China Index Holdings Announces Third Quarter 2022 Unaudited Financial Results

Rhea-AI Summary

China Index Holdings Limited (NASDAQ: CIH) reported its third quarter financial results for 2022, revealing total revenues of RMB97.7 million, a 39.3% decline from RMB160.8 million in the same quarter of 2021. Operating income decreased by 60.4% to RMB30.9 million, while net income fell by 62.1% to RMB27.6 million.

The company attributed the revenue drop to challenging macroeconomic conditions. Management anticipates a double-digit year-over-year revenue decrease for 2022 due to market instability.

Positive

• Cost of revenues reduced by 28.0%, signaling improved cost management.
• Operating expenses decreased by 15.0%, reflecting cost containment efforts.

Negative

• Total revenues decreased by 39.3% year-over-year, indicating significant revenue challenges.
• Operating income fell by 60.4%, showing severe profit compression.
• Net income declined by 62.1%, reflecting a substantial hit to profitability.
• Management expects a double-digit decline in annual revenue for 2022, indicating ongoing business difficulties.

BEIJING, Nov. 15, 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 third quarter ended September 30, 2022.

Third Quarter 2022 Highlights

• Total revenues were RMB97.7 million, a decrease of 39.3% from RMB160.8 million in the corresponding period of 2021.
• Operating income was RMB30.9 million, a decrease of 60.4% from RMB78.0 million in the corresponding period of 2021.
• Net income was RMB27.6 million, a decrease of 62.1% from RMB72.8 million in the corresponding period of 2021.
  

Third Quarter 2022 Financial Results

Revenues

CIH reported total revenues of RMB97.7 million in the third quarter of 2022, a decrease of 39.3% from RMB160.8 million in the corresponding period of 2021, primarily due to the broad macro environment challenges the industry is facing.

• Revenues from information and analytics services (SaaS) were RMB51.6 million in the third quarter of 2022, a decrease of 39.8% from RMB85.7 million in the corresponding period of 2021.
• Revenues from marketplace services were RMB46.1 million in the third quarter of 2022, a decrease of 38.6% from RMB75.1 million in the corresponding period of 2021.

Cost of Revenues

Cost of revenues was RMB19.8 million in the third quarter of 2022, a decrease of 28.0% from RMB27.5 million in the corresponding period of 2021.

Operating Expenses

Operating expenses were RMB47.0 million in the third quarter of 2022, a decrease of 15.0% from RMB55.3 million in the corresponding period of 2021.

• Selling and marketing expenses were RMB22.2 million in the third quarter of 2022, a decrease of 26.0% from RMB29.9 million in the corresponding period of 2021, primarily due to a decrease in personnel cost.
• General and administrative expenses were RMB24.8 million in the third quarter of 2022, a decrease of 2.0% from RMB25.3 million in the corresponding period of 2021.

Operating Income

Operating income was RMB30.9 million in the third quarter of 2022, a decrease of 60.4% from RMB78.0 million in the corresponding period of 2021.

Income Tax Expenses

Income tax expenses were RMB3.3 million in the third quarter of 2022, a decrease of 70.3% from RMB11.0 million in the corresponding period of 2021.

Net Income

Net income was RMB27.6 million in the third quarter of 2022, a decrease of 62.1% from RMB72.8 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.

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 September 30,				As of December 31,
		2022				2021
ASSETS
Current assets:
Cash and cash equivalents			356,841				361,521
Short-term investments			23,576				-
Accounts receivable, net of allowance for doubtful accounts			63,860				49,217
Prepaid expenses and other current assets			30,500				25,531
Amounts due from a related party - current			8,536				-
Total current assets			483,313				436,269
Non-current assets:
Property and equipment, net			444				1,424
Right of use assets			38,520				38,892
Other non-current assets			5,620				4,212
Total non-current assets			44,584				44,528
Total assets			527,897				480,797
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable			15,728				11,465
Income taxes payable			10,752				25,474
Deferred revenue			170,730				216,188
Amounts due to a related party			-				12,300
Accrued expenses and other current liabilities			93,969				99,657
Total current liabilities			291,179				365,084
Non-current liabilities:
Long-term lease liabilities			34,368				29,570
Other non-current liabilities			80,299				75,288
Total non-current liabilities			114,667				104,858
Total liabilities			405,846				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 September 30, 2022 and December 31, 2021; 72,475,630 shares issued as of September 30, 2022 and December 31, 2021; 66,788,662 and 66,787,537 shares outstanding as of September 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 September 30, 2022 and December 31, 2021; 23,636,706 shares issued and outstanding as of September 30, 2022 and December 31, 2021; each Class B ordinary share is convertible into one Class A ordinary share)			163				163
Treasury shares			(39	)			(39	)
Capital deficit			(119,138	)			(121,631	)
Retained earnings			207,016				116,454
Accumulated other comprehensive income			32,033				14,043
Total shareholders’ equity attributable to China Index Holdings Limited			120,535				9,490
Noncontrolling interests			1,516				1,365
Total shareholders’ equity			122,051				10,855
Total liabilities and shareholders’ equity			527,897				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 September 30,
			2022						2021
Revenues			97,669						160,785
Cost of revenues			(19,785					)	(27,493			)
Gross profit			77,884							133,292
Operating expenses:
Selling and marketing expenses			(22,157					)		(29,947		)
General and administrative expenses			(24,827					)		(25,332		)
Operating income			30,900							78,013
Interest income			2,091							3,006
Investment income (loss)			(2,453					)		2,794
Government grants			363							12
Income before income taxes			30,901							83,825
Income tax expenses			(3,266					)		(10,994		)
Net income			27,635							72,831
Less: net income (loss) attributable to noncontrolling interests			34							(29		)
Net income attributable to China Index Holdings Limited			27,601							72,860
Other comprehensive income (loss)
Foreign currency translation adjustments, net of nil income taxes			17,844							(2,119		)
Total comprehensive income			45,479							70,712
Less: comprehensive income (loss) attributable to noncontrolling interests			34							(29		)
Comprehensive income attributable to China Index Holdings Limited			45,445							70,741
Earnings per share for Class A and Class B ordinary shares:
Basic			0.31								0.81
Diluted			0.31								0.81
Weighted average number of Class A and Class B ordinary shares and ordinary shares equivalents outstanding:
Basic			90,425,368								90,221,432
Diluted			90,425,368								90,232,243

 

FAQ

What were CIH's total revenues for the third quarter of 2022?

CIH reported total revenues of RMB97.7 million for the third quarter of 2022.

How much did CIH's net income decrease in Q3 2022?

CIH's net income decreased by 62.1% to RMB27.6 million in Q3 2022.

What is the outlook for CIH's revenue in 2022?

CIH expects a double-digit revenue decrease year-over-year for 2022 due to market instability.

What were the reasons for the revenue decline at CIH?

The revenue decline was primarily due to broad macro environment challenges facing the industry.