Fang Announces Fourth Quarter and Fiscal Year 2019 Unaudited Financial Results

BEIJING,April 24,2020 -- 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 31,2019.

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 incomefrom 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 revenueswere $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. Jian Liu,CEO of Fang. "For the year of 2020,challenges and opportunities co-exist because of the potential effects of COVID-19. I believe our new initiatives,including online live broadcastings,online exhibitions and VR live,will be strong drivers of our business."

Fourth Quarter 2019 Financial Results

Revenues

Fang reported total revenues of $49.3 million in the fourth quarter of 2019,a decrease of 26.7% from $67.3 million in the corresponding period of 2018.

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 $4.1 million in the fourth quarter of 2019,a decrease of 41.6% from $7.0 million in the corresponding period of 2018,primarily due tothe decline in sales and the optimization in cost structure.

Operating Expenses

Operating expenses were $68.4 million in the fourth quarter of 2019,an increase of 74.3% from $39.2 million in the corresponding period of 2018.

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 $21.0 million in the fourth quarter of 2019,compared to operating income from continuing operations of $21.1 million in the corresponding period of 2018.

Change in Fair Value of Securities

Change in fair value of securities for the fourth quarter of 2019 was a loss of $3.5 million,compared to a loss of $31.4 million in the corresponding period of 2018,mainly due to the fluctuation in market price of investments in equity securities.

Income Tax Benefits/Expenses

Income tax benefits were $3.4 million in the fourth quarter of 2019,compared to an expense of $23.7 million in the corresponding period of 2018.

Net Loss

Net loss was $26.2 million in the fourth quarter of 2019,compared to a net loss of $29.4 million in the corresponding period of 2018.

Fiscal Year 2019 Financial Results

Revenues

Fang reported total revenues of $219.7 million for 2019,a decrease of 8.5% from $240.0 million in 2018.

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 $26.5 million for 2019,a decrease of 42.9% from $46.4 million in 2018,primarily due to cost savings from optimizing our core business.

Operating Expenses

Operating expenses were $174.6 million for 2019,a decrease of 7.2% from $188.3 million in 2018.

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 $9.8 million in 2018 to $24.1 million for 2019.

Change in Fair Value of Securities

Change in fair value of securities for 2019 was a loss of $46.1 million,compared to a loss of $167.4 million in 2018,mainly due to the fluctuation in market price of investments in equity securities.

Income Tax Benefits

Income tax benefits were $12.5 million for 2019,a decrease of 34.2% from $19.0 million in 2018,primarily due to the effect of change in fair value of equity securities and the reversal of previously recorded ASC 740 (FIN 48) income tax and interest liability.

Net Loss

Net loss was $7.7 million for 2019,compared to a net loss of $114.9 million in 2018.

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 8:00 AM U.S. Eastern Time (8:00 PM on the same day,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

+86 800-870-0075 / +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 11:00 AM ET on April 24,2020 through 9:59 AM ET May 2,2020. 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:

8819045

A live and archived webcast of the conference call will be available on Fang's website athttp://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,the impact of Fang's transformation back to a technology-driven Internet platform 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[1]

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

ASSETS

December 31,

December 31,

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,

600,000,000 shares authorized for Class A and Class B in aggregate,issued

shares as of December 31,2018 and December 31,2019: 72,069,645 and

71,775,686; outstanding shares as of December 31,

2019: 65,004,587 and 65,403,005

9,244

9,286

Class B ordinary shares,par value HK$1 per share,600,000 shares

authorized for Class A and Class B in aggregate,and 24,336,650 shares and

24,650 shares issued and outstanding as at December 31,2018 and

December 31,2019,respectively

3,124

3,124

Less: Treasury stock

(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

Total Fang Holdings Limited shareholders' equity

595,402

594,506

Noncontrolling interests

693

694

Total equity

596,095

595,200

TOTAL LIABILITIES AND EQUITY

1,436

Unaudited Condensed Consolidated Statements of Comprehensive Loss[1]

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

Three months ended

Year ended

December 31,

December 31,

2019

2018

2019

2018

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

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

(4,392)

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

operations

(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

securities

(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

interests from continuing operations

(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,

net of income taxes

(26,218)

(36,179)

(21,646)

(141,418)

Income from discontinued operations,net of income

taxes

-

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 Fang Holdings Limited

shareholders

(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

89,655

90,473,173

90,073,715

91,994,057

[1] Impact of the Separation of China Index Holdings Ltd (NASDAQ: CIH) ("CIH") on the Company's Financial Statements: The separation of CIH represents a strategic shift of Fang and has a major effect on Fang's results of operations,the business operated by CIH has been reclassified as discontinued operations. For the periods presented in this press release,the assets and liabilities of the discontinued operations are presented separately on the consolidated balance sheets,and the results of the discontinued operations,less applicable income taxes,are reported as a separate component of income,which is income from discontinued operations,on the consolidated statements of comprehensive income (loss).

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