BEIJING, Aug. 30, 2019 /PRNewswire/ -- Fang Holdings
Limited (NYSE: SFUN) ("Fang" or "we"), a leading real estate
Internet portal in China, today
announced its unaudited financial results for the second quarter
and the first half year ended June 30,
2019.
Second Quarter 2019 Highlights
- Total revenues were $67.6
million, an increase of 6.8% from $63.3 million in the corresponding period of
2018.
- Operating income from continuing operations was
$29.0 million, compared to an
operating loss from continuing operations of $9.6 million in the corresponding period of
2018.
- Net income was $4.2
million, compared to a net loss of $53.5 million in the corresponding period of
2018.
First Half 2019 Highlights
- Total revenues were $102.6
million, a decrease of 8.7% from $112.3 million in the corresponding period of
2018.
- Operating income from continuing operations was
$17.2 million, compared to an
operating loss from continuing operations of $20.2 million in the corresponding period of
2018.
- Net income was $17.6
million, compared to a net loss of $98.4 million in the corresponding period of
2018.
"We are turning around and achieved revenue growth after many
quarters of decrease," commented Mr. Jian
Liu, CEO of Fang. "The main drivers behind this growth are
marketing services and leads generation services, which will
continue to generate growth into the coming quarters."
Second Quarter 2019 Results
Revenues
Fang reported total revenues of $67.6
million in the second quarter of 2019, an increase of 6.8%
from $63.3 million in the
corresponding period of 2018, mainly due to the increase in
revenues from marketing services.
Revenue from marketing services was $32.5 million in the second quarter of 2019, an
increase of 19.3% from $27.2 million
in the corresponding period of 2018, driven by Fang's efforts in
customer development.
Revenue from listing services was $19.2 million in the second quarter of 2019, a
decrease of 26.0% from $26.0 million
in the corresponding period of 2018, mainly due to the decrease of
paying members in listing services.
Revenue from leads generation services was
$10.8 million in the second quarter
of 2019, an increase of 290.2% from $2.8
million in the corresponding period of 2018, driven by the
increased effectiveness of the service and customer
development.
Revenue from financial services was $2.6 million in the second quarter of 2019, a
decrease of 3.2% from $2.7 million in
the corresponding period of 2018.
Cost of Revenue
Cost of revenue was $8.3 million
in the second quarter of 2019, compared to $8.4 million in the corresponding period of
2018.
Operating Expenses
Operating expenses were $30.3
million in the second quarter of 2019, a decrease of 53.0%
from $64.5 million in the
corresponding period of 2018, mainly due to the decrease in bad
debt and staff costs.
- Selling expenses were $16.1
million in the second quarter of 2019, an increase of 12.5%
from $14.3 million in the
corresponding period of 2018.
- General and administrative expenses were $15.7 million in the second quarter of 2019, a
decrease of 69.1% from $50.7 million
in the corresponding period of 2018, mainly due to the decrease in
bad debt and staff costs.
Operating Income/Loss from Continuing Operations
Operating income from continuing operations was $29.0 million in the second quarter of 2019,
compared to operating loss from continuing operations of
$9.6 million in the corresponding
period of 2018, mainly due to the decrease in operating
expenses.
Change in Fair Value of Securities
Change in fair value of securities for the second quarter of
2019 was a loss of $48.5 million,
compared to a loss of $82.9 million
in the corresponding period of 2018, mainly due to the fluctuation
in market price of investments in equity securities.
Income Tax Benefits
Income tax benefits were $20.6
million in the second quarter of 2019, a decrease of 27.2%
compared to income tax benefits of $28.3
million in the corresponding period of 2018, primarily due
to the effect of change in fair value of equity securities and the
reversal of previously recorded ASC 740 (FIN 48) income taxes and
interest.
Net Income/Loss
Net income was $4.2 million in the
second quarter of 2019, compared to net loss of $53.5 million in the corresponding period of
2018.
Cash
As of June 30, 2019, Fang had cash
and cash equivalents, restricted cash (current and non-current) and
short-term investments of $500.6
million, compared to $439.7
million as of December 31,
2018.
First half year 2019 Results
Revenues
Fang reported total revenues of $102.6
million in the first half year of 2019, a decrease of 8.7%
from $112.3 million in the
corresponding period of 2018.
Revenue from marketing services was $45.7 million in the first half year of 2019, an
increase of 5.3% from $43.4 million
in the corresponding period of 2018, driven by Fang's efforts in
customer development.
Revenue from listing services was $31.4 million in the first half year of 2019, a
decrease of 29.7% from $44.6 million
in the corresponding period of 2018, mainly due to the decrease of
paying members in listing services.
Revenue from leads generation services was
$14.8 million in the second quarter
of 2019, an increase of 281.2% from $3.9
million in the corresponding period of 2018, driven by the
increased effectiveness of the service and customer
development.
Revenue from financial services was $6.1 million in the first half year of 2019, a
decrease of 21.1% from $7.8 million
in the corresponding period of 2018.
Cost of Revenue
Cost of revenue was $16.7 million
in the first half year of 2019, a decrease of 34.2% from
$25.4 million in the corresponding
period of 2018, primarily due to cost savings from optimizing
Fang's core business.
Operating Expenses
Operating expenses were $68.6
million in the first half year of 2019, a decrease of 36.0%
from $107.2 million in the
corresponding period of 2018, mainly due to the decrease in bad
debt and staff costs.
- Selling expenses were $32.5
million in the first half year of 2019, an increase of 16.9%
from $27.8 million in the
corresponding period of 2018.
- General and administrative expenses were $38.1 million in the first half year of 2019, a
decrease of 52.6% from $80.2 million
in the corresponding period of 2018, mainly due to the decrease in
bad debt and staff costs.
Operating Income/Loss from Continuing Operations
Operating income from continuing operations was $17.2 million in the first half year of 2019,
compared to an operating loss from continuing operations of
$20.2 million in the corresponding
period of 2018, mainly due to the decrease in operating
expenses.
Change in Fair Value of Securities
Change in fair value of securities for the first half year of
2019 was a loss of $16.5 million,
compared to a loss of $125.2 million
in the corresponding period of 2018, mainly due to the fluctuation
in market price of investments in equity securities.
Income Tax Benefits
Income tax benefits were $9.5
million in the first half year of 2019, a decrease of 71.7%
from $33.5 million in the
corresponding period of 2018, primarily due to the effect of change
in fair value of equity securities and the reversal of previously
recorded ASC 740 (FIN 48) income taxes and interest.
Net Income/Loss
Net income was $17.6 million in
the first half year of 2019, compared to a net loss of $98.4 million in the corresponding period of
2018.
Business Outlook
Based on current operations and market conditions, Fang's
management remains confident that net income is expected to be
positive for the fiscal year ending December
31, 2019. This estimate represents management's current and
preliminary view, which is subject to change.
Conference Call Information
Fang's management team will host a conference call on the same
day at 8:00 AM U.S. EST (8:00 PM Beijing/Hong
Kong time). The dial-in details for the live conference call
are:
International
Toll:
|
+65
67135090
|
Toll-Free/Local
Toll:
|
|
United
States
|
+1 866-519-4004 / +1
845-675-0437
|
Hong Kong
|
+852 800-906-601 /
+852 3018-6771
|
Mainland
China
|
+86 800-819-0121 /
+86 400-620-8038
|
Passcode:
|
SFUN
|
A telephone replay of the call will be available after the
conclusion of the conference call from 11:00
AM ET on August 30, 2019
through 9:59 AM ET September 07, 2019. The dial-in details for the
telephone replay are:
International
Toll:
|
+61
2-8199-0299
|
Toll-Free/Local
Toll:
|
|
United
States
|
+1 855-452-5696 / +1
646-254-3697
|
Hong Kong
|
+852 800-963-117 /
+852 3051-2780
|
Mainland
China
|
+86 400-602-2065 /
+86 800-870-0205
|
Conference
ID:
|
3968246
|
A live and archived webcast of the conference call will be
available on Fang's website at http://ir.fang.com.
About Fang
Fang operates a leading real estate Internet portal in
China in terms of the number of
page views and visitors to its websites. Through its websites, Fang
provides primarily marketing, listing, leads generation and
financial services for China's
fast-growing real estate and home furnishing and improvement
sectors. Its user-friendly websites support active online
communities and networks of users seeking information on, and
value-added services for, the real estate and home furnishing and
improvement sectors in China. Fang
currently maintains approximately 65 offices to focus on local
market needs and its website and database contains real estate
related content covering 658 cities in China. For more information about Fang, please
visit http://ir.fang.com.
Safe Harbor Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Such forward-looking statements are made under the "safe
harbor" provisions of the U.S. Private Securities Litigation Reform
Act of 1995.
These forward-looking statements can be identified by
terminology such as "will," "expects," "is expected to,"
"anticipates," "aim," "future," "intends," "plans," "believes,"
"are likely to," "estimates," "may," "should" and similar
expressions, and include, without limitation, statements regarding
Fang's future financial performance, revenue guidance, growth and
growth rates, market position and continued business
transformation. Such statements are based upon management's current
expectations and current market and operating conditions, and
relate to events that involve known or unknown risks, uncertainties
and other factors, all of which are difficult to predict and many
of which are beyond Fang's control, which may cause its actual
results, performance or achievements to differ materially from
those in the forward-looking statements. Potential risks and
uncertainties include, without limitation, the impact of Fang's
transformation back to a technology-driven Internet platform and
the impact of current and future government policies affecting
China's real estate market.
Further information regarding these and other risks, uncertainties
or factors is included in Fang's filings with the U.S. Securities
and Exchange Commission. Fang does not undertake any obligation to
update any forward-looking statement as a result of new
information, future events or otherwise, except as required under
law.
Fang Holdings
Limited
|
Unaudited
Condensed Consolidated Balance Sheets[I]
|
(in thousands of
U.S. dollars, except share data and per share data)
|
|
ASSETS
|
June
30,
|
December
31,
|
|
|
2019
|
2018
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
232,119
|
171,183
|
|
Restricted cash,
current
|
245,064
|
245,474
|
|
Short-term
investments
|
17,387
|
16,043
|
|
Accounts receivable,
net
|
67,481
|
58,687
|
|
Funds
receivable
|
6,576
|
5,474
|
|
Prepayment and other
current assets
|
29,265
|
27,894
|
|
Commitment
deposits
|
191
|
191
|
|
Loans receivable,
current
|
66,264
|
117,602
|
|
Amounts due from
related parties
|
699
|
-
|
|
Current assets of
discontinued operations
|
-
|
26,289
|
Total current
assets
|
665,046
|
668,837
|
Non-current
assets:
|
|
|
|
Property and
equipment, net
|
716,359
|
727,739
|
|
Land use
rights
|
32,670
|
33,153
|
|
Loans receivable,
non-current
|
1,762
|
6,249
|
|
Deferred tax
assets
|
2,023
|
2,202
|
|
Deposits for
non-current assets
|
409
|
902
|
|
Restricted cash,
non-current portion
|
6,002
|
6,990
|
|
Long-term
investments
|
358,384
|
373,233
|
|
Other non-current
assets
|
10,404
|
4,558
|
|
Non-current assets of
discontinued operations
|
-
|
573
|
Total non-current
assets
|
1,128,013
|
1,155,599
|
Total
assets
|
1,793,059
|
1,824,436
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
Current
liabilities:
|
|
|
|
Short-term
loans
|
293,089
|
297,811
|
|
Deferred
revenue
|
141,252
|
142,473
|
|
Accrued expenses and
other liabilities
|
111,377
|
118,925
|
|
Customers' refundable
fees
|
3,529
|
3,976
|
|
Income tax
payable
|
8,757
|
2,383
|
|
Amounts due to
related parties
|
135
|
19
|
|
Current liabilities
of discontinued operations
|
-
|
35,326
|
Total current
liabilities
|
558,139
|
600,913
|
Non-current
liabilities:
|
|
|
|
Long-term
loans
|
119,503
|
123,215
|
|
Convertible senior
notes
|
253,498
|
254,435
|
|
Deferred tax
liabilities
|
97,305
|
97,578
|
|
Other non-current
liabilities
|
133,835
|
150,837
|
|
Non-current
liabilities of discontinued operations
|
-
|
2,258
|
Total non-current
liabilities
|
604,141
|
628,323
|
Total
Liabilities
|
1,162,280
|
1,229,236
|
|
|
|
|
Equity:
|
|
|
|
Class A ordinary
shares, par value Hong Kong Dollar ("HK$") 1 per share,
600,000,000 shares authorized for Class A and Class B in aggregate,
issued
shares as of December 31, 2018 and June 30, 2019: 72,069,645
and
71,775,686;
outstanding shares as of December 31, 2018 and June 30, 2019:
65,004,587 and 65,062,992
|
9,244
|
9,286
|
|
Class B ordinary
shares, par value HK$1 per share, 600,000,000 shares
authorized for Class A and Class B in aggregate, and 24,336,650
shares and
24,336,650 shares issued and outstanding as at December 31, 2018
and
June 30, 2019, respectively
|
3,124
|
3,124
|
|
Treasury
stock
|
(129,801)
|
(136,615)
|
|
Additional paid-in
capital
|
521,494
|
517,802
|
|
Accumulated other
comprehensive loss
|
(82,351)
|
(75,837)
|
|
Retained
earnings
|
308,375
|
276,746
|
Total Fang
Holdings Limited shareholders' equity
|
630,085
|
594,506
|
|
Non controlling
interests
|
694
|
694
|
Total
equity
|
630,779
|
595,200
|
TOTAL LIABILITIES
AND EQUITY
|
1,793,059
|
1,824,436
|
Unaudited
Condensed Consolidated Statements of Comprehensive
Income[1]
|
(in thousands of
U.S. dollars, except share data and per share data)
|
|
|
|
|
|
|
Three months
ended
|
Six months
ended
|
|
|
June
30,
|
|
June
30,
|
June
30,
|
June
30,
|
|
|
2019
|
|
2018
|
2019
|
2018
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
Marketing
services
|
32,465
|
|
27,202
|
45,728
|
43,417
|
|
Listing
services
|
19,212
|
|
25,962
|
31,371
|
44,617
|
|
Leads generation
services
|
10,801
|
|
2,768
|
14,787
|
3,879
|
|
Value-added
services
|
1,666
|
|
1,390
|
2,668
|
2,277
|
|
Financial
services
|
2,640
|
|
2,726
|
6,139
|
7,779
|
|
E-commerce
services
|
779
|
|
3,211
|
1,860
|
10,380
|
Total
revenues
|
67,563
|
|
63,259
|
102,553
|
112,349
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
Cost of
services
|
(8,254)
|
|
(8,365)
|
(16,692)
|
(25,362)
|
Total cost of
revenues
|
(8,254)
|
|
(8,365)
|
(16,692)
|
(25,362)
|
|
|
|
|
|
|
|
Gross
profit
|
59,309
|
|
54,894
|
85,861
|
86,987
|
|
|
|
|
|
|
|
Operating expenses
and income:
|
|
|
|
|
|
Selling
expenses
|
(16,137)
|
|
(14,341)
|
(32,456)
|
(27,766)
|
|
General and
administrative expenses
|
(15,659)
|
|
(50,716)
|
(38,052)
|
(80,196)
|
|
Other
income
|
1,509
|
|
593
|
1,896
|
752
|
|
|
|
|
|
|
|
Operating income
/(loss) from continuing
operations
|
29,022
|
|
(9,570)
|
17,249
|
(20,223)
|
|
|
|
|
|
|
|
Foreign exchange
loss
|
(371)
|
|
(185)
|
(633)
|
(187)
|
|
Interest
income
|
1,632
|
|
3,334
|
3,321
|
5,939
|
|
Interest
expense
|
(5,696)
|
|
(4,815)
|
(11,741)
|
(10,300)
|
|
Investment income,
net
|
338
|
|
4,785
|
343
|
4,887
|
|
Realized gain on sale
of available-for-sale
securities
|
573
|
|
669
|
871
|
361
|
|
Change in fair value
of securities
|
(48,514)
|
|
(82,917)
|
(16,464)
|
(125,161)
|
|
Government
grants
|
464
|
|
399
|
699
|
614
|
|
Other non-operating
loss
|
-
|
|
(95)
|
-
|
(465)
|
Loss before income
taxes and noncontrolling
interests from continuing operations
|
(22,552)
|
|
(88,395)
|
(6,355)
|
(144,535)
|
Income tax
benefits
|
|
|
|
|
|
|
Income tax
benefits
|
20,609
|
|
28,302
|
9,490
|
33,513
|
Net (loss) income
from continuing operations,
net of income taxes
|
(1,943)
|
|
(60,093)
|
3,135
|
(111,022)
|
Income from
discontinued operations, net of income
taxes
|
6,123
|
|
6,553
|
14,446
|
12,607
|
Net income
(loss)
|
4,180
|
|
(53,540)
|
17,581
|
(98,415)
|
|
Net loss attributable
to noncontrolling interests
|
-
|
|
-
|
-
|
-
|
Net income (loss)
attributable to Fang Holdings
Limited shareholders
|
4,180
|
|
(53,540)
|
17,581
|
(98,415)
|
Earnings /(loss)
per share for Class A and Class B ordinary shares and per
ADS:
|
|
|
|
Basic
|
0.05
|
|
(0.60)
|
0.20
|
(1.11)
|
|
Diluted
|
0.05
|
|
(0.60)
|
0.19
|
(1.11)
|
Earnings /(loss)
from continuing operations per share for Class A and Class B
ordinary shares and per ADS:
|
|
Basic
|
(0.02)
|
|
(0.68)
|
0.04
|
(1.25)
|
|
Diluted
|
(0.02)
|
|
(0.68)
|
0.03
|
(1.25)
|
Earnings from
discontinued operations per share for Class A and Class B ordinary
shares and per ADS:
|
|
Basic
|
0.07
|
|
0.08
|
0.16
|
0.14
|
|
Diluted
|
0.07
|
|
0.08
|
0.16
|
0.14
|
|
|
|
|
|
|
|
[i] Impact of the
Separation of China Index Holdings Ltd (NASDAQ: CIH) ("CIH") on the
Company's Financial Statements: The separation of CIH
represents a strategic shift of Fang and has a major effect on
Fang's results of operations, the business operated by CIH has been
reclassified as discontinued operations. For the periods presented
in this press release, the assets and liabilities of the
discontinued operations are presented separately on the
consolidated balance sheets, and the results of the discontinued
operations, less applicable income taxes, are reported as a
separate component of income, which is income from discontinued
operations, on the consolidated statements of comprehensive income
(loss).
On July 8, 2019, a ratio change that had the same effect as a
1-for-5 reverse ADS split took effect, and as a result, one ADS
currently represents one Class A ordinary share.
|
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SOURCE Fang Holdings Limited