Fang Announces Third Quarter 2020 Unaudited Financial Results

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BEIJING, Nov. 13, 2020 /PRNewswire/ -- Fang Holdings Limited 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.

 

Cision View original content:http://www.prnewswire.com/news-releases/fang-announces-third-quarter-2020-unaudited-financial-results-301172642.html

SOURCE Fang Holdings Limited

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