Fang Announces Third Quarter 2019 Results, Board Changes and Date of 2019 Annual General Meeting
Third Quarter 2019 Highlights
- Total revenues were
$67.6 million , an increase of 11.8% from$60.4 million in the corresponding period of 2018. - Operating income from continuing operations was
$26.7 million , an increase of 164.8% from$10.1 million in the corresponding period of 2018. - Net income was
$0.7 million , a decrease of 92.8% from$10.2 million in the corresponding period of 2018.
"Our marketing and leads generation services continued to generate growth for our business," commented Mr.
Third Quarter 2019 Results
Revenues
Fang reported total revenues of
- Revenue from marketing services was
$30.0 million in the third quarter of 2019, an increase of 16.1% from$25.8 million in the corresponding period of 2018, driven by Fang's efforts in customer development. - Revenue from listing services was
$19.4 million in the third quarter of 2019, a decrease of 3.7% from$20.2 million in the corresponding period of 2018. - Revenue from leads generation services was
$14.1 million in the third quarter of 2019, an increase of 181.0% from$5.0 million in the corresponding period of 2018, driven by the increased effectiveness of the service and customer development. - Revenue from financial services was
$1.7 million in the third quarter of 2019, a decrease of 69.7% from$5.6 million in the corresponding period of 2018, due to a decrease in average loan receivable balances.
Cost of Revenue
Cost of revenue was
Operating Expenses
Operating expenses were
- Selling expenses were
$14.8 million in the third quarter of 2019, a decrease of 10.7% from$16.6 million in the corresponding period of 2018. - General and administrative expenses were
$21.7 million in the third quarter of 2019, a decrease of 7.1% from$23.4 million in the corresponding period of 2018.
Operating Income from Continuing Operations
Operating income from continuing operations was
Change in Fair Value of Securities
Change in fair value of securities for the third quarter of 2019 was a loss of
Income Tax Benefits
Income tax benefits were
Net Income
Net income was
Business Outlook
Based on current operations and market conditions, Fang's management remains confident that net income is expected to be positive for the fiscal year ending
Recent Developments
Board Changes
Mr.
Fang has appointed Ms.
Ms.
Fang to Hold 2019 Annual General Meeting on
Fang will hold its 2019 annual general meeting of shareholders at Fang's
The proposals to be submitted for shareholders' approval at the annual general meeting are (i) the re-election of Mr. Howard Huyue Zhang as an independent director of the Board and a member and the chair of the audit committee of the Board, and (ii) the re-election of Ms.
Conference Call Information
Fang's management team will host a conference call on the same day at
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
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: |
4498166 |
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
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
Fang Holdings Limited |
||||
Unaudited Condensed Consolidated Balance Sheets[i] |
||||
(in thousands of U.S. dollars, except share data and per share data) |
||||
ASSETS |
September 30, |
December 31, |
||
2019 |
2018 |
|||
Current assets: |
||||
Cash and cash equivalents |
214,417 |
171,183 |
||
Restricted cash, current |
214,943 |
245,474 |
||
Short-term investments |
48,739 |
16,043 |
||
Accounts receivable, net |
74,176 |
58,687 |
||
Funds receivable |
7,298 |
5,474 |
||
Prepayment and other current assets |
26,251 |
27,894 |
||
Commitment deposits |
185 |
191 |
||
Loans receivable, current |
40,749 |
117,602 |
||
Current assets of discontinued operations |
- |
26,289 |
||
Total current assets |
626,758 |
668,837 |
||
Non-current assets: |
||||
Property and equipment, net |
693,588 |
727,739 |
||
Land use rights |
31,551 |
33,153 |
||
Loans receivable, non-current |
- |
6,249 |
||
Deferred tax assets |
1,780 |
2,202 |
||
Deposits for non-current assets |
395 |
902 |
||
Restricted cash, non-current portion |
38,965 |
6,990 |
||
Long-term investments |
334,318 |
373,233 |
||
Other non-current assets |
12,198 |
4,558 |
||
Non-current assets of discontinued operations |
- |
573 |
||
Total non-current assets |
1,112,795 |
1,155,599 |
||
Total assets |
1,739,553 |
1,824,436 |
||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||
Current liabilities: |
||||
Short-term loans |
262,022 |
297,811 |
||
Deferred revenue |
130,674 |
142,473 |
||
Accrued expenses and other liabilities |
107,405 |
118,925 |
||
Customers' refundable fees |
4,233 |
3,976 |
||
Income tax payable |
14,367 |
2,383 |
||
Amounts due to related parties |
271 |
19 |
||
Current liabilities of discontinued operations |
- |
35,326 |
||
Total current liabilities |
518,972 |
600,913 |
||
Non-current liabilities: |
||||
Long-term loans |
146,762 |
123,215 |
||
Convertible senior notes |
253,021 |
254,435 |
||
Deferred tax liabilities |
84,404 |
97,578 |
||
Other non-current liabilities |
125,317 |
150,837 |
||
Non-current liabilities of discontinued operations |
- |
2,258 |
||
Total non-current liabilities |
609,504 |
628,323 |
||
Total Liabilities |
1,128,476 |
1,229,236 |
||
Equity: |
||||
Class A ordinary shares, par value Hong Kong Dollar ("HK$") 1 per share, 71,775,686; outstanding shares as of December 31, 2018 and September 30, |
9,244 |
9,286 |
||
Class B ordinary shares, par value HK$1 per share, 600,000,000 shares |
3,124 |
3,124 |
||
Treasury stock |
(123,226) |
(136,615) |
||
Additional paid-in capital |
523,984 |
517,802 |
||
Accumulated other comprehensive loss |
(100,668) |
(75,837) |
||
Retained earnings |
297,925 |
276,746 |
||
Total Fang Holdings Limited shareholders' equity |
610,383 |
594,506 |
||
Non controlling interests |
694 |
694 |
||
Total equity |
611,077 |
595,200 |
||
TOTAL LIABILITIES AND EQUITY |
1,739,553 |
1,824,436 |
Unaudited Condensed Consolidated Statements of Comprehensive Income[1] |
||||||||
(in thousands of U.S. dollars, except share data and per share data) |
||||||||
Three months ended |
||||||||
September 30, |
September 30, |
|||||||
2019 |
2018 |
|||||||
Revenues: |
||||||||
Marketing services |
29,993 |
25,843 |
||||||
Listing services |
19,438 |
20,175 |
||||||
Leads generation services |
14,099 |
5,017 |
||||||
Value-added services |
1,514 |
1,524 |
||||||
Financial services |
1,710 |
5,644 |
||||||
E-commerce services |
796 |
2,217 |
||||||
Total revenues |
67,550 |
60,420 |
||||||
Cost of revenues: |
||||||||
Cost of services |
(5,694) |
(14,035) |
||||||
Total cost of revenues |
(5,694) |
(14,035) |
||||||
Gross profit |
61,856 |
46,385 |
||||||
Operating expenses and income: |
||||||||
Selling expenses |
(14,822) |
(16,606) |
||||||
General and administrative expenses |
(21,688) |
(23,355) |
||||||
Other income |
1,385 |
3,670 |
||||||
Operating income |
26,731 |
10,094 |
||||||
Foreign exchange loss |
832 |
195 |
||||||
Interest income |
1,562 |
2,353 |
||||||
Interest expense |
(5,185) |
(5,657) |
||||||
Investment income, net |
2,068 |
918 |
||||||
Realized gain on sale of available-for-sale securities |
711 |
252 |
||||||
Change in fair value of securities |
(26,148) |
(10,880) |
||||||
Government grants |
44 |
26 |
||||||
Other non-operating loss |
- |
442 |
||||||
Income (Loss) before income taxes and noncontrolling interests from continuing operations |
615 |
(2,257) |
||||||
Income tax benefits |
||||||||
Income tax benefits |
117 |
5,356 |
||||||
Net income from continuing operations, net of income taxes |
732 |
3,099 |
||||||
Income from discontinued operations, net of income taxes |
- |
7,125 |
||||||
Net income |
732 |
10,224 |
||||||
Net income attributable to noncontrolling interests |
- |
- |
||||||
Net income attributable to Fang Holdings Limited shareholders |
732 |
10,224 |
||||||
Earnings per share for Class A and Class B ordinary shares and per ADS: |
||||||||
Basic |
0.01 |
0.11 |
||||||
Diluted |
0.01 |
0.11 |
||||||
Earnings from continuing operations per share for Class A and Class B ordinary shares and per ADS: |
||||||||
Basic |
0.01 |
0.03 |
||||||
Diluted |
0.01 |
0.03 |
||||||
Earnings from discontinued operations per share for Class A and Class B ordinary shares and per ADS: |
||||||||
Basic |
- |
0.08 |
||||||
Diluted |
- |
0.08 |
||||||
[i]Impact of the Separation of
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SOURCE
For investor and media inquiries, please contact: Mr. Zijin Li, Acting CFO, Email: ir@fang.com; Ms. Jessie Yang-Investor Relations Director, +8610 5631 8805, Email: ir@fang.com