China Index Holdings Announces Second Quarter 2022 Unaudited Financial Results

Rhea-AI Summary

China Index Holdings Limited (NASDAQ: CIH) announced its second quarter 2022 results, revealing total revenues of RMB110.2 million, down 27.8% year-over-year. Operating income decreased by 37.6% to RMB45.0 million, while net income plummeted 68.6% to RMB21.2 million. For the first half of 2022, revenues totaled RMB228.7 million, a decline of 20.1%. The company anticipates a double-digit revenue decrease for the full year due to ongoing macroeconomic challenges. Cost-saving measures have been implemented; however, income tax expenses surged by 152.4%.

Positive

• Cost of revenues decreased 31.8% to RMB19.5 million in Q2 2022 due to cost-saving actions.
• Operating expenses decreased 12.1% to RMB45.7 million in Q2 2022.

Negative

• Revenues dropped 27.8% in Q2 2022, significantly impacting financial performance.
• Net income fell 68.6% year-over-year in Q2 2022.
• Operating income decreased 37.6% in Q2 2022.
• Management expects a double-digit revenue decrease for 2022.

BEIJING, Aug. 17, 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 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

FAQ

What are the financial results for CIH in Q2 2022?

CIH reported total revenues of RMB110.2 million, operating income of RMB45.0 million, and net income of RMB21.2 million, all showing significant declines from the previous year.

How did CIH perform in the first half of 2022?

In the first half of 2022, CIH generated revenues of RMB228.7 million, a decrease of 20.1%, with net income declining by 49.1%.

What is CIH's outlook for 2022?

CIH expects a double-digit decrease in annual revenue due to ongoing challenging market conditions.