Carnival Group International Announces Profit Alert

Results of Carnival Group International for 2017 is expected to increase by 8 times, bringing strong momentum for new development of the Group in 2018

Following the announcement of the positive profit alert in relation to the growth of results by 8 times in 13 March, Carnival Group International Holdings Limited (“Carnival Group International” or the “Company”; stock code: 996.HK, together with its subsidiaries the “Group” collectively) is pleased to announce the appointment of Wu Yanqi as the chief executive officer and executive director of the Company and the appointment of Li Jing as the executive director of the Company in charge of the property business development division.

Having extensive experience in the financial field, Wu Yanqi had served various senior positions in Industrial and Commercial Bank of China and China Merchants Bank for 25 years. He was once ordered to establish the property finance department during the system reform of the Shenzhen branch of China Merchants Bank in 2016. The professional and highly-efficient team he built placed a focus in property financing. The team has secured the high ground in the system of China Merchants Bank within just a year and had gained wide reputation in the Shenzhen market. Meanwhile, Wu Yanqi was deeply involved in the design of the whole process of the first supply chain ABS business for a property enterprise in the domestic capital market, organized and established the property trust distribution project with the largest transaction amount in the system of China Merchants Bank and arranged financing for various property projects. Thus, he has extensive theoretical and practical experience in property finance. As financialization of tourism property becomes more imminent, Carnival Group International appointed Wu Yanqi as the chief executive officer of the Company as it wished to take advantage of his extensive experience and practical execution capability in property and finance.

The newly appointed executive director Li Jing has over 20 years of experience in property enterprises. He has worked for various well-known companies such as Sunac China and China Fortune. He has profound experience in whole process including strategic development, planning and design, acquisition of land, mergers and acquisition, development management as well as supervision and execution. He had taken charge of large-scaled material projects for several times, achieving outstanding performance. Li Jing joined Carnival Group International in September 2017. He is currently appointed as the executive director, responsible for property business development division.

Talking about tourism consumption property and the future development of Carnival Group International, Wu Yanqi considered that as the country would facilitate upgrade in consumption, the property industry must also move with the times. The core competitiveness of the property industry will undoubtedly be shifted from competing for land resources to equipping with excellent comprehensive operation capability, professional service quality and multi-channel finance capital operation. The domestic tourism consumption property is in line with the trend and future of big consumption and big health of China, and thus have a bright future. Wu Yanqi indicated that his decision to join Carnival Group International was made after due consideration. He was clearly aware of Carnival Group International beforehand. He chose to join Carnival Group International due to the unique positioning of the Company in tourism consumption property and his recognition for the Company. Wu Yanqi is confident to the future development of the Company and hopes that Carnival Group International can take root and develop tourism consumption property projects in the first-tier cities and costal developed cities in China in the next three to five years. He also wishes to place a focus on developing the property development projects with sufficient cash flow and strong profitability in those cities and developed countries so as to promote mutual advancement and synergistic development of tourism consumption property and property development projects in an effort to create better return for shareholders and investors.

In light of finance, Wu Yanqi considered that taking office in the Company would make the property finance characteristics of Carnival Group International more prominent but he also mentioned that finance was only a method to draw on and would not become the major business. For example, the Company will make more attempts in breaking through the capital market channels for the assets it holds, especially the asset securitization of tourism consumption property and will carry out more exploration in using finance to help build elderly apartments and long-term apartments. In the future, adhering to the customer-oriented approach and with a focus on cash flow management, Carnival Group International will consolidate the organizational structure and resources, enhance control capability of headquarters and strengthen strategic plan for operation, budget formulation and execution, debt ratio management and control, investment project selection, human resources appraisal and stimulation and internal compliance management, with a view to persistently creating values and achieving quality and rapid development.

King Pak Fu, the chairman and executive director of Carnival Group International indicated, “the appointment of Wu Yanqi as the chief executive officer and executive officer and appointment of Li Jing as the executive director are a critical move for Carnival Group International to accomplish future development strategy. Mr. Wu Yanqi has years of experience in finance and particularly has strong capability in using finance to support property development. Thus, he is our important choice in promoting the strategies of “property upgrade” and “property with contents”. Mr. Li Jing has profound practical experience in the property industry and is able to accurately facilitate the launch and implementation of projects. It is believed that the appointments will give strong supports to the Company in achieving more prosperous and healthy development. ”