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Earnings Review and Free Research Report: Fang Reported First Quarter Results

Research Desk Line-up: China Finance Online Post Earnings Coverage

LONDON, UK / ACCESSWIRE / July 5, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Fang Holdings Ltd. (NYSE: SFUN), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=SFUN, following the Company's disclosure of its first quarter fiscal 2017 financial results on June 20, 2017. The real estate internet Company's net loss narrowed on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

http://protraderdaily.com/register/

Get more of our free earnings reports coverage from other constituents of the Internet Information Providers industry. Pro-TD has currently selected China Finance Online Co. Ltd. (NASDAQ: JRJC) for due-diligence and potential coverage as the Company announced on June 14, 2017, its unaudited financial results for Q1 2017 which ended on March 31, 2017. Register for a free membership today, and be among the early birds that get access to our report on China Finance Online when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on SFUN; also brushing on JRJC. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=SFUN

http://protraderdaily.com/optin/?symbol=JRJC

Earnings Reviewed

Fang reported total revenues of $109.8 million in the first quarter of 2017 ended March 31, 2017, a 46.3% decrease from $204.6 million in Q1 2016, primarily due to the decline in ecommerce services revenue.

During Q1 2017, Fang's revenue from ecommerce services was $39.9 million, down 69.5% from $130.9 million in Q1 2016, primarily attributable to the decreased transaction volume generated by a downsized self-owned and operated brokerage team. The Company's revenue from marketing services was $27.3 million in the reported quarter, a decrease of 10.2% from $30.4 million in the prior year's same quarter, primarily due to the continued impact of the tightened government policies affecting the real estate market in China.

For Q1 2017, Fang's revenue from listing services was $34.0 million, an increase of 41.3% from $24.1 million in Q1 2016, primarily driven by the increased number of paying members. The Company's revenue from internet financial services was $2.2 million in the reported quarter, a decrease of 78.9% from $10.6 million in the prior year's same quarter, principally attributable to the impact of the tightened government policies affecting, in particular, the new home financial services and the decreased secondary transaction volumes of Fang's own brokerage services.

Fang's revenue from other value-added services was $6.3 million in Q1 2017, representing a drop of 25.9% from $8.5 million in Q1 2016, primarily due to the re-classification accounting treatment of BaoAn's revenue. In the year ago quarter, revenue from other value-added services net BanAn's revenue was $6.3 million.

During Q1 2017, Fang's cost of revenue was $60.7 million, a decrease of 71.0% from $209.6 million Q1 2016, primarily driven by the downsizing of the secondary brokerage team. The Company's operating expenses totaled $55.2 million in the reported quarter, a decrease of 47.4% from $105.0 million in the prior year's comparable period.

Fang's selling expenses were $23.4 million in Q1 2017, a decrease of 62.0% from $61.6 million for Q1 2016, primarily driven by the decrease of advertising and promotion fee, as well as sales commission fee. The Company's general and administrative expenses were $31.4 million in the reported quarter, representing a drop of 27.7% from $43.4 million for the year earlier comparable quarter, primarily due to the effective cost control measures.

Fang's operating loss was $6.1 million in Q1 2017 compared to operating loss of $110.0 million in Q1 2016, primarily attributable to the downsized ecommerce services and effective cost control.

Net loss attributable to Fang's shareholders was $12.0 million in Q1 2017 compared to net loss of $113.7 million in Q1 2016. The Company's loss per fully-diluted ordinary share and ADS were $0.14 and $0.03 in the reported quarter versus a loss of $1.20 and $0.24, respectively, in the prior year's comparable quarter. Losses, adjusted for stock option expense, were $.02 per share.

Cash Matters

As of March 31, 2017, Fang had cash, cash equivalents, and short-term investments of $542.6 million compared to $590.5 million as of December 31, 2016. The Company's net cash used in operating activities was $11.0 million in Q1 2017 compared to cash flow used in operating activities of $67.2 million in Q1 2016. The decrease in cash flows used operating activities was primarily due to a $101.7 million decrease in net loss compared to the prior year's same quarter.

Business Outlook

Fang stated that it is undergoing adjustments to its transformations and is returning to open-platform strategy. Before these changes are finalized, the Company expects to see a drop in its top-line revenue.

Changes of Board Members

In the earnings press release, Fang announced that it has appointed Mr. Jingbo Wang, partner of IDG, as a director to its board of directors, and Mr. Mingqiang Bi, managing director of China International Capital Corporation (CICC), as an independent director and a member of the audit committee of the Board. Mr. Shan Li, Mr. Quan Zhou, and Mr. Sol Trujillo have recently resigned from the Board due to personal reasons.

Stock Performance

On Monday, July 03, 2017, the stock closed the trading session at $3.33, tumbling 10.24% from its previous closing price of $3.71. A total volume of 2.42 million shares have exchanged hands. Fang Holdings' stock price gained 1.52% in the previous six months. Furthermore, since the start of the year, shares of the Company have rallied 1.52%. The stock currently has a market cap of $1.27 billion.

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