UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 2014
Commission File Number: 001-33616
E-HOUSE (CHINA) HOLDINGS LIMITED
Qiushi Building, 11/F
No.383 Guangyan Road, Zhabei District
Shanghai 200072
People’s Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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E-House (China) Holdings Limited | |
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By: |
/s/ Bin Laurence |
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Name: |
Bin Laurence |
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Title: |
Chief Financial Officer |
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Date: March 11, 2014 |
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Exhibit 99.1
E-House Subsidiary Leju Signs Strategic Cooperation Agreement with Tencent
SHANGHAI, China, March 10, 2014 — E-House (China) Holdings Limited (“E-House” or the “Company”) (NYSE: EJ), a leading real estate services company in China, today announced that its wholly-owned subsidiary, Leju Holdings Limited (“Leju”), has entered into a strategic cooperation agreement with Tencent Holdings Limited (“Tencent”) (HKG: 0700), a provider of comprehensive Internet services serving the largest online community in China, including hundreds of millions of Weixin users. Leju is a leading provider of real estate online services including advertising, listings and product launch information (“Real Estate Online Information”), and online-to-offline e-commerce services (“Real Estate O2O E-Commerce”) that facilitate real estate transactions in China.
Under the strategic cooperation agreement, Leju and Tencent have agreed to jointly develop software and tools for use on Weixin to facilitate Leju in opening batches of Weixin public accounts associated with real estate projects. Leju has agreed to adopt Weixin payment solutions as the default payment method for Real Estate O2O E-Commerce transactions conducted by Leju users on Weixin. Leju and Tencent will also explore and pursue additional opportunities for potential cooperation, including but not limited to cooperation involving Tencent’s social communications platform such as Weixin, “QQ” and “mobile QQ”; the social media service, “Tencent Microblog”; the social networking service, “Qzone”; and/or other Tencent internet properties.
“I’m very excited about the strategic partnership between Tencent and Leju,” said Mr. Xin Zhou, E-House’s co-chairman and chief executive officer. “Leju is a leading innovator of real estate O2O e-commerce in China and has achieved strong growth in this sector. Developing and broadening Leju’s mobile platform is an integral part of our growth strategy. Our cooperation with Tencent will extend our consumer reach through Tencent’s powerful Weixin platform and other popular services, opening a key channel to disseminate real estate information and facilitate transactions. This marks a new milestone in our O2O e-commerce and mobile strategy development.”
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 approximately 255 cities. E-House offers a wide range of services to the real estate industry, including online advertising and e-commerce, primary sales agency, secondary brokerage, information and consulting, offline advertising and promotion and real estate investment management services. 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.
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 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 written or oral forward-looking statements in its reports filed or furnished with the U.S. Securities and Exchange Commission, including 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.
For investor and media inquiries please contact:
In China:
Investor Relations
E-House (China) Holdings Limited
Phone: +86 (21) 6133-3937
E-mail: ir@ehousechina.com
Derek Mitchell
Ogilvy Financial, Beijing
Phone: +86 (10) 8520-3073
E-mail: ej@ogilvy.com
In the United States:
Mr. Justin Knapp
Ogilvy Financial, U.S.
Phone: +1 (616) 551-9714
E-mail: ej@ogilvy.com
Exhibit 99.2
E-House Announces Leju’s Plan for Proposed IPO
SHANGHAI, China, March 10, 2014 — E-House (China) Holdings Limited (“E-House”) (NYSE: EJ), a leading real estate services company in China, today announced that Leju Holdings Limited (“Leju”), a wholly owned subsidiary of E-House, has submitted a draft registration statement on Form F-1 in compliance with the U.S. Securities Act of 1933, as amended (the “Securities Act”) to the U.S. Securities and Exchange Commission (the “SEC”) for a proposed initial public offering of Leju and listing of Leju’s American depositary shares representing its ordinary shares on a major stock exchange in the U.S. (the “Proposed IPO”). The Proposed IPO is expected to commence as capital markets conditions permit and is subject to Leju’s public filing of the registration statement with the SEC in compliance with the Securities Act, and the SEC declaring such registration statement effective. The proposed number of American depositary shares to be offered and sold in the Proposed IPO has not yet been determined. E-House may sell a portion of Leju’s shares it owns, but expects to remain Leju’s majority shareholder after the completion of the Proposed IPO.
This announcement is being made pursuant to and in accordance with Rule 135 under the Securities Act. This press release is not intended to, and does not, constitute an offer to sell or a solicitation of an offer to purchase any securities, in the United States or elsewhere, and it is not intended to, and does not, constitute an offer, solicitation or sale of any securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or the selling security holder and that will contain detailed information about the issuer and management, as well as financial statements.
E-House’s Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended. These 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,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “may,” “intend,” “confident,” “is currently reviewing,” “it is possible,” “subject to” and similar statements. E-House may also make written or oral forward-looking statements in its reports filed or furnished with the U.S. Securities and Exchange Commission, including 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. For example, the Proposed IPO may not be consummated. 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, those risks outlined in E-House’s and Leju’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of the issuance, and neither E-House nor Leju assumes any obligation to update the forward-looking statements in this press release and elsewhere except as required under applicable law.
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 approximately 255 cities. E-House offers a wide range of services to the real estate industry, including online advertising and e-commerce, primary sales agency, secondary brokerage, information and consulting, offline advertising and promotion and real estate
investment management services. 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.
For investor and media inquiries, please contact:
In China:
Investor Relations
E-House (China) Holdings Limited
Phone: +86 (21) 6133-3937
E-mail: ir@ehousechina.com
Derek Mitchell
Ogilvy Financial, Beijing
Phone: +86 (10) 8520-3073
E-mail: ej@ogilvy.com
In the United States:
Mr. Justin Knapp
Ogilvy Financial, U.S.
Phone: +1 (616) 551-9714
E-mail: ej@ogilvy.com
Exhibit 99.3
E-House Reports Fourth Quarter and Full Year 2013 Results and Declares Cash Dividend
SHANGHAI, China, March 11, 2013 — 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 full year ended December 31, 2013.
Fourth Quarter 2013 Financial Highlights
· Total revenues increased 67% year-on-year to $255.4 million
· Revenues from real estate online services increased 126% year-on-year to $126.3 million, including $77.5 million in revenues from e-commerce services, representing a year-on-year increase of 552%
· Revenues from primary real estate agency services increased 27% year-on-year to $89.3 million
· Revenues from real estate information and consulting services increased 82% year-on-year to $24.4 million
· Non-GAAP(1) income from operations increased by 408% year-on-year to $48.1 million, from $9.5 million in the fourth quarter of last year
· Non-GAAP net income attributable to E-House shareholders increased 304% year-on-year to $38.3 million, or $0.26 per diluted American depositary share (“ADS”) from $9.5 million, or $0.08 per diluted ADS, in the fourth quarter of last year
Full Year 2013 Financial Highlights
· Total revenues increased 58% year-on-year to $731.1 million
· Revenues from real estate online services increased 98% year-on-year to $335.4 million, including $170.2 million in revenues from e-commerce services, representing a year-on-year increase of 530%
· Revenues from primary real estate agency services increased 40% year-on-year to $269.7 million
· Revenues from real estate information and consulting services increased 41% year-on-year to $76.7 million
· Non-GAAP(1) income from operations was $102.5 million, compared to non-GAAP loss from operations of $12.5 million for the full year of 2012
· Non-GAAP net income attributable to E-House shareholders was $85.4 million, or $0.63 per diluted ADS, compared with non-GAAP net loss attributable to E-House shareholders of $8.4 million, or $0.08 loss per diluted ADS, for the full year of 2012
Xin Zhou, co-chairman and CEO of E-House, said, “2013 was a breakthrough year in which we achieved significant growth in all our major business lines, particularly our e-commerce business. Looking to 2014, we are already off to a great start. Yesterday, we announced a strategic partnership between our online subsidiary, Leju Holdings Limited (“Leju”), and Tencent Holdings Limited (“Tencent”, HKG: 00700). We will leverage Tencent’s powerful Weixin platform and SINA’s Weibo platform, two leading mobile platforms in China, to launch our real estate mobile e-commerce 1.0 product, which will further enhance our competitive advantage in real estate e-commerce sector.”
(1) E-House uses in this press release the following non-GAAP financial measures: (1) income (loss) from operations, (2) net income (loss), (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 and amortization of intangible assets resulting from business acquisitions. 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.
“In addition, while E-House’s existing businesses have continued to grow steadily, we are pursuing new strategic initiatives to establish two new business units to offer financial services and community value-added services, respectively. With these new units, we will begin the process of broadening E-House’s service scope beyond facilitating new home sales and into the areas of serving existing home owners on an ongoing basis. We are excited about the opportunities these new services will bring and believe this will form the remaining links within E-House’s complete real estate services chain, making us a stronger enterprise in the long run and creating new and lasting value for our shareholders.”
Bin Laurence, CFO of E-House, said, “We are proud of the progress E-House made in 2013. We achieved significant growth in revenues and delivered strong profitability in 2013. In addition, we generated strong operating cash flow of over $100 million and enhanced our liquidity so that we are well positioned for continued growth.”
Fourth Quarter 2013 Results
Total revenues were $255.4 million, an increase of 67% from $152.6 million for the same quarter of 2012, driven by revenue increases from all three major business lines, specifically E-House’s real estate online services, real estate brokerage services, and real estate information and consulting services.
Revenues from real estate online services were $126.3 million, an increase of 126% from $56.0 million for the same quarter of 2012, driven by growth in e-commerce revenues, online advertising revenues and listing revenues. Revenues from e-commerce services were $77.5 million, an increase of 552% from $11.9 million for the same quarter of 2012. Revenues from online advertising services were $43.2 million, an increase of 4% from $41.7 million for the same quarter of 2012. Revenues from listing services were $5.6 million, an increase of 132% from $2.4 million for the same quarter of 2012.
Revenues from real estate brokerage services were $92.1 million, an increase of 23% from $74.9 million for the same quarter of 2012. Real estate brokerage services include primary real estate agency services and secondary real estate brokerage services. Revenues from primary real estate agency services were $89.2 million, an increase of 27% from $70.4 million for the same quarter of 2012, driven by a 9% increase in the total GFA of new properties sold and a 24% increase in the total transaction value of new properties sold. (See “Selected Operating Data” below for more details on the total GFA and transaction value of new properties sold.) Revenues from secondary real estate brokerage services were $2.9 million, compared to $4.5 million for the same quarter of 2012. The decrease was mainly due to the reduction in the number of physical brokerage stores compared to the same period last year as the Company shifted its secondary real estate focus from offline to online.
Revenues from real estate information and consulting services were $24.4 million, an increase of 82% compared to $13.4 million for the same quarter of 2012, due mostly to revenue increases in both information and consulting services.
Revenues from other services were $12.6 million, an increase of 52%, from $8.3 million for the same quarter of 2012, due mostly to the revenue increase from promotional events services. Other services included offline real estate advertising services, promotional events services and real estate fund management services.
Cost of revenues was $83.2 million, an increase of 38% from $60.3 million for the same quarter of 2012, primarily due to 1) higher salary expenses for additional sales staff and higher commissions associated with increased revenue from primary real estate agency services, 2) higher salary expenses for additional editorial staff associated with our real estate online services, and 3) higher costs associated with the increased revenues in offline advertising and promotional event services.
Selling, general and administrative (“SG&A”) expenses were $136.3 million, an increase of 43% from $95.3 million in the same quarter of 2012, primarily due to 1) higher marketing and
promotion expenses of real estate online services, 2) higher commission expenses associated with increased revenue from real estate online services, and 3) higher bonus expenses of both primary real estate agency services and real estate online services associated with increased profits.
Income from operations was $38.0 million, compared to loss from operations of $2.6 million for the same quarter of 2012. Non-GAAP income from operations was $48.1 million, an increase of 408% from $9.5 million for the same quarter of 2012.
Net income was $29.9 million, compared to net loss of $5.4 million for the same quarter of 2012. Non-GAAP net income was $36.5 million, an increase of 524% from $5.8 million for the same quarter of 2012.
Net income attributable to E-House shareholders was $31.8 million, or $0.22 per diluted ADS, compared to net loss attributable to E-House shareholders of $1.7 million, or $0.01 loss per diluted ADS, for the same quarter of 2012. Non-GAAP net income attributable to E-House shareholders was $38.3 million or $0.26 per diluted ADS, an increase of 304% from $9.5 million, or $0.08 per diluted ADS, for the same quarter of 2012.
Full Year 2013 Results
Total revenues were $731.1 million, an increase of 58% from $462.4 million for 2012, driven by growth in all of E-House’s major business lines of real estate online services, real estate brokerage services, and real estate information and consulting services.
Revenues from real estate online services were $335.4 million, an increase of 98% from $169.7 million for 2012, driven by growth in e-commerce revenues, online advertising revenues and listing revenues. Revenues from e-commerce services were $170.2 million, an increase of 530% from $27.0 million for 2012. Revenues from online advertising services were $145.4 million, an increase of 6% from $137.2 million for 2012. Revenues from listing services were $19.8 million, an increase of 257% from $5.5 million for 2012.
Revenues from real estate brokerage services were $280.8 million, an increase of 35% from $208.3 million for 2012. Real estate brokerage services include primary real estate agency services and secondary real estate brokerage services. Revenues from primary real estate agency services were $269.6 million, an increase of 40% from $192.7 million for 2012, driven by a 26% increase in the total GFA of new properties sold and a 41% increase in the total transaction value of new properties sold. (See “Selected Operating Data” below for more details on the total GFA and transaction value of new properties sold.) Revenues from secondary real estate brokerage services were $11.2 million, a decrease from $15.6 million for 2012 due to the reduction in the number of physical brokerage stores compared to last year as the company shifted its secondary real estate focus from offline to online.
Revenues from real estate information and consulting services were $76.7 million, an increase of 41% compared to $54.5 million for 2012, contributed by revenue increases from both information and consulting services.
Revenues from other services were $38.2 million, an increase of 28% from $29.9 million for 2012, primarily due to the revenue increase from promotional events services.
Cost of revenues was $274.0 million, an increase of 35% from $203.2 million for 2012, due to 1) higher salary expenses for additional sales staff and higher commissions associated with increased revenue from primary real estate agency services, 2) higher editorial staff salaries and fees paid for content and services associated with our real estate online services, and 3) higher costs associated with the increased revenues in offline advertising and promotional event services.
Selling, general and administrative (“SG&A”) expenses were $400.9 million, an increase of 19% from $336.9 million for 2012, due to 1) higher marketing and promotion expenses of real estate online services, 2) higher commission expenses associated with increased revenue from real
estate online services, and 3) higher bonus expenses of both primary real estate agency services and real estate online services associated with increased profits, partially offset by lower share-based compensation expenses.
Income from operations was $61.0 million, compared to loss from operations of $71.1 million for 2012. Non-GAAP income from operations was $102.5 million, compared to non-GAAP loss from operations of $12.5 million for 2012.
Net income was $51.1 million, compared to net loss of $71.1 million for 2012. Non-GAAP net income was $84.9 million, compared to non-GAAP net loss of $15.7 million for 2012.
Net income attributable to E-House shareholders was $52.0 million, or $0.38 per diluted ADS, compared to net loss attributable to E-House shareholders of $57.0 million, or $0.54 loss per diluted ADS, for 2012. Non-GAAP net income attributable to E-House shareholders was $85.4 million or $0.63 per diluted ADS, compared to non-GAAP net loss attributable to E-House shareholders of $8.4 million, or $0.08 loss per diluted ADS, for 2012.
Cash Flow
As of December 31, 2013, the Company’s cash and cash equivalents balance was $413.3 million. Fourth quarter 2013 net cash generated from operating activities was $113.9 million, mainly attributable to non-GAAP net income of $36.5 million, an increase in income tax payable and other tax payable of $48.2 million, a decrease in customer deposits of $55.6 million, and an increase in accrued payroll and welfare expenses of $35.9 million, partially offset by an increase in properties held for sale of $43.9 million and an increase in accounts receivable of $23.8 million. Net cash used in investing activities was $11.9 million, mainly comprised of $11.3 million paid for exclusive rights with Baidu. Net cash generated from financing activities was $101.1 million, mainly comprised of $130.1 million net proceeds from the issuance of convertible bonds, $8.0 million in proceeds from a non-controlling interest investment, and $7.4 million in proceeds from the exercise of options, partially offset by the payment of a call option of $45.0 million associated with the convertible bond issuance.
Business Outlook
The Company estimates that its fiscal 2014 total revenue will be approximately $880 million to $900 million, which would represent an increase of approximately 20% to 23% from $731.1 million in 2013. This forecast reflects the Company’s current and preliminary view, which is subject to change.
Declaration of Cash Dividend
E-House also announced today that its board of directors has authorized and approved the Company’s payment of a cash dividend of $0.20 per ordinary share ($0.20 per ADS). The cash dividend will be payable on or about May 30, 2014 to shareholders of record as of the close of business on May 2, 2014. Dividends to be paid to the Company’s ADS holders through the depositary bank will be subject to the terms of the deposit agreement, including the fees and expenses payable thereunder.
Change of Board Members
E-House announced today that Messrs. Fan Bao and Yunchang Gu, have resigned from the Company’s Board of Directors (the “Board”) for personal reasons and that Messrs. David Jian Sun, CEO of Home Inns Group (NASDAQ: HMIN), and Winston Jin Li, CFO of Sungy Mobile Limited (NASDAQ: GOMO) will join the Board as independent directors. Mr. Li will replace Mr. Bao as chairman of E-House’s audit committee while Mr. Sun will replace Mr. Gu as chairman of the nominating and corporate governance committee and member of the compensation committee.
Conference Call Information
E-House’s management will host an earnings conference call on March 11, 2014 at 7:30 a.m. U.S. Eastern Time (7:30 p.m. Beijing/Hong Kong time)
Dial-in details for the earnings conference call are as follows:
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U.S./International: |
+1-845-675-0437 |
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Hong Kong: |
+852-2475-0994 |
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Mainland China: |
+86-10-800-819-0121 |
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 March 18, 2014:
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International: |
+1-646-254-3697 |
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Passcode: |
5255330 |
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 approximately 255 cities. E-House offers a wide range of services to the real estate industry, including e-commerce and online advertising, primary sales agency, secondary brokerage, information and consulting, offline advertising and promotion and real estate investment management services. 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.
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 written or oral forward-looking statements in its reports filed or furnished with the U.S. Securities and Exchange Commission, including 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 (loss) from operations, (2) net income (loss), (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 and amortization of intangible assets resulting from business acquisitions. 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 and amortization of intangible assets resulting from business acquisitions, 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 is that share-based compensation expense and amortization of intangible assets resulting from business acquisitions that may continue to exist 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.
For investor and media inquiries please contact:
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In China: |
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Investor Relations |
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E-House (China) Holdings Limited |
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Phone: |
+86 (21) 6133-3937 |
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E-mail: |
ir@ehousechina.com |
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Mr. Derek Mitchell |
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Ogilvy Financial, Beijing |
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Phone: |
+86 (10) 8520-3073 |
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E-mail: |
ej@ogilvy.com |
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In the United States: |
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Mr. Justin Knapp |
| |
|
Ogilvy Financial, U.S. |
| |
|
Phone: |
+1 (616) 551-9714 |
|
|
E-mail: |
ej@ogilvy.com |
|
E-HOUSE (CHINA) HOLDINGS LIMITED
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. dollars)
|
|
|
December 31, |
|
December 31, |
|
|
|
|
2012 |
|
2013 |
|
|
ASSETS |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
210,841 |
|
413,319 |
|
|
Restricted cash |
|
2,749 |
|
2,310 |
|
|
Marketable securities |
|
3,685 |
|
— |
|
|
Customer deposits, net |
|
92,624 |
|
67,602 |
|
|
Short-term Investment |
|
— |
|
1,279 |
|
|
Accounts receivable, net |
|
304,600 |
|
357,442 |
|
|
Advance payment for properties, current |
|
— |
|
60,076 |
|
|
Properties held for sale |
|
612 |
|
15,305 |
|
|
Deferred tax assets, net |
|
41,212 |
|
66,332 |
|
|
Prepaid expenses and other current assets |
|
15,964 |
|
45,277 |
|
|
Amounts due from related parties |
|
319 |
|
1,263 |
|
|
Total current assets |
|
672,606 |
|
1,030,205 |
|
|
Property and equipment, net |
|
41,410 |
|
50,077 |
|
|
Intangible assets, net |
|
175,042 |
|
141,232 |
|
|
Investment in affiliates |
|
34,949 |
|
39,052 |
|
|
Goodwill |
|
49,401 |
|
51,600 |
|
|
Customer deposits, non-current, net |
|
744 |
|
652 |
|
|
Other non-current assets |
|
37,810 |
|
46,051 |
|
|
Total assets |
|
1,011,962 |
|
1,358,869 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable |
|
7,412 |
|
11,265 |
|
|
Accrued payroll and welfare expenses |
|
69,028 |
|
102,632 |
|
|
Income tax payable |
|
56,142 |
|
98,686 |
|
|
Other tax payable |
|
24,864 |
|
40,001 |
|
|
Amounts due to related parties |
|
4,282 |
|
5,536 |
|
|
Advance from property buyers |
|
2,803 |
|
2,453 |
|
|
Deferred revenue |
|
13,601 |
|
24,617 |
|
|
Liability for exclusive rights, current |
|
16,973 |
|
8,968 |
|
|
Other current liabilities |
|
27,178 |
|
62,467 |
|
|
Total current liabilities |
|
222,283 |
|
356,625 |
|
|
Deferred tax liabilities |
|
36,926 |
|
29,901 |
|
|
Liability for exclusive rights, non-current |
|
5,919 |
|
— |
|
|
Convertible bond |
|
— |
|
135,000 |
|
|
Other non-current liabilities |
|
1,720 |
|
1,472 |
|
|
Total liabilities |
|
266,848 |
|
522,998 |
|
|
Equity |
|
|
|
|
|
|
Ordinary shares ($0.001 par value): 1,000,000,000 and 1,000,000,000 shares authorized, 118,242,281 and 137,816,482 shares issued and outstanding, as of December 31, 2012 and December 31, 2013, respectively |
|
118 |
|
138 |
|
|
Additional paid-in capital |
|
853,403 |
|
859,468 |
|
|
Subscription receivables |
|
(12 |
) |
(2,148 |
) |
|
Accumulated deficit |
|
(169,702 |
) |
(107,705 |
) |
|
Accumulated other comprehensive income |
|
55,118 |
|
72,185 |
|
|
Total E-House equity |
|
738,925 |
|
821,938 |
|
|
Non-controlling interests |
|
6,189 |
|
13,933 |
|
|
Total equity |
|
745,114 |
|
835,871 |
|
|
TOTAL LIABILITIES AND EQUITY |
|
1,011,962 |
|
1,358,869 |
|
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 |
|
Year ended |
| ||||
|
|
|
December 31, |
|
December 31, |
| ||||
|
|
|
2012 |
|
2013 |
|
2012 |
|
2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
152,581 |
|
255,376 |
|
462,439 |
|
731,079 |
|
|
Cost of revenues |
|
(60,331 |
) |
(83,243 |
) |
(203,171 |
) |
(274,036 |
) |
|
Selling, general and administrative expenses |
|
(95,322 |
) |
(136,340 |
) |
(336,874 |
) |
(400,947 |
) |
|
Other operating income |
|
443 |
|
2,235 |
|
6,475 |
|
4,918 |
|
|
Income (loss) from operations |
|
(2,629 |
) |
38,028 |
|
(71,131 |
) |
61,014 |
|
|
Interest expenses |
|
— |
|
(193 |
) |
— |
|
(193 |
) |
|
Interest income |
|
221 |
|
594 |
|
1,606 |
|
2,180 |
|
|
Other income (expenses), net |
|
2,031 |
|
(189 |
) |
(732 |
) |
(1,051 |
) |
|
Income (loss) before taxes and equity in affiliates |
|
(377 |
) |
38,240 |
|
(70,257 |
) |
61,950 |
|
|
Income tax expense |
|
(5,326 |
) |
(7,691 |
) |
(1,169 |
) |
(13,678 |
) |
|
Income (loss) before equity in affiliates |
|
(5,703 |
) |
30,549 |
|
(71,426 |
) |
48,272 |
|
|
Income (loss) from equity in affiliates |
|
267 |
|
(668 |
) |
376 |
|
2,814 |
|
|
Net income (loss) |
|
(5,436 |
) |
29,881 |
|
(71,050 |
) |
51,086 |
|
|
Less: net loss attributable to non-controlling interests |
|
(3,754 |
) |
(1,871 |
) |
(14,078 |
) |
(871 |
) |
|
Net income (loss) attributable to E-House shareholders |
|
(1,682 |
) |
31,752 |
|
(56,972 |
) |
51,957 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
(0.01 |
) |
0.23 |
|
(0.54 |
) |
0.40 |
|
|
Diluted |
|
(0.01 |
) |
0.22 |
|
(0.54 |
) |
0.38 |
|
|
Shares used in computation: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
118,201,756 |
|
135,829,362 |
|
106,159,388 |
|
130,163,165 |
|
|
Diluted |
|
118,201,756 |
|
146,664,066 |
|
106,159,388 |
|
135,779,997 |
|
Note 1 The conversion of Renminbi (“RMB”) amounts into USD amounts is based on the rate of USD1 = RMB6.0969 on December 31, 2013 and USD1 = RMB6.1300 for the three months ended December 31, 2013
E-HOUSE (CHINA) HOLDINGS LIMITED
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(In thousands of U.S. dollars)
|
|
|
Three months ended |
|
Year ended |
| ||||
|
|
|
December 31, |
|
December 31, |
| ||||
|
|
|
2012 |
|
2013 |
|
2012 |
|
2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
(5,436 |
) |
29,881 |
|
(71,050 |
) |
51,086 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment |
|
4,573 |
|
5,042 |
|
1,828 |
|
17,533 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income (loss) |
|
(863 |
) |
34,923 |
|
(69,222 |
) |
68,619 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Comprehensive loss attributable to non-controlling interests |
|
(3,605 |
) |
(1,778 |
) |
(14,125 |
) |
(404 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income (loss) attributable to E-House shareholders |
|
2,742 |
|
36,701 |
|
(55,097 |
) |
69,023 |
|
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 |
|
Year ended |
| ||||
|
|
|
December 31, |
|
December 31, |
| ||||
|
|
|
2012 |
|
2013 |
|
2012 |
|
2013 |
|
|
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income (loss) from operations |
|
(2,629 |
) |
38,028 |
|
(71,131 |
) |
61,014 |
|
|
Share-based compensation expense |
|
6,345 |
|
4,383 |
|
35,656 |
|
18,903 |
|
|
Amortization of intangible assets resulting from business acquisitions |
|
5,744 |
|
5,660 |
|
22,956 |
|
22,606 |
|
|
Non-GAAP income (loss) from operations |
|
9,460 |
|
48,071 |
|
(12,519 |
) |
102,523 |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) |
|
(5,436 |
) |
29,881 |
|
(71,050 |
) |
51,086 |
|
|
Share-based compensation expense (net of tax) |
|
6,345 |
|
4,383 |
|
35,656 |
|
18,903 |
|
|
Amortization of intangible assets resulting from business acquisitions (net of tax) |
|
4,939 |
|
2,215 |
|
19,740 |
|
14,924 |
|
|
Non-GAAP net income (loss) |
|
5,848 |
|
36,479 |
|
(15,654 |
) |
84,913 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to E-House Shareholder |
|
(1,682 |
) |
31,752 |
|
(56,972 |
) |
51,957 |
|
|
Share-based compensation expense (net of tax and non-controlling interests) |
|
6,345 |
|
4,383 |
|
32,249 |
|
18,903 |
|
|
Amortization of intangible assets resulting from business acquisitions (net of tax and non-controlling interests) |
|
4,802 |
|
2,117 |
|
16,360 |
|
14,562 |
|
|
Non-GAAP net income (loss) attributable to E-House shareholders |
|
9,465 |
|
38,252 |
|
(8,363 |
) |
85,422 |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) per ADS — basic |
|
(0.01 |
) |
0.23 |
|
(0.54 |
) |
0.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) per ADS — diluted |
|
(0.01 |
) |
0.22 |
|
(0.54 |
) |
0.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income (loss) per ADS — basic |
|
0.08 |
|
0.28 |
|
(0.08 |
) |
0.66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income (loss) per ADS — diluted |
|
0.08 |
|
0.26 |
|
(0.08 |
) |
0.63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in calculating basic GAAP / non-GAAP net income (loss) attributable to shareholders per ADS |
|
118,201,756 |
|
135,829,362 |
|
106,159,388 |
|
130,163,165 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in calculating diluted GAAP net income (loss) attributable to shareholders per ADS |
|
118,201,756 |
|
146,664,066 |
|
106,159,388 |
|
135,779,997 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in calculating diluted non-GAAP net income (loss) attributable to shareholders per ADS |
|
120,231,602 |
|
146,664,066 |
|
106,159,388 |
|
135,779,997 |
|
E-HOUSE (CHINA) HOLDINGS LIMITED
SELECTED OPERATING DATA
|
|
|
Three months ended |
|
Year ended |
| ||||
|
|
|
December 31, |
|
December 31, |
| ||||
|
|
|
2012 |
|
2013 |
|
2012 |
|
2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary real estate agency service |
|
|
|
|
|
|
|
|
|
|
Total Gross Floor Area (“GFA”) of new properties sold (thousands of square meters) |
|
6,474 |
|
7,081 |
|
17,043 |
|
21,504 |
|
|
Total value of new properties sold (millions of RMB) |
|
51,782 |
|
64,312 |
|
139,085 |
|
196,509 |
|
|
Total value of new properties sold (millions of $) |
|
8,289 |
|
10,480 |
|
22,101 |
|
31,747 |
|
Exhibit 99.4
E-House Announces New Strategic Initiatives
Company to launch two new real estate service platforms
SHANGHAI, China, March 11, 2014 — E-House (China) Holdings Limited (“E-House” or the “Company”) (NYSE: EJ), a leading real estate services company in China, today announced two new strategic initiatives that will expand the Company’s services to real estate related financial services and community value-added services.
Mr. Xin Zhou, co-chairman and CEO of E-House, said, “Being the leader and integrator of China’s real estate services has always been E-House’s mission. Over the past ten years, E-House has established three strong platforms in real estate brokerage, information consulting and online/e-commerce services, and has become a market leader in these areas. We have also accumulated valuable resources and expertise in the real estate service sector. Today, with the backdrop of financial reforms and the rapid evolution of the internet and mobile technology, we are leveraging our various resources and existing strengths to launch two new real estate service platforms, specifically a real estate-oriented financial services platform and community value-added services platform, which are consistent with our goal of expanding our real estate services chain and in the spirit of the Company’s motto of ‘let all Chinese live better’”.
To establish the financial services platform, E-House plans to form a joint venture, together with SINA Corporation (“SINA”) (NASDAQ: SINA), Sequoia Capital China and Yunfeng Capital. The joint venture will leverage E-House’s vast home buyer data and SINA’s huge number of high-end online users to launch a series of asset (existing home) backed financial products, bridging individuals who have borrowing needs (borrowers) and those who have investment demands (investors). The real estate financial service joint venture will be an important part of SINA’s overall online financial services platform. E-House and SINA will each have a 42.5% stake in the new joint venture.
E-House also announced today that it plans to form a joint venture with SINA, Focus Media Holding Limited (“Focus Media”), and Shentong Express Co., Ltd (“Shentong Express”) to provide online to offline (“O2O”) community value-added services. The community-focused joint venture, of which E-House will have a 55% stake, will leverage SINA Weibo, WeMeet social network community online accounts and mobile applications to reach consumers in local communities. Together with Focus Media’s leading digital interactive media community networks and Shentong’s logistical capabilities, the new joint venture aims to enable homeowners to find and connect with local service providers best suited to meet their “last mile” needs. In connection with the establishment of this community value-added service joint venture, E-House has signed a strategic cooperation agreement with Shanghai Shangfang Property Management Ltd. (“Shangfang Property Management”) and nine other leading property management companies in Shanghai. The new community value-added service joint venture will target approximately 500
communities currently served by those ten property management companies, reaching nearly one million residents with online to offline services.
Mr. Zhou added, “Through our tireless efforts over many years, E-House now proudly owns three leading, high-quality real estate service platforms in China. We will continue to work hard to enhance these existing platforms. Meanwhile, we believe there are huge market opportunities in real estate financial services and community value added services and believe that through hard work, product innovation and strong execution, we will be able to capture new opportunities, provide better and more comprehensive services to our customers, and make E-House a stronger enterprise while creating new and lasting value for our shareholders.”
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 approximately 255 cities. E-House offers a wide range of services to the real estate industry, including online advertising and e-commerce, primary sales agency, secondary brokerage, information and consulting, offline advertising and promotion and real estate investment management services. 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.
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 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 written or oral forward-looking statements in its reports filed or furnished with the U.S. Securities and Exchange Commission, including 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.
For investor and media inquiries please contact:
In China:
Investor Relations
E-House (China) Holdings Limited
Phone: +86 (21) 6133-3937
E-mail: ir@ehousechina.com
Derek Mitchell
Ogilvy Financial, Beijing
Phone: +86 (10) 8520-3073
E-mail: ej@ogilvy.com
In the United States:
Justin Knapp
Ogilvy Financial, U.S.
Phone: +1 (616) 551-9714
E-mail: ej@ogilvy.com