China Index Holdings Announces Fourth Quarter and Fiscal Year 2019 Unaudited Financial Results

Fengtai District, CHINA


BEIJING, March 09, 2020 (GLOBE NEWSWIRE) -- 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 fourth quarter and fiscal year ended December 31, 2019.

Fourth Quarter 2019 Highlights

  • Total revenues were RMB168.3 million, an increase of 39.1% from RMB121.0 million in the corresponding period of 2018.
  • Operating income was RMB86.8 million, an increase of 68.5% from RMB51.5 million in the corresponding period of 2018.
  • Net income was RMB74.7 million, an increase of 69.4% from RMB44.1 million in the corresponding period of 2018.

Fiscal Year 2019 Highlights

  • Total revenues were RMB579.7 million, an increase of 37.7% from RMB421.0 million in 2018.
  • Operating income was RMB287.6 million, an increase of 52.5% from RMB188.6 million in 2018.
  • Net income was RMB245.5 million, an increase of 48.4% from RMB165.4 million in 2018.

“Our fourth quarter results reflect CIH’s strong and healthy growth trajectory,” commented Yu Huang, CEO of CIH. “In the fourth quarter, our year-over-year growth of revenue and net income reached 39.1% and 69.4% respectively, solidifying our position as a leader in digitizing China’s property service industry. I look forward to continuing this trend in 2020 with innovative technologies and value creation for our customers as we focus on empowering China's commercial property market.”

Fourth Quarter 2019 Financial Results

Revenues

CIH reported total revenues of RMB168.3 million in the fourth quarter of 2019, an increase of 39.1% from RMB121.0 million in the corresponding period of 2018.

  • Revenues from information and analytics services (SaaS) were RMB76.8 million in the fourth quarter of 2019, an increase of 34.3% from RMB57.2 million in the corresponding period of 2018, primarily due to an increase in number of customers.
  • Revenues from marketplace services were RMB91.5 million in the fourth quarter of 2019, an increase of 43.4% from RMB63.8 million in the corresponding period of 2018, primarily due to an increase in number of customers.

Cost of Revenue

Cost of revenue was RMB33.9 million in the fourth quarter of 2019, an increase of 44.9% from RMB23.4 million in the corresponding period of 2018, primarily due to an increase in personnel costs to support our business expansion.

Operating Expenses

Operating Expenses were RMB47.6 million in the fourth quarter of 2019, an increase of 3.3% from RMB46.1 million in the corresponding period of 2018.

  • Selling and marketing expenses were RMB26.4 million in the fourth quarter of 2019, an increase of 18.9% from RMB22.2 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 RMB21.2 million in the fourth quarter of 2019, a decrease of 11.3% from RMB23.9 million in the corresponding period of 2018, primarily due to the one-off listing fees of RMB9.2 million in the fourth quarter of 2018.

Operating Income

Operating Income was RMB86.8 million in the fourth quarter of 2019, an increase of 68.5% from RMB51.5 million in the corresponding period of 2018.

Income Tax Expenses

Income tax expenses were RMB15.2 million in the fourth quarter of 2019, an increase of 100.0% from RMB7.6 million in the corresponding period of 2018.

Net Income

Net income was RMB74.7 million in the fourth quarter of 2019, an increase of 69.4% from RMB44.1 million in the corresponding period of 2018.

Fiscal Year 2019 Financial Results

Revenues

CIH reported total revenues of RMB579.7 million for 2019, an increase of 37.7% from RMB421.0 million in 2018.

  • Revenues from information and analytics services (SaaS) were RMB268.6 million for 2019, an increase of 30.3% from RMB206.2 million in 2018, primarily due to an increase in number of customers.
  • Revenues from marketplace services were RMB311.1 million for 2019, an increase of 44.8% from RMB214.8 million in 2018, primarily due to an increase in number of customers.

Cost of Revenue

Cost of revenue was RMB110.5 million for 2019, an increase of 26.0% from RMB87.7 million in 2018, primarily due to an increase in personnel costs to support our business expansion.

Operating Expenses

Operating Expenses were RMB181.6 million for 2019, an increase of 25.5% from RMB144.7 million in 2018.

  • Selling and marketing expenses were RMB99.0 million for 2019, an increase of 27.4% from RMB77.7 million in 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 RMB82.6 million for 2019, an increase of 23.3% from RMB67.0 million in 2018, primarily due to an increase in personnel costs to support our business expansion.

Operating Income

Operating Income was RMB287.6 million for 2019, an increase of 52.5% from RMB188.6 million in 2018.

Income Tax Expenses

Income tax expenses were RMB44.7 million for 2019, an increase of 49.0% from RMB30.0 million in 2018.

Net Income

Net income was RMB245.5 million for 2019, an increase of 48.4% from RMB165.4 million in 2018.

Business Outlook

Based on current operations and market conditions, management expect CIH’s total revenue for 2020 to increase approximately 20% year-over-year, which represents management’s current and preliminary view and is to subject to change.

Recent Development

Amendment to Business Cooperation Agreement with Fang Holdings

CIH and Fang Holdings Limited (NYSE: SFUN) ("Fang") decided to amend the terms of the Business Cooperation Agreement (the “Agreement”) dated May 24, 2019 in relation to CIH’s separation from Fang.

Both parties agreed to terminate the income sharing arrangement under the Agreement, where income from listing services was shared based on advertising channels, i.e., Fang’s advertisements on CIH’s commercial real estate channel entitles Fang to receive 15% of the revenues generated by such advertisements, whereas CIH’s advertisements on Fang’s residential real estate channel entitles CIH to receive 15% of the revenues generated by such advertisements. Through this amendment to the Agreement, CIH and Fang will no longer share income based on advertising channels.

Conference Call Information

CIH’s management team will host a conference call on March 9, 2020 at 8:00 AM U.S. ET (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 March 9, 2020 through 09:59 AM ET March 17, 2020. 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:5142106

A live and archived webcast of the conference call will be available at http://ir.chinaindexholdings.com.

About CIH

CIH operates the largest real estate information and analytics service platform in China.1 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 ir.chinaindexholdings.com.

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1 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.

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. Jessie Yang
Investor Relations
Email: CIH-IR@fang.com

CHINA INDEX HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED AND COMBINED BALANCE SHEETS i
(Amounts in thousands of Renminbi (“RMB”))

 As of December 31,  As of December 31, 
 2019  2018 
      
ASSETS     
Current assets:     
Cash and cash equivalents129,913  164,202 
Time deposits209,163  - 
Accounts receivable, net of allowance for doubtful accounts24,243  15,534 
Prepaid expenses and other current assets4,566  693 
Amount due from related parties4,820  1,970 
Total current assets372,705  182,399 
      
Non-current assets:     
Property and equipment, net2,873  3,932 
Right of use assets, net49,595  - 
Total non-current assets52,468  3,932 
      
Total assets425,173  186,331 
      
LIABILITIES AND SHAREHOLDERS’ DEFICIT     
Current liabilities:     
Accounts payable7,844  5,184 
Amounts due to related parties7,734  680 
Deferred revenue203,531  143,254 
Income taxes payable23,396  14,480 
Accrued expenses and other liabilities84,250  79,532 
Total current liabilities326,755  243,130   
      
Non-current liabilities:     
Long-term lease liability37,679  - 
Other non-current liabilities39,757  15,496 
Total non-current liabilities77,436  15,496 
      
Total liabilities404,191  258,626  
      
Commitments and contingencies-  - 
      
Shareholders’ equity / (deficit):     
Class A ordinary shares, par value US$0.001 per share, 1000,000,000 shares authorized for Class A and Class B in aggregate, issued shares as of December 31, 2019 and December 31, 2018: 72,475,630 and nil; outstanding shares as of December 31, 2019, and December 31, 2018: 65,762,936 and nil500  - 
Class B ordinary shares, par value US$0.001 per share, 1000,000,000 shares authorized for Class A and Class B in aggregate, issued and outstanding as of December 31, 2019 and December 31, 2018: 23,636,706 and nil163  - 
Treasury shares(46) - 
Additional paid-in capital(132,334) - 
Retained earnings152,419  - 
Parent company investment-  (72,522)
Accumulated other comprehensive income280  227 
Total shareholders’ equity / (deficit)20,982  (72,295 )
      
Total liabilities and shareholders’ equity / (deficit)425,173  186,331 


CHINA INDEX HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF COMPREHENSIVE INCOME
(Amounts in thousands of RMB)

 Three Months Ended
December 31
  Year Ended
December 31
 2019
  2018
  2019
  2018
 
            
Revenues168,291  120,997  579,650  421,024 
Cost of revenues(33,940) (23,393) (110,492) (87,733)
Gross profit134,351  97,604  469,158  333,291 
            
Operating expenses:           
Selling and marketing expenses(26,370) (22,253) (99,020) (77,731)
General and administrative expenses(21,160) (23,835) (82,615) (66,993)
            
Operating income 86,821  51,516  287,523  188,567 
Interest income1,424  13  2,914  664 
Change in fair value of warrants1,786  -  (1,152) - 
Gains on sale of available-for-sale investments-  -  -  4,842 
Government grants17  219  903  1,395 
            
Income before income taxes 90,048  51,748  290,188  195,468 
Income tax expenses(15,288) (7,663) (44,737) (30,048)
            
Net income 74,760  44,085  245,451  165,420 
            
Other comprehensive income / (loss)           
            
Foreign currency translation adjustments, net of nil income taxes81  (8) 53  49 
            
Total comprehensive income 74,841  44,077  245,504  165,469 
            
Earnings per share for Class A and Class B ordinary shares:           
Basic0.83  0.49  2.74  1.85 
Diluted0.83  0.49  2.73  1.85 
            
Weighted average number of Class A and Class B ordinary shares outstanding:           
Basic89,739,655  89,399,642  89,607,335  89,399,642 
Diluted90,368,070  89,399,642  89,925,689  89,399,642 

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i The financial results prior to the separation of CIH from Fang Holdings Limited (“Fang”) have been prepared on a stand-alone basis and are derived from the consolidated financial results and underlying accounting records of 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.


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