fang.com becoming a investment corp

Accuracy score :
97%

Fang Holdings Ltd ADR  SFUN

Summary (from latest annual report and quarterly report 2016)

  • Total equity: 638 million USD
  • Market Cap is 1.3 billion USD ( last price of the stock is 2.86 USD)
  • Fang Holdings Ltd is a real estate internet portal in China. Its service offerings include marketing services, E-Commerce services, Listing services and other value-added services. It also operates home furnishing and improvement websites
  • Equity of total company increased from 633 million USD in 2014 to 638 million in 2016
  • Company has 642 million USD in cash on account
  • In 2016 company has 289 million USD long-term debt, short – term debt was 482 million USD (In 2014 total debt was 581 million USD)
  • Company has 5 million USD treasury stock
  • In 2016 quarterly report - total equity increased to 638 million  USD from 633 million USD in 2014, total debt is 771 million USD in 2016)
  • Company's revenue increased in 2015 to 884 million USD from 703 million in 2014
  • Net loss in 2015 was 15 million USD, Net income in 2014 was 253 million USD
  • In 2015 company paid 83 million USD dividend to its shareholders

Fang Holdings Ltd ADR  SFUN

Fang Holdings Ltd is a real estate internet portal in China. Its service offerings include marketing services, E-Commerce services, Listing services and other value-added services. It also operates home furnishing and improvement websites. They conduct their real estate services business primarily in China, and their business depends substantially on conditions of the PRC real estate market. Company operates the leading real estate Internet portal in China in terms of the number of page views and visitors to their websites in 2015.

Their principal website, www.fang.com, is the leading real estate Internet portal and one of the leading home furnishing and improvement websites in China in terms of visitor traffic. As part of their effort to promote their brand recognition, they changed the address of their principal website from www.soufun.com to www.fang.com in July 2014. “Fang” means “home” in Chinese. They have developed a series of mobile apps to meet the diverse needs of home buyers, renters and real estate agents. As of March 31, 2016, they had 18 iOS- and 18 Android-based mobile apps.

 

  • E-commerce services represent 53.7% of total revenues - revenues generated from e-commerce services were US$188.1 million, US$244.3 million and US$474.8 million in 2013, 2014 and 2015, respectively, representing 29.5%, 34.8% and 53.7% of their revenues
  • Marketing services represent 28.3% of total revenues - revenues from marketing services were US$278.3 million, US$294.5 million and US$249.9 million in 2013, 2014 and 2015, respectively, representing 43.7%, 41.9% and 28.3% of their revenues
  • Listing services represent 12.2% of total revenues - revenues from listing services were US$161.5 million, US$145.7 million and US$107.9 million in 2013, 2014 and 2015, respectively, representing 25.3%, 20.7% and 12.2% of their total revenues in those years
  • Financial services represent 3.4% of total revenues - revenues from financial services were nil, US$3.2 million and US$29.6 million in 2013, 2014 and 2015, respectively, representing nil, 0.5% and 3.4% of their revenues
  • Other value-added services represent 2.4% of total revenues - revenues from other value-added services were US$9.4 million, US$15.2 million and US$21.4 million in 2013, 2014 and 2015, respectively, representing 1.5%, 2.1% and 2.4% of their revenues

 

 

SFUN standalone subsidiaries and acquisitions :

  • Company acquired a controlling stake (70%) in Chongqing Wanli New Energy Co., Ltd. ("Wanli"), a company listed on the Shanghai Stock Exchange (stock code: 600847)  REVERSE MERGER  (no effect to value of company other then dual market listing )
  • In December 2013, they entered into an agreement with a real estate developer to purchase 22,402 sq.m. of office space in an office building being developed by the developer in Chengdu, Sichuan province, China for RMB232.5 million (38.1 million USD). In June 2014, they entered into an agreement to purchase an additional 24,226 sq.m. of office space and 373 parking spaces in the same building from the developer for a consideration of RMB345.0 million (56.4 million USD)
  • In November, 2015, they entered into a commercial properties purchase agreement with a real estate developer to purchase an office building in Beijing to be used as their new headquarters establishment with a total price approximately 243 million USD. This property has a total usable office space of approximately 70,000 sq.m. and is located at Guogongzhuang Middle Road, Fengtai District, Beijing, which they believe will provide strong support to their fast expanding headcounts and Beijing operations. As of December 31, 2015, the seller had delivered this property to them against a payment of half of the total purchase price totaling 119.9 million USD
  • Fang Holdings own certain commercial properties of approximately 3,111 sq.m. in Sanya, Hainan province, China. They primarily use these properties as their local office. Fang Holdings own a portion of a building known as the BaoAn Building located at 800 Dongfang Road, Pudong, Shanghai. The property has usable space of approximately 42,000 sq.m. and is currently used for offices, retail space and a hotel – worth 30 million USD
  • Fang Holdings own an office building with a gross floor area of 325,000 square feet at 72 Wall Street, New York. They have primarily used this building as their global training center. (Fang Holdings bought AIG building for 46 million USD)
  • In last 4 years Fang Holdings invested 60 million USD in several startups

 

Total = 830.4 million usd

  • In December 2013 and January 2014, Fang Holdings sold an aggregate principal amount of US$350 million and US$50 million, respectively, of convertible senior notes due 2018 (the “2018 Notes”)
  • In September and November 2015, Fang Holdings sold an aggregate principal amount of U$100 million and US$200 million, respectively, of convertible notes due 2022 (the “2022 Notes”)

 

Opinion about the company

Fundamentally it is a not bad company and in the future we can expect its growth (Total debt is 771 million USD, company has 642 million USD in cash on account, ROE is negative : around -31 %).