Fang Announces Fourth Quarter and Fiscal Year 2019 Unaudited Financial Results
Fourth Quarter 2019 Highlights
- Total revenues were
$49.3 million , a decrease of 26.7% from$67.3 million in the corresponding period of 2018. - Operating loss from continuing operations was
$21.0 million , compared to an operating income from continuing operations of$21.1 million in the corresponding period of 2018. - Net loss was
$26.2 million , compared to a net loss of$29.4 million in the corresponding period of 2018.
Fiscal Year 2019 Highlights
- Total revenues were
$219.7 million , a decrease of 8.5% from$240.0 million in 2018. - Operating income from continuing operations was
$24.1 million , an increase of 145.7% from$9.8 million in 2018. - Net loss was
$7.7 million , compared to a net loss of$114.9 million in 2018.
"In 2019, we had challenges but also achievements," commented Mr.
Fourth Quarter 2019 Financial Results
Revenues
Fang reported total revenues of
- Revenue from marketing services was
$18.9 million in the fourth quarter of 2019, a decrease of 35.0% from$29.1 million in the corresponding period of 2018, mainly due to the decrease in aggregate market demand. - Revenue from listing services was
$12.7 million in the fourth quarter of 2019, a decrease of 25.3% from$16.9 million in the corresponding period of 2018, mainly due to the decrease in the number of paying customers. - Revenue from leads generation services was
$14.4 million in the fourth quarter of 2019, an increase of 16.2% from$12.4 million in the corresponding period of 2018. - Revenue from financial services was
$1.4 million in the fourth quarter of 2019, a decrease of 69.2% from$4.6 million in the corresponding period of 2018, mainly due to the decrease in average loan receivable balance.
Cost of Revenue
Cost of revenue was
Operating Expenses
Operating expenses were
- Selling expenses were
$26.3 million in the fourth quarter of 2019, an increase of 78.9% from$14.7 million in the corresponding period of 2018, mainly due to the increase in promotional expense. - General and administrative expenses were
$42.1 million in the fourth quarter of 2019, an increase of 71.6% from$24.5 million in the corresponding period of 2018, mainly due to the increase in staff related costs.
Operating (Loss)/Income from Continuing Operations
Operating loss from continuing operations was
Change in Fair Value of Securities
Change in fair value of securities for the fourth quarter of 2019 was a loss of
Income Tax Benefits/Expenses
Income tax benefits were
Net Loss
Net loss was
Fiscal Year 2019 Financial Results
Revenues
Fang reported total revenues of
- Revenue from marketing services was
$94.6 million for 2019, a decrease of 3.8% from$98.4 million in 2018. - Revenue from listing services was
$63.5 million for 2019, a decrease of 22.4% from$81.7 million in 2018, mainly due to the decreased number of paying members in listing services. - Revenue from leads generation services was
$43.3 million for 2019, an increase of 103.3% from$21.3 million in 2018, driven by the increase in effectiveness of services and customer acceptance. - Revenue from financial services was
$9.6 million for 2019, a decrease of 47.1% from$18.1 million in 2018.
Cost of Revenue
Cost of revenue was
Operating Expenses
Operating expenses were
- Selling expenses were
$73.6 million for 2019, an increase of 24.6% from$59.1 million in 2018. - General and administrative expenses were
$101.1 million for 2019, a decrease of 21.8% from$129.2 million in 2018, mainly due to the decrease in bad debt.
Operating Income from Continuing Operations
Operating income from continuing operations increased from
Change in Fair Value of Securities
Change in fair value of securities for 2019 was a loss of
Income Tax Benefits
Income tax benefits were
Net Loss
Net loss was
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
International Toll: |
+65 67135600 |
Toll-Free/Local Toll: |
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+1 877-440-9253 / +1 631-460-7472 |
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+852 800-906-603 / +852 3018-6773 |
Mainland |
+86 800-870-0075 / +86 400-120-0948 |
Direct Event Passcode |
1578624# |
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 (1578624#) and unique registrant ID. Get prompted 10 min prior to the start of the conference. Enter the Direct Event Passcode above (1578624#), 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/8819045
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: |
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+1 855-452-5696 / +1 646-254-3697 |
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+852 800-963-117 / +852 3051-2780 |
Mainland |
+86 400-602-2065 / +86 800-870-0206 |
Conference ID: |
8819045 |
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
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
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Unaudited Condensed Consolidated Balance Sheets[1] |
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(in thousands of |
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ASSETS |
|
|
|
2019 |
2018 |
||
Current assets: |
|||
Cash and cash equivalents |
181,702 |
171,183 |
|
Restricted cash, current |
218,112 |
245,474 |
|
Short-term investments |
118,979 |
16,043 |
|
Accounts receivable, net |
67,369 |
58,687 |
|
Funds receivable |
8,372 |
5,474 |
|
Prepayments and other current assets |
32,954 |
27,894 |
|
Commitment deposits |
188 |
191 |
|
Loans receivable, current |
60,490 |
117,602 |
|
Amounts due from related parties |
369 |
- |
|
Current assets of discontinued operations |
- |
26,289 |
|
Total current assets |
688,535 |
668,837 |
|
Non-current assets: |
|||
Property and equipment, net |
695,457 |
727,739 |
|
Land use rights |
- |
33,153 |
|
Loans receivable, non-current |
- |
6,249 |
|
Deferred tax assets |
6,362 |
2,202 |
|
Deposits for non-current assets |
618 |
902 |
|
Restricted cash, non-current portion |
42,452 |
6,990 |
|
Long-term investments |
341,946 |
373,233 |
|
Other non-current assets |
39,400 |
4,558 |
|
Non-current assets of discontinued operations |
- |
573 |
|
Total non-current assets |
1,126,235 |
1,155,599 |
|
Total assets |
1,814,770 |
1,824,436 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||
Current liabilities: |
|||
Short-term loans |
267,029 |
297,811 |
|
Short term bond payable |
102,779 |
- |
|
Deferred revenue |
136,859 |
142,473 |
|
Accrued expenses and other liabilities |
118,977 |
118,924 |
|
Customers' refundable fees |
5,538 |
3,976 |
|
Income tax payable |
3,834 |
2,383 |
|
Amounts due to related parties |
9,227 |
19 |
|
Current liabilities of discontinued operations |
- |
35,327 |
|
Total current liabilities |
644,243 |
600,913 |
|
Non-current liabilities: |
|||
Long-term loans |
182,321 |
123,215 |
|
Convertible senior notes |
169,146 |
254,435 |
|
Deferred tax liabilities |
84,964 |
97,578 |
|
Other non-current liabilities |
138,001 |
150,837 |
|
Non-current liabilities of discontinued operations |
- |
2,258 |
|
Total non-current liabilities |
574,432 |
628,323 |
|
Total Liabilities |
1,218,675 |
1,229,236 |
|
Equity: |
|||
Class A ordinary shares, par value Hong Kong Dollar ("HK$") 1 per share, 71,775,686; outstanding shares as of |
9,244 |
9,286 |
|
Class B ordinary shares, par value |
3,124 |
3,124 |
|
Less: |
(123,226) |
(136,615) |
|
Additional paid-in capital |
528,357 |
517,802 |
|
Accumulated other comprehensive loss |
(93,070) |
(75,837) |
|
Retained earnings |
270,973 |
276,746 |
|
|
595,402 |
594,506 |
|
Noncontrolling interests |
693 |
694 |
|
Total equity |
596,095 |
595,200 |
|
TOTAL LIABILITIES AND EQUITY |
1,814,770 |
1,824,436 |
Unaudited Condensed Consolidated Statements of Comprehensive Loss[1] |
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(in thousands of |
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Three months ended |
Year ended |
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|
|
|
|
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2019 |
2018 |
2019 |
2018 |
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Revenues: |
|||||||
Marketing services |
18,919 |
29,117 |
94,639 |
98,377 |
|||
Leads generation services |
14,414 |
12,407 |
43,300 |
21,303 |
|||
Listing services |
12,662 |
16,948 |
63,471 |
81,741 |
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Value-added services |
1,712 |
1,381 |
5,893 |
5,182 |
|||
Financial services |
1,426 |
4,637 |
9,561 |
18,060 |
|||
E-commerce services |
191 |
2,787 |
2,847 |
15,384 |
|||
Total revenues |
49,324 |
67,277 |
219,711 |
240,047 |
|||
Cost of revenues: |
|||||||
Cost of services |
(4,086) |
(6,995) |
(26,472) |
(46,392) |
|||
Total Cost of Revenues |
(4,086) |
(6,995) |
(26,472) |
(46,392) |
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Gross Profit |
45,238 |
60,282 |
193,239 |
193,655 |
|||
Operating (expenses) income: |
|||||||
Selling expenses |
(26,290) |
(14,692) |
(73,568) |
(59,064) |
|||
General and administrative expenses |
(42,099) |
(24,539) |
(101,080) |
(129,224) |
|||
Other income |
2,197 |
5 |
5,477 |
4,427 |
|||
Operating (loss) / Income from continuing |
(20,954) |
21,056 |
24,068 |
9,794 |
|||
Foreign exchange gain/loss |
(46) |
(606) |
153 |
(598) |
|||
Interest income |
4,319 |
1,910 |
9,200 |
10,202 |
|||
Interest expense |
(9,006) |
(5,217) |
(25,932) |
(21,174) |
|||
Investment income, net |
86 |
1,011 |
2,644 |
6,816 |
|||
Realized gain on sale of available-for-sale |
(721) |
148 |
861 |
761 |
|||
Change in fair value of securities |
(3,450) |
(31,361) |
(46,062) |
(167,402) |
|||
Government grants |
184 |
584 |
927 |
1,224 |
|||
Other non-operating loss |
- |
(7) |
- |
(30) |
|||
Loss before income taxes and noncontrolling |
(29,588) |
(12,482) |
(34,141) |
(160,407) |
|||
Income tax benefits(expenses) |
|||||||
Income tax benefits |
3,370 |
(23,697) |
12,495 |
18,989 |
|||
Net (loss) income from continuing operations, |
(26,218) |
(36,179) |
(21,646) |
(141,418) |
|||
Income from discontinued operations, net of income |
- |
6,777 |
13,937 |
26,509 |
|||
Net loss |
(26,218) |
(29,402) |
(7,709) |
(114,909) |
|||
Net loss attributable to noncontrolling interests |
(1) |
2 |
(1) |
2 |
|||
Net loss attributable to |
(26,217) |
(29,404) |
(7,708) |
(114,911) |
|||
Earnings per share for Class A and Class B ordinary shares and per ADS: |
|||||||
Basic |
(0.29) |
(0.33) |
(0.09) |
(1.29) |
|||
Diluted |
(0.29) |
(0.33) |
(0.09) |
(1.29) |
|||
Earnings from continuing operations per share for Class A and Class B ordinary shares and per ADS: |
|||||||
Basic |
(0.29) |
(0.41) |
(0.24) |
(1.59) |
|||
Diluted |
(0.29) |
(0.41) |
(0.24) |
(1.59) |
|||
Earnings from discontinued operations per share for Class A and Class B ordinary shares and per ADS: |
|||||||
Basic |
- |
0.08 |
0.16 |
0.30 |
|||
Diluted |
- |
0.07 |
0.15 |
0.29 |
|||
Weighted average number of Class A and Class B ordinary shares outstanding and ADSs outstanding: |
|||||||
Basic |
89,739,655 |
89,180,170 |
89,510,533 |
88,749,432 |
|||
Diluted |
89,739,655 |
90,473,173 |
90,073,715 |
91,994,057 |
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[1]Impact of the Separation of |
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SOURCE
Mr. Zijin Li, Acting CFO, ir@fang.com; Ms. Jessie Yang, Investor Relations Director, ir@fang.com, +8610 5631-8805