BEIJING, March 26, 2021 /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 fourth
quarter and fiscal year ended December 31,
2020.
Fourth Quarter 2020 Highlights
- Total revenues were $56.5
million, an increase of 14.6% from $49.3 million in the corresponding period of
2019.
- Operating income from continuing operations was
$5.9 million, compared to an
operating loss from continuing operations of $21.0 million in the corresponding period of
2019.
- Net loss was $76 thousand,
compared to a net loss of $26.2
million in the corresponding period of 2019.
Fiscal Year 2020 Highlights
- Total revenues were $216.2
million, a decrease of 1.6% from $219.7 million in 2019.
- Operating income from continuing operations was
$32.7 million, an increase of 31.4%
from $24.9 million in 2019.
- Net loss was $6.5 million,
compared to a net loss of $10.3
million in 2019.
Fourth Quarter 2020 Financial Results
Revenues
Fang reported total revenues of $56.5
million in the fourth quarter of 2020, an increase of 14.6%
from $49.3 million in the
corresponding period of 2019.
- Revenue from marketing services was $30.1 million in the fourth quarter of 2020, an
increase of 59.1% from $18.9 million
in the corresponding period of 2019.
- Revenue from listing services was $9.7 million in the fourth quarter of 2020, a
decrease of 23.1% from $12.7 million
in the corresponding period of 2019, mainly due to the decrease in
the number of paying customers.
- Revenue from leads generation services was $11.5 million in the fourth quarter of 2020, a
decrease of 20.0% from $14.4 million
in the corresponding period of 2019.
- Revenue from financial services was $3.9 million in the fourth quarter of 2020, an
increase of 175.9% from $1.4 million
in the corresponding period of 2019, mainly due to the increase in
average loan receivable balance.
Cost of Revenue
Cost of revenue was $3.5 million
in the fourth quarter of 2020, a decrease of 13.2% from
$4.1 million in the corresponding
period of 2019, primarily due to the optimization in cost
structure.
Operating Expenses
Operating expenses were $42.2
million in the fourth quarter of 2020, a decrease of 38.3%
from $68.4 million in the
corresponding period of 2019.
- Selling expenses were $16.4
million in the fourth quarter of 2020, a decrease of 37.8%
from $26.3 million in the
corresponding period of 2019, mainly due to the decrease in staff
cost and promotional expense.
- General and administrative expenses were $25.8 million in the fourth quarter of 2020, a
decrease of 38.6% from $42.1 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 $5.9 million in the fourth quarter of 2020,
compared to operating loss from continuing operations of
$21.0 million in the corresponding
period of 2019.
Change in Fair Value of Securities
Change in fair value of securities for the fourth quarter of
2020 was a loss of $2.3 million,
compared to a loss of $3.5 million in
the corresponding period of 2019, mainly due to the fluctuation in
market price of investments in equity securities.
Income Tax Benefits
Income tax benefits were $4.2
million in the fourth quarter of 2020, an increase of 24.3%
from $3.4 million in the
corresponding period of 2019.
Net Loss
Net loss was $76 thousand in the
fourth quarter of 2020, compared to a net loss of $26.2 million in the corresponding period of
2019.
Fiscal Year 2020 Financial Results
Revenues
Fang reported total revenues of $216.2
million for 2020, a decrease of 1.6% from $219.7 million in 2019.
- Revenue from marketing services was $109.1 million for 2020, an increase of 15.2%
from $94.6 million in 2019.
- Revenue from listing services was $44.2 million for 2020, a decrease of 30.4% from
$63.5 million in 2019, mainly due to
the decreased number of paying members in listing services.
- Revenue from leads generation services was $47.8 million for 2020, an increase of 10.4% from
$43.3 million in 2019, driven by the
increase in effectiveness of services and customer acceptance.
- Revenue from financial services was $9.1 million for 2020, a decrease of 5.0% from
$9.6 million in 2019.
Cost of Revenue
Cost of revenue was $17.6 million
for 2020, a decrease of 37.7% from $28.3
million in 2019, primarily due to optimization in cost
structure.
Operating Expenses
Operating expenses were $163.4
million for 2020, a decrease of 5.6% from $173.1 million in 2019.
- Selling expenses were $59.2
million for 2020, a decrease of 19.6% from $73.7 million in 2019.
- General and administrative expenses were $104.1 million for 2020, an increase of 4.7% from
$99.4 million in 2019.
Operating Income from Continuing Operations
Operating income from continuing operations was $32.7 million for 2020, an increase of 31.4% from
$24.9 million in the corresponding
period of 2019.
Change in Fair Value of Securities
Change in fair value of securities for 2020 was a loss of
$26.2 million, compared to a loss of
$46.1 million in 2019, mainly due to
the fluctuation in market price of investments in equity
securities.
Income Tax Benefits
Income tax benefits were $4.5
million for 2020, a decrease of 53.1% from $9.5 million in 2019, mainly due to the effect of
change in fair value of equity securities.
Net Loss
Net loss was $6.5 million for
2020, compared to a net loss of $10.3
million in 2019.
Business Outlook
Based on current operations and market conditions, Fang's
management predicts a positive net income for the year of 2021,
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
March 26, 2021 at 8:00 AM U.S. Eastern Time (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
+86 800-820-5506 / +86 400-120-0948
Direct Event Passcode 1578624#
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 (1578624#) and
unique registrant ID. Get prompted 10 min prior to the start of the
conference. Enter the Direct Event Passcode above (1578624#), and
your unique Registrant ID, followed by the pound or hash (#) sign
to join the call.
Direct Event online registration:
http://apac.directeventreg.com/registration/event/8574127
A telephone replay of the call will be available after the
conclusion of the conference call from 11:00
AM ET on March 26, 2021
through 8:59 AM ET April 3, 2021. 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:
8574127
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.
For investor and media inquiries, please contact:
Ms. Jessie Yang
Investor Relations Director
Email: ir@fang.com
|
Fang Holdings
Limited
|
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
(in thousands of
U.S. dollars, except share data and per share data)
|
|
ASSETS
|
December
31,
|
December
31,
|
|
|
2020
|
2019
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
130,055
|
105,282
|
|
Restricted cash,
current
|
278,854
|
219,096
|
|
Short-term
investments
|
91,587
|
194,720
|
|
Accounts receivable,
net
|
95,246
|
66,379
|
|
Funds
receivable
|
4,924
|
8,372
|
|
Prepayments and other
current assets
|
37,054
|
31,509
|
|
Commitment
deposits
|
201
|
188
|
|
Loans receivable,
current
|
90,909
|
60,490
|
|
Amounts due from
related parties
|
673
|
644
|
|
Total current
assets
|
729,503
|
686,680
|
|
Non-current
assets:
|
|
|
|
Property and
equipment, net
|
713,599
|
695,457
|
|
Deferred tax
assets
|
3,698
|
6,570
|
|
Deposits for
non-current assets
|
497
|
618
|
|
Restricted cash,
non-current portion
|
44,050
|
42,452
|
|
Long-term
investments
|
372,962
|
341,946
|
|
Other non-current
assets
|
40,621
|
39,179
|
|
Total non-current
assets
|
1,175,427
|
1,126,222
|
|
Total
assets
|
1,904,930
|
1,812,902
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
loans
|
334,086
|
264,624
|
|
Short term bond
payable
|
-
|
102,779
|
|
Deferred
revenue
|
140,293
|
134,143
|
|
Accrued expenses and
other liabilities
|
127,261
|
120,244
|
|
Customers' refundable
fees
|
4,167
|
4,981
|
|
Income tax
payable
|
23,048
|
4,207
|
|
Amounts due to related
parties
|
11,144
|
9,227
|
|
Total current
liabilities
|
639,999
|
640,205
|
|
Non-current
liabilities:
|
|
|
|
Long-term
loans
|
115,980
|
184,158
|
|
Long-term bond
payable
|
110,316
|
-
|
|
Convertible senior
notes
|
168,452
|
168,929
|
|
Deferred tax
liabilities
|
85,724
|
90,723
|
|
Other non-current
liabilities
|
118,713
|
138,435
|
|
Total non-current
liabilities
|
599,185
|
582,245
|
|
Total
Liabilities
|
1,239,184
|
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 December 31, 2020: 71,775,686
and
71,775,686; outstanding shares as of December 31, 2019 and December
31,
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
December 31, 2020, respectively
|
3,124
|
3,124
|
|
Less: Treasury
stock
|
(117,183)
|
(123,216)
|
|
Additional paid-in
capital
|
542,151
|
528,620
|
|
Accumulated other
comprehensive loss
|
(30,147)
|
(98,371)
|
|
Retained
earnings
|
257,862
|
270,358
|
|
Total Fang
Holdings Limited shareholders' equity
|
665,051
|
589,759
|
|
Noncontrolling
interests
|
695
|
693
|
|
Total
equity
|
665,746
|
590,452
|
|
TOTAL LIABILITIES
AND EQUITY
|
1,904,930
|
1,812,902
|
|
Unaudited
Condensed Consolidated Statements of Comprehensive
Loss[i]
(in thousands of
U.S. dollars, except share data and per share data)
|
|
|
|
|
|
|
Three months
ended
|
Year
ended
|
|
|
December
31,
|
December
31,
|
December
31,
|
December
31,
|
|
|
2020
|
2019
|
2020
|
2019
|
|
Revenues:
|
|
|
|
|
|
Marketing
services
|
30,104
|
18,919
|
109,070
|
94,639
|
|
Leads generation
services
|
11,532
|
14,414
|
47,801
|
43,300
|
|
Listing
services
|
9,732
|
12,662
|
44,206
|
63,471
|
|
Financial
services
|
3,935
|
1,426
|
9,082
|
9,561
|
|
Value-added
services
|
1,194
|
1,712
|
5,517
|
5,893
|
|
E-commerce
services
|
12
|
191
|
476
|
2,847
|
|
Total
revenues
|
56,509
|
49,324
|
216,152
|
219,711
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
Cost of
services
|
(3,545)
|
(4,086)
|
(17,609)
|
(28,260)
|
|
Total Cost of
Revenues
|
(3,545)
|
(4,086)
|
(17,609)
|
(28,260)
|
|
|
|
|
|
|
Gross
Profit
|
52,964
|
45,238
|
198,543
|
191,451
|
|
|
|
|
|
|
Operating
(expenses) income:
|
|
|
|
|
|
Selling
expenses
|
(16,364)
|
(26,290)
|
(59,226)
|
(73,662)
|
|
General and
administrative expenses
|
(25,829)
|
(42,099)
|
(104,149)
|
(99,442)
|
|
Other
income/(loss)
|
(4,843)
|
2,197
|
(2,505)
|
6,518
|
|
|
|
|
|
|
|
Operating income /
(loss) from continuing operations
|
5,928
|
(20,954)
|
32,663
|
24,865
|
|
Foreign exchange gain/
(loss)
|
(5,435)
|
(46)
|
(9,105)
|
154
|
|
Interest
income
|
3,159
|
4,319
|
12,472
|
9,038
|
|
Interest
expense
|
(6,085)
|
(9,006)
|
(23,879)
|
(25,402)
|
|
Investment income
(loss), net
|
(53)
|
86
|
1,745
|
2,644
|
|
Realized gain on sale
of available-for-sale securities
|
-
|
(721)
|
-
|
861
|
|
Change in fair value
of securities
|
(2,316)
|
(3,450)
|
(26,249)
|
(46,062)
|
|
Government
grants
|
537
|
184
|
1,419
|
927
|
|
Loss before income
taxes and noncontrolling interests
from continuing operations
|
(4,265)
|
(29,588)
|
(10,934)
|
(32,975)
|
|
Income tax
benefits
|
|
|
|
|
|
Income tax
benefits
|
4,189
|
3,370
|
4,473
|
9,544
|
|
Net (loss) income
from continuing operations, net of
income taxes
|
(76)
|
(26,218)
|
(6,461)
|
(23,431)
|
|
Income from
discontinued operations, net of income taxes
|
-
|
-
|
-
|
13,181
|
|
Net loss
|
(76)
|
(26,218)
|
(6,461)
|
(10,250)
|
|
Net loss attributable
to noncontrolling interests
|
(1)
|
(1)
|
(2)
|
(1)
|
|
Net loss
attributable to Fang Holdings Limited
shareholders
|
(75)
|
(26,217)
|
(6,459)
|
(10,249)
|
|
|
|
|
Earnings per share
for Class A and Class B ordinary shares :
|
|
|
|
Basic
|
(0.00)
|
(0.29)
|
(0.07)
|
(0.11)
|
|
Diluted
|
(0.00)
|
(0.29)
|
(0.07)
|
(0.11)
|
|
|
[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.
|
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SOURCE Fang Holdings Limited