BEIJING, June 20, 2017 /PRNewswire/ -- Fang Holdings
Limited (NYSE: SFUN) ("Fang" or "we"), the leading real estate
Internet portal in China, today
announced its unaudited financial results for the fiscal quarter
ended March 31, 2017.
First Quarter 2017 Highlights
- Total revenues were $109.8
million, a decrease of 46.3% from the corresponding period
in 2016.
- Operating loss was $6.1
million. Non-GAAP operating loss was $4.6 million. A description of the adjustments
from GAAP to non-GAAP operating income is detailed in the
Reconciliation Statement following this press release.
- Net loss attributable to Fang's shareholders was
$12.0 million. Fully diluted loss per
ADS was $0.03.
- Non-GAAP net loss attributable to Fang's shareholders
was $10.5 million. Non-GAAP fully
diluted loss per ADS was $0.02. A
description of the adjustments from GAAP to non-GAAP net loss
attributable to Fang's shareholders and fully diluted loss per ADS
is detailed in the Reconciliation Statement following this press
release.
- Net cash used in operating activities was $11.0 million in the first quarter of 2017,
compared to cash flow used in operating activities of $67.2 million in the same period of 2016.
First Quarter 2017 Results
Revenues
Fang reported total revenues of $109.8
million in the first quarter of 2017, a 46.3% decrease from
$204.6 million in the corresponding
period of 2016, primarily due to the decline in e-commerce services
revenue.
Revenue from e-commerce services was $39.9 million in the first quarter of 2017, a
decrease of 69.5% from $130.9 million
in the corresponding period of 2016, primarily due to the decreased
transaction volume generated by a downsized self-owned and operated
brokerage team.
Revenue from marketing services was $27.3
million in the first quarter of 2017, a decrease of 10.2%
from $30.4 million in the
corresponding period of 2016, primarily due to the continued impact
of the tightened government policies affecting the real estate
market in China.
Revenue from listing services was $34.0
million in the first quarter of 2017, an increase of 41.3%
from $24.1 million in the
corresponding period of 2016, primarily driven by the increased
number of paying members.
Revenue from Internet financial services was $2.2 million in the first quarter of 2017, a
decrease of 78.9% from $10.6 million
in the corresponding period of 2016, primarily due to the impact of
the tightened government policies affecting, in particular, the new
home financial services and the decreased secondary transaction
volumes of Fang's own brokerage services.
Revenue from other value-added services was $6.3 million in the first quarter of 2017, a
decrease of 25.9% from $8.5 million
in the corresponding period of 2016, primarily due to the
re-classification accounting treatment of BaoAn's revenue. In the
first quarter of 2016, revenue from other value-added services net
BanAn's revenue was $6.3 million.
Cost of Revenue
Cost of revenue was $60.7 million
in the first quarter of 2017, a decrease of 71.0% from $209.6 million in the corresponding period of
2016, primarily driven by the downsizing of the secondary brokerage
team.
Operating Expense
Operating expenses were $55.2
million in the first quarter of 2017, a decrease of 47.4%
from $105.0 million in the
corresponding period of 2016.
Selling expenses were $23.4
million in the first quarter of 2017, a decrease of 62.0%
from $61.6 million for the
corresponding period of 2016, primarily driven by the decrease of
advertising and promotion fee, as well as the sales commission
fee.
General and administrative expenses were $31.4 million in the first quarter of 2017, a
decrease of 27.7% from $43.4 million
for the corresponding period of 2016, primarily due to the
effective cost control measures.
Operating Loss/Income
Operating loss was $6.1 million in
the first quarter of 2017, compared to operating loss of
$110.0 million in the corresponding
period of 2016, primarily attributable to the downsized e-commerce
services and effective cost control.
Income Tax Expenses
Income tax expenses were $4.8
million in the first quarter of 2017, compared to income tax
expenses of $5.2 million in the
corresponding period of 2016.
Net Loss and EPS
Net loss attributable to Fang's shareholders was $12.0 million in the first quarter of 2017,
compared to net loss of $113.7
million in the corresponding period of 2016. Loss per
fully-diluted ordinary share and ADS were $0.14 and $0.03 in
the first quarter of 2017, compared to loss of $1.20 and $0.24,
respectively, in the corresponding period of 2016.
Cash
As of March 31, 2017, Fang had
cash, cash equivalents, and short-term investments of $542.6 million, compared to $590.5 million as of December 31, 2016. Net cash used in operating
activities was $11.0 million in the
first quarter of 2017, compared to cash flow used in operating
activities of $67.2 million in the
same period of 2016. The decrease in cash flows used operating
activities was primarily due to a $101.7
million decrease of net loss as compared to the first
quarter of 2016.
Business Outlook
The Company is undergoing adjustments to its transformations and
is returning to open-platform strategy. Before these changes are
finalized, the company will see a decrease in its top line
revenue.
Changes of Board Members
Fang has appointed Mr. Jingbo
Wang, partner of IDG, as a director to its board of
directors (the "Board"), and Mr. Mingqiang
Bi, managing director of China International Capital
Corporation (CICC), as an independent director and a member of the
audit committee of the Board. Mr. Shan
Li, Mr. Quan Zhou and Mr.
Sol Trujillo have recently resigned
from the Board due to personal reasons. Fang thanks these former
directors for their efforts and contributions to the company.
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
|
Local
Toll:
|
|
United
States
|
+1 845-675-0437 / +1
866-519-4004
|
Hong
Kong
|
+852 3018-6771 / +852
800-906-601
|
Mainland
China
|
+86 400-620-8038 /
+86 800-819-0121
|
Passcode:
|
SFUN
|
A telephone replay of the call will be available after the
conclusion of the conference call from 11:00
ET on June 20, 2017 through
9:59 ET June
28, 2017. The dial-in details for the telephone replay
are:
International
Toll:
|
+61
2-8199-0299
|
Toll-Free:
|
|
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:
|
38022810
|
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 the leading real estate Internet portal in
China in terms of the number of
page views and visitors to its websites. Through our websites, we
provide e-commerce, marketing, listing, financial and other
value-added services for China's
fast-growing real estate and home furnishing and improvement
sectors. Our 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 about 100 offices to focus on local market
needs and its website and database contains real estate related
content covering more than 629 cities in China. For more information about Fang, please
visit http://ir.fang.com.
About Non-GAAP Financial Measures
To supplement Fang's consolidated financial results presented in
accordance with United States Generally Accepted Accounting
Principles ("GAAP"), Fang uses the following measures defined as
non-GAAP financial measures by the U.S. Securities and Exchange
Commission: non-GAAP operating income/(loss), non-GAAP net
income/(loss), non-GAAP basic and diluted earnings/(loss) per
ordinary share and per ADS, and adjusted EBITDA. The presentation
of the non-GAAP financial information is not intended to be
considered in isolation or as a substitute for the financial
information prepared and presented in accordance with GAAP. For
more information on these non-GAAP financial measures, see the
table captioned "Reconciliation of GAAP and non-GAAP Results" set
forth at the end of this press release.
Fang believes that these non-GAAP financial measures provide
meaningful supplemental information to investors regarding its
operating performance by excluding share-based compensation
expenses and the related tax effects, realized gain on
available-for-sale security, interest income and expenses, income
tax expenses, and depreciation expense for the relevant period,
which may not be indicative of Fang's recurring core business
operating results or are not expected to result in future cash
payments. These non-GAAP financial measures also facilitate
management's internal comparisons to Fang's historical performance
and assist its financial and operational decision making. A
limitation of using these non-GAAP financial measures is that
share-based compensation, interest income and expenses, income tax
expenses, and depreciation expenses have been and will continue to
be a significant recurring expense that will continue to exist in
Fang's business for the foreseeable future. Management compensates
for these limitations by providing specific information regarding
the GAAP amounts excluded from each non-GAAP measure. The table
captioned "Reconciliation of GAAP and non-GAAP Results" has more
details on the reconciliation between non-GAAP financial measures
and their most directly comparable GAAP financial measures.
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 for its online brokerage business to a franchise
model 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.
For investor and media inquiries, please contact:
Dr. Hua Lei
CFO
Phone: +86-10-5631-8661
Email: leihua@fang.com
Ms. Joyce Tang
Senior
Investor Relations Manager
Phone: +86-10-5631 8659
Email: tangjunning@fang.com
Ms. Dana Cheng
Investor
Relations Manager
Phone: +86-10-5631 8174
Email: chengyu.bj@fang.com
Fang Holdings
Limited
|
Condensed
Consolidated Balance Sheets
|
(in thousands of
U.S. dollars, except share data and per share data)
|
|
ASSETS
|
March
31,
|
December
31,
|
|
|
2017
|
2016
|
Current
assets:
|
(Unaudited)
|
(Audited)
|
|
Cash and cash
equivalents
|
248,632
|
336,528
|
|
Restricted cash,
current
|
211,201
|
211,084
|
|
Short-term
investments
|
82,724
|
42,929
|
|
Accounts receivable,
net
|
80,098
|
93,672
|
|
Funds
receivable
|
29,139
|
20,483
|
|
Prepayment and other
current assets
|
41,289
|
39,824
|
|
Commitment
deposits
|
6,082
|
6,527
|
|
Loan receivable,
current
|
37,087
|
41,966
|
|
Amount due from
related parties
|
190
|
197
|
Total current
assets
|
736,442
|
793,210
|
Non-current
assets:
|
|
|
|
Property and
equipment, net
|
542,822
|
319,897
|
|
Loan receivable,
non-current
|
13,629
|
16,808
|
|
Deferred tax assets,
non-current
|
5,172
|
4,915
|
|
Deposit for
non-current assets
|
48,987
|
240,712
|
|
Long-term
investments
|
232,411
|
231,880
|
|
Other non-current
assets
|
4,282
|
7,391
|
Total non-current
assets
|
847,303
|
821,603
|
Total
assets
|
1,583,745
|
1,614,813
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
Current
liabilities:
|
|
|
|
Short-term
loans
|
200,994
|
212,734
|
|
Deferred
revenue
|
136,420
|
129,765
|
|
Accrued expenses and
other liabilities
|
291,859
|
318,540
|
|
Customers' refundable
fees
|
26,725
|
28,630
|
|
Income tax
payable
|
6,692
|
6,022
|
Total current
liabilities
|
662,690
|
695,691
|
Non-current
liabilities:
|
|
|
|
Long-term
loans
|
75,144
|
65,190
|
|
Convertible senior
notes
|
295,691
|
295,268
|
|
Deferred tax
liabilities, non-current
|
70,081
|
70,424
|
|
Other non-current
liabilities
|
417
|
415
|
Total non-current
liabilities
|
441,333
|
431,297
|
Total
Liabilities
|
1,104,023
|
1,126,988
|
|
|
|
|
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, 2016 and March 31, 2017:
71,077,816 and 71,132,306, outstanding shares as
of December 31, 2016 and March 31, 2017:
64,012,758 and 64,027,989
|
9,161
|
9,157
|
|
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
March 31, 2017 and December 31, 2016 respectively
|
3,124
|
3,124
|
|
Treasure
stock
|
(136,615)
|
(136,615)
|
|
Additional paid-in
capital
|
489,241
|
488,943
|
|
Accumulated other
comprehensive income
|
(77,717)
|
(81,349)
|
|
Retained
earnings
|
191,853
|
203,870
|
Total Fang
Holdings Limited shareholders' equity
|
479,047
|
487,130
|
|
Non-controlling
interests
|
675
|
695
|
Total
equity
|
479,722
|
487,825
|
TOTAL LIABILITIES
AND EQUITY
|
1,583,745
|
1,614,813
|
|
|
|
|
Fang Holdings
Limited
|
Condensed Consolidated
Statements of Comprehensive Income
|
(in thousands of
U.S. dollars, except share data and per share data)
|
|
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
March
31,
|
|
|
2017
|
|
2016
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Revenues:
|
|
|
|
|
E-commerce services
|
39,890
|
|
130,904
|
|
Marketing services
|
27,335
|
|
30,432
|
|
Listing
services
|
34,043
|
|
24,086
|
|
Financial services
|
2,247
|
|
10,625
|
|
Other
value-added services
and other services
|
6,288
|
|
8,576
|
Total
revenues
|
109,803
|
|
204,623
|
|
|
|
|
|
Cost of
Revenues:
|
|
|
|
|
Cost of
services
|
(60,726)
|
|
(209,643)
|
Total Cost
of Revenues
|
(60,726)
|
|
(209,643)
|
|
|
|
|
|
Gross
Profit
|
49,077
|
|
(5,020)
|
|
|
|
|
|
Operating
expenses and income:
|
|
|
|
Selling
expenses
|
(23,411)
|
|
(61,597)
|
|
General and
administrative
expenses
|
(31,383)
|
|
(43,377)
|
|
Other
income
|
(403)
|
|
-
|
Operating
Income (loss)
|
(6,120)
|
|
(109,994)
|
|
Foreign
exchange gain (loss)
|
213
|
|
(35)
|
|
Other-than-temporary
impairment on available-for-sale
securities
|
(951)
|
|
-
|
|
Interest
income
|
2,724
|
|
3,513
|
|
Interest
expense
|
(3,841)
|
|
(4,610)
|
|
Government grants
|
767
|
|
2,600
|
Income
(loss) before income taxes and noncontrolling
interests
|
(7,208)
|
|
(108,526)
|
Income tax
expenses
|
|
|
|
|
Income
tax expenses
|
(4,809)
|
|
(5,174)
|
Net income
(loss)
|
(12,017)
|
|
(113,700)
|
|
Net
income attributable to
noncontrolling interests
|
-
|
|
(2)
|
Net income
(loss) attributable to Fang Holdings Limited
shareholders
|
(12,017)
|
|
(113,698)
|
Other
comprehensive income (loss), net of tax
|
|
|
|
Foreign
currency Translation
|
3,119
|
|
(1,153)
|
|
Amounts
reclassified from
accumulated other
comprehensive income
|
-
|
|
-
|
|
Unrealized gain
on available-
for-sale security
|
513
|
|
(4,783)
|
Total other
comprehensive income (loss), net of tax
|
3,632
|
|
(5,936)
|
Comprehensive income
(loss)
|
(8,385)
|
|
(119,634)
|
Earnings per
share for Class A and Class B ordinary shares
|
|
Basic
|
(0.14)
|
|
(1.20)
|
|
Diluted
|
(0.14)
|
|
(1.20)
|
Earnings per
ADS
|
|
|
|
|
Basic
|
(0.03)
|
|
(0.24)
|
|
Diluted
|
(0.03)
|
|
(0.24)
|
Weighted
average number of Class A and Class B ordinary shares
outstanding:
|
|
Basic
|
88,364,639
|
|
95,075,704
|
|
Diluted
|
88,364,639
|
|
95,075,704
|
Weighted
average number of ADSs outstanding:
|
|
|
|
Basic
|
441,823,194
|
|
475,378,522
|
|
Diluted
|
441,823,194
|
|
475,378,522
|
|
|
|
|
|
Fang Holdings
Limited
|
Reconciliation of
GAAP and Non-GAAP Results
|
( in thousands of
U.S. dollars, except share data and per share data)
|
|
|
Three months
ended
|
|
|
March
31,
|
|
March
31,
|
|
|
2017
|
|
2016
|
|
GAAP income from
operations
|
(6,120)
|
|
(109,994)
|
|
Share-based
compensation
expense
|
1,539
|
|
2,075
|
|
Non-GAAP income
from
operations
|
(4,581)
|
|
(107,919)
|
|
|
|
|
|
|
GAAP net
income
|
(12,017)
|
|
(113,700)
|
|
Share-based
compensation
expense
|
1,539
|
|
2,075
|
|
Non-GAAP net
income
|
(10,478)
|
|
(111,625)
|
|
|
|
|
|
|
Net Income
attributable to
Fang shareholders
|
(12,017)
|
|
(113,698)
|
|
Share-based
compensation
expense
|
1,539
|
|
2,075
|
|
Non-GAAP net
Income
attributable to Fang Holdings
Limited shareholders
|
(10,478)
|
|
(111,623)
|
|
|
|
|
|
|
GAAP earnings per
share for
Class A and Class B ordinary
shares:
|
|
|
|
|
Basic
|
(0.14)
|
|
(1.20)
|
|
Diluted
|
(0.14)
|
|
(1.20)
|
|
GAAP earnings per
ADS:
|
|
|
|
|
Basic
|
(0.03)
|
|
(0.24)
|
|
Diluted
|
(0.03)
|
|
(0.24)
|
|
Non-GAAP earnings per
share for
Class A and Class B ordinary
shares:
|
|
|
|
|
Basic
|
(0.12)
|
|
(1.17)
|
|
Diluted
|
(0.12)
|
|
(1.17)
|
Non-GAAP
earnings per ADS:
|
|
|
|
|
Basic
|
(0.02)
|
|
(0.23)
|
|
Diluted
|
(0.02)
|
|
(0.23)
|
|
Weighted average
number of
Class A and Class B ordinary
shares outstanding:
|
|
|
|
|
Basic
|
88,364,639
|
|
95,075,704
|
|
Diluted
|
88,364,639
|
|
95,075,704
|
Weighted average
number of ADSs outstanding:
|
|
|
|
Basic
|
441,823,194
|
|
475,378,522
|
|
Diluted
|
441,823,194
|
|
475,378,522
|
|
|
|
|
|
|
Non-GAAP Net
income
|
(10,478)
|
|
(111,625)
|
Add
back:
|
|
|
|
|
Interest
expense
|
3,841
|
|
4,610
|
|
Income tax
expenses
|
4,809
|
|
5,174
|
|
Depreciation
expenses
|
5,557
|
|
5,045
|
Subtract:
|
|
|
|
|
Interest
income
|
(2,724)
|
|
(3,513)
|
|
Adjusted
EBITDA
|
1,005
|
|
(100,309)
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/fang-announces-first-quarter-2017-results-300476543.html
SOURCE Fang Holdings Limited