Abstract: Interest-bearing liabilities have been paid off (welcome to focus on leveraged real estate)
Written by|Sister & Editor|Wenwen
There was "good news" in the suspended property companies. Previously, it was Evergrande Property and Aoyuan Health, and this time it was the "first share of property" color life. And in one step: the resumption of trading.
On July 6, 2023, Cai Life issued an announcement that trading will resume from 9 a.m. on the same day. Also disclosed are the company's 2021 and 2022 results announcements and 2022 interim results announcements.
On the other hand, its parent company Fantasia seems to be still in dire straits, and its listed company Fantasia Holdings is still struggling to "survive".
1. "Return" after 15 months
Since April 1, 2022, Lottery Life has been suspended for more than 15 months.
From the performance of the stock price in these two days, after the resumption of trading on July 6, the company's stock price once rose, once rose 10%+, and today it began to fall, and the price per share was not as good as before the suspension of trading.
Image source|Network screenshot (thanks in advance)
Recall that nine years ago, in June 2014, Fantasia sent its property company Cai Life to the capital market, which was still a less optimistic industry at that time. Most of the later friends understood: the property stock listing boom began, and Cai Life was known as the "first property stock" because it went public early.
Despite taking the lead, this does not seem to make Cai Life's stock price any more exciting after that. Leveraged Real Estate can be seen from the stock price chart displayed by Oriental Wealth that the highlight of its listing for more than 9 years is fixed in 2015, the top of the last cycle of real estate. After a long pullback, it set off a small climax in the last cycle, that is, 2018, and then all the way down, until trading was suspended and resumed.
Image source|Oriental Fortune (thanks in advance)
The colorful life of the highlight moment has also been acquired by capital. For example, in 2015, Shenzhen Kaiyuan International Property Management Co., Ltd. was acquired for 330 million yuan;
In 2016, Fantasia Property Consortium acquired Wanda's Wanda Property, also known as Wanxiang Mei Property, for 2 billion yuan...
But at the trough, Cai Life had to sell its core assets to "survive". In October 2021, the company sold 100% of the equity of Neighborhood Le Holding Group Co., Ltd., 3.3 billion yuan, to Country Garden Services.
Neighborhood Le Holdings includes Wanxiang Mei Property, New Century International, Kaiji Commercial, Vientiane Mei Residential, Huaxu Property, etc., at that time, some public opinion believed that after the successful transfer, it may lead to the privatization and delisting of Cai Life, or become a "fairy stock".
2. Shrunken color life
How is Lottery Life, which sold its core assets, doing now? Leveraged Real Estate sees part of the answer in its earnings report disclosed yesterday (July 6).
As shown in the figure above, the data shows that the revenue of lottery life in 2022 has shrunk sharply, from 3.123 billion yuan in 2021 to 1.311 billion yuan, a year-on-year decrease of 58.02%. According to the financial report, the main reason for the decrease in revenue was the sale of major subsidiaries in 2021, resulting in a decrease in revenue from property management services, value-added services and engineering services, which are also the main businesses of Cai Life.
As of the end of 2022, the total construction area under contract management of Cai Life is about 400 million square meters, and this data is 423 million square meters in 2021; the corresponding number of communities is 2,107 in 2022 and 2,220 in 2021; Among them, the total GFA under contract management that has generated revenue will be approximately 210 million square meters at the end of 2022 and approximately 230 million square meters at the end of 2021.
In terms of profit, the gross profit margin of Lottery Life in 2022 will continue to fall, down 58.02% year-on-year to 421 million yuan, but its net profit attributable to the parent has also increased somewhat, to 31.36 million yuan. Although it is less than the 502 million yuan in 2020, it is an improvement from the 17.66 million yuan in 2021.
The main reason for this is that the financial cost has been significantly reduced. In 2022, the financing cost of Cai Life was only 5.458 million yuan, and in 2021, this figure was 282 million yuan. It is also evident that the impairment loss under the expected credit loss model decreased from approximately $545 million in 2021 to $147 million in 2022. In addition, after the sale of core subsidiaries, administrative expenses and other expenses also declined, and the final net profit figure improved.
Based on this, the net profit margin of Cai Life in 2022 increased year-on-year, from 0.60% in 2021 to 3.70%, but compared with the 10%+ in earlier years, it seems far away.
Image source|Oriental Fortune (thanks in advance)
In terms of cash, as at the end of 2022, the bank balance and cash of Lottery Life were about $757 million, an increase of 26.2% from about $600 million at the end of 2021.
The good news is that as of the end of 2022, Lottery Life's interest-bearing liabilities have been paid off.
3. The Year of Fantasia, the 22nd month of "silence"
Compared to Cai Life, its controlling shareholder Fantasia is in a much more difficult situation, and the latest news is that it is still undergoing debt restructuring and has not yet met the requirements of the resumption guidelines.
On July 4, Leveraged Real Estate saw Fantasia Holdings' latest quarterly disclosure, saying it was "actively working with the offshore bondholder panel and its advisors to finalize the documentation of the offshore debt restructuring proposal." ”
In addition, the division's winding-up petition has been adjourned until 17 July 2023.
Fantasia said that the review of the Group's 2021 results and its 2022 interim results is ongoing. The Company will publish its audited results for 2021 and interim results for 2022 as soon as practicable.
At the same time, Fantasia stated that it has focused and will continue to focus on the completion and delivery of its property projects, implement measures to accelerate the sales of properties under development and completed properties, and control administrative costs and capital expenditures.
In addition, Leveraged Real Estate noted that a few days ago Fantasia appointed a new executive director, named Timothy David Gildner, who previously served as a director of AutoNavi Investment Consultants Limited and has extensive knowledge and experience in finance and management. After joining Fantasia, he was mainly responsible for managing the Group's asset management department.
On September 29, 2021, Fantasia Holdings suspended trading for more than 21 months, and previously responded to "never lie flat".
Before the suspension, Fantasia's share price had fallen by nearly 90% in more than a year, with a share price of HK$0.2 per share and a market value of HK$1.155 billion.
Sales are also falling off a cliff, and Kerry data shows that Fantasia Holdings' sales in 2022 will be 6.44 billion yuan, only a fraction of the 46.59 billion yuan in 2021.
In 2023, leveraged real estate has not yet seen the data disclosed by Fantasia. I hope to disclose it early and usher in the day of resumption.
The financial charts not indicated in this article are derived from the relevant announcements of Cai Life and Fantasia Holdings, and are hereby explained and acknowledged
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