E-House has released its Q1 2015 financial results. Revenue was up 4% year on year to USD 169m for the quarter while the loss from operations was USD 36.6m. USD 93.4m of its revenues came from its 70% stake in Leju Holdings which it spun out in late 2014.
Here is the press release ...
E-House (China) Holdings Limited (EJ), a leading real estate services company in China, has announced its unaudited financial results for the fiscal quarter ended March 31, 2015.
First Quarter 2015 Financial Highlights
Mr. Zhou continued, "We are pleased to see our new business lines continue their rapid development and new business models begin to take shape. Our community value-added services app Shi Hui is now firmly established as a mobile platform that provides mobile marketing solutions to accurately-targeted users. Shi Hui has also started penetrating further into local communities through partnerships with various property management companies. We launched Shi Hui in an additional 30 cities this week, and as a result Shi Hui now covers 40 cities with a user base exceeding 4.5 million people and over 400,000 daily active users.
"We have also seen a number of positive developments in our financial services platform. As part of this platform, E-House currently holds a 33% stake in Jupai Holdings, Ltd. ("Jupai"), a leading third-party wealth management services provider in China. As we announced last month, E-House has entered into a definitive agreement to transfer E-House Capital, our asset management business, into Jupai in exchange for additional equity ownership. Another part of our financial services platform, our P2P real estate financial services website www.fangjs.com, has attracted over 21,000 individual investors with a total capital flow of approximately RMB390 million (approximately $64 million)."
Bin Laurence, E-House's CFO, said, "As expected, the first quarter was a seasonally weak quarter with moderate overall revenue growth for the Company. In addition, due to our previously announced investments in and expansion of new business lines, our profit margin has been negatively impacted in recent quarters. We believe that such investments will add new drivers to the Company's longer term growth, particularly as we start to develop clear business models for these new businesses."
First Quarter 2015 Results
As of March 31, 2015, the Company's cash and cash equivalents balance was $458.9 million.
First quarter 2015 net cash used in operating activities was $120.1 million, mainly attributable to non-GAAP net loss of $21.6 million, an increase in properties held for sale and advance payment for properties to be held for sale of $38.7 million, an increase in customer deposits of $23.4 million, a decrease in payroll and welfare payables of $24.6 million and a decrease in income tax payable of $13.6 million. Net cash used in investing activities was $62.4 million, mainly comprised of a $34.1 million payment for restricted cash as collateral of bank loans, a $24.4 million payment for the purchase of property and equipment and a $4.6 million prepayment for business acquisition. Net cash proceeds provided by financing activities were $11.8 million, mainly comprised of $29.7 million cash received from a long-term loan, partially offset by $12.9 million in dividends paid to shareholders and a $6.1 million payment for the acquisition of the remaining non-controlling interests in the Company's online business made in 2014.
The Company maintains its fiscal year 2015 total revenues guidance of approximately $1.05 billion to $1.10 billion, which would represent an increase of approximately 16% to 22% from $904.5 million in 2014. This forecast reflects the Company's current and preliminary view, which is subject to change.