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 2020

 

Commission File Number: 001-38917

 

CHINA INDEX HOLDINGS LIMITED

(Exact name of registrant as specified in its charter)

 

Tower A, No. 20 Guogongzhuang Middle Street

Fengtai District, Beijing 100070

The 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

 

 

 


 

SIGNATURES

 

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.

 

 

 

CHINA INDEX HOLDINGS LIMITED

 

 

 

 

Date: March 10, 2020

 

By:

/s/ Yu Huang

 

 

Name:

Yu Huang

 

 

Title:

Chief Executive Officer and President

 

2


 

EXHIBIT INDEX

 

Exhibit No.

 

Description

Exhibit 99.1

 

Press Release dated March 9, 2020

 

3


Exhibit 99.1

 

China Index Holdings Announces Fourth Quarter and Fiscal Year 2019 Unaudited Financial Results

 

BEIJING, March 9, 2020 /GlobeNewswire/ — China Index Holdings Limited (NASDAQ: CIH), (“CIH” or the “Company”), the largest real estate information and analytics service platform provider in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2019.

 

Fourth Quarter 2019 Highlights

 

·                      Total revenues were RMB168.3 million, an increase of 39.1% from RMB121.0 million in the corresponding period of 2018.

 

·                      Operating income was RMB86.8 million, an increase of 68.5% from RMB51.5 million in the corresponding period of 2018.

 

·                      Net income was RMB74.7 million, an increase of 69.4% from RMB44.1 million in the corresponding period of 2018.

 

Fiscal Year 2019 Highlights

 

·                      Total revenues were RMB579.7 million, an increase of 37.7% from RMB421.0 million in 2018.

 

·                      Operating income was RMB287.6 million, an increase of 52.5% from RMB188.6 million in 2018.

 

·                      Net income was RMB245.5 million, an increase of 48.4% from RMB165.4 million in 2018.

 

“Our fourth quarter results reflect CIH’s strong and healthy growth trajectory,” commented Yu Huang, CEO of CIH. “In the fourth quarter, our year-over-year growth of revenue and net income reached 39.1% and 69.4% respectively, solidifying our position as a leader in digitizing China’s property service industry. I look forward to continuing this trend in 2020 with innovative technologies and value creation for our customers as we focus on empowering China’s commercial property market.”

 

Fourth Quarter 2019 Financial Results

 

Revenues

 

CIH reported total revenues of RMB168.3 million in the fourth quarter of 2019, an increase of 39.1% from RMB121.0 million in the corresponding period of 2018.

 

·                  Revenues from information and analytics services (SaaS) were RMB76.8 million in the fourth quarter of 2019, an increase of 34.3% from RMB57.2 million in the corresponding period of 2018, primarily due to an increase in number of customers.

 

·                  Revenues from marketplace services were RMB91.5 million in the fourth quarter of 2019, an increase of 43.4% from RMB63.8 million in the corresponding period of 2018, primarily due to an increase in number of customers.

 


 

Cost of Revenue

 

Cost of revenue was RMB33.9 million in the fourth quarter of 2019, an increase of 44.9% from RMB23.4 million in the corresponding period of 2018, primarily due to an increase in personnel costs to support our business expansion.

 

Operating Expenses

 

Operating Expenses were RMB47.6 million in the fourth quarter of 2019, an increase of 3.3% from RMB46.1 million in the corresponding period of 2018.

 

·                  Selling and marketing expenses were RMB26.4 million in the fourth quarter of 2019, an increase of 18.9% from RMB22.2 million in the corresponding period of 2018, primarily due to an increase in personnel costs resulting from the growing number of selling and marketing personnel headcount.

 

·                  General and administrative expenses were RMB21.2 million in the fourth quarter of 2019, a decrease of 11.3% from RMB23.9 million in the corresponding period of 2018, primarily due to the one-off listing fees of RMB9.2 million in the fourth quarter of 2018.

 

Operating Income

 

Operating Income was RMB86.8 million in the fourth quarter of 2019, an increase of 68.5% from RMB51.5 million in the corresponding period of 2018.

 

Income Tax Expenses

 

Income tax expenses were RMB15.2 million in the fourth quarter of 2019, an increase of 100.0% from RMB7.6 million in the corresponding period of 2018.

 

Net Income

 

Net income was RMB74.7 million in the fourth quarter of 2019, an increase of 69.4% from RMB44.1 million in the corresponding period of 2018.

 


 

Fiscal Year 2019 Financial Results

 

Revenues

 

CIH reported total revenues of RMB579.7 million for 2019, an increase of 37.7% from RMB421.0 million in 2018.

 

·                  Revenues from information and analytics services (SaaS) were RMB268.6 million for 2019, an increase of 30.3% from RMB206.2 million in 2018, primarily due to an increase in number of customers.

 

·                  Revenues from marketplace services were RMB311.1 million for 2019, an increase of 44.8% from RMB214.8 million in 2018, primarily due to an increase in number of customers.

 

Cost of Revenue

 

Cost of revenue was RMB110.5 million for 2019, an increase of 26.0% from RMB87.7 million in 2018, primarily due to an increase in personnel costs to support our business expansion.

 

Operating Expenses

 

Operating Expenses were RMB181.6 million for 2019, an increase of 25.5% from RMB144.7 million in 2018.

 

·                  Selling and marketing expenses were RMB99.0 million for 2019, an increase of 27.4% from RMB77.7 million in 2018, primarily due to an increase in personnel costs resulting from the growing number of selling and marketing personnel headcount.

 

·                  General and administrative expenses were RMB82.6 million for 2019, an increase of 23.3% from RMB67.0 million in 2018, primarily due to an increase in personnel costs to support our business expansion.

 

Operating Income

 

Operating Income was RMB287.6 million for 2019, an increase of 52.5% from RMB188.6 million in 2018.

 

Income Tax Expenses

 

Income tax expenses were RMB44.7 million for 2019, an increase of 49.0% from RMB30.0 million in 2018.

 

Net Income

 

Net income was RMB245.5 million for 2019, an increase of 48.4% from RMB165.4 million in 2018.

 


 

Business Outlook

 

Based on current operations and market conditions, management expect CIH’s total revenue for 2020 to increase approximately 20% year-over-year, which represents management’s current and preliminary view and is to subject to change.

 

Recent Development

 

Amendment to Business Cooperation Agreement with Fang Holdings

 

CIH and Fang Holdings Limited (NYSE: SFUN) (“Fang”) decided to amend the terms of the Business Cooperation Agreement (the “Agreement”) dated May 24, 2019 in relation to CIH’s separation from Fang.

 

Both parties agreed to terminate the income sharing arrangement under the Agreement, where income from listing services was shared based on advertising channels, i.e., Fang’s advertisements on CIH’s commercial real estate channel entitles Fang to receive 15% of the revenues generated by such advertisements, whereas CIH’s advertisements on Fang’s residential real estate channel entitles CIH to receive 15% of the revenues generated by such advertisements. Through this amendment to the Agreement, CIH and Fang will no longer share income based on advertising channels.

 

Conference Call Information

 

CIH’s management team will host a conference call on March 9, 2020 at 8:00 AM U.S. ET (8:00 PM Beijing/Hong Kong time). The dial-in details for the live conference call are:

 

International Toll:

 

+65 67135090

Toll-Free/Local Toll:

 

 

United States

 

+1 866-519-4004 / +1 845-675-0437

Hong Kong

 

+852 800-906-601 / +852 3018-6771

Mainland China

 

+86 800-819-0121 / +86 400-620-8038

 

A telephone replay of the call will be available after the conclusion of the conference call from 11:00 AM ET on March 9, 2020 through 09:59 AM ET March 17, 2020. The dial-in details for the telephone replay are:

 

International Toll:

 

+61 2-8199-0299

Toll-Free/Local Toll:

 

 

United States

 

+1 855-452-5696 / +1 646-254-3697

Hong Kong

 

+852 800-963-117 / +852 3051-2780

Mainland China

 

+86 400-602-2065 / +86 800-870-0205

Conference ID:

 

5142106

 


 

A live and archived webcast of the conference call will be available at http://ir.chinaindexholdings.com.

 

About CIH

 

CIH operates the largest real estate information and analytics service platform in China.1 Its services span across database, analytics, promotions and listing services for China’s real estate markets. CIH serves a substantial base of real estate participants in China, including real estate developers, brokers and agents, property management companies, financial institutions and individual professionals, with an authoritative, 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 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. 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.

 

For investor and media inquiries, please contact:

 

Ms. Jessie Yang

Investor Relations

Email: CIH-IR@fang.com

 


1  In terms of geographical coverage and volume of data points as of December 31, 2018, according to an industry report prepared by Frost & Sullivan in 2019.

 


 

CHINA INDEX HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED AND COMBINED BALANCE SHEETS i

(Amounts in thousands of Renminbi (“RMB”))

 

 

 

As of December 31, 

 

As of December 31,

 

 

 

2019 

 

2018

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

129,913

 

164,202

 

Time deposits

 

209,163

 

 

Accounts receivable, net of allowance for doubtful accounts

 

24,243

 

15,534

 

Prepaid expenses and other current assets

 

4,566

 

693

 

Amount due from related parties

 

4,820

 

1,970

 

Total current assets

 

372,705

 

182,399

 

 

 

 

 

 

 

Non-current assets:

 

 

 

 

 

Property and equipment, net

 

2,873

 

3,932

 

Right of use assets, net

 

49,595

 

 

Total non-current assets

 

52,468

 

3,932

 

 

 

 

 

 

 

Total assets

 

425,173

 

186,331

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ DEFICIT

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

7,844

 

5,184

 

Amounts due to related parties

 

7,734

 

680

 

Deferred revenue

 

203,531

 

143,254

 

Income taxes payable

 

23,396

 

14,480

 

Accrued expenses and other liabilities

 

84,250

 

79,532

 

Total current liabilities

 

326,755

 

243,130

 

 

 

 

 

 

 

Non-current liabilities:

 

 

 

 

 

Long-term lease liability

 

37,679

 

 

Other non-current liabilities

 

39,757

 

15,496

 

Total non-current liabilities

 

77,436

 

15,496

 

 

 

 

 

 

 

Total liabilities

 

404,191

 

258,626

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

Shareholders’ equity / (deficit):

 

 

 

 

 

Class A ordinary shares, par value US$0.001 per share, 1000,000,000 shares authorized for Class A and Class B in aggregate, issued shares as of December 31, 2019 and December 31, 2018: 72,475,630 and nil; outstanding shares as of December 31, 2019, and December 31, 2018: 65,762,936 and nil

 

500

 

 

Class B ordinary shares, par value US$0.001 per share, 1000,000,000 shares authorized for Class A and Class B in aggregate, issued and outstanding as of December 31, 2019 and December 31, 2018: 23,636,706 and nil

 

163

 

 

 

Treasury shares

 

(46

)

 

Additional paid-in capital

 

(132,334

)

 

Retained earnings

 

152,419

 

 

Parent company investment

 

 

(72,522

)

Accumulated other comprehensive income

 

280

 

227

 

Total shareholders’ equity / (deficit)

 

20,982

 

(72,295

)

 

 

 

 

 

 

Total liabilities and shareholders’ equity / (deficit)

 

425,173

 

186,331

 

 


 

CHINA INDEX HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF COMPREHENSIVE INCOME

(Amounts in thousands of RMB)

 

 

 

Three Months Ended
December 31

 

Year Ended
December 31

 

 

 

2019

 

2018

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

168,291

 

120,997

 

579,650

 

421,024

 

Cost of revenues

 

(33,940

)

(23,393

)

(110,492

)

(87,733

)

Gross profit

 

134,351

 

97,604

 

469,158

 

333,291

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Selling and marketing expenses

 

(26,370

)

(22,253

)

(99,020

)

(77,731

)

General and administrative expenses

 

(21,160

)

(23,835

)

(82,615

)

(66,993

)

 

 

 

 

 

 

 

 

 

 

Operating income

 

86,821

 

51,516

 

287,523

 

188,567

 

Interest income

 

1,424

 

13

 

2,914

 

664

 

Change in fair value of warrants

 

1,786

 

 

(1,152

)

 

Gains on sale of available-for-sale investments

 

 

 

 

4,842

 

Government grants

 

17

 

219

 

903

 

1,395

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

90,048

 

51,748

 

290,188

 

195,468

 

Income tax expenses

 

(15,288

)

(7,663

)

(44,737

)

(30,048

)

 

 

 

 

 

 

 

 

 

 

Net income

 

74,760

 

44,085

 

245,451

 

165,420 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income / (loss)

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments, net of nil income taxes

 

81

 

(8

)

53

 

49

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income

 

74,841

 

44,077

 

245,504

 

165,469

 

 

 

 

 

 

 

 

 

 

 

Earnings per share for Class A and Class B ordinary shares:

 

 

 

 

 

 

 

 

 

Basic

 

0.83

 

0.49

 

2.74

 

1.85

 

Diluted

 

0.83

 

0.49

 

2.73

 

1.85

 

Weighted average number of Class A and Class B ordinary shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

89,739,655

 

89,399,642

 

89,607,335

 

89,399,642

 

Diluted

 

90,368,070

 

89,399,642

 

89,925,689

 

89,399,642

 

 


 


i  The financial results prior to the separation of CIH from Fang Holdings Limited (“Fang”) have been prepared on a stand-alone basis and are derived from the consolidated financial results and underlying accounting records of Fang, as the financial results of CIH had been historically included within the consolidated financial results of Fang prior to its separation from Fang, which was completed on June 11, 2019.