BEIJING, June 17, 2019 /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 first quarter
ended March 31, 2019.
First Quarter 2019 Highlights
- Total revenues were $51.9
million.
- Operating loss was $2.0
million. Non-GAAP income from operations was
$0.04 million. A description of the
adjustments from GAAP to non-GAAP operating income is detailed in
the table captioned "Reconciliation of GAAP and Non-GAAP Results"
following this press release.
- Net income attributable to Fang's shareholders was
$13.4 million, which was primarily
due to gains from the change in fair value of equity securities of
$32.1 million, offset by the income
tax expense of $12.6 million and
interest expenses of US$6.0 million.
Earnings per ADS was $0.03.
- Non-GAAP net loss attributable to Fang's shareholders
was $9.9 million. Non-GAAP net loss
per ADS was $0.03. A description of
the adjustments from GAAP net income to non-GAAP net loss
attributable to Fang's shareholders and fully diluted income per
ADS is detailed in the table captioned "Reconciliation of GAAP and
Non-GAAP Results" following this press release.
- Adjusted EBITDA was $6.9
million. A description of the adjustments from GAAP net
income to Adjusted EBITDA is detailed in the table captioned
"Reconciliation of GAAP and Non-GAAP Results" following this press
release.
"China Index Holdings (NASDAQ: CIH) was successfully spun off
from Fang and listed on NASDAQ," commented Mr. Jian Liu, CEO of Fang. "Fang will now focus more
on its core internet advertising, listing, and leads business lines
which are expected to grow for the year of 2019."
Fang completed the separation of its wholly-owned subsidiary,
China Index Holdings Limited ("CIH") on June
11, 2019, and the presentation of Fang's unaudited financial
results for the first quarter ended March
31, 2019 in this press release does not take into account
the separation of CIH and its associated business and results of
operations.
First Quarter 2019 Results
Revenues
Fang reported total revenues of $51.9
million in the first quarter of 2019, a decrease of 19.8%
from $64.7 million in the
corresponding period of 2018, mainly due to the decline in revenues
from listing and e-commerce services.
Revenue from marketing services was $17.2 million in the first quarter of 2019,
which was stable compared to $17.3
million in the corresponding period of 2018.
Revenue from listing services was $21.4
million in the first quarter of 2019, a decrease of 20.1%
from $26.7 million in the
corresponding period of 2018, caused by the decreased number of
paying members of listing services.
Revenue from value-added services was $8.7 million in the first quarter of 2019,
an increase of 3.1% from $8.4 million
in the corresponding period of 2018.
Revenue from financial services was $3.5 million in the first quarter of 2019, a
decrease of 30.8% from $5.1 million
in the corresponding period of 2018, mainly due to the decrease in
average loan receivable balances.
Revenue from e-commerce services was $1.1 million in the first quarter of 2019, a
decrease of 84.9% from $7.2
million in the corresponding period of 2018, primarily due to
Fang's transformation back to a technology-driven open platform
model.
Cost of Revenue
Cost of revenue was $11.5 million
in the first quarter of 2019, a decrease of 44.4% from $20.6 million in the corresponding period of
2018, primarily due to optimization in our cost structure.
Operating Expenses
Operating expenses were $42.4
million in the first quarter of 2019, a decrease of 11.8%
from $48.0 million in the
corresponding period of 2018.
Selling expenses were $18.6
million in the first quarter of 2019, an increase of
12.9% from $16.4 million for the
corresponding period of 2018, primarily driven by an increase in
advertising and promotional expenses.
General and administrative expenses were $23.9 million in the first quarter of 2019, a
decrease of 24.0% from $31.5
million for the corresponding period of 2018, caused by
decrease in bad debts and staff costs.
Operating Loss
Operating loss was $2.0 million in
the first quarter of 2019, compared to operating loss of
$3.9 million in the
corresponding period of 2018, caused by the decline of operating
expenses.
Change in fair value of securities
Change in fair value of securities for the first quarter of 2019
was a gain of $32.1 million, compared
to a loss of $42.2 million in the
corresponding period of 2018, and the fluctuation was due to the
increase in the market price of investment in equity
securities.
Income Tax Expenses
Income tax expenses were $12.6
million in the first quarter of 2019, compared to income tax
benefit of $4.2 million in the
corresponding period of 2018.
Net Income/Loss and EPS
Net Income attributable to Fang's shareholders was $13.4 million in the first quarter of
2019, compared to net loss of $44.9 million in the corresponding period of
2018. Income per ordinary share and ADS were $0.15 and $0.03 in the first quarter of 2019, compared
to loss of $0.51 and $0.10, respectively, in the corresponding
period of 2018.
Adjusted EBITDA
Adjusted EBITDA, defined as GAAP net income before share-based
compensation, investment income, realized gain on sale
available-for-sale securities change in fair value of securities,
income taxes, interest expenses, interest income and depreciation
and amortization, was $6.9
million in the first quarter of 2019, compared to the
$7.1 million in the
corresponding period of 2018.
Cash
As of March 31, 2019, Fang had
cash and cash equivalents, restricted cash (current and
non-current) and short-term investments of $477.1 million, compared to $463.6 million as of December 31, 2018.
Business Outlook
Based on current operations and market conditions, Fang's
non-GAAP net income is expected to be profitable for the fiscal
year ending December 31, 2019. These
estimates represent management's current and preliminary view,
which are subject to change.
About Non-GAAP Financial Measures
To supplement Fang's consolidated financial results presented in
accordance with United States Generally Accepted Accounting
Principles ("GAAP"), Fang uses in this press release the following
measures defined as non-GAAP financial measures by the United
States Securities and Exchange Commission: (1) non-GAAP income from
operations, (2) non-GAAP net loss, (3) non-GAAP basic and diluted
loss per ordinary share and per ADS, and (4) adjusted EBITDA. The
presentation of the non-GAAP financial information is not intended
to be considered in isolation or as a substitute for the financial
information prepared and presented in accordance with GAAP. For
more information on these non-GAAP financial measures, please see
the table captioned "Reconciliation of GAAP and non-GAAP Results"
set forth at the end of this press release.
Fang believes that these non-GAAP measures help identify
underlying trends in Fang's business that could otherwise be
distorted by the effect of the change in fair value of equity
securities, and the expenses and gains that Fang includes in income
from operations and net income. Fang believes that these non-GAAP
measures provide useful information about its operating results,
enhance the overall understanding of its past performance and
future prospects and allow for greater visibility with respect to
key metrics used by Fang\'s management in its financial and
operational decision-making. A limitation of using these non-GAAP
financial measures is that share-based compensation, investment
income, interest income and expenses, income tax expenses, and
depreciation expenses have been and will continue to be a
significant recurring item that will continue to exist in Fang's
business for the foreseeable future. Management compensates for
these limitations by providing specific information regarding the
GAAP amounts excluded from each non-GAAP measure. The accompanying
tables have more details on the reconciliation between non-GAAP
financial measures and their most directly comparable GAAP
financial measures.
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
67135090
|
Toll-Free/Local
Toll:
|
|
United
States
|
+1 866-519-4004 / +1
845-675-0437
|
Hong Kong
|
+852 800-906-601 /
+852 3018-6771
|
Mainland
China
|
+86 800-819-0121 /
+86 400-620-8038
|
Passcode:
|
SFUN
|
A telephone replay of the call will be available after the
conclusion of the conference call from 11:00
AM ET on June 17, 2019 through
9:59 AM ET June 25, 2019. 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 /
+86 800-870-0205
|
Conference
ID:
|
2266449
|
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, financial and value-added
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 value-added services
for, the real estate and home furnishing and improvement sectors in
China. Fang currently maintains
approximately 65 offices to focus on local market needs and its
website and database contains real estate related content covering
658 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
transformation back to a technology-driven Internet platform 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:
Mr. Zijin Li
Acting CFO
Phone: +86-10-5631 8805
Email: lizijin.bj@fang.com
Ms. Jessie Yang
Investor Relations Director
Phone: +86-10-5631 8805
Email: jessieyang@fang.com
Fang Holdings
Limited
|
Condensed
Consolidated Balance Sheets
|
(in thousands of
U.S. dollars, except share data and per share data)
|
|
ASSETS
|
March
31,
|
December
31,
|
|
|
2019
|
2018
|
Current
assets:
|
(Unaudited)
|
(Audited)
|
|
Cash and cash
equivalents
|
198,894
|
195,108
|
|
Restricted cash,
current
|
250,203
|
245,474
|
|
Short-term
investments
|
21,480
|
16,043
|
|
Accounts receivable,
net
|
57,877
|
60,950
|
|
Funds
receivable
|
6,677
|
5,474
|
|
Prepayment and other
current assets
|
29,513
|
27,995
|
|
Commitment
deposits
|
195
|
191
|
|
Loans receivable,
current
|
103,445
|
117,602
|
Total current
assets
|
668,284
|
668,837
|
Non-current
assets:
|
|
|
|
Property and
equipment, net
|
735,187
|
728,312
|
|
Land use
rights
|
33,574
|
33,153
|
|
Loans receivable,
non-current
|
4,424
|
6,249
|
|
Deferred tax
assets
|
2,010
|
2,202
|
|
Deposits for
non-current assets
|
490
|
902
|
|
Restricted cash,
non-current portion
|
6,496
|
6,990
|
|
Long-term
investments
|
412,397
|
373,233
|
|
Other non-current
assets
|
10,978
|
4,558
|
Total non-current
assets
|
1,205,556
|
1,155,599
|
Total
assets
|
1,873,840
|
1,824,436
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
Current
liabilities:
|
|
|
|
Short-term
loans
|
296,987
|
297,811
|
|
Deferred
revenue
|
170,370
|
163,346
|
|
Accrued expenses and
other liabilities
|
128,233
|
131,268
|
|
Customers' refundable
fees
|
3,448
|
3,976
|
|
Income tax
payable
|
3,160
|
4,493
|
|
Amounts due to a
related party
|
-
|
19
|
Total current
liabilities
|
602,198
|
600,913
|
Non-current
liabilities:
|
|
|
|
Long-term
loans
|
122,474
|
123,215
|
|
Convertible senior
notes
|
253,778
|
254,435
|
|
Deferred tax
liabilities
|
105,658
|
97,578
|
|
Other non-current
liabilities
|
162,342
|
153,095
|
Total non-current
liabilities
|
644,252
|
628,323
|
Total
Liabilities
|
1,246,450
|
1,229,236
|
|
|
|
|
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, 2018 and March 31, 2019: 72,069,645
and
72,069,645;
outstanding shares as of December 31, 2018 and March 31,
2019: 65,004,587 and 65,356,951
|
9,286
|
9,286
|
|
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, 2018
and
March 31, 2019, respectively
|
3,124
|
3,124
|
|
Treasure
stock
|
(129,801)
|
(136,615)
|
|
Additional paid-in
capital
|
513,019
|
517,802
|
|
Accumulated other
comprehensive income
|
(59,078)
|
(75,837)
|
|
Retained
earnings
|
290,146
|
276,746
|
Total Fang
Holdings Limited shareholders' equity
|
626,696
|
594,506
|
|
Non controlling
interests
|
694
|
694
|
Total
equity
|
627,390
|
595,200
|
TOTAL LIABILITIES
AND EQUITY
|
1,873,840
|
1,824,436
|
Fang Holdings
Limited
|
Condensed
Consolidated Statements of Comprehensive Income
|
(in thousands of
U.S. dollars, except share data and per share data)
|
|
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
March
31,
|
|
|
2019
|
|
2018
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Revenues:
|
|
|
|
|
Marketing
services
|
17,249
|
|
17,326
|
|
Listing
services
|
21,352
|
|
26,738
|
|
Value-added
services
|
8,706
|
|
8,443
|
|
Financial
services
|
3,499
|
|
5,053
|
|
E-commerce
services
|
1,081
|
|
7,168
|
Total
revenues
|
51,887
|
|
64,728
|
|
|
|
|
|
Cost of
Revenues:
|
|
|
|
|
Cost of
services
|
(11,451)
|
|
(20,592)
|
|
|
|
|
|
Gross
Profit
|
40,436
|
|
44,136
|
|
|
|
|
|
Operating expenses
and income:
|
|
|
|
Selling
expenses
|
(18,568)
|
|
(16,442)
|
|
General and
administrative expenses
|
(23,925)
|
|
(31,467)
|
|
Other income
(loss)
|
104
|
|
(140)
|
|
|
|
|
|
Operating
Loss
|
(1,953)
|
|
(3,913)
|
|
Foreign
exchange loss
|
(262)
|
|
(3)
|
|
Interest
income
|
1,699
|
|
2,645
|
|
Interest
expense
|
(6,045)
|
|
(5,485)
|
|
Investment
income
|
5
|
|
102
|
|
Realized
gain on sale of available-for-sale securities
|
299
|
|
-
|
|
Change in fair value
of securities
|
32,050
|
|
(42,243)
|
|
Government
grants
|
235
|
|
215
|
|
Other
non-operating loss
|
1
|
|
(370)
|
Income (loss)
before income taxes and noncontrolling interests
|
26,029
|
|
(49,052)
|
Income tax
expenses
|
|
|
|
|
Income tax
(expenses) benefits
|
(12,629)
|
|
4,176
|
Net income
(loss)
|
13,400
|
|
(44,876)
|
|
Net loss
attributable to noncontrolling interests
|
-
|
|
-
|
Net income (loss)
attributable to Fang Holdings Limited shareholders
|
13,400
|
|
(44,876)
|
Earnings per share
for Class A and Class B ordinary shares:
|
|
Basic
|
0.15
|
|
(0.51)
|
|
Diluted
|
0.15
|
|
(0.51)
|
Earnings per
ADS:
|
|
|
|
|
Basic
|
0.03
|
|
(0.10)
|
|
Diluted
|
0.03
|
|
(0.10)
|
Weighted average
number of Class A and Class B ordinary shares
outstanding:
|
|
Basic
|
89,688,711
|
|
88,730,798
|
|
Diluted
|
90,632,307
|
|
88,730,798
|
Weighted average
number of ADSs outstanding:
|
|
|
|
Basic
|
448,443,554
|
|
443,653,988
|
|
Diluted
|
453,161,533
|
|
443,653,988
|
Fang Holdings
Limited
|
Reconciliation of
GAAP and Non-GAAP Results
|
( in thousands of
U.S. dollars, except share data and per share data)
|
|
|
|
Three months
ended
|
|
|
March
31,
|
|
March
31,
|
|
|
2019
|
|
2018
|
|
GAAP loss from
operations
|
(1,953)
|
|
(3,913)
|
|
Share-based
compensation expense
|
1,991
|
|
4,499
|
|
Non-GAAP income
from operations
|
38
|
|
586
|
|
|
|
|
|
|
GAAP net income
(loss)
|
13,400
|
|
(44,876)
|
|
Reconciliation
items:
|
|
|
|
|
Share-based
compensation
|
1,991
|
|
4,499
|
|
Investment
income
|
(5)
|
|
(102)
|
|
Realized gain on sale
of available-for-sale securities
|
(299)
|
|
-
|
|
Change in fair value
of securities
|
(32,050)
|
|
42,243
|
|
Subtotal
|
(16,963)
|
|
1,764
|
|
|
|
|
|
|
Tax impact of
reconciliation items
|
7,073
|
|
(11,116)
|
|
|
|
|
|
|
Non-GAAP net
income
|
(9,890)
|
|
(9,352)
|
|
|
|
|
|
|
GAAP earnings per
share for Class A and Class B ordinary shares:
|
|
|
|
|
Basic
|
0.15
|
|
(0.51)
|
|
Diluted
|
0.15
|
|
(0.51)
|
|
GAAP earnings per
ADS:
|
|
|
|
|
Basic
|
0.03
|
|
(0.10)
|
|
Diluted
|
0.03
|
|
(0.10)
|
|
Non-GAAP earnings
per share for Class A and Class B ordinary shares:
|
|
|
|
|
Basic
|
(0.11)
|
|
0.02
|
|
Diluted
|
(0.11)
|
|
0.02
|
|
Non-GAAP earnings
per ADS
|
|
|
|
|
Basic
|
(0.02)
|
|
0.00
|
|
Diluted
|
(0.02)
|
|
0.00
|
|
Weighted average
number of Class A and Class B ordinary shares
outstanding:
|
|
|
|
|
Basic
|
89,688,711
|
|
88,730,798
|
|
Diluted
|
90,632,307
|
|
88,730,798
|
Weighted average
number of ADSs outstanding:
|
|
|
|
Basic
|
448,443,554
|
|
443,653,988
|
|
Diluted
|
453,161,533
|
|
443,653,988
|
|
|
|
|
|
GAAP net income
(loss)
|
13,400
|
|
(44,876)
|
Add
back:
|
|
|
|
|
Share-based
compensation expense
|
1,991
|
|
4,499
|
|
Interest
expense
|
6,045
|
|
5,485
|
|
Income tax expenses
(benefits)
|
12,629
|
|
(4,176)
|
|
Depreciation and
amortization expenses
|
6,931
|
|
6,703
|
Subtract:
|
|
|
|
|
Interest
income
|
(1,699)
|
|
(2,645)
|
|
Investment
income
|
(5)
|
|
(102)
|
|
Realized gain on sale
of available-for-sale securities
|
(299)
|
|
-
|
|
Change in fair value
of securities
|
(32,050)
|
|
42,243
|
Adjusted
EBITDA
|
6,943
|
|
7,131
|
View original
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SOURCE Fang Holdings Limited