SHANGHAI, China, June 30 /Xinhua-PRNewswire-FirstCall/ -- E-House (China) Holdings Limited (“E-House” or the “Company”) (NYSE: EJ), a leading real estate services company in China, today reaffirmed its revenue guidance for the fiscal quarter ending June 30, 2008. Although transaction activities in the Chinese real estate industry remain sluggish compared to 2007 due to overall market adjustment and the recent earthquake in Sichuan Province, the Company expects its total revenues for the second quarter to remain within the guidance range previously provided as a result of expanded business scale and market share.
E-House noted that the real estate industry in China has been in an adjustment period since the fourth quarter of 2007, characterized by reductions in transaction volumes across most geographic regions and substantial slowdown or reversal of price increases. Although transaction activities began to show signs of recovery in some regions in March 2008, such recovery did not become stronger in the second quarter. Furthermore, the strong earthquake in Sichuan Province on May 12 had a short-term negative impact on real estate transactions across all regions in China. As a result, E-House expects that total real estate transaction volume in the second quarter for China as a whole, as well as most key regions, will likely decrease substantially compared to the same period in 2007.
Despite the above, E-House has been able to expand its business scale and market share as a result of a substantial increase in its project pipeline for primary real estate agency services, increases in real estate consulting and information services revenues, and strategic cooperation with leading developers in China. Although the second quarter is just ending and E-House has not begun to compile its quarterly financial statements, the Company expects its total revenues for the second quarter of 2008 to remain within the previously announced guidance range of $41 million to $44 million, representing an increase of 71% to 83% from the same period in 2007.
“E-House’s ability to continue to achieve growth despite challenging market conditions is a reflection of the success of our growth strategy and our enhanced competitive strength,” said Mr. Xin Zhou, E-House’s chairman and chief executive officer. “Since the second half of 2007, we have greatly increased our project pipeline across all regions in China and have entered into strategic partnerships with some of China’s leading developers. These partnerships are progressing well and the resulting increase in project pipeline has enabled us to increase our revenues this year despite declining industry transaction volume. The enhanced project pipeline also provides a visible source of future revenue growth as the projects we have signed-up will eventually launch and generate agency revenue for us.”
Among E-House’s strategic partners, Evergrande Real Estate Group Co., Ltd. recently completed a $600 million private equity placement and Central China Real Estate Group completed a $175 million initial public offering. E-House believes that these transactions will provide additional support for the developers to execute their respective business plans and further ensure the success of their strategic partnership with E-House.
About E-House
E-House (China) Holdings Limited (“E-House”) (NYSE: EJ) is a leading real estate services company in China. Since its inception in 2000, E-House has experienced rapid growth and is China’s largest real estate agency and consulting services company with a presence in more than 30 cities. E-House provides primary real estate agency services, secondary real estate brokerage services and real estate consulting and information services, and has received numerous awards for its innovative and high-quality services, including “China’s Best Company” from the National Association of Real Estate Brokerage and Appraisal Companies. E-House believes it has the largest and most comprehensive real estate database system in China, providing up-to-date and in-depth information covering residential and commercial real estate properties in all major regions in China. For more information about E-House, please visit http://www.ehousechina.com .
Safe Harbor: Forward-Looking Statements
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “may,” “intend,” “is currently reviewing,” “it is possible,” “subject to” and similar statements. Among other things, the quotations from management in this press release, as well as E-House’s strategic and operational plans, contain forward-looking statements. E-House may also make written or oral forward-looking statements in its reports with the U.S. Securities and Exchange Commission including reports on Forms 20-F and 6-K, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, as well as E-House’s beliefs and expectations, are forward-looking statements and are subject to change, and such change may be material and may have a material adverse effect on the Company’s financial condition and results of operations for one or more prior periods. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results for E-House’s second quarter of 2008 to differ materially from those contained in this press release. Potential risks and uncertainties include, but are not limited to, E-House’s susceptibility to fluctuations in the real estate market of China, governmental measures aimed at China’s real estate industry, failure of the industry to develop or mature as quickly as expected, decrease in the value of E-House’s brand or image, failure to execute E-House’s strategies and business plans or manage E-House’s growth, the loss of E-House’s competitive edge, failure to compete successfully, E-House’s reliance on a concentrated number of real estate developers, and other risks outlined in E-House’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. All information provided in this press release is as of the date of such press release and E-House does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
For investor and media inquiries, please contact:
In China:
Kate Kui
Director of Corporate Development and Investor Relations
E-House (China) Holdings Limited
Tel: +86-21-5298-0219
Email: katekui@ehousechina.com
Cathy Li
Ogilvy Financial, Beijing
Tel: +86-10-8520-6104
Email: cathy.li@ogilvy.com
In the U.S.
Jeremy Bridgman
Ogilvy Financial, New York
Tel: +1-212-880-5363
Email: jeremy.bridgman@ogilvypr.com
