Fang Holdings Limited reported unaudited consolidated earnings results for the first quarter ended March 31, 2018. For the quarter, the company's total revenues were $62,831,000 against $109,803,000 reported a year ago. Operating loss was $3,913,000 against $6,120,000 reported a year ago. Interest income was $2,645,000 against $2,724,000 reported a year ago. Loss before income taxes and non-controlling interests was $49,052,000 against $7,208,000 reported a year ago. Net loss attributable to the company was $44,876,000 or $0.51 per basic and diluted share for Class A and Class B ordinary shares against $12,017,000 or $0.14 per basic and diluted share for Class A and Class B ordinary shares reported a year ago. Basic and diluted loss per ADS was $0.10 against $0.03 a year ago. Non-GAAP income from operations was $586,000 against loss of $4,581,000 reported a year ago. Non-GAAP net income attributable to company was $1,764,000 or $0.02 per basic and diluted share for Class A and Class B ordinary shares against loss of $10,478,000 or $0.12 per basic and diluted share for Class A and Class B ordinary shares reported a year ago. Adjusted EBITDA was $7,131,000 against $1,005,000 reported a year ago. Net loss attributable to Fang's shareholders was primarily due to the change in fair value of equity securities of a loss of $42.2 million in accordance with new accounting pronouncement. Total revenues decreased 42.8%, primarily due to the decline in e-commerce services revenue. Operating loss was primarily due to the downsized e-commerce services and effective cost control. Net cash used in operating activities was $7.0 million in the first quarter of 2018, compared to cash flow used in operating activities $11.0 million in the same period of 2017.

Based on current market conditions and current operations, the company expects its non-GAAP net income to be profitable for the fiscal year ending December 31, 2018. The company gave out $100 million to $120 million net profit guidance at the end of 2017. And at this moment, based on the first quarter results and the market condition, the company thinks it need to be more aggressive on the second half of 2018. It means the company wants to expand and also want to increase its spending in the marketing, the promotion. So it means, probably, the company cannot maintain its previous $100 million to $120 million net income guidance. So the company just adjusts down its guidance to be profitable. Also, another reason is that because the share price of the volume was decreased a lot, which also impact its GAAP net income. So also, the company changed the GAAP to a non-GAAP net income, so this is another reason. The company probably spends $100 million or $150 million something for its $20 billion on the first quarter 2018.