China Index Holdings Announces Fourth Quarter and Fiscal Year 2021 Unaudited Financial Results
China Index Holdings Limited (NASDAQ: CIH) reported unaudited financial results for Q4 and fiscal year 2021. Q4 revenues fell by 4.5% to RMB173.8 million, primarily due to a decline in marketplace services, which dropped 11.2%. However, operating income reached RMB95.8 million, a significant improvement from a loss of RMB451.6 million in Q4 2020. Fiscal year revenues totaled RMB621.0 million, down 2.4% from 2020, but net income rose to RMB279.2 million from a loss of RMB318.4 million. The company anticipates a further revenue decline of 10% for 2022.
- Operating income improved significantly to RMB95.8 million in Q4 2021 from an operating loss of RMB451.6 million in Q4 2020.
- Net income increased to RMB82.5 million in Q4 2021 from a net loss of RMB520.6 million in Q4 2020.
- SaaS revenues grew by 3.1% in Q4 2021, indicating positive demand in that segment.
- Total revenues decreased by 4.5% in Q4 2021 and 2.4% for the fiscal year 2021.
- Marketplace services revenue declined 11.2% in Q4 2021, attributed to broader macro challenges.
- Management anticipates a 10% decline in annual revenue for 2022.
BEIJING, March 24, 2022 (GLOBE NEWSWIRE) -- 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 fourth quarter and fiscal year ended December 31, 2021.
Fourth Quarter 2021 Highlights
- Total revenues were RMB173.8 million, a decrease of
4.5% from RMB182.0 million in the corresponding period of 2020. - Operating income was RMB95.8 million, compared to an operating loss of RMB451.6 million in the corresponding period of 2020.
- Net income was RMB82.5 million, compared to a net loss of RMB520.6 million in the corresponding period of 2020.
Fiscal Year 2021 Highlights
- Total revenues were RMB621.0 million, a decrease of
2.4% from RMB635.9 million in 2020. - Operating income was RMB306.8 million, compared to an operating loss of RMB227.2 million in 2020.
- Net income was RMB279.2 million, compared to a net loss of RMB318.4 million in 2020.
Fourth Quarter 2021 Financial Results
Revenues
CIH reported total revenues of RMB173.8 million in the fourth quarter of 2021, a decrease of
- Revenues from information and analytics services (SaaS) were RMB88.3 million in the fourth quarter of 2021, an increase of
3.1% from RMB85.6 million in the corresponding period of 2020. - Revenues from marketplace services were RMB85.5 million in the fourth quarter of 2021, a decrease of
11.2% from RMB96.4 million in the corresponding period of 2020 primarily due to the broad macro environment challenges the industry was facing.
Cost of Revenues
Cost of revenues was RMB28.7 million in the fourth quarter of 2021, a decrease of
Operating Expenses
Operating expenses were RMB49.2 million in the fourth quarter of 2021, a decrease of
- Selling and marketing expenses were RMB24.9 million in the fourth quarter of 2021, a decrease of
4.0% from RMB26.0 million in the corresponding period of 2020. - General and administrative expenses were RMB24.3 million in the fourth quarter of 2021, a decrease of
95.8% from RMB574.2 million in the corresponding period of 2020, primary due to the bad debt expense of the amounts due from Fang Holdings Limited (“Fang”) in 2020 associated with the repayment of the Company to the holders of convertible notes on behalf of Fang.
Operating Income
Operating Income was RMB95.8 million in the fourth quarter of 2021, compared to an operating loss of RMB451.6 million in the corresponding period of 2020.
Income Tax Expenses
Income tax expenses were RMB16.3 million in the fourth quarter of 2021, a decrease of
Net Income
Net income was RMB82.5 million in the fourth quarter of 2021, compared to a net loss of RMB520.6 million in the corresponding period of 2020.
Fiscal Year 2021 Financial Results
Revenues
CIH reported total revenues of RMB621.0 million for 2021, a decrease of
- Revenues from information and analytics services (SaaS) were RMB311.9 million for 2021, an increase of
2.8% from RMB303.4 million in 2020, primarily due to an increase in the number of customers. - Revenues from marketplace services were RMB309.1 million for 2021, a decrease of
7.1% from RMB332.6 million in 2020 primarily due to the broad macro environment challenges the industry was facing.
Cost of Revenues
Cost of revenues was RMB110.1 million for 2021, an increase of
Operating Expenses
Operating Expenses were RMB204.1 million for 2021, a decrease of
- Selling and marketing expenses were RMB113.6 million for 2021, an increase of
1.1% from RMB112.4 million in 2020. - General and administrative expenses were RMB90.4 million for 2021, a decrease of
86.0% from RMB645.1 million in 2020, primary due to the bad debt expense of the amounts due from Fang in 2020 associated with the repayment of the Company to the holders of convertible notes on behalf of Fang.
Operating Income
Operating Income was RMB306.8 million for 2021, compared to an operating loss of RMB227.2 million in 2020.
Income Tax Expenses
Income tax expenses were RMB46.5 million for 2021, a decrease of
Net Income
Net income was RMB279.2 million for 2021, compared to a net loss of RMB318.4 million in 2020.
Business Outlook
Due to current unstable market conditions, management believes CIH’s 2022 Q1 revenue will decrease within
Conference Call Information
CIH’s management team will host a conference call on March 24, 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:
| International Toll: | +65 67135110 |
| Toll-Free/Local Toll: | |
| United States | +1 833-239-5755 / +1 332-208-9430 |
| Hong Kong | +852 800-906-603 / +852 3018-6773 |
| Mainland China | +86 800-820-5506 / +86 400-820-5097 |
| Direct Event Passcode | 1766081# |
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, Direct Event passcode (1766081#), a unique registrant ID and an e-mail with detailed instructions to join the conference call.
Direct Event online registration: http://apac.directeventreg.com/registration/event/7883976
A telephone replay of the call will be available after the conclusion of the conference call from 10:00 AM ET on March 24, 2022 through 08:59 AM ET March 31, 2022. The dial-in details for the telephone replay are:
| International Toll: | +61 2-9003-4211 |
| 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 | +86 800-988-0601 / +86 400-820-9703 |
| Conference ID: | 7883976 |
A live and archived webcast 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 December 31, | As of December 31, | ||||
| 2021 | 2020 | ||||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | 361,521 | 280,355 | |||
| Short-term investments | - | 391,671 | |||
| Accounts receivable, net of allowance for doubtful accounts | 49,217 | 29,680 | |||
| Prepaid expenses and other current assets | 25,531 | 2,557 | |||
| Amounts due from a related party | - | 3,090 | |||
| Total current assets | 436,269 | 707,353 | |||
| Non-current assets: | |||||
| Property and equipment, net | 1,424 | 2,345 | |||
| Right of use assets | 38,892 | 44,369 | |||
| Other non-current assets | 4,212 | 3,270 | |||
| Total non-current assets | 44,528 | 49,984 | |||
| Total assets | 480,797 | 757,337 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) | |||||
| Current liabilities: | |||||
| Accounts payable | 11,465 | 9,343 | |||
| Income taxes payable | 25,474 | 26,737 | |||
| Deferred revenue | 216,188 | 224,141 | |||
| Amounts due to a related party | 12,300 | 156 | |||
| Accrued expenses and other liabilities | 99,657 | 637,693 | |||
| Total current liabilities | 365,084 | 898,070 | |||
| Non-current liabilities: | |||||
| Long-term lease liabilities | 29,570 | 27,427 | |||
| Other non-current liabilities | 75,288 | 117,987 | |||
| Total non-current liabilities | 104,858 | 145,414 | |||
| Total liabilities | 469,942 | 1,043,484 | |||
| SHAREHOLDERS’ EQUITY (DEFICIT) | |||||
| Class A ordinary shares, (US | 500 | 500 | |||
| Class B ordinary shares (US | 163 | 163 | |||
| Treasury shares | (39 | ) | (42 | ) | |
| Capital deficit | (121,631 | ) | (126,571 | ) | |
| Retained earnings (accumulated deficits) | 116,454 | (162,728 | ) | ||
| Accumulated other comprehensive income | 14,043 | 1,232 | |||
| Total shareholders’ equity (deficit) attributable to China Index Holdings Limited | 9,490 | (287,446 | ) | ||
| Noncontrolling interests | 1,365 | 1,299 | |||
| Total shareholders’ equity (deficit) | 10,855 | (286,147 | ) | ||
| Total liabilities and shareholders’ equity (deficit) | 480,797 | 757,337 | |||
CHINA INDEX HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Amounts in thousands of RMB, except for per share data)
| Three Months Ended December 31 | Year Ended December 31 | ||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||
| Revenues | 173,783 | 181,967 | 620,953 | 635,910 | |||||||
| Cost of revenues | (28,745 | ) | (33,359 | ) | (110,118 | ) | (105,528 | ) | |||
| Gross profit | 145,038 | 148,608 | 510,835 | 530,382 | |||||||
| Operating expenses: | |||||||||||
| Selling and marketing expenses | (24,934 | ) | (25,969 | ) | (113,626 | ) | (112,414 | ) | |||
| General and administrative expenses | (24,282 | ) | (574,216 | ) | (90,434 | ) | (645,145 | ) | |||
| Operating income (loss) | 95,822 | (451,577 | ) | 306,775 | (227,177 | ) | |||||
| Interest income | 2,420 | 354 | 9,750 | 1,625 | |||||||
| Change in fair value of the warrants | - | 1,359 | - | 1,359 | |||||||
| Investment income | 520 | 3,403 | 8,458 | 9,294 | |||||||
| Government grants | 13 | 1,372 | 765 | 5,997 | |||||||
| Income (loss) before income taxes | 98,775 | (445,089 | ) | 325,748 | (208,902 | ) | |||||
| Income tax expense | (16,266 | ) | (75,525 | ) | (46,500 | ) | (109,454 | ) | |||
| Net income (loss) | 82,509 | (520,614 | ) | 279,248 | (318,356 | ) | |||||
| Less: Net income (loss) attributable to noncontrolling interest holders | 48 | (304 | ) | 66 | (304 | ) | |||||
| Net income (loss) attributable to China Index Holdings Limited | 82,461 | (520,310 | ) | 279,182 | (318,052 | ) | |||||
| Other comprehensive income (loss) | |||||||||||
| Unrealized holding loss on short-term investments for the periods ended December 31, 2021 and 2020 | - | (5,344 | ) | - | - | ||||||
| Less: Reclassification adjustment for loss on short-term investments realized in net income for the periods ended December 31, 2021 and 2020 | - | 5,008 | - | - | |||||||
| Foreign currency translation adjustments | 9,388 | 943 | 12,811 | 1,012 | |||||||
| Total comprehensive income (loss) | 91,897 | (520,007 | ) | 292,059 | (317,344 | ) | |||||
| Less: comprehensive income (loss) attributable to noncontrolling interest holders | 48 | (304 | ) | 66 | (304 | ) | |||||
| Total comprehensive income (loss) attributable to China Index Holdings Limited | 91,849 | (519,703 | ) | 291,993 | (317,040 | ) | |||||
| Earnings (loss) per share for Class A and Class B ordinary shares: | |||||||||||
| Basic | 0.91 | (5.78 | ) | 3.10 | (3.54 | ) | |||||
| Diluted | 0.91 | (5.78 | ) | 3.08 | (3.54 | ) | |||||
| Weighted average number of Class A and Class B ordinary shares outstanding: | |||||||||||
| Basic | 90,424,243 | 90,048,134 | 90,196,440 | 89,842,465 | |||||||
| Diluted | 90,424,243 | 90,048,134 | 90,602,539 | 89,842,465 | |||||||
FAQ
What were CIH's total revenues for Q4 2021?
How did CIH's net income change in FY 2021?
What is CIH's revenue outlook for Q1 2022?
What factors contributed to the decrease in CIH's marketplace services revenue?
