2018 Annual Report

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2018 Annual Report Anniversary 1998-2018 2018 Annual Report Stock Code: 01777 A Leader in Providing Joyful, Colorful and Meaningful Living Space and Experience. CONTENTS Corporate Information 002 Financial Highlights 003 Honors and Awards 004 Chairman’s Statement 007 Management Discussion and Analysis 011 Directors’ Profile 036 Senior Management’s Profile 041 Report of Directors 044 Corporate Governance Report 065 Independent Auditor’s Report 073 Consolidated Statement of Profit or Loss and 083 Other Comprehensive Income Consolidated Statement of Financial Position 084 Consolidated Statement of Changes in Equity 086 Consolidated Statement of Cash Flows 089 Notes to the Consolidated Financial Statements 092 Financial Summary 246 Major Investment Properties Held by the Group 247 Fantasia Holdings Group Co., Limited 001 2018 Annual Report Corporate Information DIRECTORS REMUNERATION CORPORATE HEADQUARTERS IN Executive Directors COMMITTEE PEOPLE’S REPUBLIC OF CHINA Mr. Pan Jun (Chairman and Mr. Huang Ming (Committee Chairman) Block A, Funian Plaza Chief Executive Officer) Mr. Ho Man Shihua Road and Zijing Road Ms. Zeng Jie, Baby Mr. Pan Jun Interchange in Futian Duty-free Zone Dr. Liao Jianwen Shenzhen 518048 Mr. Deng Bo Ms. Wong Pui Sze, Priscilla, JP Guangdong Province Mr. Guo Shaomu China Non-Executive Directors Mr. Li Dong Sheng NOMINATION CAYMAN ISLANDS PRINCIPAL Mr. Liao Qian COMMITTEE SHARE REGISTRAR AND Mr. Lam Kam Tong Mr. Pan Jun (Committee Chairman) TRANSFER OFFICE (re-designated as a non-executive Mr. Ho Man SMP Partners (Cayman) Limited director on 20 July 2018) Mr. Huang Ming Royal Bank House – 3rd Floor Ms. Zeng Jie, Baby 24 Shedden Road Independent Non-Executive Dr. Liao Jianwen P.O. Box 1586 Directors Ms. Wong Pui Sze, Priscilla, JP Grand Cayman, KY1-1110 Mr. Guo Shaomu Cayman Islands Mr. Ho Man Mr. Huang Ming AUDITORS HONG KONG BRANCH SHARE Dr. Liao Jianwen Deloitte Touche Tohmatsu REGISTRAR AND TRANSFER Ms. Wong Pui Sze, Priscilla, JP Certified Public Accountants OFFICE Mr. Guo Shaomu Computershare Hong Kong Investor PRINCIPAL BANKERS Services Limited JOINT COMPANY Agricultural Bank of China 17M Floor, Hopewell Centre SECRETARIES China Construction Bank Corporation 183 Queen’s Road East Mr. Lam Kam Tong China Everbright Bank Co., Ltd. Wanchai (resigned on 31 October 2018) Industrial and Commercial Bank Hong Kong Mr. Liu Bin of China Limited The Hongkong and Shanghai Banking (appointed as joint company secretary LISTING INFORMATION Corporation Limited The Company’s Share Listing on 1 November 2018) Ordinary shares Ms. Luo Shuyu LEGAL ADVISORS The Stock Exchange of Hong Kong Limited (appointed as joint company secretary As to Hong Kong Law Stock Code: 1777 on 1 November 2018) Sidley Austin The Company’s Senior Notes Listing AUTHORIZED As to PRC Law CNY 1.6 billion 9.50%, 3 years senior notes due 2019 REPRESENTATIVES Commerce & Finance Law Offices USD 300 million 7.25%, 1 year senior notes due 2019 Mr. Pan Jun USD 140 million 12.00%, 1 year senior notes due 2019 Mr. Lam Kam Tong As to Cayman Islands Law USD 250 million 10.75%, 7 years senior notes due 2020 (resigned on 31 October 2018) Conyers Dill & Pearman USD 100 million 12.00%, 2 years senior notes due 2020 Ms. Luo Shuyu USD 500 million 7.375%, 5 years senior notes due 2021 REGISTERED OFFICE (appointed on 1 November 2018) USD 600 million 8.375%, 3 years senior notes due 2021 Cricket Square USD 200 million 15.00%, 3 years senior notes due 2021 Hutchins Drive USD 300 million 7.95%, 5 years senior notes due 2022 AUDIT COMMITTEE P.O. Box 2681 The Singapore Exchange Securities Trading Limited Mr. Ho Man (Committee Chairman) Grand Cayman KY1-1111 Mr. Huang Ming Cayman Islands WEBSITE Dr. Liao Jianwen http://www.cnfantasia.com Ms. Wong Pui Sze, Priscilla, JP CORPORATE HEAD OFFICE Mr. Guo Shaomu IN HONG KONG Room 1202–03 New World Tower 1 16–18 Queen’s Road Central Hong Kong 002 Financial Highlights Revenue (in RMB’ million) 13,986 10,921 9,783 8,164 7,306 43.0% 2014 2015 2016 2017 2018 Net Prot (in RMB’ million) 1,372 1,403 1,410 1,168 1,064 17.2% 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 (RMB’000) (RMB’000) (RMB’000) (RMB’000) (RMB’000) Total assets 41,254,080 44,551,288 49,752,263 68,956,740 94,446,071 Gross profit 2,806,812 2,518,743 3,528,482 2,897,604 4,183,966 Profit attributable to owners of the Company 1,255,341 1,210,610 805,736 1,154,316 728,339 Basic earnings per share (RMB) 0.22 0.21 0.14 0.20 0.13 Revenue 7,305,950 8,164,297 10,920,638 9,782,568 13,986,133 Total liabilities 29,841,706 32,311,251 36,631,528 51,258,709 74,991,562 Fantasia Holdings Group Co., Limited 003 2018 Annual Report Honors and Awards In 2018, Fantasia Group (China) Co., Ltd. was awarded In December 2018, Fantasia Chengdu was awarded the the “Outstanding Contribution Award” by the SEE “Shuangliu District Quality Private Enterprise” issued by Foundation. Chengdu Shuangliu People’s Government. On July 10, 2018, Fantasia Holdings was awarded the Colour Life was awarded: “ China’s Top 100 Property “Listed Companies Annual Awards 2018” at the ceremony Service Companies for Ten Consecutive Years From 2009 of “2018 Year Award for Listed Companies “ by The to 2018”, “Leading featured Property Service Company Hong Kong Institute of Financial Analyst and Professional in China-Intelligent Community”, “2018 China’s Top Commentators Limited. 100 Leading Property Service Companies in Satisfaction”, “Top 10 Among China’s Top 100 Property Service Growth Fantasia Holdings Group was awarded the “2018 Quality Companies”, “Top 10 Among China’s Top 100 Property Real Estate Enterprise Award in China”. Service Companies in terms of Business Scale”. In December 2018, at the “China Real Estate Billboard” In September 2018, at the “2018 China’s Top 100 Real awarding ceremony, the “Luhu International”, “Xiangmendi” Estate Companies Research Results Conference cum the and “Jiatianxia” projects under Fantasia were received various 15th China’s Top 100 Real Estate Companies Entrepreneurs awards. Summit”, jointly held by Development Research Center of the State Council, Institute of Real Studies at Tsinghua As jointly nominated and recommended by the 15th 2018 University and China Index Academy, held at Beijing Yanqi China Real Estate Economic Summit Forum Organizing Lake International Convention & Exhibition Center. As Committee and China Mainstream Real Estate Media such, Colour Life was awarded “2018 China’s Leading Alliance, and Greater Bay Area Urban Habitat Culture Brand Enterprise in the Market-oriented Operation of Research Institute, Fantasia • Kunming Luhu International Property Services”, with a brand value of RMB5,002 million project was awarded: the “Eco-human and Metropolitan (RMB5,002,000,000). Landmark Property” expert award for 2018 in China; the “Most Popular Urban Brand Humanities Community” expert award for 2018 in China. Fantasia • Guilin Luhu International was awarded the “Top Ten Influential Brands of Guilin Property Market in 2018”; “The Livable Demonstration Property in 2018 in Guilin”. 004 Honors and Awards Fantasia Holdings Group Co., Limited 005 2018 Annual Report Honors and Awards On 15 October 2018, during the 2nd International On 27 November 2018, the “City Competition and Property Management Industrial Expo, the China Property Cooperation, Bay Area Symbiosis – 2018 Guangdong, Hong Management Institute issued the “2018 Development Report Kong and Macao Big Bay Area Innovation and Development for National Property Management Industry”, in which Summit Forum” endorsed by Southern Newspaper Media announced the results of top 100 comprehensive strength Group and hosted Nan Fang Daily was held in Shenzhen. enterprises in property management nationwide, Colour Life Colour Life Services Group (HK 1778) was awarded the is ranked into the list of top 100 comprehensive strength “Industry Development Innovation Award of the Year” for with its outstanding performance. At this expo, Colour Life its innovation and leading role in the property management was awarded the “Excellent Organisation Award” by the industry. 2nd International Property Management Industrial Expo with its innovative exhibition design and professional service On 12 December 2018, the “Golden Lion Award • Hong reception. Kong Listed Companies Value List – and the International Development Forum of Chinese Listed Companies” hosted On October 19, 2018, “Clearing the fog and inspiring by Sina Finance was held in Hong Kong. Colour Life Service the future” (廓清迷霧洞見未來) – Securities Times’ 2018 Group Co., Limited (HK 1778) (hereinafter referred to as “Golden Wing Award” for Hong Kong Stock Connect “Colour Life”) was awarded the “Most Growth Company” Company Value Festival was held in Shenzhen. Colour Life for its outstanding comprehensive strength. (HK 1778) was awarded 2018 “Golden Wing Award – Most Growing Strength Hong Kong Stock Connect Company” In September 2018, the “Huaxi Metropolis Daily”, with its outstanding comprehensive strength. “Huaxi Community Media” and “Sichuan Kangyang” jointly awarded the “Reform and Open 40 Years • 2018 Sichuan Quality Elderly Caring Service Model Enterprise” to Chengdu Fulin Endowment Apartment. In November 2018, Fantasia Commercial was awarded: “2018 China Commercial Real Estate TOP100 & Business Performance Award”, which was issued by the Guandian • Real Estate New Media. 006 Fantasia Holdings Group Co., Limited 007 2018 Annual Report Chairman’s Statement Dear Shareholders, I am pleased to present to our shareholders the annual results review of Fantasia Holdings Group Co., Limited (“Fantasia” or the “Company”, together with its subsidiaries the “Group”) for the year ended 31 December 2018 as well as its prospects. I. RESULTS AND DIVIDENDS In 2018, the Group recorded revenue of approximately RMB13,986 million, representing an increase of 43.0% over last year. Net profit attributable to owners of the Company for the year amounted to RMB728 million.
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