PR Newswire | Mar 26, 2021 05:46AM EDT

03/26 04:45 CDT

Fang Announces Fourth Quarter and Fiscal Year 2020 Unaudited Financial Results BEIJING, March 26, 2021

BEIJING, March 26, 2021 /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 fourth quarter and fiscal year ended December 31, 2020.

Fourth Quarter 2020 Highlights

* Total revenues were $56.5 million, an increase of 14.6% from $49.3 million in the corresponding period of 2019. * Operating income from continuing operations was $5.9 million, compared to an operating loss from continuing operations of $21.0 million in the corresponding period of 2019. * Net loss was $76 thousand, compared to a net loss of $26.2 million in the corresponding period of 2019.

Fiscal Year 2020 Highlights

* Total revenues were $216.2 million, a decrease of 1.6% from $219.7 million in 2019. * Operating income from continuing operations was $32.7 million, an increase of 31.4% from $24.9 million in 2019. * Net loss was $6.5 million, compared to a net loss of $10.3 million in 2019.

Fourth Quarter 2020 Financial Results

Revenues

Fang reported total revenues of $56.5 million in the fourth quarter of 2020, an increase of 14.6% from $49.3 million in the corresponding period of 2019.

* Revenue from marketing services was $30.1 million in the fourth quarter of 2020, an increase of 59.1% from $18.9 million in the corresponding period of 2019. * Revenue from listing services was $9.7 million in the fourth quarter of 2020, a decrease of 23.1% from $12.7 million in the corresponding period of 2019, mainly due to the decrease in the number of paying customers. * Revenue from leads generation services was $11.5 million in the fourth quarter of 2020, a decrease of 20.0% from $14.4 million in the corresponding period of 2019. * Revenue from financial services was $3.9 million in the fourth quarter of 2020, an increase of 175.9% from $1.4 million in the corresponding period of 2019, mainly due to the increase in average loan receivable balance.

Cost of Revenue

Cost of revenue was $3.5 million in the fourth quarter of 2020, a decrease of 13.2% from $4.1 million in the corresponding period of 2019, primarily due to the optimization in cost structure.

Operating Expenses

Operating expenses were $42.2 million in the fourth quarter of 2020, a decrease of 38.3% from $68.4 million in the corresponding period of 2019.

* Selling expenses were $16.4 million in the fourth quarter of 2020, a decrease of 37.8% from $26.3 million in the corresponding period of 2019, mainly due to the decrease in staff cost and promotional expense. * General and administrative expenses were $25.8 million in the fourth quarter of 2020, a decrease of 38.6% from $42.1 million in the corresponding period of 2019, mainly due to the decrease in staff related costs.

Operating income/(loss) from Continuing Operations

Operating income from continuing operations was $5.9 million in the fourth quarter of 2020, compared to operating loss from continuing operations of $21.0 million in the corresponding period of 2019.

Change in Fair Value of Securities

Change in fair value of securities for the fourth quarter of 2020 was a loss of $2.3 million, compared to a loss of $3.5 million in the corresponding period of 2019, mainly due to the fluctuation in market price of investments in equity securities.

Income Tax Benefits

Income tax benefits were $4.2 million in the fourth quarter of 2020, an increase of 24.3% from $3.4 million in the corresponding period of 2019.

Net Loss

Net loss was $76 thousand in the fourth quarter of 2020, compared to a net loss of $26.2 million in the corresponding period of 2019.

Fiscal Year 2020 Financial Results

Revenues

Fang reported total revenues of $216.2 million for 2020, a decrease of 1.6% from $219.7 million in 2019.

* Revenue from marketing services was $109.1 million for 2020, an increase of 15.2% from $94.6 million in 2019. * Revenue from listing services was $44.2 million for 2020, a decrease of 30.4% from $63.5 million in 2019, mainly due to the decreased number of paying members in listing services. * Revenue from leads generation services was $47.8 million for 2020, an increase of 10.4% from $43.3 million in 2019, driven by the increase in effectiveness of services and customer acceptance. * Revenue from financial services was $9.1 million for 2020, a decrease of 5.0% from $9.6 million in 2019.

Cost of Revenue

Cost of revenue was $17.6 million for 2020, a decrease of 37.7% from $28.3 million in 2019, primarily due to optimization in cost structure.

Operating Expenses

Operating expenses were $163.4 million for 2020, a decrease of 5.6% from $173.1 million in 2019.

* Selling expenses were $59.2 million for 2020, a decrease of 19.6% from $73.7 million in 2019. * General and administrative expenses were $104.1 million for 2020, an increase of 4.7% from $99.4 million in 2019.

Operating Income from Continuing Operations

Operating income from continuing operations was $32.7 million for 2020, an increase of 31.4% from $24.9 million in the corresponding period of 2019.

Change in Fair Value of Securities

Change in fair value of securities for 2020 was a loss of $26.2 million, compared to a loss of $46.1 million in 2019, mainly due to the fluctuation in market price of investments in equity securities.

Income Tax Benefits

Income tax benefits were $4.5 million for 2020, a decrease of 53.1% from $9.5 million in 2019, mainly due to the effect of change in fair value of equity securities.

Net Loss

Net loss was $6.5 million for 2020, compared to a net loss of $10.3 million in 2019.

Business Outlook

Based on current operations and market conditions, Fang's management predicts a positive net income for the year of 2021, 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 March 26, 2021 at 8:00 AM U.S. Eastern Time (8:00 PM Beijing/Hong Kong time). The dial-in details for the live conference call are:

International Toll +65 67135600 Toll-Free/Local Toll United States +1 877-440-9253 / +1 631-460-7472 Hong Kong +852 800-906-603 / +852 3018-6773 Mainland China +86 800-820-5506 / +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 join the call.

Direct Event online registration http://apac.directeventreg.com/registration/event/8574127

A telephone replay of the call will be available after the conclusion of the conference call from 11:00 AM ET on March 26, 2021 through 8:59 AM ETApril 3, 2021. The dial-in details for the telephone replay are:

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 / +86 800-870-0206 Conference ID: 8574127

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 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.

For investor and media inquiries, please contact:

Ms. Jessie YangInvestor Relations Director Email: ir@fang.com

Fang Holdings Limited

Unaudited Condensed Consolidated Balance Sheets

(in thousands of U.S. dollars, except share data and per share data)

ASSETS December 31, December 31,

2020 2019

Current assets:

Cash and cash equivalents 130,055 105,282

Restricted cash, current 278,854 219,096

Short-term investments 91,587 194,720

Accounts receivable, net 95,246 66,379

Funds receivable 4,924 8,372

Prepayments and other current assets 37,054 31,509

Commitment deposits 201 188

Loans receivable, current 90,909 60,490

Amounts due from related parties 673 644

Total current assets 729,503 686,680

Non-current assets:

Property and equipment, net 713,599 695,457

Deferred tax assets 3,698 6,570

Deposits for non-current assets 497 618

Restricted cash, non-current portion 44,050 42,452

Long-term investments 372,962 341,946

Other non-current assets 40,621 39,179

Total non-current assets 1,175,427 1,126,222

Total assets 1,904,930 1,812,902

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Short-term loans 334,086 264,624

Short term bond payable - 102,779

Deferred revenue 140,293 134,143

Accrued expenses and other liabilities 127,261 120,244

Customers' refundable fees 4,167 4,981

Income tax payable 23,048 4,207

Amounts due to related parties 11,144 9,227

Total current liabilities 639,999 640,205

Non-current liabilities:

Long-term loans 115,980 184,158

Long-term bond payable 110,316 -

Convertible senior notes 168,452 168,929

Deferred tax liabilities 85,724 90,723

Other non-current liabilities 118,713 138,435

Total non-current liabilities 599,185 582,245

Total Liabilities 1,239,184 1,222,450

Equity:

Class A ordinary shares, par value Hong Kong Dollar ("HK$") 1 per share,600,000,000 shares authorized for Class A and Class B in aggregate, issued shares as of December 31, 2019 and December 31, 2020: 71,775,686 and71,775,686; outstanding shares as of December 31, 2019 and December 31, 2020: 65,403,527 and 65,715,527 9,244 9,244

Class B ordinary shares, par value HK$1 per share, 600,000,000 sharesauthorized for Class A and Class B in aggregate, and 24,336,650 shares and 24,336,650 shares issued and outstanding as at December 31, 2019 andDecember 31, 2020, respectively

3,124 3,124

Less: Treasury stock (117,183) (123,216)

Additional paid-in capital 542,151 528,620

Accumulated other comprehensive loss (30,147) (98,371)

Retained earnings 257,862 270,358

Total Fang Holdings Limited shareholders' equity 665,051 589,759

Noncontrolling interests 695 693

Total equity 665,746 590,452

TOTAL LIABILITIES AND EQUITY 1,904,930 1,812,902



Unaudited Condensed Consolidated Statements of Comprehensive Loss[i]

(in thousands of U.S. dollars, except share data and per share data)

Three months ended Year ended

December December December December 31, 31, 31, 31,

2020 2019 2020 2019

Revenues:

Marketing services 30,104 18,919 109,070 94,639

Leads generation services 11,532 14,414 47,801 43,300

Listing services 9,732 12,662 44,206 63,471

Financial services 3,935 1,426 9,082 9,561

Value-added services 1,194 1,712 5,517 5,893

E-commerce services 12 191 476 2,847

Total revenues 56,509 49,324 216,152 219,711

Cost of revenues:

Cost of services (3,545) (4,086) (17,609) (28,260)

Total Cost of Revenues (3,545) (4,086) (17,609) (28,260)

Gross Profit 52,964 45,238 198,543 191,451

Operating (expenses) income:

Selling expenses (16,364) (26,290) (59,226) (73,662)

General and administrative expenses (25,829) (42,099) (104,149) (99,442)

Other income/(loss) (4,843) 2,197 (2,505) 6,518

Operating income / (loss) from continuing operations 5,928 (20,954) 32,663 24,865

Foreign exchange gain/ (loss) (5,435) (46) (9,105) 154

Interest income 3,159 4,319 12,472 9,038

Interest expense (6,085) (9,006) (23,879) (25,402)

Investment income (loss), net (53) 86 1,745 2,644

Realized gain on sale of available-for-sale securities - (721) - 861

Change in fair value of securities (2,316) (3,450) (26,249) (46,062)

Government grants 537 184 1,419 927

Loss before income taxes and noncontrolling interests from continuing operations (4,265) (29,588) (10,934) (32,975)

Income tax benefits

Income tax benefits 4,189 3,370 4,473 9,544

Net (loss) income from continuing operations, net of income taxes (76) (26,218) (6,461) (23,431)

Income from discontinued operations, net of income taxes - - - 13,181

Net loss (76) (26,218) (6,461) (10,250)

Net loss attributable to noncontrolling interests (1) (1) (2) (1)

Net loss attributable to Fang Holdings Limited shareholders (75) (26,217) (6,459) (10,249)

Earnings per share for Class A and Class B ordinary shares :

Basic (0.00) (0.29) (0.07) (0.11)

Diluted (0.00) (0.29) (0.07) (0.11)

[i] On June 19, 2020, a ratio change that had the same effect as a 1-for-10reverse ADS split took effect, and as a result, one ADS currently representsten Class A ordinary shares.

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SOURCE Fang Holdings Limited