Fang Announces Third Quarter 2020 Unaudited Financial Results

BEIJING,Nov. 13,2020 -- 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 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

Revenues

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

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

Net income was $10.9 million in the third quarter of 2020,393.3% from net income of $0.7 million in the corresponding period of 2019.

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 7:00 AM U.S. EST (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

+86 800-870-0075 / +86 400-120-0948

Direct Event Passcode

1383200#

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:

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:

2585897

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 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)

ASSETS

September 30,

December 31,

2020

2019

Current assets:

Cash and cash equivalents

111,848

105,282

Restricted cash,current

229,168

219,096

Short-term investments

253,135

194,720

Accounts receivable,net

98,999

66,379

Funds receivable

4,514

8,372

Prepayment and other current assets

32,494

31,509

Commitment deposits

193

188

Loans receivable,current

73,899

60,490

Amounts due from related parties

744

644

Total current assets

804,994

686,680

Non-current assets:

Property and equipment,net

693,219

695,457

Deferred tax assets

3,145

6,570

Deposits for non-current assets

499

618

Restricted cash,non-current portion

44,086

42,452

Long-term investments

246,462

341,946

Other non-current assets

38,496

39,179

Total non-current assets

1,025,907

1,126,222

Total assets

1,830,901

1,812,902

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Short-term loans

300,301

264,624

Short-term bond payable

106,209

102,779

Deferred revenue

132,895

134,143

Accrued expenses and other liabilities

112,971

120,244

Customers' refundable fees

3,915

4,981

Income tax payable

14,733

4,207

Amounts due to related parties

12,472

9,227

Total current liabilities

683,496

640,205

Non-current liabilities:

Long-term loans

150,299

184,158

Convertible senior notes

168,452

168,929

Deferred tax liabilities

95,985

90,723

Other non-current liabilities

114,049

138,435

Total non-current liabilities

528,785

582,245

Total Liabilities

1,212,281

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 September 30,2020: 71,775,686 and

71,686; outstanding shares as of December 31,2019 and September

30,2020: 65,403,527 and 65,715,527

9,244

9,244

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 31,2019

and September 30,2020,respectively

3,124

3,124

Treasury stock

(117,183)

(123,216)

Additional paid-in capital

540,049

528,620

Accumulated other comprehensive loss

(75,247)

(98,371)

Retained earnings

257,939

270,358

Total Fang Holdings Limited shareholders' equity

617,926

589,759

Non controlling interests

694

693

Total equity

618,620

590,452

TOTAL LIABILITIES AND EQUITY

1,902

Unaudited Condensed Consolidated Statements of Comprehensive Income[i]

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

Three months ended

September 30,

September 30,

2020

2019

Revenues:

Marketing services

30,273

29,993

Listing services

10,061

19,438

Leads generation services

12,948

14,099

Financial services

1,864

1,710

Value-added services

1,382

1,514

E-commerce services

149

796

Total revenues

56,677

67,550

Cost of revenues:

Cost of services

(5,066)

(5,694)

Total cost of revenues

(5,066)

(5,694)

Gross profit

51,611

61,856

Operating expenses and income:

Selling expenses

(15,077)

(14,822)

General and administrative expenses

(20,005)

(21,688)

Other income

1,191

1,385

Operating income

17,720

26,731

Foreign exchange (loss)/income

(5,138)

832

Interest income

3,192

1,562

Interest expense

(5,527)

(5,185)

Investment income

460

2,068

Realized gain on sale of available-for-sale

securities

-

711

Change in fair value of securities

19,393

(26,148)

Government grants

72

44

Income before income taxes and noncontrolling

interests

30,172

615

Income tax expense

Income tax (expense)/benefit

(19,241)

117

Net income

10,931

732

Net income attributable to noncontrolling

interests

-

-

Net income attributable to Fang Holdings Limited

shareholders

10,931

732

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

Basic

0.12

0.01

Diluted

0.12

0.01

[i] On June 19,a ratio change that had the same effect as a 1-for-10 reverse ADS split took effect,and

as a result,one ADS currently represents ten Class A ordinary shares.

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