Exhibit 99.1
Exhibit 99.1
E-House Reports Third Quarter and First Nine Months of 2011 Results
SHANGHAI, China, November 22, 2011 — E-House (China) Holdings Limited (“E-House” or the “Company”)
(NYSE: EJ), a leading real estate services company in China, today announced its unaudited
financial results for the fiscal quarter and nine months ended September 30, 2011.
Third Quarter 2011 Financial and Operating Highlights
| • |
|
Total gross floor area (“GFA”) of new properties sold increased by 19% year-on-year to 3.6 million square
meters. Total value of new properties sold increased by 14% year-on-year to RMB29.6 billion ($4.6
billion)1. |
| |
| • |
|
Total revenues increased by 23% year-on-year to $109.3 million. |
| |
| • |
|
Non-GAAP2 income from operations decreased by 69% year-on-year to $7.2 million. |
| |
| • |
|
Non-GAAP net loss attributable to E-House shareholders was $0.5 million or $0.01 loss per diluted American
depositary share (“ADS”). |
First Nine Months of 2011 Financial and Operating Highlights
| • |
|
Total GFA of new properties sold was 9.2 million square
meters for the first nine months of 2011, an increase of 19%
from the same period of 2010. Total value of new properties
sold was RMB81.7 billion ($12.6 billion) for the first nine
months of 2011, an increase of 25% from the same period of
2010. |
| |
| • |
|
Total revenues were $284.2 million for the first nine
months of 2011, an increase of 23% from the same period of
2010. |
| |
| • |
|
Non-GAAP income from operations was $24.8 million for
the first nine months of 2011, a decrease of 61% from the
same period of 2010. |
| |
| • |
|
Non-GAAP net income attributable to E-House shareholders
was $9.2 million, or $0.11 per diluted ADS, for the first
nine months of 2011, a decrease of 79% from the same period
of 2010. |
“The challenging conditions for the real estate industry in China continued in the third quarter,”
said Mr. Xin Zhou, E-House’s executive chairman. “While we were able to achieve growth in our
primary agency business in terms of total GFA and value of new homes sold, the average sell-through
rates for most of our projects remained low. Since the beginning of the fourth quarter, market
sentiment has weakened further, with total transaction volume for October down as much as 50% year
on year in tier-one cities, where moderate price discounts have failed to generate meaningful
volume increases. Furthermore, our consulting and online business, which had maintained healthy
growth in the first three quarters of this year and shown resilience against short-term industry
fluctuations, started to slow down in the fourth quarter as developers cut back on land purchases
and early-stage project preparation and reduced advertising spending when they didn’t see prospects
of strong volume rebound in the near term.”
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|
|
| 1 |
|
This press release contains translations of
certain RMB amounts into U.S. dollar amounts solely for the convenience of the
reader. The RMB amounts were translated into U.S. dollar amounts at a rate of
RMB6.4144 to US$1.00, which is the average central parity rate announced by the
People’s Bank of China for the third quarter of 2011. |
| |
| 2 |
|
E-House uses in this press release the following non-GAAP
financial measures: (1) income from operations, (2) net income, (3) net income
(loss) attributable to E-House shareholders, (4) net income (loss) attributable
to E-House shareholders per basic ADS, and (5) net income (loss) attributable
to E-House shareholders per diluted ADS, each of which excludes share-based
compensation expense, amortization of intangible assets resulting from business
acquisitions, goodwill impairment charge and loss from the disposal of
subsidiaries. See “About Non-GAAP Financial Measures” and “Unaudited
Reconciliation of GAAP and Non-GAAP Results” below for more information about
the non-GAAP financial measures included in this press release. |
Mr. Zhou continued, “In this challenging market, we will continue to focus on providing innovative
service to our clients. While each of our business units will continue to offer differentiated
services to our clients, we will increasingly seek to combine our teams and resources to provide
comprehensive online and offline solutions, as well as expand distribution channels for our
projects, allowing developers to see a direct link between their advertising spending and increased
sales. We are confident that our new e-commerce platform will be an effective model of combining
online advertising with offline distribution and transactions to deliver a comprehensive solution
for real estate developers.”
Mr. Li-Lan Cheng, E-House’s chief financial officer, added, “In addition to challenging market
conditions, our results in the third quarter were negatively impacted by goodwill impairment loss
related to our online business, which we acquired in 2009, and unrealized loss from short-term
investments in marketable securities. We expect market conditions in the fourth quarter to worsen
with potentially a sequential decline in total transaction volume, despite the fourth quarter
traditionally being the peak season for real estate transactions. Additionally, as we discussed
earlier this year, the delay in our revenue recognition as a result of tight credit supply has
continued and will negatively impact our results.”
Financial Results for the Third Quarter and First Nine Months of 2011
Revenues
Third quarter total revenues were $109.3 million, an increase of 23% from $88.6 million for the
same quarter of 2010. For the first nine months of 2011, total revenues were $284.2 million, an
increase of 23% from $231.3 million for the same period of 2010.
Primary Real Estate Agency Services
Third quarter revenues from primary real estate agency services were $40.2 million, an increase of
3% from $39.2 million for the same quarter of 2010. This increase was mainly due to a 19% increase
in total GFA of new properties sold and a 14% increase in total transaction value of new properties
sold, partially offset by a decrease in the average commission rate from 1.0% for the third quarter
of 2010 to 0.9% for the same quarter of 2011. (See “Selected Operating Data” below for more details
on total GFA and transaction value of new properties sold.)
For the first nine months of 2011, revenues from primary real estate agency services were $112.8
million, a decrease of 1% from $113.5 million for the same period of 2010. This decrease was mainly
due to a decrease in the average commission rate from 1.2% for the first nine months of 2010 to
0.9% for the same period of 2011, partially offset by a 25% increase in the total transaction value
of new properties sold.
Secondary Real Estate Brokerage Services
Third quarter revenues from secondary real estate brokerage services were $4.4 million, a decrease
of 11% from $4.9 million for the same quarter of 2010. This decrease was mainly due to the decrease
in real estate sales transaction volumes, partially offset by an increase in rental transaction
volume.
For the first nine months of 2011, revenues from secondary real estate brokerage services were
$14.8 million, an increase of 5% from $14.1 million for the same period of 2010. This increase was
mainly due to the combined effect of an increase in rental transaction volume as well as increases
in the average unit selling price, partially offset by a decrease of total transaction value of
secondary real estate sold.
As of September 30, 2011, E-House had a total of 107 secondary real estate brokerage stores in
eight cities in China, compared to 133 stores as of September 30, 2010 and 112 as of June 30, 2011.
The Company closed a number of stores in Shanghai during the first nine months of 2011 in order to
reduce costs and optimize its store network by enhancing its presence in certain districts and
closing unprofitable stores elsewhere.
Page 2
Revenues from China Real Estate Information Corporation (“CRIC”)
CRIC, a subsidiary of E-House, provides real estate information, consulting, online and other
services in China. Third quarter revenues from CRIC were $64.1 million, an increase of 47% from
$43.7 million for the same quarter of 2010. This was mainly attributable to a 106% year-on-year
increase from $19.1 million to $39.3 million in revenues from CRIC’s online segment as a result of
growth in real estate online advertising and gains in CRIC’s market share.
For the first nine months of 2011, revenues from CRIC were $154.9 million, an increase of 52% from
$101.8 million for the same period of 2010. This was mainly attributable to a 118% year-on-year
increase from $41.7 million to $90.7 million in revenues from CRIC’s online segment as a result of
growth in real estate online advertising and gains in CRIC’s market share.
Cost of Revenues
Third quarter cost of revenues was $46.5 million, an increase of 74% from $26.7 million for the
same quarter of 2010, primarily due to higher salary expenses for additional sales staff in the
primary real estate agency service segment, additional costs associated with CRIC’s Baidu, Inc.
(“Baidu”) channels and amortization of the exclusive right to sell Baidu’s real estate Brand Link
products to real estate developers in China starting in August 2011.
For the first nine months of 2011, cost of revenues was $108.6 million, an increase of 56% from
$69.6 million for the same period of 2010, primarily due to higher salary expenses for additional
sales staff in the primary real estate agency service segment, the addition of real estate
promotional event business starting from the second quarter of 2010, the addition of Baidu real
estate channels starting from the third quarter of 2010 and additional amortization of the
exclusive right to sell Baidu’s real estate Brand Link products to real estate developers in China
starting in August 2011.
Selling, General and Administrative (“SG&A”) Expenses
Third quarter SG&A expenses were $69.4 million, an increase of 37% from $50.6 million for the same
quarter of 2010, primarily due to increases in (1) salary, rental and travel expenses for the
Company’s primary real estate agency service segment, (2) salary, commission and bonus expenses
associated with additional sales and administrative staff and marketing expenses paid to Baidu for
CRIC’s online business, (3) salary expenses associated with additional sales and administrative
staff for CRIC’s information and consulting business and (4) share-based compensation expenses as a
result of restricted shares and stock options granted in the fourth quarter of 2010 and the first
quarter of 2011.
For the first nine months of 2011, SG&A expenses were $190.7 million, an increase of 43% from
$133.0 million for the same period of 2010. This increase was primarily due to increases in (1)
salary, rental and travel expenses for the Company’s primary real estate agency service segment,
(2) salary, commission and bonus expenses associated with additional sales and administrative staff
and expenses paid to Baidu for CRIC’s online business, (3) salary and bonus expenses associated
with additional sales and administrative staff for CRIC’s information and consulting business and
(4) share-based compensation expenses.
Page 3
Goodwill Impairment Charge
A substantial portion of goodwill on the Company’s balance sheet relates to the acquisition of the
Company’s online unit in 2009. Toward the end of the third quarter of 2011, China’s real estate
market showed signs of further slowdown under the government’s continued restrictive policies and
further credit tightening. CRIC’s online unit, which had increased its revenue by more than 100% in
the first nine months of 2011 despite government policies, started to slow down as developers
became more pessimistic about increasing sales volume and more cautious with their advertising
spending. The Company believes that this will result in slower than previously expected growth for
its online business over the next several quarters. In addition, CRIC experienced a 31% decline in
its stock price from June 30, 2011 to September 30, 2011. These circumstances prompted management
to evaluate and test the fair value of the Company’s assets against their carrying amount in
accordance with U.S. GAAP. The Company concluded that the carrying amount of its online assets was
higher than their current fair value and consequently recorded a goodwill impairment charge of
$417.8 million during the third quarter of 2011.
Income (Loss) from Operations
Third quarter loss from operations was $424.4 million, compared to income from operations of $11.3
million for the same quarter of 2010. This loss was mainly due to the $417.8 million goodwill
impairment charge of CRIC’s online segment. Third quarter non-GAAP income from operations was $7.2
million, a decrease of 69% from $23.2 million for the same quarter of 2010.
For the first nine months of 2011, loss from operations was $432.9 million, compared to income from
operations of $28.7 million for the same period of 2010. The loss was mainly due to the $417.8
million goodwill impairment charge of CRIC’s online segment. For the first nine months of 2011,
non-GAAP income from operations was $24.8 million, a decrease of 61% from $64.4 million in the same
period of 2010.
Net Income (Loss)
Third quarter net loss was $425.6 million, compared to net income of $9.6 million for the same
quarter of 2010. Third quarter non-GAAP net income was $5.3 million, compared to $20.8 million for
the same quarter of 2010. In addition to the decrease in non-GAAP income from operations, the
decrease in non-GAAP net income was also attributable to an unrealized loss from short-term
investments in marketable securities of $7.3 million, partially offset by government subsidies of
$4.3 million.
For the first nine months of 2011, net loss was $433.1 million, compared to net income of $31.4
million for the same period of 2010. Non-GAAP net income for the first nine months of 2011 was
$23.6 million, compared to $65.1 million in the same period of 2010. In addition to the decrease in
non-GAAP income from operations, the decrease in non-GAAP net income for the first nine months of
2011 was also attributable to an unrealized loss from short-term investments of $10.0 million,
partially offset by government subsidies of $5.6 million.
Net Income (Loss) Attributable to E-House Shareholders
Third quarter net loss attributable to E-House shareholders was $235.3 million, or $2.97 loss per
diluted ADS, compared to net income attributable to E-House shareholders of $5.9 million, or $0.07
per diluted ADS, for the same quarter of 2010. Third quarter non-GAAP net loss attributable to
E-House shareholders was $0.5 million, or $0.01 loss per diluted ADS, compared to non-GAAP net
income attributable to E-House shareholders of $13.2 million, or $0.16 per diluted ADS, for the
same quarter of 2010.
For the first nine months of 2011, net loss attributable to E-House shareholders was $242.5
million, or $3.02 loss per diluted ADS, compared to net income attributable to E-House shareholders
of $23.2 million, or $0.28 per diluted ADS, for the same period of 2010. Non-GAAP net income
attributable to E-House shareholders for the first nine months of 2011 was $9.2 million, or $0.11
per diluted ADS, compared to $44.9 million, or $0.55 per diluted ADS, for the same period of 2010.
Page 4
Cash Flow
As of September 30, 2011, the Company had a cash balance of $347.7 million.
Third quarter 2011 net cash generated from operating activities was $3.1 million. This amount was
mainly attributable to non-GAAP net income of $5.3 million.
Third quarter 2011 net cash used in investing activities was $25.0 million. This amount was mainly
attributable to a $5.5 million investment in affiliates, $6.3 million acquisition of new
subsidiaries and $13.4 million purchase of property and equipment as well as intangible assets.
Third quarter 2011 net cash used in financing activities was $28.2 million. This amount was mainly
due to the payment of $27.8 million for share repurchases by the Company and CRIC.
Business Outlook
The Company estimates that its revenues for the fourth quarter of 2011 will be in the range of $102
million to $104 million, compared to $125.2 million in the same quarter in 2010. This forecast
reflects the Company’s current and preliminary view, which is subject to change.
Conference Call Information
E-House’s management will host an earnings conference call on November 22, 2011 at 8:15 a.m. U.S.
Eastern Time (9:15 p.m. Beijing/Hong Kong time).
Dial-in details for the earnings conference call are as follows:
U.S./International:+1-718-354-1231
Hong Kong: +852-2475-0994
Mainland China: 800-819-0121
Please dial in 10 minutes before the call is scheduled to begin and provide the passcode to join
the call. The passcode is “E-House earnings call.”
A replay of the conference call may be accessed by phone at the following number until November 29,
2011:
International: +1-718-354-1232
Passcode: 28296733
Additionally, a live and archived webcast will be available at http://ir.ehousechina.com.
About E-House
E-House (China) Holdings Limited (“E-House”) (NYSE: EJ) is China’s leading real estate services
company with a nationwide network covering more than 170 cities. E-House offers a wide range of
services to the real estate industry, including primary sales agency, secondary brokerage,
information and consulting, online, advertising, promotional events and investment management
services. The real estate information and consulting, online, advertising and promotional events
services are offered through E-House’s majority owned subsidiary, China Real Estate Information
Corporation (NASDAQ: CRIC). E-House has received numerous awards for its innovative and
high-quality services, including “China’s Best Company” from the National Association of Real
Estate Brokerage and Appraisal Companies and “China Enterprises with the Best Potential” from
Forbes. For more information about E-House, please visit http://www.ehousechina.com.
Page 5
Safe Harbor: Forward-Looking Statements
This announcement contains forward-looking statements. These statements are made under the “safe
harbor” provisions of Section 21E of the Securities Exchange Act of 1934, as amended. These
forward-looking statements can be identified by terminology such as “will,” “expects,”
“anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “may,” “intend,” “confident,”
“is currently reviewing,” “it is possible,” “subject to” and similar statements. Among other
things, the Business Outlook section and quotations from management in this press release, as well
as E-House’s strategic and operational plans, contain forward-looking statements. E-House may also
make forward-looking statements in its reports filed or furnished with the U.S. Securities and
Exchange Commission, including on Forms 20-F and 6-K, in its annual report to shareholders, in
press releases and other written materials and in oral statements made by its officers, directors
or employees to third parties. Statements that are not historical facts, including statements about
E-House’s beliefs and expectations, are forward-looking statements and are subject to change.
Forward-looking statements involve inherent risks and uncertainties. A number of important factors
could cause actual results to differ materially from those contained, either expressly or
impliedly, in any of the forward-looking statements in this press release. Potential risks and
uncertainties include, but are not limited to, a severe or prolonged downturn in the global
economy, E-House’s susceptibility to fluctuations in the real estate market of China, government
measures aimed at China’s real estate industry, failure of the real estate services industry in
China to develop or mature as quickly as expected, diminution of the value of E-House’s brand or
image, E-House’s inability to successfully execute its strategy of expanding into new geographical
markets in China, E-House’s failure to manage its growth effectively and efficiently, E-House’s
failure to successfully execute the business plans for its strategic alliances and other new
business initiatives, E-House’s loss of its competitive advantage if it fails to maintain and
improve its proprietary CRIC system or to prevent disruptions or failure in the system’s
performance, E-House’s failure to compete successfully, fluctuations in E-House’s results of
operations and cash flows, E-House’s reliance on a concentrated number of real estate developers,
natural disasters or outbreaks of health epidemics and other risks outlined in E-House’s filings
with the U.S. Securities and Exchange Commission. All information provided in this press release is
current as of the date of this press release, and E-House does not undertake any obligation to
update any such information, except as required under applicable law.
About Non-GAAP Financial Measures
To supplement E-House’s consolidated financial results presented in accordance with United States
Generally Accepted Accounting Principles (“GAAP”), E-House uses in this press release the following
non-GAAP financial measures: (1) income from operations, (2) net income, (3) net income
attributable to E-House shareholders (4) net income (loss) attributable to E-House shareholders per
basic ADS, and (5) net income (loss) attributable to E-House shareholders per diluted ADS, each of
which excludes share-based compensation expense, amortization of intangible assets resulting from
business acquisitions, goodwill impairment charge and loss from the disposal of subsidiaries. The
presentation of these non-GAAP financial measures is not intended to be considered in isolation or
as a substitute for the financial information prepared and presented in accordance with GAAP. For
more information on these non-GAAP financial measures, please see the table captioned “Unaudited
Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release.
E-House believes that these non-GAAP financial measures provide meaningful supplemental information
to investors regarding its operating performance by excluding share-based compensation expense,
amortization of intangible assets resulting from business acquisitions, goodwill impairment charge
and gain/(loss) from the disposal of subsidiaries, which may not be indicative of E-House’s
operating performance. These non-GAAP financial measures also facilitate management’s internal
comparisons to E-House’s historical performance and assist its financial and operational decision
making. A limitation of using these non-GAAP financial measures excluding expenses relating to
share-based compensation, amortization of intangible assets resulting from business acquisitions,
goodwill impairment charge and loss from the disposal of subsidiaries is that these expenses
charges have been and will continue to be significant recurring expenses in E-House’s business for
the foreseeable future. Management compensates for these limitations by providing specific
information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables
have more details on the reconciliation between non-GAAP financial measures and their most
comparable GAAP financial measures.
Page 6
For investor and media inquiries please contact:
In China
Kelly Qian
Manager, Investor Relations
E-House (China) Holdings Limited
Phone: +86 (21) 6133-0730
E-mail: ir@ehousechina.com
Derek Mitchell
Ogilvy Financial, Beijing
Phone: +86 (10) 8520-6284
E-mail: ej@ogilvy.com
In the U.S.
Jessica Barist Cohen
Ogilvy Financial, New York
Phone: +1 (646) 460-9989
E-mail: ej@ogilvy.com
Page 7
E-HOUSE (CHINA) HOLDINGS LIMITED
UNAUDITED CONSOLIDATED BALANCE SHEET
(In thousands of U.S. dollars)
| |
|
|
|
|
|
|
|
|
| |
|
December 31, |
|
|
September 30, |
|
| |
|
2010 |
|
|
2011 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
543,818 |
|
|
|
347,704 |
|
Restricted cash |
|
|
6,985 |
|
|
|
2,087 |
|
Marketable securities |
|
|
16,564 |
|
|
|
6,549 |
|
Customer deposits |
|
|
90,617 |
|
|
|
120,877 |
|
Accounts receivable, net |
|
|
174,114 |
|
|
|
218,253 |
|
Properties held for sale |
|
|
4,458 |
|
|
|
3,450 |
|
Deferred tax assets |
|
|
17,285 |
|
|
|
16,837 |
|
Prepaid expenses and other current assets |
|
|
22,052 |
|
|
|
38,608 |
|
Amounts due from related parties |
|
|
19 |
|
|
|
1,511 |
|
|
|
|
|
|
|
|
Total current assets |
|
|
875,912 |
|
|
|
755,876 |
|
Property and equipment, net |
|
|
21,303 |
|
|
|
25,249 |
|
Intangible assets, net |
|
|
183,912 |
|
|
|
221,119 |
|
Investment in affiliates |
|
|
10,161 |
|
|
|
26,468 |
|
Goodwill |
|
|
453,140 |
|
|
|
49,224 |
|
Other non-current assets |
|
|
13,838 |
|
|
|
45,115 |
|
|
|
|
|
|
|
|
Total assets |
|
|
1,558,266 |
|
|
|
1,123,051 |
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
|
|
8,149 |
|
|
|
5,742 |
|
Accrued payroll and welfare expenses |
|
|
37,853 |
|
|
|
36,222 |
|
Income tax payable |
|
|
42,276 |
|
|
|
24,761 |
|
Other tax payable |
|
|
14,765 |
|
|
|
16,098 |
|
Amounts due to related parties |
|
|
5,155 |
|
|
|
1,116 |
|
Advance from property buyers |
|
|
7,619 |
|
|
|
1,501 |
|
Deferred revenue |
|
|
7,973 |
|
|
|
12,357 |
|
Other current liabilities |
|
|
16,309 |
|
|
|
35,736 |
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
140,099 |
|
|
|
133,533 |
|
Deferred tax liabilities |
|
|
40,152 |
|
|
|
43,102 |
|
Other non-current liabilities |
|
|
1,375 |
|
|
|
22,442 |
|
|
|
|
|
|
|
|
Total liabilities |
|
|
181,626 |
|
|
|
199,077 |
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
Ordinary shares ($0.001 par value): 1,000,000,000
and 1,000,000,000 shares
authorized, 80,752,526 and 78,703,087
shares issued and outstanding, as of
December 31, 2010 and September 30,
2011, respectively |
|
|
81 |
|
|
|
79 |
|
Additional paid-in capital |
|
|
672,621 |
|
|
|
682,024 |
|
Subscription receivables |
|
|
(65 |
) |
|
|
— |
|
Retained earnings (Accumulated deficit) |
|
|
200,823 |
|
|
|
(72,699 |
) |
Accumulated other comprehensive income |
|
|
27,640 |
|
|
|
42,935 |
|
|
|
|
|
|
|
|
Total E-House equity |
|
|
901,100 |
|
|
|
652,339 |
|
Non-controlling interests |
|
|
475,540 |
|
|
|
271,635 |
|
|
|
|
|
|
|
|
Total equity |
|
|
1,376,640 |
|
|
|
923,974 |
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY |
|
|
1,558,266 |
|
|
|
1,123,051 |
|
|
|
|
|
|
|
|
Page 8
E-HOUSE (CHINA) HOLDINGS LIMITED
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of U.S. dollars, except share data and per share data)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three months ended |
|
|
Nine months ended |
|
| |
|
September 30, |
|
|
September 30, |
|
| |
|
2010 |
|
|
2011 |
|
|
2010 |
|
|
2011 |
|
Revenues |
|
|
88,634 |
|
|
|
109,301 |
|
|
|
231,307 |
|
|
|
284,226 |
|
Cost of revenues |
|
|
(26,710 |
) |
|
|
(46,462 |
) |
|
|
(69,581 |
) |
|
|
(108,603 |
) |
Selling, general and administrative expenses |
|
|
(50,609 |
) |
|
|
(69,434 |
) |
|
|
(133,037 |
) |
|
|
(190,716 |
) |
Goodwill impairment charge |
|
|
— |
|
|
|
(417,822 |
) |
|
|
— |
|
|
|
(417,822 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from operations |
|
|
11,315 |
|
|
|
(424,417 |
) |
|
|
28,689 |
|
|
|
(432,915 |
) |
Interest income |
|
|
738 |
|
|
|
636 |
|
|
|
2,123 |
|
|
|
1,948 |
|
Other income (expenses), net |
|
|
1,358 |
|
|
|
(4,223 |
) |
|
|
6,037 |
|
|
|
(6,723 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) before taxes, and equity in
affiliates |
|
|
13,411 |
|
|
|
(428,004 |
) |
|
|
36,849 |
|
|
|
(437,690 |
) |
Income tax benefit (expense) |
|
|
(3,749 |
) |
|
|
2,460 |
|
|
|
(5,324 |
) |
|
|
5,120 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before equity in affiliates |
|
|
9,662 |
|
|
|
(425,544 |
) |
|
|
31,525 |
|
|
|
(432,570 |
) |
Loss from equity in affiliates |
|
|
(45 |
) |
|
|
(26 |
) |
|
|
(123 |
) |
|
|
(496 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
|
9,617 |
|
|
|
(425,570 |
) |
|
|
31,402 |
|
|
|
(433,066 |
) |
Less: net income (loss) attributable to
non-controlling interests |
|
|
3,669 |
|
|
|
(190,288 |
) |
|
|
8,172 |
|
|
|
(190,574 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to E-House
shareholders |
|
|
5,948 |
|
|
|
(235,282 |
) |
|
|
23,230 |
|
|
|
(242,492 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
0.07 |
|
|
|
(2.97 |
) |
|
|
0.29 |
|
|
|
(3.02 |
) |
Diluted |
|
|
0.07 |
|
|
|
(2.97 |
) |
|
|
0.28 |
|
|
|
(3.02 |
) |
Shares used in computation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
80,283,790 |
|
|
|
79,087,425 |
|
|
|
80,224,258 |
|
|
|
80,210,915 |
|
Diluted |
|
|
81,290,540 |
|
|
|
79,087,425 |
|
|
|
81,160,354 |
|
|
|
80,210,915 |
|
| |
|
|
| Note 1 |
|
The conversion of Renminbi (“RMB”) amounts into USD amounts is based on the rate of USD1 =
RMB6.3549 on September 30, 2011 and USD1 = RMB6.4144 for the three months ended September 30, 2011. |
Page 9
E-HOUSE (CHINA) HOLDINGS LIMITED
Unaudited Reconciliation of GAAP and Non-GAAP Results
(In thousands of U.S. dollars, except share data and per ADS data)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three months ended |
|
|
Nine months ended |
|
| |
|
September 30, |
|
|
September 30, |
|
| |
|
2010 |
|
|
2011 |
|
|
2010 |
|
|
2011 |
|
GAAP income (loss) from operations |
|
|
11,315 |
|
|
|
(424,417 |
) |
|
|
28,689 |
|
|
|
(432,915 |
) |
Share-based compensation expense |
|
|
6,667 |
|
|
|
8,155 |
|
|
|
20,057 |
|
|
|
23,690 |
|
Amortization of intangible assets resulting from
business acquisitions |
|
|
5,237 |
|
|
|
5,645 |
|
|
|
15,672 |
|
|
|
16,215 |
|
Goodwill impairment charge |
|
|
— |
|
|
|
417,822 |
|
|
|
— |
|
|
|
417,822 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income from operations |
|
|
23,219 |
|
|
|
7,205 |
|
|
|
64,418 |
|
|
|
24,812 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) |
|
|
9,617 |
|
|
|
(425,570 |
) |
|
|
31,402 |
|
|
|
(433,066 |
) |
Share-based compensation expense (net of tax) |
|
|
6,667 |
|
|
|
8,155 |
|
|
|
20,057 |
|
|
|
23,690 |
|
Amortization of intangible assets resulting from
business acquisitions (net of tax) |
|
|
4,550 |
|
|
|
4,853 |
|
|
|
13,623 |
|
|
|
14,074 |
|
Loss from the disposal of subsidiaries (net of tax) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,054 |
|
Goodwill impairment charge |
|
|
— |
|
|
|
417,822 |
|
|
|
— |
|
|
|
417,822 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income |
|
|
20,834 |
|
|
|
5,260 |
|
|
|
65,082 |
|
|
|
23,574 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to E-House
Shareholder |
|
|
5,948 |
|
|
|
(235,282 |
) |
|
|
23,230 |
|
|
|
(242,492 |
) |
Share-based compensation expense
(net of tax and non-controlling interests) |
|
|
4,800 |
|
|
|
5,995 |
|
|
|
14,430 |
|
|
|
17,516 |
|
Amortization of intangible assets resulting from
business acquisitions (net of tax and
non-controlling interests) |
|
|
2,413 |
|
|
|
2,593 |
|
|
|
7,194 |
|
|
|
7,463 |
|
Loss from disposal of subsidiaries (net of tax and
non-controlling interests) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
565 |
|
Goodwill impairment charge (net of non-controlling
interests) |
|
|
— |
|
|
|
226,183 |
|
|
|
— |
|
|
|
226,183 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income (loss) attributable to E-House
shareholders |
|
|
13,161 |
|
|
|
(511 |
) |
|
|
44,854 |
|
|
|
9,235 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) per ADS — basic |
|
|
0.07 |
|
|
|
(2.97 |
) |
|
|
0.29 |
|
|
|
(3.02 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) per ADS — diluted |
|
|
0.07 |
|
|
|
(2.97 |
) |
|
|
0.28 |
|
|
|
(3.02 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income (loss) per ADS — basic |
|
|
0.16 |
|
|
|
(0.01 |
) |
|
|
0.56 |
|
|
|
0.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income (loss) per ADS — diluted |
|
|
0.16 |
|
|
|
(0.01 |
) |
|
|
0.55 |
|
|
|
0.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in calculating basic GAAP / non-GAAP
net income (loss) attributable to shareholders per
ADS |
|
|
80,283,790 |
|
|
|
79,087,425 |
|
|
|
80,224,258 |
|
|
|
80,210,915 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in calculating diluted GAAP net income
(loss) attributable to shareholders per ADS |
|
|
81,290,540 |
|
|
|
79,087,425 |
|
|
|
81,160,354 |
|
|
|
80,210,915 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Shares used in calculating diluted non-GAAP net
income attributable to shareholders per ADS |
|
|
81,290,540 |
|
|
|
79,087,425 |
|
|
|
81,160,354 |
|
|
|
80,688,211 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 10
|
|
|
| |
|
|
| CONFIDENTIAL DRAFT
|
|
2.8.2011 SH |
E-HOUSE (CHINA) HOLDINGS LIMITED
SELECTED OPERATING DATA
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three months ended |
|
|
Nine months ended |
|
| |
|
September 30, |
|
|
September 30, |
|
| |
|
2010 |
|
|
2011 |
|
|
2010 |
|
|
2011 |
|
Primary real estate agency service |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Gross Floor Area (“GFA”) of new properties
sold (thousands of square meters) |
|
|
3,005 |
|
|
|
3,576 |
|
|
|
7,714 |
|
|
|
9,216 |
|
Total value of new properties sold (millions of RMB) |
|
|
25,906 |
|
|
|
29,622 |
|
|
|
65,612 |
|
|
|
81,725 |
|
Total value of new properties sold (millions of $) |
|
|
3,869 |
|
|
|
4,641 |
|
|
|
9,700 |
|
|
|
12,600 |
|