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 August 2015
Commission File Number: 001-34862
SOUFUN HOLDINGS LIMITED
(Exact name of registrant as specified in its charter)
F9M, Building 5, Zone 4, Hanwei International Plaza
No. 186 South 4th Ring Road
Fengtai District, Beijing 100160
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 þ 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
On August 7, 2015, SouFun Holdings Limited (the “Company”) issued a press release and held a conference call regarding its financial results for the three months ended June 30, 2015. A copy of the press release is furnished as Exhibit 99.1 to this Form 6-K.
This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
The Company made reference to non-GAAP financial information in both the press release and the conference call. A reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures is contained in the attached press release and financial tables.
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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.
| SOUFUN HOLDINGS LIMITED | ||||
| By: | /s/ Vincent Tianquan Mo | |||
| Name: | Vincent Tianquan Mo | |||
| Title: | Executive Chairman | |||
Date: August 10, 2015
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Exhibit Index
Exhibit 99.1 — Press Release
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Exhibit 99.1
News Release
SouFun Announces Second Quarter 2015 Results
BEIJING, China, August 7, 2015 – SouFun Holdings Limited (NYSE: SFUN) (“SouFun”), the leading real estate Internet portal in China, announced today its unaudited financial results for the three months ended June 30, 2015.
Second Quarter 2015 Highlights
| n | Total Revenue increased by 25.4% year-on-year to $210.9 million. Revenue from e-commerce services increased by 119.7% year-on-year to $106.8 million. |
| n | Operating income decreased by 72.7% year-on-year to $22.3 million. Non-GAAP operating income decreased by 71.3% year-on-year to $23.9 million. A description of the adjustments from GAAP to non-GAAP operating income is set forth below. |
| n | Net income attributable to SouFun’s shareholders decreased by 76.3% year-on-year to $16.2 million. |
Fully diluted earnings per ADS decreased by 73.3% year-on-year to $0.04.
| n | Non-GAAP net income attributable to SouFun’s shareholders decreased by 72.8% year-on-year to $19.6 million. |
Non-GAAP fully diluted earnings per ADS decreased by 75% year-on-year to $0.04.
| n | GMV increased by 306.7% from $1.7 billion in the first quarter of 2015 to $6.8 billion in the second quarter. The following table shows GMV by month for the first six months of 2015. |
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GMV: January-June, 2015 (in millions of US dollars)
| January | February | March | April | May | June | |||||||||||||||||||
| New Home * | 340 | 299 | 642 | 794 | 1,131 | 1,516 | ||||||||||||||||||
| Secondary Home | 22 | 41 | 321 | 705 | 1,138 | 1,478 | ||||||||||||||||||
| Secondary home | 20 | 36 | 282 | 637 | 1,002 | 1,324 | ||||||||||||||||||
| Rental | 2 | 5 | 39 | 68 | 136 | 154 | ||||||||||||||||||
| Home furnishing | 1 | 1 | 2 | 5 | 9 | 9 | ||||||||||||||||||
| Total | 363 | 341 | 965 | 1,504 | 2,278 | 3,003 | ||||||||||||||||||
Continued from previous table,
| 2015Q1 | 2015Q2 | Variance | ||||||||||||||
| amount | % | |||||||||||||||
| New Home * | 1,281 | 3,441 | 2,160 | 169 | % | |||||||||||
| Secondary Home | 384 | 3,321 | 2,937 | 765 | % | |||||||||||
| secondary home | 338 | 2,963 | 2,625 | 777 | % | |||||||||||
| rental | 46 | 358 | 312 | 678 | % | |||||||||||
| Home furnishing | 4 | 23 | 19 | 475 | % | |||||||||||
| Total | 1,669 | 6,785 | 5,116 | 307 | % | |||||||||||
* Only including direct sales services.
First Half 2015 Highlights
| n | Total Revenue increased by 15.5% year-on-year to $334.3 million. Revenue from e-commerce services increased by 103.0% year-on-year to $158.4 million. |
| n | Operating income decreased by 77.3% year-on-year to $29.8 million. Non-GAAP operating income decreased by 76.3% year-on-year to $31.8 million. |
| n | Net income attributable to SouFun’s shareholders decreased by 79.7% year-on-year to $22.3 million. |
Fully diluted earnings per ADS decreased by 80.0% year-on-year to $0.05.
| n | Non-GAAP net income attributable to SouFun’s shareholders decreased by 77.4% year-on-year to $27.1 million. |
Non-GAAP fully diluted earnings per ADS decreased by 76.9% year-on-year to $0.06.
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New Development: Private Placement with IDG and Carlyle
The company today entered into memorandums of understanding (“MOUs”) with IDG China Capital Fund III LLP (“IDG”) and Carlyle Group (Carlyle) in which IDG, Carlyle, and the management (mainly founder and CEO Vincent Mo) will invest a total amount no more than US$1 billion (of which 50% will be convertible notes) to purchase the company’s new Class A ordinary shares and convertible notes. Under the MOUs, The subscription price of the new Class A ordinary shares is US$7.45 per current ADS (i.e. US$37.25 per Class A ordinary share), which represents a 3% premium to the volume-weighted average trading price of the ADS for the 20 trading days preceding August 6, 2015 (inclusive, which was US$7.24 per ADS). Holders of the convertible notes will have the right to convert the Notes into Shares at the price per share equal to 122.5% of the per share purchase price of the new Class A ordinary shares in 7 years after the issuance of the Notes. The Notes shall bear an annual interest of 1.5%.
“The Q2 numbers showed that the company is quite on track in its transformation from a pure internet information platform to a more transaction oriented platform across new, resale, rental homes and home furnishing plus financial services among China’s major cities.” said Vincent Mo, Chairman and CEO of Fang.com. “We will continue our efforts in building up transaction teams, adding transaction model to more cities, and speeding up development of our technology platforms and tools to support the transformation. I am confident that with our expected funding from IDG and Carlyle, the company will move more aggressively and make its transformation successful.”
Second Quarter 2015 Results
Revenues
SouFun reported total revenues of $210.9 million for the three months ended June 30, 2015, representing an increase of 25.4% from $168.2 million for the corresponding period in 2014, primarily driven by the growth in e-commerce services, partially offset by the decline in marketing services and listing services.
Revenue from marketing services was $60.6 million for the three months ended June 30, 2015, a decrease of 18.4% from $74.3 million for the corresponding period in 2014, primarily due to less customers in the market.
Revenue from e-commerce services was $106.8 million for the three months ended June 30, 2015, a 119.7% increase from $48.6 million for the same period in 2014, primarily due to the growth of the direct sales services for new homes and the growth of the real estate brokerage services, as well as rapid growth of the home decorating services.
Revenue from listing services was $34.6 million for the three months ended June 30, 2015, a decrease of 16.9% from $41.7 million for the corresponding period in 2014, primarily due to our reduction of unit price per paying subscriber, given that the number of paying subscribers has reached a record high as of Jun 30, 2015.
Revenue from internet financial services was $4.0 million for the three months ended June 30, 2015. SouFun began to offer internet financial services in August 2014.
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Revenue from other value-added services was $4.8 million for the three months ended June 30, 2015, an increase of 35.6% from $3.6 million for the corresponding period in 2014, primarily due to the rapid growth of our research related products.
Cost of Revenue
Cost of revenue was $104.9 million for the three months ended June 30, 2015, an increase of 258.2% from $29.3 million for the corresponding period in 2014. The increase in cost of revenue was mainly attributable to increased staff. In addition, increased e-commerce cost related to the direct sales services and increased decorating cost related to the home decorating services also contributed to the increase in cost of revenues.
Gross margin was 50.2% for the three months ended June 30, 2015, compared to 82.6% for the corresponding period in 2014.
Operating Expenses
Operating expenses were $83.5 million for the three months ended June 30, 2015, an increase of 45.0 % from $57.6 million for the corresponding period in 2014.
Selling expenses were $54.5 million for the three months ended June 30, 2015, an increase of 71.5% from $31.7 million for the corresponding period in 2014, primarily due to increased staff, increased expenses paid to our marketing agents for our SouFun membership services, and increased advertising and promotional expenses.
General and administrative expenses were $29.0 million for the three months ended June 30, 2015, an increase of 12.3% from $25.9 million for the corresponding period in 2014, primarily due to increased staff cost.
Operating Income
Operating income was $22.3 million for the three months ended June 30, 2015, a decrease of 72.7% from $81.7 million for the corresponding period in 2014.
Income Tax Expenses
Income tax expense was $10.2 million for the three months ended June 30, 2015, a 57.4% decrease compared to $23.9 million for the corresponding period in 2014. SouFun’s effective tax rate was 38.6% for the three months ended June 30, 2015, as compared to 26.0% for the same period in 2014. The increase in the effective tax rate was primarily due to the increased penalty and interest accrued for the difference between the income tax for 2014 accrued in 2014 and the amounts actually paid in May 2015 per the tax return.
Net Income and EPS
Net income attributable to SouFun’s shareholders was $16.2 million for the three months ended June 30, 2015, a 76.3% decrease from $68.2 million for the corresponding period in 2014. Fully diluted earnings per ordinary share and per ADS was $0.18 and $0.04, respectively, for the three months ended June 30, 2015, 76.6% and 73.3% decrease from $0.77 and $0.15 for the corresponding period in 2014.
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Adjusted EBITDA
Adjusted EBITDA, defined as non-GAAP net income before income taxes, interest expenses, interest income, depreciation and amortization, was $28.4 million for the three months ended June 30, 2015, a decrease of 67.6% as compared to $87.7 million for the corresponding period in 2014.
Cash
As of June 30, 2015, SouFun had cash, cash equivalents, and short-term investments of $533.6 million, compared to $667.7 million as of March 31, 2015. Cash flow generated from operating activities was $4.1 million for the three months ended June 30, 2015, an 89.8% decrease from $40.1 million for the same period in 2014. The decline in cash flows from operating activities was primarily due to a $52.0 million decrease of net income as compared to the second quarter of 2014.
First Half 2015 Results
Revenues
SouFun reported total revenues of $334.3 million for the first half of 2015, representing an increase of 15.5% from $289.4 million for the corresponding period in 2014, primarily driven by the growth in E-commerce services, partially offset by the decline in marketing services and listing services.
Revenue from marketing services was $101.2 million for the first half of 2015, a decrease of 16.5% from $121.3 million for the corresponding period in 2014.
Revenue from e-commerce services was $158.4 million for the first half of 2015, a 103.0% increase from $78.0 million for the same period in 2014. The growth was primarily a result of the company’s effort in e-commerce expansions in direct sales services, real estate brokerage services and decoration services.
Revenue from listing services was $58.3 million for the first half of 2015, a decrease of 30.5% from $83.8 million for the corresponding period in 2014, primarily due to our reduction of unit price per paying subscriber.
Revenue from internet financial services was $7.6 million for the first half of 2015. SouFun began to offer internet financial services in August 2014.
Revenue from other value-added services was $8.9 million for the first half of 2015, an increase of 43.2% from $6.2 million for the corresponding period in 2014, due primarily to an increase in real estate data related services.
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Cost of Revenue
Cost of revenue was $148.6 million for the first half of 2015, an increase of 174.1 % from $54.2 million for the corresponding period in 2014. The increase in cost of revenue was primarily due to the increase in staff costs and increased e-commerce cost related to the direct sales services.
Gross margin was 55.6% for the first half of 2015, compared to 81.3% for the corresponding period in 2014.
Operating Expenses
Operating expenses were $155.3 million for the first half of 2015, an increase of 48.7 % from $104.5 million for the corresponding period in 2014.
Selling expenses were $102.5 million for the first half of 2015, an increase of 72.9% from $59.3 million for the corresponding period in 2014, primarily due to increased staff, increased expenses paid to our marketing agents for our SouFun membership services, and increased advertising and promotional expenses.
General and administrative expenses were $52.8 million for the first half of 2015, an increase of 17.0% from $45.2 million for the corresponding period in 2014, primarily due to increased staff costs.
Operating Income
Operating income was $29.8 million for the first half of 2015, a decrease of 77.3% from $131.3 million for the corresponding period in 2014.
Income Tax Expenses
Income tax expense was $15.8 million for the first half of 2015, a 59.6% decrease compared to $39.1 million for the corresponding period in 2014. The effective tax rate was 41.5% for the first half of 2015, compared to 26.3% for the corresponding period in 2014. The increase in the effective tax rate was primarily due to the increased penalty and interest accrued for the difference between the income tax for 2014 accrued in 2014 and the amounts actually paid in May 2015 per the tax return.
Net Income and EPS
Net income attributable to SouFun’s shareholders was $22.3 million for the first half of 2015, a decrease of 79.7% from $109.7 million for the corresponding period in 2014. Fully diluted earnings per ADS was $0.05 for the first half of 2015, a 80.0% decrease from $0.25 for the corresponding period in 2014.
Adjusted EBITDA
Adjusted EBITDA, defined as non-GAAP net income before income taxes, interest expenses, interest income, depreciation and amortization, was $39.7 million for the first half of 2015, a decrease of 72.1% as compared to $142.5 million for the corresponding period in 2014.
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Cash
Net cash used in operating activities was $50.7 million for the first half of 2015, as compared to net cash generated from operating activities of $166.3 million for the same period in 2014.
Business Outlook
SouFun adjusts its revenue guidance for 2015 from $808.3 million, representing a year-on-year increase of 15%, to $843.4 million, representing a year-on-year increase of 20%. This forecast reflects SouFun's current and preliminary view, which is subject to change.
Conference Call Information
SouFun's management team will host a conference call on August 7, 2015 at 8:00 AM U.S. EST (8:00 PM Beijing / Hong Kong time). The dial-in details for the live conference call are:
The dial-in details for the live conference call are:
| International Toll: | +65 6713-5090 |
| Local Toll: | |
| United States | +1 845-675-0437/+1 866-519-4004 |
| Hong Kong | +852 3018-6771/800-906-601 |
| Mainland China | +86 400-620-8038 / +86 800-819-0121 |
| Passcode: | SFUN |
A telephone replay of the call will be available after the conclusion of the conference call from 11:00 AM EST on August 7 through 11:59 PM EST August 15, 2015. The dial-in details for the telephone replay are:
| International Toll: | +61 2-8199-0299 |
| Toll-Free: | |
| 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 number: | 2387062 |
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A live and archived webcast of the conference call will be available on SouFun’s website at http://ir.fang.com.
About SouFun
SouFun operates the leading real estate Internet portal in China in terms of the number of page views and visitors to its websites and mobile apps in 2014. Through its websites and mobile apps, SouFun provides marketing, e-commerce, listing, finance and other value-added services for China’s real estate and home-related sectors. SouFun’s Internet portal and mobile apps are highly focused on user experience, and support SouFun’s users in seeking information on the real estate and home-related sectors in China. SouFun currently maintains about 100 offices to focus on local market needs and its websites, mobile apps and database contain real estate related content covering more than 370 cities in China. For more information about SouFun, please visit http://ir.fang.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. Such forward-looking statements include, without limitation, statements regarding the revenue outlook for 2015, the success of various business strategies in the short and long-term, conditions in the PRC real estate market and the success of SouFun’s strategic and operational plans and focus, continued growth of the transactions and ecommerce businesses, the impact of increased expenses, the impact of government policies and China’s real estate and home furnishings market. Statements that are not historical facts, including statements about SouFun’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, the impact of the slowdown in the PRC real estate market on SouFun and the impact on revenues of our existing and new service fees reductions, the ability of SouFun to retain real estate listing agencies as customers during challenging economic periods, the success of SouFun’s new business initiatives, the ability of SouFun to manage its operating expenses, the impact of, measures taken or to be taken by the Chinese government to control real estate growth and prices and other events which could occur in the future, economic challenges in China’s real estate market, the impact of competitive market conditions for our services, our ability to maintain and increase our leadership in China’s home related internet sector, the uncertain regulatory landscape in China, fluctuations in our quarterly operating results, our continued ability to execute business strategies including our SouFun membership services and SouFun Online Shop, our ability to continue to expand in local markets, our reliance on online advertising sales and listing services and transactions for our revenues, any failure to successfully develop and expand our content, service offerings and features, including the success of new features to meet evolving market needs, and the technologies that support them, the quality of the loans we originate and resell and the performance of those loans in the future, our ability to successfully service and process customer loans for our own benefit and for the purchasers of those loans and, should we in the future make acquisitions, any failure to successfully integrate acquired businesses.
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Further information regarding these and other risks and uncertainties is included in our annual report on Form 20-F and other documents we have filed with the U.S. Securities and Exchange Commission. SouFun does not assume any obligation to update any forward-looking statements in this release and elsewhere, which apply only as of the date of this press release.
About Non-GAAP Financial Measures
To supplement SouFun’s consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles (“GAAP”), SouFun uses in this press release the following measures defined as non-GAAP financial measures by the United States Securities and Exchange Commission: (1) non-GAAP operating income, (2) non-GAAP net income and (3) non-GAAP basic and diluted earnings per ordinary share and (4) adjusted EBITDA. The presentation of the non-GAAP financial information 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 “Reconciliation of GAAP and non-GAAP Results” set forth at the end of this press release.
SouFun believes that these non-GAAP financial measures provide meaningful supplemental information to investors regarding its operating performance by excluding share-based compensation expenses and the related tax effects, realized gain on available-for-sale security, interest income and expenses, income tax expenses, and depreciation expense for the three months ended June 30, 2015, which (1) may not be indicative of SouFun’s recurring core business operating results or (2) are not expected to result in future cash payments. These non-GAAP financial measures also facilitate management’s internal comparisons to SouFun’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, interest income and expenses, income tax expenses, and depreciation expenses have been and will continue to be a significant recurring expense that will continue to exist in SouFun’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 directly comparable GAAP financial measures.
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For investor and media inquiries, please contact:
Dr. Hua Lei
Deputy CFO
Phone: +86-10-5631-8661
Email: leihua@soufun.com
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SouFun Holdings Limited
Condensed Consolidated Balance Sheets
(in thousands of U.S. dollars, except share data and per share data )
| ASSETS | June 30, | December 31, | ||||||
| 2015 | 2014 | |||||||
| Current assets: | (Unaudited) | (Audited) | ||||||
| Cash and cash equivalents | 384,277 | 354,760 | ||||||
| Restricted cash, current | 98,075 | 97,988 | ||||||
| Short-term investments | 149,336 | 455,184 | ||||||
| Accounts receivable, net | 89,963 | 49,691 | ||||||
| Funds receivable | 47,877 | 62,163 | ||||||
| Prepayment and other current assets | 38,015 | 30,161 | ||||||
| Customer deposits | 33,618 | 47,312 | ||||||
| Loan receivable, current | 189,719 | 79,641 | ||||||
| Amount due from related parties | 18 | - | ||||||
| Deferred tax assets, current | 4,050 | 2,991 | ||||||
| Total current assets | 1,034,948 | 1,179,891 | ||||||
| Non-current assets: | ||||||||
| Property and equipment, net | 217,802 | 217,105 | ||||||
| Prepaid land lease payments | 830 | - | ||||||
| Loan receivable, non-current | 16,321 | 2,009 | ||||||
| Restricted cash, non-current | 109,592 | 109,495 | ||||||
| Deferred tax assets, non-current | 2,042 | 1,570 | ||||||
| Deposit for non-current assets | 103,681 | 86,515 | ||||||
| Long-term investments | 257,156 | 121,292 | ||||||
| Prepayment for business acquisition | 9,806 | 9,806 | ||||||
| Other non-current assets | 18,316 | 16,556 | ||||||
| Total non-current assets | 735,546 | 564,348 | ||||||
| Total assets | 1,770,494 | 1,744,239 | ||||||
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SouFun Holdings Limited
Condensed Consolidated Balance Sheets
(in thousands of U.S. dollars, except share data and per share data )
| June 30, | December 31, | |||||||
| 2015 | 2014 | |||||||
| (Unaudited) | (Audited) | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Short-term loans | 80,750 | 80,750 | ||||||
| Deferred revenue | 109,569 | 119,042 | ||||||
| Accrued expenses and other liabilities | 285,895 | 221,901 | ||||||
| Income tax payable | 10,262 | 35,394 | ||||||
| Customers’ refundable fees | 77,841 | 42,392 | ||||||
| Amounts due to a related party | - | 660 | ||||||
| Total current liabilities | 564,317 | 500,139 | ||||||
| Non-current liabilities: | ||||||||
| Long-term loans | 100,000 | 100,000 | ||||||
| Convertible senior notes | 400,000 | 400,000 | ||||||
| Deferred tax liabilities, non-current | 114,070 | 111,026 | ||||||
| Other non-current liabilities | 133 | 385 | ||||||
| Total non-current liabilities | 614,203 | 611,411 | ||||||
| Total Liabilities | 1,178,520 | 1,111,550 | ||||||
| Equity: | ||||||||
| Class A ordinary shares, par value Hong Kong Dollar (“HK$”) 1 per share, 600,000,000 shares authorized for Class A and Class B in aggregate, and 58,598,173 shares and 58,364,924 shares issued and outstanding as at June 30, 2015 and December 31, 2014, respectively | 7,525 | 7,495 | ||||||
| Class B ordinary shares, par value HK$1 per share, 600,000,000 shares authorized for Class A and Class B in aggregate, and 24,336,650 shares and 24,336,650 shares issued and outstanding as at June 30, 2015 and December 31, 2014 , respectively | 3,124 | 3,124 | ||||||
| Additional paid-in capital | 105,715 | 101,072 | ||||||
| Accumulated other comprehensive income | 63,966 | 49,566 | ||||||
| Retained earnings | 410,874 | 471,352 | ||||||
| Total SouFun Holdings Limited shareholders' equity | 591,204 | 632,609 | ||||||
| Noncontrolling interests | 770 | 80 | ||||||
| Total equity | 591,974 | 632,689 | ||||||
| TOTAL LIABILITIES AND EQUITY | 1,770,494 | 1,744,239 | ||||||
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SouFun Holdings Limited
Condensed Consolidated Statements of Comprehensive Income
(in thousands of U.S. dollars, except share data and per share data)
| Three months ended | Six months ended | |||||||||||||||
| June 30, | June 30, | June 30, | June 30, | |||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Revenues: | ||||||||||||||||
| Marketing services | 60,600 | 74,303 | 101,223 | 121,286 | ||||||||||||
| E-commerce services | 106,831 | 48,618 | 158,373 | 78,033 | ||||||||||||
| Listing services | 34,612 | 41,674 | 58,255 | 83,819 | ||||||||||||
| Financial services | 4,018 | - | 7,558 | - | ||||||||||||
| Other value-added services | 4,826 | 3,560 | 8,932 | 6,238 | ||||||||||||
| Total revenues | 210,887 | 168,155 | 334,341 | 289,376 | ||||||||||||
| Cost of Revenues: | ||||||||||||||||
| Cost of services | (104,927 | ) | (29,291 | ) | (148,560 | ) | (54,196 | ) | ||||||||
| Total Cost of Revenues | (104,927 | ) | (29,291 | ) | (148,560 | ) | (54,196 | ) | ||||||||
| Gross Profit | 105,960 | 138,864 | 185,781 | 235,180 | ||||||||||||
| Operating expenses and income: | ||||||||||||||||
| Selling expenses | (54,463 | ) | (31,748 | ) | (102,478 | ) | (59,282 | ) | ||||||||
| General and administrative expenses | (29,041 | ) | (25,852 | ) | (52,847 | ) | (45,168 | ) | ||||||||
| Other income | (144 | ) | 472 | (668 | ) | 525 | ||||||||||
| Operating Income | 22,312 | 81,736 | 29,788 | 131,255 | ||||||||||||
| Foreign exchange gain (loss) | 85 | (1 | ) | 71 | (13 | ) | ||||||||||
| Interest income | 6,664 | 12,836 | 14,708 | 24,180 | ||||||||||||
| Interest expense | (4,123 | ) | (4,085 | ) | (8,224 | ) | (9,179 | ) | ||||||||
| Investment income | 315 | - | 315 | - | ||||||||||||
| Government grants | 1,079 | 1,616 | 1,381 | 2,582 | ||||||||||||
| Income before income taxes and noncontrolling interests | 26,332 | 92,102 | 38,039 | 148,825 | ||||||||||||
| Income tax expenses | ||||||||||||||||
| Income tax expenses | (10,172 | ) | (23,901 | ) | (15,794 | ) | (39,102 | ) | ||||||||
| Net income | 16,160 | 68,201 | 22,245 | 109,723 | ||||||||||||
| Net income attributable to noncontrolling interests | (6 | ) | - | (28 | ) | - | ||||||||||
| Net income attributable to SouFun Holdings Limited shareholders | 16,166 | 68,201 | 22,273 | 109,723 | ||||||||||||
| Other comprehensive income, net of tax | ||||||||||||||||
| Foreign currency Translation | 4,548 | (6 | ) | (71 | ) | (7,840 | ) | |||||||||
| Unrealized gain on available-for-sale security | 11,858 | 2,091 | 14,471 | 2,091 | ||||||||||||
| Total other comprehensive income, net of tax | 16,406 | 2,085 | 14,400 | (5,749 | ) | |||||||||||
| Comprehensive income | 32,566 | 70,286 | 36,645 | 103,974 | ||||||||||||
Earnings per share for Class A and Class B ordinary shares | ||||||||||||||||
| Basic | 0.20 | 0.83 | 0.27 | 1.34 | ||||||||||||
| Diluted | 0.18 | 0.77 | 0.25 | 1.24 | ||||||||||||
| Earnings per ADS | ||||||||||||||||
| Basic | 0.04 | 0.17 | 0.05 | 0.27 | ||||||||||||
| Diluted | 0.04 | 0.15 | 0.05 | 0.25 | ||||||||||||
| Weighted average number of Class A and Class B ordinary shares outstanding: | ||||||||||||||||
| Basic | 82,861,457 | 81,917,870 | 82,796,866 | 81,885,231 | ||||||||||||
| Diluted | 88,230,507 | 92,506,249 | 87,866,887 | 92,927,800 | ||||||||||||
| Weighted average number of ADSs outstanding: | ||||||||||||||||
| Basic | 414,307,285 | 409,589,351 | 413,984,330 | 409,426,156 | ||||||||||||
| Diluted | 441,152,535 | 462,531,244 | 439,334,435 | 464,639,001 | ||||||||||||
13
SouFun Holdings Limited
Reconciliation of GAAP and Non-GAAP Results
(in thousands of U.S. dollars, except share data and per share data)
| Three months ended | Six months ended | |||||||||||||||
| June 30, | June 30, | June 30, | June 30, | |||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| GAAP income from operations | 22,312 | 81,736 | 29,788 | 131,255 | ||||||||||||
| Share-based compensation expense | 1,593 | 1,496 | 2,027 | 3,020 | ||||||||||||
| Non-GAAP income from operations | 23,905 | 83,232 | 31,815 | 134,275 | ||||||||||||
| GAAP net income | 16,160 | 68,201 | 22,245 | 109,723 | ||||||||||||
| One-off tax benefit | - | (4,657 | ) | - | (4,657 | ) | ||||||||||
| Withholding tax related to dividends | 2,135 | 7,047 | 3,140 | 11,839 | ||||||||||||
| Investment income | (315 | ) | - | (315 | ) | - | ||||||||||
| Share-based compensation expense | 1,593 | 1,496 | 2,027 | 3,020 | ||||||||||||
| Non-GAAP net income | 19,573 | 72,087 | 27,097 | 119,925 | ||||||||||||
| Net Income attributable to SouFun shareholders | 16,166 | 68,201 | 22,273 | 109,723 | ||||||||||||
| One-off tax benefit | - | (4,657 | ) | - | (4,657 | ) | ||||||||||
| Withholding tax related to dividends | 2,135 | 7,047 | 3,140 | 11,839 | ||||||||||||
| Investment income | (315 | ) | - | (315 | ) | - | ||||||||||
| Share-based compensation expense | 1,593 | 1,496 | 2,027 | 3,020 | ||||||||||||
| Non-GAAP net Income attributable to SouFun Holdings Limited shareholders | 19,579 | 72,087 | 27,125 | 119,925 | ||||||||||||
| GAAP earnings per share for Class A and Class B ordinary shares: | ||||||||||||||||
| Basic | 0.20 | 0.83 | 0.27 | 1.34 | ||||||||||||
| Diluted | 0.18 | 0.77 | 0.25 | 1.24 | ||||||||||||
| GAAP earnings per ADS: | ||||||||||||||||
| Basic | 0.04 | 0.17 | 0.05 | 0.27 | ||||||||||||
| Diluted | 0.04 | 0.15 | 0.05 | 0.25 | ||||||||||||
| Non-GAAP earnings per share for Class A and Class B ordinary shares: | ||||||||||||||||
| Basic | 0.24 | 0.88 | 0.33 | 1.46 | ||||||||||||
| Diluted | 0.22 | 0.78 | 0.31 | 1.29 | ||||||||||||
| Non-GAAP earnings per ADS: | ||||||||||||||||
| Basic | 0.05 | 0.18 | 0.07 | 0.29 | ||||||||||||
| Diluted | 0.04 | 0.16 | 0.06 | 0.26 | ||||||||||||
| Weighted average number of Class A and Class B ordinary shares outstanding: | ||||||||||||||||
| Basic | 82,861,457 | 81,917,870 | 82,796,866 | 81,885,231 | ||||||||||||
| Diluted | 88,230,507 | 92,506,249 | 87,866,887 | 92,927,800 | ||||||||||||
| Weighted average number of ADSs outstanding: | ||||||||||||||||
| Basic | 414,307,285 | 409,589,351 | 413,984,330 | 409,426,156 | ||||||||||||
| Diluted | 441,152,535 | 462,531,244 | 439,334,435 | 464,639,001 | ||||||||||||
14
SouFun Holdings Limited
Reconciliation of Non-GAAP and Adjusted EBITDA
(in thousands of U.S. dollars)
| Three months ended | Six months ended | |||||||||||||||
| June 30, | June 30, | June 30, | June 30, | |||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
Non-GAAP Net income | 19,573 | 72,087 | 27,097 | 119,925 | ||||||||||||
| Add back: | ||||||||||||||||
| Interest expense | 4,123 | 4,085 | 8,224 | 9,179 | ||||||||||||
| Income tax expenses | 8,037 | 21,511 | 12,654 | 31,920 | ||||||||||||
| Depreciation expenses | 3,356 | 2,859 | 6,429 | 5,678 | ||||||||||||
| Subtract: | ||||||||||||||||
| Interest income | (6,664 | ) | (12,836 | ) | (14,708 | ) | (24,180 | ) | ||||||||
| Adjusted EBITDA | 28,425 | 87,706 | 39,696 | 142,522 | ||||||||||||
15