In 2019, the total revenue of Fineland Real Estate Services Group Limited increased 12% YoY to approximately RMB 256.3 million

(24 March 2020, Hong Kong) Fineland Real Estate Services Group Limited ("Fineland Real Estate Services" or the "Group", ) (Stock Code: 08376), a leading integrated real estate services provider in China, is pleased to announce the results for the twelve-month period ended on 31 December 2019 (the "Reporting Period"). The Group's performance was excellent, where total revenue amounted to approximately RMB256.3 million yuan, representing a year-on-year growth of approximately 12.0%. The increase was primarily attributable to the expansion of real estate agency services, especially online property referral and agency business in terms of covered business areas and numbers of business partners.

In 2019, the Chinese central government aimed to reduce volatility and published regulatory policies targeting stable land prices, stable property prices, and stable price expectations. The credit level was also gradually tightened, and overall, the real estate market was stable. Nationwide, transaction volume reached a total of approximately RMB15,973 billion, which represented a year-on-year growth of 6.5%, with Guangdong's commodity housing market showing rather strong resilience during the year. The Group, as an integrated real estate services provider operating under Fineland Group, one of the top 100 real estate enterprises in China, will continue to grasp market opportunities and focus on stable, healthy and sustainable development.

Continue Expanding Real Estate Agency Business and Online Property Referral and Agency Services in the Primary Market

Real estate agency services is the largest business segment of the Group, with such services being provided across the primary market, secondary market and online. The real estate agency service turnover increased by approximately 12.6% year on year to approximately RMB252.9 million for the year ended 31 December 2019. Revenue generated from real estate agency services accounted for 98.7% of the total revenue of the Group.

For primary market real estate agency services, the Group has been actively building up relationships with primary property developers. The Group provided agency services for 229 projects for the year ended 31 December 2019. The Group's business in the primary real estate market has expanded to cover seven out of the nine cities of the Greater Bay Area in Guangdong, and the Group has also entered Guilin market in Guangxi Province as of 31 December 2019. In the foreseeable future, the Group will further explore opportunities in other cities of the Greater Bay Area and outside Guangdong Province, with an aim to seize and grab more market share in those areas.

For online property referral and agency services, the Group has leveraged its non-traditional capabilities in providing such services through the Online Referral Platform, which has established stable cooperation relationships with a number of prestigious China Real Estate Top 100 Enterprises, and undertaken projects covering most cities of the Greater Bay Area and other cities in Guangdong. Revenue recorded from online property referral and agency services increased to approximately RMB126.4 million for the year ended 31 December 2019. The number of projects utilising the platform increased to 56 for 2019, representing an increase of approximately 51.4% compared to last year.

Continue Developing Integrated Services Business

The Group continues to expand its integrated services business segment, which refers to the wide range of value-added services provided to customers including property developers, individual customers and companies. These include the Group's Zhaoshangyi offering, which assists property developers with primary market development projects that have commercial units to identify and to approach prospective lessees. The Group also offers the One-stop Service Centre where a variety of value-added services such as rent collection, property repair and maintenance, and design and furnishing are provided to purchasers. Revenue generated from Integrated Services for the year ended 31 December 2019 substantially increased by 73.3% to approximately RMB2.0 million compared to last year. For the year ended 31 December 2019, revenue generated from Zhaoshangyi amounted to approximately RMB0.7 million, representing an increase of approximately 80.0% year on year, and revenue generated from the One-stop Service Centre services was approximately RMB1.2 million, representing an increase of approximately 68.5% year on year.

Diversification of Customer Base and Expansion of Market Coverage

The Group has a well-established network and business relationships with a diversified client base of property developers. With its strong influential brand, the Group has won praise and recognition from property developers. The ratio of the Group's independent customers increased to 85.4% for the year ended 31 December 2019. The Group expects to further upgrade its services and continue marketing to other customers who are independent third parties to further diversify the client base, and the proportion of independent customers is expected to increase going forward. At the same time, the Group's market coverage has expanded further in 2019 to seven out of nine cities in the Greater Bay Area, including Guangzhou, Foshan, Jiangmen, Huizhou, Zhaoqing, Zhongshan and Zhuhai. While strengthening its position in the existing market, the Group will strive to expand into new markets.

In 2020, in the face of the outbreak of COVID-19, the real estate market will continue to adjust, market competition will continue to intensify, and opportunities and challenges will continue to coexist for the industry. With sophisticated industry experience in the agency services business, the Group will actively respond to market changes, maintain its market share in the existing areas, and accelerate improvement of its market share of the primary and secondary property agency businesses. The Group will continue to offer professional real estate agency services while integrating social media promotions, offline resources and its Online Referral Platform to improve conversion rate for real estate developers and agents with whom it cooperates. The Group will endeavor to improve profitability, maintain steady development of the business, and continue to create greater value for the company's shareholders.

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About Fineland Real Estate Services Group Limited

Fineland Real Estate Services Group Limited (stock code: 08376.hk) is an integrated real estate service provider under Fineland Group, one of the top 100 real estate enterprises in China，and was successfully listed on the Hong Kong Stock Exchange on November 15, 2017. Fineland Real Estate Services Group Limited is one of the few listed real estate agents company with a background in real estate development. It owns four major brands, including Fineland Real Estate Consultant, Fineland Asset Management, Fang Yuan Bao and Hai Yuan Bao,  focusing on primary real estate agency services and professional planning consultancy services, secondary real estate transactions and business investment operation management, channel resources integration and one-stop integrated services.