Fantasia Holdings Group Co. Ltd. · HKEX:1777
Fantasia — H1 2019 Earnings Presentation
48 slides from Fantasia's earnings presentation, August 2019
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Slide 2: Fantasia Holdings Group 2019 Interim Results Presentation
Fantasia Holdings Group Co., Ltd. 2019 Interim Results Presentation August 2019
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
I. Performance Highlights in the First Half of 2019 Contents 05-06 II. Stabilize Finance 07-12 III. Focus on Operation 13-17 IV. Focus on Investment 18-23 V. Future Strategies 24-39 VI. Appendix 40-48
Slide 5: Performance Highlights in the First Half of 2019
I Performance Highlights in the First Half of 2019
Slide 6: Performance Highlights in the First Half of 2019
Performance Highlights in the First Half of 2019 Community services and Contracted sales Total revenue other revenue 13.17 billion yuan 8.58 billion yuan 2.85 billion yuan 16.5% YoY increase 65.1% YoY increase Provides stable cash flow Gross profit margin Net profit Net gearing ratio 29.6% 244 milli
Slide 7: Stabilize Finance
II Stabilize Finance
Slide 8: Steady increase in revenue and earnings
Steady increase in revenue and earnings TOTAL REVENUE GROSS PROFIT MARGIN MILLION YUAN % 13,986 10,921 9,783 32.3% 29.9% 8,577 29.6% 29.6% 5,196 25.4% 2016 2017 2018 1H2018 1H2019 2016 2017 2018 1H2018 1H2019 GROSS PROFIT NET PROFIT MILLION YUAN MILLION YUAN 1,410 4,184 1,168 3,528 1,064 2,898 2,537
Slide 9: Simultaneous Advancement of Dual Head "Real Estate + Community"
Simultaneous Advancement of Dual Head “Real Estate + Community” Revenue from property sales Community services and other revenue(1) • 123.6% YoY growth in the first half of 2019 • 8.1% YoY growth in the first half of 2019 • Accounts for 66.8% of total revenue • Accounts for 33.2% of total revenue •
Slide 10: Soundness and Optimization of Financial Situation
Soundness and Optimization of Financial Situation Million yuan 2018 1H2019 Bank balance and cash 28,570 25,064 Total borrowing 43,624 40,547 Net assets 19,455 19,485 Net debts/Net assets 77.4% 79.5% NET DEBTS/NET ASSETS DEBT CURRENCY STRUCTURE DEBT CHANNEL STRUCTURE % % % 0.3% 1.5% 83.0% 79.5% 14.0%
Slide 11: Effective improvement in debt management
Effective improvement in debt management BONDS MANAGEMENT BEHAVIOURS SINCE 2019 Issued RMB800 million of domestic company bonds and repaid RMB310 million private 5-YEAR DOLLAR NATIONAL BOND RATE (%) bonds Issued additional Redeemed $300 Repurchased $100 million notes million notes Issued RMB1 billio
Slide 12: Stabilize finance by means of "1 strength & 3 controls"
Stabilize finance by means of “1 strength & 3 controls” • Collaborate on marketing, set goals & adjust strategies • Track daily, assess monthly & strengthen incentives • Communicate with banks, implement quotas & carry out approval Strength in • Place emphasis on revitalization, control and manage p
Slide 13: Focus on Operation
III Focus on Operation
Slide 14: Steady Increase in Contract Sales
Steady Increase in Contract Sales GEOGRAPHICAL DISTRIBUTION OF CONTRACTED SALES IN THE FIRST HALF OF 2019 Central China Bohai Rim Metropolitan area Metropolitan Area 13,170 million yuan 0.777 2.22 Contracted sales 16.5% YoY increase billion yuan billion yuan Residential products 81.5% Significantly
Slide 15: Colour life ecosystem improves continuously
Colour life ecosystem improves continuously Platform service area Ecosystem of Colour Life Online platform Cumulative 32 million registered transaction amount of About 1.206 billion activity users Caizhiyun Platform sq.m 51.3% 5.547 billion yuan CONTINUOUS GROWTH OF PLATFORM SERVICE AREA JD AND 360
Slide 16: Strategy of Enhancing Operation: Quality and Efficiency Improvement
Strategy of Enhancing Operation: Quality and Efficiency Improvement Quality and Efficiency Improvement Achieving Quality Growth High Efficiency of Information Process Refinement Operation Platformization Speed and Result Orientation Overall Planning Efficiency Increase Enhancement of Enhancement of
Slide 17: Improving the Group's Operation Ability from Four Aspects
Improving the Group's Operation Ability from Four Aspects Organization High Efficiency of Information Process Refinement Flattening Operation Platformization • Implementing the three-layer • Managing profit and cash flow • With financial management as the • In the future, the upgrading of informatiz
Slide 18: Focus on Investment
IV Focus on investment
Slide 19: Focusing on strategic cities, expanding strategic cooperation
Focusing on strategic cities, expanding strategic cooperation • Since 2019, the Group continued to expand its strategic depth around the metropolitan area and focused on key areas. The Group has added a new land block in Zhangjiakou and Tianjin respectively. The total construction area of interests
Slide 20: Rich land reserve supports future development
Rich land reserve supports future development • As of June 30, 2019, the Group planned a total of nearly 33.20 million sq.m of land reserves, including 16.72 million sq.m of urban renewal projects expected to convert to land reserves in the future. • Among the planed land reserves in the five Metrop
Slide 21: Investment Three Attributes
Strategy of emphasizing investment: adjusting layout and structure, and emphasizing investment quality Profitability Initiatives of emphasizing investment in 2019: Adjusting Emphasizing structure quality Investment Liquidity • Clarifying urban Layout • Focusing on Three • Optimizing investment the f
Slide 22: Strategy of Emphasizing Investment: Structural Adjustment
Strategy of Emphasizing Investment: Structural Adjustment 1. Clarifying Urban Distribution In Combination with the Development Strategy and Development Level of National Urban Agglomeration, Making Urban Layout with the "5+N" Investment Strategy • 5 (Strategic Core Area): Beijing-Tianjin-Hebei+Yangt
Slide 23: Strategy of Emphasizing Investment: Emphasizing Quality
Strategy of Emphasizing Investment: Emphasizing Quality Emphasizing quality Focusing on the front end Controlling the middle end Following up the back end Standardizing the investment decision-making Strengthening the post-investment Strengthening urban research process management • Cities entered:
Slide 24: Future Strategies
Vv Future Strategies
Slide 25: Urban Renewal Strategy: Focusing on the Greater Bay Area
Urban Renewal Strategy:Focusing on the Greater Bay Area to 1 Create the Master of Renewal The Group has 39 urban renewal projects in the Greater Bay Area which are under different stages and most of which are located in Shenzhen. The group has deployed projects in Huizhou, Dongguan, Zhongshan, Fosha
Slide 26: Shenzhen's Advantages in Urban City Renewal
1 Shenzhen’s Advantages in Urban City Renewal • 22 projects over Shenzhen • Enter core areas such as Luohu District, Futian District, Nanshan District, etc. • The GFA of planned land reserve area was 5.86 million sq.m and accounts for nearly 35% of the total land reserve area of the urban renewal pr
Slide 27: Successful Case of Urban Renewal Project - Pingshan World Plastics Factory Phase I
Successful Case of Urban Renewal Project - Pingshan 1 World Plastics Factory Phase I 40,000/ 1-3 City renewal intention Total building sq.m collection, convening four 18 328,541 sq.m area meetings, collective asset months Located in the southwest of transaction filing Expected gross margin 17 the in
Slide 28: Land Supply Plan for Urban Renewal Projects from 2020 to 2022
1 Land Supply (1)Plan for Urban Renewal Projects from 2020 to 2022 • 20 urban renewal projects is expected to be converted into development land in the next 3 years. It is estimated that the total construction area of the land supply will be about 6.31 million square meters, and the total value of t
Slide 29: Project expected to be available in 2020
1 Project expected to be available in 2020 Name Futian Meilin Yuehua Located at the intersection of Caitian Road and Beihuan Road, north portal of Futian CBD, Location the junction of Ziling station of metro Line 9 and Meilindong station of metro Line 10 Type Industrial housing, commercial Estimated
Slide 30: Project expected to be available in 2021
1 Project expected to be available in 2021 Estimated total Estimated value S.N. Project Location Type Development stage GFA(sq.m) (ten thousand yuan)） Pingshan World Plastics (6) Housing demolition 1 Pingshan, Shenzhen Residential, commercial 220,620 579,412 Factory Phase II compensation Xinghua fiv
Slide 31: Project expected to be available in 2022
1 Project expected to be available in 2022 Estimated total Estimated value S.N. Project Location Type Development stage GFA(sq.m) (ten thousand yuan)） (3) Collective asset transaction 1 Tunwei Dapeng, Shenzhen Residential, commercial 274,183 712,581 filing Guangming, (3) Collective asset transaction
Slide 32: Five Advantages of Fantasia for Urban Renewal
1 Five Advantages of Fantasia for Urban Renewal As the pioneer of urban renewal, Fantasia has fully developed in Shenzhen and continued to expand urban renewal projects in the Greater Bay Area with five core advantages: Having been in the Greater Bay Area for 20 years, Fantasia deeply understands th
Slide 33: Industrial Real Estate Strategy: Industrial Operation
2 Industrial Real Estate Strategy: Industrial Operation Two-Wheel Drive to Industrial Cooperative Promote Industry Industrial Operation Development Upgrading by the Government Hangzhou Wisdom Net Valley Town Huailai Shanggu Science City Jianyang Chili Town Industrial partner: 360 Industrial partner:
Slide 34: Two-Wheel Drive to Promote Industry Upgrading by the Government
产业服务战略：产业运营 Two-Wheel Drive to Industrial Cooperative Promote Industry Industrial Operation Development Upgrading by the Government Cultural and Office Industrial Industrial Creative Building Incubator Accelerator Industrial Operation Park Beijing CCTCenter Lenian Square, IC PARK, Pingshan Xingfuqih
Slide 35: Product Strategy: Philosophy of Fantasia SMART Products
3 Product Strategy • According to the group's overall strategy, and in accordance with national policies and market demand, Fantasia Real Estate will strive to create products that "precisely meet customer needs” within three years of the transition period, and establish the product strategy of "foc
Slide 36: Product Strategy (continued)
Product Strategy (continued) • Standardization: Improving operation efficiency with standardized management system; ensuring the quality of development products with standardized technical system; increasing the cross-regional rapid development capacity with the standardized product system. • Inform
Slide 37: Human Resource Strategy
4 Human Resource Strategy Talent Background Strategy Personnel Strategy Silver industry Overtaking around the curve Aggressive Stock transfer Secondary entrepreneurship Transformation Great change period "Old" driver Selection and cultivation Powerful Having clear Acting like Being strong Be accurat
Slide 38: Human Resource Strategy (continued)
Human Resource Strategy (continued) Human Resource Strategy: By means of stock transfer, transformation, selection and cultivation, reshaping employees’ external temperament and intrinsic value, consolidating cultural essence, enhancing organizational value, and building market-oriented survival and
Slide 39: Creating Value with Aspirations.
CREATING VALUE WITH ASPIRATIONS.
Slide 40: Appendix
VI Appendix
Slide 41: Group structure
Group structure Fantasia Holdings Group Co., Limited (1777.HK) 55.35% 100.0% Colour Life Services Group Co., Limited Fantastic Victory Limited (1778.HK) 100.0% 100.0% Tong Yuan Holdings Limited Fantasia Investment Holdings Company Limited Offshore 100.0% 100.0% Onshore Shenzhen Colour Life Service G
Slide 42: Introduction to the General Process of Shenzhen Urban Renewal Project
Introduction to the General Process of Shenzhen Urban Renewal Project Collective 1 Urban renewal 2 Four 3 assets 4 Project Initiation of the 5 Solicitation of Transaction Declaration of Specific Planning wishes Meetings Planning Time filing Required 0.5 year 0.5 year 0.5 year 1.5 year 2 years Main W
Slide 43: Introduction to the General Process of Huizhou Urban Renewal Project
Introduction to the General Process of Huizhou Urban Renewal Project 1 Plotting and 2 Determination 3 4 Public 5 6 Compilation of Planning Design Storage in Preliminary review of draft of renovation Groping selection of Conditions Notice or Planning for Database scope partner units implementation pl
Slide 44: Introduction to the General Process of Dongguan Urban Renewal Project
Introduction to the General Process of Dongguan Urban Renewal Project Consultation Compilation of 1 Renewal Unit 2 about the 3 a scheme for the 4 Listing for 5 intention of real listing for investment by the Offer to acquire the real estate interests Delimitation estate interest investment single su
Slide 45: 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) Survey of Public selection Submission for approval Public Declaration of the transformation 1 2 of upfront 3 and announcement of 4 selection of 5 project planning scheme,
Slide 46: General Process of Zhongshan Urban Renewal Project (Scenario 2)
Introduction to the General Process of Zhongshan Urban Renewal Project (Scenario 2: Later Selected Cooperative Enterprises) Carrying out Public selection Compilation of transformation Public selection 1 investigation on 2 of upfront 3 Formulation of transformation 4 project plan, formulation of the
Slide 47: General Process of Fushan Urban Renewal Project
Introduction to the General Process of Fushan Urban Renewal Project (Refer to Nanhai Region) Applicatio n for 1 Determination 2 adjustments 3 Voting of the 4 Declaration of urban 5 Public selection of and 6 Compilation of Planning for of renovation about intention of voting on the cooperative Urban
Slide 48: General Process of Guangzhou Urban Renewal Project
Introduction to the General Process of Guangzhou Urban Renewal Project Village Collective 1 Application for 2 Renewal 3 Collection of 4 Include Urban Renewal 5 Public Selection 6 Preparation and review of the implementation Plotting and Scope intention to of Cooperative Storage in transform Annual P
Fantasia Holdings Group — H1 2019 Earnings Presentation on 6ix