 Public Voting for Determination of transformati of upfront project planning scheme, and service transformation project enterprises of compilation of renewal unit Cooperative Enterprises on intention providers planning Time plan interest Required 0.5 year 0.5 year 1 year 0.5 year 1 year 1 year Main Work The planning scheme of the To solicit To undertake part or The town authority shall review To select no more The villagers shall vote on the optimal design transformation project of the villagers' all of the upfront and announce the transformation than 3 enterprises scheme and detailed compensation and work such as bidder with the best resettlement scheme of the enterprise with intention to scope, area, land use, with cooperative intention survey, implementation mode, planning comprehensive score among cooperative intention. include their mapping, feasibility intention in turn, scheme, compensation and the intended enterprises shall There is only one enterprise with cooperative properties in study assessment, according to the intention and the cooperative enterprise is social risk resettlement scheme, be declared to the township by the urban transformation timing sequence, comprehensive determined directly by voting; If there is more assessment, basic the collective economic than one enterprise, it will be eliminated by renewal data survey, scheme intention investigation materials, ability of the organization as the planning voting one by one. The demolition compensation project compilation, etc. voting results, etc. enterprises scheme of the project scheme involved shall be agreed by more than Core competencies 2/3 of the members of the collective economic Having a good Having a good Being familiar with local old Being familiar with Being familiar with local old organization (or the general assembly of the local old reform and members). Signing of Cooperation Agreement reputation among reputation among reform and urban planning reform and urban planning urban planning local villagers local villagers policies policies policies Good relationship and negotiation skills Determination of 7 8 Signing of the Demolition 9 Compilation of project 10 Procedures for with local residents qualification of applying for the the Compensation Agreeme nt transformation scheme, transfer of land implementation voting and approval by agreement Time subject Required 0.5 year 1 year 1 year 0.5 year Main Work To obtain government To compile the the project project transformation confirmation as the subject of To negotiate with villagers and owners To pay land premium, transformationscheme, which shall scheme, be voted which on by and sign a formal land project implementation about specific compensation standards, transfer contract with and demolish after agreement signing shallcollective be votedeconomic on byorganizations collective and economicapproved by organizations the government the government Core competencies Good relationship and negotiation Good relationship and negotiation Good relationship Good relationship with the government with the government skills with local residents skills with local residents and financial strength and familiarity with old reform policies

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

Carrying out Compilation of transformation 1 2 Public selection3 Formulation of transformation 4 5 Development of and voting on 6 Public selection investigation on of upfront project plan, formulation of the project plan, submission for project design scheme and transformation service of cooperative approval and announcement compensation and resettlement intention providers public trading scheme enterprises Time scheme, 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 entrust cooperative enterprises To solicit To undertake part or The town authority shall review relevant service institutions, according to the basic According to the approved transformation all of the previous and announce the transformation through public resource villagers' data such as the scope, area, land and housing of unit planning, the collective economic trading centers shall be not work such as scope, area, land use, the proposed transformation land, and the planning organization shall entrust the relevant intention to intention survey, less than 30 days after include their implementation mode, planning situation of the proposed transformation land, service organization to formulate the public announcement mapping, feasibility scheme, compensation and organize the formulation of the planning of the project design scheme, and set the open study assessment, (qualification requirements properties in resettlement scheme, reconstruction project, the simultaneous trading conditions, cooperation agreement social risk shall be met, and the the urban transformation timing sequence, formulation of the compensation and resettlement and other plans according to the contract signing rate for and renewal assessment, basic scheme, examination and approval of the towns, procedure around the quality strength, data survey, related intention investigation materials, demolition compensation project voting results, etc. voting by at least 2/3 of the members of the development experience, responsibility and resettlement within 12 scheme compilation, village collective economic organizations (or ability, construction cycle and benefit etc. months shall be more than members' congresses) for agreement. division of the market subject to be 80%) Core competencies selected.

Success of highest- price-offer

Determination of 7 8 9 Compilation of project 10 Signing of qualification of Signing of the Demolition Land the transformation scheme and Compensation Agreement Assignment implementation approval Contract Time subject Required 0.5 year 1 year 1 year 0.5 year Main Work To obtain The demolition contract rate after negotiating Formulation by the project transformation To pay land scheme by the implementation body , voting government compensation standard with villagers and premium, and sign a confirmation as the by the collective economic organization, owners shall be at least over 80%; otherwise, formal land transfer subject of project consent by 2/3 above the members of the contract with the implementation subject of cooperation will be disqualified collective economic organization (or the government general meeting of the members) and Core competencies approval by the municipal government Good relationship with Good relationship and negotiation skills with Good relationship and negotiation skills Good relationship the government and with the government local residents with local residents familiarity with old and financial strength reform policies

46 Introduction to the General Process of Fushan Urban Renewal Project (Refer to Nanhai Region)

Applicatio n for adjustments Voting of the Public selection of and 1 Determination 2 3 4 Declaration of urban 5 6 Compilation of Planning for of renovation about intention of voting on the cooperative renewal unit plan Urban Renewal Units scope plotting and renewal subjects Time storage in Required 0.5 year database0.5 year 0.5 year 0.5 year 1 year 1 year Main Work

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

Core competencies Being familiar with Being familiar with Obtaining local Being familiar with local old local old reform Obtaining local villagers' trust and Being familiar with local old reform and villagers' trust and reform and urban planning local old reform and and urban planning support urban planning policies urban planning policies support policies policies Signing of 7 Compilation of project 8 9 Land implementation scheme and Signing of Demolition and Assignment voting Resettlement Agreement Contract Time Required 1 year 1 year 0.5 year

Main Work To pay land To implement Scheme with To negotiate with villagers and owners about specific premium, and sign a Remove Compensation compensation standards, and demolish after agreement formal land transfer Settlement Scheme signing contract with the government Core competencies Good relationship Building good relationship Good relationship and negotiation skills with local with the with local villagers residents government and financial strength

47 Introduction to the General Process of Guangzhou Urban Renewal Project

Village Collective Renewal Public Selection 1 Application for 2 3 Collection of 4 Include Urban Renewal 5 6 Preparation and review of the implementation Plotting and Scope intention to of Cooperative Annual Plan plan Storage in Determination transform Enterprises Time Database Required 0.5 year 0.5 year 0.5 year 0.5 year 0.5 year 1 year Main Work The district Rational The district government shall direct the village District Renewal To solicit government shall determination of collective to compile the project implementation Institution directs villagers' To incorporate the old reformed check the basic data, renewal scope scheme, solve all opinions and improves the plan, and village collective intention to regions d into the government and after the basic by the guidance then report to the city renewal bureau. The city renewal applications to be include their renewal unit plan, and obtain the data is published, of Regional bureau shall take the lead to review the relevant matters included in properties in the government's approval for old the village collective Government to and feed back to the district government. The district plotting and urban renewal reform in the regions shall introduce the the Village government shall direct the village collective to revise storage in database project cooperative Collective the scheme according to the feedback, and then form the enterprises publicly. Core scheme voting draft. competencies Being familiar Being familiar Having a good Obtaining local with local old Being familiar with local old Being familiar with local old reform and urban planning with local old reputation among villagers' trust and reform and urban reform and urban planning policies policies reform and urban planning policies local villagers support planning policies Implementati Signing of 7 8 9 Land on Scheme Demolition Negotiations Assignment Voting Contract Time Required 0.5 year 2 years 0.5 year Main Work Passing of the To pay land implementation To negotiate with villagers and owners about specific premium, and sign a scheme by the compensation standards, and demolish after agreement formal land transfer voting of village signing contract with the representatives government Core competencies Building good Good relationship with relationship with Good relationship and negotiation skills with local residents the government and local villagers financial strength

48