GlobeNewswire Inc | Aug 10, 2020 04:58AM EDT

August 10, 2020

BEIJING, Aug. 10, 2020 (GLOBE NEWSWIRE) -- China Index Holdings Limited (NASDAQ: CIH), (CIH or the Company), a leading real estate information and analytics service platform provider in China, today announced its unaudited financial results for the second quarter ended June 30, 2020.

Second Quarter 2020 Highlights

-- Total revenues were RMB150.2 million, an increase of 12.1% from RMB134.0 million in the corresponding period of 2019. -- Operating income was RMB68.4 million, an increase of 12.5% from RMB60.8 million in the corresponding period of 2019. -- Net income was RMB62.3 million, an increase of 21.1% from RMB51.4 million in the corresponding period of 2019.

First Half 2020 Highlights

-- Total revenues were RMB283.0 million, an increase of 11.8% from RMB253.1 million in the corresponding period of 2019. -- Operating income was RMB137.9 million, an increase of 11.1% from RMB124.1 million in the corresponding period of 2019. -- Net income was RMB126.2 million, an increase of 20.5% from RMB104.7 million in the corresponding period of 2019.

We are happy to deliver another solid quarter even under pandemic uncertainties, commented Yu Huang, CEO of CIH, We will further increase our investment in R&D to enrich our database and analytics for future growth.

Second Quarter 2020 Financial ResultsRevenues

CIH reported total revenues of RMB150.2 million in the second quarter of 2020, an increase of 12.1% from RMB134.0 million in the corresponding period of 2019.

-- Revenues from information and analytics services (SaaS) were RMB67.6 million in the second quarter of 2020, an increase of 17.8% from RMB57.4 million in the corresponding period of 2019, primarily due to an increase in number of customers. -- Revenues from marketplace services were RMB82.6 million in the second quarter of 2020, an increase of 7.9% from RMB76.6 million in the corresponding period of 2019.

Cost of Revenue

Cost of revenue was RMB23.4 million in the second quarter of 2020, a decrease of 4.8% from RMB24.6 million in the corresponding period of 2019, primarily due to a decrease in campaign cost.

Operating ExpensesOperating expenses were RMB58.4 million in the second quarter of 2020, an increase of 20.2% from RMB48.6 million in the corresponding period of 2019.

-- Selling and marketing expenses were RMB32.3 million in the second quarter of 2020, an increase of 35.1% from RMB23.9 million in the corresponding period of 2019, primarily due to an increase in personnel costs resulting from the growing number of selling and marketing personnel headcount. -- General and administrative expenses were RMB26.1 million in the second quarter of 2020, an increase of 5.7% from RMB24.7 million in the corresponding period of 2019, primarily due to increase in personnel costs of research and development department.

Operating Income

Operating income was RMB68.4 million in the second quarter of 2020, an increase of 12.5% from RMB60.8 million in the corresponding period of 2019.

Income Tax Expenses

Income tax expenses were RMB9.6 million in the second quarter of 2020, an increase of 15.7% from RMB8.3 million in the corresponding period of 2019.

Net Income

Net income was RMB62.3 million in the second quarter of 2020, an increase of 21.1% from RMB51.4 million in the corresponding period of 2019.

First Half 2020 Financial ResultsRevenues

CIH reported total revenues of RMB283.0 million in the first half of 2020, an increase of 11.8% from RMB253.1 million in the corresponding period of 2019.

-- Revenues from information and analytics services (SaaS) were RMB128.9 million in the first half of 2020, an increase of 12.9% from RMB114.2 million in the corresponding period of 2019, primarily due to an increase in number of customers. -- Revenues from marketplace services were RMB154.1 million in the first half of 2020, an increase of 10.9% from RMB138.9 million in the corresponding period of 2019.

Cost of Revenue

Cost of revenue was RMB42.9 million in the first half of 2020, a decrease of 9.5% from RMB47.4 million in the corresponding period of 2019, primarily due to a decrease in campaign cost.

Operating ExpensesOperating expenses were RMB102.2 million in the first half of 2020, an increase of 25.1% from RMB81.7 million in the corresponding period of 2019.

-- Selling and marketing expenses were RMB56.2 million in the first half of 2020, an increase of 24.3% from RMB45.2 million in the corresponding period of 2019, primarily due to an increase in personnel costs resulting from the growing number of selling and marketing personnel headcount. -- General and administrative expenses were RMB46.0 million in the first half of 2020, an increase of 26.4% from RMB36.4 million in the corresponding period of 2019, primarily due to increase in personnel costs of research and development department.

Operating Income

Operating income was RMB137.9 million in the first half of 2020, an increase of 11.1% from RMB124.1 million in the corresponding period of 2019.

Income Tax Expenses

Income tax expenses were RMB20.6 million in the first half of 2020, an increase of 12.0% from RMB18.4 million in the corresponding period of 2019.

Net Income

Net income was RMB126.2 million in the first half of 2020, an increase of 20.5% from RMB104.7 million in the corresponding period of 2019.

Business Outlook

Based on current operations and market conditions, the management believes that the Company will maintain a double-digit growth momentum on its annual revenue for 2020. These estimates represent managements current and preliminary view, which are subject to change.

Conference Call InformationCIHs management team will host a conference call on August 10, 2020 at8:00 AMU.S. ET (8:00 PMBeijing/Hong Kongtime). The dial-in details for the live conference call are:

International Toll: +65 67135600Toll-Free/Local Toll: United States +1 877-440-9253 / +1 631-460-7472Hong Kong +852 800-906-603 / +852 3018-6773Mainland China +86 800-870-0075 / +86 400-120-0948Direct Event Passcode 1578624#

Please register in advance of the conference using the link provided below. Upon registering, you will be provided with participant dial-in numbers, Direct Event passcode (1578624#) and unique registrant ID. Get prompted 10 min prior to the start of the conference. Enter the Direct Event Passcode above (1578624#), and your unique Registrant ID, followed by the pound or hash (#) sign to join the call.

Direct Event online registration: http://apac.directeventreg.com/registration/event/9794027A telephone replay of the call will be available after the conclusion of the conference call from 11:00 AM ET on August 10, 2020 through 09:59 AM ET August 18, 2020. The dial-in details for the telephone replay are:

International Toll: +61 2-8199-0299Toll-Free/Local Toll: United States +1 855-452-5696 / +1 646-254-3697Hong Kong +852 800-963-117 / +852 3051-2780Mainland China +86 400-602-2065 / +86 800-870-0206Conference ID: 9794027

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

About CIH

CIH operates a leading real estate information and analytics service platform in China in terms of geographical coverage and volume of data points. Its services span across database, analytics, promotions and listing services for China's real estate markets. CIH serves a substantial base of real estate participants in China, including real estate developers, brokers and agents, property management companies, financial institutions and individual professionals, with 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 http://ir.chinaindexholdings.com.

Safe Harbor Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.

These forward-looking statements can be identified by terminology such as will, expects, is expected to, anticipates, aim, future, intends, plans, believes, are likely to, estimates, may, should and similar expressions, and include, without limitation, statements regarding CIHs future financial performance, revenue guidance, growth and growth rates and market position. Such statements are based upon managements 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 CIHs 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 CIHs filings with the U.S. Securities and Exchange Commission. CIH does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

CHINA INDEX HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(Amounts in thousands of Renminbi (RMB), except for share data)

As of As of June 30, December 31, 2020 2019 ASSETS Current assets: Cash and cash equivalents 239,378 214,076 Short-term investments 262,085 125,000 Accounts receivable, net of allowance for 22,005 24,243 doubtful accountsPrepaid expenses and other current assets 2,572 4,566 Amounts due from related parties 14,667 4,820 Total current assets 540,707 372,705 Non-current assets: Property and equipment, net 2,360 2,873 Right of use assets 46,982 49,595 Total non-current assets 49,342 52,468 Total assets 590,049 425,173 LIABILITIES AND EQUITY Current liabilities: Accounts payable 5,170 7,844 Income taxes payable 12,055 23,396 Deferred revenue 257,703 203,531 Amount due to a related party 3,946 7,734 Accrued expenses and other liabilities 76,900 84,250 Total current liabilities 355,774 326,755 Non-current liabilities: Long-term lease liabilities 35,638 37,679 Other non-current liabilities 47,101 39,757 Total non-current liabilities 82,739 77,436 Total liabilities 438,513 404,191 Commitments and contingencies - - Equity: Class A ordinary shares, par valueUS$0.001 per share, 1,000,000,000 sharesauthorized for Class A and Class B inaggregate, 72,475,630 shares issued as of 500 500 June 30, 2020 and December 31, 2019;outstanding shares as of June 30, 2020and December 31, 2019: 66,097,800 and65,762,936 Class B ordinary shares, par valueUS$0.001 per share, 1,000,000,000 sharesauthorized for Class A and Class B in 163 163 aggregate, 23,636,706 shares issued andoutstanding as of June 30, 2020 andDecember 31, 2019Treasury shares (44 ) (46 ) Capital deficit ) (135,179 ) (130,814Retained earnings 281,525 155,324 Accumulated other comprehensive income 206 220 Total equity 151,536 20,982 Total liabilities and equity 590,049 425,173

CHINA INDEX HOLDINGS LIMITEDUNAUDITED CONDENSEDCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(Amounts in thousands of RMB, except for per share data)

Three Months Ended Six Months Ended June 30 June 30 2020 2019 2020 2019 Revenues 150,219 133,964 283,014 253,109 Cost of revenues (23,410 ) (24,591 ) (42,911 ) (47,387 ) Gross profit 126,809 109,373 240,103 205,722 Operating expenses:Selling andmarketing (32,302 ) (23,917 ) (56,187 ) (45,223 )expensesGeneral andadministrative (26,143 ) (24,718 ) (46,011 ) (36,427 )expensesOperating income 68,364 60,738 137,905 124,072 Interest income 468 287 860 353 Change in fairvalue of the - (1,539 ) - (1,539 )warrantsGains on sale ofshort-term 2,571 - 4,076 - investmentsGovernment 483 223 3,927 223 grants Income before 71,886 59,709 146,768 123,109 income taxesIncome tax (9,576 ) (8,275 ) (20,567 ) (18,448 )expenses Net income 62,310 51,434 126,201 104,661 Othercomprehensive income (loss)Foreign currencytranslation adjustments, net (5 ) 67 43 of nil income (18 )taxesUnrealizedholding gains onshort-terminvestments netof RMB612 and 2,072 - 3,469 - nil income taxesfor the periodsended June 30,2020 and 2019Less:Reclassificationadjustment forgains onshort-terminvestmentsrealized in net (2,186 ) - (3,465 ) - income, net ofRMB611 and nilincome taxes forthe periodsended June 30,2020 and 2019 Totalcomprehensive 62,191 51,501 126,187 104,704 income Earnings pershare forClass A and Class Bordinaryshares:Basic 0.70 0.58 1.41 1.17 Diluted 0.69 0.57 1.38 1.17 Weightedaveragenumber ofClass A andClass Bordinary shares andordinarysharesequivalentsoutstanding:Basic 89,736,203 89,339,642 89,737,929 89,339,642 Diluted 90,939,356 89,775,907 91,246,792 89,775,907

For investor and media inquiries, please contact:

Ms. Jessie YangInvestor RelationsEmail: CIH-IR@fang.com