BEIJING, Nov. 13, 2020 /PRNewswire/ -- Fang Holdings Limited (NYSE: SFUN) ("Fang" or the "Company"), a leading real estate Internet portal in China, today announced its unaudited financial results for the third quarter ended September 30, 2020.
Third Quarter 2020 Highlights
Total revenues were $56.7 million, a decrease of 16.1% from $67.6 million in the corresponding period of 2019.
Operating income from continuing operations was $17.7 million, a decrease of 33.7% from $26.7 million in the corresponding period of 2019.
Net income was $10.9 million, an increase of 1,393.3% from $0.7 million in the corresponding period of 2019.
Third Quarter 2020 Financial Results
Fang reported total revenues of $56.7 million in the third quarter of 2020, a decrease of 16.1% from $67.6 million in the corresponding period of 2019, mainly due to the decrease in revenues from listing services.
Revenue from marketing services was $30.3 million in the third quarter of 2020, which remained relatively stable with $30.0 million in the corresponding period of 2019.
Revenue from listing services was $10.1 million in the third quarter of 2020, a decrease of 48.2% from $19.4 million in the corresponding period of 2019, mainly due to the decrease in the number of paying customer.
Revenue from leads generation services was $12.9 million in the third quarter of 2020, a decrease of 8.2% from $14.1 million in the corresponding period of 2019.
Revenue from financial services was $1.9 million in the third quarter of 2020, an increase of 9.0% from $1.7 million in the corresponding period of 2019, mainly due to an increase in average loan receivable balances.
Cost of Revenue
Cost of revenue was $5.1 million in the third quarter of 2020, a decrease of 11.0% from $5.7 million in the corresponding period of 2019, primarily due to optimization in cost structure.
Operating expenses were $35.1 million in the third quarter of 2020, a decrease of 3.9% from 36.5 million in the corresponding period of 2019, mainly due to the decrease in staff related costs.
Selling expenses were $15.1 million in the third quarter of 2020, which remained relatively stable with $14.8 million in the corresponding period of 2019.
General and administrative expenses were $20.0 million in the third quarter of 2020, a decrease of 7.8% from $21.7 million in the corresponding period of 2019, mainly due to the decrease in staff related costs.
Operating Income from Continuing Operations
Operating income from continuing operations was $17.7 million in the third quarter of 2020, a decrease of 33.7% from $26.7 million in the corresponding period of 2019, mainly due to the decrease in total revenue.
Change in Fair Value of Securities
Change in fair value of securities for the third quarter of 2020 was a gain of $19.4 million, compared to a loss of $26.1 million in the corresponding period of 2019, mainly due to the fluctuation in market price of investments in equity securities.
Income Tax Expenses
Income tax expenses were $19.2 million in the third quarter of 2020, compared to income tax benefits of $0.1 million in the corresponding period of 2019, mainly due to the effect of change in fair value of equity securities.
Net income was $10.9 million in the third quarter of 2020, an increase of 1,393.3% from net income of $0.7 million in the corresponding period of 2019.
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 7:00 AM U.S. EST (8:00 PM Beijing/Hong Kong time). The dial-in details for the live conference call are:
+1 877-440-9253 / +1 631-460-7472
+852 800-906-603 / +852 3018-6773
+86 800-870-0075 / +86 400-120-0948
Direct Event Passcode
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 (1383200#) and unique registrant ID. Get prompted 10 min prior to the start of the conference. Enter the Direct Event Passcode above (1383200#), 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/2585897
A telephone replay of the call will be available after the conclusion of the conference call from 10:00 AM ET on November 13, 2020 through 7:59 AM ET November 21, 2020. The dial-in details for the telephone replay are:
+1 855-452-5696 / +1 646-254-3697
+852 800-963-117 / +852 3051-2780
+86 400-602-2065 / +86 800-870-0206
A live and archived webcast of the conference call will be available on Fang's website at http://ir.fang.com.
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, leads generation and financial 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 other value-added services for, the real estate and home furnishing and improvement sectors in China. Fang currently maintains approximately 74 offices to focus on local market needs and its website and database contains real estate related content covering 665 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 business development strategies, the impact of the COVID-19 pandemic, 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.
Fang Holdings Limited
Unaudited Condensed Consolidated Balance Sheets
(in thousands of U.S. dollars, except share data and per share data)
Cash and cash equivalents
Restricted cash, current
Accounts receivable, net
Prepayment and other current assets
Loans receivable, current
Amounts due from related parties
Total current assets
Property and equipment, net
Deferred tax assets
Deposits for non-current assets
Restricted cash, non-current portion
Other non-current assets
Total non-current assets
LIABILITIES AND SHAREHOLDERS' EQUITY
Short-term bond payable
Accrued expenses and other liabilities
Customers' refundable fees
Income tax payable
Amounts due to related parties
Total current liabilities
Convertible senior notes
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Class A ordinary shares, par value Hong Kong Dollar ("HK$") 1 per share,
71,775,686; outstanding shares as of December 31, 2019 and September
Class B ordinary shares, par value HK$1 per share, 600,000,000 shares
Additional paid-in capital
Accumulated other comprehensive loss
Total Fang Holdings Limited shareholders' equity
Non controlling interests
TOTAL LIABILITIES AND EQUITY
Unaudited Condensed Consolidated Statements of Comprehensive Income[i]
(in thousands of U.S. dollars, except share data and per share data)
Three months ended
Leads generation services
Cost of revenues:
Cost of services
Total cost of revenues
Operating expenses and income:
General and administrative expenses
Foreign exchange (loss)/income
Realized gain on sale of available-for-sale
Change in fair value of securities
Income before income taxes and noncontrolling
Income tax expense
Income tax (expense)/benefit
Net income attributable to noncontrolling
Net income attributable to Fang Holdings Limited
Earnings per share for Class A and Class B ordinary shares:
[i] On June 19, 2020, a ratio change that had the same effect as a 1-for-10 reverse ADS split took effect, and
SOURCE Fang Holdings Limited