Fang Announces Third Quarter 2020 Unaudited Financial Results
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, 9,244 9,244
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
Class B ordinary shares, par value HK$1 per share, 600,000,000 shares 3,124 3,124
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
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 September
30, 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 711
securities
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.
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SOURCE Fang Holdings Limited
