Fantasia Holdings Group Co. Ltd. · HKEX:1777
Fantasia — H1 2021 Earnings Presentation
55 slides from Fantasia's earnings presentation, Aug 26, 2021
Slide 1: it HE A
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Slide 2: 2021 Interim Results Presentation
Fantasia Holdings Group Co., Limited 2021 Interim Results Presentation 26 August 2021
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. Land Bank and Urban Renewal Projects II. Results Review IV. Community Service Strategy 1) Robust Operating Results V. Fantasia’s responsibility 2) Sound Financial Position VI. Outlook 3) Targeted Investments 4) Efficient Operations 4
Slide 5: Part 1: Results Highlights
Part 1 Results Highlights
Slide 6: 2021 Interim Results Highlights
2021 Interim Results Highlights Contracted Sales Total Revenue Property Development Revenue RMB 28.12 Bn RMB 10.95 Bn RMB 8.37 Bn up 60.6% YoY up 18.5% YoY up 26.3% YoY Net Profit Attributable to Net Profit Net Gearing Ratio Owners of the Company RMB 303 MM RMB 153 MM 74.8% up 9.5% YoY up 58.7% YoY
Slide 7: Part 2: Results Review
Part 2 Results Review
Slide 8: Robust Operating Results
1 Robust Operating Results
Slide 9: Steady Increase in Contracted Sales
Steady Increase in Contracted Sales Breakdown of Contracted Sales in 2021 1H by Region 2021 1H Contracted sales of RMB 28.12Bn Central China Bohai Rim up 60.6% YoY Metropolitan Area Metropolitan Area RMB 1.45Bn RMB 4.80Bn 2021 1H Contracted area of 1.74 MM m2 up 28.2% YoY 5.2% of total 17.1% of tota
Slide 10: Steady Increase in Revenue and Earnings
Steady Increase in Revenue and Earnings Total Revenue Gross Margin RMB MM % 21,759 19,082 13,986 29.9% 28.0% 10,952 24.6% 9,241 20.8% 2018 2019 2020 1H2020 1H2021 2018 2019 2020 1H 2021 Net Profit Net Profit Attributable to Owners of the Company RMB MM RMB MM 1,751 977 1,502 874 1,168 728 277 303 15
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) • 76.5% of total revenue • 23.5% of total revenue • Increase of 26.3% year over year, becoming the catalyst of • Becomes the "stabilizer" of cash inflow future in
Slide 12: Sound Financial Position
2 Sound Financial Position
Slide 13: Solid Financials
Solid Financials RMB MM 2017 2018 2019 2020 1H 2021 Bank balances and cash 16,442 28,570 23,044 28,631 31,583 Total debt 29,896 43,624 38,173 46,865 51,488 Net assets 17,698 19,455 20,592 24,323 26,615 Net debt / net assets 76.0% 77.4% 73.5% 75.0% 74.8% Net Debt / Net Assets Debt Structure by Maturi
Slide 14: Optimizing Debt Structuring
Optimizing Debt Structuring • In the first half of 2021, Fantasia proactively optimised its financial structure and made significant breakthroughs in obtaining credit facilities from domestic and overseas banks, broadening its financing channels • A number of domestic development projects were grant
Slide 15: Active Liability Management
Active Liability Management The Board and the management paid great attention to such phenomenon, and proactively conducted communication with the investors and implemented a series of debt management measures, such as carrying out repurchases and making offers to repurchase in secondary markets R
Slide 16: Targeted Investments
3 Targeted Investments
Slide 17: Seizing Market Opportunities to Effectively Expand Land Bank
Seizing Market Opportunities to Effectively Expand Land Bank • Since 2021, in order to cope with new changes brought by the policy of centralised land supply, the Group has implemented specific measures for targeted land acquisition to effectively replenish inventories • In the first half of the yea
Slide 18: Focusing on Five Major Areas in Building up new Land Bank
Focusing on Five Major Areas with Notable Achievements in Building up new Land Bank Since 2019, the Group has acquired 32 parcels of land in total, achieving notable results in building up new land bank Expand its vertical strategic move in all five major metropolitan areas, with Areas prioritised
Slide 19: Adapting to Policy Changes and Achieving Targeted Land Acquisition
Adapting to Policy Changes and Achieving Targeted Land Acquisition from Multiple Resources Strategy II: Urban renewal – acquisition of quality lands in the Strategy I: Public auction and merger & acquisition - targeted acquisition of high-turnover projects Greater Bay Area • Consolidation: Continue
Slide 20: Efficient Operations
4: Efficient Operations
Slide 21: Accelerating Project Development to Achieve High Turnover
Accelerating Project Development to Achieve High Turnover • Operational efficiency was significantly accelerated during the period through strict schedule control on project development, as a result of which, the cycle from land acquisition to launch of project is expected to be shortened to 7.1 mon
Slide 22: Enhancing Marketing Capability
Enhancing Marketing Capability: Refined Management and Accelerated Sales Proceeds Collection Sales process: Adjust marketing strategy in a flexible manner due to the outbreak of the pandemic 1 Formulate sale strategy and incentives policy to accelerate sales proceeds collection Conducting promotion
Slide 23: Improving Product Quality: Joyful-Tasteful-Meaningful Product Lines
Improving Product Quality: Outstanding Projects under the “Joyful-Tasteful- Meaningful” Product Lines The new product lines (i.e. “joyful”, “tasteful” and “meaningful”) of Fantasia focused on the lifestyle concept and space demand of various customers rather than the traditional rigid demand and imp
Slide 24: Strengthening Brand Recognition
Strengthening Brand Recognition: Promotion of Brand Concept Supported with Targeted Marketing Efforts • Initiating a second startup while staying true to its original aspiration: hold fast to our brand concept and corporate vision of “being interesting, tasteful and resourceful”, and adopt a long-te
Slide 25: Part 3: Land Bank and Urban Renewal Projects
Part 3 Land Bank and Urban Renewal Projects
Slide 26: Abundant Land Bank to Support Future Growth
Abundant Land Bank to Support Future Growth • As of 30 June 2021, the planned land bank GFA of the Group was 38.43 MM m2 including: • 17.49 MM m2 of confirmed GFA where the land bank is concentrated in five major metropolitan areas of China, with first- and second-tier cities accounting for over 90%
Slide 27: Policy Support for Urban Renewal Projects by Local Governments
Policy Support for Urban Renewal Projects by Local Governments • Key cities in the Greater Bay Area have introduced a number of policies since the beginning of the year, while Shenzhen, Guangzhou and Dongguan stepped up efforts in urban renewal • In particular, Shenzhen promulgated the Regulation on
Slide 28: Rooted in the High-potential Greater Bay Area
Rooted in the High-potential Greater Bay Area • The Group has 50 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 Dongguan, Huizhou, Foshan, Guangzhou, and Foshan • Estimated to have a planned GF
Slide 29: Well positioned in Urban Renewal Projects in Shenzhen
Well positioned in Urban Renewal Projects in Shenzhen • The 27 projects cover virtually all districts of Shenzhen, including the planned GFA of ~7.28MM m 2, accounting for ~35% of the total planned GFA of all urban renewal projects The inventory value is estimated to be ~RMB212.1Bn, accounting for ~
Slide 30: Well positioned in Urban Renewal Projects in Dongguan
Well positioned in Urban Renewal Projects in Dongguan • There are 12 major projects currently under development in Dongguan, the majority of which are located in areas in the vicinity of Shenzhen and in downtown Dongguan, boasting strong geographical advantages. • Urban renewal in Dongguan requires
Slide 31: Core Projects Expected to be Delivered
Core Projects Expected to be Delivered Estimated Salable GFA Estimated Saleable Value No. Projects Location Current Stage (m2) (RMB MM) Projects Delivered in 2019 1 Pingshan World Plastic Factory Phase I Pingshan, Shenzhen 142,681 575,764 Completed Projects Delivered in 2020 1 Meilin Yuehua Projects
Slide 32: Advantages of Fantasia in Urban Renewal
Advantages of Fantasia in Urban Renewal As a pioneer in urban renewal, Fantasia has focused 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 i
Slide 33: Part 4: Community Service Strategy
Part 4 Community Service Strategy
Slide 34: Building up Strengths to Unleash Potential
Building up Strengths to Unleash Potential At present, housing construction and development in tier 1 cities has become saturated, while community service industry in tier 2, 3 & 4 cities is still in highly fragmented stage, which is a vast "blue ocean" for Color Life who is good at low-cost competi
Slide 35: Making Breakthroughs In Multiple Aspects To Sustain Growth
Making Breakthroughs In Multiple Aspects To Sustain Growth Quality improvement Scale expansion Facility improvement : continue to promote Increase revenue from existing projects: the commencement of quality explore the development potential of existing improvement projects projects to promote re
Slide 36: Part 5: Fantasia's responsibility
Part 5 Fantasia’s responsibility
Slide 37: Fantasia Creates Values
Fantasia Creates Values • Upholding its brand concept “Fantasia creates values”, Fantasia aims to incorporate the sustainable development philosophy into its strategic corporate development, under which, Fantasia will reach balance among environment, society and economy, while pursuing business deve
Slide 38: Education Welfare
Education Welfare • Fantasia have initiated the Shenzhen Fantasia Charity Foundation since 2013. With “Enjoy the Public Welfare” as its core concept, the charity foundation focuses on areas including education welfare, elderly care welfare and art welfare • Since 2006, Fantasia has made donations to
Slide 39: Elderly Care Welfare
Elderly Care Welfare • Fantasia attaches great importance to the elderly and poverty alleviation projects. Since 2018, it has joined hands with the Government of Gaoping Town, Suichuan County, Ji’an City, Jiangxi Province to launch projects in Gaoping Town. The projects include exploration of featur
Slide 40: Art Welfare
Art Welfare • Fantasia built an art museum at the foot of Laojun Mountain in Chengdu, known as Zhi Art Museum and designed by Kengo Kuma, an international acclaimed architect • Through cooperation with domestic and international artists each year, the museum explores the subject of “art and technolo
Slide 41: Part 6: Outlook
Part 6 Outlook
Slide 42: Fantasia Create Value
Fantasia Create Value Task priority in 2019: Task priority in 2020: Task priority in 2020: Task priority in 2021: Talents Land reserve Products Capital Structure • Continue to introduce outstanding talents of • Expand its vertical strategic move in the five • Fantasia introduced new product lines (i
Slide 43: 2021 Development Strategy
2021 Development Strategy 1 Closely monitor market development to seize cyclical opportunities 1 Enhance the development of operations 2 Extend business presence across core cities system with a focus on planned Conduct “targeted Implement “efficient management approach with a focus on high-value se
Slide 44: Appendix
Appendix
Slide 45: 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 46: 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 47: 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 48: 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 49: 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 50: 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 51: 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 52: 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 53: 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 54: 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
Slide 55: Creating Value with Aspirations
ty 46 FE ill ta HT (A CREATING VALUE WITH ASPIRATIONS. 8
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