Like several other mainland property firms that listed in Hong Kong last year, the performance of Fantasia Holdings Group has been less than stellar. The company's shares have fallen more than 25 per cent since its initial public offering in November. But the developer remains confident of its future growth. Fantasia plans to invest heavily in several projects during the second half of this year. 'The total investment cost has not been finalised, but it will be more than the cash we have,' chairman Pan Jun said. The company has HK$3.9 billion cash on hand. Pan said Fantasia was in talks to invest in more than 10 projects, but that would likely be narrowed down to five, in three mainland cities where the company has not yet established a presence. 'Beijing, Kunming, Guangzhou and Shanghai are the cities we are considering,' he said. According to a Deutsche Bank report, the company has signed preliminary framework agreements to develop projects in Chengdu, Beijing and Yunnan with a total gross floor area of about five million square metres. 'We had promised investors that we would invest in core cities, and we will keep our promise,' Pan said. He said the company would see improved results that should bolster the disappointing performance of its share price. Fantasia, incorporated in Shenzhen in 1996, currently has 29 property projects in seven cities, mostly boutique upscale residences and urban complexes. 'We hope to be a comprehensive developer with residential projects to sustain cash flow, and hotels, and quality office and retail space to improve recurrent income,' Pan said, outlining Fantasia's strategy. The company has 100,000 square metres of office space, which it hopes to increase to 500,000 sq metres in three years. This year, the company will open four boutique hotels, and it aims to increase the number to 15 in three years. Pan did not reveal the financing arrangements for Fantasia's expansion plans but said the company was in talks with four insurance companies about co-operating with or investing in the company. The stock closed at HK$1.63 yesterday, down 25.23 per cent from its initial offering price of HK$2.18.