Faster Enterprises Ltd (ASX: FE8), incorporated in 2015 and based in Box Hill, Australia. It is a subsidiary of Coolyah Properties Trust and is engaged in the building and management of residential, commercial, and serviced apartments and hotels in strategic locations across Australia. Besides, it also leases retail properties. It operates via three key business divisions- Property Development, Hotel Development, And Property Leasing.
The company is led by a strong team of current Directors including Yong Chao Wu (Executive Chairman), Norman Wu (Non-Executive Director), Wing Kee Cheng (Non-Executive Director) and Min Jiang (Non-Executive Director), supported by Company Secretary Michael Malbourne.
With an underlying aim to differentiate its business and properties, Faster Enterprises places high emphasis on the workmanship of developments and thus incorporates proper landscaping, recreational facilities and allied infrastructure to create and offer a pleasing living environment to attract its targeted clients in Australia as well overseas, preferably China.
The companyâs business model is formulated in such a fashion that it allows diversification of the sources and timings of its revenue to more effectively manage its capital and funding structure. For this, Faster Enterprises sells specific properties for immediate return of capital to fund its regular business expenses, operations and expansion plans. Meanwhile, it purposely retains certain other properties for stable recurring rental income and long-term capital appreciation. Accordingly, the company is able to well balance its short-term and long-term financial strength.
The company reported a favourable financial year 2018 (FY18) as its sales revenue amounted to $ 132,200 including profitable sales of 157-159 Springvale Road Nunawading and the Groupâs 19.9% interest in the Ferntree Gully Unit Trust which yielded $ 605,800. The proceeds were utilised to acquire the highly sought-after property at 4 Watts Street Box Hill which has an extremely good development and rental income potential.
A strategic alliance was established with the real estate investment group, Synergy Solution Management Group Ltd (headquartered in Hong-Kong Kong with assets management in Australia) in April 2018, to evaluate investment opportunities in pre-fabricated modular development projects in Melbourne.
After June 30th, 2018, Faster Enterprises sought and accepted an offer for the sale of 7 Ellingworth Parade Box Hill at $ 3.88 million that is anticipated to return significant profits thereby enhancing the full-year 2019 financial year (FY19) results, in line with its business model.
Another agreement was executed on July 5th, 2018, to issue two-year 2% per annum Convertible Notes with a face value of AUD 500,000 to Zhongtai Investment Limited an ensure that the company is able to seize the property and property rental opportunities as they arise without stretching working capital.
As the half-year to Decemberâ19 came to close, the net assets were valued at around $ 4.88 million. The operating and investing expenses during the six months led to net cash burns of ~ $ 1.11 million and ~ 1.18 million respectively. The financial activities including proceeds from bank loans and related partiesâ loans added $ 2.28-million inflows to the next cash.
With around 110.89 million outstanding shares, the FE8 stock closed the market session at the last trading price of AUD 0.014 on May 1st, 2019.
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