BEIJING, Nov. 17, 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 September 30, 2017.
Third Quarter 2017 Highlights
- Total revenues were $112.2
million, a decrease of 55.1% from the corresponding period
in 2016.
- Operating income was $18.4
million. Non-GAAP operating income was
$19.8 million.
- Net income attributable to Fang's shareholders was
$15.2 million. Fully diluted earnings
per ADS were $0.03.
- Non-GAAP net income attributable to Fang's shareholders
was $14.8 million. Non-GAAP fully
diluted earnings per ADS were $0.03.
- Net cash generated from operating activities was
$57.8 million in the third quarter of
2017.
"After seven non-profit quarters, I'm glad that Fang has started
to turn profitable," said Vincent Mo, Chairman and CEO of
Fang. "With our ongoing focus on transformation back to a
technology-driven open platform model, I'm confident that Fang will
return to a sustainable and healthy growth track."
Third Quarter 2017 Results
Revenues
Fang reported total revenues of $112.2
million in the third quarter of 2017, a decrease of 55.1%
from $250.1 million in the
corresponding period of 2016, primarily due to the decline in
e-commerce services revenue by 150.8 million.
Revenue from listing services was $47.2
million in the third quarter of 2017, an increase of 65.6%
from $28.5 million in the
corresponding period of 2016, primarily driven by the increased
number of paying members.
Revenue from marketing services was $37.3
million in the third quarter of 2017, an increase of 4.8%
from $35.6 million in the
corresponding period of 2016.
Revenue from e-commerce services was $16.6 million in the third quarter of 2017, a
decrease of 90.1% from $167.4 million
in the corresponding period of 2016, primarily due to Fang's
transformation back to a technology-driven open platform model.
Revenue from Internet financial services was $3.5 million in the third quarter of 2017, a
decrease of 52.4% from $7.3 million
in the corresponding period of 2016, primarily due to the decreased
transaction volumes of secondary homes.
Revenue from other value-added services was $7.7 million in the third quarter of 2017, a
decrease of 12.1% from $11.4 million
in the corresponding period of 2016.
Cost of Revenue
Cost of revenue was $35.4 million
in the third quarter of 2017, a decrease of 77.4% from $157.0 million in the corresponding period of
2016, primarily driven by the closing of the self-owned brokerage
stores and cost optimization under the open platform model.
Operating Expense
Operating expenses were $58.4
million in the third quarter of 2017, a decrease of 37.2%
from $92.9 million in the
corresponding period of 2016.
Selling expenses were $16.9
million in the third quarter of 2017, a decrease of 70.2%
from $56.7 million for the
corresponding period of 2016, primarily driven by the decrease of
advertising and promotion fee, sales commission fee and staff
cost.
General and administrative expenses were $41.8 million in the third quarter of 2017, an
increase of 15.4% from $36.2 million
for the corresponding period of 2016, primarily due to increased
bad debt and disposal fee related to closing the self-owned
brokerage stores for secondary home transactions.
Operating income
Operating income was $18.4 million
in the third quarter of 2017, compared to $0.2 million in the corresponding period of 2016,
primarily attributable to the agent reduction and effective cost
control.
Income Tax Expenses
Income tax expenses were $4.1
million in the third quarter of 2017, compared to income tax
expenses of $8.0 million in the
corresponding period of 2016.
Net income and EPS
Net income attributable to Fang's shareholders was $15.2 million in the third quarter of 2017,
compared to net loss of $4.9 million
in the corresponding period of 2016. Earnings per fully-diluted
ordinary share and ADS were $0.16 and
$0.03 in the third quarter of 2017,
compared to loss of $0.05 and
$0.01, respectively, in the
corresponding period of 2016.
Adjusted EBITDA
Adjusted EBITDA, defined as non-GAAP net income before income
taxes, interest expenses, interest income, depreciation and
amortization, was $25.6 million in
the third quarter of 2017, compared to $1.6
million in the corresponding period of 2016.
Cash
As of September 30, 2017, Fang had
cash, cash equivalents, and short-term investments of $543.3 million, compared to $590.5 million as of December 31, 2016. Net cash generated from
operating activities was $57.8
million in the third quarter of 2017, compared to cash flow
generated from operating activities of $76.8
million in the same period of 2016. The decrease of cash
generated from operating activities was primarily due to the
reclassification of certain loan receivable to investment
activities compared to the third quarter of 2016.
Business Outlook
Fang is continuing its transformation back to a
technology-driven open platform model and expects a profitable
fourth quarter.
This forecast does not assume significant adverse market
development during the fourth quarter of 2017 and reflects Fang's
current and preliminary views, which are 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 (9:00 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 November 17, 2017 through 7:59
ET November 25, 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:
|
3384709
|
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 651 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 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.
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 in this press release the following
measures defined as non-GAAP financial measures by the United
States Securities and Exchange Commission: (1) non-GAAP operating
(loss)/income, (2) non-GAAP net (loss)/income and (3) non-GAAP
basic and diluted (loss)/earnings per ordinary share and per ADS
(4) 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, please 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 (1) may not be indicative of Fang's recurring core business
operating results or (2) 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
accompanying tables have more details on the reconciliation between
non-GAAP financial measures and their most directly comparable GAAP
financial measures.
For investor and media inquiries, please contact:
Dr. Hua Lei
CFO
Phone: +86-10-5631-8661
Email: leihua@fang.com
Ms. Dana Cheng
Senior Manager, Investor Relations
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
|
September
30,
|
December
31,
|
|
2017
|
2016
|
Current
assets:
|
(Unaudited)
|
(Audited)
|
Cash and cash
equivalents
|
153,176
|
336,528
|
Restricted cash,
current
|
290,367
|
211,084
|
Short-term
investments
|
99,740
|
42,929
|
Accounts receivable,
net
|
62,482
|
93,672
|
Funds receivable
|
28,079
|
20,483
|
Prepayment and other current
assets
|
48,692
|
39,824
|
Commitment
deposits
|
504
|
6,527
|
Loan receivable,
current
|
92,274
|
41,966
|
Amount due from related
parties
|
294
|
197
|
Total current
assets
|
775,608
|
793,210
|
Non-current
assets:
|
|
|
Property and equipment,
net
|
553,487
|
319,897
|
Loan receivable,
non-current
|
17,152
|
16,808
|
Deferred tax assets,
non-current
|
6,668
|
4,915
|
Deposit for non-current
assets
|
147,740
|
240,712
|
Long-term
investments
|
466,896
|
231,880
|
Other non-current
assets
|
2,323
|
7,391
|
Total non-current
assets
|
1,194,266
|
821,603
|
Total
assets
|
1,969,874
|
1,614,813
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
Current
liabilities:
|
|
|
Short-term loans
|
277,544
|
212,734
|
Deferred revenue
|
153,278
|
129,765
|
Accrued expenses and other
liabilities
|
286,018
|
318,540
|
Customers' refundable
fees
|
22,574
|
28,630
|
Income tax
payable
|
13,414
|
6,022
|
Total current
liabilities
|
752,828
|
695,691
|
Non-current
liabilities:
|
|
|
Long-term loans
|
75,895
|
65,190
|
Convertible senior
notes
|
296,598
|
295,268
|
Deferred tax liabilities,
non-current
|
124,077
|
70,424
|
Other non-current
liabilities
|
434
|
415
|
Total non-current
liabilities
|
497,004
|
431,297
|
Total
Liabilities
|
1,249,832
|
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, and 64,248,253 shares and
70,736,054 shares issued and outstanding
as
at September 30, 2017 and December 31,
2016, respectively
|
9,181
|
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 September
30,
2017 and December 31, 2016
respectively
|
3,124
|
3,124
|
Treasure stock
|
(136,615)
|
(136,615)
|
Additional paid-in
capital
|
496,648
|
488,943
|
Accumulated other
comprehensive income
|
142,023
|
(81,349)
|
Retained earnings
|
204,994
|
203,870
|
Total Fang
Holdings Limited shareholders' equity
|
719,355
|
487,130
|
Non-controlling
interests
|
687
|
695
|
Total
equity
|
720,042
|
487,825
|
TOTAL LIABILITIES
AND EQUITY
|
1,969,874
|
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
|
|
September
30,
|
|
September
30,
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
Revenues:
|
|
|
|
Listing services
|
47,175
|
|
28,493
|
Marketing
services
|
37,265
|
|
35,574
|
E-commerce
services
|
16,574
|
|
167,413
|
Financial
services
|
3,461
|
|
7,267
|
Other value-added services
and other services
|
7,708
|
|
11,380
|
Total
revenues
|
112,183
|
|
250,127
|
|
|
|
|
Cost of
Revenues:
|
|
|
|
Cost of services
|
(35,443)
|
|
(157,001)
|
Total Cost of
Revenues
|
(35,443)
|
|
(157,001)
|
|
|
|
|
Gross
Profit
|
76,740
|
|
93,126
|
|
|
|
|
Operating expenses
and income:
|
|
|
Selling expenses
|
(16,921)
|
|
(56,729)
|
General and administrative expenses
|
(41,758)
|
|
(36,177)
|
Other income
|
302
|
|
-
|
|
|
|
|
Operating
Income (loss)
|
18,363
|
|
220
|
Foreign exchange gain
(loss)
|
(1)
|
|
(8,390)
|
Interest
income
|
3,196
|
|
2,010
|
Interest
expense
|
(4,538)
|
|
(4,071)
|
Investment
income
|
1,857
|
|
11,453
|
Government grants
|
480
|
|
1,862
|
Income
(loss) before income taxes and non-controlling
interests
|
19,357
|
|
3,084
|
Income tax
expenses
|
|
|
|
Income tax expenses
|
(4,124)
|
|
(8,032)
|
Net income
(loss)
|
15,233
|
|
(4,848)
|
Net income (loss) attributable to noncontrolling
interests
|
-
|
|
1
|
Net income
(loss) attributable to Fang Holdings Limited
shareholders
|
15,233
|
|
(4,849)
|
Other
comprehensive income (loss), net of tax
|
|
Foreign currency Translation
|
17,739
|
|
41,804
|
Amounts reclassified from accumulated other
comprehensive income
|
(801)
|
|
-
|
Unrealized gain on available-for-sale
security
|
102,032
|
|
1,197
|
Loss on intra-entity foreign transactions of long-term-
investment nature
|
1,544
|
|
-
|
Total other
comprehensive income (loss), net of tax
|
120,514
|
|
43,001
|
Comprehensive income
(loss)
|
135,747
|
|
38,052
|
Earnings/(loss)
per share for Class A and Class B ordinary shares:
|
Basic
|
0.17
|
|
(0.05)
|
Diluted
|
0.16
|
|
(0.05)
|
Earnings/(loss)
per ADS:
|
|
|
|
Basic
|
0.03
|
|
(0.01)
|
Diluted
|
0.03
|
|
(0.01)
|
Weighted average
number of Class A and Class B ordinary shares
outstanding:
|
Basic
|
88,486,099
|
|
93,798,520
|
Diluted
|
94,093,312
|
|
93,798,520
|
Weighted average
number of ADSs outstanding:
|
|
Basic
|
442,430,494
|
|
468,992,600
|
Diluted
|
470,466,562
|
|
468,992,600
|
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
|
|
September
30,
|
|
September
30,
|
|
2017
|
|
2016
|
GAAP income from
operations
|
18,363
|
|
220
|
Share-based compensation
expense
|
1,390
|
|
2,223
|
Non-GAAP income from
operations
|
19,753
|
|
2,443
|
|
|
|
|
GAAP net
income
|
15,233
|
|
(4,948)
|
Investment income
|
(1,857)
|
|
(11,453)
|
Share-based compensation
expense
|
1,390
|
|
2,233
|
Non-GAAP net
income
|
14,766
|
|
(14,178)
|
|
|
|
|
Net Income attributable
to Fang shareholders
|
15,233
|
|
(4,949)
|
Investment
income
|
(1,857)
|
|
(11,453)
|
Share-based compensation
expense
|
1,390
|
|
2,233
|
Non-GAAP net Income
attributable to Fang
Holdings Limited
shareholders
|
14,766
|
|
(14,179)
|
|
|
|
|
GAAP earnings per share
for Class A and Class B ordinary
shares:
|
|
|
Basic
|
0.17
|
|
(0.05)
|
Diluted
|
0.16
|
|
(0.05)
|
GAAP earnings per
ADS:
|
|
|
|
Basic
|
0.03
|
|
(0.01)
|
Diluted
|
0.03
|
|
(0.01)
|
Non-GAAP earnings per
share for Class A and Class B
ordinary shares:
|
|
|
Basic
|
0.17
|
|
(0.15)
|
Diluted
|
0.16
|
|
(0.15)
|
Non-GAAP earnings per
share for Class A and Class B
ordinary shares:
|
|
|
Basic
|
0.03
|
|
(0.03)
|
Diluted
|
0.03
|
|
(0.03)
|
Weighted average number
of Class A and Class B ordinary
shares outstanding:
|
Basic
|
88,486,099
|
|
93,789,520
|
Diluted
|
94,093,312
|
|
93,789,520
|
Weighted average
number of ADSs outstanding:
|
|
|
Basic
|
442,430,494
|
|
468,992,600
|
Diluted
|
470,466,562
|
|
468,992,600
|
|
|
|
|
Non-GAAP net
income
|
14,766
|
|
(14,178)
|
Add
back:
|
|
|
|
Interest expense
|
4,538
|
|
4,071
|
Income tax
expenses
|
4,124
|
|
8,032
|
Depreciation
expenses
|
5,398
|
|
5,672
|
Subtract:
|
|
|
|
Interest income
|
(3,196)
|
|
(2,010)
|
Adjusted
EBITDA
|
25,630
|
|
1,587
|
View original
content:http://www.prnewswire.com/news-releases/fang-announces-third-quarter-2017-results-300558479.html
SOURCE Fang Holdings Limited