Fantasia Holdings Group Co., Limited
Fantasia is striving for progress while maintaining stability.Income increased greatly by 43.0% with approximately RMB 14 billion
[FOR IMMEDIATE RELEASE] ANNOUNCEMENT OF 2018 ANNUAL RESULTS Financial and operation highlights: – Steady growth in operating results; core net profit(1) increased substantially by 135% – The Group’s total revenue reached RMB 13.986 billion, representing an increase of 43% compared with RMB 9.783 billion in 2017. – The Group’s core net profit (the profit excluding the impact of exchange gains and losses) reached RMB1,909 million, representing a sharp increase of 135%, year-on-year. The Group’s capability of making profits is improving. – The Group’s gross profit margin was 30%, improved slightly compared with that of 2017 and maintained a relatively high level in the industry. – Basic earnings per share was RMB 0.13. The Board proposed the payment of a final dividend of HK 4 cents per share. Note (1) the profit excluding the impact of exchange gains and losses – Contract sales surpassed RBM 30 billion; the on-going and newly-added areas reached a record high – The contract sales for the year of 2018 reached RMB 30.173 billion, representing an increase of 50% year-on-year. – During the reporting period, the floor area of newly-launched projects was 4.63 million sq.m., while the floor are of projects under construction was about 5.94 million sq.m., representing an increase of 106% and 103% respectively. The saleable products were adequate. – In Guangdong-Hongkong-Macao Greater Bay Area, the Group has 39 projects with the land bank of 9 million sq.m., including 24 urban renewal projects covering traditional key areas such as Futian, Luohu and Nanshan. – Sufficient cash flow; stable capital structure and debt level – The Group has sufficient cash flow. At the end of 2018, the Group’s bank balances and cash were approximately RMB 28.57 billion. – The net gearing ratio was 77.4% at the end of 2018, down by 5.5% compared with the 82.9% in the middle of 2018. The financial condition was stable. – Revenues generated from business with asset-light model improved significantly. The Group is developing itself into an industrial and financial group with equal emphasis on asset-light and asset-heavy models. – Recurring revenues from property services and other businesses increased by 70 % YoY to approximately RMB 5.431 billion, with its ratio to the total income keeping improving to approximately 40%. Business with asset-light model has gradually become the profit resource for the company to resist the downturns in economic cycles and provided steady cash flow. – By the end of 31 December 2018, the total area of properties managed by Colour Life under contracts reached 550 million sq.m. and the total number of communities serviced by Colour Life were 2,709. The total area of properties that Colour life cooperated with other companies reached 570 million sq.m. Colour Life had a total cooperation area of 1.12 billion sq.m., which further consolidated its scale advantage. – The number of registered users in ecosystem exceeded 26.4 million, of which 14.0 million were active users, representing an active rate of 53.0%. The gross merchandise value (“GMV”) of the platform increased by 24.1% YoY to RMB 9.45 billion, driving the revenue from value-added businesses increased to RMB 408 million with a YoY growth rate of 47.5%. Earnings quality improved significantly. (HongKong, 28 March 2019) Fantasia Holdings Group Co., Limited (“Fantasia” or the “Company”, which together with its subsidiaries, is referred to as the “Group”, HKEx stock code: 1777), the largest community services platform in China, announced its audited annual results for the year ended 31 December 2018. In 2018, the Group’s contracted sales in property increased to RMB 30.173 billion with a YOY growth rate of 50%. The Group sold 2.699 million sq.m. of properties under contracts, representing a YOY growth rate of 41%. The Group recorded a total revenue of RMB 14 billion, which was 43% higher than that of the last year and the gross profit increased by 44%. Excluding the impact of exchange gains and losses, the Group’s core net profit reached RMB 1.909 billion, representing a substantial growth of 135% compared with that of the last year. The gross profit increased 44% compared with that of the previous year, while the Gross profit margin maintained a relatively high level at30% in the industry. Basic earnings per share was RMB 0.13. The Board proposed the payment of a final dividend of HK 4 cents per share. The Group’s sales investment scale was expanding and the Group continued to maintain a steady financial growth. By the end of 2018, the net gearing ratio was 77.4%, decreased by 5.5% compared with that in the middle of 2018. The Group’s bank balances and cash were RMB 28.57 billion. The contracted sales surpassed RMB 30 billion; the Group has substantial project bank in Guangdong-Hong Kong-Macao Greater Bay Area It is notable that the Group has substantial land bank in the Greater Bay Area. Currently, 39 urban renewal projects in the Greater Bay Area are at different stages of development, of which most are in Shenzhen and Huizhou. Some projects are in cities like Dongguan, Zhongshan and Zhuhai, with a land bank of 9 million sq.m.. In the core city Shenzhen, 24 urban renewal projects that are under promotion, covering traditional key areas such as Futian, Luohu and Nanshan. In Shenzhen, framework agreements on10 urban renewal projects have been signed, covering a land bank of 1.85 billion sq.m.. All these projects are scheduled to be conducted and put on the market between 2019 and 2021. In 2019, Fantasia Real Estate will continue its development and keep optimizing itself under the guidance of the current strategy planning. While maintaining the stability in the core investment regions in China, the Group will take the advantage of the development opportunities in the Greater Bay Area and mainly focus on the urban renewal programs in the Greater Bay Area and Shanwei special cooperation zone in Shenzhen (SSCZ). Revenues generated from business with asset-light model improved steadily. Value-added business increased by 47.5% YoY. During the reporting period, Colour Life successfully integrated Wanxiangmei, added a great amount of high-end properties and realized speedy endogenous growth through a new round of commissioned employment. By 31 December 2018, the total area of properties managed by Colour Life under contracts reached 550 million sq.m. and the total number of communities serviced by Colour Life reached over2,709. Colour Life has management projects in Singapore and 268 cities in China, realizing a rapid growth of the management scale. By 31 December 2018, Colour Life has cooperated with 95 enterprises under the guidance of the platform output strategy, and the total area covered by the cooperation and alliance reached 570 million sq.m., with a total platform serviced area of 11.2 billion sq.m.. The user scale advantage has been further consolidated. Meanwhile, Colour Life maintained a leader in the innovative model of community services. While constructing an ecosystem platform of smart community service, Colour life steadily promoted the order-based strategy and gradually realized the landing of seven service sectors including E-security, E-Repair (e-lift included), E-Energy, E-Cleaning, E-Gardening, E-Payment and E-Complaint. The landing of the seven sectors realized the platform of basic property management functions and further enhanced the service efficiency. The core product ” Colour Benefit Life”, a multi-win product, changed the traditional charging model of property management fee. Customers could enjoy reduction or exemption from property management fees when they consume in Caizhiyun (彩之云). By 31 December 2018, the cumulative amount of property management fees that was offset total RMB 36.2 million, and 260 thousand families enjoyed reduction in or exemption from property management fees. The value-added business developed rapidly and has become a great pillar for Colour Life’s future rapid growth. By 31 December 2018, the number of registered users in ecosystem exceeded 26.4 million, of which 14.0 million were active users. The gross merchandise value (“GMV”) of the platform increased by 24.1% YOY to RMB 9.5 billion, driving the revenue from Colour Life value-added businesses increased to RMB 400 million with a YOY growth rate of 47.5%. The contribution to segment profit was over RMB 300 million, accounting for 33.6%. Earnings quality maintained a leading position in the industry. Home E&E, with its major business being property service, has Fantasia International Property, Home E&E (Shanghai) Business Management Co., Ltd., Jinnian Hotel, Niutian Electromechanial and other subsidiaries. By the end of 2018, Home E&E had a contracted area of 30.43 million sq.m. with 142 projects, representing an increase in net contracted area of 7.11 million sq.m.. Fantasia hopes to make people-friendly product systems by optimizing its products and service systems. The Group devotes to creating full intelligent life for customers and achieving the goal of becoming the first-rate community producers in China. In all residential products,Jiatianxia produce line, the representative work of Fantasia’s smart community, is a symbol of the Group. Beautifully presenting the concept of “smart”, successfully combining the hardware, software, service and technology, having the concept of smart community and quality service all the way through, Jiatianxia promoted the added-value of the product and was highly recognized in the market. 4 Jiatianxia projects sold during the reporting period generated cumulative sales amount of RMB 7.9 billion, accounting for 26% of the total sales of the company. Putting strategic emerging industries on top priority, Fantasia developed real estate projects with high-tech enterprises and advanced manufacturers. It was also responsible for the operation and management of the projects when they were completed, providing basic and value-added services for enterprises. The Group had great experience in developing and operating projects like ICPARK, Nianle Plaza, for which the Group got two high-quality projects ” Hangzhou smart valley, industrial park of 360″ and “Zhangjiakou Huailai ISOFTSTONE Industrial Park” in Yangtze River Delta and Beijing-Tianjin Metropolitan area. The Group has conducted cooperation with many famous enterprises and companies including Qihoo 360 and ISOFTSTONE. Relying on the platform of “real estate + community”, Fantasia is developing itself into a group that puts equal emphasis on asset-light and asset-heavy models While promoting the development of the real estate, Fantasia outstood itself in community-based service. Colour Life has completed its transformation based on the Internet and big data. It was called “The World’s largest community service operator” by China Index Academy (CIA), and formed the operating model of “Online-Merge-Offline (OMO)” based on combing technologies like Internet Plus, Internet of Things (LOT), Artificial Intelligence (AI) with off-line property basic services, which will greatly improve the capability of serving the city and provide smarter, more convenient and diversified services. In the meantime, the Group’s multi-industry planning will be guaranteed with the development of the Greater Bay Area. Relying on “Real Estate Plus” and “Community Plus”, other industries with Fantasia’s characteristics such as business, cultural tourism, trade, finance, elderly care service industry will be further innovated and merger, making greater progress. Taking the advantage of more convenient trade and commerce policies, the Group will get huger development space. It is expected that the development of the Group’s innovative industry will attract more talents and create more job opportunities.
Document: http://n.eqs.com/c/fncls.ssp?u=TSRTWEHSPU Document title: Fantasia is striving for progress while maintaining stability.Income increased greatly by 43.0% with approximately RMB 14 billion
28/03/2019 Dissemination of a Financial Press Release, transmitted by EQS Group. |