BEIJING, June 20, 2019 /PRNewswire/ -- China Index Holdings Limited (NASDAQ: CIH), ("CIH" or the "Company"), the largest real estate information and analytics service platform provider in China*, today announced its unaudited financial results** for the first quarter ended March 31, 2019.
First Quarter 2019 Highlights
"There is a huge potential in digitizing China's property market, " commented Ms. Yu Huang, CEO of CIH. "As the pioneer in the digital world of China's property market, CIH is taking the advantage of the first mover and positioned to keep its leadership in empowering China's property market, especially commercial property market, by big data and innovative technologies."
First Quarter 2019 Financial Results
Revenues
CIH reported total revenues of RMB119.1 million in the first quarter of 2019, an increase of 35.2% from RMB88.2 million in the corresponding period of 2018.
Revenues from information and analytics services (SaaS) were RMB56.8 million in the first quarter of 2019, an increase of 18.1% from RMB48.1 million in the corresponding period of 2018, primarily due to an increase in number of customers.
Revenues from marketplace services were RMB62.3 million in the first quarter of 2019, an increase of 55.7% from RMB40.1 million in the corresponding period of 2018.
Cost of Revenue
Cost of revenue was RMB22.8 million in the first quarter of 2019, an increase of 1.4% from RMB22.5 million in the corresponding period of 2018.
Operating Expenses
Selling and marketing expenses were RMB21.3 million in the first quarter of 2019, an increase of 35.4% from RMB15.7 million in the corresponding period of 2018, primarily due to an increase in personnel costs resulting from the growing number of selling and marketing personnel headcount.
General and administrative expenses were RMB6.2 million in the first quarter of 2019, an increase of 12.9% from RMB5.5 million in the corresponding period of 2018, primarily due to an increase in personnel costs to support our business expansion.
Research and development expenses were RMB5.5 million in the first quarter of 2019, an increase of 43.0% from RMB3.9 million in the corresponding period of 2018, primarily due to an increase in staff costs driven by the growth of the research and development team.
Operating Income
Operating Income was RMB63.3 million in the first quarter of 2019, an increase of 56.0% from RMB40.6 million in the corresponding period of 2018.
Income Tax Expenses
Income tax expenses were RMB10.2 million in the first quarter of 2019, an increase of 54.6% from RMB6.6 million in the corresponding period of 2018.
Net Income
Net income was RMB53.2 million in the first quarter of 2019, an increase of 46.9% from RMB36.2 million in the corresponding period of 2018.
Business Outlook
Based on current operations and market conditions, CIH's total revenue for the year of 2019 is expected to be between approximately RMB580.0 million and approximately RMB610.0 million. This represents a year to year increase from approximately 37.8% to approximately 44.9%. These estimates represent the management's current and preliminary view, which are subject to change.
Conference Call Information
CIH's management team will host a conference call on June 20, 2019 at 8:00 AM U.S. EST (8:00 PM Beijing/Hong Kong time). The dial-in details for the live conference call are:
International Toll: |
+65 67135090 |
Toll-Free/Local Toll: |
|
United States |
+1 866-519-4004 / +1 845-675-0437 |
Hong Kong |
+852 800-906-601 / +852 3018-6771 |
Mainland China |
+86 800-819-0121 / +86 400-620-8038 |
A telephone replay of the call will be available after the conclusion of the conference call from 11:00 AM ET on June 20, 2019 through 9:59 AM ET June 28, 2019. The dial-in details for the telephone replay are:
International Toll: |
+61 2-8199-0299 |
Toll-Free/Local Toll: |
|
United States |
+1 855-452-5696 / +1 646-254-3697 |
Hong Kong |
+852 800-963-117 / +852 3051-2780 |
Mainland China |
+86 400-602-2065 / +86 800-870-0205 |
Conference ID: |
8293887 |
A live and archived webcast of the conference call will be available at https://edge.media-server.com/m6/p/rrg4jnap.
About CIH
CIH operates the largest real estate information and analytics service platform in China.* Its services span across database, analytics, promotions and listing services for China's real estate markets. CIH serves a substantial base of real estate participants in China, including real estate developers, brokers and agents, property management companies, financial institutions and individual professionals, with an authoritative, comprehensive and seasonable collection of real estate data, complemented by a variety of powerful analytical and marketing tools. For more information about CIH, please visit www.chinaindexholdings.com.
Safe Harbor Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995.
These forward-looking statements can be identified by terminology such as "will," "expects," "is expected to," "anticipates," "aim," "future," "intends," "plans," "believes," "are likely to," "estimates," "may," "should" and similar expressions, and include, without limitation, statements regarding CIH's future financial performance, revenue guidance, growth and growth rates, market position and continued business transformation. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond CIH's control, which may cause its actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in CIH's filings with the U.S. Securities and Exchange Commission. CIH does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.
For investor and media inquiries, please contact:
Ms. Lili Chen
Financial Controller
Phone: +86-10-5631 9106
Email: chenlili@fang.com
* In terms of geographical coverage and volume of data points as of December 31, 2018, according to an industry report prepared by Frost & Sullivan in 2019 |
**The financial results have been prepared on a stand-alone basis and are derived from the consolidated financial results and underlying accounting records of Fang Holdings Limited ("Fang"), as the financial results of CIH had been historically included within the consolidated financial results of Fang prior to its separation from Fang, which was completed on June 11, 2019 |
REAL ESTATE INFORMATION, ANALYTICS AND MARKETPLACE SERVICES BUSINESS |
|||||
OF FANG HOLDINGS LIMITED（CIH） |
|||||
UNAUDITED CONDENSED COMBINED BALANCE SHEETS |
|||||
(Amounts in thousands of Renminbi ("RMB")) |
|||||
As of March 31, |
As of December 31, |
||||
2019 |
2018 |
||||
ASSETS |
|||||
Current assets: |
|||||
Cash and cash equivalents |
49,135 |
164,202 |
|||
Accounts receivable |
15,640 |
15,534 |
|||
Prepaid expenses and other current assets |
646 |
693 |
|||
Prepayments to related parties |
- |
1,970 |
|||
Total current assets |
65,421 |
182,399 |
|||
Non-current assets: |
|||||
Property and equipment, net |
3,651 |
3,932 |
|||
Right of use assets, net |
50,677 |
- |
|||
Total non-current assets |
54,328 |
3,932 |
|||
Total assets |
119,749 |
186,331 |
|||
LIABILITIES AND DEFICIT |
|||||
Current liabilities: |
|||||
Accounts payable |
5,227 |
5,184 |
|||
Amounts due to related parties |
- |
680 |
|||
Deferred revenue |
155,755 |
143,254 |
|||
Income taxes payable |
14,689 |
14,480 |
|||
Accrued expenses and other liabilities |
80,233 |
79,532 |
|||
Total current liabilities |
255,904 |
243,130 |
|||
Non-current liabilities: |
|||||
Long-term lease liability |
45,983 |
- |
|||
Other non-current liabilities |
18,202 |
15,496 |
|||
Total non-current liabilities |
64,185 |
15,496 |
|||
Total liabilities |
320,089 |
258,626 |
|||
Commitments and contingencies |
- |
- |
|||
Deficit: |
|||||
Parent Company deficit |
(200,543) |
(72,522) |
|||
Accumulated other comprehensive income |
203 |
227 |
|||
Total deficit |
(200,340) |
(72,295) |
|||
Total liabilities and deficit |
119,749 |
186,331 |
|||
REAL ESTATE INFORMATION, ANALYTICS AND MARKETPLACE SERVICES BUSINESS |
|||||
OF FANG HOLDINGS LIMITED（CIH） |
|||||
UNAUDITED CONDENSED COMBINED STATEMENTS OF COMPREHENSIVE INCOME |
|||||
(Amounts in thousands of RMB) |
|||||
For the Three Months Ended March 31 |
|||||
2019 |
2018 |
||||
Revenues |
119,145 |
88,157 |
|||
Cost of revenues |
(22,796) |
(22,484) |
|||
Gross profit |
96,349 |
65,673 |
|||
Operating expenses: |
|||||
Selling and marketing expenses |
(21,306) |
(15,736) |
|||
General and administrative expenses |
(6,178) |
(5,471) |
|||
Research and development expenses |
(5,531) |
(3,869) |
|||
Operating income |
63,334 |
40,597 |
|||
Interest income |
66 |
254 |
|||
Gains on sale of available-for-sale investments |
- |
1,958 |
|||
Income before income taxes |
63,400 |
42,809 |
|||
Income tax expenses |
(10,173) |
(6,581) |
|||
Net income |
53,227 |
36,228 |
|||
Other comprehensive income (loss) |
|||||
Foreign currency translation adjustments, net of nil income |
(24) |
(15) |
|||
taxes |
|||||
Unrealized holding gains on available-for-sale securities, |
- |
1,664 |
|||
net of nil and RMB294 income taxes for the three months |
|||||
ended March 31, 2019 and 2018 |
|||||
Less: Reclassification adjustment for gains on available- |
- |
(1,664) |
|||
for-sale securities realized in net income, net of nil and |
|||||
RMB294 income taxes for the three months ended March |
|||||
31, 2019 and 2018 |
|||||
Total comprehensive income |
53,203 |
36,213 |
|||
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