BEIJING, April 24, 2020 /PRNewswire/ -- Fang Holdings
Limited (NYSE: SFUN) ("Fang" or the "Company"), a leading real
estate Internet portal in China,
today announced its unaudited financial results for the fourth
quarter and fiscal year ended December 31,
2019.
Fourth Quarter 2019 Highlights
- Total revenues were $49.3
million, a decrease of 26.7% from $67.3 million in the corresponding period of
2018.
- Operating loss from continuing operations was
$21.0 million, compared to an
operating income from continuing operations of $21.1 million in the corresponding period of
2018.
- Net loss was $26.2
million, compared to a net loss of $29.4 million in the corresponding period of
2018.
Fiscal Year 2019 Highlights
- Total revenues were $219.7
million, a decrease of 8.5% from $240.0 million in 2018.
- Operating income from continuing operations was
$24.1 million, an increase of 145.7%
from $9.8 million in 2018.
- Net loss was $7.7 million,
compared to a net loss of $114.9
million in 2018.
"In 2019, we had challenges but also achievements," commented
Mr. Jian Liu, CEO of Fang. "For the
year of 2020, challenges and opportunities co-exist because of the
potential effects of COVID-19. I believe our new initiatives,
including online live broadcastings, online exhibitions and VR
live, will be strong drivers of our business."
Fourth Quarter 2019 Financial Results
Revenues
Fang reported total revenues of $49.3
million in the fourth quarter of 2019, a decrease of 26.7%
from $67.3 million in the
corresponding period of 2018.
- Revenue from marketing services was $18.9 million in the fourth quarter of 2019, a
decrease of 35.0% from $29.1 million
in the corresponding period of 2018, mainly due to the decrease in
aggregate market demand.
- Revenue from listing services was $12.7 million in the fourth quarter of 2019, a
decrease of 25.3% from $16.9 million
in the corresponding period of 2018, mainly due to the decrease in
the number of paying customers.
- Revenue from leads generation services was $14.4 million in the fourth quarter of 2019, an
increase of 16.2% from $12.4 million
in the corresponding period of 2018.
- Revenue from financial services was $1.4 million in the fourth quarter of 2019, a
decrease of 69.2% from $4.6 million
in the corresponding period of 2018, mainly due to the decrease in
average loan receivable balance.
Cost of Revenue
Cost of revenue was $4.1 million
in the fourth quarter of 2019, a decrease of 41.6% from
$7.0 million in the corresponding
period of 2018, primarily due to the decline in sales and the
optimization in cost structure.
Operating Expenses
Operating expenses were $68.4
million in the fourth quarter of 2019, an increase of 74.3%
from $39.2 million in the
corresponding period of 2018.
- Selling expenses were $26.3
million in the fourth quarter of 2019, an increase of 78.9%
from $14.7 million in the
corresponding period of 2018, mainly due to the increase in
promotional expense.
- General and administrative expenses were $42.1 million in the fourth quarter of 2019, an
increase of 71.6% from $24.5 million
in the corresponding period of 2018, mainly due to the increase in
staff related costs.
Operating (Loss)/Income from Continuing Operations
Operating loss from continuing operations was $21.0 million in the fourth quarter of 2019,
compared to operating income from continuing operations of
$21.1 million in the corresponding
period of 2018.
Change in Fair Value of Securities
Change in fair value of securities for the fourth quarter of
2019 was a loss of $3.5 million,
compared to a loss of $31.4 million
in the corresponding period of 2018, mainly due to the fluctuation
in market price of investments in equity securities.
Income Tax Benefits/Expenses
Income tax benefits were $3.4
million in the fourth quarter of 2019, compared to an
expense of $23.7 million in the
corresponding period of 2018.
Net Loss
Net loss was $26.2 million in the
fourth quarter of 2019, compared to a net loss of $29.4 million in the corresponding period of
2018.
Fiscal Year 2019 Financial Results
Revenues
Fang reported total revenues of $219.7
million for 2019, a decrease of 8.5% from $240.0 million in 2018.
- Revenue from marketing services was $94.6 million for 2019, a decrease of 3.8% from
$98.4 million in 2018.
- Revenue from listing services was $63.5 million for 2019, a decrease of 22.4% from
$81.7 million in 2018, mainly due to
the decreased number of paying members in listing services.
- Revenue from leads generation services was $43.3 million for 2019, an increase of 103.3%
from $21.3 million in 2018, driven by
the increase in effectiveness of services and customer
acceptance.
- Revenue from financial services was $9.6 million for 2019, a decrease of 47.1% from
$18.1 million in 2018.
Cost of Revenue
Cost of revenue was $26.5 million
for 2019, a decrease of 42.9% from $46.4
million in 2018, primarily due to cost savings from
optimizing our core business.
Operating Expenses
Operating expenses were $174.6
million for 2019, a decrease of 7.2% from $188.3 million in 2018.
- Selling expenses were $73.6
million for 2019, an increase of 24.6% from $59.1 million in 2018.
- General and administrative expenses were $101.1 million for 2019, a decrease of 21.8% from
$129.2 million in 2018, mainly due to
the decrease in bad debt.
Operating Income from Continuing Operations
Operating income from continuing operations increased from
$9.8 million in 2018 to $24.1 million for 2019.
Change in Fair Value of Securities
Change in fair value of securities for 2019 was a loss of
$46.1 million, compared to a loss of
$167.4 million in 2018, mainly due to
the fluctuation in market price of investments in equity
securities.
Income Tax Benefits
Income tax benefits were $12.5
million for 2019, a decrease of 34.2% from $19.0 million in 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 tax and
interest liability.
Net Loss
Net loss was $7.7 million for
2019, compared to a net loss of $114.9
million in 2018.
Business Outlook
Based on current operations and market conditions, Fang's
management predicts a positive net income for the year of 2020,
which represents management's current and preliminary view and 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. Eastern Time
(8:00 PM on the same day,
Beijing/Hong Kong time). The dial-in details for the
live conference call are:
International
Toll:
|
+65
67135600
|
Toll-Free/Local
Toll:
|
|
United
States
|
+1 877-440-9253 / +1
631-460-7472
|
Hong Kong
|
+852 800-906-603 /
+852 3018-6773
|
Mainland
China
|
+86 800-870-0075 /
+86 400-120-0948
|
Direct Event
Passcode
|
1578624#
|
Please register in advance of the conference using the
link provided below. Upon registering, you will be provided with
participant dial-in numbers, Direct Event passcode (1578624#) and
unique registrant ID. Get prompted 10 min prior to the start of the
conference. Enter the Direct Event Passcode above (1578624#), and
your unique Registrant ID, followed by the pound or hash (#) sign
to get into the call.
Direct Event online
registration: http://apac.directeventreg.com/registration/event/8819045
A telephone replay of the call will be available after the
conclusion of the conference call from 11:00
AM ET on April 24, 2020
through 9:59 AM ET May 2, 2020. 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 /
+86 800-870-0206
|
Conference
ID:
|
8819045
|
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 other
value-added services for, the real estate and home furnishing and
improvement sectors in China. Fang
currently maintains approximately 74 offices to focus on local
market needs and its website and database contains real estate
related content covering 665 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[1]
|
(in thousands of
U.S. dollars, except share data and per share data)
|
|
ASSETS
|
December
31,
|
December
31,
|
|
|
2019
|
2018
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
181,702
|
171,183
|
|
Restricted cash,
current
|
218,112
|
245,474
|
|
Short-term
investments
|
118,979
|
16,043
|
|
Accounts receivable,
net
|
67,369
|
58,687
|
|
Funds
receivable
|
8,372
|
5,474
|
|
Prepayments and other
current assets
|
32,954
|
27,894
|
|
Commitment
deposits
|
188
|
191
|
|
Loans receivable,
current
|
60,490
|
117,602
|
|
Amounts due from
related parties
|
369
|
-
|
|
Current assets of
discontinued operations
|
-
|
26,289
|
Total current
assets
|
688,535
|
668,837
|
Non-current
assets:
|
|
|
|
Property and
equipment, net
|
695,457
|
727,739
|
|
Land use
rights
|
-
|
33,153
|
|
Loans receivable,
non-current
|
-
|
6,249
|
|
Deferred tax
assets
|
6,362
|
2,202
|
|
Deposits for
non-current assets
|
618
|
902
|
|
Restricted cash,
non-current portion
|
42,452
|
6,990
|
|
Long-term
investments
|
341,946
|
373,233
|
|
Other non-current
assets
|
39,400
|
4,558
|
|
Non-current assets of
discontinued operations
|
-
|
573
|
Total non-current
assets
|
1,126,235
|
1,155,599
|
Total
assets
|
1,814,770
|
1,824,436
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
Current
liabilities:
|
|
|
|
Short-term
loans
|
267,029
|
297,811
|
|
Short term bond
payable
|
102,779
|
-
|
|
Deferred
revenue
|
136,859
|
142,473
|
|
Accrued expenses and
other liabilities
|
118,977
|
118,924
|
|
Customers' refundable
fees
|
5,538
|
3,976
|
|
Income tax
payable
|
3,834
|
2,383
|
|
Amounts due to
related parties
|
9,227
|
19
|
|
Current liabilities
of discontinued operations
|
-
|
35,327
|
Total current
liabilities
|
644,243
|
600,913
|
Non-current
liabilities:
|
|
|
|
Long-term
loans
|
182,321
|
123,215
|
|
Convertible senior
notes
|
169,146
|
254,435
|
|
Deferred tax
liabilities
|
84,964
|
97,578
|
|
Other non-current
liabilities
|
138,001
|
150,837
|
|
Non-current
liabilities of discontinued operations
|
-
|
2,258
|
Total non-current
liabilities
|
574,432
|
628,323
|
Total
Liabilities
|
1,218,675
|
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 December 31, 2019: 72,069,645
and
71,775,686;
outstanding shares as of December 31, 2018 and December 31,
2019: 65,004,587 and 65,403,005
|
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
December 31, 2019, respectively
|
3,124
|
3,124
|
|
Less: Treasury
stock
|
(123,226)
|
(136,615)
|
|
Additional paid-in
capital
|
528,357
|
517,802
|
|
Accumulated other
comprehensive loss
|
(93,070)
|
(75,837)
|
|
Retained
earnings
|
270,973
|
276,746
|
Total Fang
Holdings Limited shareholders' equity
|
595,402
|
594,506
|
|
Noncontrolling
interests
|
693
|
694
|
Total
equity
|
596,095
|
595,200
|
TOTAL LIABILITIES
AND EQUITY
|
1,814,770
|
1,824,436
|
Unaudited
Condensed Consolidated Statements of Comprehensive
Loss[1]
|
(in thousands of
U.S. dollars, except share data and per share data)
|
|
|
|
|
|
|
Three months
ended
|
Year
ended
|
|
|
December
31,
|
|
December
31,
|
December
31,
|
December
31,
|
|
|
2019
|
|
2018
|
2019
|
2018
|
Revenues:
|
|
|
|
|
|
|
Marketing
services
|
18,919
|
|
29,117
|
94,639
|
98,377
|
|
Leads generation
services
|
14,414
|
|
12,407
|
43,300
|
21,303
|
|
Listing
services
|
12,662
|
|
16,948
|
63,471
|
81,741
|
|
Value-added
services
|
1,712
|
|
1,381
|
5,893
|
5,182
|
|
Financial
services
|
1,426
|
|
4,637
|
9,561
|
18,060
|
|
E-commerce
services
|
191
|
|
2,787
|
2,847
|
15,384
|
Total
revenues
|
49,324
|
|
67,277
|
219,711
|
240,047
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
Cost of
services
|
(4,086)
|
|
(6,995)
|
(26,472)
|
(46,392)
|
Total Cost of
Revenues
|
(4,086)
|
|
(6,995)
|
(26,472)
|
(46,392)
|
|
|
|
|
|
|
|
Gross
Profit
|
45,238
|
|
60,282
|
193,239
|
193,655
|
|
|
|
|
|
|
|
Operating
(expenses) income:
|
|
|
|
|
|
Selling
expenses
|
(26,290)
|
|
(14,692)
|
(73,568)
|
(59,064)
|
|
General and
administrative expenses
|
(42,099)
|
|
(24,539)
|
(101,080)
|
(129,224)
|
|
Other
income
|
2,197
|
|
5
|
5,477
|
4,427
|
|
|
|
|
|
|
|
Operating (loss) /
Income from continuing
operations
|
(20,954)
|
|
21,056
|
24,068
|
9,794
|
|
|
|
|
|
|
|
Foreign exchange
gain/loss
|
(46)
|
|
(606)
|
153
|
(598)
|
|
Interest
income
|
4,319
|
|
1,910
|
9,200
|
10,202
|
|
Interest
expense
|
(9,006)
|
|
(5,217)
|
(25,932)
|
(21,174)
|
|
Investment income,
net
|
86
|
|
1,011
|
2,644
|
6,816
|
|
Realized gain on sale
of available-for-sale
securities
|
(721)
|
|
148
|
861
|
761
|
|
Change in fair value
of securities
|
(3,450)
|
|
(31,361)
|
(46,062)
|
(167,402)
|
|
Government
grants
|
184
|
|
584
|
927
|
1,224
|
|
Other non-operating
loss
|
-
|
|
(7)
|
-
|
(30)
|
Loss before income
taxes and noncontrolling
interests from continuing operations
|
(29,588)
|
|
(12,482)
|
(34,141)
|
(160,407)
|
Income tax
benefits(expenses)
|
|
|
|
|
|
|
Income tax
benefits
|
3,370
|
|
(23,697)
|
12,495
|
18,989
|
Net (loss) income
from continuing operations,
net of income taxes
|
(26,218)
|
|
(36,179)
|
(21,646)
|
(141,418)
|
Income from
discontinued operations, net of income
taxes
|
-
|
|
6,777
|
13,937
|
26,509
|
Net loss
|
(26,218)
|
|
(29,402)
|
(7,709)
|
(114,909)
|
|
Net loss attributable
to noncontrolling interests
|
(1)
|
|
2
|
(1)
|
2
|
Net loss
attributable to Fang Holdings Limited
shareholders
|
(26,217)
|
|
(29,404)
|
(7,708)
|
(114,911)
|
Earnings per share
for Class A and Class B ordinary shares and per ADS:
|
|
|
|
Basic
|
(0.29)
|
|
(0.33)
|
(0.09)
|
(1.29)
|
|
Diluted
|
(0.29)
|
|
(0.33)
|
(0.09)
|
(1.29)
|
Earnings from
continuing operations per share for Class A and Class B ordinary
shares and per ADS:
|
|
Basic
|
(0.29)
|
|
(0.41)
|
(0.24)
|
(1.59)
|
|
Diluted
|
(0.29)
|
|
(0.41)
|
(0.24)
|
(1.59)
|
Earnings from
discontinued operations per share for Class A and Class B ordinary
shares and per ADS:
|
|
Basic
|
-
|
|
0.08
|
0.16
|
0.30
|
|
Diluted
|
-
|
|
0.07
|
0.15
|
0.29
|
Weighted average
number of Class A and Class B ordinary shares outstanding and ADSs
outstanding:
|
|
Basic
|
89,739,655
|
|
89,180,170
|
89,510,533
|
88,749,432
|
|
Diluted
|
89,739,655
|
|
90,473,173
|
90,073,715
|
91,994,057
|
|
|
|
|
|
|
|
[1]
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).
|
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SOURCE Fang Holdings Limited