BEIJING, June 4, 2020 /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 first
quarter ended March 31, 2020, and
(ii) a change in board of directors (the "Board").
First Quarter 2020 Highlights
- Total revenues were $38.3
million, an increase of 9.4% from $35.0 million in the corresponding period of
2019.
- Operating income from continuing operations was
$2.7 million, compared to an
operating loss from continuing operations of $11.8 million in the corresponding period of
2019.
- Net loss from continuing
operations was $39.1
million, compared to a net income from continuing operations of $5.1 million in the corresponding period of
2019.
"During the COVID-19 global
pandemic, Fang achieved positive operating income in the first
quarter of 2020," commented Mr. Jian
Liu, CEO of Fang. "Our leads generation services remain a
strong growth contributor to our core business. For the coming
quarters we look forward to continuing our focus on new initiatives
such as live broadcastings, online exhibitions and VR livestreams
to better service our customers."
First Quarter 2020 Financial Results
Revenues
Fang reported total revenues of $38.3
million in the first quarter of 2020, an increase of 9.4%
from $35.0 million in the
corresponding period of 2019.
- Revenue from marketing services was $17.3 million in the first quarter of 2020, an
increase of 30.3% from $13.3 million
in the corresponding period of 2019, mainly due to the increase in
aggregate market demand.
- Revenue from listing services was $10.2 million in the first quarter of 2020, a
decrease of 16.0% from $12.2 million
in the corresponding period of 2019, mainly due to the decrease in
the number of paying customers.
- Revenue from leads generation services was $7.5 million in the first quarter of 2020, an
increase of 88.6% from $4.0 million
in the corresponding period of 2019, mainly due to an increased
acceptance and popularity of our leads generation services.
- Revenue from financial services was $1.7 million in the first quarter of 2020, a
decrease of 50.7% from $3.5 million
in the corresponding period of 2019, mainly due to the decrease in
average loan receivable balance.
Cost of Revenue
Cost of revenue was $5.4 million
in the first quarter of 2020, a decrease of 35.9% from $8.4 million in the corresponding period of 2019,
primarily due to the decline in sales and the optimization in
cost structure.
Operating Expenses
Operating expenses were $32.1
million in the first quarter of 2020, a decrease of 17.0%
from $38.7 million in the
corresponding period of 2019.
- Selling expenses were $13.6
million in the first quarter of 2020, a decrease of 16.9%
from $16.3 million in the
corresponding period of 2019, mainly due to the decrease in staff
related costs.
- General and administrative expenses were $18.6 million in the first quarter of 2020, a
decrease of 17.1% from $22.4 million
in the corresponding period of 2019, mainly due to the decrease in
staff related costs.
Operating Income/(Loss) from Continuing Operations
Operating income from continuing operations was $2.7 million in the first quarter of 2020,
compared to operating loss from continuing operations of
$11.8 million in the corresponding
period of 2019.
Change in Fair Value of Securities
Change in fair value of securities for the first quarter of 2020
was a loss of $42.6 million, compared
to a gain of $32.0 million in the
corresponding period of 2019, mainly due to the fluctuation in
market price of investments in equity securities.
Income Tax Benefits/Expenses
Income tax benefits were $2.5
million in the first quarter of 2020, compared to an expense
of $11.1 million in the corresponding
period of 2019.
Net (Loss)/income from
continuing operations
Net loss from continuing
operations was $39.1
million in the first quarter of 2020, compared to a net
income from continuing
operations of $5.1
million in the corresponding period of 2019.
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.
Recent Developments
Change in Board of Directors
Ms. Hong Qin, an independent director of the
Board, has resigned from the Board for personal reason,
effective from June 5, 2020. Ms. Qin'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 Ms. Qin for her efforts and contributions to the
Company.
Fang has appointed Mr. Charles Changming Yan as an
independent director of the Board, a member of the audit committee
and the compensation committee of the Board, and a member and the
chair of the nominating and corporate governance committee of the
Board, effective from June 5, 2020. Upon the effectiveness of
Ms. Qin's resignation and Mr. Yan's appointment, the Board will
consist of five directors, including three independent
directors.
Mr. Yan founded Cada Resource International Limited, a company
engaged in high-tech development and mineral resource industry, and
has been its president since 1996. Mr.Yan also serves as the
President of Tsinghua University Alumni Association (Hong Kong). He was the vice chairman of the
Western Returned Scholars Association of China from 2008 to 2013. Mr.Yan had been
awarded as one of the top ten overseas returned entrepreneurs in
China in 2002. Mr. Yan received a
bachelor's degree and a master's degree from Tsinghua University in
engineering and a master's degree from University of Ottawa in
engineering.
Conference Call Information
Fang's management team will host a conference call on the same
day at 8:00 AM U.S. ET (8:00 PM 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
|
1383200#
|
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 (1383200#) and
unique registrant ID. Get prompted 10 min prior to the start of the
conference. Enter the Direct Event Passcode above (1383200#), 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/6379533
A telephone replay of the call will be available after the
conclusion of the conference call from 11:00
AM ET on June 4, 2020 through
9:59 AM ET June 12, 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:
|
6379533
|
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
business development strategies, the impact of the COVID-19 pandemic, 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
|
(in thousands of
U.S. dollars, except share data and per share data)
|
|
ASSETS
|
March
31,
|
March
31,
|
|
|
|
2020
|
2019
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
107,018
|
105,282
|
|
|
Restricted cash,
current
|
215,599
|
219,096
|
|
|
Short-term
investments
|
181,303
|
194,720
|
|
|
Accounts receivable,
net
|
75,379
|
66,379
|
|
|
Funds
receivable
|
4,460
|
8,372
|
|
|
Prepayment and other
current assets
|
37,409
|
31,509
|
|
|
Commitment
deposits
|
185
|
188
|
|
|
Loans receivable,
current
|
60,922
|
60,490
|
|
|
Amounts due from
related parties
|
412
|
644
|
|
Total current
assets
|
682,687
|
686,680
|
|
Non-current
assets:
|
|
|
|
|
Property and
equipment, net
|
629,969
|
644,726
|
|
|
Land use
rights
|
50,731
|
50,731
|
|
|
Deferred tax
assets
|
12,109
|
6,570
|
|
|
Deposits for
non-current assets
|
482
|
618
|
|
|
Restricted cash,
non-current portion
|
41,409
|
42,452
|
|
|
Long-term
investments
|
296,003
|
341,946
|
|
|
Other non-current
assets
|
38,610
|
39,179
|
|
Total non-current
assets
|
1,069,313
|
1,126,222
|
|
Total
assets
|
1,752,000
|
1,812,902
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term bank
borrowings
|
263,045
|
264,624
|
|
|
Bond payable-short
term
|
101,777
|
102,779
|
|
|
Deferred
revenue
|
140,690
|
134,143
|
|
|
Accrued expenses and
other liabilities
|
111,693
|
120,244
|
|
|
Customers' refundable
fees
|
7,755
|
4,981
|
|
|
Income tax
payable
|
4,272
|
4,207
|
|
|
Amounts due to
related parties
|
9,215
|
9,227
|
|
Total current
liabilities
|
638,447
|
640,205
|
|
Non-current
liabilities:
|
|
|
|
|
Long-term bank
borrowings
|
175,881
|
184,158
|
|
|
Convertible senior
notes
|
168,773
|
168,929
|
|
|
Deferred tax
liabilities
|
89,253
|
90,723
|
|
|
Other non-current
liabilities
|
138,179
|
138,435
|
|
|
|
|
|
|
Total non-current
liabilities
|
572,086
|
582,245
|
|
Total
Liabilities
|
1,210,533
|
1,222,450
|
|
|
|
|
|
|
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, 2019 and March 31, 2020: 71,775,686
and
71,775,686; outstanding shares as of December 31, 2019 and March
31,
2020: 65,403,527 and 65,403,527
|
9,244
|
9,244
|
|
|
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, 2019
and March
31, 2020, respectively
|
3,124
|
3,124
|
|
|
Treasury
stock
|
-123,216
|
-123,216
|
|
|
Additional paid-in
capital
|
534,100
|
528,620
|
|
|
Accumulated other
comprehensive loss
|
-113,760
|
-98,371
|
|
|
Retained
earnings
|
231,283
|
270,358
|
|
Total Fang
Holdings Limited shareholders' equity
|
540,775
|
589,759
|
|
|
Non controlling
interests
|
692
|
693
|
|
Total
equity
|
541,467
|
590,452
|
|
TOTAL LIABILITIES
AND EQUITY
|
1,752,000
|
1,812,902
|
|
Unaudited Condensed
Consolidated Statements of Comprehensive
Income[1]
|
(in thousands of
U.S. dollars, except share data and per share data)
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
March
31,
|
March
31,
|
|
|
|
2020
|
2019
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
Marketing
services
|
17,288
|
13,263
|
|
|
Listing
services
|
10,216
|
12,159
|
|
|
Leads generation
services
|
7,518
|
3,986
|
|
|
Value-added
services
|
1,416
|
1,002
|
|
|
Financial
services
|
1,726
|
3,499
|
|
|
E-commerce
services
|
109
|
1,081
|
|
Total
revenues
|
38,273
|
34,990
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
Cost of
services
|
-5,407
|
-8,438
|
|
Total cost of
revenues
|
-5,407
|
-8,438
|
|
|
|
|
|
|
Gross
profit
|
32,866
|
26,552
|
|
|
|
|
|
|
Operating expenses
and income:
|
|
|
|
Selling
expenses
|
-13,561
|
-16,319
|
|
|
General and
administrative expenses
|
-18,556
|
-22,393
|
|
|
Other
income
|
1,914
|
387
|
|
|
|
|
|
|
Operating
income/(loss) from continuing operations
|
2,663
|
-11,773
|
|
|
Foreign exchange
gain/(loss)
|
1,716
|
-262
|
|
|
Interest
income
|
3,923
|
1,689
|
|
|
Interest
expense
|
-8,461
|
-6,045
|
|
|
Investment income,
net
|
822
|
5
|
|
|
Realized gain on sale
of available-for-sale securities
|
-
|
298
|
|
|
Change in fair value
of securities
|
-42,634
|
32,049
|
|
|
Government
grants
|
369
|
235
|
|
|
Other non-operating
loss
|
-
|
-
|
|
Income (Loss)
before income taxes and noncontrolling interests from
continuing
operations
|
-41,602
|
16,196
|
|
|
Income tax
benefits
|
|
|
|
|
Income tax
benefits
|
2,527
|
-11,119
|
|
Net income from
continuing operations, net of income taxes
|
-39,075
|
5,077
|
|
|
Income from
discontinued operations, net of income taxes
|
-
|
8,323
|
|
Net
(loss)/income
|
-39,075
|
13,400
|
|
|
Net income
attributable to noncontrolling interests
|
-
|
-
|
|
Net income
attributable to Fang Holdings Limited shareholders
|
|
|
|
-39,075
|
13,400
|
|
Earnings per share
for Class A and Class B ordinary shares and per ADS:
|
|
|
Basic
|
-0.41
|
0.15
|
|
|
Diluted
|
-0.41
|
0.14
|
|
Earnings
from continuing operations per share for Class A and Class B
ordinary shares and per ADS:
|
|
|
|
Basic
|
-0.41
|
0.06
|
|
|
Diluted
|
-0.41
|
0.05
|
|
Earnings
from discontinued operations per share for Class A and Class B
ordinary shares and per ADS:
|
|
|
|
Basic
|
-
|
0.09
|
|
|
Diluted
|
-
|
0.09
|
|
________________________
[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