BEIJING, Nov. 13, 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 third
quarter ended September 30, 2020.
Third Quarter 2020 Highlights
- Total revenues were $56.7
million, a decrease of 16.1% from $67.6 million in the corresponding period of
2019.
- Operating income from continuing operations was
$17.7 million, a decrease of 33.7%
from $26.7 million in the
corresponding period of 2019.
- Net income was $10.9
million, an increase of 1,393.3% from $0.7 million in the corresponding period of
2019.
Third Quarter 2020 Financial Results
Revenues
Fang reported total revenues of $56.7
million in the third quarter of 2020, a decrease of 16.1%
from $67.6 million in the
corresponding period of 2019, mainly due to the decrease in
revenues from listing services.
- Revenue from marketing services was $30.3 million in the third quarter of 2020, which
remained relatively stable with $30.0
million in the corresponding period of 2019.
- Revenue from listing services was $10.1 million in the third quarter of 2020, a
decrease of 48.2% from $19.4 million
in the corresponding period of 2019, mainly due to the decrease in
the number of paying customer.
- Revenue from leads generation services was $12.9 million in the third quarter of 2020, a
decrease of 8.2% from $14.1 million
in the corresponding period of 2019.
- Revenue from financial services was $1.9 million in the third quarter of 2020, an
increase of 9.0% from $1.7 million in
the corresponding period of 2019, mainly due to an increase in
average loan receivable balances.
Cost of Revenue
Cost of revenue was $5.1 million
in the third quarter of 2020, a decrease of 11.0% from $5.7 million in the corresponding period of 2019,
primarily due to optimization in cost structure.
Operating Expenses
Operating expenses were $35.1
million in the third quarter of 2020, a decrease of 3.9%
from 36.5 million in the corresponding period of 2019, mainly due
to the decrease in staff related costs.
- Selling expenses were $15.1
million in the third quarter of 2020, which remained
relatively stable with $14.8 million
in the corresponding period of 2019.
- General and administrative expenses were $20.0 million in the third quarter of 2020, a
decrease of 7.8% from $21.7 million
in the corresponding period of 2019, mainly due to the decrease in
staff related costs.
Operating Income from Continuing Operations
Operating income from continuing operations was $17.7 million in the third quarter of 2020, a
decrease of 33.7% from $26.7 million
in the corresponding period of 2019, mainly due to the decrease in
total revenue.
Change in Fair Value of Securities
Change in fair value of securities for the third quarter of 2020
was a gain of $19.4 million, compared
to a loss of $26.1 million in the
corresponding period of 2019, mainly due to the fluctuation in
market price of investments in equity securities.
Income Tax Expenses
Income tax expenses were $19.2
million in the third quarter of 2020, compared to income tax
benefits of $0.1 million in the
corresponding period of 2019, mainly due to the effect of change in
fair value of equity securities.
Net Income
Net income was $10.9 million in
the third quarter of 2020, an increase of 1,393.3% from net income
of $0.7 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.
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
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/2585897
A telephone replay of the call will be available after the
conclusion of the conference call from 10:00
AM ET on November 13, 2020
through 7:59 AM ET November 21, 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:
|
2585897
|
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
|
September
30,
|
December
31,
|
|
|
|
2020
|
2019
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
111,848
|
105,282
|
|
|
Restricted cash,
current
|
229,168
|
219,096
|
|
|
Short-term
investments
|
253,135
|
194,720
|
|
|
Accounts receivable,
net
|
98,999
|
66,379
|
|
|
Funds
receivable
|
4,514
|
8,372
|
|
|
Prepayment and other
current assets
|
32,494
|
31,509
|
|
|
Commitment
deposits
|
193
|
188
|
|
|
Loans receivable,
current
|
73,899
|
60,490
|
|
|
Amounts due from
related parties
|
744
|
644
|
|
|
Total current
assets
|
804,994
|
686,680
|
|
|
Non-current
assets:
|
|
|
|
|
Property and
equipment, net
|
693,219
|
695,457
|
|
|
Deferred tax
assets
|
3,145
|
6,570
|
|
|
Deposits for
non-current assets
|
499
|
618
|
|
|
Restricted cash,
non-current portion
|
44,086
|
42,452
|
|
|
Long-term
investments
|
246,462
|
341,946
|
|
|
Other non-current
assets
|
38,496
|
39,179
|
|
|
Total non-current
assets
|
1,025,907
|
1,126,222
|
|
|
Total
assets
|
1,830,901
|
1,812,902
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term
loans
|
300,301
|
264,624
|
|
|
Short-term bond
payable
|
106,209
|
102,779
|
|
|
Deferred
revenue
|
132,895
|
134,143
|
|
|
Accrued expenses and
other liabilities
|
112,971
|
120,244
|
|
|
Customers' refundable
fees
|
3,915
|
4,981
|
|
|
Income tax
payable
|
14,733
|
4,207
|
|
|
Amounts due to
related parties
|
12,472
|
9,227
|
|
|
Total current
liabilities
|
683,496
|
640,205
|
|
|
Non-current
liabilities:
|
|
|
|
|
Long-term
loans
|
150,299
|
184,158
|
|
|
Convertible senior
notes
|
168,452
|
168,929
|
|
|
Deferred tax
liabilities
|
95,985
|
90,723
|
|
|
Other non-current
liabilities
|
114,049
|
138,435
|
|
|
Total non-current
liabilities
|
528,785
|
582,245
|
|
|
Total
Liabilities
|
1,212,281
|
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 September 30, 2020: 71,775,686
and
71,775,686;
outstanding shares as of December 31, 2019 and September
30, 2020: 65,403,527 and 65,715,527
|
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 September 30, 2020, respectively
|
3,124
|
3,124
|
|
|
Treasury
stock
|
(117,183)
|
(123,216)
|
|
|
Additional paid-in
capital
|
540,049
|
528,620
|
|
|
Accumulated other
comprehensive loss
|
(75,247)
|
(98,371)
|
|
|
Retained
earnings
|
257,939
|
270,358
|
|
|
Total Fang
Holdings Limited shareholders' equity
|
617,926
|
589,759
|
|
|
Non controlling
interests
|
694
|
693
|
|
|
Total
equity
|
618,620
|
590,452
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
1,830,901
|
1,812,902
|
|
|
Unaudited
Condensed Consolidated Statements of Comprehensive
Income[i]
|
|
(in thousands of
U.S. dollars, except share data and per share data)
|
|
|
|
|
Three months
ended
|
|
|
|
September
30,
|
September
30,
|
|
|
|
2020
|
2019
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
Marketing
services
|
|
30,273
|
29,993
|
|
Listing
services
|
|
10,061
|
19,438
|
|
Leads generation
services
|
|
12,948
|
14,099
|
|
Financial
services
|
|
1,864
|
1,710
|
|
Value-added
services
|
|
1,382
|
1,514
|
|
E-commerce
services
|
|
149
|
796
|
|
Total
revenues
|
|
56,677
|
67,550
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
Cost of
services
|
|
(5,066)
|
(5,694)
|
|
Total cost of
revenues
|
|
(5,066)
|
(5,694)
|
|
|
|
|
|
|
Gross
profit
|
|
51,611
|
61,856
|
|
|
|
|
|
|
Operating expenses
and income:
|
|
|
|
|
Selling
expenses
|
|
(15,077)
|
(14,822)
|
|
General and
administrative expenses
|
|
(20,005)
|
(21,688)
|
|
Other
income
|
|
1,191
|
1,385
|
|
|
|
|
|
|
Operating
income
|
|
17,720
|
26,731
|
|
Foreign exchange
(loss)/income
|
|
(5,138)
|
832
|
|
Interest
income
|
|
3,192
|
1,562
|
|
Interest
expense
|
|
(5,527)
|
(5,185)
|
|
Investment
income
|
|
460
|
2,068
|
|
Realized gain on sale
of available-for-sale
securities
|
|
-
|
711
|
|
Change in fair value
of securities
|
|
19,393
|
(26,148)
|
|
Government
grants
|
|
72
|
44
|
|
Income before
income taxes and noncontrolling
interests
|
|
30,172
|
615
|
|
Income tax
expense
|
|
|
|
|
Income tax
(expense)/benefit
|
|
(19,241)
|
117
|
|
Net
income
|
|
10,931
|
732
|
|
Net income
attributable to noncontrolling
interests
|
|
-
|
-
|
|
Net income
attributable to Fang Holdings Limited
shareholders
|
|
10,931
|
732
|
|
Earnings per share
for Class A and Class B ordinary shares:
|
|
|
|
Basic
|
|
0.12
|
0.01
|
|
Diluted
|
|
0.12
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[i] On June 19, 2020, a ratio
change that had the same effect as a 1-for-10 reverse ADS split
took effect, and
as a result, one ADS currently represents ten Class A ordinary
shares.
|
View original
content:http://www.prnewswire.com/news-releases/fang-announces-third-quarter-2020-unaudited-financial-results-301172642.html
SOURCE Fang Holdings Limited