China Index Holdings Announces Third Quarter 2020 Unaudited Financial Results
China Index Holdings Limited (NASDAQ: CIH) reported strong financial results for Q3 2020, with total revenues reaching RMB170.9 million, a year-over-year increase of 8.0%.
Operating income rose 12.9% to RMB86.5 million, while net income surged 15.3% to RMB76.1 million.
The company attributed revenue growth to its information and analytics services, which increased 14.4% to RMB88.8 million. Management expects to sustain a double-digit growth trajectory in both revenue and net profits for the fiscal year.
- Total revenues of RMB170.9 million, up 8.0% year-over-year.
- Operating income increased by 12.9% to RMB86.5 million.
- Net income rose by 15.3% to RMB76.1 million.
- Revenue from information and analytics services increased by 14.4%.
- Operating expenses grew by 5.1% to RMB55.2 million, impacting profit margins.
- Income tax expenses increased by 21.8%, affecting net income.
BEIJING, Nov. 11, 2020 (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 third quarter ended September 30, 2020.
Third Quarter 2020 Highlights
- Total revenues were RMB170.9 million, an increase of
8.0% from RMB158.3 million in the corresponding period of 2019. - Operating income was RMB86.5 million, an increase of
12.9% from RMB76.6 million in the corresponding period of 2019. - Net income was RMB76.1 million, an increase of
15.3% from RMB66.0 million in the corresponding period of 2019.
Third Quarter 2020 Financial Results
Revenues
CIH reported total revenues of RMB170.9 million in the third quarter of 2020, an increase of
- Revenues from information and analytics services (SaaS) were RMB88.8 million in the third quarter of 2020, an increase of
14.4% from RMB77.6 million in the corresponding period of 2019, primarily due to an increase in number of customers. - Revenues from marketplace services were RMB82.1 million in the third quarter of 2020, an increase of
1.7% from RMB80.7 million in the corresponding period of 2019.
Cost of Revenue
Cost of revenue was RMB29.3 million in the third quarter of 2020, which remained stable compared to RMB29.2 million in the corresponding period of 2019.
Operating Expenses
Operating expenses were RMB55.2 million in the third quarter of 2020, an increase of
- Selling and marketing expenses were RMB30.3 million in the third quarter of 2020, an increase of
10.2% from RMB27.5 million in the corresponding period of 2019, primarily due to an increase in personnel costs resulting from the growing number of selling and marketing personnel headcount. - General and administrative expenses were RMB24.9 million in the third quarter of 2020, which remained stable compared to RMB25.0 million in the corresponding period of 2019.
Operating Income
Operating income was RMB86.5 million in the third quarter of 2020, an increase of
Income Tax Expenses
Income tax expenses were RMB13.4 million in the third quarter of 2020, an increase of
Net Income
Net income was RMB76.1 million in the third quarter of 2020, an increase of
Business Outlook
Based on current operations and market conditions, the management remains confident to believe that the Company will maintain a double-digit growth momentum both on its annual revenue and on its net profits for the fiscal year ending December 31, 2020. These estimates represent management’s current and preliminary view, which are subject to change.
Conference Call Information
CIH’s management team will host a conference call on November 11, 2020 at 7:00 AM U.S. ET (8:00 PM Beijing/Hong Kong time). The dial-in details for the live conference call are:
| International Toll: | +65 67135600 |
| Toll-Free/Local Toll: | |
| United States | +1 877-440-9253 / +1 631-460-7472 |
| Hong Kong | +852 800-906-603 / +852 3018-6773 |
| Mainland China | +86 800-870-0075 / +86 400-120-0948 |
| Direct Event Passcode | 1383200# |
Please register in advance of the conference using the link provided below. Upon registering, you will be provided with participant dial-in numbers, Direct Event passcode (1383200#) and unique registrant ID. Get prompted 10 min prior to the start of the conference. Enter the Direct Event Passcode above (1383200#), and your unique Registrant ID, followed by the pound or hash sign (#) to join the call.
Direct Event online registration: http://apac.directeventreg.com/registration/event/9877938
A telephone replay of the call will be available after the conclusion of the conference call from 10:00 AM ET on November 11, 2020 through 07:59 AM ET November 19, 2020. 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 / +86 800-870-0206 |
| Conference ID: | 9877938 |
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, 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 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 and market position. 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.
| CHINA INDEX HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands of Renminbi (“RMB”), except for share data) | ||||||||
| As of September 30, | As of December 31, | |||||||
| 2020 | 2019 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | 139,835 | 214,076 | ||||||
| Short-term investments | 417,265 | 125,000 | ||||||
| Accounts receivable, net of allowance for doubtful accounts | 42,482 | 24,243 | ||||||
| Prepaid expenses and other current assets | 3,340 | 4,566 | ||||||
| Amount due from related parties | 23,351 | 4,820 | ||||||
| Total current assets | 626,273 | 372,705 | ||||||
| Non-current assets: | ||||||||
| Property and equipment, net | 2,387 | 2,873 | ||||||
| Right of use assets | 45,676 | 49,595 | ||||||
| Total non-current assets | 48,063 | 52,468 | ||||||
| Total assets | 674,336 | 425,173 | ||||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | 6,408 | 7,844 | ||||||
| Income taxes payable | 16,672 | 23,396 | ||||||
| Deferred revenue | 252,958 | 203,531 | ||||||
| Amounts due to a related party | - | 7,734 | ||||||
| Accrued expenses and other liabilities | 86,815 | 84,250 | ||||||
| Total current liabilities | 362,853 | 326,755 | ||||||
| Non-current liabilities: | ||||||||
| Long-term lease liability | 26,828 | 37,679 | ||||||
| Other non-current liabilities | 54,115 | 39,757 | ||||||
| Total non-current liabilities | 80,943 | 77,436 | ||||||
| Total liabilities | 443,796 | 404,191 | ||||||
| Commitments and contingencies | - | - | ||||||
| Equity: | ||||||||
| Class A ordinary shares, par value US | 500 | 500 | ||||||
| Class B ordinary shares, par value US | 163 | 163 | ||||||
| Treasury shares | (42 | ) | (46 | ) | ||||
| Capital deficit | (128,284 | ) | (135,179 | ) | ||||
| Retained earnings | 357,578 | 155,324 | ||||||
| Accumulated other comprehensive income | 625 | 220 | ||||||
| Total equity | 230,540 | 20,982 | ||||||
| Total liabilities and equity | 674,336 | 425,173 | ||||||
| CHINA INDEX HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Amounts in thousands of RMB, except for per share data) | ||||||
| Three Months Ended September 30 | ||||||
| 2020 | 2019 | |||||
| Revenues | 170,929 | 158,250 | ||||
| Cost of revenues | (29,258 | ) | (29,165 | ) | ||
| Gross profit | 141,671 | 129,085 | ||||
| Operating expenses: | ||||||
| Selling and marketing expenses | (30,258 | ) | (27,427 | ) | ||
| General and administrative expenses | (24,918 | ) | (25,028 | ) | ||
| Operating income | 86,495 | 76,630 | ||||
| Interest income | 411 | 1,137 | ||||
| Change in fair value of warrants | - | (1,399 | ) | |||
| Gains on sale of short-term investments | 1,815 | - | ||||
| Government grants | 698 | 663 | ||||
| Income before income taxes | 89,419 | 77,031 | ||||
| Income tax expenses | (13,362 | ) | (11,001 | ) | ||
| Net income | 76,057 | 66,030 | ||||
| Other comprehensive income (loss) | ||||||
| Foreign currency translation adjustments, net of nil income taxes | 87 | (71 | ) | |||
| Unrealized holding gains on short-term investments net of RMB331 and nil income taxes for the periods ended September 30, 2020 and 2019 | 1,875 | - | ||||
| Less: Reclassification adjustment for gains on short-term investments realized in net income, net of RMB272 and nil income taxes for the periods ended September 30, 2020 and 2019 | (1,543 | ) | - | |||
| Total comprehensive income | 76,476 | 65,959 | ||||
| Earnings per share for Class A and Class B ordinary shares: | ||||||
| Basic | 0.84 | 0.74 | ||||
| Diluted | 0.84 | 0.73 | ||||
| Weighted average number of Class A and Class B ordinary shares and ordinary shares equivalents outstanding: | ||||||
| Basic | 89,843,594 | 89,410,461 | ||||
| Diluted | 90,249,500 | 90,133,853 | ||||
FAQ
What were China Index Holdings' Q3 2020 earnings results?
What is the future outlook for China Index Holdings?
How did the SaaS revenue perform in Q3 2020 for CIH?
