Fantasia Holdings Group Co. Ltd. · HKEX:1777
Fantasia — FY2019 Earnings Presentation
52 slides from Fantasia's earnings presentation, March 2020
Slide 1: Slide 1
Slide 2: Fantasia Holdings Group 2019 Results Presentation
Fantasia Holdings Group Co., Limited 2019 Results Presentation March 2020
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 Part I: Results Highlights Part II: Metamorphosis 1) Excellent Results 2) Stable Financials 3) Emphasized Investment 4) Efficient Operation 5) New Look Part III: Achievements Appendix
Slide 5: Part I Results Highlights
Part I Results Highlights
Slide 6: 2019 Results Highlights
2019 Results Highlights Community Service and Contracted Sales Total Revenue Other Income RMB 36.21 Bn RMB 19.08 Bn RMB 5.86 Bn up 20.0% YoY up 36.4% YoY Provides stable cash flow Gross Margin Net Profit Net Gearing Ratio 28.0% RMB 1.5 Bn 73.5% Maintains a good level up 28.6% YoY Sound financial pos
Slide 7: Part 2 Metamorphosis
Part 2 Metamorphosis
Slide 8: 1) Excellent Results
1) Excellent Results
Slide 9: Steady Increase in Contracted Sales
Steady Increase in Contracted Sales Breakdown of Contracted Sales in 2019 by Region (1) Contracted sales of RMB36.21Bn, Central China Bohai Rim up 20.0% YoY Metropolitan Area Metropolitan Area RMB1.457Bn RMB6.7Bn Contracted area of 3.208 MM m2, up 18.9% YoY 4.0% of total 18.5% of total Sales and Ind
Slide 10: Steady Increase in Revenue and Earnings
Steady Increase in Revenue and Earnings Total Revenue Gross Margin RMB MM % 19,082 13,986 30.9% 32.3% 29.6% 29.9% 10,921 9,783 8,164 28.0% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Gross Profit Net Profit RMB MM RMB MM 5,337 1,502 1,403 1,409 4,184 1,168 3,528 1,064 2,898 2,519 2015 2016 201
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) • 54.6% YoY increase compared to 2018 • 7.8% YoY increase compared to 2018 • 69.3% of total revenue • 30.7% of total revenue • Becomes the "power source" of futu
Slide 12: 2) Stable Financials
2) Stable Financials
Slide 13: Solid Financials with Positive Rating Actions
Solid Financials with Positive Rating Actions RMB MM 2018 2019 Bank balances and cash 28,570 23,044 Total debt 43,624 38,173 Net assets 19,455 21,592 Net debt / net assets 77.4% 73.5% Net Debt / Net Assets Total Contracted Sales / Total Debt % % 94.9% 83.0% 76.0% 77.4% 73.5% 67.4% 69.2% 55.4% 2016 2
Slide 14: Improved Debt Maturity Profile
Improved Debt Maturity Profile Improved Debt In 2019, Fantasia greatly improved its debt maturity profile through active liability management Maturity Short-term debt decreased from 33.1% of total debt by end of 2018 to 30.1% by end of 2019 Profile Onshore and Offshore Liability Management Since
Slide 15: Declining Financing Costs
Declining Financing Costs Financing Cost Financing cost decreased from 15% at the end of 2018 to 10.875% at the beginning of 2020 of Offshore and effectively extended the tenor of the offshore issuances Bonds Dropped Through effective liability management and company’s fundamental improvement, t
Slide 16: Optimizing Debt Structure
Optimizing Debt Structure Debt Structure by Currency Debt Structure by Type % % 0.4% 1.5% 14.0% 15.2% 20.5% 29.9% 39.2% 38.0% 38.1% 47.3% 19.7% 21.7% 24.0% 13.6% 22.5% 15.2% 13.7% 60.8% 62.0% 61.9% 52.3% 55.0% 47.9% 43.8% 41.8% 2016 2017 2018 2019 2016 2017 2018 2019 (1) RMB USD HKD Offshore bonds O
Slide 17: 3) Emphasized Investment
3) Emphasized Investment
Slide 18: Taking Root in Strategic Cities by Increasing the Land Bank
Taking Root in Strategic Cities by Increasing the Land Bank • Since 2019, the Group has continued to expand its strategic presence in major metropolitan areas. As of the end of Mar 2020, the Group has newly added 13 new plots of land, a total GFA of 2.35MM m2, and a saleable inventory value of RMB30
Slide 19: Abundant Land Bank to Support Future Growth
Abundant Land Bank to Support Future Growth • As of Dec 31, 2019, the planned land bank GFA of the Group was 36.87MM m2, including 16.63MM m2 of confirmed GFA, 0.7MM m2 of newly acquired plots not yet included in the land bank, and 19.54MM m2 of urban renewal projects expected to be converted into l
Slide 20: Urban Renewal Strategy: Rooted in the High-potential Greater Bay Area
Urban Renewal Strategy: Rooted in the High-potential Greater Bay Area • The Group has 46 urban renewal projects under different stages of development in the Greater Bay Area, most of which are located in Shenzhen, and also covered areas across Huizhou, Dongguan, Zhongshan, Foshan and Guangzhou. The
Slide 21: 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 all the downtown districts, namely Futian, Nanshan, Luohu and Yantian • The planned GFA is ~7.32MM m2, accounting for ~37% of the total planned GFA of all urban renewal projec
Slide 22: Urban Renewable Project Converted in 2019
Urban Renewable Project Converted in 2019 Pingshan Good Times Phase I (World Plastic Factory Phase I Project) RMB40k /m2 1-3. Solicitation of opinions on urban 18 renewal, convening of four meetings, months and filing of collective asset Gross margin is expected to Total GFA 335,071 m2 transactions
Slide 23: Strategic Partnership in 2019
Strategic Partnership in 2019 Longhua Yushi New Village Project Total GFA 527,731 m2 Pre-transaction Ownership Structure Post-transaction Ownership Structure Yushi New Village, Yucui Location Partner A subsidiary Partner Community, Longhua District A subsidiary A subsidiary Yushi of Ping An Yushi of
Slide 24: Plan for Delivery of Urban Renewal Projects from 2020 to 2022
Plan for Delivery(1) of Urban Renewal Projects from 2020 to 2022 • It is expected that 17 urban renewal projects will be converted into development land in the next 3 years, with a total GFA of ~4.12MM m2 and a total inventory value of ~RMB118.6bn • 16 projects are located in Shenzhen, and 1 in Huiz
Slide 25: Projects Expected to be Delivered in 2020
Projects Expected to be Delivered in 2020 Name Futian Meilin Yuehua Project Pingshan World Plastic Factory Phase II Name Project At the intersection of Caitian Road and Beihuan Road, which is the north gateway to Futian CBD At the southwest of the intersection of Dongzong Location Location and a sta
Slide 26: Projects Expected to be Delivered in 2021
Projects Expected to be Delivered in 2021 Estimated Total Estimated GFA No. Project Location Type Inventory Value Development Stage ('0,000 m2) (RMB'00MM) (5) Application for special 1 Bailihong Project Dapeng, Shenzhen Residential 8 19 planning Residential, commercial & (5) Application for special
Slide 27: Projects Expected to be Delivered in 2022
Projects Expected to be Delivered in 2022 Estimated Total Estimated GFA No. Project Location Type Inventory Value Development Stage ('0,000 m2) (RMB'00MM) (5) Application for special 1 Wangniugang Project Pingshan, Shenzhen Residential & commercial 36 115 planning Caopu Qingshuihe New (5) Applicatio
Slide 28: Six Advantages of Fantasia in Urban Renewal
Six Advantages of Fantasia in Urban Renewal As a pioneer in urban renewal, Fantasia has built up six advantages by developing urban renewal projects in the Guangdong- Hong Kong-Macao Greater Bay Area, especially in Shenzhen: With 21 years of development in the Greater Bay Area, Fantasia has deep ins
Slide 29: 4) Efficient Operation
4）Efficient Operation
Slide 30: Operational Enhancement
Operational Enhancement • Through the measures of refined process and efficient operation, the Group has achieved quality improvement & efficiency and quality growth. The ratio of sales and management expenses to revenue and contracted sales has decreased significantly • During the reporting period,
Slide 31: Product Upgrade: Joyful, Delicate, Elegant
Product Upgrade • Fantasia upholds the mission to provide customers with "joyful, delicate and elegant living space and experience" and develops humanized products. During the year, the Company continued to develop and improve its three product lines—"joyful", "delicate" and "elegant" series, which
Slide 32: Strong Alliance
Strong Alliance Comprehensive cooperation in land acquisition, project development, brand promotion, product marketing, etc. Wuhan Endless Blue Wuhan Hanzheng Street Shenzhen Good Times Project Project Project Build a foundation for nationwide cooperation by Comprehensive cooperation in proper
Slide 33: Commercial Prosperity
Commercial Prosperity In 2019, Fantasia's commercial projects Chengdu Hong Tang, Nanjing Xinian OMG Mall, and Suzhou Taicang Zmata Mall opened for business, making its "Three Tangs Plus One World" commercial property brand ecosystem more mature Chengdu Hong Tang Nanjing Xinian OMG Mall Suzhou Taican
Slide 34: Community Uplift
Community Uplift Growing Platform Service Area MM M2 1,211 1,122 900 770 Colorful Life Ecosystem Platform Service Area 36.41MM 322 1.211Bn m2 registered users 2015 2016 2017 2018 2019 Introduced JD.com and 360 as strategic investors to seek Launched offline activities including the iconic East B
Slide 35: 5) New Look
5) New Look
Slide 36: Team Transformation
Team Transformation By means of change, transformation, selection and training, we focus on training employees via strengthening the cultural essence, enhancing the organizational value, and building up the market-oriented survival and development ability Background Strategy Talent Team Building Sil
Slide 37: Team Building
Team Building Newly Introduced and Appointed Management in 2019 Name Position Work Background Ke, Kasheng Executive Director of Fantasia (1777.HK) CBRC, China Huarong Executive Director of Fantasia (1777.HK) Zhang, Huiming CITIC Real Estate, Agile Executive Director and COO of Fantasia Real Estate G
Slide 38: Part 3 Achievements
Part 3 Achievements
Slide 39: Ready to Surge Ahead
Ready to Surge Ahead Fantasia is ready to surge ahead • Land: A land bank of 36.87MM m2, 50%+ of which is located in the Greater Bay Area • Talents: The Company's founder Ms. Zeng serves as CEO of the Real Estate Group; the Company gathers the top 10 companies’ talents in the industry who are experi
Slide 40: Asset-heavy and Light, Focus on Principal Business
Future Development Strategies Asset-heavy and Light Real Estate Focus on Principal Business Community Development Service Creator and Leader of Real Estate+ Community+ China's Largest O2O Smart Communities Community Service Platform Asset-heavy Asset-light Leader of "joyful", "delicate" and "elegant
Slide 41: The 2020 Battle Against COVID-19
The 2020 Battle Against COVID-19 Sales: "Everyone Can be a Construction: Steady Resumption of Community: Highly Recognized by the Homeowner" Scheme Work Government and Homeowners • Launched the online marketing center on Jan 31 to • Closely coordinated with the construction units, • Fantasia's Color
Slide 42: 2020 Strategy: Surging
2020 Strategy: Surging Operational Strategy: Fast Investment Strategy: Focused 1） Run fast in small steps to enhance sales turnover 1） Build presence in high-potential cities in 2） Fast construction to complete land acquisition 5 major conurbations and property sales in the same year 2） Invest 70% c
Slide 43: Appendix
Appendix
Slide 44: Group structure
Group structure Fantasia Holdings Group Co., Limited (1777.HK) 51.69% 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 45: General Process of Shenzhen Urban Renewal Project
Introduction to the General Process of Shenzhen Urban Renewal Project 1 2 3 4 5 Urban Collective Convening Renewal Assets Project Approval & The Four Specific Planning Application Intention Transaction Initiation Meetings Collection Filing Time Required 0.5 year 0.5 year 0.5 year 1.5 year 2 year Mai
Slide 46: General Process of Huizhou Urban Renewal Project
Introduction to the General Process of Huizhou Urban Renewal Project 1 2 3 4 5 6 Compilation of Determination Plotting and Public Preliminary review of Planning Design of Conditions Notice or Storage in Groping selection of draft implementation renovation Planning for Renewal Database partner units
Slide 47: General Process of Dongguan Urban Renewal Project
Introduction to the General Process of Dongguan Urban Renewal Project 1 2 Consultation 3 4 5 Compilation of a Listing for Renewal Unit about scheme for the investment by the intention Offer to acquire the real estate interests Delimitation of real estate listing for the single interest owners invest
Slide 48: 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 3 Submission for 4 5 Declaration of the 6 Public Public Voting for Survey of Public selection approval and transformation project announcement of selection of planning
Slide 49: 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) 1 2 3 4 Compilation of 5 6 Carrying out Formulation of Development of and Public Public selection transformation project investigation transformation project plan, formulation
Slide 50: General Process of Foshan Urban Renewal Project
Introduction to the General Process of Fushan Urban Renewal Project (Refer to Nanhai Region) 1 2 3 4 5 6 Determination Plotting and Voting of the Declaration of Public selection of and Compilation of of renovation storage in intention of urban renewal voting on the Planning for Urban scope database
Slide 51: 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 Public Collection of Include Urban Preparation and review Application for Renewal Scope Selection of intention to Renewal of the implementation Plotting and Determination Cooperative transform Annua
Slide 52: Creating Value with Aspirations
46 FF fil ie HT (EL CREATING VALUE WITH ASPIRATIONS.
Fantasia Holdings Group — FY2019 Earnings Presentation on 6ix