BEIJING, Nov. 18, 2019 /PRNewswire/ -- Fang Holdings
Limited (NYSE: SFUN) ("Fang" or the "Company"), a leading real
estate Internet portal in China,
today announced (i) its unaudited financial results for the third
quarter ended September 30, 2019,
(ii) a change in its board of directors (the "Board") and (iii) its
2019 annual general meeting of shareholders to be held on
December 20, 2019 at 10:00 a.m. (local time) at Fang's Beijing headquarters.
Third Quarter 2019 Highlights
- Total revenues were $67.6
million, an increase of 11.8% from $60.4 million in the corresponding period of
2018.
- Operating income from continuing operations was
$26.7 million, an increase of 164.8%
from $10.1 million in the
corresponding period of 2018.
- Net income was $0.7
million, a decrease of 92.8% from $10.2 million in the corresponding period of
2018.
"Our marketing and leads generation services continued to
generate growth for our business," commented Mr. Jian Liu, CEO of Fang. "The main drivers behind
this growth are our emphasis on new technology and data-driven
applications. We are optimistic for the remainder of the year as
well as next year, as we continue our focus on the core internet
marketing, listing, and leads generation business lines."
Third Quarter 2019 Results
Revenues
Fang reported total revenues of $67.6
million in the third quarter of 2019, an increase of 11.8%
from $60.4 million in the
corresponding period of 2018, mainly due to the increase in
revenues from marketing and leads generation services.
- Revenue from marketing services was $30.0 million in the third quarter of 2019, an
increase of 16.1% from $25.8 million
in the corresponding period of 2018, driven by Fang's efforts in
customer development.
- Revenue from listing services was $19.4 million in the third quarter of 2019, a
decrease of 3.7% from $20.2 million
in the corresponding period of 2018.
- Revenue from leads generation services was $14.1 million in the third quarter of 2019, an
increase of 181.0% from $5.0 million
in the corresponding period of 2018, driven by the increased
effectiveness of the service and customer development.
- Revenue from financial services was $1.7 million in the third quarter of 2019, a
decrease of 69.7% from $5.6 million
in the corresponding period of 2018, due to a decrease in average
loan receivable balances.
Cost of Revenue
Cost of revenue was $5.7 million
in the third quarter of 2019, a decrease of 59.3% from $14.0 million in the corresponding period of
2018, primarily due to optimization in cost structure.
Operating Expenses
Operating expenses were $35.1
million in the third quarter of 2019, a decrease of 3.2%
from $36.3 million in the
corresponding period of 2018, mainly due to the decrease in staff
costs.
- Selling expenses were $14.8
million in the third quarter of 2019, a decrease of 10.7%
from $16.6 million in the
corresponding period of 2018.
- General and administrative expenses were $21.7 million in the third quarter of 2019, a
decrease of 7.1% from $23.4 million
in the corresponding period of 2018.
Operating Income from Continuing Operations
Operating income from continuing operations was $26.7 million in the third quarter of 2019, an
increase of 164.8% from $10.1 million
in the corresponding period of 2018.
Change in Fair Value of Securities
Change in fair value of securities for the third quarter of 2019
was a loss of $26.1 million, compared
to a loss of $10.9 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 $0.1
million in the third quarter of 2019, a decrease of 97.8%
compared to income tax benefits of $5.4
million in the corresponding period of 2018.
Net Income
Net income was $0.7 million in the
third quarter of 2019, a decrease of 92.8% compared to net income
of $10.2 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.
Recent Developments
Board Changes
Mr. Qian Zhao has resigned from
the Board, effective from November 18,
2019. Mr. Zhao's resignation did not result from any
disagreement with the Company on any matter relating to the
Company's operations, policies or practices. Fang thanks Mr. Zhao
for his efforts and contributions to the Company.
Fang has appointed Ms. Hong Qin
as an independent director of the Board, a member of the audit
committee, a member of the compensation committee, and a member and
the chair of the nominating and corporate governance committee of
the Board, effective from November 18, 2019.
Ms. Hong Qin has extensive real
estate policy research experience. Ms. Qin is a senior research fellow at the
National Institute of Development and Strategy of Renmin University
of China since May 2019. Ms. Qin worked at the Policy Research
Center of the Ministry of Housing and Urban-Rural Development of
the PRC from May 1992 to April 2019, where she served in various positions
and was the director from October
2011 to April 2019. Ms. Qin received a bachelor's degree from
Shandong University of Finance and
Economics in business economics in 1985 and a master's degree from
the Chinese Academy of Social Sciences in urban economics in
1988.
Fang to Hold 2019 Annual General
Meeting on December 20,
2019
Fang will hold its 2019 annual general meeting of shareholders
at Fang's Beijing headquarters at
Tower A, No. 20 Guogongzhuang Middle Street, Fengtai District,
Beijing 100070, People's Republic of China on December 20, 2019 at 10:00
a.m. (local time).
The proposals to be submitted for shareholders' approval at the
annual general meeting are (i) the re-election of Mr. Howard Huyue
Zhang as an independent director of the Board and a member and the
chair of the audit committee of the Board, and (ii) the re-election
of Ms. Hong Qin as an independent
director of the Board, a member of the audit committee, a member of
the compensation committee, and a member and the chair of the
nominating and corporate governance committee of the Board.
November 21, 2019 is the record
date (the "Record Date") for determining the shareholders entitled
to receive notice of the annual general meeting or any adjournment
or postponement thereof. Holders of record of the Company's
ordinary shares at the close of business on the Record Date are
entitled to attend the annual general meeting and any adjournment
or postponement thereof in person.
Conference Call
Information
Fang's management team will host a
conference call on the same day at 7:00
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
10:00 AM ET on November 18, 2019 through 7:59 AM ET November 26,
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:
|
4498166
|
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
|
September
30,
|
December
31,
|
|
|
2019
|
2018
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
214,417
|
171,183
|
|
|
Restricted cash,
current
|
214,943
|
245,474
|
|
|
Short-term
investments
|
48,739
|
16,043
|
|
|
Accounts receivable,
net
|
74,176
|
58,687
|
|
|
Funds
receivable
|
7,298
|
5,474
|
|
|
Prepayment and other
current assets
|
26,251
|
27,894
|
|
|
Commitment
deposits
|
185
|
191
|
|
|
Loans receivable,
current
|
40,749
|
117,602
|
|
|
Current assets of
discontinued operations
|
-
|
26,289
|
|
Total current
assets
|
626,758
|
668,837
|
|
Non-current
assets:
|
|
|
|
|
Property and
equipment, net
|
693,588
|
727,739
|
|
|
Land use
rights
|
31,551
|
33,153
|
|
|
Loans receivable,
non-current
|
-
|
6,249
|
|
|
Deferred tax
assets
|
1,780
|
2,202
|
|
|
Deposits for
non-current assets
|
395
|
902
|
|
|
Restricted cash,
non-current portion
|
38,965
|
6,990
|
|
|
Long-term
investments
|
334,318
|
373,233
|
|
|
Other non-current
assets
|
12,198
|
4,558
|
|
|
Non-current assets of
discontinued operations
|
-
|
573
|
|
Total non-current
assets
|
1,112,795
|
1,155,599
|
|
Total
assets
|
1,739,553
|
1,824,436
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term
loans
|
262,022
|
297,811
|
|
|
Deferred
revenue
|
130,674
|
142,473
|
|
|
Accrued expenses and
other liabilities
|
107,405
|
118,925
|
|
|
Customers' refundable
fees
|
4,233
|
3,976
|
|
|
Income tax
payable
|
14,367
|
2,383
|
|
|
Amounts due to
related parties
|
271
|
19
|
|
|
Current liabilities
of discontinued operations
|
-
|
35,326
|
|
Total current
liabilities
|
518,972
|
600,913
|
|
Non-current
liabilities:
|
|
|
|
|
Long-term
loans
|
146,762
|
123,215
|
|
|
Convertible senior
notes
|
253,021
|
254,435
|
|
|
Deferred tax
liabilities
|
84,404
|
97,578
|
|
|
Other non-current
liabilities
|
125,317
|
150,837
|
|
|
Non-current
liabilities of discontinued operations
|
-
|
2,258
|
|
Total non-current
liabilities
|
609,504
|
628,323
|
|
Total
Liabilities
|
1,128,476
|
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 September 30, 2019: 72,069,645
and
71,775,686;
outstanding shares as of December 31, 2018 and September 30,
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
September 30, 2019, respectively
|
3,124
|
3,124
|
|
|
Treasury
stock
|
(123,226)
|
(136,615)
|
|
|
Additional paid-in
capital
|
523,984
|
517,802
|
|
|
Accumulated other
comprehensive loss
|
(100,668)
|
(75,837)
|
|
|
Retained
earnings
|
297,925
|
276,746
|
|
Total Fang
Holdings Limited shareholders' equity
|
610,383
|
594,506
|
|
|
Non controlling
interests
|
694
|
694
|
|
Total
equity
|
611,077
|
595,200
|
|
TOTAL LIABILITIES
AND EQUITY
|
1,739,553
|
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
|
|
|
|
|
|
|
September
30,
|
September
30,
|
|
|
|
|
|
|
2019
|
2018
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Marketing
services
|
|
|
|
29,993
|
25,843
|
|
|
Listing
services
|
|
|
|
19,438
|
20,175
|
|
|
Leads generation
services
|
|
|
|
14,099
|
5,017
|
|
|
Value-added
services
|
|
|
|
1,514
|
1,524
|
|
|
Financial
services
|
|
|
|
1,710
|
5,644
|
|
|
E-commerce
services
|
|
|
|
796
|
2,217
|
|
Total
revenues
|
|
|
|
67,550
|
60,420
|
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
Cost of
services
|
|
|
|
(5,694)
|
(14,035)
|
|
Total cost of
revenues
|
|
|
|
(5,694)
|
(14,035)
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
|
61,856
|
46,385
|
|
|
|
|
|
|
|
|
|
Operating expenses
and income:
|
|
|
|
|
|
|
Selling
expenses
|
|
|
|
(14,822)
|
(16,606)
|
|
|
General and
administrative expenses
|
|
|
|
(21,688)
|
(23,355)
|
|
|
Other
income
|
|
|
|
1,385
|
3,670
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
|
26,731
|
10,094
|
|
|
Foreign exchange
loss
|
|
|
|
832
|
195
|
|
|
Interest
income
|
|
|
|
1,562
|
2,353
|
|
|
Interest
expense
|
|
|
|
(5,185)
|
(5,657)
|
|
|
Investment income,
net
|
|
|
|
2,068
|
918
|
|
|
Realized gain on sale
of available-for-sale securities
|
|
|
|
711
|
252
|
|
|
Change in fair value
of securities
|
|
|
|
(26,148)
|
(10,880)
|
|
|
Government
grants
|
|
|
|
44
|
26
|
|
|
Other non-operating
loss
|
|
|
|
-
|
442
|
|
Income (Loss)
before income taxes and noncontrolling interests from continuing
operations
|
|
|
|
615
|
(2,257)
|
|
Income tax
benefits
|
|
|
|
|
|
|
|
Income tax
benefits
|
|
|
|
117
|
5,356
|
|
Net income from
continuing operations, net of income taxes
|
|
|
|
732
|
3,099
|
|
Income from
discontinued operations, net of income taxes
|
|
|
|
-
|
7,125
|
|
Net income
|
|
|
|
732
|
10,224
|
|
|
Net income
attributable to noncontrolling interests
|
|
|
|
-
|
-
|
|
Net income
attributable to Fang Holdings Limited shareholders
|
|
|
|
732
|
10,224
|
|
Earnings per share
for Class A and Class B ordinary shares and per ADS:
|
|
|
|
|
Basic
|
|
|
|
0.01
|
0.11
|
|
|
Diluted
|
|
|
|
0.01
|
0.11
|
|
Earnings from
continuing operations per share for Class A and Class B ordinary
shares and per ADS:
|
|
Basic
|
|
|
|
0.01
|
0.03
|
|
|
Diluted
|
|
|
|
0.01
|
0.03
|
|
Earnings from
discontinued operations per share for Class A and Class B ordinary
shares and per ADS:
|
|
Basic
|
|
|
|
-
|
0.08
|
|
|
Diluted
|
|
|
|
-
|
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[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).
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SOURCE Fang Holdings Limited