Fantasia Holdings Group Co. Ltd. · HKEX:1777
Fantasia — FY2020 Earnings Presentation
60 slides from Fantasia's earnings presentation, March 2021
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Slide 2: 2020 Annual Results Presentation
Fantasia Holdings Group Co., Limited 2020 Annual Results Presentation March 2021 2
Slide 3: Disclaimer
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 inform
Slide 4: Contents
Contents I. Results Highlights III. Human Resources Strategy II. Results Review IV. Lank Bank and Urban Renewal Projects 1) Robust Operating Results V. Community Service Strategy 2) Sound Financial Position VI. Outlook 3) Targeted Investments Appendix 4) Efficient Operations 4
Slide 5: Part 1: Results Highlights
Part 1 Results Highlights 5
Slide 6: 2020 Results Highlights
2020 Results Highlights Contracted Sales Total Revenue Property Development Revenue RMB 49.21 Bn RMB 21.76 Bn RMB 16.44 Bn up 35.9% YoY up 14.0% YoY up 24.3% YoY Net Profit Attributable to Net Profit Net Gearing Ratio Owners of the Company RMB 1.75 Bn RMB 977 MM 75.0% up 16.6% YoY up 11.9% YoY Sound
Slide 7: Part 2: Results Review
Part 2 Results Review 7
Slide 8: Robust Operating Results
1 Robust Operating Results 8
Slide 9: Steady Increase in Contracted Sales
Steady Increase in Contracted Sales Breakdown of Contracted Sales in 2020 by Region 2020 Contracted sales of RMB 49.21 Bn Central China Bohai Rim up 35.9% YoY Metropolitan Area Metropolitan Area RMB 6.65 Bn RMB 5.99 Bn 2020 Contracted area of 3.34 MM m2 up 4.3% YoY 13.5% of total 12.2% of total Sale
Slide 10: Steady Increase in Revenue and Earnings
Steady Increase in Revenue and Earnings Total Revenue Gross Margin RMB MM % 21,759 19,082 32.3% 13,986 29.6% 29.9% 28.0% 24.6% 10,921 9,783 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Net Profit Net Profit Attributable to Owners of the Company RMB MM RMB MM 1,751 1,154 1,502 1,409 977 1,168 87
Slide 11: Simultaneous Advancement of Property Development + Community Service
Simultaneous Advancement of “Property Development + Community Service” Property Development Revenue Community Service and Other Income(1) • 75.6% of total revenue • 24.4% of total revenue • Increase of 24.3% year over year, becoming the catalyst of • Becomes the "stabilizer" of cash inflow future in
Slide 12: Sound Financial Position
2 Sound Financial Position 12
Slide 13: Solid Financials with Positive Ratings
Solid Financials with Positive Ratings RMB MM 2016 2017 2018 2019 2020 Bank balances and cash 11,134 16,442 28,570 23,044 28,631 Total debt 22,022 29,896 43,624 38,173 46,865 Net assets 13,121 17,698 19,455 20,592 24,323 Net debt / net assets 83.0% 76.0% 77.4% 73.5% 75.0% Net Debt / Net Assets Debt
Slide 14: Decrease in Financing Costs
Decrease in Financing Costs Financing costs Through effective bond management, the yield rate at the secondary market has dropped to a low level, significantly of offshore bonds outperforming the market decreased The Group has successfully issued several offshore USD bonds, while financing costs
Slide 15: Optimizing Debt Structure
Optimizing Debt Structure Debt Structure by Currency Debt Structure by Type % % 0.4% 0.9% 1.2% 14.0% 10.8% 15.3% 15.2% 20.5% 37.9% 13.5% 19.7% 53.4% 54.4% 21.7% 61.6% 61.9% 29.7% 14.0% 24.0% 22.5% 15.2% 13.7% 61.2% 61.7% 53.8% 47.0% 45.2% 47.9% 43.8% 41.8% 38.4% 38.1% 2016 2017 2018 2019 2020 2016 2
Slide 16: Targeted Investments
3 Targeted Investments 16
Slide 17: Seizing Market Opportunities to Increase Land Bank
Seizing Market Opportunities to Increase Land Bank • In 2020, the Group replenished its land bank by seizing market opportunities arising from the overall economic and industry environment in the first half of the year • Throughout 2020, the Group added 20 new plots of land with a total GFA of appro
Slide 18: Taking Root in Strategic Cities with Targeted Land Bank
Taking Root in Strategic Cities with Targeted Land Bank • Continue to expand strategic presence in the five major metropolitan areas • Extend its business presence to new strategic cities including Foshan, Shaoxing, Nantong, Yangzhou, Zhengzhou and Chongqing • Acquire land plots mainly through publi
Slide 19: Enhancing Strategic Partnerships to Achieve Competitive Advantages
Enhancing Strategic Partnerships to Achieve Competitive Advantages • Enhance cooperation with outstanding peers to form strong alliances and achieve competitive advantages: Cooperate with state-owned enterprises: learn from their extensive operational and management experience and take advantage o
Slide 20: Efficient Operations
4 Efficient Operations 20
Slide 21: Establishing a Goal-oriented and Efficient Integrated Operations Mechanism
Establishing a Goal-oriented and Efficient Integrated Operations Mechanism • Establish an integrated operations mechanism to improve “cashflow + profit” • Establish an operations system based on a planned-management Focus on approach “cashflow + profit” • Establish integrated operations method of “p
Slide 22: Expedite Project Development to Accelerate Project Turnover
Expedite Project Development to Accelerate Project Turnover • During the period, operational efficiency was significantly improved by enhancing schedule control of projects, with the cycle from land acquisition to launch of project shortened to 7.4 months during the year • The majority of projects a
Slide 23: Enhance Operational Efficiency to Reduce Costs
Enhance Operational Efficiency to Reduce Costs • Through enhanced operational efficiency, the Group improved product quality, enhanced efficiency and boosted scalability, leading to a reduction in ratio of sales and management expenses to revenue and contracted sales • Through measures such as procu
Slide 24: Enhancing Marketing Capability: Refine Management and Effective Incentives
Enhancing Marketing Capability: Refine Management and Effective Incentives Implement multi-dimension appraisal and incentive system Improve marketing management and assessment 1 system: Make prompt adjustments to the structure of the marketing Bi-monthly performance appraisal organization to accommo
Slide 25: Improve Product Quality: Increase Product Premium
Improve Product Quality: Increase Product Premium • Upholding the concept of “technology harmony”, the Group aims to provide customers with joyful, tasteful and meaningful living spaces and experiences Management Customer Product research Design Product support research and development management ma
Slide 26: Creating Joyful, Tasteful, and Meaningful Living Spaces
Product Enhancement: Creating Joyful, Tasteful, and Meaningful Living Spaces and Experiences • Fantasia is committed to becoming a leader in providing joyful, tasteful and meaningful living spaces and experiences, and aims to deliver unique and inspiring offerings to value-oriented customers Joyful
Slide 27: Launch the Product Lines of Joyful-Tasteful-Meaningful Series
Launch the Product Lines of Joyful-Tasteful-Meaningful Series Tasteful • Shaoxing Chunfengshili • In 2020, the product center has finalized a number of quality programs with Fantasia’s distinctive product characteristics based on the product concept of “Joyful, Tasteful and Meaningful” • Signature p
Slide 28: Brand Strategy: Fearless – Inclusive, Outstanding, Attractive
Brand Strategy: Fearless – Inclusive, Outstanding, Attractive • Brand team of Fantasia for 2020: with the founder acting as the general manager of the brand center, the team mainly consists of post-90s young elites. The team is responsible for the establishment and implementation of projects, and pa
Slide 29: Establish Diversified Promotion Matrix to Improve Brand Reputation
Establish Diversified Promotion Matrix to Improve Brand Reputation • During the period, Fantasia continued to promote its brand concept and brand proposition of “joyful, tasteful and meaningful” through the Internet and other diverse ways, and explored a new concept of product marketing and promotio
Slide 30: Arts Exhibitions and Projects of Fantasia in 2020
Arts Exhibitions and Projects of Fantasia in 2020 • UNKNOWN solo exhibition by Yin Xiuzhen in Fantasia ·Zhi Art Museum, Chengdu • KALEIDOSCOPE art project by Liu Zhenchen in Fantasia ·CIFI ·Good Times, Shenzhen • ARISTAE solo exhibition by Ju Anqi in Fantasia ·Self Life, Shenzhen • YING solo exhibit
Slide 31: Fantasia's Brand Promotion Content in 2020
Fantasia’s Brand Promotion Content in 2020 Fantasia’s official WeChat account- Zhenbao Art Foundation Column Fantasia’s holiday poster designs Zhenbao Art Foundation & Zhi Art Museum activities “Mining” and “Mao Ning”, highlights urban life, dining and fun 31
Slide 32: Part 3: Human Resources Strategy
Part 3 Human Resources Strategy 32
Slide 33: Human Resources Achievements in 2020
Human Resources Achievements in 2020 Fantasia continued to introduce outstanding talent in 2020 • Fantasia continues to attract new talent, with over 90% of employees integrated into teams • Optimizing organizational structure with an emphasis on strengthening core functions such as operations, mark
Slide 34: Human Resources Achievements in 2020 (Continued)
Human Resources Achievements in 2020 (Continued) Training enhancement for team value guidance and implementation of incentive system to promote better performance • Focus on internal trainings and development: the Group has perfected the training curricula to ensure the effective circulation of inte
Slide 35: Strategy and Outlook for Human Resources in 2021
Strategy and Outlook for Human Resources in 2021 • 2019: Recruited new talent to launch secondary start-up businesses and secured an industry leading position • 2020: Built up a strong workforce to enhance service quality and accelerate business expansion Utilizing advanced information systems to im
Slide 36: Part 4: Land Bank and Urban Renewal Projects
Part 4 Land Bank and Urban Renewal Projects 36
Slide 37: Abundant Land Bank to Support Future Growth
Abundant Land Bank to Support Future Growth • As of 31 December 2020, the planned land bank GFA of the Group was 37.60 MM 𝑚2 , including 17.13 MM 𝑚2 of confirmed GFA, and 20.47 MM 𝑚2 of urban renewal projects expected to be converted into land bank in the future • The land bank is concentrated…
Slide 38: Rooted in the High-potential Greater Bay Area
Rooted in the High-potential Greater Bay Area • The Group has 48 urban renewal projects under various 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. • Estimated to have a planned
Slide 39: Urban Renewal Projects Successfully Delivered
Urban Renewal Projects Successfully Delivered (1) 2019 2020 Pingshan World Plastic Factory Phase I Name Futian Meilin Yuehua Project Name Phase I (Haoshiguang Project) At the intersection of Caitian Road and Beihuan Road, which is the north gateway to Futian At the southwest of the intersection of D
Slide 40: Successful Urban Renewal Projects Through Cooperation with Strategic Investors
Successful Urban Renewal Projects Through Cooperation with Strategic Investors 2019 2020 Name Longhua Yushi New Village Project Name Kuichong Big & Small Projects Yushi New Village, Yucui Community, Longhua Location Location Dapeng, Shenzhen District Type Residential & Commercial Type Residential &
Slide 41: Core Projects Expected to be Delivered in 2021-2022
Core Projects Expected to be Delivered in 2021-2022 Pingshan World Plastic Factory Name Name Longhua Yushi New Village Name Huizhou Xinguang Village Phase II Location Pingshan New District, Shenzhen Location Longhua Shenzhen Location Ruhu, Huizhou Type Residential & Commercial Type Residential & Com
Slide 42: Advantages of Fantasia in Urban Renewal
Advantages of Fantasia in Urban Renewal As a pioneer in urban renewal, Fantasia has focussed on urban renewal projects in the Guangdong-Hong Kong-Macao Greater Bay Area, especially in Shenzhen, cultivating six core advantages: • With 22 years of development in the Greater Bay Area, Fantasia has deep
Slide 43: Part 5: Community Service Strategy
Part 5 Community Service Strategy
Slide 44: Recognized for Outstanding Anti-Pandemic Measures
Recognized for Outstanding Anti-Pandemic Measures Fantasia’s property management companies, Colour Life and Home E&E, are on the front-line of pandemic control in our community and have been praised by the government as well as homeowners for their remarkable results. We would like to extend our hea
Slide 45: Colour Life is Well-positioned for Business Growth with Leading Advantages
Colour Life is Well-positioned for Business Growth with Leading Advantages Size advantage 1 Colour life is a leader in scale, serving over 10 million homeowners Workforce advantage 2 We have a team of over 50,000 employees with extensive experience and good track record Market-oriented and operation
Slide 46: Ready for Extreme Growth
Ready for Extreme Growth Strategy for extreme growth Focused on customer satisfaction, Leverage on favorable policy and industry leading advantages, Scale growth in both revenues and 2020 satisfaction, and foster a caring community centered around humanity and technology Honing internal skills Enlar
Slide 47: Part 6: Outlook
Part 6 Outlook
Slide 48: 2021 Development Strategy
2021 Development Strategy Implement “efficient operation” 1) Enhance the development of operations system with a focus on planned management approach 2) Enhance operational efficiency to improve profit margin and cash flow 3) Implement reward and penalty system to promote organizational vitality 1)
Slide 49: Appendix
Appendix 49
Slide 50: Group Structure
Group Structure Fantasia Holdings Group Co., Limited (1777.HK) 51.98% 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 G
Slide 51: Expedition of Shenzhen Urban Renewal Policy
Expedition 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 years, w
Slide 52: The Importance of Shenzhen Special Economic Zone Urban Renewal Regulations
The Importance of “Shenzhen Special Economic Zone Urban Renewal Regulations” • The “Shenzhen Special Economic Zone Urban Renewal Regulations” were implemented on 1 March 2021 to promote the development of Shenzhen’s urban renewal and bring benefits to urban renewal projects Implement stringent regul
Slide 53: General Process of Shenzhen Urban Renewal Project
Introduction to the General Process of Shenzhen Urban Renewal Project 1 2 3 Collective 4 5 Urban Renewal Convening the Assets Intention Project Approval & Initiation Specific Planning Application Four Meetings Transaction Collection Filing Time required 0.5 year 0.5 year 0.5 year 1.5 year 2 years Ma
Slide 54: General Process of Huizhou Urban Renewal Project
Introduction to the General Process of Huizhou Urban Renewal Project 1 2 3 4 5 6 Plotting and Determination of Public selection of Preliminary review of Compilation of Planning Design Conditions Storage in Database Due Diligence renovation scope partner units draft implementation plan Notice or Plan
Slide 55: General Process of Dongguan Urban Renewal Project
Introduction to the General Process of Dongguan Urban Renewal Project 1 2 3 Willingness 4 5 6 Public Draft public Upgrade objectives of local consultation selection of tendering Attracting Partners Acquisition contracts real estate owner units with real estate early partners process owners Time Requ
Slide 56: General Process of Zhongshan Urban Renewal Project (Scenario 1)
Introduction to the General Process of Zhongshan Urban Renewal Project (Scenario 1: Previously Selected Cooperative Enterprises) 1 2 Public selection 3 4 5 6 Survey of Submission for approval and Public selection Declaration of the transformation of upfront Public Voting for Determination of Coopera
Slide 57: General Process of Zhongshan Urban Renewal Project (Scenario 2)
Introduction to the General Process of Zhongshan Urban Renewal Project (Scenario 2: Cooperative Enterprises Selected at Later Stage) 1 Carrying out 2 Public 3 4 Compilation of 5 6 Formulation of investigation selection of transformation project plan, Development of and voting Public selection transf
Slide 58: General Process of Foshan Urban Renewal Project
Introduction to the General Process of Foshan Urban Renewal Project (Refer to Nanhai Region) 1 2 3 4 5 6 Determination Plotting and Voting of the Declaration of urban renewal Public selection of and voting on Compilation of Planning for Urban of renovation storage in intention of renewal unit plan t
Slide 59: General Process of Guangzhou Urban Renewal Project
Introduction to the General Process of Guangzhou Urban Renewal Project 1 Village 2 3 4 5 6 Collective Renewal Collection Public Application Scope of intention Include Urban Renewal Selection of Preparation and review of the implementation plan for Plotting Determinati to Annual Plan Cooperative and
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Fantasia Holdings Group — FY2020 Earnings Presentation on 6ix