Fang Holdings Limited

Fourth-quarter 2020 total revenue was $56.5 million, up 14.6% from $49.3 million a year earlier. Q4 revenue by segment was: marketing services $30.1 million, up 59.1%; listing services $9.7 million, down 23.1%; leads generation services $11.5 million, down 20%; and financial services $3.9 million, up 175.9%. Cost of revenue was $3.5 million, down 13.2%; operating expenses were $42.2 million, down 38.3%; operating income from continuing operations was $5.9 million versus an operating loss of $21 million; and net loss was $76,000 versus a net loss of $26.2 million. For fiscal 2020, total revenue was $216.2 million, down 1.6% from $219.7 million; operating income from continuing operations was $32.7 million, up 31.4%; and net loss was $6.5 million versus $10.3 million in 2019. Management said it predicts positive net income for the year of 2020-2021 based on current operations and market conditions.

The CEO framed the quarter as an ongoing turnaround, with the company still working through the strategic review of General Atlantic’s privatization offer received in November. He said management and the board are analyzing the offer, that there is no set timeline, and that the company will issue a public release once a decision is made. His tone was cautious and procedural, emphasizing that the process is still underway.

The financial update highlighted broad margin and cost improvements. Fang reduced cost of revenue to $3.5 million in Q4 from $4.1 million, cut operating expenses to $42.2 million from $68.4 million, and delivered $5.9 million in operating income from continuing operations versus a $21 million operating loss last year. For the full year, cost of revenue fell to $17.6 million from $28.3 million and selling expenses declined to $59.2 million from $73.7 million, while operating income from continuing operations rose to $32.7 million. Management also said it expects positive net income for 2020-2021, though this is preliminary and subject to change.

The only substantive question was about the General Atlantic privatization situation and whether there was a timeline or sale process underway. Management said the offer is still being assessed by management and the board, there is no timeline yet, and investors should wait for a public release when a decision is reached. The CEO repeatedly characterized it as “in process” and said they would update the market as soon as possible.