0001104659-15-020852.txt : 20150319 0001104659-15-020852.hdr.sgml : 20150319 20150319060119 ACCESSION NUMBER: 0001104659-15-020852 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20150331 FILED AS OF DATE: 20150319 DATE AS OF CHANGE: 20150319 FILER: COMPANY DATA: COMPANY CONFORMED NAME: E-HOUSE (CHINA) HOLDINGS LTD CENTRAL INDEX KEY: 0001405658 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE AGENTS & MANAGERS (FOR OTHERS) [6531] IRS NUMBER: 000000000 STATE OF INCORPORATION: E9 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-33616 FILM NUMBER: 15711543 BUSINESS ADDRESS: STREET 1: QIUSHI BUILDING, 11/F STREET 2: NO. 383 GUANGYAN ROAD, ZHABEI DISTRICT CITY: SHANGHAI STATE: F4 ZIP: 200072 BUSINESS PHONE: (86-21) 5298 0808 MAIL ADDRESS: STREET 1: QIUSHI BUILDING, 11/F STREET 2: NO. 383 GUANGYAN ROAD, ZHABEI DISTRICT CITY: SHANGHAI STATE: F4 ZIP: 200072 6-K 1 a15-7113_16k.htm 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of March 2015

 


 

Commission File Number: 001-33616

 


 

E-HOUSE (CHINA) HOLDINGS LIMITED

 

Qiushi Building, 11/F

No.383 Guangyan Road, Zhabei District

Shanghai 200072

People’s Republic of China

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F     x                  Form 40-F     o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

 

 

 



 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

E-House (China) Holdings Limited

 

 

 

 

 

 

 

 

 

 

 

 

By

:

/s/ Bin Laurence

 

 

Name:

:

Bin Laurence

 

 

Title:

:

Chief Financial Officer

 

 

Date: March 19, 2015

 

2



 

Exhibit Index

 

Exhibit 99.1 — Press release

 

3


EX-99.1 2 a15-7113_1ex99d1.htm EX-99.1

Exhibit 99.1

 

E-House Reports Fourth Quarter and Full Year 2014 Results and Declares Cash Dividend

 

SHANGHAI, China, March 18, 2015 — E-House (China) Holdings Limited (“E-House” or the “Company”) (NYSE: EJ), a leading real estate services company in China, today announced its unaudited financial results for the fiscal quarter and full year ended December 31, 2014.

 

Fourth Quarter 2014 Highlights

 

·                  Total revenues increased by 22% year-on-year to $312.3 million

·                  Revenues from real estate online services increased by 36% year-on-year to $171.8 million, including $124.5 million in revenues from e-commerce services, which grew by 61% year-on-year

·                  Revenues from real estate information and consulting services increased by 30% year-on-year to $31.7 million

·                  Revenues from primary real estate agency services increased by 6% year-on-year to $95.0 million

·                  Non-GAAP1 income from operations was $39.7 million; excluding spending of $11.7 million in new business units (community value-added services and real estate financial services) launched in 2014, non-GAAP income from operations was $51.5 million

·                  Non-GAAP net income attributable to E-House shareholders was $25.9 million, or $0.14 per diluted American depositary share (“ADS”)

 

Full Year 2014 Financial Highlights

 

·                  Total revenues increased by 24% year-on-year to $904.5 million

·                  Revenues from real estate online services increased by 48% year-on-year to $495.9 million, including $326.7 million in revenues from e-commerce services, which grew by 92% year-on-year

·                  Revenues from real estate information and consulting services increased by 8% year-on-year to $82.7 million

·                  Revenues from primary real estate agency services increased by 2% year-on-year to $273.9 million

·                  Non-GAAP income from operations was $99.1 million; excluding spending of $19.9 million in new business units (community value-added services and real estate financial services) launched in 2014, non-GAAP income from operations was $119.0 million

·                  Non-GAAP net income attributable to E-House shareholders was $70.9 million, or $0.46 per diluted ADS

 

Xin Zhou, E-House’s co-chairman and CEO, said, “We achieved strong revenue growth in 2014 despite overall weakness in China’s real estate market. This was driven primarily by continued high growth of our online services unit Leju, which became a stand-alone public company in April 2014. In addition, our real estate information and consulting services and primary real estate agency services continued to grow as well in 2014, due to solid execution by our team.”

 

Mr. Zhou continued, “While our existing business units continued to deliver solid growth, we launched two new business units in the second half of 2014 to broaden our service scope from serving mainly home buyers to home owners as well, and to help position our company for continued growth well into the future. The two new business units, community value-added services and real estate financial services, have seen very encouraging early results within the first several months of their operations and are reflective of the types of innovative products and services we aim to bring to our customers. Our real estate financial services peer-to-peer platform ‘Fang Jin Suo’ has introduced a variety of real estate-related financial products since its launch and has attracted over 14,000 individuals, resulting in over $47 million of transaction flows through the platform. Our mobile community services app ‘Shi Hui’ attracts significant mobile users by offering free products and services, mostly supplied by retailers and service providers, and has already grown its user base to more than 3.3 million, with approximately 390,000 daily active users. Retailers and service providers have found Shi Hui more effective in brand promotion than regular mobile ads due to active user engagement and participation. In addition, a portion of Shi Hui users are directed to the official websites of these retailers and service providers for additional opportunities to win free awards and discounts, driving increased online traffic to these websites. Due to the unique mobile marketing solutions Shi Hui provides, retailers and service providers have increased their activities on Shi Hui by providing nearly RMB4 billion (approximately US$650 million) worth of free offers and discounts. In addition, Shi Hui has also been used as a community social network app as it groups its users by their residential compounds, office buildings or schools. Because of Shi Hui’s initial success, we expanded its operations from Shanghai and Beijing to a total of 10 cities as of the end of 2014 and expect to continue expanding into at least 50 cities in 2015. We believe both Shi Hui and Fang Jin Suo complement our existing services and will add new potential growth drivers to the company. Therefore, we plan to invest $200 million to $300 million in these new businesses during the next two years.”

 


1 E-House uses in this press release the following non-GAAP financial measures: (1) income (loss) from operations, (2) net income (loss), (3) net income (loss) attributable to E-House shareholders, (4) net income (loss) attributable to E-House shareholders per basic ADS, and (5) net income (loss) attributable to E-House shareholders per diluted ADS, each of which excludes share-based compensation expense and amortization of intangible assets resulting from business acquisitions. See “About Non-GAAP Financial Measures” and “Unaudited Reconciliation of GAAP and Non-GAAP Results” below for more information about the non-GAAP financial measures included in this press release.

 

1



 

Bin Laurence, E-House’s CFO, said, “We are very pleased that E-House achieved top-line growth in all of our existing business segments in 2014, despite a difficult real estate market with overall real estate transaction volume reductions. Our margins have been impacted by our spending on new business initiatives; yet, excluding the new business-related expenditures, we achieved profitability in both Leju and E-House’s remaining businesses, as well as solid growth in operating income. Based on the initial results that we have seen, we believe the investments in our new businesses will create additional value for our shareholders. Furthermore, we continued to pay attractive dividends in the form of a special dividend which included both cash and shares in Leju in January 2015, and a cash dividend that we are announcing today.”

 

Fourth Quarter 2014 Results

 

Total revenues were $312.3 million, an increase of 22% from $255.4 million for the same quarter of 2013, primarily driven by the growth of revenues from real estate online services.

 

Revenues from real estate online services were $171.8 million, an increase of 36% from $126.3 million for the same quarter of 2013, mainly contributed by the growth of revenues from e-commerce services. Revenues from e-commerce services were $124.5 million, an increase of 61% from $77.5 million for the same quarter of 2013, primarily due to a 28% increase in discount coupons redeemed (see “Selected Operating Data” below for more details on the discount coupons sold and redeemed). Revenues from online advertising services were $43.8 million, a slight increase from $43.2 million for the same quarter of 2013. Revenues from listing services were $3.5 million, compared to $5.6 million for the same quarter of 2013, primarily due to the slowdown in secondary home sales.

 

Revenues from real estate brokerage services were $97.8 million, an increase of 6% from $92.1 million for the same quarter of 2013. Real estate brokerage services include primary real estate agency services and secondary real estate brokerage services. Revenues from primary real estate agency services were $95.0 million, an increase of 6% from $89.2 million for the same quarter of 2013. The increase was caused by the increase of average commission rate, despite the slight decreases in the total gross floor area (“GFA”) of new properties sold and the total transaction value of new properties sold compared to the same quarter of 2013. (See “Selected Operating Data” below for more details on the total GFA and transaction value of new properties sold.) Revenues from secondary real estate brokerage services were $2.8 million, which was relatively flat compared to $2.9 million for the same quarter of 2013.

 

Revenues from real estate information and consulting services were $31.7 million, an increase of 30% compared to $24.4 million for the same quarter of 2013, due to increased revenues in both information services and consulting services.

 

Revenues from other services were $11.0 million, a decrease of 12% from $12.6 million for the same quarter of 2013. Other services include offline real estate advertising services, promotional events services, real estate fund management services, community value-added services and real estate financial services. No material revenues were generated by the newly launched community value-added services and real estate financial services. The revenue decrease from other services in the fourth quarter was primarily due to the decrease in revenues from offline promotional events services.

 

2



 

Cost of revenues was $96.5 million, an increase of 16% from $83.2 million for the same quarter of 2013, primarily due to increased staff costs from primary real estate agency services, and increased consulting project costs from real estate information and consulting services, in line with the revenue increases.

 

Selling, general and administrative (“SG&A”) expenses were $186.0 million, an increase of 36% from $136.3 million for the same quarter of 2013, primarily due to higher SG&A expenses for real estate online services, as well as $8.0 million in expenses related to community value-added services and $3.7 million in expenses related to real estate financial services, both of which commenced in the third quarter of 2014.

 

Income from operations was $30.5 million, a decrease of 20% from $38.0 million for the same quarter of 2013. Non-GAAP income from operations was $39.7 million, a decrease of 17% from $48.1 million for the same quarter of 2013. Excluding the expenses related to newly-launched community value-added services and real estate financial services, non-GAAP income from operations was $51.5 million.

 

Net income was $21.6 million, a decrease of 28% from $29.9 million for the same quarter of 2013. Non-GAAP net income was $31.2 million, a decrease of 14% from $36.5 million for the same quarter of 2013.

 

Net income attributable to E-House shareholders was $18.6 million, or $0.12 per diluted ADS, a decrease of 41% from $31.8 million, or $0.22 per diluted ADS, for the same quarter of 2013. Non-GAAP net income attributable to E-House shareholders was $25.9 million, or $0.14 per diluted ADS, a decrease of 32% from $38.3 million, or $0.26 per diluted ADS, for the same quarter of 2013.

 

Full Year 2014 Results

 

Total revenues were $904.5 million, an increase of 24% from $731.1 million for 2013, primarily driven by the growth of revenues from real estate online services and real estate information and consulting services.

 

Revenues from real estate online services were $495.9 million, an increase of 48% from $335.4 million for 2013, contributed by the growth of revenues from e-commerce and online advertising services. Revenues from e-commerce services were $326.7 million, an increase of 92% from $170.2 million for 2013, primarily due to a 61% increase in discount coupons redeemed (see “Selected Operating Data” below for more details on the discount coupons sold and redeemed). Revenues from online advertising services were $154.9 million, an increase of 7% from $145.4 million for 2013, due to growth in both the Company’s new home and home furnishing channels. Revenues from listing services were $14.3 million, compared to $19.8 million for 2013, primarily due to the slowdown in secondary home sales.

 

Revenues from real estate brokerage services were $283.4 million, a slight increase from $280.8 million for 2013. Revenues from primary real estate agency services were $273.9 million, an increase of 2% from $269.6 million for 2013. Revenues from secondary real estate brokerage services were $9.5 million, a decrease of 15% from $11.2 million for 2013, due to the Company’s decision to close unprofitable physical stores.

 

Revenues from real estate information and consulting services were $82.7 million, an increase of 8% from $76.7 million for 2013, mainly due to an increase in revenues from real estate information services.

 

3



 

Revenues from other services were $42.5 million, an increase of 11% from $38.2 million for 2013, primarily attributable to carried interest recognized from real estate fund management services of $5.4 million during the third quarter of 2014.

 

Cost of revenues was $306.1 million, an increase of 12% from $274.0 million for 2013, due to increased staff costs from primary real estate agency services, and increased consulting project costs from real estate information and consulting services, partially offset by the decrease of the fees paid to third parties for services in connection with the Company’s online listing business, and the decrease of the amortization expenses of intangible assets.

 

SG&A expenses were $545.5 million, an increase of 36% from $400.9 million for 2013, primarily due to higher SG&A expenses for real estate online services, as well as $15.8 million in expenses related to community value-added services and $3.9 million in expenses related to real estate financial services, both of which commenced in the third quarter of 2014.

 

Income from operations was $61.7 million, a slight increase from $61.0 million for 2013. Non-GAAP income from operations was $99.1 million, a decrease of 3% from $102.5 million for 2013. Excluding the expenses related to newly-launched community value-added services and real estate financial services, non-GAAP income from operations was $119.0 million.

 

Net income was $52.3 million, an increase of 2% from $51.1 million for 2013. Non-GAAP net income was $88.0 million, an increase of 4% from $84.9 million for 2013.

 

Net income attributable to E-House shareholders was $40.0 million, or $0.26 per diluted ADS, a decrease of 23% from $52.0 million, or $0.38 per diluted ADS, for 2013. Non-GAAP net income attributable to E-House shareholders was $70.9 million, or $0.46 per diluted ADS, a decrease of 17% from $85.4 million, or $0.63 per diluted ADS, for 2013.

 

Cash Flow

 

As of December 31, 2014, the Company’s cash and cash equivalents balance was $630.6 million.

 

Fourth quarter 2014 net cash provided by operating activities was $42.2 million, mainly attributable to non-GAAP net income of $31.2 million, as well as increases in accrued payroll and welfare of $39.9 million, an increase in income tax payables and other tax payables of $26.4 million and a decrease in customer deposits of $22.5 million, offset by an increase in accounts receivable of $39.2 million and an increase in restricted cash of $38.6 million. Net cash used in investing activities was $17.3 million, mainly comprised of $15.2 million in capital expenditures, and $5.9 million prepayment for business acquisition, partially offset by the collection of short-term investment of $1.3 million and proceeds from the disposal of property and equipment of $2.3 million. Net cash provided by financing activities was $18.1 million, mainly comprised of $36.0 million cash received from short-term loan, partially offset by $15.5 million in dividends paid to shareholders and $2.2 million paid for the acquisition of the remaining non-controlling interests in the Company’s online business.

 

Declaration of Cash Dividend

 

E-House announced today that its board of directors had authorized and approved the Company’s payment of a cash dividend of $0.15 per ordinary share ($0.15 per ADS). The cash dividend will be payable on or about May 15, 2015 to shareholders of record as of the close of business on April 10, 2015. Dividends to be paid to the Company’s ADS holders through the depositary bank will be subject to the terms of the deposit agreement, including the fees and expenses payable thereunder.

 

Business Outlook

 

The Company estimates that its fiscal 2015 total revenues will be approximately $1.05 billion to $1.10 billion, which would represent an increase of approximately 16% to 22% from $904.5 million in 2014. This forecast reflects the Company’s current and preliminary view, which is subject to change.

 

4



 

Conference Call Information

 

E-House’s management will host an earnings conference call on March 18, 2015 at 8:15 a.m. U.S. Eastern Time (8:15 p.m. Beijing/Hong Kong time).

 

Dial-in details for the earnings conference call are as follows:

 

U.S./International:  +1-845-675-0437

Hong Kong:            +852-3018-6771

Mainland China:     +86-10-800-819-0121

 

Please dial in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is “E-House earnings call.”

 

A replay of the conference call may be accessed by phone at the following number until March 25, 2015:

 

International:       +1-646-254-3697

Passcode:              1002518

 

Additionally, a live and archived webcast will be available at http://ir.ehousechina.com.

 

About E-House

 

E-House (China) Holdings Limited (“E-House”) (NYSE: EJ) is China’s leading real estate services company with a nationwide network covering more than 250 cities. E-House offers a wide range of services to the real estate industry, including real estate online services through our 70%-owned subsidiary, Leju Holdings Limited (NYSE: LEJU), primary sales agency, secondary brokerage, information and consulting, offline advertising and promotion, real estate investment management and financial services, and community value-added services. E-House 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 and “China Enterprises with the Best Potential” from Forbes. 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,” “confident,” “is currently reviewing,” “it is possible,” “subject to” and similar statements. Among other things, the Business Outlook section and 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 filed or furnished with the U.S. Securities and Exchange Commission, including 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, including statements about E-House’s beliefs and expectations, are forward-looking statements and are subject to change. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained, either expressly or impliedly, in any of the forward-looking statements in this press release. Potential risks and uncertainties include, but are not limited to, a severe or prolonged downturn in the global economy, E-House’s susceptibility to fluctuations in the real estate market of China, government measures aimed at China’s real estate industry, failure of the real estate services industry in China to develop or mature as quickly as expected, diminution of the value of E-House’s brand or image, E-House’s inability to successfully execute its strategy of expanding into new geographical markets in China, E-House’s failure to manage its growth effectively and efficiently, E-House’s failure to successfully execute the business plans for its strategic alliances and other new business initiatives, E-House’s loss of its competitive advantage if it fails to maintain and improve its proprietary CRIC system or to prevent disruptions or failure in the system’s performance, E-House’s failure to compete successfully, fluctuations in E-House’s results of operations and cash flows, E-House’s reliance on a concentrated number of real estate developers, natural disasters or outbreaks of health epidemics and other risks outlined in E-House’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of this press release, and E-House does not undertake any obligation to update any such information, except as required under applicable law.

 

5



 

About Non-GAAP Financial Measures

 

To supplement E-House’s consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles (“GAAP”), E-House uses in this press release the following non-GAAP financial measures: (1) income (loss) from operations, (2) net income (loss), (3) net income (loss) attributable to E-House shareholders, (4) net income (loss) attributable to E-House shareholders per basic ADS, and (5) net income (loss) attributable to E-House shareholders per diluted ADS, each of which excludes share-based compensation expense and amortization of intangible assets resulting from business acquisitions. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Unaudited Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release.

 

E-House believes that these non-GAAP financial measures provide meaningful supplemental information to investors regarding its operating performance by excluding share-based compensation expense and amortization of intangible assets resulting from business acquisitions, , which may not be indicative of E-House’s operating performance. These non-GAAP financial measures also facilitate management’s internal comparisons to E-House’s historical performance and assist its financial and operational decision making. A limitation of using these non-GAAP financial measures is that share-based compensation expense and amortization of intangible assets resulting from business acquisitions that may continue to exist in E-House’s business for the foreseeable future. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliation between non-GAAP financial measures and their most comparable GAAP financial measures.

 

For investor and media inquiries please contact:

 

Ms. Michelle Yuan

Director of Investor Relations

E-House (China) Holdings Limited

Phone: +86 (21) 6133-0754

E-mail: michelleyuan@ehousechina.com

 

Mr. Derek Mitchell

Ogilvy Financial

In the U.S.: +1 (646) 867-1888

In China: +86 (10) 8520-6139

E-mail: ej@ogilvy.com

 

6



 

E-HOUSE (CHINA) HOLDINGS LIMITED

UNAUDITED CONSOLIDATED BALANCE SHEET

(In thousands of U.S. dollars)

 

 

 

December 31,

 

December 31,

 

 

 

2013

 

2014

 

ASSETS

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

 

413,319

 

630,617

 

Restricted cash 

 

2,310

 

40,402

 

Customer deposits, net

 

67,602

 

92,797

 

Accounts receivable, net

 

357,442

 

415,150

 

Advance payment for properties, current

 

60,076

 

51,983

 

Properties held for sale

 

15,305

 

34,842

 

Short-term investment

 

1,279

 

 

Deferred tax assets, net

 

66,332

 

64,805

 

Prepaid expenses and other current assets

 

44,235

 

39,339

 

Amounts due from related parties

 

1,263

 

6,094

 

Total current assets

 

1,029,163

 

1,376,029

 

Property and equipment, net

 

50,077

 

49,109

 

Intangible assets, net

 

141,232

 

120,381

 

Investment in affiliates

 

39,052

 

51,681

 

Goodwill

 

51,600

 

51,540

 

Customer deposits, non-current, net

 

652

 

797

 

Investment in preferred shares of a private entity

 

 

39,485

 

Other non-current assets

 

43,744

 

87,902

 

Total assets

 

1,355,520

 

1,776,924

 

LIABILITIES AND EQUITY

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable

 

11,265

 

8,261

 

Accrued payroll and welfare expenses

 

102,632

 

116,577

 

Income tax payable

 

98,686

 

117,594

 

Other tax payable

 

40,001

 

49,390

 

Amounts due to related parties

 

5,536

 

7,356

 

Advance from property buyers

 

2,453

 

2,261

 

Short-term borrowings

 

 

35,954

 

Dividend payables

 

 

12,902

 

Advance from customers and deferred revenue

 

24,617

 

19,013

 

Liability for exclusive rights, current

 

8,968

 

 

Other current liabilities

 

62,467

 

85,837

 

Total current liabilities

 

356,625

 

455,145

 

Deferred tax liabilities

 

29,901

 

28,203

 

Convertible senior notes

 

131,651

 

132,752

 

Other non-current liabilities

 

1,472

 

658

 

Total liabilities

 

519,649

 

616,758

 

Equity

 

 

 

 

 

Ordinary shares ($0.001 par value): 1,000,000,000 and 1,000,000,000 shares authorized, 137,816,482 and 142,123,368 shares issued and outstanding, as of December 31, 2013 and December 31, 2014, respectively

 

138

 

142

 

Additional paid-in capital

 

859,468

 

991,646

 

Subscription receivables

 

(2,148

)

(196

)

Accumulated deficit

 

(107,705

)

(67,703

)

Accumulated other comprehensive income

 

72,185

 

83,901

 

Total E-House equity

 

821,938

 

1,007,790

 

Non-controlling interests

 

13,933

 

152,376

 

Total equity

 

835,871

 

1,160,166

 

TOTAL LIABILITIES AND EQUITY

 

1,355,520

 

1,776,924

 

 

7



 

E-HOUSE (CHINA) HOLDINGS LIMITED

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands of U.S. dollars, except share data and per share data)

 

 

 

Three months ended

 

Year ended

 

 

 

December 31,

 

December 31,

 

 

 

2013

 

2014

 

2013

 

2014

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

255,376

 

312,325

 

731,079

 

904,499

 

Cost of revenues

 

(83,243

)

(96,515

)

(274,036

)

(306,133

)

Selling, general and administrative expenses

 

(136,340

)

(185,975

)

(400,947

)

(545,492

)

Other operating income

 

2,235

 

653

 

4,918

 

8,787

 

Income from operations

 

38,028

 

30,488

 

61,014

 

61,661

 

 

 

 

 

 

 

 

 

 

 

Interest expenses

 

(193

)

(1,334

)

(193

)

(5,325

)

Interest income

 

594

 

1,030

 

2,180

 

3,210

 

Other income (expenses), net

 

(189

)

678

 

(1,051

)

3,858

 

Income before taxes and equity in affiliates

 

38,240

 

30,862

 

61,950

 

63,404

 

Income tax expense

 

(7,691

)

(9,522

)

(13,678

)

(14,901

)

Income before equity in affiliates

 

30,549

 

21,340

 

48,272

 

48,503

 

Income (loss) from equity in affiliates

 

(668

)

282

 

2,814

 

3,835

 

Net income

 

29,881

 

21,622

 

51,086

 

52,338

 

 

 

 

 

 

 

 

 

 

 

Less: net income (loss) attributable to non-controlling interests

 

(1,871

)

3,026

 

(871

)

12,336

 

Net income attributable to E-House shareholders

 

31,752

 

18,596

 

51,957

 

40,002

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

Basic

 

0.23

 

0.13

 

0.40

 

0.29

 

Diluted

 

0.22

 

0.12

 

0.38

 

0.26

 

Shares used in computation:

 

 

 

 

 

 

 

 

 

Basic

 

135,829,362

 

141,427,003

 

130,163,165

 

139,211,442

 

Diluted

 

146,664,066

 

146,710,603

 

135,779,997

 

146,687,835

 

 

Note 1

The conversion of Renminbi (“RMB”) amounts into USD amounts is based on the rate of USD1 = RMB6.1190 on December 31, 2014 and USD1 = RMB6.1380 for the three months ended December 31, 2014

 

8



 

E-HOUSE (CHINA) HOLDINGS LIMITED

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(In thousands of U.S. dollars)

 

 

 

Three months ended

 

Year ended

 

 

 

December 31,

 

December 31,

 

 

 

2013

 

2014

 

2013

 

2014

 

 

 

 

 

 

 

 

 

 

 

Net income

 

29,881

 

21,622

 

51,086

 

52,338

 

Other comprehensive income, net of tax of nil:

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

5,042

 

3,321

 

17,533

 

(2,120

)

Unrealized holding gains for investment in preferred shares of a private entity

 

 

9,136

 

 

13,765

 

Comprehensive income

 

34,923

 

34,079

 

68,619

 

63,983

 

 

 

 

 

 

 

 

 

 

 

Less: Comprehensive income (loss) attributable to non-controlling interests

 

(1,778

)

3,290

 

(404

)

12,270

 

Comprehensive income attributable to E-House shareholders

 

36,701

 

30,789

 

69,023

 

51,713

 

 

9



 

E-HOUSE (CHINA) HOLDINGS LIMITED

Unaudited Reconciliation of GAAP and Non-GAAP Results

(In thousands of U.S. dollars, except share data and per ADS data)

 

 

 

Three months ended

 

Year ended

 

 

 

December 31,

 

December 31,

 

 

 

2013

 

2014

 

2013

 

2014

 

 

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

GAAP income from operations

 

38,028

 

30,488

 

61,014

 

61,661

 

Share-based compensation expense

 

4,383

 

5,807

 

18,903

 

22,176

 

Amortization of intangible assets resulting from business acquisitions

 

5,660

 

3,450

 

22,606

 

15,269

 

Non-GAAP income from operations

 

48,071

 

39,745

 

102,523

 

99,106

 

 

 

 

 

 

 

 

 

 

 

GAAP net income

 

29,881

 

21,622

 

51,086

 

52,338

 

Share-based compensation expense (net of tax)

 

4,383

 

5,807

 

18,903

 

22,176

 

Amortization of intangible assets resulting from business acquisitions (net of tax)

 

2,215

 

3,775

 

14,924

 

13,482

 

Non-GAAP net income

 

36,479

 

31,204

 

84,913

 

87,996

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to E-House shareholders

 

31,752

 

18,596

 

51,957

 

40,002

 

Share-based compensation expense (net of tax and non-controlling interests)

 

4,383

 

4,493

 

18,903

 

19,860

 

Amortization of intangible assets resulting from business acquisitions (net of tax and non-controlling interests)

 

2,117

 

2,822

 

14,562

 

11,085

 

Non-GAAP net income attributable to E-House shareholders

 

38,252

 

25,911

 

85,422

 

70,947

 

 

 

 

 

 

 

 

 

 

 

GAAP earnings per ADS — basic

 

0.23

 

0.13

 

0.40

 

0.29

 

 

 

 

 

 

 

 

 

 

 

GAAP earnings per ADS — diluted

 

0.22

 

0.12

 

0.38

 

0.26

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP earnings per ADS — basic

 

0.28

 

0.18

 

0.66

 

0.51

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP earnings per ADS — diluted

 

0.26

 

0.14

 

0.63

 

0.46

 

 

 

 

 

 

 

 

 

 

 

Shares used in calculating basic GAAP / non-GAAP net income attributable to shareholders per ADS

 

135,829,362

 

141,427,003

 

130,163,165

 

139,211,442

 

 

 

 

 

 

 

 

 

 

 

Shares used in calculating diluted GAAP net income attributable to shareholders per ADS

 

146,664,066

 

146,710,603

 

135,779,997

 

146,687,835

 

Shares used in calculating diluted non-GAAP net income attributable to shareholders per ADS

 

146,664,066

 

155,669,729

 

135,779,997

 

146,687,835

 

 

10



 

E-HOUSE (CHINA) HOLDINGS LIMITED

SELECTED OPERATING DATA

 

 

 

Three months ended

 

Year ended

 

 

 

December 31,

 

December 31,

 

 

 

2013

 

2014

 

2013

 

2014

 

 

 

 

 

 

 

 

 

 

 

Primary real estate agency services

 

 

 

 

 

 

 

 

 

Total Gross Floor Area (“GFA”) of new properties sold (thousands of square meters)

 

7,081

 

6,928

 

21,504

 

21,752

 

Total value of new properties sold (millions of RMB)

 

64,312

 

63,795

 

196,509

 

195,410

 

Total value of new properties sold (millions of $)

 

10,480

 

10,503

 

31,747

 

31,993

 

 

 

 

 

 

 

 

 

 

 

E-commerce services

 

 

 

 

 

 

 

 

 

Number of discount coupons issued to prospective purchasers (number of transactions)

 

92,527

 

99,688

 

231,008

 

323,495

 

Number of discount coupons redeemed (number of transactions)

 

59,684

 

76,150

 

136,106

 

219,557

 

 

11