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LONDON, UK / ACCESSWIRE / April 12, 2017 / Active Wall St. announces its post-earnings coverage on Fang Holdings Ltd. (NYSE: SFUN). The Company disclosed its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year 2016 (FY16) on March 31, 2017. The Beijing, China-based Company's quarterly total revenues declined 42% y-o-y, while annual total revenues grew 4% y-o-y. Register with us now for your free membership at:

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One of Fang Holdings' competitors within the Internet Information Providers space, Alphabet Inc. (NASDAQ: GOOGL), is expected to report its fiscal quarter ending March 2017 earnings results on April 27, 2017 after market close. AWS will be initiating a research report on Alphabet following the release of its next earnings results.

Today, AWS is promoting its earnings coverage on SFUN; touching on GOOGL. Get our free coverage by signing up to

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Earnings Reviewed

Fang reported total revenue of $174.66 million in Q4 FY16 compared to $300.66 million recorded in Q4 FY15. Total revenue numbers for Q4 FY16 lagged behind market consensus estimates of $187.61 million. The Company stated that the quarterly revenue decline was primarily due to the fall in revenues in ecommerce and marketing services segment.

The Chinese real estate internet portal reported GAAP net loss attributable to Fang of $10.38 million, $0.11 loss per diluted share, or $0.02 loss per diluted American Depository Shares (ADS), in Q4 FY16 compared to GAAP net loss attributable to Fang of $38.81 million, or $0.44 loss per share, or $0.09 loss per ADS, in the corresponding year ago period.

The Company's non-GAAP net loss attributable to Fang declined during the reported quarter to $8.89 million, or $0.10 loss per diluted share, $0.02 loss per ADS, from non-GAAP net loss attributable to Fang $68.89 million, or $0.78 loss per diluted share, or $0.16 loss per ADS, in Q4 FY15. Meanwhile, Wall Street had expected the Company to report non-GAAP loss of $0.01 per diluted ADS during Q4 FY16.

In FY16, Fang's total revenues grew to $916.39 million from $883.55 million in FY15. However, the Company's GAAP net loss attributable to Fang widened during FY16 to $169.64 million, or $1.81 loss per diluted share, or $0.36 loss per ADS, from GAAP net loss attributable to Fang of $15.10 million, or $0.18 loss per diluted share, or $0.04 loss per ADS, in FY15. Additionally, the Company's FY16 non-GAAP net loss attributable to Fang came in at $174.02 million, or $1.86 loss per diluted share, or $0.37 loss per ADS, versus non-GAAP net loss attributable to Fang of $73.58 million, or $0.86 loss per diluted share, or $0.17 loss per ADS, in FY15.

Operating Metrics

For Q4 FY16, the Company's gross profit came in at $85.26 million compared to $82.30 million in the year ago same period. Fang reported operating loss of $8.89 million in Q4 FY16 compared to operating loss of $32.57 million in the prior year's corresponding quarter. Furthermore, adjusted EBITDA, for the reported quarter came in at $2.38 million against adjusted EBITDA loss of $23.47 million in previous year comparable period.

Segment Performance

During Q4 FY16, Fang's ecommerce services segment reported revenues of $89.85 million, declining 48% from $173.86 million in the previous year's same quarter. The segment's revenue decline was attributed to the decreased transaction volume impacted by the tightening regulations along with strategic changes by the company to scale down on rental and home furnishing business.

The Company generated $48.02 million as revenues from marketing services in Q4 FY16, falling 42% y-o-y, as the Company was marred with reduced demand from property developers for online advertising under the regulatory change.

Due to increased number of paying members and unit price, Fang's listing services revenues surged 74.0% in Q4 FY16 to $38.63 million from $22.26 million reported in the year ago same quarter.

In Q4 FY16, Internet financial services' contribution to total revenues of the Company was $0.61 million, declining 96% from $15.65 million recorded in the prior year's same quarter. The Company attributed the fall in the segment's revenues to change in policy, which impacted the new home financial services, along with decreased secondary transaction volumes of the Company's own brokerage services.

Cash Flow and Balance Sheet

During the three months ended December 31, 2016, Fang's net cash generated by operating activities was $85.1 million compared $31.6 million in Q4 FY15. As on December 31, 2016, the Company had cash and cash equivalents balance of $336.53 million compared to a balance of $817.92 million as on December 31, 2015. The Company's long-term loans balance as on December 31, 2016, was $65.19 million, while it had not reported any long-term loan in its books of accounts on December 31, 2015.

Earnings Outlook

In its guidance for full year FY16, Fang expects a decline in its revenue but projects profit during full financial year.

Stock Performance

At the close of trading session Tuesday, April 11, 2017, Fang Holdings' stock price slipped 3.05% to end the day at $3.50. A total volume of 1.88 million shares were exchanged during the session. The Company's share price has gained 8.02% in the past one month. The stock currently has a market cap of $1.52 billion.

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