China Index Holdings Announces Second Quarter 2022 Unaudited Financial Results

BEIJING, Aug. 17, 2022 (GLOBE NEWSWIRE via SEAPRWire.com) — China Index Holdings Limited (NASDAQ: CIH), (“CIH” or the “Company”), a leading real estate information and analytics service platform provider in China, today announced its unaudited financial results for the second quarter ended June 30, 2022.

Second Quarter 2022 Highlights

  • Total revenues were RMB110.2 million, a decrease of 27.8% from RMB152.7 million in the corresponding period of 2021.
  • Operating income was RMB45.0 million, a decrease of 37.6% from RMB72.1 million in the corresponding period of 2021.
  • Net income was RMB21.2 million, a decrease of 68.6% from RMB67.3 million in the corresponding period of 2021.

First Half 2022 Highlights

  • Total revenues were RMB228.7 million, a decrease of 20.1% from RMB286.4 million in the corresponding period of 2021.
  • Operating income was RMB90.3 million, a decrease of 32.0% from RMB132.9 million in the corresponding period of 2021.
  • Net income was RMB63.1 million, a decrease of 49.1% from RMB123.9 million in the corresponding period of 2021.

Second Quarter 2022 Financial Results

Revenues

CIH reported total revenues of RMB110.2 million in the second quarter of 2022, a decrease of 27.8% from RMB152.7 million in the corresponding period of 2021, primarily due to the broad macro environment challenges the industry was facing.

  • Revenues from information and analytics services (SaaS) were RMB63.4 million in the second quarter of 2022, a decrease of 14.4% from RMB74.1 million in the corresponding period of 2021.
  • Revenues from marketplace services were RMB46.8 million in the second quarter of 2022, a decrease of 40.4% from RMB78.5 million in the corresponding period of 2021.

Cost of Revenues

Cost of revenues was RMB19.5 million in the second quarter of 2022, a decrease of 31.8% from RMB28.6 million in the corresponding period of 2021, primarily due to the cost-saving actions CIH has taken in response to the broad macro environment challenges.

Operating Expenses

Operating expenses were RMB45.7 million in the second quarter of 2022, a decrease of 12.1% from RMB52.0 million in the corresponding period of 2021.

  • Selling and marketing expenses were RMB29.4 million in the second quarter of 2022, a decrease of 8.9% from RMB32.2 million in the corresponding period of 2021.
  • General and administrative expenses were RMB16.3 million in the second quarter of 2022, a decrease of 17.2% from RMB19.7 million in the corresponding period of 2021.

Operating Income

Operating income was RMB45.0 million in the second quarter of 2022, a decrease of 37.6% from RMB72.1 million in the corresponding period of 2021.

Income Tax Expenses

Income tax expenses were RMB25.3 million in the second quarter of 2022, an increase of 152.4% from RMB10.0 million in the corresponding period of 2021.

Net Income

Net income was RMB21.2 million in the second quarter of 2022, a decrease of 68.6% from RMB67.3 million in the corresponding period of 2021.

First Half 2022 Financial Results

Revenues

CIH reported total revenues of RMB228.7 million in the first half of 2022, a decrease of 20.1% from RMB286.4 million in the corresponding period of 2021, primarily due to the broad macro environment challenges the industry was facing.

  • Revenues from information and analytics services (SaaS) were RMB120.1 million in the first half of 2022, a decrease of 12.9% from RMB137.9 million in the corresponding period of 2021.
  • Revenues from marketplace services were RMB108.6 million in the first half of 2022, a decrease of 26.8% from RMB148.5 million in the corresponding period of 2021.

Cost of Revenues

Cost of Revenues was RMB41.2 million in the first half of 2022, a decrease of 23.5% from RMB53.9 million in the corresponding period of 2021, primarily due to the cost-saving actions CIH has taken in response to the broad macro environment challenges.

Operating Expenses

Operating expenses were RMB97.2 million in the first half of 2022, a decrease of 2.4% from RMB99.6 million in the corresponding period of 2021.

  • Selling and marketing expenses were RMB53.9 million in the first half of 2022, a decrease of 8.2% from RMB58.8 million in the corresponding period of 2021.
  • General and administrative expenses were RMB43.3 million in the first half of 2022, an increase of 6.0% from RMB40.8 million in the corresponding period of 2021.

Operating Income

Operating income was RMB90.3 million in the first half of 2022, a decrease of 32.0% from RMB132.9 million in the corresponding period of 2021.

Income Tax Expenses

Income tax expenses were RMB32.3 million in the first half of 2022, an increase of 67.9% from RMB19.2 million in the corresponding period of 2021.

Net Income

Net income was RMB63.1 million in the first half of 2022, a decrease of 49.1% from RMB123.9 million in the corresponding period of 2021.

Business Outlook

Due to current unstable market conditions, management believes CIH’s 2022 annual revenue is expected to record a double-digit decrease year-over-year. These estimates represent management’s current and preliminary views, which are subject to change.

Conference Call Information

CIH’s management team will host a conference call on August 17, 2022 at 7:00 AM U.S. ET (7:00 PM Beijing/Hong Kong time). The dial-in details for the live conference call are:

Toll-Free (Local Toll):  
United States +1 844-543-0451 (+1 864-991-4103)
Hong Kong +852 3001-1960
Mainland China +86 400-842-4982

For participants who wish to join the call, please complete online registration using the link provided below at least 20 minutes prior to the scheduled call start time. Upon registering, you will be provided with all conference call access information, including dial-in numbers, your unique personal PIN numbers and an e-mail with detailed instructions to join the conference call.

Participant online registration: https://register.vevent.com/register/BI320b1e647e064a2a87d84fa12a7ab233

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

About CIH

CIH operates a leading real estate information and analytics service platform in China in terms of geographical coverage and volume of data points. Its services span across database, analytics and promotions 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 a reliable, 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 http://ir.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. Potential risks and uncertainties include, without limitation, the impact of the Company’s business development strategies, the Company’s ability to continue as a going concern in the future, the impact of the COVID-19 pandemic, and the impact of current and future government policies affecting China’s real estate market. 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.

CHINA INDEX HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of Renminbi (“RMB”), except for share data)

    As of June 30,     As of December 31,
    2022   2021
 
ASSETS
 
Current assets:
Cash and cash equivalents   315,979     361,521  
Short-term investments   4,172      
Accounts receivable, net of allowance for doubtful accounts   62,488     49,217  
Prepaid expenses and other current assets   29,597     25,531  
Amounts due from a related party – current   31,788      
Total current assets   444,024     436,269  
 
Non-current assets:
Property and equipment, net   729     1,424  
Right of use assets   40,215     38,892  
Other non-current assets   4,899     4,212  
Total non-current assets   45,843     44,528  
 
Total assets   489,867     480,797  
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
Current liabilities:
Accounts payable   14,895     11,465  
Income taxes payable   8,754     25,474  
Deferred revenue   179,847     216,188  
Amounts due to a related party       12,300  
Accrued expenses and other current liabilities   96,508     99,657  
Total current liabilities   300,004     365,084  
 
Non-current liabilities:
Long-term lease liabilities   35,132     29,570  
Other non-current liabilities   79,061     75,288  
Total non-current liabilities   114,193     104,858  
 
Total liabilities   414,197     469,942  
   
SHAREHOLDERS’ EQUITY
Class A ordinary shares (US$0.001 per share, 1,000,000,000 shares authorized for Class A and Class B in aggregate as of June 30, 2022 and December 31, 2021; 72,475,630 shares issued as of June 30, 2022 and December 31, 2021; 66,788,662 and 66,787,537 shares outstanding as of June 30, 2022 and December 31, 2021, respectively)   500     500  
Class B ordinary shares (US$0.001 per share, 1,000,000,000 shares authorized for Class A and Class B in aggregate as of June 30, 2022 and December 31, 2021; 23,636,706 shares issued and outstanding as of June 30, 2022 and December 31, 2021; each Class B ordinary share is convertible into one Class A ordinary share)   163     163  
Treasury shares (5,686,968 and 5,688,093 shares as of June 30, 2022 and December 31, 2021, respectively)   (39 )   (39 )
Capital deficit   (120,040 )   (121,631 )
Retained earnings   179,415     116,454  
Accumulated other comprehensive income   14,189     14,043  
Total shareholders’ equity attributable to China Index Holdings Limited   74,188     9,490  
 
Noncontrolling interests   1,482     1,365  
 
Total shareholders’ equity   75,670     10,855  
 
Total liabilities and shareholders’ equity   489,867     480,797  
             

CHINA INDEX HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Amounts in thousands of RMB, except for per share data)

    Three Months Ended
June 30,

  Six Months Ended
June 30,
    2022    2021    2022    2021 
Revenues   110,219     152,655     228,726     286,385  
Cost of revenues   (19,501 )   (28,583 )   (41,233 )   (53,881 )
Gross profit   90,718     124,072     187,493     232,504  
                         
Operating expenses:                        
Selling and marketing expenses   (29,367 )   (32,243 )   (53,901 )   (58,745 )
General and administrative expenses   (16,346 )   (19,737 )   (43,250 )   (40,819 )
                         
Operating income   45,005     72,092     90,342     132,940  
                         
Interest income   1,158     2,717     2,530     4,324  
Investment income   265     2,466     844     5,144  
Government grants   49     98     1,653     740  
Income before income taxes   46,477     77,373     95,369     143,148  
Income tax expenses   (25,301 )   (10,026 )   (32,291 )   (19,240 )
Net income   21,176     67,347     63,078     123,908  
                         
Less: net income (loss) attributable to noncontrolling interests   47     (21 )   117     (7 )
Net income attributable to China Index Holdings Limited   21,129     67,368     62,961     123,915  
                         
Other comprehensive income (loss)                        
Foreign currency translation adjustments, net of nil income taxes   (2,224 )   9,516     146     5,542  
Total Comprehensive income   18,952     76,863     63,224     129,450  
                         
Less: comprehensive income (loss) attributable to noncontrolling interests   47     (21 )   117     (7 )
Comprehensive income attributable to China Index Holdings Limited   18,905     76,884     63,107     129,457  
                         
Earnings per share for Class A and Class B ordinary shares:                        
Basic   0.23     0.75     0.70     1.38  
Diluted   0.23     0.74     0.70     1.36  
Weighted average number of Class A and Class B ordinary shares and ordinary shares equivalents outstanding:                        
Basic   90,425,368     90,084,259     90,425,053     90,066,296  
Diluted   90,425,368     90,941,935     90,425,053     91,078,299  
CONTACT: For investor and media inquiries, please contact:

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