China Index Holdings Announces First Quarter 2019 Financial Results

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

    --  Total revenues were RMB119.1 million, an increase of 35.2% from RMB88.2
        million in the corresponding period of 2018.
    --  Operating income was RMB63.3 million, an increase of 56.0% from RMB40.6
        million in the corresponding period of 2018.
    --  Net income was RMB53.2 million, an increase of 46.9% from RMB36.2
        million in the corresponding period of 2018.

"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.

    --  Revenue from promotion services was RMB49.1 million in the first quarter
        of 2019, an increase of 30.3% from RMB37.7 million in the corresponding
        period of 2018, primarily due to an increase in the number of customers.
    --  Revenue from listing services was RMB13.2 million in the first quarter
        of 2019, an increase of 462.5% from RMB2.4 million in the corresponding
        period of 2018, primarily due to an increase in the number of customers.

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                                    As of
                                                                           31,                                             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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SOURCE China Index Holdings Limited