Fantasia Holdings Group (1777) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 62.4% YoY to RMB15.844bn, while net loss was RMB6.433bn and loss attributable to owners was RMB6.488bn.

• Completed 21 project phases with 2.089m sq.m. of GFA; contracted sales reached RMB2.586bn across 374,429 sq.m.

• Severe liquidity stress persisted: net current liabilities were RMB6.688bn, net liabilities RMB2.025bn, and the auditor disclaimed an opinion due to going-concern uncertainties.

Financial highlights

• Gross profit rose 43.1% YoY to RMB2.472bn; gross margin fell to 15.6% from 17.7%, reflecting higher land and construction costs of delivered properties.

• Selling and distribution expenses declined 56.6% to RMB95m; administrative expenses fell 22.4% to RMB715m, bringing combined expenses to RMB810m, down 28.9%.

• Finance costs increased 28.2% to RMB2.873bn, mainly as lower construction activity reduced interest capitalization; income tax expense rose to RMB1.331bn from RMB445m.

• Loss attributable to owners widened to RMB6.488bn from RMB6.071bn; basic and diluted loss per share was RMB1.1239 vs. RMB1.0517.

Outlook and guidance

• Liquidity measures include offshore debt restructuring, discussions with lenders on renewals, seeking new financing or asset sales, accelerating property sales and collections, and controlling costs and discretionary capex.

• Plans also include disposing of interests in project development companies and adjusting presales to market conditions; implementation remains uncertain amid creditor support and property-market volatility.