Fang Announces First Quarter 2017 Results
First Quarter 2017 Highlights
- Total revenues were
$109.8 million , a decrease of 46.3% from the corresponding period in 2016. - Operating loss was
$6.1 million . Non-GAAP operating loss was$4.6 million . A description of the adjustments from GAAP to non-GAAP operating income is detailed in the Reconciliation Statement following this press release. - Net loss attributable to Fang's shareholders was
$12.0 million . Fully diluted loss per ADS was$0.03 . - Non-GAAP net loss attributable to Fang's shareholders was
$10.5 million . Non-GAAP fully diluted loss per ADS was$0.02 . A description of the adjustments from GAAP to non-GAAP net loss attributable to Fang's shareholders and fully diluted loss per ADS is detailed in the Reconciliation Statement following this press release. - Net cash used in operating activities was
$11.0 million in the first quarter of 2017, compared to cash flow used in operating activities of$67.2 million in the same period of 2016.
First Quarter 2017 Results
Revenues
Fang reported total revenues of
Revenue from e-commerce services was
Revenue from marketing services was
Revenue from listing services was
Revenue from Internet financial services was
Revenue from other value-added services was
Cost of Revenue
Cost of revenue was
Operating Expense
Operating expenses were
Selling expenses were
General and administrative expenses were
Operating Loss/Income
Operating loss was
Income Tax Expenses
Income tax expenses were
Net Loss and EPS
Net loss attributable to Fang's shareholders was
Cash
As of
Business Outlook
The Company is undergoing adjustments to its transformations and is returning to open-platform strategy. Before these changes are finalized, the company will see a decrease in its top line revenue.
Changes of Board Members
Fang has appointed Mr.
Conference Call Information
Fang's management team will host a conference call on the same day at
International Toll: |
+65 67135090 |
Local Toll: |
|
United States |
+1 845-675-0437 / +1 866-519-4004 |
Hong Kong |
+852 3018-6771 / +852 800-906-601 |
Mainland China |
+86 400-620-8038 / +86 800-819-0121 |
Passcode: |
SFUN |
A telephone replay of the call will be available after the conclusion of the conference call from
International Toll: |
+61 2-8199-0299 |
Toll-Free: |
|
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: |
38022810 |
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 the leading real estate Internet portal in
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 the following measures defined as non-GAAP financial measures by the
Fang believes that these non-GAAP financial measures provide meaningful supplemental information to investors regarding its operating performance by excluding share-based compensation expenses and the related tax effects, realized gain on available-for-sale security, interest income and expenses, income tax expenses, and depreciation expense for the relevant period, which may not be indicative of Fang's recurring core business operating results or are not expected to result in future cash payments. These non-GAAP financial measures also facilitate management's internal comparisons to Fang's historical performance and assist its financial and operational decision making. A limitation of using these non-GAAP financial measures is that share-based compensation, interest income and expenses, income tax expenses, and depreciation expenses have been and will continue to be a significant recurring expense 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 table captioned "Reconciliation of GAAP and non-GAAP Results" has more details on the reconciliation between non-GAAP financial measures and their most directly comparable GAAP financial measures.
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 for its online brokerage business to a franchise model and the impact of current and future government policies affecting
For investor and media inquiries, please contact:
Dr. Hua Lei
CFO
Phone: +86-10-5631-8661
Email: leihua@fang.com
Ms.
Senior Investor Relations Manager
Phone: +86-10-5631 8659
Email: tangjunning@fang.com
Ms.
Investor Relations Manager
Phone: +86-10-5631 8174
Email: chengyu.bj@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, |
|
2017 |
2016 |
||
Current assets: |
(Unaudited) |
(Audited) |
|
Cash and cash equivalents |
248,632 |
336,528 |
|
Restricted cash, current |
211,201 |
211,084 |
|
Short-term investments |
82,724 |
42,929 |
|
Accounts receivable, net |
80,098 |
93,672 |
|
Funds receivable |
29,139 |
20,483 |
|
Prepayment and other current assets |
41,289 |
39,824 |
|
Commitment deposits |
6,082 |
6,527 |
|
Loan receivable, current |
37,087 |
41,966 |
|
Amount due from related parties |
190 |
197 |
|
Total current assets |
736,442 |
793,210 |
|
Non-current assets: |
|||
Property and equipment, net |
542,822 |
319,897 |
|
Loan receivable, non-current |
13,629 |
16,808 |
|
Deferred tax assets, non-current |
5,172 |
4,915 |
|
Deposit for non-current assets |
48,987 |
240,712 |
|
Long-term investments |
232,411 |
231,880 |
|
Other non-current assets |
4,282 |
7,391 |
|
Total non-current assets |
847,303 |
821,603 |
|
Total assets |
1,583,745 |
1,614,813 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||
Current liabilities: |
|||
Short-term loans |
200,994 |
212,734 |
|
Deferred revenue |
136,420 |
129,765 |
|
Accrued expenses and other liabilities |
291,859 |
318,540 |
|
Customers' refundable fees |
26,725 |
28,630 |
|
Income tax payable |
6,692 |
6,022 |
|
Total current liabilities |
662,690 |
695,691 |
|
Non-current liabilities: |
|||
Long-term loans |
75,144 |
65,190 |
|
Convertible senior notes |
295,691 |
295,268 |
|
Deferred tax liabilities, non-current |
70,081 |
70,424 |
|
Other non-current liabilities |
417 |
415 |
|
Total non-current liabilities |
441,333 |
431,297 |
|
Total Liabilities |
1,104,023 |
1,126,988 |
|
Equity: |
|||
Class A ordinary shares, par value Hong Kong Dollar |
9,161 |
9,157 |
|
Class B ordinary shares, par value HK$1 per share, |
3,124 |
3,124 |
|
Treasure stock |
(136,615) |
(136,615) |
|
Additional paid-in capital |
489,241 |
488,943 |
|
Accumulated other comprehensive income |
(77,717) |
(81,349) |
|
Retained earnings |
191,853 |
203,870 |
|
Total Fang Holdings Limited shareholders' equity |
479,047 |
487,130 |
|
Non-controlling interests |
675 |
695 |
|
Total equity |
479,722 |
487,825 |
|
TOTAL LIABILITIES AND EQUITY |
1,583,745 |
1,614,813 |
|
Fang Holdings Limited |
||||
Condensed Consolidated Statements of Comprehensive Income |
||||
(in thousands of U.S. dollars, except share data and per share data) |
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Three months ended |
||||
March 31, |
March 31, |
|||
2017 |
2016 |
|||
(Unaudited) |
(Unaudited) |
|||
Revenues: |
||||
E-commerce services |
39,890 |
130,904 |
||
Marketing services |
27,335 |
30,432 |
||
Listing services |
34,043 |
24,086 |
||
Financial services |
2,247 |
10,625 |
||
Other value-added services |
6,288 |
8,576 |
||
Total revenues |
109,803 |
204,623 |
||
Cost of Revenues: |
||||
Cost of services |
(60,726) |
(209,643) |
||
Total Cost of Revenues |
(60,726) |
(209,643) |
||
Gross Profit |
49,077 |
(5,020) |
||
Operating expenses and income: |
||||
Selling expenses |
(23,411) |
(61,597) |
||
General and administrative |
(31,383) |
(43,377) |
||
Other income |
(403) |
- |
||
Operating Income (loss) |
(6,120) |
(109,994) |
||
Foreign exchange gain (loss) |
213 |
(35) |
||
Other-than-temporary |
(951) |
- |
||
Interest income |
2,724 |
3,513 |
||
Interest expense |
(3,841) |
(4,610) |
||
Government grants |
767 |
2,600 |
||
Income (loss) before income taxes and noncontrolling |
(7,208) |
(108,526) |
||
Income tax expenses |
||||
Income tax expenses |
(4,809) |
(5,174) |
||
Net income (loss) |
(12,017) |
(113,700) |
||
Net income attributable to |
- |
(2) |
||
Net income (loss) attributable to Fang Holdings Limited |
(12,017) |
(113,698) |
||
Other comprehensive income (loss), net of tax |
||||
Foreign currency Translation |
3,119 |
(1,153) |
||
Amounts reclassified from |
- |
- |
||
Unrealized gain on available- |
513 |
(4,783) |
||
Total other comprehensive income (loss), net of tax |
3,632 |
(5,936) |
||
Comprehensive income (loss) |
(8,385) |
(119,634) |
||
Earnings per share for Class A and Class B ordinary shares |
||||
Basic |
(0.14) |
(1.20) |
||
Diluted |
(0.14) |
(1.20) |
||
Earnings per ADS |
||||
Basic |
(0.03) |
(0.24) |
||
Diluted |
(0.03) |
(0.24) |
||
Weighted average number of Class A and Class B ordinary shares outstanding: |
||||
Basic |
88,364,639 |
95,075,704 |
||
Diluted |
88,364,639 |
95,075,704 |
||
Weighted average number of ADSs outstanding: |
||||
Basic |
441,823,194 |
475,378,522 |
||
Diluted |
441,823,194 |
475,378,522 |
||
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, |
|||
2017 |
2016 |
|||
GAAP income from operations |
(6,120) |
(109,994) |
||
Share-based compensation |
1,539 |
2,075 |
||
Non-GAAP income from |
(4,581) |
(107,919) |
||
GAAP net income |
(12,017) |
(113,700) |
||
Share-based compensation |
1,539 |
2,075 |
||
Non-GAAP net income |
(10,478) |
(111,625) |
||
Net Income attributable to |
(12,017) |
(113,698) |
||
Share-based compensation |
1,539 |
2,075 |
||
Non-GAAP net Income |
(10,478) |
(111,623) |
||
GAAP earnings per share for |
||||
Basic |
(0.14) |
(1.20) |
||
Diluted |
(0.14) |
(1.20) |
||
GAAP earnings per ADS: |
||||
Basic |
(0.03) |
(0.24) |
||
Diluted |
(0.03) |
(0.24) |
||
Non-GAAP earnings per share for |
||||
Basic |
(0.12) |
(1.17) |
||
Diluted |
(0.12) |
(1.17) |
||
Non-GAAP earnings per ADS: |
||||
Basic |
(0.02) |
(0.23) |
||
Diluted |
(0.02) |
(0.23) |
||
Weighted average number of |
||||
Basic |
88,364,639 |
95,075,704 |
||
Diluted |
88,364,639 |
95,075,704 |
||
Weighted average number of ADSs outstanding: |
||||
Basic |
441,823,194 |
475,378,522 |
||
Diluted |
441,823,194 |
475,378,522 |
||
Non-GAAP Net income |
(10,478) |
(111,625) |
||
Add back: |
||||
Interest expense |
3,841 |
4,610 |
||
Income tax expenses |
4,809 |
5,174 |
||
Depreciation expenses |
5,557 |
5,045 |
||
Subtract: |
||||
Interest income |
(2,724) |
(3,513) |
||
Adjusted EBITDA |
1,005 |
(100,309) |
||
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/fang-announces-first-quarter-2017-results-300476543.html
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