BEIJING, Aug. 14, 2020 /PRNewswire/ -- Fang Holdings
Limited (NYSE: SFUN) ("Fang" or "we"), a leading real estate
Internet portal in China, today
announced its unaudited financial results for the second quarter
and the first half year ended June 30,
2020.
Second Quarter 2020 Highlights
- Total revenues were $66.8
million, a decrease of 1.5% from $67.8 million in the corresponding period of
2019.
- Operating income from continuing operations was
$6.4 million, a decrease of 78.7%
from $30.1 million in the
corresponding period of 2019.
- Net income was $21.5
million, an increase of 321.6% from $5.1 million in the corresponding period of
2019.
First Half 2020 Highlights
- Total revenues were $103.0
million, which remained relatively stable with $102.8 million in the corresponding period of
2019.
- Operating income from continuing operations was
$6.9 million, a decrease of 62.3%
from $18.3 million in the
corresponding period of 2019.
- Net loss was $19.4
million, compared to net income of $18.5 million in the corresponding period of
2019.
"During the COVID-19 global pandemic, Fang remained solid
financially in the first half of 2020," commented Mr. Jian Liu, CEO of Fang. "For the coming quarters
we will continue our focus on new initiatives such as live
broadcastings, online exhibitions and VR livestreams to better
serve our customers."
Second Quarter 2020 Financial Results
Revenues
Fang reported total revenues of $66.8
million in the second quarter of 2020, a decrease of 1.5%
from $67.8 million in the
corresponding period of 2019, mainly due to the decrease in
revenues from listing services.
- Revenue from marketing services was $32.1 million in the second quarter of 2020, a
decrease of 1.2% from $32.5 million
in the corresponding period of 2019.
- Revenue from listing services was $14.2 million in the second quarter of 2020, a
decrease of 26.0% from $19.2 million
in the corresponding period of 2019, mainly due to the decrease in
the number of paying customers.
- Revenue from leads generation services was $17.3 million in the second quarter of 2020, an
increase of 60.2% from $10.8 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 $1.6 million in the second quarter of 2020, a
decrease of 44.8% from $2.9 million
in the corresponding period of 2019, mainly due to the decrease in
average loan receivable balance.
Cost of Revenue
Cost of revenue was $3.6 million
in the second quarter of 2020, a decrease of 56.3% from
$8.3 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 $56.2
million in the second quarter of 2020, an increase of 81.3%
from $31.0 million in the
corresponding period of 2019, mainly due to the increase in staff
related costs.
- Selling expenses were $14.9
million in the second quarter of 2020, a decrease of 7.5%
from $16.1 million in the
corresponding period of 2019, mainly due to the decrease in staff
related costs.
- General and administrative expenses were $41.3 million in the second quarter of 2020, an
increase of 177.2% from $14.9 million
in the corresponding period of 2019, mainly due to the increase in
staff related costs.
Operating Income from Continuing Operations
Operating income from continuing operations was $6.4 million in the second quarter of 2020, a
decrease of 78.7% from $30.1 million
in the corresponding period of 2019, mainly due to the increase in
operating expenses.
Change in Fair Value of Securities
Change in fair value of securities for the second quarter of
2020 was a loss of $0.7 million,
compared to a loss of $48.5 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 $16.7
million in the second quarter of 2020, a decrease of 17.2%
compared to income tax benefits of $20.1
million in the corresponding period of 2019, primarily due
to the effect of change in fair value of equity securities.
Net Income
Net income was $21.5 million in
the second quarter of 2020, an increase of 321.5% from $5.1 million in the corresponding period of
2019.
First half year 2020 Financial Results
Revenues
Fang reported total revenues of $103.0
million in the first half year of 2020, which remained
relatively stable with $102.8 million
in the corresponding period of 2019.
- Revenue from marketing services was $47.2 million in the first half of 2020, an
increase of 3.3% from $45.7 million
in the corresponding period of 2019, mainly due to the growth of
company's new initiative such as live broadcastings., etc.
- Revenue from listing services was $24.4 million in the first half of 2020, a
decrease of 22.3% from $31.4 million
in the corresponding period of 2019, mainly due to the decrease in
the number of paying customers.
- Revenue from leads generation services was $24.8 million in the first half of 2020, an
increase of 67.6% from $14.8 million
in the corresponding period of 2019.
- Revenue from financial services was $3.3 million in the first half of 2020, a
decrease of 48.4% from $6.4 million
in the corresponding period of 2019, mainly due to the decrease in
average loan receivable balance.
Cost of Revenue
Cost of revenue was $9.0 million
in the first half year of 2020, a decrease of 46.1% from
$16.7 million in the corresponding
period of 2019, primarily due to cost savings from optimizing
Fang's core business.
Operating Expenses
Operating expenses were $88.3
million in the first half year of 2020, an increase of 26.5%
from $69.8 million in the
corresponding period of 2019, mainly due to the increase in staff
related costs.
- Selling expenses were $28.5
million in the first half year of 2020, a decrease of 12.3%
from $32.5 million in the
corresponding period of 2019, mainly due to the decrease in staff
related costs.
- General and administrative expenses were $59.8 million in the first half year of 2020, an
increase of 60.3% from $37.3 million
in the corresponding period of 2019, mainly due to the increase in
staff related costs.
Operating Income from Continuing Operations
Operating income from continuing operations was $6.9 million in the first half year of 2020, a
decrease of 62.3% from $18.3 million
in the corresponding period of 2019, mainly due to the increase in
operating expenses.
Change in Fair Value of Securities
Change in fair value of securities for the first half year of
2020 was a loss of $43.3 million,
compared to a loss of $16.5 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 $19.5
million in the first half year of 2020, an increase of
116.7% from $9.0 million in the
corresponding period of 2019.
Net Income (Loss)
Net loss was $19.4 million in the
first half year of 2020, compared to a net income of $18.5 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 8:00 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/6379533
A telephone replay of the call will be available after the
conclusion of the conference call from 11:00
AM ET on August 14, 2020
through 9:59 AM ET August 22, 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[i]
|
|
(in thousands of
U.S. dollars, except share data and per share data)
|
|
|
ASSETS
|
June
30,
|
December
31,
|
|
|
2020
|
2019
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
85,461
|
105,282
|
|
|
Restricted cash,
current
|
217,259
|
219,096
|
|
|
Short-term
investments
|
148,382
|
194,720
|
|
|
Accounts receivable,
net
|
87,885
|
66,379
|
|
|
Funds
receivable
|
4,092
|
8,372
|
|
|
Prepayment and other
current assets
|
32,834
|
31,509
|
|
|
Commitment
deposits
|
185
|
188
|
|
|
Loans receivable,
current
|
58,979
|
60,490
|
|
|
Amounts due from
related parties
|
1,350
|
644
|
|
|
Total current
assets
|
636,427
|
686,680
|
|
|
Non-current
assets:
|
|
|
|
|
Property and
equipment, net
|
676,564
|
695,457
|
|
|
Loans receivable,
non-current
|
-
|
-
|
|
|
Deferred tax
assets
|
13,220
|
6,570
|
|
|
Deposits for
non-current assets
|
482
|
618
|
|
|
Restricted cash,
non-current portion
|
40,917
|
42,452
|
|
|
Long-term
investments
|
325,863
|
341,946
|
|
|
Other non-current
assets
|
36,975
|
39,179
|
|
|
Total non-current
assets
|
1,094,021
|
1,126,222
|
|
|
Total
assets
|
1,730,448
|
1,812,902
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term
loans
|
361,220
|
367,403
|
|
|
Deferred
revenue
|
130,083
|
134,143
|
|
|
Accrued expenses and
other liabilities
|
100,695
|
120,244
|
|
|
Customers' refundable
fees
|
3,703
|
4,981
|
|
|
Income tax
payable
|
11,675
|
4,207
|
|
|
Amounts due to
related parties
|
10,048
|
9,227
|
|
|
Total current
liabilities
|
617,424
|
640,205
|
|
|
Non-current
liabilities:
|
|
|
|
|
Long-term
loans
|
178,365
|
184,158
|
|
|
Convertible senior
notes
|
168,614
|
168,929
|
|
|
Deferred tax
liabilities
|
92,080
|
90,723
|
|
|
Other non-current
liabilities
|
107,217
|
138,435
|
|
|
Total non-current
liabilities
|
546,276
|
582,245
|
|
|
Total
Liabilities
|
1,163,700
|
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 June 30, 2020: 71,775,686
and
71,775,686;
outstanding shares as of December 31, 2019 and June 30,
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 s
hares 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
June 30, 2020, respectively
|
3,124
|
3,124
|
|
|
Treasury
stock
|
(123,216)
|
(123,216)
|
|
|
Additional paid-in
capital
|
536,352
|
528,620
|
|
|
Accumulated other
comprehensive loss
|
(110,381)
|
(98,371)
|
|
|
Retained
earnings
|
250,931
|
270,358
|
|
|
Total Fang
Holdings Limited shareholders' equity
|
566,054
|
589,759
|
|
|
Non controlling
interests
|
694
|
693
|
|
|
Total
equity
|
566,748
|
590,452
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
1,730,448
|
1,812,902
|
|
|
|
[i]
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
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)
|
|
Unaudited
Condensed Consolidated Statements of Comprehensive
Income[ii]
|
|
(in thousands of
U.S. dollars, except share data and per share data)
|
|
|
|
|
|
|
|
Three months
ended
|
Six months
ended
|
|
|
|
June
30,
|
|
June
30,
|
June
30,
|
June
30,
|
|
|
|
2020
|
|
2019
|
2020
|
2019
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Marketing
services
|
32,072
|
|
32,465
|
47,208
|
45,728
|
|
|
Listing
services
|
14,197
|
|
19,212
|
24,413
|
31,371
|
|
|
Leads generation
services
|
17,288
|
|
10,801
|
24,806
|
14,787
|
|
|
Value-added
services
|
1,525
|
|
1,665
|
2,941
|
2,667
|
|
|
Financial
services
|
1,557
|
|
2,926
|
3,283
|
6,425
|
|
|
E-commerce
services
|
206
|
|
779
|
315
|
1,860
|
|
|
Total
revenues
|
66,845
|
|
67,848
|
102,966
|
102,838
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues:
|
|
|
|
|
|
|
|
Cost of
services
|
(3,603)
|
|
(8,254)
|
(9,010)
|
(16,692)
|
|
|
Total cost of
revenues
|
(3,603)
|
|
(8,254)
|
(9,010)
|
(16,692)
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
63,242
|
|
59,594
|
93,956
|
86,146
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
and income:
|
|
|
|
|
|
|
Selling
expenses
|
(14,889)
|
|
(16,137)
|
(28,450)
|
(32,456)
|
|
|
General and
administrative expenses
|
(41,268)
|
|
(14,900)
|
(59,824)
|
(37,293)
|
|
|
Other (expense)
income
|
(691)
|
|
1,508
|
1,223
|
1,895
|
|
|
|
|
|
|
|
|
|
|
Operating income
from continuing operations
|
6,394
|
|
30,065
|
6,905
|
18,292
|
|
|
|
|
|
|
|
|
|
Foreign exchange
(loss) gain
|
(248)
|
|
(371)
|
1,468
|
(633)
|
|
|
Interest
income
|
2,198
|
|
1,630
|
6,121
|
3,319
|
|
|
Interest
expense
|
(3,806)
|
|
(5,696)
|
(12,267)
|
(11,741)
|
|
|
Investment income,
net
|
516
|
|
485
|
1,338
|
490
|
|
|
Realized gain on sale
of available-for-sale
securities
|
-
|
|
573
|
-
|
871
|
|
|
Change in fair value
of securities
|
(692)
|
|
(48,513)
|
(43,326)
|
(16,464)
|
|
|
Government
grants
|
441
|
|
465
|
810
|
700
|
|
|
Income (Loss)
before income taxes and
noncontrolling interests from continuing
operations
|
4,803
|
|
(21,362)
|
(38,951)
|
(5,166)
|
|
|
Income tax
benefits
|
|
|
|
|
|
|
|
Income tax
benefits
|
16,675
|
|
20,127
|
19,525
|
9,008
|
|
|
Net income (loss)
from continuing operations,
net of income taxes
|
21,478
|
|
(1,235)
|
(19,426)
|
3,842
|
|
|
Income from
discontinued operations, net of income
taxes
|
-
|
|
6,349
|
-
|
14,672
|
|
|
Net income
(loss)
|
21,478
|
|
5,114
|
(19,426)
|
18,514
|
|
|
Net loss attributable
to noncontrolling interests
|
1
|
|
-
|
1
|
-
|
|
|
Net income (loss)
attributable to Fang Holdings
Limited shareholders
|
21,477
|
|
5,114
|
(19,427)
|
18,514
|
|
|
Earnings /(loss)
per share for Class A and Class B ordinary shares:
|
|
|
|
|
Basic
|
0.24
|
|
0.06
|
(0.22)
|
0.21
|
|
|
Diluted
|
0.24
|
|
0.06
|
(0.22)
|
0.20
|
|
|
Earnings /(loss)
from continuing operations per share for Class A and Class B
ordinary shares:
|
|
Basic
|
|
|
(0.01)
|
|
0.04
|
|
|
Diluted
|
|
|
(0.01)
|
|
0.04
|
|
|
Earnings from
discontinued operations per share for Class A and Class B ordinary
shares:
|
|
Basic
|
|
|
0.07
|
|
0.16
|
|
|
Diluted
|
|
|
0.07
|
|
0.16
|
|
|
|
[ii] 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
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SOURCE Fang Holdings Limited
