Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2013 | |
Document and Entity Information | ' |
Entity Registrant Name | 'E-HOUSE (CHINA) HOLDINGS LTD |
Entity Central Index Key | '0001405658 |
Document Type | '20-F |
Document Period End Date | 31-Dec-13 |
Amendment Flag | 'false |
Current Fiscal Year End Date | '--12-31 |
Entity Well-known Seasoned Issuer | 'Yes |
Entity Voluntary Filers | 'No |
Entity Current Reporting Status | 'Yes |
Entity Filer Category | 'Accelerated Filer |
Entity Common Stock, Shares Outstanding | 142,784,504 |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'FY |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current assets: | ' | ' |
Cash and cash equivalents | $413,319,174 | $210,841,368 |
Restricted cash | 2,310,116 | 2,748,976 |
Marketable securities | ' | 3,685,012 |
Customer deposits, net of allowance for doubtful accounts of $584,280 and $585,955 at December 31, 2012 and 2013, respectively | 67,602,275 | 92,624,149 |
Accounts receivable, net of allowance for doubtful accounts of $35,953,537 and $60,232,453 at December 31, 2012 and 2013, respectively | 357,442,102 | 304,600,710 |
Advance payment for properties to be held for sale, current | 60,076,026 | ' |
Properties held for sale | 15,304,927 | 611,892 |
Short-term Investment | 1,279,340 | ' |
Deferred tax assets | 66,331,906 | 41,212,042 |
Prepaid expenses and other current assets | 44,234,499 | 15,962,657 |
Amounts due from related parties | 1,263,416 | 319,380 |
Total current assets | 1,029,163,781 | 672,606,186 |
Property and equipment, net | 50,076,925 | 41,410,005 |
Intangible assets, net | 141,231,750 | 175,041,367 |
Investment in affiliates | 39,051,743 | 34,948,585 |
Goodwill | 51,600,039 | 49,400,739 |
Customer deposits, non-current | 652,300 | 744,092 |
Other non-current assets | 43,743,560 | 37,810,544 |
TOTAL ASSETS | 1,355,520,098 | 1,011,961,518 |
Current liabilities: | ' | ' |
Accounts payable (including accounts payable of the consolidated VIEs without recourse to E-House of $1,826,257 and $1,505,942 as of December 31, 2012 and 2013, respectively) | 11,264,939 | 7,411,735 |
Accrued payroll and welfare expenses (including accrued payroll and welfare expenses of the consolidated VIEs without recourse to E-House of $18,834,610 and $29,309,329 as of December 31, 2012 and 2013, respectively) | 102,632,157 | 69,027,516 |
Income tax payable (including income tax payable of the consolidated VIEs without recourse to E-House of $16,625,365 and $ 28,793,459 as of December 31, 2012 and 2013, respectively) | 98,685,965 | 56,141,853 |
Other tax payable (including other tax payable of the consolidated VIEs without recourse to E-House of $8,807,339 and $11,188,055 as of December 31, 2012 and 2013, respectively) | 40,000,505 | 24,864,312 |
Amounts due to related parties (including amounts due to related parties of the consolidated VIEs without recourse to E-House of $3,161,687 and $2,383,293 as of December 31, 2012 and 2013, respectively) | 5,535,512 | 4,281,830 |
Advance from property buyers | 2,453,472 | 2,803,382 |
Advance from customers and deferred revenue (including advance from customers and deferred revenue of the consolidated VIEs without recourse to E-House of $2,858,051 and $7,150,344 as of December 31, 2012 and 2013, respectively) | 24,617,144 | 13,601,078 |
Liability for exclusive rights, current (including exclusive rights, current of the consolidated VIEs without recourse to E-House of $16,973,230 and $8,967,972 as of December 31, 2012 and 2013, respectively) | 8,967,972 | 16,973,230 |
Other current liabilities (including other current liabilities of the consolidated VIEs without recourse to E-House of $6,117,223 and $9,917,349 as of December 31, 2012 and 2013, respectively) | 62,466,610 | 27,178,988 |
Total current liabilities | 356,624,276 | 222,283,924 |
Deferred tax liabilities (including deferred tax liabilities, non-current of the consolidated VIEs without recourse to E-House of $67,651 and $655,563 as of December 31, 2012 and 2013, respectively) | 29,900,565 | 36,925,632 |
Liability for exclusive rights, non-current (including liability for exclusive rights, non-current of the consolidated VIEs without recourse to E-House of $5,918,812 and nil as of December 31, 2012 and 2013, respectively) | ' | 5,918,812 |
Convertible senior notes | 131,650,949 | ' |
Other non-current liabilities | 1,473,279 | 1,719,201 |
Total liabilities | 519,649,069 | 266,847,569 |
Commitments and contingencies (Note 19) | ' | ' |
Equity: | ' | ' |
Ordinary shares ($0.001 par value): 1,000,000,000 shares authorized, 118,242,281 and 137,816,482 shares issued and outstanding, as of December 31, 2012 and 2013, respectively | 137,817 | 118,243 |
Additional paid-in capital | 859,467,949 | 841,536,135 |
Accumulated deficit | -107,704,675 | -157,835,168 |
Accumulated other comprehensive income | 72,184,594 | 55,117,955 |
Subscription receivables | -2,147,932 | -11,798 |
Total E-House equity | 821,937,753 | 738,925,367 |
Non-controlling interest | 13,933,276 | 6,188,582 |
Total equity | 835,871,029 | 745,113,949 |
TOTAL LIABILITIES AND EQUITY | $1,355,520,098 | $1,011,961,518 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Customer deposits, allowance for doubtful accounts | $585,955 | $584,280 |
Accounts receivable, allowance for doubtful accounts | 60,232,453 | 35,953,537 |
Accounts payable | 11,264,939 | 7,411,735 |
Accrued payroll and welfare expenses | 102,632,157 | 69,027,516 |
Income tax payable | 98,685,965 | 56,141,853 |
Other tax payable | 40,000,505 | 24,864,312 |
Amounts due to related parties | 5,535,512 | 4,281,830 |
Advance from customers and deferred revenue | 24,617,144 | 13,601,078 |
Liability for exclusive rights, current | 8,967,972 | 16,973,230 |
Other current liabilities | 62,466,610 | 27,178,988 |
Deferred tax liabilities, non-current | 29,900,565 | 36,925,632 |
Liability for exclusive rights, non-current | ' | 5,918,812 |
Ordinary shares, par value (in dollars per share) | $0.00 | $0.00 |
Ordinary shares, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Ordinary shares, shares issued (in shares) | 137,816,482 | 118,242,281 |
Ordinary shares, shares outstanding (in shares) | 137,816,482 | 118,242,281 |
Consolidated VIEs without recourse | ' | ' |
Accounts payable | 1,505,942 | 1,826,257 |
Accrued payroll and welfare expenses | 29,309,329 | 18,834,610 |
Income tax payable | 28,793,459 | 16,625,365 |
Other tax payable | 11,188,055 | 8,807,339 |
Amounts due to related parties | 2,383,293 | 3,161,687 |
Advance from customers and deferred revenue | 7,150,344 | 2,858,051 |
Liability for exclusive rights, current | 8,967,972 | 16,973,230 |
Other current liabilities | 9,917,349 | 6,117,223 |
Deferred tax liabilities, non-current | 655,563 | 67,651 |
Liability for exclusive rights, non-current | $0 | $5,918,812 |
STATEMENTS_OF_OPERATIONS
STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
STATEMENTS OF OPERATIONS | ' | ' | ' |
Total revenues | $731,078,833 | $462,439,368 | $401,624,981 |
Cost of revenues | -274,035,806 | -203,170,685 | -163,044,490 |
Selling, general and administrative expenses | -400,947,001 | -336,873,524 | -286,687,587 |
Goodwill impairment charge | 0 | 0 | -417,822,304 |
Other operating income | 4,917,642 | 6,475,023 | 6,180,360 |
Income (loss) from operations | 61,013,668 | -71,129,818 | -459,749,040 |
Interest expense | -192,566 | ' | ' |
Interest income | 2,179,547 | 1,606,462 | 2,626,919 |
Other loss, net | -1,051,215 | -732,870 | -10,457,211 |
Income (loss) before taxes and equity in affiliates | 61,949,434 | -70,256,226 | -467,579,332 |
Income tax (expense) benefit | -13,676,994 | -1,168,654 | 2,723,930 |
Income (loss) before equity in affiliates | 48,272,440 | -71,424,880 | -464,855,402 |
Income (loss) from equity in affiliates | 2,813,849 | 375,509 | -165,110 |
Net income (loss) | 51,086,289 | -71,049,371 | -465,020,512 |
Less: Net loss attributable to non-controlling interest | -871,136 | -14,077,967 | -194,663,431 |
Net income (loss) attributable to E-House shareholders | $51,957,425 | ($56,971,404) | ($270,357,081) |
Earnings (loss) per share: | ' | ' | ' |
Basic (in dollars per share) | $0.40 | ($0.54) | ($3.39) |
Diluted (in dollars per share) | $0.38 | ($0.54) | ($3.39) |
Shares used in computation: | ' | ' | ' |
Basic (in shares) | 130,163,165 | 106,159,388 | 79,769,823 |
Diluted (in shares) | 135,779,997 | 106,159,388 | 79,769,823 |
STATEMENTS_OF_COMPREHENSIVE_IN
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ' | ' | ' |
Net income (loss) | $51,086,289 | ($71,049,371) | ($465,020,512) |
Other comprehensive income, net of tax of nil: | ' | ' | ' |
Foreign currency translation adjustment | 17,532,967 | 1,828,717 | 24,231,778 |
Comprehensive income (loss) | 68,619,256 | -69,220,654 | -440,788,734 |
Less: Comprehensive loss attributable to non-controlling interests | -404,808 | -14,124,962 | -189,044,147 |
Comprehensive income (loss) attributable to E-House shareholders | $69,024,064 | ($55,095,692) | ($251,744,587) |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | Total | Equity (Deficit) Attributable to E-House | Ordinary Shares | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income | Subscription Receivables | Non-controlling Interest |
Balance at Dec. 31, 2010 | $1,376,639,572 | $901,099,847 | $80,752 | $672,621,384 | $200,822,587 | $27,640,541 | ($65,417) | $475,539,725 |
Balance (in shares) at Dec. 31, 2010 | ' | ' | 80,752,526 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | -465,020,512 | -270,357,081 | ' | ' | -270,357,081 | ' | ' | -194,663,431 |
Foreign currency translation adjustments | 24,231,778 | 18,612,494 | ' | ' | ' | 18,612,494 | ' | 5,619,284 |
Dividends | -20,209,842 | -20,209,842 | ' | ' | -20,209,842 | ' | ' | ' |
Dividends to non-controlling interest | -783,403 | ' | ' | ' | ' | ' | ' | -783,403 |
Share-based compensation | 32,023,557 | 24,360,791 | ' | 24,360,791 | ' | ' | ' | 7,662,766 |
Exercise of share options | 503,046 | 503,046 | 81 | 437,548 | ' | ' | 65,417 | ' |
Exercise of share options (in shares) | ' | ' | 81,495 | ' | ' | ' | ' | ' |
Vesting of the restricted shares | ' | ' | 631 | -631 | ' | ' | ' | ' |
Vesting of the restricted shares (in shares) | ' | ' | 630,603 | ' | ' | ' | ' | ' |
Capital injection and non-controlling interest recognized in connection with business acquisition | 5,844,009 | 1,785,764 | ' | 1,785,764 | ' | ' | ' | 4,058,245 |
Changes in equity ownership on partial disposal of subsidiaries | 514,156 | 278,332 | ' | 278,332 | ' | ' | ' | 235,824 |
Exercise of CRIC share options | 791,139 | -2,218,582 | ' | -2,218,582 | ' | ' | ' | 3,009,721 |
Vesting of CRIC restricted shares | 262,500 | -134,500 | ' | -134,500 | ' | ' | ' | 397,000 |
Disposal of subsidiaries | -493,617 | ' | ' | ' | ' | ' | ' | -493,617 |
Repurchase of CRIC shares | -29,862,792 | -286,912 | ' | -120,820 | -166,092 | ' | ' | -29,575,880 |
Repurchase of shares | -20,071,589 | -20,071,589 | -2,398 | -8,915,855 | -11,153,336 | ' | ' | ' |
Repurchase of shares (in shares) | ' | ' | -2,399,000 | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2011 | 904,368,002 | 633,361,768 | 79,066 | 688,093,431 | -101,063,764 | 46,253,035 | ' | 271,006,234 |
Balance (in shares) at Dec. 31, 2011 | ' | ' | 79,065,624 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | -71,049,371 | -56,971,404 | ' | ' | -56,971,404 | ' | ' | -14,077,967 |
Foreign currency translation adjustments | 1,828,717 | 1,875,712 | ' | ' | ' | 1,875,712 | ' | -46,995 |
Dividends | -11,866,670 | -11,866,670 | ' | -11,866,670 | ' | ' | ' | ' |
Dividends to non-controlling interest | -856,121 | ' | ' | ' | ' | ' | ' | -856,121 |
Share-based compensation | 35,656,525 | 31,900,606 | ' | 31,900,606 | ' | ' | ' | 3,755,919 |
Exercise of share options | 815,522 | 248,118 | 195 | 259,721 | ' | ' | -11,798 | 567,404 |
Exercise of share options (in shares) | ' | ' | 194,721 | ' | ' | ' | ' | ' |
Vesting of the restricted shares | 262,594 | 39,322 | 567 | 38,755 | ' | ' | ' | 223,272 |
Vesting of the restricted shares (in shares) | ' | ' | 567,489 | ' | ' | ' | ' | ' |
Capital injection and non-controlling interest recognized in connection with business acquisition | 291,839 | ' | ' | ' | ' | ' | ' | 291,839 |
Shares issued in connection with the merger of CRIC | 252,106,323 | 252,106,323 | 38,786 | 252,067,537 | ' | ' | ' | ' |
Shares issued in connection with the merger of CRIC (in shares) | ' | ' | 38,785,588 | ' | ' | ' | ' | ' |
Replacement of CRIC share options and restricted shares | 31,897,646 | 31,897,646 | ' | 31,897,646 | ' | ' | ' | ' |
Reversal of ASC 740 uncertain tax position | 200,000 | 200,000 | ' | ' | 200,000 | ' | ' | ' |
Changes in equity ownership on partial disposal of subsidiaries | 157,359 | 175,735 | ' | 175,735 | ' | ' | ' | -18,376 |
Repurchase of shares | -1,569,815 | -1,569,815 | -371 | -1,569,444 | 0 | ' | ' | ' |
Repurchase of shares (in shares) | ' | ' | -371,141 | ' | ' | ' | ' | ' |
Movement arising from merger of CRIC | -397,128,601 | -142,471,974 | ' | -149,461,182 | ' | 6,989,208 | ' | -254,656,627 |
Balance at Dec. 31, 2012 | 745,113,949 | 738,925,367 | 118,243 | 841,536,135 | -157,835,168 | 55,117,955 | -11,798 | 6,188,582 |
Balance (in shares) at Dec. 31, 2012 | ' | ' | 118,242,281 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 51,086,289 | 51,957,425 | ' | ' | 51,957,425 | ' | ' | -871,136 |
Foreign currency translation adjustments | 17,532,967 | 17,066,639 | ' | ' | ' | 17,066,639 | ' | 466,328 |
Dividends | -19,946,745 | -19,946,745 | ' | -19,946,745 | ' | ' | ' | ' |
Dividends to non-controlling interest | -338,941 | ' | ' | ' | ' | ' | ' | -338,941 |
Share-based compensation | 18,903,027 | 18,903,027 | ' | 18,903,027 | ' | ' | ' | ' |
Exercise of share options | 15,329,388 | 15,329,388 | 4,596 | 17,460,926 | ' | ' | -2,136,134 | ' |
Exercise of share options (in shares) | ' | ' | 4,596,761 | ' | ' | ' | ' | ' |
Vesting of the restricted shares | 263,106 | 263,106 | 770 | 262,336 | ' | ' | ' | ' |
Vesting of the restricted shares (in shares) | ' | ' | 769,448 | ' | ' | ' | ' | ' |
Capital injection and non-controlling interest recognized in connection with business acquisition | 8,079,333 | ' | ' | ' | ' | ' | ' | 8,079,333 |
Call option in connection with issuance of convertible senior notes | -44,999,998 | -44,999,998 | ' | -44,999,998 | ' | ' | ' | ' |
New shares issued to management | ' | 62,621,240 | 17,790 | 62,603,450 | ' | ' | ' | ' |
Changes in equity ownership on acquisition of non-controlling interest | ' | -409,110 | ' | -409,110 | ' | ' | ' | 409,110 |
Repurchase of shares | -17,772,586 | -17,772,586 | -3,582 | -15,942,072 | -1,826,932 | ' | ' | ' |
Repurchase of shares (in shares) | ' | ' | -3,582,133 | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2013 | $835,871,029 | $821,937,753 | $137,817 | $859,467,949 | ($107,704,675) | $72,184,594 | ($2,147,932) | $13,933,276 |
Balance (in shares) at Dec. 31, 2013 | ' | ' | 137,816,482 | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Operating activities: | ' | ' | ' |
Net income (loss) | $51,086,289 | ($71,049,371) | ($465,020,512) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' |
Depreciation and amortization | 45,215,493 | 47,386,277 | 35,858,842 |
Unrealized (gain) loss on marketable securities | ' | -804,621 | 8,598,962 |
Realized gain on marketable securities | -234,338 | -734,904 | ' |
(Income) loss from equity in affiliates | -2,813,849 | -375,509 | 165,110 |
Allowance for doubtful accounts | 29,146,892 | 27,958,218 | 9,605,824 |
Share-based compensation | 18,903,027 | 35,656,525 | 32,023,557 |
Amortization of discounts related to liability for exclusive rights | 935,177 | 1,882,804 | 891,441 |
Amortization of debt discount and issuance cost | 37,879 | ' | ' |
Goodwill impairment charge | 0 | 0 | 417,822,304 |
Loss on disposal of subsidiaries | ' | ' | 1,054,348 |
Others | -172,944 | 1,155,317 | 620,084 |
Changes in operating assets and liabilities: | ' | ' | ' |
Restricted cash | 438,860 | -167,175 | 4,403,608 |
Customer deposits | 14,848,744 | -10,479,863 | 10,433,895 |
Accounts receivable | -80,108,256 | -88,257,121 | -75,314,964 |
Marketable securities | 3,916,706 | 5,826,280 | ' |
Amounts due from related parties | -944,036 | 1,181,561 | -227,936 |
Properties held for sale and advance payment for properties to be held for sale | -55,657,811 | 980,571 | 596,251 |
Prepaid expenses and other current assets | -1,573,079 | 4,908,018 | -5,439,775 |
Other non-current assets | -14,399,728 | -4,889,458 | -4,152,077 |
Accounts payable | 3,688,255 | 1,726,897 | -2,462,505 |
Accrued payroll and welfare expenses | 34,489,244 | 18,570,558 | 13,478,032 |
Income tax payable | 43,664,036 | 10,449,070 | 3,454,544 |
Other tax payable | 15,485,548 | 5,612,517 | 4,891,322 |
Amounts due to related parties | -1,243,912 | 2,769,138 | -3,116,871 |
Other current liabilities | 40,174,923 | 3,952,552 | 11,903,950 |
Other non-current liabilities | -245,919 | 203,288 | -8,169 |
Deferred taxes | -30,745,061 | -15,644,865 | -20,039,088 |
Net cash provided by (used in) operating activities | 113,892,140 | -22,183,296 | -19,979,823 |
Investing activities: | ' | ' | ' |
Deposit for and purchase of property and equipment and intangible assets | -32,971,714 | -31,847,330 | -37,280,818 |
Purchase of subsidiaries, net of cash acquired | -5,259,451 | ' | -22,685,735 |
(Deposit) return for acquisition | -15,745,728 | ' | 4,529,880 |
Proceeds from disposal of subsidiaries | ' | ' | 117,457 |
Proceeds from partial disposal of subsidiaries | ' | 157,359 | 514,156 |
Investment in affiliates | -5,766,873 | -2,161,001 | -21,567,027 |
Capital return of investment in affiliates | 6,202,093 | ' | ' |
Proceeds from sale of properties held for sale | ' | ' | 2,149,470 |
Proceeds from disposal of property and equipment | 1,727,724 | 425,432 | 1,626,855 |
Purchase of short-term investment | -1,279,340 | ' | ' |
Net cash used in investing activities | -53,093,289 | -33,425,540 | -72,595,762 |
Financing activities: | ' | ' | ' |
Purchases of shares of CRIC from public | ' | -113,124,632 | ' |
Repurchase of CRIC shares | ' | ' | -29,862,792 |
New shares issued to management | 62,621,240 | ' | ' |
Contribution from non-controlling interest | 8,030,815 | 291,839 | 412,364 |
Proceeds from exercise of options | 15,329,388 | 815,522 | 1,294,185 |
Advance from related parties | 2,760,000 | ' | ' |
Proceeds from issuance of convertible senior notes (net of discount of $3,375,000) | 131,625,000 | ' | ' |
Debt issuance costs | -1,551,570 | ' | ' |
Payment of call option | -44,999,998 | ' | ' |
Repurchase of shares | -17,772,586 | -1,569,815 | -20,071,589 |
Dividends | -19,946,745 | -11,866,670 | -20,209,842 |
Dividends to non-controlling interests shareholders | -338,941 | -319,675 | -783,403 |
Net cash provided by (used in) financing activities | 135,756,603 | -125,773,431 | -69,221,077 |
Effect of exchange rate changes on cash and cash equivalents | 5,922,352 | 218,282 | 9,984,382 |
Net increase (decrease) in cash and cash equivalents | 202,477,806 | -181,163,985 | -151,812,280 |
Cash and cash equivalents at the beginning of the year | 210,841,368 | 392,005,353 | 543,817,633 |
Cash and cash equivalents at the end of the year | 413,319,174 | 210,841,368 | 392,005,353 |
Supplemental disclosure of cash flow information: | ' | ' | ' |
Income taxes paid | 4,986,562 | 6,568,082 | 16,098,204 |
Non-cash investing and financing activities: | ' | ' | ' |
Decrease in amount due to related party due to vesting of restricted shares | -263,106 | -262,594 | -262,500 |
Ordinary shares issued in connection with the merger of CRIC | ' | 38,786 | ' |
Additional paid-in capital recognized in connection with the merger of CRIC | ' | 102,606,355 | ' |
Additional paid-in capital recognized in connection with business acquisition | ' | ' | 1,785,764 |
Non-controlling interest recognized in connection with business acquisition | 48,518 | ' | 3,645,881 |
Non-controlling interest derecognized in connection with the merger of CRIC | ' | 254,656,627 | ' |
Consideration payable for amount recognized in purchase of exclusive rights | 8,967,972 | 22,892,042 | 35,239,205 |
Dividend payable to non-controlling interest | $536,446 | $536,446 | ' |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | Dec. 31, 2013 |
CONSOLIDATED STATEMENTS OF CASH FLOWS | ' |
Discount on issuance of convertible senior notes | $3,375,000 |
Organization_and_Principal_Act
Organization and Principal Activities | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Organization and Principal Activities | ' | |||||||
Organization and Principal Activities | ' | |||||||
1. Organization and Principal Activities | ||||||||
E-House (China) Holdings Limited (the “Company” or “E-House”) was incorporated on August 27, 2004 in the Cayman Islands as an exempted company with limited liability under the Companies Law of the Cayman Islands. The Company, through its subsidiaries and consolidated variable interest entities (“VIEs”), offers a wide range of services to the real estate industry, including online services, primary sales agency, secondary brokerage, information and consulting, promotional events, real estate advertising and real estate fund management services in the People’s Republic of China (“PRC”). The Company, its subsidiaries and consolidated VIEs are collectively referred to as the “Group”. | ||||||||
The Group commenced operations in 2000 through an operating subsidiary, Shanghai Real Estate Sales (Group) Co., Ltd. (“E-House Shanghai”), a company established in the PRC, and its subsidiaries and affiliates. | ||||||||
In October 2009, China Real Estate Information Corporation (‘‘CRIC’’), a subsidiary of E-House, acquired SINA’s 66% interest in COHT and COHT became a wholly-owned subsidiary of CRIC. In April 2012, E-House Holdings acquired all the outstanding shares of CRIC that it did not already own (the ‘‘Merger’’). As a result, CRIC became a wholly-owned subsidiary of E-House Holdings. E-House retained the controlling interest in CRIC before and after the Merger. | ||||||||
The following table lists major subsidiaries and the consolidated VIEs of the Company as of December 31, 2013: | ||||||||
Date of | Place of | Percentage of | ||||||
incorporation | incorporation | Ownership | ||||||
Shanghai Real Estate Sales (Group) Co., Ltd. | 15-Aug-00 | PRC | 100 | % | ||||
Shanghai City Rehouse Real Estate Agency Ltd. | 17-May-02 | PRC | 85 | % | ||||
E-House Real Estate Asset Management Co., Ltd. | 22-Aug-06 | Cayman | 51 | % | ||||
Shanghai CRIC Information Technology Co., Ltd | 3-Jul-06 | PRC | 100 | % | ||||
Leju Holdings Ltd. | 20-Nov-13 | Cayman | 100 | % | ||||
Beijing Yisheng Leju Information Services Co., Ltd. (“Beijing Leju”) | 13-Feb-08 | PRC | VIE | |||||
Shanghai Yi Xin E-Commerce Co., Ltd. (“Shanghai Yi Xin”) | 5-Dec-11 | PRC | VIE | |||||
Beijing Jiajujiu E-Commerce Co., Ltd. (“Beijing Jiajujiu”) | 22-Mar-12 | PRC | VIE | |||||
Shanghai Kushuo Information Technology Co., Ltd. (“Shanghai Kushuo”) | 31-Dec-13 | PRC | VIE |
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Summary of Principal Accounting Policies | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Summary of Principal Accounting Policies | ' | ||||||||||
Summary of Principal Accounting Policies | ' | ||||||||||
2. Summary of Principal Accounting Policies | |||||||||||
(a) Basis of presentation | |||||||||||
The consolidated financial statements are prepared and presented in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). | |||||||||||
(b) Basis of consolidation | |||||||||||
The consolidated financial statements include the financial statements of E-House, its majority owned subsidiaries and its VIEs, Beijing Leju, Shanghai Yi Xin, Beijing Jiajujiu and Shanghai Kushuo. All inter-company transactions and balances have been eliminated in consolidation. | |||||||||||
In 2012, the contractual arrangements among the shareholders of Shanghai Tian Zhuo Advertising Co., Ltd. (“Tian Zhuo”), Tian Zhuo and Shanghai CRIC Information Technology Co., Ltd. (“Shanghai CRIC”) were terminated. Upon the termination, the shareholders of Tian Zhuo transferred all of their equity interests in Tian Zhuo to Beijing Leju to make Tian Zhuo a wholly owned subsidiary of Beijing Leju. In December 2013, Beijing Leju transferred all of its equity interest in Tian Zhuo to Shanghai Kushuo to make Tian Zhuo a wholly owned subsidiary of Shanghai Kushuo. | |||||||||||
The Group evaluates each of its interests in private companies to determine whether or not the investee is a VIE and, if so, whether the Group is the primary beneficiary of such VIE. In determining whether the Group is the primary beneficiary, the Group considers if the Group (1) has power to direct the activities that most significantly affects the economic performance of the VIE, and (2) receives the economic benefits of the VIE that could be significant to the VIE. If deemed the primary beneficiary, the Group consolidates the VIE. | |||||||||||
The VIE arrangements | |||||||||||
PRC regulations currently prohibit or restrict foreign ownership of companies that provide Internet content and advertising services. To comply with these regulations, the Group provides such activities relating to Internet content and advertising services through its VIEs and their subsidiaries. | |||||||||||
To provide the Group effective control over and the ability to receive substantially all of the economic benefits of its VIEs and their subsidiaries, the Company’s subsidiaries Shanghai Yifang Software Co., Ltd. (“Shanghai Yifang”), Shanghai SINA Leju Information Technology Co., Ltd. (“Shanghai SINA Leju”) and Shanghai Yi Yue Information Technology Co. Ltd. (“Shanghai Yi Yue”), and Beijing Maiteng Fengshun Science and Technology Co., Ltd., (“Beijing Maiteng”) (collectively, the “Foreign Owned Subsidiaries”) entered into a series of contractual arrangements with Shanghai Kushuo, Beijing Leju, Shanghai Yi Xin, Beijing Jiajujiu (collectively the “VIEs”) and their respective shareholders, respectively, as summarized below: | |||||||||||
Name of Foreign Owned | The Group’s | ||||||||||
Subsidiaries | Legal Ownership | Name of VIEs | Activities of VIEs | ||||||||
Shanghai Yifang | 100% | Shanghai Kushuo | Operate the real estate offline advertising business | ||||||||
Shanghai SINA Leju | 100% | Beijing Leju | Operate the online advertising and listing business | ||||||||
Shanghai Yi Yue | 100% | Shanghai Yi Xin | Operate the e-commerce business | ||||||||
Beijing Maiteng | 90% | Beijing Jiajujiu | Operate the online home furnishing business | ||||||||
The VIEs hold the requisite licenses and permits necessary to conduct Internet content and advertising services activities relating to real estate projects from which foreign ownership of companies are prohibited or restricted. In addition, the VIEs hold leases and other assets necessary to operate such business and generate substantial of the Group’s online and advertising revenues. | |||||||||||
Agreements that Transfer Economic Benefits of the VIEs to the Group | |||||||||||
Exclusive Consultancy Services/Technical Support Agreement. Pursuant to an exclusive Consultancy services/technical support agreement between the Foreign Owned Subsidiaries and the respective VIEs, the Foreign Owned Subsidiaries provide the respective VIEs with a series of Consultancy services/technical support services and are entitled to receive related fees. The term of this exclusive technical support agreement will expire upon dissolution of the VIEs. Unless expressly provided by this agreement, without prior written consent of the Foreign Owned Subsidiaries, the VIEs may not engage any third party to provide the services offered by the Foreign Owned Subsidiaries under this agreement. | |||||||||||
Agreements that Provide Effective Control over VIEs | |||||||||||
Exclusive Call Option Agreement. Each of shareholders of the VIEs has entered into an exclusive call option agreement with the respective Foreign Owned Subsidiaries. Pursuant to these agreements, each of the shareholders of the VIEs has granted an irrevocable and unconditional option to the respective Foreign Owned Subsidiaries or their designees to acquire all or part of such shareholder’s equity interests in VIEs at its sole discretion, to the extent as permitted by PRC laws and regulations then in effect. The consideration for such acquisition of all equity interests in VIEs will be equal to the registered capital of the VIEs, and if PRC law requires the consideration to be greater than the registered capital, the consideration will be the minimum amount as permitted by PRC law. In addition, the VIEs irrevocably and unconditionally granted respective Foreign Owned Subsidiaries an exclusive option to purchase, to the extent permitted under the PRC law, all or part of the assets of the VIEs. The exercise price for purchasing the assets of the VIEs will be equal to their respective book values, and if PRC law requires the price to be greater than the book value, the price will be the minimum amount as permitted by PRC law. The call option may be exercised by respective Foreign Owned Subsidiaries or their designees. | |||||||||||
Loan Agreement. Under the loan agreement among shareholders of the VIEs and the respective Foreign Owned Subsidiaries, the respective Foreign Owned Subsidiaries granted an interest-free loan to the shareholders of VIE, solely for their purchase of equity interest of the VIEs, investing or operating activities conducted in the VIEs. Each loan agreement has a term of twenty years. | |||||||||||
Shareholder Voting Right Proxy Agreement. Each of shareholders of the VIEs irrevocably grant any person designated by the respective Foreign Owned Subsidiaries the power to exercise all voting rights to which he will be entitled to as shareholder of the VIEs at that time, including the right to declare dividends, appoint and elect board members and senior management members and other voting rights. | |||||||||||
Each shareholder voting right proxy agreement has a term of twenty years, unless it is early terminated by all parties in writing or pursuant to provision of this agreement. The term of the agreement will be automatically extended for one year upon the expiration, if the Foreign Owned Subsidiary gives the other Parties written notice requiring the extension thereof and the same mechanism will apply subsequently upon the expiration of each extended term. | |||||||||||
Equity Pledge Agreement. Each of shareholders of the VIEs has also entered into an equity pledge agreement with the respective Foreign Owned Subsidiaries. Pursuant to which these shareholders pledged their respective equity interest in the VIEs to guarantee the performance of the obligations of the VIEs. The Foreign Owned Subsidiaries, as pledgee, will be entitled to certain rights, including the right to sell the pledged equity interests. Pursuant to the equity pledge agreement, each shareholder of the VIEs cannot transfer, sell, pledge, dispose of or otherwise create any new encumbrance on their respective equity interest in the VIEs without the prior written consent of the respective Foreign Owned Subsidiaries. The equity pledge right enjoyed by the Foreign Owned Subsidiaries will expire when shareholders of the VIEs have fully performed their respective obligations under the above agreements. The equity pledges of the VIEs have been registered with the relevant local branch of the State Administration for Industry and Commerce, or SAIC. | |||||||||||
Risks in relation to the VIE structure | |||||||||||
The Company believes that the Foreign Owned Subsidiaries’ contractual arrangements with the VIEs are in compliance with PRC law and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements and the interests of the shareholders of the VIEs may diverge from that of the Company and that may potentially increase the risk that they would seek to act contrary to the contractual terms, for example by influencing the VIEs not to pay the service fees when required to do so. | |||||||||||
The Company’s ability to control the VIEs also depends on the power of attorney the Foreign Owned Subsidiaries have to vote on all matters requiring shareholder approval in the VIEs. As noted above, the Company believes this power of attorney is legally enforceable but may not be as effective as direct equity ownership. | |||||||||||
In addition, if the legal structure and contractual arrangements were found to be in violation of any existing PRC laws and regulations, the Company may be subject to fines or other actions. The Company does not believe such actions would result in the liquidation or dissolution of the Company, the Foreign Owned Subsidiaries or the VIEs. | |||||||||||
The Group, through its subsidiaries and through the contractual arrangements, has (1) the power to direct the activities of the VIEs that most significantly affect the entity’s economic performance and (2) the right to receive benefits from the VIEs. Accordingly, the Group is the primary beneficiary of the VIEs and has consolidated the financial results of the VIEs. | |||||||||||
The following financial statement amounts and balances of the Group’s VIEs were included in the accompanying consolidated financial statements: | |||||||||||
As of December 31, | |||||||||||
2012 | 2013 | ||||||||||
$ | $ | ||||||||||
Cash and cash equivalents | 54,276,035 | 71,095,466 | |||||||||
Accounts receivable, net of allowance for doubtful accounts | 88,871,824 | 87,835,551 | |||||||||
Other current assets | 22,144,577 | 29,693,275 | |||||||||
Amounts due from related parties | 46,067 | — | |||||||||
Total current assets | 165,338,503 | 188,624,292 | |||||||||
Total non-current assets | 62,413,697 | 49,517,785 | |||||||||
Total assets | 227,752,200 | 238,142,077 | |||||||||
Accounts payable | 1,826,257 | 1,505,942 | |||||||||
Accrued payroll and welfare expenses | 18,834,610 | 29,309,329 | |||||||||
Income tax payable | 16,625,365 | 28,793,459 | |||||||||
Other tax payable | 8,807,339 | 11,188,055 | |||||||||
Amounts due to related parties | 3,161,687 | 2,383,293 | |||||||||
Advance from customers | 2,858,051 | 7,150,344 | |||||||||
Liability for exclusive rights, current | 16,973,230 | 8,967,972 | |||||||||
Other current liabilities | 6,117,223 | 9,917,349 | |||||||||
Total current liabilities | 75,203,762 | 99,215,743 | |||||||||
Deferred tax liabilities, non-current | 67,651 | 655,563 | |||||||||
Liability for exclusive rights, non-current | 5,918,812 | — | |||||||||
Total liabilities | 81,190,225 | 99,871,306 | |||||||||
Years Ended December 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
$ | $ | $ | |||||||||
Total revenues | 120,545,936 | 172,402,066 | 321,004,846 | ||||||||
Cost of revenues | (39,244,543 | ) | (54,276,512 | ) | (59,920,429 | ) | |||||
Net income/(loss) | (4,713,667 | ) | (3,212,138 | ) | 1,503,897 | ||||||
Net cash provided by operating activities | 10,684,846 | 16,020,624 | 72,877,862 | ||||||||
Net cash used in investing activities | (33,554,049 | ) | (17,544,270 | ) | (18,042,241 | ) | |||||
Net cash provided by (used in) financing activities | (3,434,675 | ) | 26,686,813 | (40,248,296 | ) | ||||||
There are no consolidated VIEs’ assets that are collateral for the VIEs’ obligations or are restricted solely to settle the VIEs’ obligations. The Company has not provided any financial support that it was not previously contractually required to provide to the VIEs. | |||||||||||
(c) Use of estimates | |||||||||||
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from such estimates. Significant accounting estimates reflected in the Group’s financial statements include useful lives and valuation of long-lived assets, valuation of goodwill, allowance for doubtful accounts, assumptions related to share-based compensation arrangements, assumptions related to the consolidation of entities in which the Group holds variable interests, fair value of equity investments in funds invested by the Company, valuation allowance on deferred tax assets and estimated selling prices in multiple-deliverable revenue arrangements and assumptions related to the valuation of fair value of Leju’s ordinary shares. | |||||||||||
(d) Fair value of financial instruments | |||||||||||
The Group records certain of its financial assets and liabilities at fair value on a recurring basis. Fair value reflects the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. | |||||||||||
The Group applies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. There are three levels of inputs that may be used to measure fair value: | |||||||||||
Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | |||||||||||
Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. | |||||||||||
Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | |||||||||||
Assets measured at fair value on a recurring basis were comprised of marketable securities. The Group used quoted price in active markets (Level 1 investments) to determine the fair value of marketable securities. | |||||||||||
Asset measured at fair value on a nonrecurring basis includes fair value measurement of the Group’s online reporting unit in goodwill impairment testing (Note 8) based on Level 3 inputs in 2011. The impairment loss based on Level 3 fair value measurements was $417,822,304, recognized as goodwill impairment charge in consolidated statements of operations for the year ended December 31, 2011. There was no asset or liability measured at fair value on a nonrecurring basis in 2012 or 2013. | |||||||||||
The Group’s financial instruments that are not recorded at fair value in the consolidated balance sheets include cash and cash equivalents, restricted cash, accounts receivable, advance from customers, customer deposits, other receivables, accounts payable, other payables, liabilities for exclusive rights, amounts due from/to related parties and convertible senior notes. For financial instruments other than the non-current portion of customer deposit and liabilities for exclusive rights, the carrying value approximates the fair value due to their short-term nature. The fair value of the non-current portion of customer deposits was $694,020 and $614,507 as of December 31, 2012 and 2013, respectively. The fair value of the non-current portion of liabilities for exclusive rights was $5,918,812 and nil as of December 31, 2012 and 2013, respectively. The fair value was estimated using discounted cash flows method by discounting the estimated future collections or payment using the Company’s incremental borrowing rate for an instrument with similar terms on the measurement date. As the future cash flows from collections or payments were management’s best estimates based on information available on the valuation date, which were not observable or cannot be corroborated with market information, the fair value measurements were classified as level 3 measurements. Any change in the estimated timing of cash inflow or outflow would result in a change in the fair value measurement in the same direction. It is not practicable to estimate the fair value of senior convertible notes newly issued in December 2013, as a quoted market price is not available and the Group has not yet obtained or developed the valuation model necessary to estimate fair value as of December 31, 2013. | |||||||||||
(e) Business combinations | |||||||||||
Business combinations are recorded using the purchase method of accounting and, accordingly, the acquired assets and liabilities are recorded at their fair market value at the date of acquisition. Any excess of acquisition cost over the fair value of the acquired assets and liabilities, including identifiable intangible assets, is recorded as goodwill. | |||||||||||
(f) Cash and cash equivalents | |||||||||||
Cash and cash equivalents consist of cash on hand and demand deposits, which are unrestricted as to withdrawal and use, and which have original maturities of three months or less. | |||||||||||
(g) Restricted cash | |||||||||||
The Group provides brokerage service for secondary properties. Upon consent of the property buyers and sellers, the sales proceeds can be paid through the Group’s accounts, which are put into the custody of the designated bank and can only be used as consideration to the property sellers when the transactions are completed. The Group records the proceeds relating to these transactions as restricted cash and other current liabilities. These restricted cash accounts totaled $2,589,880 and $2,146,098 as of December 31, 2012 and 2013, respectively. In connection with certain primary real estate agency agreements, the Group is required by the developers to maintain certain bank deposits under both parties’ custody through the contract periods or until the presale permits are obtained for the underlying projects. These restricted cash accounts were $159,096 and $164,018 as of December 31, 2012 and 2013, respectively. | |||||||||||
(h) Marketable securities | |||||||||||
Marketable securities include securities that are classified as trading securities. Trading securities represent equity securities that are bought and held principally for the purpose of selling them in the near term, and they are reported at fair value, with both unrealized and realized gains and losses reported in other income (loss). The fair value of marketable securities is based upon the quoted price in an active market for identical instruments (Level 1). | |||||||||||
(i) Customer deposits | |||||||||||
The Group provides sales agency services for primary real estate development projects, some of which require the Group to pay an upfront and refundable deposit as demonstration of the Group’s financial strength and commitment to provide high quality service. These deposits are refunded to the Group subject to certain pre-determined criteria at a date specified in the agency contracts. The pre-determined criteria are based on sales progress on a project, which may take into account factors such as gross floor area of properties sold and transaction value. Certain of the Group’s contracts provide that if the group breaches the contract, any corresponding penalties may be deducted from the deposit. Customer deposits are recorded as either current or non-current assets based on the Group’s estimate of the date of refund. | |||||||||||
The Group did not experience any material non-payment in history. In the event that any customer deposit becomes due but is not duly paid by the real estate developers, the Group requires collateral or other security from such developers, including existing properties or a right to properties under construction. In the event of non-payment, the Group would then resell the properties or the right to properties under construction for cash. The collection of these secured customer deposits is dependent on the resale price of the underlying properties, which is subject to the then market conditions. As of December 31, 2012 and 2013, customer deposits included $33,038,106 and nil that were secured by the right to purchase properties at a prescribed price, respectively. | |||||||||||
(j) Accounts receivable | |||||||||||
Accounts receivable, net of allowance for doubtful accounts of $35,953,537 and $60,232,453 at December 31, 2012 and 2013, respectively, consists of following: | |||||||||||
As of December 31, | |||||||||||
2012 | 2013 | ||||||||||
$ | $ | ||||||||||
Unbilled accounts receivable | 246,730,442 | 268,589,167 | |||||||||
Billed accounts receivable | 57,870,268 | 88,852,935 | |||||||||
Total | 304,600,710 | 357,442,102 | |||||||||
Unbilled accounts receivable represents amounts recognized in revenue prior to issuing official tax receipts to customers. The Group regularly reviews the collectability of unbilled accounts receivable in the same method as billed accounts receivable disclosed in Note 2 (y). | |||||||||||
(k) Properties held for sale | |||||||||||
Properties held for sale are stated at the lower of cost or net realizable value. Cost comprises the cost of purchase and, where applicable, direct costs associated with the purchase. Properties held for sales obtained through taking possession of collateral to settle the accounts receivable, are recorded at value of the receivables that are settled. The Group also recognizes acquired properties as properties held for sale when the Group has intent and ability to sell them within one year. The Group evaluates its properties held for sale for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. No impairment was provided for properties held for sale for the years ended December 31, 2011, 2012 and 2013. | |||||||||||
(l) Investment in affiliates | |||||||||||
Affiliated companies are entities over which the Group has significant influence, but which it does not control. The Group generally considers an ownership interest of 20% or higher to represent significant influence. And the Group considers an equity interest of 3% or higher to represent more than minor influence for investments in investment funds. | |||||||||||
Investment funds are subject to Investment Company accounting, and need to apply the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 946, Financial Services - Investment Companies. Accordingly, all investments held by these investment funds are measured at fair value. The difference between fair value and initial cost of investments is reflected as unrealized appreciation/depreciation on investments in the income statement. Investment funds determine the fair value of the investments based on relevant comparable market data such as comparisons of multiples of peer companies, evaluation of financial and operating data, company specific developments, market valuations of comparable companies, and latest transaction price factors (Level 3 inputs). | |||||||||||
Investments in affiliates are accounted for by the equity method of accounting. Under this method, the Group’s share of the post-acquisition profits or losses of affiliated companies is recognized in the income statement and its shares of post-acquisition movements in other comprehensive income are recognized in other comprehensive income. Unrealized gains on transactions between the Group and its affiliated companies are eliminated to the extent of the Group’s interest in the affiliated companies; unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. When the Group’s share of losses in an affiliated company equals or exceeds its interest in the affiliated company, the Group does not recognize further losses, unless the Group has incurred obligations or made payments on behalf of the affiliated company. | |||||||||||
The Group is required to perform an impairment assessment of its investments whenever events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable. An impairment loss is recorded when there has been a loss in value of the investment that is other than temporary. The Group has not recorded any impairment losses in any of the periods reported. As of December 31, 2012 and 2013, the Group determined that no such events were present. | |||||||||||
(m) Property and equipment, net | |||||||||||
Property and equipment is recorded at cost less accumulated depreciation. Depreciation is computed on a straight-line basis over the following estimated useful lives: | |||||||||||
Leasehold improvements | Over the shorter of the lease term or their estimated useful lives | ||||||||||
Buildings | 30 years | ||||||||||
Furniture, fixtures and equipment | 5 years | ||||||||||
Motor vehicles | 5 years | ||||||||||
Gains and losses from the disposal of property and equipment are included in income from operations. | |||||||||||
(n) Intangible assets, net | |||||||||||
Acquired intangible assets mainly consist of license agreements with SINA, a real estate advertising agency agreement with SINA, database license agreement, exclusive rights with Baidu, Inc. (“Baidu”), favorable lease terms, customer relationships, non-compete agreements and trademarks from business combinations and are recorded at fair value on the acquisition date. All intangible assets, with the exception of customer relationships, are amortized ratably over the contract period. Intangible assets resulting out of acquired customer relationships are amortized based on the timing of the revenue expected to be derived from the respective customer. | |||||||||||
(o) Impairment of long-lived assets | |||||||||||
The Group evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When these events occur, the Group measures impairment by comparing the carrying amount of the assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss equal to the excess of the carrying amount over the fair value of the assets. | |||||||||||
(p) Impairment of goodwill and indefinite lived intangible assets | |||||||||||
The Group performs an annual goodwill impairment test comprised of two steps. The first step compares the fair value of each reporting unit to its carrying amount, including goodwill and indefinite lived intangible assets. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill and indefinite lived intangible assets to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. This allocation process is only performed for purposes of evaluating goodwill impairment and does not result in an entry to adjust the value of any assets or liabilities. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. | |||||||||||
Management performs a goodwill impairment test for each of its reporting units as of December 31 of each year or when there is a triggering event causing management to believe it is more likely than not that the carrying amount of goodwill may be impaired. | |||||||||||
Intangible assets with an indefinite life are tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment test consists of a comparison of the fair value of the intangible asset to its carrying amount. If the carrying amount exceeds the fair value, an impairment loss is recognized equal in amount to that excess. | |||||||||||
(q) Income taxes | |||||||||||
Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities, and their reported amounts in the financial statements, net operating loss carry forwards and credits by applying enacted statutory tax rates applicable to future years when the reported amounts of the asset or liability are expected to be recovered or settled, respectively. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on the classification of the related assets and liabilities for financial reporting purposes. | |||||||||||
The Group only recognizes tax benefits related to uncertain tax positions when such positions are more likely than not of being sustained upon examination. For such positions, the amount of tax benefit that the Group recognizes is the largest amount of tax benefit that is more than fifty percent likely of being sustained upon the ultimate settlement of such uncertain position. The Group records interest and penalties as a component of income tax expense. | |||||||||||
(r) Debt issuance costs and debt discounts | |||||||||||
Debt issuance costs and debt discounts are amortized as interest expense, using the effective interest method, through the earlier of the maturity date of the Convertible Senior Notes or the date of conversion, if any. Debt issuance costs are recorded as deferred assets, and debt discounts are recorded as a direct deduction from the face amount of Convertible Senior Notes. | |||||||||||
(s) Share-based compensation | |||||||||||
Share-based compensation cost is measured on the grant date, based on the fair value of the award, and recognized as an expense over the requisite service period. Management has made an estimate of expected forfeitures and recognizes compensation cost only for those equity awards expected to vest. | |||||||||||
(t) Revenue recognition | |||||||||||
The Group recognizes revenue when there is persuasive evidence of an arrangement, service has been rendered, the sales price is fixed or determinable and collectability is reasonably assured. Revenues are recorded, net of sales related taxes. | |||||||||||
Real estate online services | |||||||||||
The Group generates real estate online revenues principally from e-commerce, online advertising, and listing services. | |||||||||||
The Group e-commerce services primarily include discount coupon advertising and online property auctions. The Group also provides property viewing and pre-sale customer support free of charge in connection with the sale of discount coupons and online property auctions. E-commerce revenues are principally generated from selling discount coupons to potential property buyers. Those discount coupons allow buyers to purchase specified properties from real estate developers at discounts greater than the face value of the fees charged by the Group. The discount coupons are refundable to the buyers at any time before they are used to purchase the specified properties. The Group recognizes such e-commerce revenues upon obtaining confirmation letters that prove the use of coupons by property buyers, and when collections are reasonably assured. Revenues are recognized based on the net proceeds received as the Group acts as a marketing agent of the property developer in the transaction. | |||||||||||
Revenue from online advertising services is generated principally from online advertising arrangements, sponsorship arrangements, and to a lesser extent, outsourcing arrangements, and keyword advertising arrangements. Online advertising arrangements allow advertisers to place advertisements on particular areas of the Group’s websites, in particular formats and over particular periods of time. Advertising revenues from online advertising arrangements are recognized ratably over the contract period of display when collectability is reasonably assured. Sponsorship arrangements allow advertisers to sponsor a particular area on the Group’s websites in exchange for a fixed payment over the contract period. Advertising revenues from sponsorship arrangements are recognized ratably over the contract period. The Group also generates online advertising revenues from outsourcing certain regional sites for a fixed period of time to local outsourcing partners, who are responsible for both website operation and related advertising sales. Advertising revenues from hosted websites are recognized ratably over the term of the contract. Keyword advertising revenues are recognized ratably over the contract period when collectability is reasonably assured. | |||||||||||
The Group also provides listing services to real estate brokers. Listing services entitle real estate brokers to post and make changes to information for properties in a particular area on the website for a specified period of time, in exchange for a fixed fee. Listing revenues are recognized ratably over the contract period of display when collectability is reasonably assured. | |||||||||||
Real estate brokerage services | |||||||||||
The Group provides marketing and sales agency services to primary real estate developers. The Group recognizes the commission revenue when a successful sale of property has occurred and upon completing the services required to execute a successful sale without further contingency. A successful sale is defined in each agency contract and is usually achieved after the property buyer has executed the purchase contract, made the required down payment, and the purchase contract has been registered with the relevant government authorities. The Group may also be entitled to earn additional revenue on the agency services if certain sales and other performance targets are achieved, such as average sale price over a pre-determined period. These additional agency service revenues are recognized when the Group has accomplished the required targets. | |||||||||||
The Group provides brokerage service for secondary real estate sale and rental transactions. For secondary real estate brokerage service, the Group recognizes revenue upon execution of a transaction agreement between the buyer/lessee and the seller/lessor for which the Group acts as the broker. | |||||||||||
Real estate consulting and information services | |||||||||||
The Group provides real estate consulting services to customers in relation to land acquisition and project consulting services. Land acquisition consulting services involve advising customers in relation to land acquisition and facilitating the transfer of land development rights. Payment is usually contingent upon the delivery of a final product, such as closing a land acquisition transaction. The Group recognizes revenue under such arrangements upon delivery of the final product, assuming customer acceptance has occurred and the fee is no longer contingent. Project consulting services involve providing consulting services, including project feasibility studies, analysis of the real estate transaction history of nearby development projects, marketing and advertising consulting, and development of comprehensive plans for their development projects. Such arrangements include periodic consulting services arrangements and delivery based consulting services arrangements. Periodic consulting services involve providing consulting services which are tailored to meet the needs of real estate developer clients at various stages of the project development and sales process for a specified period, such as monthly market studies. The contractual period for such arrangements is usually between one and 12 months with revenue being recognized ratably over such period. Delivery based consulting services involve providing consulting services which are tailored to meet the specific need of real estate developer. Payment is usually contingent upon the delivery of a final product, such as providing a market study report. The Group recognizes revenue under such arrangements upon delivery of the final product, assuming customer acceptance has occurred and the fee is no longer contingent. | |||||||||||
The Group sells subscriptions to its proprietary CRIC system for which revenues are recognized ratably over the subscription period, which is usually six to 12 months. The Group also provides data integration services periodically, such as periodic market updates and research analysis that suit the specific needs and requirements of individual clients in addition to access to the CRIC system. The contractual period for such arrangements is usually between three to 12 months with revenue being recognized ratably over such period. | |||||||||||
Other services | |||||||||||
The Group also provides promotional events services, and recognizes revenue when such services are rendered, assuming all other revenue recognition criterion have been met. The Group also generates revenues from advertising sales services by acquiring advertising space and subsequently reselling such space. Revenues under such arrangements are recognized when the related advertisement is placed. The Group recognizes advertising sales revenues on a gross basis because it acts as principal and is the primary obligator in the arrangement. | |||||||||||
The Group also generates revenues from real estate fund management fees, performance fees and allocations. Real estate fund management fees are based upon investment advisory and related agreements and are recognized as earned over the specified contract period. Performance fees and allocations represent the preferential allocations of profits (“carried interest”) that are a component of the Group’s general partnership interests in the real estate funds. The Group is entitled to an additional return from the investment fund in the event investors in the fund achieve cumulative investment returns in excess of a specified amount. The Group records the additional return from these carried interests as revenue at the end of the contract year. | |||||||||||
Multiple element arrangements | |||||||||||
The Group has multiple element arrangements that may include provision of primary real estate services, online advertising, promotional events services, consulting services and/or information services. The Group has determined that each of the deliverables listed above is considered a separate unit of account as each has value to the customer on a standalone basis and has been sold separately on a standalone basis, there is no general right of return on delivered items and the delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the Group. | |||||||||||
The Group allocates arrangement consideration in multiple-deliverable revenue arrangements at the inception of an arrangement to all deliverables based on the relative selling price in accordance with the selling price hierarchy, which includes: (i) vendor-specific objective evidence (“VSOE”) if available; (ii) third-party evidence (“TPE”) if VSOE is not available; and (iii) best estimate of selling price (“BESP”) if neither VSOE nor TPE is available. | |||||||||||
VSOE. The Group determines VSOE based on its historical pricing and discounting practices for the specific service when sold separately. In determining VSOE, the Group requires that a substantial majority of the selling prices for these services fall within a reasonably narrow pricing range. The Group has historically priced its commission rate for the primary real estate services, periodic consulting services, subscription for the CRIC system and online advertising within a narrow range. As a result, the Group has used VSOE to allocate the selling price for these services when elements of a multiple element arrangement. The Group has not historically priced delivery based consulting service and promotional event services within a narrow range, therefore, the Group considers TPE and BESP as discussed below. | |||||||||||
TPE. When VSOE cannot be established for deliverables in multiple element arrangements, the Group applies judgment with respect to whether it can establish a selling price based on TPE. TPE is determined based on competitor prices for similar deliverables when sold separately. Generally, the Group’s marketing strategy differs from that of its peers and its offerings contain a significant level of differentiation such that the comparable pricing of services with similar functionality cannot be obtained. Furthermore, the Group is unable to reliably determine what similar competitor services’ selling prices are on a stand-alone basis. As a result, the Group has not been able to establish selling price based on TPE. | |||||||||||
BESP. When it is unable to establish selling price using VSOE or TPE, the Group uses BESP in its allocation of arrangement consideration. The objective of BESP is to determine the price at which the Group would transact a sale if the service were sold on a stand-alone basis. The Group determines BESP for deliverables by considering multiple factors including, but not limited to, prices it charged for similar offerings, market conditions, specification of the services rendered and pricing practices. The Group has used BESP to allocate the selling price of project-based consulting service and promotional event services under these multiple element arrangement. The process for determining BESP involves management judgment. The Group’s process considers multiple factors that may vary depending upon the unique facts and circumstances related to each deliverable. If the facts and circumstances underlying the factors the Group considers change, or should subsequent facts and circumstances lead the Group to consider additional factors, the Group’s BESP could change in future periods. The Group regularly reviews the evidence of selling price for its services and maintains internal controls over the establishment and updates of these estimates. There were no material changes in estimated selling price for its services during the years ended December 31, 2011, 2012 and 2013, nor does the Group expect a material changes in BESP in the foreseeable future. | |||||||||||
The total amounts of revenue earned by the Group related to agreements that have been accounted for as multiple element arrangements were $72,124,694, $74,042,253, and $71,908,552 in 2011, 2012 and 2013, respectively. | |||||||||||
Deferred revenues are recognized when payments are received in advance of revenue recognition. | |||||||||||
(u) Cost of revenue | |||||||||||
Cost of revenue for the real estate online services segment consists of costs associated with the production of websites, which includes fees paid to third parties for Internet connection, content and services, editorial personnel related costs, amortization of intangible assets, depreciation associated with website production equipment and fees paid to SINA for advertising inventory on non-real estate channels. Cost of revenue for the real estate brokerage services segment includes costs directly related to providing services, which include costs incurred for marketing and sale of primary real estate projects for which the Group acts as the agent, and rental expenses incurred for properties leased by the Group as brokerage stores and sales commission. Cost of revenue of real estate information and consulting services segment primarily consists of sales commission and costs incurred for developing, maintaining and updating the CRIC database system, which includes cost of data purchased or licensed from third-party sources, technical personnel related costs and associated equipment depreciation. Cost of revenue for real estate promotional events and advertising services also consists of fees paid to third parties to acquire advertising space for resale, and salaries of sales and support staff and fees paid to third parties for the services directly related to promotional event services. | |||||||||||
(v) Advertising expenses | |||||||||||
Advertising expenses are charged to the statements of operations in the period incurred. The Group incurred advertising expenses amounting to $31,146,070, $51,936,863 and $100,457,370 for the years ended December 31, 2011, 2012 and 2013, respectively. | |||||||||||
(w) Foreign currency translation | |||||||||||
The functional currency of the Company is the United States dollar (“U.S. dollar”) and is used as the reporting currency of the Group. Monetary assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollar at the rates of exchange ruling at the balance sheet date. Equity accounts are translated at historical exchange rates and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as foreign currency translation adjustment and are shown as a separate component of other comprehensive income in the consolidated statements of changes in equity and comprehensive income. | |||||||||||
The financial records of certain of the Company’s subsidiaries are maintained in local currencies other than the U.S. dollar, such as Renminbi (“RMB”) and Hong Kong dollar (“HKD”), which are their functional currencies. Transactions in other currencies are recorded at the rates of exchange prevailing when the transactions occur. | |||||||||||
The Group recorded an exchange loss of $1,051,883, $379,530 and $862,383 for the years ended December 31, 2011, 2012 and 2013, respectively, as a component of other income (loss), net. | |||||||||||
(x) Government subsidies | |||||||||||
Government subsidies include cash subsidies received by the Company’s subsidiaries in the PRC from local governments. These subsidies are generally provided as incentives for conducting business in certain local districts. Cash subsidies of $6,180,360, $6,475,023 and $4,917,642 were included in other operating income for the years ended December 31, 2011, 2012 and 2013, respectively. Subsidies are recognized when cash is received and when all the conditions for their receipt have been satisfied. | |||||||||||
(y) Concentration of credit risk | |||||||||||
Financial instruments that potentially expose the Group to concentrations of credit risk consist primarily of cash and cash equivalents, accounts receivable and customer deposits. The Group places its cash and cash equivalents with reputable financial institutions. | |||||||||||
The Group regularly reviews the creditworthiness of its customers, and requires collateral or other security from its customers in certain circumstances when accounts receivables become long overdue. The Group establishes an allowance for doubtful accounts and customer deposits primarily based upon factors surrounding the credit risk of specific customers, including creditworthiness of the clients, aging of the receivables and other specific circumstances related to the accounts. | |||||||||||
Movement of the allowance for doubtful accounts for accounts receivable and customer deposits is as follows: | |||||||||||
2011 | 2012 | 2013 | |||||||||
$ | $ | $ | |||||||||
Balance as of January 1 | 18,836,275 | 14,811,322 | 36,537,817 | ||||||||
Provisions for doubtful accounts | 9,513,951 | 27,297,288 | 29,099,216 | ||||||||
Write offs | (14,380,877 | ) | (5,633,500 | ) | (6,298,025 | ) | |||||
Changes due to foreign exchange | 841,973 | 62,707 | 1,479,400 | ||||||||
Balance as of December 31 | 14,811,322 | 36,537,817 | 60,818,408 | ||||||||
The allowance for other receivables was immaterial for all periods presented. | |||||||||||
(z) Earnings per share | |||||||||||
Basic earnings per share are computed by dividing income attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the period. | |||||||||||
Diluted earnings per ordinary share reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares. | |||||||||||
The following table sets forth the computation of basic and diluted income per share for the periods indicated: | |||||||||||
Years Ended December 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
Net income (loss) attributable to E-House ordinary shareholders — basic | $ | (270,357,081 | ) | $ | (56,971,404 | ) | $ | 51,957,425 | |||
Interest of Convertible Senior Notes (including stated interest and amortization of discount and issuance costs) | — | — | $ | 192,566 | |||||||
Net income (loss) attributable to E-House ordinary shareholders — diluted | $ | (270,357,081 | ) | $ | (56,971,404 | ) | $ | 52,149,991 | |||
Weighted average ordinary shares outstanding— basic | 79,769,823 | 106,159,388 | 130,163,165 | ||||||||
Convertible senior notes | — | — | 334,821 | ||||||||
Share options and restricted shares | — | — | 5,282,011 | ||||||||
Weighted average number of ordinary shares outstanding — diluted | 79,769,823 | 106,159,388 | 135,779,997 | ||||||||
Basic earnings (loss) per share | $ | (3.39 | ) | $ | (0.54 | ) | $ | 0.4 | |||
Diluted earnings (loss) per share | $ | (3.39 | ) | $ | (0.54 | ) | $ | 0.38 | |||
Diluted earnings (loss) per share do not include the following instruments as their inclusion would have been anti-dilutive: | |||||||||||
Years Ended December 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
Share options and restricted shares | 3,345,726 | 14,660,788 | — | ||||||||
(aa) Non-controlling interest | |||||||||||
Before the merger of the Company with CRIC, the majority of the Group’s non-controlling interest is attributable to CRIC, which mainly operates the Company’s real estate information and consulting and real estate online services segments. In April 2012, CRIC became a wholly-owned subsidiary of the Company after the Merger. For the years ended December 31, 2011, 2012, $190,696,283 and $13,547,386 of the Group’s consolidated net loss was attributable to CRIC, respectively. | |||||||||||
The following schedule shows the effects of changes in E-House’s ownership interest in CRIC on equity attributable to E-House: | |||||||||||
Years Ended December 31, | |||||||||||
2011 | 2012 | ||||||||||
$ | $ | ||||||||||
Net income (loss) attributable to E-House | (270,357,081 | ) | (56,971,404 | ) | |||||||
Transfers to the non-controlling interest: | |||||||||||
Decrease in E-House’s additional paid-in capital for purchase of 4,206,600, 64,642,647 CRIC common shares for the years ended December 31, 2011, and 2012 respectively | (120,820 | ) | (149,461,182 | ) | |||||||
Decrease in E-House’s additional paid-in capital for the exercise of CRIC’s options and the vesting of CRIC’s restricted shares | (2,353,082 | ) | (332,951 | ) | |||||||
Net transfers to non-controlling interest | (2,473,902 | ) | (149,794,133 | ) | |||||||
Change from net income attributable to E-House and transfers (to) from non-controlling interest | (272,830,983 | ) | (206,765,537 | ) | |||||||
(ab) Comprehensive income | |||||||||||
Comprehensive income includes all changes in equity except those resulting from investments by owners and distributions to owners. For the years presented, total comprehensive income included net income and foreign currency translation adjustments. | |||||||||||
(ac) Recently issued accounting pronouncements | |||||||||||
In March 2013, the FASB issued ASU 2013-05 related to parent’s accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. When a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity, the parent is required to release any related cumulative translation adjustment into net income. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. This ASU is effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. It should be applied prospectively to derecognition events occurring after the effective date. Prior periods should not be adjusted. Early adoption is permitted. If an entity elects to early adopt the amendments, it should apply them as of the beginning of the entity’s fiscal year of adoption. The adoption of the amendments will not have a material impact on the Group’s consolidated financial statements. | |||||||||||
In July 2013, the FASB issued ASU 2013-11 which provides guidance on financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The ASU requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This ASU applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The adoption of the amendments will not have a material impact on the Group’s consolidated financial statements. | |||||||||||
In July 2013, the FASB issued ASU 2013-08 which provides guidance on financial statement presentation to investment companies. The ASU changes the approach to the investment company assessment in Topic 946, clarifies the characteristics of an investment company, and provides comprehensive guidance for assessing whether an entity is an investment company; it requires an investment company to measure noncontrolling ownership interests in other investment companies at fair value rather than using the equity method of accounting; and it also requires the following additional disclosure: (a) the fact that the entity is an investment company and is applying the guidance in Topic 946, (b) information about changes, if any, in an entity’s status as an investment company, and (c) information about financial support provided or contractually required to be provided by an investment company to any of its investees. The ASU amendments to the investment company assessment primarily affect entities currently within the scope of Topic 946 that will no longer be investment companies as a result of the amendments. Entities that adopted SOP 07-1 before the FASB’s indefinite deferral of that SOP also must assess whether they continue to be within the scope of Topic 946 by determining whether they are investment companies as a result of the amendments to the investment company assessment. Also, entities that are currently not within the scope of Topic 946 may be investment companies as a result of the amendments. The measurement and disclosure amendments to Topic 946 affect all entities that are investment companies. The ASU also decides not to address issues related to the applicability of investment company accounting for real estate entities and the measurement of real estate investment at this time. As such, the ASU does not intend for the amendments to change practice for real estate entities for which it is industry practice to issue financial statements using the measurement principles in Topic 946. The adoption of the amendments will not have a material impact on the Group’s consolidated financial statements. |
Properties_Held_for_Sale
Properties Held for Sale | 12 Months Ended |
Dec. 31, 2013 | |
Properties Held for Sale | ' |
Properties Held for Sale | ' |
3. Properties Held for Sale | |
In 2011, 2012 and 2013, customers transferred legal ownership of five, six and 14 properties including 5 car-parking spaces to the Group to settle $1,479,405, $970,625 and $6,678,302 in accounts receivable, respectively. Customers also transferred legal ownership of nil, nil and 36 properties to the Group to settle $9,928,558 in customer deposit. The Group recorded gains of $417,610, $45,936 and $118,559 from selling of the properties held for sale for the years ended December 31, 2011, 2012 and 2013, respectively. In 2013, The Group also recognizes acquired properties as properties held for sale when the Group has intent and ability to sell them within one year. As of December 31, 2013, the Group held 44 residential properties and 5 car-parking spaces with a total carrying value of $15,304,927. As of December 31, 2012, the Group held two residential properties with a total carrying value of $611,892. | |
Properties with values of $2,546,721, $1,281,008 and nil were transferred to property and equipment for the years ended December 31, 2011, 2012 and 2013, respectively, due to the change of management’s intention with respect to these properties. | |
In 2013, the Group acquired 237 properties that the Group has intent and ability to sell within one year. As of December 31, 2013, title transfers of 140 residential properties, 5 car-parking places and 52 commercial properties were still in process, and the associated consideration of $60,076,026 was recorded as advance payment for properties to be held for sale in the consolidated balance sheet. |
Investment_in_Affiliates
Investment in Affiliates | 12 Months Ended |
Dec. 31, 2013 | |
Investment in Affiliates | ' |
Investment in Affiliates | ' |
4. Investment in Affiliates | |
In 2011, the Group paid RMB100,000,000 ($15,735,900) for a 3.7642% equity interest in Star Capital Real Estate Development Fund Management (“Star Capital”) as a limited partner. Mr. Xin Zhou, the Company’s co-chairman and chief executive officer, serves as a director of Star Capital. The Group’s interest in Star Capital is more than minor and thus is subject to the equity method. In 2013, the Group received RMB35,000,000 ($5,740,630) capital return from Star Capital. | |
In May 2012, the Group formed a limited partnership, Shanghai Wuling Investment Center (“Wuling Center”) in Shanghai, for the purpose of making equity investments in areas deemed suitable by the general partner. Shanghai Yidezhen Equity Investment Center, in which the Group has 51% equity interest, acts as Wuling Center’s general partner. The general partner receives annual management fees and carried interest on a success basis. The Group invested RMB15,000,000 ($2,386,440) and RMB27,000,000 ($4,428,486) into Wuling Center in 2012 and 2013 for a 6.52% equity interest, respectively. An entity controlled by Mr. Xin Zhou, the Company’s co-chairman and chief executive officer, owned 4.89% equity interest in Wuling Center and is a limited partner. The Wuling Center is not consolidated by the Group as the Group does not control the Wuling Center given the limited partners have substantive kick-out rights that allow them to remove the general partner without cause with a vote of 50% of the limited partners, excluding related parties of the general partner. The Group’s investments in Wuling Center are accounted for using the equity method as its role as a general partner provides it with significant influence over their activities. | |
The Group records its income (loss) from the above investments one quarter in arrears to enable it to have more time to collect and analyze the investments’ results. |
Acquisitions_of_Subsidiaries
Acquisitions of Subsidiaries | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Acquisitions of Subsidiaries | ' | |||||
Acquisitions of Subsidiaries | ' | |||||
5. Acquisitions of Subsidiaries | ||||||
Acquisition of CRIC | ||||||
On April 20, 2012, the Group acquired all the outstanding shares of CRIC that it did not already own, and CRIC became a wholly-owned subsidiary of E-House. E-House paid 0.6 of E-House ADSs and $1.75 in cash in exchange for each CRIC share. In total, E-House paid $113,124,632 in cash and issued 38,785,588 ordinary shares for the Merger. The total consideration consists of the following: | ||||||
Amount | ||||||
$ | ||||||
Cash | 113,124,632 | |||||
Fair value of E-House ordinary shares issued * | 252,106,323 | |||||
Replacement of CRIC share options ** | 31,897,646 | |||||
Total consideration | 397,128,601 | |||||
* The fair value of E-House ordinary shares is based on the closing price of E-House shares as of April 20, 2012 | ||||||
** As disclosed in Note 14, E-House issued the E-House replacement share options and restricted shares in connection with the Merger. The total fair value of the replacement awards was $54,787,620, of which $31,897,646 was attributable to pre-Merger services and included as a component of the consideration transferred in the Merger with the remainder allocated to post-Merger services and included in the Company’s compensation cost after the Merger. The amount attributable to the pre-Merger services was determined based on the fair value of the replacement awards on the date of Merger and a ratio of the pre-Merger services to the greater of the total service period or the original service period of the replacement awards. | ||||||
As E-House retains the controlling interest in CRIC before and after the Merger, the Merger was accounted for as an equity transaction. Therefore, no gain or loss was recognized in consolidated net income or comprehensive income. The carrying amount of the non-controlling interest in CRIC was adjusted to reflect the change in E-House’s ownership interest in CRIC. Any difference between the fair value of the consideration paid and the amount by which the non-controlling interest was adjusted was recognized in equity | ||||||
The consideration has been allocated as follows: | ||||||
Amount | ||||||
$ | ||||||
Non-controlling interest | 254,656,627 | |||||
Accumulated other comprehensive income | (6,989,208 | ) | ||||
Additional paid-in capital | 149,461,182 | |||||
Total consideration | 397,128,601 | |||||
Other Acquisitions | ||||||
In July 2013, the Group acquired Samas Asia Limited (“Samas”) for $6,000,000. Samas owned leasing contracts of four commercial buildings in Shanghai and was developing such buildings for subsequent sub-lease. The Group acquired Samas to develop its real estate asset management business. The goodwill mainly reflected the competitive advantages the Company expected to realize from Samas in the asset management industry, including synergies related to properties management and customer development. The purchase price was allocated as follows: | ||||||
Allocated | Amortization | |||||
Value | Period | |||||
$ | ||||||
Cash | 1,061,330 | |||||
Total tangible assets acquired | 5,192,503 | |||||
Liabilities assumed | (3,085,972 | ) | ||||
Favorable lease term | 1,379,556 | 17.3 years | ||||
Customer relationship | 184,987 | 17.3 years | ||||
Outstanding contracts | 261,863 | 6.4 years | ||||
Goodwill | 1,462,335 | |||||
Deferred tax liabilities | (456,602 | ) | ||||
Total | 6,000,000 | |||||
The goodwill was allocated to the real estate information and consulting services segment and is not deductible for tax purposes. | ||||||
In March 2011, the Group acquired Firmway Assets Limited (“Firmway”), a company incorporated in the British Virgin Islands, for $12,000,000 from E-House China Real Estate Investment Fund I, L.P. (the “Fund”). Firmway had acquired a 20-year lease for an office building in Shanghai and was developing such building for subsequent sub-lease. The Group acquired Firmway to obtain the lease of the office building, which the Group intended to use as its corporate office. The purchase price was allocated as follows: | ||||||
Allocated | Amortization | |||||
Value | Period | |||||
$ | ||||||
Cash | 1,731,778 | |||||
Amount due from related parties | 1,189,679 | |||||
Prepaid rent | 3,815,608 | 20 years | ||||
Liabilities assumed | (1,927 | ) | ||||
Favorable lease term | 5,264,862 | 20 years | ||||
Goodwill | 1,316,215 | |||||
Deferred tax liabilities | (1,316,215 | ) | ||||
Total | 12,000,000 | |||||
The goodwill was allocated to the real estate information and consulting services segment and is not deductible for tax purposes. | ||||||
In August 2011, the Group acquired Beijing Jiahua Xinlian Media Advertisement Co., Ltd. (“Beijing Jiahua”), a real estate advertisement agency, for a cash consideration of $9,416,363 and a 16% equity interest of the Group’s subsidiary Beijing Yisheng Leju Advertisement Co., Ltd. (“Beijing Advertisement”), which had a fair value of $3,398,954,. The purpose of the acquisition was to expand the Group’s online advertising business by leveraging Beijing Jiahua’s advertising network. The goodwill mainly reflected the competitive advantages the Company expected to realize from Beijing Jiahua’s standing in the online advertising agency industry, including synergies related to sales and distribution, and growth prospects for higher sales volumes and improved market position, which do not qualify for separate recognition of intangible assets. | ||||||
The transaction was accounted for using the purchase method with the purchase price allocated as follows: | ||||||
Allocated | Amortization | |||||
Value | Period | |||||
$ | ||||||
Total tangible assets acquired | 78,775 | |||||
Liabilities assumed | (468 | ) | ||||
Customer relationship | 3,307,686 | 7.3 years | ||||
Non-compete agreements | 953,596 | 2.6 years | ||||
Goodwill | 9,541,048 | |||||
Deferred tax liabilities | (1,065,320 | ) | ||||
Total | 12,815,317 | |||||
The goodwill was allocated to real estate online services segment and is not deductible for tax purposes. | ||||||
In August 2011, the Group acquired Beijing Shangtuo Shunze Media Advertisement Co. Ltd (“Beijing Shangtuo”), a real estate advertisement agency, for a cash consideration of $3,139,312 and a 5% equity interest in Beijing Advertisement, which had a fair value of $1,062,173. The purpose of the acquisition was to expand the Group’s online advertising business by leveraging Beijing Shangtuo’s advertising network. The goodwill mainly reflected the competitive advantages the Company expected to realize from Beijing Shangtuo’s standing in the online advertising agency industry, including synergies related to sales and distribution, and growth prospects for higher sales volumes and improved market position, which do not qualify for separate recognition of intangible assets. | ||||||
The transaction was accounted for using the purchase method with the purchase price allocated as follows: | ||||||
Allocated | Amortization | |||||
Value | Period | |||||
$ | ||||||
Total tangible assets acquired | 78,827 | |||||
Liabilities assumed | (928 | ) | ||||
Customer relationship | 983,494 | 7.3 years | ||||
Non-compete agreements | 413,854 | 2.6 years | ||||
Goodwill | 3,075,575 | |||||
Deferred tax liabilities | (349,337 | ) | ||||
Total | 4,201,485 | |||||
The goodwill was allocated to real estate online services segment and is not deductible for tax purposes. | ||||||
Pro forma results of operations for these acquisitions as well as the results of operations since the date of acquisition to the period end have not been presented because they are not material to the consolidated results of operations, either individually or in the aggregate. |
Property_and_Equipment_Net
Property and Equipment, Net | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Property and Equipment, Net | ' | |||||
Property and Equipment, Net | ' | |||||
6. Property and Equipment, Net | ||||||
Property and equipment, net consists of the following: | ||||||
As of December 31, | ||||||
2012 | 2013 | |||||
$ | $ | |||||
Leasehold improvements | 16,472,995 | 29,942,721 | ||||
Buildings | 22,480,129 | 21,787,018 | ||||
Furniture, fixtures and equipment | 22,373,236 | 26,076,914 | ||||
Motor vehicles | 7,154,519 | 7,072,583 | ||||
Total | 68,480,879 | 84,879,236 | ||||
Accumulated depreciation | (27,070,874 | ) | (34,802,311 | ) | ||
Property and equipment, net | 41,410,005 | 50,076,925 | ||||
Depreciation expense was $6,994,115, $8,684,626 and $8,206,163 for the years ended December 31, 2011, 2012 and 2013, respectively. |
Intangible_Assets_Net
Intangible Assets, Net | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Intangible Assets, Net | ' | |||||||
Intangible Assets, Net | ' | |||||||
7. Intangible Assets, Net | ||||||||
Weighted | ||||||||
Average | ||||||||
As of December 31, | Amortization | |||||||
2012 | 2013 | Periods | ||||||
$ | $ | In years | ||||||
Intangible assets not subject to amortization are comprised of the following: | ||||||||
Trademark | 759,122 | 782,607 | ||||||
Intangible assets subject to amortization are comprised of the following: | ||||||||
Advertising agency agreement with SINA | 106,790,000 | 106,790,000 | 5.95 | |||||
License agreements with SINA | 80,660,000 | 80,660,000 | 5.75 | |||||
Exclusive rights with Baidu | 43,955,466 | 45,315,329 | 1.25 | |||||
Customer relationship | 11,781,636 | 12,100,847 | 5.97 | |||||
Database license | 8,300,000 | 8,300,000 | 4.25 | |||||
Favorable lease term | 7,692,972 | 9,541,891 | 17.24 | |||||
Computer software licenses | 5,447,113 | 5,708,188 | 1.62 | |||||
Non-compete agreements | 3,374,566 | 3,420,712 | 0.92 | |||||
Customer contracts | 772,092 | 1,057,842 | 5.94 | |||||
Domain name | 96,518 | 214,611 | 5.53 | |||||
268,870,363 | 273,109,420 | 6.13 | ||||||
Less: Accumulated amortization | ||||||||
Advertising agency agreement | (34,026,224 | ) | (44,495,832 | ) | ||||
License agreements with SINA | (26,214,500 | ) | (34,280,500 | ) | ||||
Exclusive rights with Baidu | (20,632,977 | ) | (34,693,471 | ) | ||||
Customer relationship | (4,359,757 | ) | (6,464,705 | ) | ||||
Database license | (3,173,531 | ) | (4,150,001 | ) | ||||
Favorable lease term | (455,271 | ) | (637,435 | ) | ||||
Computer software licenses | (2,804,503 | ) | (3,963,457 | ) | ||||
Non-compete agreements | (2,144,778 | ) | (3,097,470 | ) | ||||
Customer contracts | (761,504 | ) | (832,950 | ) | ||||
Domain name | (15,073 | ) | (44,456 | ) | ||||
Intangible assets subject to amortization, net | 174,282,245 | 140,449,143 | ||||||
Total intangible assets, net | 175,041,367 | 141,231,750 | ||||||
In 2011, the Group purchased exclusive rights from Baidu, Inc (‘‘Baidu’’) which allow it to sell Baidu’s real estate related Brand Link product, which is a form of keyword advertising, and to use and operate Baidu’s exclusive real estate-related web channel for $47,612,100 through August 2014. In October 2013, the Group extended these rights with Baidu to March 2015, without paying additional consideration. The payment schedule of the remaining liability for exclusive rights was also deferred through the extension period. The fair value of $43,847,992 was recognized in 2011 and calculated by discounting the future cash payments to be made from 2012 to 2014. The difference between the fair value and the principal amount of $3,764,108 is being amortized using the effective interest method over the term of the exclusive rights and amounted to $891,441, $1,882,804 and $935,177 for the years ended December 31, 2011, 2012 and 2013, respectively. | ||||||||
The Group paid $9,435,994, $14,249,180 and $15,347,915 in connection with the exclusive rights in 2011, 2012 and 2013, respectively. | ||||||||
Amortization expense was $28,864,727, $38,701,651 and $37,009,330 for the years ended December 31, 2011, 2012 and 2013, respectively. The Group expects to record amortization expenses of $31,029,152, $23,841,999, $21,368,169, $21,093,212 and $20,113,766 for the years ending December 31, 2014, 2015, 2016, 2017 and 2018, respectively. |
Goodwill
Goodwill | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Goodwill | ' | |||||||||
Goodwill | ' | |||||||||
8. Goodwill | ||||||||||
Changes in the carrying amount of goodwill by segment for the years ended December 31, 2012 and 2013 are as follows: | ||||||||||
Real Estate | ||||||||||
Real Estate | Real Estate | Information | ||||||||
Online | Brokerage | and Consulting | ||||||||
Services | Services | Services | Total | |||||||
$ | $ | $ | $ | |||||||
Balance as of January 1, 2012 | 40,152,022 | 3,509,326 | 5,667,004 | 49,328,352 | ||||||
Exchange rate translation | 63,965 | 8,422 | — | 72,387 | ||||||
Balance as of December 31, 2012 | 40,215,987 | 3,517,748 | 5,667,004 | 49,400,739 | ||||||
Goodwill recognized upon acquisition | — | — | 1,698,098 | 1,698,098 | ||||||
Exchange rate translation | 394,633 | 106,569 | — | 501,202 | ||||||
Balance as of December 31, 2013 | 40,610,620 | 3,624,317 | 7,365,102 | 51,600,039 | ||||||
As of December 31, 2012 | ||||||||||
Goodwill, gross | 458,038,291 | 3,517,748 | 5,667,004 | 467,223,043 | ||||||
Accumulated impairment charge | (417,822,304 | ) | — | — | (417,822,304 | ) | ||||
Goodwill, net | 40,215,987 | 3,517,748 | 5,667,004 | 49,400,739 | ||||||
As of December 31, 2013 | ||||||||||
Goodwill, gross | 458,432,924 | 3,624,317 | 7,365,102 | 469,422,343 | ||||||
Accumulated impairment charge | (417,822,304 | ) | — | — | (417,822,304 | ) | ||||
Goodwill, net | 40,610,620 | 3,624,317 | 7,365,102 | 51,600,039 | ||||||
The Group utilized the income approach valuation method (Level 3) to compute the fair value of its reporting units. The key assumptions used in the income approach, which requires significant management judgment, include business assumptions, terminal value, and discount rate. Significant increases in discount rate or decrease in terminal value in isolation would result in a significantly lower fair value measurement. | ||||||||||
A substantial portion of goodwill on the Group’s balance sheet relates to the acquisition of the Group’s online unit in 2009. Toward the end of the third quarter of 2011, China’s real estate market showed signs of further slowdown under the government’s continued restrictive policies and further credit tightening. The online unit started to slow down as developers became more pessimistic about increasing sales volume and more cautious with their advertising spending. The Group believed that this resulted in slower than previously expected growth for its online business over the next several years. In addition, CRIC experienced a 31% decline in its stock price from June 30, 2011 to September 30, 2011. These circumstances prompted management to perform an interim test to evaluate and test the fair value of the Group’s reporting units against their carrying amount on September 30, 2011. The Group applied a discount rate of 16.5% and terminal growth rate of 2% in estimating the fair value of the reporting unit. The Group concluded that the carrying amount of its real estate online services reporting unit was higher than its fair value and consequently recorded a one-time goodwill impairment charge of $417,822,304 during the third quarter of 2011. | ||||||||||
Based on the impairment tests performed, there was no goodwill impairment as of December 31, 2012 and 2013. The Group recorded a goodwill impairment charge of $417,822,304, nil and nil for the years ended December 31, 2011, 2012 and 2013, respectively. |
Convertible_Senior_Notes
Convertible Senior Notes | 12 Months Ended |
Dec. 31, 2013 | |
Convertible Senior Notes | ' |
Convertible Senior Notes | ' |
9. Convertible Senior Notes | |
In December 2013, the Company issued $135,000,000 in aggregate principal amount of 2.75% Convertible Senior Notes due 2018 (the “Notes”). The Notes can be converted into the Company’s American Depositary Shares (“ADSs”), each representing one ordinary share of E-House, par value $0.001 per share (the “ordinary shares”), at the option of the holders, based on an initial conversion rate of 59.5380 of the Company’s ADSs per $1,000 principal amount of Notes ($16.80 per ADS). Holders of the Notes will have the right to require the Company to repurchase for cash all or part of their Notes on December 15, 2016 or upon the occurrence of certain fundamental changes at a repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the repurchase date. The Notes will bear interest at a rate of 2.75% per year, payable semiannually in arrears on June 15 and December 15 of each year, beginning on June 15, 2014. The Notes will mature on December 15, 2018, unless previously repurchased or converted in accordance with their terms prior to such date. | |
The net proceeds from the Notes offering were $130,073,430, after deducting discounts to the initial purchaser of $3,375,000 and debt issuance costs of $1,551,570. Debt issuance costs are recorded as deferred assets and debt discounts are recorded as a direct deduction from the face amount of Convertible Senior Notes, and they are amortized as interest expenses, using the effective interest method, to the first put date of the Notes (December 15, 2016). | |
In connection with the offering, the Company also used $44,999,998 of the net proceeds from the offering to enter into a zero-strike call option (the “Call Option”), covering 3,482,972 ADSs, with an affiliate of the initial purchaser (the “option counterparty”). The Call Option is in substance a prepaid forward contract and is intended to facilitate privately negotiated transactions by which investors in the Notes will hedge their investment in the Notes. The Call Option expires on the maturity date of the Notes and requires physical settlement. However, at expiration or when the Call Option is unwound, the Company has the right to choose cash settlement. | |
The Company recorded the Notes as a liability in their entirety, and the conversion feature or any other feature does not need to be bifurcated and accounted for separately. The Call Option was deemed as a prepaid forward to purchase the Company’s own shares and was classified in permanent equity at its fair value at inception, recorded as a reduction to equity in the consolidated balance sheet. The shares underlying the Call Option are included in the basic and diluted EPS calculation given that it is uncertain whether the Call Option will be physically settled and the shares will ultimately be repurchased back. | |
As of December 31, 2013, none of the Notes had been converted yet. |
Repurchase_of_Shares
Repurchase of Shares | 12 Months Ended |
Dec. 31, 2013 | |
Repurchase of Shares | ' |
Repurchase of Shares | ' |
10. Repurchase of Shares | |
In 2011, the Company’s board of directors approved a share repurchase program. Under the program, the Company was authorized, but not obligated, to repurchase within one year its own ADSs with an aggregate value of up to $50 million. As of December 31, 2011, the Company repurchased a total of 2,399,000 ADSs for $20,071,589. The excess of $20,069,191 of purchase price over par value was allocated between additional paid in capital and retained earnings of $8,915,855 and $11,153,336, respectively. | |
In 2011, CRIC’s board of directors approved a share repurchase program. Under the program, CRIC was authorized, but not obligated, to repurchase within one year its own ADSs with an aggregate value of up to $50 million. As of December 31, 2011, CRIC repurchased a total of 4,206,600 ADSs for $29,862,792. The purchase price was allocated between additional paid-in capital, retained earnings and non-controlling interest of $120,820, $166,092 and $29,575,880, respectively. | |
In 2012, the Company’s board of directors approved a share repurchase program. Under the program, the Company was authorized, but not obligated, to use up to all of the expected proceeds from the share issuance to management to repurchase the Company’s ADSs on the open market in compliance with applicable law. As of December 31, 2012, the Company has repurchased a total of 371,141 ADSs for $1,569,815. The excess of $1,569,444 of purchase price over par value was allocated between additional paid in capital and retained earnings of $1,569,444 and nil, respectively. | |
In 2013, The Company repurchased a total of 3,582,133 ADSs for $17,772,586. The excess of $17,769,004 of purchase price over par value was allocated between additional paid in capital and retained earnings of $15,942,072 and $1,826,932, respectively. | |
The portion of the excess allocated to additional paid-in capital was limited to the pro rata portion of capital surplus from stock issuance. All the repurchased shares were retired. |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2013 | |
Dividends | ' |
Dividends | ' |
11. Dividends | |
In 2011, the Company’s board of directors approved the payment of a cash dividend of $0.25 per ordinary share ($0.25 per ADS), for a total of $20,209,842, which was paid in April 2011 to shareholders of record as of the close of business on April 6, 2011. | |
In 2012, the Company’s board of directors approved the payment of a cash dividend of $0.15 per ordinary share ($0.15 per ADS) directly from the additional paid-in capital account, for a total of $11,866,670, which was paid in April 2012 to shareholders of record as of the close of business on April 10, 2012. | |
In 2013, the Company’s board of directors approved the payment of a cash dividend of $0.15 per ordinary share ($0.15 per ADS) directly from the additional paid-in capital account, for a total of $19,946,745, which was paid in May 2013 to shareholders of record as of the close of business on April 10, 2013. |
Other_Income_Loss_Net
Other Income (Loss), Net | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Income (Loss), Net | ' | |||||||
Other Income (Loss), Net | ' | |||||||
12. Other Income (Loss), Net | ||||||||
Years Ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
$ | $ | $ | ||||||
Gains on marketable securities, realized portion | — | 734,904 | 234,338 | |||||
Gains (loss) on marketable securities, unrealized portion | (8,598,962 | ) | 804,621 | — | ||||
Foreign exchange loss | (1,051,883 | ) | (379,530 | ) | (862,383 | ) | ||
Loss from disposal of subsidiaries | (1,054,348 | ) | — | — | ||||
Amortized discounts related to liability for exclusive rights with Baidu | (891,441 | ) | (1,882,804 | ) | (935,177 | ) | ||
Others | 1,139,423 | (10,061 | ) | 512,007 | ||||
Total other loss | (10,457,211 | ) | (732,870 | ) | (1,051,215 | ) |
Income_Tax
Income Tax | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Income Tax | ' | |||||||
Income Tax | ' | |||||||
13.Income Tax | ||||||||
For financial reporting purposes, income before income taxes includes the following components: | ||||||||
Years Ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
$ | $ | $ | ||||||
Income (loss) Before Income Taxes: | ||||||||
PRC | (3,029,769 | ) | (32,340,085 | ) | 125,404,634 | |||
Other | (464,549,563 | ) | (37,916,141 | ) | (63,455,200 | ) | ||
Total | (467,579,332 | ) | (70,256,226 | ) | 61,949,434 | |||
The expense (benefit) for income taxes is comprised of: | ||||||||
Years Ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
$ | $ | $ | ||||||
Current Tax | ||||||||
PRC | 17,257,121 | 16,813,520 | 44,386,281 | |||||
Other | 58,037 | — | 35,774 | |||||
17,315,158 | 16,813,520 | 44,422,055 | ||||||
Deferred Tax | ||||||||
PRC | (20,039,088 | ) | (15,644,866 | ) | (30,745,061 | ) | ||
Other | — | — | — | |||||
(20,039,088 | ) | (15,644,866 | ) | (30,745,061 | ) | |||
Income tax expense (benefit) | (2,723,930 | ) | 1,168,654 | 13,676,994 | ||||
The Company is incorporated in the Cayman Islands, which is exempted from tax. | ||||||||
On January 1, 2008, a new Enterprise Income Tax Law in China took effect. The new law applies a statutory 25% enterprise income tax rate to both foreign invested enterprises and domestic enterprises. | ||||||||
On December 26, 2007, the State Council issued the Notice of the State Council Concerning Implementation of Transitional Rules for Enterprise Income Tax Incentives (“Circular 39”). Based on Circular 39, certain specifically listed categories of enterprises that enjoyed a preferential tax rate of 15% are eligible for a graduated rate increase to 25% over the 5-year period beginning from January 1, 2008. Specifically, the applicable rates under such an arrangement for such enterprises would be 18%, 20%, 22%, 24% and 25% for 2008, 2009, 2010, 2011, 2012 and thereafter, respectively. E-House Shanghai is subject to such a graduated rate schedule. | ||||||||
Shanghai CRIC was approved as a high and new technology enterprise and is therefore subject to a 15% preferential income tax rate for the years from 2011 through 2014. In May 2010, Shanghai CRIC was granted software enterprise status, which exempted it from income taxes for 2009 and provided a 50% reduction in its income tax rate, or a rate of 12.5%, from 2010 through 2012. | ||||||||
In February 2009, Shanghai SINA Leju, the Group’s subsidiary in China, was granted software enterprise status, which qualified the subsidiary to be exempted from income taxes for 2009, followed by a 50% reduction in its income tax rate, or a rate of 12.5%, from 2010 through 2012. Shanghai SINA Leju was also granted status as a high and new technology enterprise and was entitled to enjoy a favorable statutory tax rate of 15% from 2013 through 2014. | ||||||||
In February 2012, Shanghai Fangxin information technology Co., Ltd., the Group’s subsidiary in China, was granted software enterprise status, which exempted it from income taxes for 2012 and 2013 and provided a 50% reduction in its income tax rate, or a rate of 12.5%, from 2014 through 2016. | ||||||||
Chongqing E-House Western Real Estate Investment Consultant Co., Ltd. was established in the western region of China and was deemed to be engaged in an industry category encouraged by the government. In August, 2012 Chongqing E-House Western Real Estate Investment Consultant Co., Ltd was approved to enjoy a preferential income tax rate of 15% for 2012 and 2013. | ||||||||
The Group’s subsidiaries in Hong Kong are subject to a profit tax at the rate of 16.5% on assessable profit determined under relevant Hong Kong tax regulations. | ||||||||
The Group’s subsidiary in Macau is subject to the complementary tax at a progressive tax rate of 0% to 12% on Macau sourced profits. | ||||||||
The Company’s subsidiaries incorporated in the BVI are not subject to taxation. | ||||||||
The Group does not have uncertain tax positions in accordance with ASC740-10, nor does it anticipate any significant increase to its liability for unrecognized tax benefit within next 12 months. The Group will classify interest and penalties related to income tax matters, if any, in income tax expense. | ||||||||
According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to tax authority’s mistake or due to computational errors made by the taxpayer. The statute of limitations will be extended to five years under special circumstances, which are not clearly defined, but an underpayment of tax liability exceeding RMB100,000 ($16,402) is specifically listed as a special circumstance. In the case of a transfer pricing related adjustment, the statute of limitations is 10 years. There is no statute of limitations in the case of tax evasion. | ||||||||
The principal components of the deferred income tax assets/ liabilities are as follows: | ||||||||
As of December 31, | ||||||||
2012 | 2013 | |||||||
$ | $ | |||||||
Deferred tax assets: | ||||||||
Accrued salary expenses | 16,586,026 | 24,396,931 | ||||||
Bad debt provision | 8,201,901 | 19,233,885 | ||||||
Net operating loss carry forwards | 24,008,244 | 23,846,831 | ||||||
Advertising expenses temporarily non-deductible | 9,415,848 | 19,970,491 | ||||||
Other | 312,952 | 71,177 | ||||||
Gross deferred tax assets | 58,524,971 | 87,519,315 | ||||||
Valuation allowance | (7,324,717 | ) | (11,237,880 | ) | ||||
Total deferred tax assets | 51,200,254 | 76,281,435 | ||||||
Analysis as: | ||||||||
Current | 41,212,042 | 66,331,906 | ||||||
Non-current | 9,988,212 | 9,949,529 | ||||||
Deferred tax liabilities: | ||||||||
Amortization of intangible and other assets | 36,925,632 | 29,900,565 | ||||||
Total deferred tax liabilities | 36,925,632 | 29,900,565 | ||||||
Analysis as: | ||||||||
Current | — | — | ||||||
Non-current | 36,925,632 | 29,900,565 | ||||||
Movement of the valuation allowance is as follows: | ||||||||
Years Ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
$ | $ | $ | ||||||
Balance as of January 1, | 183,392 | 689,076 | 7,324,717 | |||||
Additions | 484,262 | 6,625,864 | 3,631,241 | |||||
Changes due to foreign exchange | 21,422 | 9,777 | 281,922 | |||||
Balance as of December 31, | 689,076 | 7,324,717 | 11,237,880 | |||||
The Group has recognized a valuation allowance against deferred tax assets on tax loss carry forwards of $484,262, $6,625,864 and $3,631,241 for the years ended December 31, 2011, 2012 and 2013, respectively. | ||||||||
The Group assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three years period ended December 31, 2013. Such objective evidence limits the Group’s ability to consider other subjective evidence such as our projections for future growth. | ||||||||
On the basis of this evaluation, as of December 31, 2013, a valuation allowance of $11,237,880 was recorded to reflect only the portion of the deferred tax assets that is not more likely than not to be realized. The amount of the deferred tax assets considered realizable, however, could be adjusted if estimates of future taxable income during the carry forwards period are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as our projections for growth. | ||||||||
Reconciliation between the provision for income tax computed by applying the statutory tax rate to income before income taxes and the actual provision for income taxes is as follows: | ||||||||
Years Ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
$ | $ | $ | ||||||
PRC income tax rate | 25 | % | 25 | % | 25 | % | ||
Expenses not deductible for tax purposes | (24.26 | )% | (14.86 | )% | 13.6 | % | ||
Effect of tax preference | 0.72 | % | (1.91 | )% | (17.16 | )% | ||
Effect of different tax rate of subsidiary operation in other jurisdiction | (0.83 | )% | (2.14 | )% | (1.47 | )% | ||
Valuation allowance movement | (0.10 | )% | (9.48 | )% | 5.86 | % | ||
Effect of different tax rate of DTA and DTL applied | 0.05 | % | 0.55 | % | (3.22 | )% | ||
Others | — | 1.18 | % | (0.53 | )% | |||
0.58 | % | (1.66 | )% | 22.08 | % | |||
The aggregate amount and per share effect of the tax holiday are as follows: | ||||||||
Years Ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
$ | $ | $ | ||||||
The aggregate dollar effect | 3,046,393 | (1,336,133 | ) | 10,628,117 | ||||
Per share effect — basic | 0.04 | (0.01 | ) | 0.08 | ||||
Per share effect — diluted | 0.04 | (0.01 | ) | 0.08 | ||||
As of December 31, 2012 and 2013, the Group had tax losses carry forward of $97,503,509 and $93,844,512, respectively. These tax losses are available for offset against future profits that may be carried forward until calendar year 2017 and 2018, respectively. | ||||||||
Undistributed earnings of the Company’s PRC subsidiaries of approximately $346.4 million at December 31, 2013 are considered to be indefinitely reinvested and, accordingly, no provision for PRC dividend withholding tax has been provided thereon. Upon distribution of those earnings generated after January 1, 2008, in the form of dividends or otherwise, the Group would be subject to the then applicable PRC tax laws and regulations. Distributions of earnings generated before January 1, 2008 are exempt from PRC dividend withholding tax. The amounts of unrecognized deferred tax liabilities for these earnings are in the range of $14.6 million to $29.1 million, as the withholding tax rate of the profit distribution will be 5% or 10% depends on whether the immediate offshore companies can enjoy the preferential withholding tax rate of 5%. |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Share-Based Compensation | ' | |||||||||
Share-Based Compensation | ' | |||||||||
14. Share-Based Compensation | ||||||||||
E-House’s Share Incentive Plan (the “E-House Plan”) | ||||||||||
In 2006, the Company adopted the E-House Plan, which allows the Company to offer a variety of share-based incentive awards to employees, officers, directors and individual consultants who render services to the Company. Under the E-House Plan, the Company authorized 3,636,364 ordinary shares, or 5% of the then total shares outstanding, to grant as options or restricted shares over a three-year period. In October 2010, the Company authorized an increase of 4,013,619 ordinary shares to the award pool. In November 2012, the Company further authorized an increase of 1,273,000 ordinary shares to the award pool. In August, 2013, E-House Holdings authorized an increase of 6,644,659 ordinary shares to the award pool. Options have a ten-year life. Share options granted under the E-House Plan can be settled by the employee either by cash or net settled by shares. | ||||||||||
Share Options: | ||||||||||
During the years ended December 31, 2011, 2012 and 2013, the Company granted options to certain employees, senior management and independent directors for the purchase of 1,994,000, nil and nil ordinary shares, respectively. The options entitle the option holders to acquire ordinary shares of the Company at an exercise price of $5.31 per share, based on the fair market value of the ordinary shares at each of the dates of grant. Under the terms of each option plan, options expire 10 years from the date of grant and generally vest over three years. | ||||||||||
The Company has used the binomial model to estimate the fair value of the options granted under the E-House Plan. The fair value per option was estimated at the date of grant using the following weighted-average assumptions (excludes share option exchange program): | ||||||||||
2011 | ||||||||||
Average risk-free rate of return | 2.54% | |||||||||
Contractual life of option | 10 years | |||||||||
Average estimated volatility rate | 77.02% | |||||||||
Average dividend yield | 4.11% | |||||||||
In connection with its merger with CRIC, the Company exchanged 15,107,745 of its options (“E-House Replacement Options”) at an exercise prices from $0.72 to $8.99 under E-House plan for 16,975,028 of options granted under CRIC plan at an exercise prices from $0.64 to $8.00 (“CRIC Replaced Options”), with other terms unchanged. As a result, CRIC’s Share Incentive Plan (the “CRIC Plan”) merged into the E-House Plan and ceased to exist on its own. The incremental compensation cost of $289,930 was measured as the excess of the fair value of the E-House Replacement Options over the fair value of the CRIC Replaced Options at the exchange date. | ||||||||||
The Company used the binomial model to estimate the fair value of both the E-House Replacement Options and CRIC Replaced Options using the following assumptions: | ||||||||||
E-House | CRIC | |||||||||
Replacement | Replaced | |||||||||
Options | Options | |||||||||
Average risk-free rate of return | 2.62% | 2.62% | ||||||||
Contractual life of option | 7.53 years | 7.53 years | ||||||||
Average estimated volatility rate | 50.42% | 54.21% | ||||||||
Average dividend yield | 2.03% | — | ||||||||
On May 9, 2012, 396,050 outstanding options granted from September 24, 2009 to October 10, 2011 held by 3 directors of CRIC were modified to be fully vested on the modification date, with other terms unchanged. The unrecognized compensation cost from the initial grant date was immediately expensed. | ||||||||||
On May 29, 2012, the exercise price of 4,211,879 outstanding options, previously granted from July 15, 2009 to March 10, 2011, held by 394 employees was reduced from between $6.75 and $8.99 to $5.34, with other terms unchanged. In connection with the above modifications, incremental compensation cost was measured as the excess of the fair value of the modified options over the fair value of the original options immediately before their terms were modified, measured based on the share price and other pertinent factors at the modification date. Total incremental compensation cost was $1,811,935. | ||||||||||
The Company used the binomial model to estimate the fair value of the modified options using the following assumptions: | ||||||||||
2012 | ||||||||||
Average risk-free rate of return | 2.78% | |||||||||
Contractual life of option | 8.02 years | |||||||||
Average estimated volatility rate | 62.23% | |||||||||
Average dividend yield | 2.45% | |||||||||
The weighted-average grant-date fair value of options granted during the year ended December 31, 2011 was $3.31 per share. The Company recorded compensation expense of $2,903,861, $17,157,015, and $12,817,935 for the years ended December 31, 2011, 2012 and 2013, respectively. During the years ended December 31, 2011, 2012 and 2013, 81,495, 194,721 and 4,596,761 options were exercised having a total intrinsic value of $422,455, $436,259 and $25,248,554, respectively. | ||||||||||
A summary of option activity under the E-House Plan during the years ended December 31, 2011, 2012 and 2013 is presented below. | ||||||||||
Number of | Weighted | Weighted Average | Aggregate | |||||||
Options | Average | Remaining | Intrinsic | |||||||
Exercise Price | Contractual | Value of | ||||||||
Term | Options | |||||||||
$ | $ | |||||||||
Outstanding, as of January 1, 2011 | 1,442,075 | 5.38 | ||||||||
Granted | 1,994,000 | 5.31 | ||||||||
Exercised | (81,495 | ) | 5.37 | |||||||
Forfeited | (22,506 | ) | 5.37 | |||||||
Outstanding, as of January 1, 2012 | 3,332,074 | 5.34 | ||||||||
Granted E-House Replacement Options | 15,107,745 | 4.63 | ||||||||
Exercised | (194,721 | ) | 2.88 | |||||||
Forfeited | (325,504 | ) | 5.01 | |||||||
Outstanding, as of January 1, 2013 | 17,919,594 | 4.15 | — | |||||||
Granted | — | — | ||||||||
Exercised | (4,596,761 | ) | 3.81 | 25,248,554 | ||||||
Forfeited | (372,882 | ) | 5.03 | |||||||
Outstanding, as of December 31, 2013 | 12,949,951 | 4.25 | 6.12 | 140,247,969 | ||||||
Vested and expected to vest as of December 31, 2013 | 12,896,168 | 4.25 | 6.1 | 139,636,669 | ||||||
Exercisable as of December 31, 2013 | 10,264,511 | 4.14 | 5.7 | 112,293,747 | ||||||
As of December 31, 2013, there was $6,003,327 of total unrecognized compensation expense related to unvested share options granted under the E-House Plan. That cost is expected to be recognized over a weighted-average period of 0.72 years. | ||||||||||
Restricted Shares: | ||||||||||
The Company granted 28,000, 1,273,000 and 1,303,000 restricted shares to certain employees, directors and officers in 2011, 2012 and 2013 respectively. Under the terms of each restricted shares, restricted shares vest over three years. | ||||||||||
In connection with its merger with CRIC, the Company exchanged 77,875 of its restricted shares (“E-House Replacement Restricted Shares”) at an exercise prices from $3.38 to $6.75 under E-House plan for 87,500 of restricted shares granted under CRIC plan at an exercise prices from $3.00 to $6.00 (“CRIC Replaced Restricted Shares”), with other terms unchanged. No incremental compensation cost was recognized from the exchange. | ||||||||||
E-House | CRIC | |||||||||
Replacement | Replacement | |||||||||
Restricted | Restricted | |||||||||
Shares | Shares | |||||||||
Average risk-free rate of return | 2.43% | 2.43% | ||||||||
Contractual life of option | 0.85 years | 0.85 years | ||||||||
Average estimated volatility rate | 50.42% | 54.21% | ||||||||
Average dividend yield | 2.03% | — | ||||||||
A summary of restricted share activity under the E-House Plan during the years ended December 31, 2011, 2012 and 2013 is presented below: | ||||||||||
Number of | Weighted | |||||||||
Restricted | Average | |||||||||
Shares | Grant-date | |||||||||
Fair Value | ||||||||||
$ | ||||||||||
Unvested as of January 1, 2011 | 1,583,035 | 15.9 | ||||||||
Granted | 28,000 | 11.57 | ||||||||
Vested | (630,603 | ) | 16.21 | |||||||
Forfeited | (61,336 | ) | 15.96 | |||||||
Unvested as of January 1, 2012 | 919,096 | 15.56 | ||||||||
Granted | 1,273,000 | 3.43 | ||||||||
Granted E-House Replacement Restricted Shares | 77,875 | 3.47 | ||||||||
Vested | (567,489 | ) | 16.08 | |||||||
Forfeited | (71,844 | ) | 15.81 | |||||||
Unvested as of January 1, 2013 | 1,630,638 | 5.32 | ||||||||
Granted | 1,303,000 | 10.61 | ||||||||
Vested | (769,448 | ) | 7.29 | |||||||
Forfeited | (12,506 | ) | 14.13 | |||||||
Unvested as of December 31, 2013 | 2,151,684 | 7.77 | ||||||||
The total fair value of restricted shares vested in 2011, 2012 and 2013 was $10,219,188, $9,127,103 and $5,612,379, respectively. | ||||||||||
As of December 31, 2013, there was $14,640,782 of total unrecognized compensation expense related to restricted shares granted under the E-House Plan. That cost is expected to be recognized over a weighted-average period of 2.78 years. | ||||||||||
The Company recorded compensation expense of $10,668,117, $9,348,941 and $5,668,460, for the years ended December 31, 2011 and 2012 and 2013, respectively, related to restricted shares. | ||||||||||
Leju Plan | ||||||||||
In November 2013, Leju Holdings Limited (“Leju”), a wholly-owned subsidiary of the Company, adopted a share incentive plan (“Leju Plan”), which allows Leju to offer a variety of share-based incentive awards to employees, officers, directors and individual consultants who render services to Leju. Under the Leju Plan, the maximum number of shares that may be issued shall be 8% of the then total shares outstanding, to grant as options or restricted shares over a three-year period. Options have a ten-year life. | ||||||||||
Share Options: | ||||||||||
On December 1, 2013, Leju granted 7,192,000 options to purchase ordinary shares of Leju to certain of the Leju’s employees and E-House’s employees at an exercise price of $4.6 per share. The options expire ten years from the date of grant and vest ratably at each grant date anniversary over a period of three years. | ||||||||||
On December 16, 2013, Leju granted 600,000 restricted shares to a director and an E-House employee to replace the same number of options previously granted under the Leju plan, with all other terms unchanged. The purchase price of the restricted shares is $4.6 per shares, which was the exercise prices of the options that were replaced. The modification did not result in any incremental compensation expense. Cash received from the advance payment of the restricted shares are recorded as an amount due to related parties as of December 31, 2013. Leju has used the binomial model to estimate the fair value of the options granted under the Leju Plan. The fair value per option was estimated at the date of grant based on the fair value of Leju’s ordinary shares of $4.55 and using the following assumptions: | ||||||||||
2013 | ||||||||||
Average risk-free rate of return | 2.98% | |||||||||
Contractual life of option | 10 years | |||||||||
Average estimated volatility rate | 56.74% | |||||||||
Average dividend yield | 0.00% | |||||||||
A summary of option activity under the Leju Plan during the year ended December 31, 2013 is presented below: | ||||||||||
Number of | Exercise | Remaining | Aggregate | |||||||
Options | Price | Contractual | Intrinsic | |||||||
Term | Value of | |||||||||
Options | ||||||||||
$ | ||||||||||
Outstanding, as of January 1, 2013 | — | |||||||||
Granted | 7,192,000 | 4.6 | 10 | |||||||
Replaced by Restricted Share | (600,000 | ) | 4.6 | 10 | ||||||
Exercised | — | |||||||||
Forfeited | — | |||||||||
Outstanding, as of December 31, 2013 | 6,592,000 | 4.6 | 9.92 | — | ||||||
Vested and expected to vest as of December 31, 2013 | 6,592,000 | 4.6 | 9.92 | — | ||||||
Exercisable as of December 31, 2013 | — | — | — | — | ||||||
The grant-date fair value of the options granted in December was $2.21 per share. For the year ended December 31, 2013, the Group recorded compensation expenses of $381,874. | ||||||||||
As of December 31, 2013, there was $13,394,410 of total unrecognized compensation expense related to unvested share options granted under the Leju Plan. That cost is expected to be recognized over a weighted-average period of 2.92 years. | ||||||||||
Restricted Shares: | ||||||||||
A summary of restricted share activity under the Leju Plan during the year ended December 31, 2013 is presented below: | ||||||||||
Number of | Weighted | |||||||||
Restricted | Average | |||||||||
Shares | Grant-date | |||||||||
Fair Value | ||||||||||
Unvested as of January 1, 2013 | — | |||||||||
Converted from option | 600,000 | 2.21 | ||||||||
Vested | — | |||||||||
Forfeited | — | |||||||||
Unvested as of December 31, 2013 | 600,000 | 2.21 | ||||||||
For the year ended December 31, 2013, the Group recorded compensation expenses of $34,758 for the restricted shares granted to the Group’s employees. | ||||||||||
As of December 31, 2013, there was $1,141,286 of total unrecognized compensation expense related to unvested restricted shares granted under the Leju Plan. That cost is expected to be recognized over a weighted-average period of 2.92 years. | ||||||||||
Other Equity Compensation: | ||||||||||
In August 2011, CRIC signed employee equity compensation arrangements with three senior managers of Beijing Advertisement. Under the agreement, the managers received a 3.5% equity interest of Beijing Advertisement. The award vests over a 16 month service period, starting September 2011. The fair value of Beijing Advertisement was calculated using the discounted cash flow method, under the income approach. The 3.5% equity interest in Beijing Advertisement was valued at $731,676. The Group recorded $182,918, $563,109 and nil as compensation expense for the years ended December 31, 2011, 2012 and 2013, respectively. | ||||||||||
As of December 31, 2013, there was no unrecognized compensation expense related to this compensation agreement. | ||||||||||
CRIC Plan | ||||||||||
On September 9, 2008, CRIC adopted the CRIC Plan to provide additional incentives to employees, directors and consultants who render services to CRIC. Under the CRIC Plan, the maximum number of shares that may be issued shall be 15% of the total outstanding shares of CRIC on an as-converted basis assuming all options outstanding were converted into shares as of the effective date of the CRIC Plan, plus an additional number of shares to be added on each of the third, sixth and ninth anniversary of the effective date of the CRIC Plan. | ||||||||||
In April 2012, all the options and restricted shares granted under the CRIC Plan were replaced by E-House’s options and restricted shares under E-House plan. After that, there was no compensation cost of the options and restricted shares under CRIC Plan. | ||||||||||
Share Options: | ||||||||||
During 2011, CRIC granted 8,361,000 options to purchase its ordinary shares to certain of the Group’s employees at an exercise price from $3.75 to $7.02 per share pursuant to the CRIC plan. The options expire ten years from the date of grant and vest ratably at each grant date anniversary over a period of two to three years. | ||||||||||
CRIC used the binomial model to estimate the fair value of the options granted under the CRIC Plan using the following assumptions: | ||||||||||
2011 | ||||||||||
Average risk-free rate of return | 3.22% | |||||||||
Contractual life of option | 10 years | |||||||||
Average estimated volatility rate | 70.35% | |||||||||
Average dividend yield | 0.00% | |||||||||
The weighted-average grant-date fair value of the options granted in 2011 was $3.16 per share. CRIC recorded compensation expense of $18,088,339 and $8,532,772, for the years ended December 31, 2011, and 2012, respectively. | ||||||||||
A summary of option activity under the CRIC Plan during the years ended December 31, 2011 and 2012 is presented below. | ||||||||||
Number of | Weighted | |||||||||
Options | Average | |||||||||
Exercise Price | ||||||||||
$ | ||||||||||
Outstanding, as of January 1, 2011 | 10,436,029 | 3.24 | ||||||||
Granted | 8,361,000 | 4.84 | ||||||||
Exercised | (702,201 | ) | 0.99 | |||||||
Forfeited | (791,763 | ) | 3.56 | |||||||
Outstanding, as of January 1, 2012 | 17,303,065 | 4.09 | ||||||||
Exercised | (200,116 | ) | 1.42 | |||||||
Forfeited | (127,921 | ) | 4.96 | |||||||
Replaced by E-House options | (16,975,028 | ) | 4.12 | |||||||
Outstanding, as of December 31, 2012 | — | |||||||||
The total intrinsic value of options under CRIC Plan exercised was $2,954,839 and $750,115, during the years ended December 31, 2011 and 2012, respectively. | ||||||||||
Restricted Shares: | ||||||||||
A summary of restricted share activity under the CRIC Plan during the years ended December 31, 2011 and 2012 is presented below: | ||||||||||
Number of | Weighted | |||||||||
Restricted | Average | |||||||||
Shares | Grant-date | |||||||||
Fair Value | ||||||||||
$ | ||||||||||
Unvested as of January 1, 2011 | 225,000 | 2.59 | ||||||||
Vested | (75,000 | ) | 2.59 | |||||||
Forfeited | — | — | ||||||||
Unvested as of January 1, 2012 | 150,000 | 2.59 | ||||||||
Vested | (62,500 | ) | 2.08 | |||||||
Replaced by E-House restricted shares | (87,500 | ) | 2.95 | |||||||
Unvested as of December 31, 2012 | — | |||||||||
The Group recorded compensation expense of $180,322 and $54,688 for CRIC restricted shares granted to the E-House’s employee for the years ended December 31, 2011, and 2012, respectively. | ||||||||||
The total fair value of restricted shares vested was $194,196 and $130,000 during the years ended December 31, 2011, and 2012, respectively. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2013 | |
Employee Benefit Plans | ' |
Employee Benefit Plans | ' |
15. Employee Benefit Plans | |
The Group’s PRC subsidiaries and VIEs are required by law to contribute a certain percentages of applicable salaries for retirement benefits, medical insurance benefits, housing funds, unemployment and other statutory benefits. The PRC government is directly responsible for the payments of such benefits. The Group contributed $33,021,394, $40,724,902 and $45,924,681, for the years ended December 31, 2011, 2012 and 2013, respectively, for such benefits. |
Distribution_of_Profits
Distribution of Profits | 12 Months Ended |
Dec. 31, 2013 | |
Distribution of Profits | ' |
Distribution of Profits | ' |
16. Distribution of Profits | |
Relevant PRC statutory laws and regulations permit payment of dividends by the Group’s PRC subsidiaries and VIEs only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Under PRC law, each of the Group’s PRC subsidiaries and VIEs is required to set aside at least 10% of its after-tax profits each year, if any, to fund a statutory reserve until such reserve reaches 50% of its registered capital. Each of the Group’s subsidiaries with foreign investment is also required to further set aside a portion of its after-tax profits to fund the employee welfare fund at the discretion of the board. Although the statutory reserves can be used, among other ways, to increase the registered capital and eliminate future losses in excess of retained earnings of the respective companies, the reserve funds are not distributable as cash dividends, loans or advances except in the event of liquidation of these subsidiaries. | |
The amount of the reserve fund for the Group as of December 31, 2012 and 2013 was $28,560,250 and $35,633,687, respectively. | |
As a result of these PRC laws and regulations, the Group’s PRC subsidiaries and VIEs are restricted in their ability to transfer a portion of their net assets, including general reserve and registered capital, either in the form of dividends, loans or advances. Such restricted portion amounted to $160,336,452 and $174,046,356, of which $8,027,725 and $9,977,982 was attributed to general reserve and registered capital of the VIEs, as of December 31, 2012 and 2013, respectively. |
Segment_Information
Segment Information | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Segment Information | ' | |||||||||||||
Segment Information | ' | |||||||||||||
17. Segment Information | ||||||||||||||
The Group uses the management approach to determine operating segments. The management approach considers the internal organization and reporting used by the Group’s chief operating decision maker (“CODM”) for making decisions, allocating resources and assessing performance. The Group’s CODM has been identified as the co-chairman and chief executive officer, who reviews consolidated and segment results when making decisions about allocating resources and assessing performance of the Group. | ||||||||||||||
In 2011, the Group had seven operating segments: 1) real estate online services; 2) primary real estate agency services; 3) secondary real estate brokerage services; 4) real estate information and consulting services; 5) real estate advertising services; 6) promotional events service; and 7) real estate fund management services. | ||||||||||||||
In 2012 and 2013, in line with the business growth, the Group’s CODM reviewed results of primary real estate agency services and secondary real estate brokerage services as a single business unit, instead of two separate units; and reviewed results of real estate advertising services and promotional events as a single business unit, instead of two separate units, when making decisions about allocating resources and assessing performance of the Group. The five operating segments are namely 1) real estate online services; 2) real estate brokerage services; 3) real estate information and consulting services; 4) real estate promotional events and advertising services; 5) real estate fund management services. | ||||||||||||||
In addition, the real estate promotional events and advertising services and real estate fund management services did not meet the significance threshold for separate disclosure in any of the three years of 2011, 2012 and 2013, and have been combined in the other services segment for segment reporting purposes. | ||||||||||||||
Prior period information has been retrospectively adjusted to conform to the current segment presentation. The Group’s CODM reviewed net revenue, cost of sales, operating expenses, income from operations and net income and did not review balance sheet information. Corporate expenses of certain holding companies were not allocated among segments and were recorded as non-allocated items. | ||||||||||||||
The following tables summarize the selected revenue and expense information for each operating segment: | ||||||||||||||
For the years ended December 31, | ||||||||||||||
Real Estate | ||||||||||||||
Real Estate | Real Estate | Information | ||||||||||||
Online | Brokerage | and Consulting | Other | |||||||||||
2011 | Services | Services | Services | Services | Non-allocated | Total | ||||||||
$ | $ | $ | $ | $ | $ | |||||||||
Revenues | 136,452,384 | 176,441,032 | 61,750,112 | 26,981,453 | — | 401,624,981 | ||||||||
Cost of revenues | (37,583,296 | ) | (97,481,259 | ) | (6,708,358 | ) | (21,271,577 | ) | — | (163,044,490 | ) | |||
Selling, general and administrative expenses | (101,384,497 | ) | (97,293,397 | ) | (48,176,668 | ) | (8,237,382 | ) | (31,595,643 | ) | (286,687,587 | ) | ||
Goodwill Impairment charge | (417,822,304 | ) | — | — | — | — | (417,822,304 | ) | ||||||
Other operating income | 13,937 | 3,222,483 | 2,349,105 | 594,835 | — | 6,180,360 | ||||||||
Income (loss) from operations | (420,323,776 | ) | (15,111,141 | ) | 9,214,191 | (1,932,671 | ) | (31,595,643 | ) | (459,749,040 | ) | |||
Interest income | 675,759 | 697,076 | 881,539 | 93,130 | 279,415 | 2,626,919 | ||||||||
Other expense, net | (1,025,801 | ) | (7,765 | ) | (558,711 | ) | (1,060,778 | ) | (7,804,156 | ) | (10,457,211 | ) | ||
Income (loss) before taxes and equity in affiliates | (420,673,818 | ) | (14,421,830 | ) | 9,537,019 | (2,900,319 | ) | (39,120,384 | ) | (467,579,332 | ) | |||
Income tax benefit (expense) | 305,651 | 6,940,664 | (3,696,794 | ) | (825,591 | ) | — | 2,723,930 | ||||||
Income (loss) before equity in affiliates | (420,368,167 | ) | (7,481,166 | ) | 5,840,225 | (3,725,910 | ) | (39,120,384 | ) | (464,855,402 | ) | |||
Income (loss) from equity in affiliates | (9,609 | ) | 16,297 | (94,385 | ) | (77,413 | ) | — | (165,110 | ) | ||||
Net income (loss) | (420,377,776 | ) | (7,464,869 | ) | 5,745,840 | (3,803,323 | ) | (39,120,384 | ) | (465,020,512 | ) | |||
Real Estate | ||||||||||||||
Real Estate | Real Estate | Information | ||||||||||||
Online | Brokerage | and Consulting | Other | |||||||||||
2012 | Services | Services | Services | Services | Non-allocated | Total | ||||||||
$ | $ | $ | $ | $ | $ | |||||||||
Revenues | 169,755,893 | 208,284,503 | 54,517,612 | 29,881,360 | — | 462,439,368 | ||||||||
Cost of revenues | (54,117,692 | ) | (114,667,241 | ) | (10,783,472 | ) | (23,602,280 | ) | — | (203,170,685 | ) | |||
Selling, general and administrative expenses | (146,997,279 | ) | (92,291,838 | ) | (53,977,975 | ) | (10,544,345 | ) | (33,062,087 | ) | (336,873,524 | ) | ||
Other operating income | 153,340 | 2,982,861 | 2,481,255 | 857,567 | — | 6,475,023 | ||||||||
Income (loss) from operations | (31,205,738 | ) | 4,308,285 | (7,762,580 | ) | (3,407,698 | ) | (33,062,087 | ) | (71,129,818 | ) | |||
Interest income | 257,204 | 425,714 | 624,817 | 55,895 | 242,832 | 1,606,462 | ||||||||
Other income (expense), net | (1,979,450 | ) | 84,937 | (59,136 | ) | (446 | ) | 1,221,225 | (732,870 | ) | ||||
Income (loss) before taxes and equity in affiliates | (32,927,984 | ) | 4,818,936 | (7,196,899 | ) | (3,352,249 | ) | (31,598,030 | ) | (70,256,226 | ) | |||
Income tax benefit (expense) | 2,329,338 | (4,589,892 | ) | 623,227 | 468,673 | — | (1,168,654 | ) | ||||||
Income (loss) before equity in affiliates | (30,598,646 | ) | 229,044 | (6,573,672 | ) | (2,883,576 | ) | (31,598,030 | ) | (71,424,880 | ) | |||
Income (loss) from equity in affiliates | (881 | ) | 195,874 | (14,933 | ) | 195,449 | — | 375,509 | ||||||
Net income (loss) | (30,599,527 | ) | 424,918 | (6,588,605 | ) | (2,688,127 | ) | (31,598,030 | ) | (71,049,371 | ) | |||
Real Estate | ||||||||||||||
Real Estate | Real Estate | Information | ||||||||||||
Online | Brokerage | and Consulting | Other | |||||||||||
2013 | Services | Services | Services | Services | Non-allocated | Total | ||||||||
$ | $ | $ | $ | $ | $ | |||||||||
Revenues | 335,410,902 | 280,776,816 | 76,683,188 | 38,207,927 | — | 731,078,833 | ||||||||
Cost of revenues | (63,990,693 | ) | (168,624,507 | ) | (14,526,318 | ) | (26,894,288 | ) | — | (274,035,806 | ) | |||
Selling, general and administrative expenses | (210,576,230 | ) | (74,728,461 | ) | (58,026,755 | ) | (12,404,049 | ) | (45,211,506 | ) | (400,947,001 | ) | ||
Other operating income | 599,894 | 1,647,257 | 1,950,223 | 720,268 | — | 4,917,642 | ||||||||
Income (loss) from operations | 61,443,873 | 39,071,105 | 6,080,338 | (370,142 | ) | (45,211,506 | ) | 61,013,668 | ||||||
Interest expenses | — | — | — | — | (192,566 | ) | (192,566 | ) | ||||||
Interest income | 1,082,287 | 819,925 | 222,898 | 51,944 | 2,493 | 2,179,547 | ||||||||
Other income (expense), net | (1,185,121 | ) | 87,270 | (479,313 | ) | (11,837 | ) | 537,786 | (1,051,215 | ) | ||||
Income (loss) before taxes and equity in affiliates | 61,341,039 | 39,978,300 | 5,823,923 | (330,035 | ) | (44,863,793 | ) | 61,949,434 | ||||||
Income tax benefit (expense) | (5,447,524 | ) | (10,000,257 | ) | (3,606,417 | ) | (588,344 | ) | 5,965,548 | (13,676,994 | ) | |||
Income (loss) before equity in affiliates | 55,893,515 | 29,978,043 | 2,217,506 | (918,379 | ) | (38,898,245 | ) | 48,272,440 | ||||||
Income (loss) from equity in affiliates | (69,194 | ) | 343,561 | 312,119 | (9,320 | ) | 2,236,683 | 2,813,849 | ||||||
Net income (loss) | 55,824,321 | 30,321,604 | 2,529,625 | (927,699 | ) | (36,661,562 | ) | 51,086,289 | ||||||
Geographic | ||||||||||||||
Substantially all of the Group’s revenues from external customers and long-lived assets are located in the PRC. | ||||||||||||||
Major customers | ||||||||||||||
Details of the revenues for customers accounting for 10% or more of total net revenues are as follows: | ||||||||||||||
Years Ended December 31, | ||||||||||||||
2011 | 2012 | 2013 | ||||||||||||
$ | $ | $ | ||||||||||||
Customer A | 58,044,764 | 55,924,621 | * | |||||||||||
* indicates the revenue from the customer was less than 10% of total revenue in the year. | ||||||||||||||
Revenue generated from Customer A for real estate online services, real estate brokerage services, real estate information and consulting services, and other services were $5,852,438, $40,341,494, $11,688,229, and $162,603 for 2011, $6,871,686, $42,483,101, $6,356,080, and $213,754 for 2012, respectively. | ||||||||||||||
Details of the accounts receivable from customers accounting for 10% or more of total net accounts receivable are as follows: | ||||||||||||||
As of December 31, | ||||||||||||||
2012 | 2013 | |||||||||||||
$ | $ | |||||||||||||
Customer A | 52,949,294 | 43,318,976 | ||||||||||||
Details of the customer deposits from customers accounting for 10% or more of total net customer deposits are as follows: | ||||||||||||||
As of December 31, | ||||||||||||||
2012 | 2013 | |||||||||||||
$ | $ | |||||||||||||
Customer B | 11,136,720 | — | ||||||||||||
Customer C | 26,000,000 | 56,000,000 | ||||||||||||
Customer D | 20,682,480 | — | ||||||||||||
Customer E | * | 8,200,900 | ||||||||||||
* indicates the balance of the customer was less than 10% of total customer deposits as of 31 December, 2012. |
Related_Party_Balances_and_Tra
Related Party Balances and Transactions | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Related Party Balances and Transactions | ' | |||||||
Related Party Balances and Transactions | ' | |||||||
18. Related Party Balances and Transactions | ||||||||
Amounts due from related parties are comprised of the following: | ||||||||
As of December 31, | ||||||||
2012 | 2013 | |||||||
$ | $ | |||||||
Customer and supplier | 46,067 | 981,648 | ||||||
Other | 273,313 | 281,768 | ||||||
Total amounts due from related parties | 319,380 | 1,263,416 | ||||||
Amounts due to related parties are comprised of the following: | ||||||||
As of December 31, | ||||||||
2012 | 2013 | |||||||
$ | $ | |||||||
Management | 262,406 | 2,760,000 | ||||||
Customer and supplier | 3,638,975 | 1,745,263 | ||||||
Other | 380,449 | 1,030,249 | ||||||
Total amounts due to related parties | 4,281,830 | 5,535,512 | ||||||
(a) Customer and supplier | ||||||||
Transactions with customers and suppliers who are related parties are as follows: | ||||||||
Revenue recognized by the Group: | ||||||||
Years Ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
$ | $ | $ | ||||||
Beijing China Real Estate Research Association Technology Ltd (“CRERAT”) | 268,380 | 52,120 | 1,084,047 | |||||
SINA Corporation (“SINA”) | * | 1,855 | — | |||||
* Indicates SINA was not the related party of the Company before April, 2012. | ||||||||
Selling, general and administrative expenses recorded by the Group: | ||||||||
Years Ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
$ | $ | $ | ||||||
CRERAT | 822,249 | 476,706 | — | |||||
Cost of revenue recorded by the Group: | ||||||||
Years Ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
$ | $ | $ | ||||||
SINA | * | 5,145,039 | 6,033,036 | |||||
* Indicates SINA was not the related party of the Company before April, 2012. | ||||||||
Amount due from (to) customers and suppliers who are related parties are as follows: | ||||||||
Amount due from (to) related parties | ||||||||
As of December 31, | ||||||||
2012 | 2013 | |||||||
$ | $ | |||||||
CRERAT | 46,067 | 981,648 | ||||||
CRERAT | (1,133,357 | ) | (3,892 | ) | ||||
SINA | (2,505,618 | ) | (1,741,371 | ) | ||||
CRERAT is a joint venture formed by the Group with China Real Estate Research Association and China Real Estate Association, with the Group owning 51% equity interest of the entity. | ||||||||
Mr. Charles Chao, SINA’s chairman and chief executive officer, has served as a co-chairman of the Company’s board of directors after the Merger on April 2012 (related party since April, 2012). And SINA became a major shareholder of the Company from then. | ||||||||
(b) Affiliates | ||||||||
Amounts due from (to) affiliates are comprised as the following: | ||||||||
As of December 31, | ||||||||
2012 | 2013 | |||||||
$ | $ | |||||||
Shanghai Yueshun Real Estate Development Co., Ltd. (1) | 273,313 | 281,768 | ||||||
Shanghai Jin Yue Real Estate Development Co., Ltd. (2) | (380,449 | ) | (392,219 | ) | ||||
Suzhou Hehui Xuyuechang Equity Investment Center (“Xuyuechang Center”) (3) | — | (103,331 | ) | |||||
Suzhou Hehui Xuyuerong Equity Investment Center (“Xuyuerong Center”) (3) | — | (480,081 | ) | |||||
Suzhou Hehui Xuyuezhen Equity Investment Center (“Xuyuezhen Center”) (3) | — | (54,618 | ) | |||||
Notes: | ||||||||
(1) Xin Zhou is a director of the entity. The amount receivable (payable) is the rental cost paid (rental income received) by the Group on behalf of the entity. | ||||||||
(2) Xin Zhou is a director of the entity. The amount payable is rental expense paid by the entity on behalf of E-Commercial (Shanghai) Real Estate Advisory Co, Ltd. | ||||||||
(3) The Group holds 0.5%, 0.5% and 0.5% equity interest of Xuyuechang Center, Xuyuerong Center and Xuyuezhen Center, respectively. The Group also acts as a non-acting general partner and provides investment advice to the entities. The amount payable is the advance management fee received by the Group. | ||||||||
(c) Management | ||||||||
The amount due to management represents consideration paid by management for unvested restricted shares under Leju Plan. | ||||||||
On March 25, 2013, E-House (China) Holdings Limited issued an aggregate of 17,790,125 ordinary shares of the Company to Kanrich Holdings Limited (“Kanrich”), a British Virgin Islands company owned by certain key members of the Company’s management, including Mr. Xin Zhou, co-chairman of the Company’s board of directors and chief executive officer, for an aggregate purchase price of $62,621,240. | ||||||||
(d) Real Estate Investment Fund Management | ||||||||
Management fees from funds are comprised of the following: | ||||||||
Years Ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
$ | $ | $ | ||||||
E-House China Real Estate Investment Fund I, L.P. (the “Fund”) | 250,100 | 202,198 | 63,567 | |||||
E-House Shengyuan Equity Investment Center (“Shengyuan Center”) | 1,548,520 | 1,580,360 | 1,549,416 | |||||
E-House Shengquan Equity Investment Center (“Shengquan Center”) | 617,859 | 619,857 | 611,205 | |||||
Wuling Center (Note 4) | — | — | 3,804,667 | |||||
Others | — | — | 305,343 | |||||
Total management fee | 2,416,479 | 2,402,415 | 6,334,198 | |||||
In January 2008, the Group formed the Fund, which seeks to invest in China’s real estate sector through diversified investment strategies at all levels of the real estate value chain. The Group’s 51% owned subsidiary, E-House Real Estate Asset Management Limited, acts as the Fund’s general partner. The general partner receives annual management fee and carried interest on a success basis. Major investors of the Fund include institutions and high net worth individuals. Mr. Xin Zhou, the Company’s co-chairman and chief executive officer, and Mr. Neil Nanpeng Shen, director of the Company, invested a total of $28 million in the Fund. They are also among the minority shareholders of the general partner. The Group has no investment in the Fund. In March 2011, the Group acquired Firmway from the Fund for $12,000,000. (Note 5) | ||||||||
In January 2010, the Group formed a limited partnership, Shengyuan Center in Shanghai, for the purpose of making equity investments in areas deemed suitable by the general partner. The Group’s 51% owned subsidiary, Shanghai Yidezeng Equity Investment Center, acts as Shengyuan Center’s general partner. The general partner receives annual management fees and carried interest on a success basis. The Group invested $10,065,348 (RMB65,000,000) into the Shengyuan Center for a 13% equity interest. Mr. Xin Zhou, the Company’s co-chairman and chief executive officer, owns an 8% equity interest in the Shengyuan Center and is a limited partner. In 2013, the Group received $461,463 (RMB2,800,000) capital return from Shengyuan Center. | ||||||||
In April 2010, the Group formed Shengquan Center, which seeks to invest in China’s real estate sector through diversified investment strategies at all levels of the real estate value chain. The Group’s 51% owned subsidiary, Shanghai Yidexin Equity Investment Center, acts as Shengquan Center’s general partner. The general partner receives annual management fee and carried interest on a success basis. Mr. Xin Zhou, the Company’s co-chairman and chief executive officer, holds a 2.37% equity interest in the Shengquan Center. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Commitments and Contingencies | ' | |||
Commitments and Contingencies | ' | |||
19. Commitments and Contingencies | ||||
(a) Operating lease commitments | ||||
The Group has operating lease agreements principally for its office properties in the PRC. Such leases have remaining terms ranging from six to 240 months and are renewable upon negotiation. Rental expenses were $21,757,001, $24,418,965 and $23,033,850, for the years ended December 31, 2011, 2012 and 2013, respectively. | ||||
Future minimum lease payments under non-cancelable operating lease agreements at December 31, 2013 were as follows: | ||||
Amount | ||||
Year Ended December 31 | $ | |||
2014 | 19,916,212 | |||
2015 | 12,081,983 | |||
2016 | 8,166,279 | |||
2017 | 4,576,659 | |||
2018 | 4,311,688 | |||
Then thereafter | 32,406,039 | |||
Total | 81,458,860 | |||
(b) Fund investment commitments | ||||
The Group had an total investment commitment of RMB60,000,000 (equivalent to $9,841,080) to the Wuling Center (Note 4). RMB42,000,000 ($6,888,756) were paid as of December 31, 2013 and the remaining investment commitment of RMB18,000,000 ($2,952,324) is payable upon the fund’s demand. | ||||
(c) Properties payment commitments | ||||
The Group had a commitment of $100,057,425 for properties to be held for sales, $60,076,026 was paid and recorded as advance payment for properties to be held for sale. The remaining commitment of $39,981,399 is payable within one year. | ||||
The Group had a commitment of $8,161,056 for two floors of an office building which will be used as offices by one subsidiary of the Group. $2,931,478 was paid as of December 31, 2013 and recorded as other non-current assets. The remaining commitment of $5,229,578 is payable within one year. | ||||
(d) Investment commitment | ||||
The Group entered into a share purchase agreement with Jupai Holding Inc. and Century Crest Global Limited for the purchase of shares of Jupai Investment Group in December 2013. Pursuant to the agreement, the Group will purchase 12,918,340 Series B Shares and 12,918,340 ordinary shares at RMB96,000,000 ($15,745,728). Immediately after the Closing, the purchased shares shall collectively represent 20% of the equity interests in Jupai Investment Group (calculated on a fully diluted and as-converted basis). The transaction is expected to be closed in April 2014. | ||||
(e) Contingencies | ||||
The Group is subject to claims and legal proceedings that arise in the ordinary course of its business. Each of these matters is subject to various uncertainties, and it is possible that some of these matters may be decided unfavorably to the Group. The Group does not believe that any of these matters will have a material adverse effect on its business, assets or operations. The Group also assessed all currently pending matters and concluded that the possibility of an asset had been impaired or a liability had been incurred at the date of the financial statements was remote. | ||||
The Group has a clawback obligation to the Fund for which the Group acts as the general partner. Carried interest is subject to clawback to the extent that the limited partners have not received a certain level of aggregate distributions or the carried interest exceeds a certain level based on cumulative results. The Group did not recognize any carried interest income for the years ended December 31, 2012 and 2013; nor did the Group have any clawback obligations for those periods. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events | ' |
Subsequent Events | ' |
20. Subsequent Events | |
In January 2014, the Group entered into an equity transfer agreement with two individual shareholders of Beijing Lotta Times Advertising Co., Ltd (‘‘Beijing Lotta’’), a subsidiary of Beijing Leju, to purchase the remaining 40% shares of Beijing Lotta that it didn’t already own with a total consideration of $16,401,800 (RMB100,000,000). After the acquisition, Beijing Lotta becomes a wholly-owned subsidiary of the Group. As the Group retains the controlling interest in Beijing Lotta before and after the acquisition, the acquisition is accounted for as an equity transaction. Therefore, no gain or loss will be recognized in consolidated statement of operations. | |
In March 2014, the advertising agency agreement and license agreements originally signed between the group and SINA in August 2009 were extended an additional five years to March 2024 for no additional consideration. All other terms of the agreements remain the same. | |
In March, 2014, the Company’s board of directors approved the Company’s payment of a cash dividend of $0.20 per ordinary share ($0.20 per ADS) directly from the additional paid-in capital account, which 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 deposit bank will be subject to the terms of the deposit agreement, including the fees and expenses payable thereunder. | |
In March 2014, the Company entered into a share purchase and subscription agreement with Leju and Tencent, pursuant to which Tencent acquired from E-House 19,201,800 of Leju’s ordinary shares, or 15% of its total outstanding shares on a fully diluted basis, including all options and restricted shares and any other rights to acquire Leju’s shares that were granted and outstanding at the time for $180 million in cash. On April 17, 2014, Leju listed its American depositary shares, each representing one ordinary share of Leju (the “Leju ADSs”), on the NYSE in connection with an initial public offering. Leju issued a total of 10,000,000 ordinary shares of Leju, represented by 10,000,000 Leju ADSs, at $10.00 per Leju ADS in connection with its initial public offering, and an additional 2,029,420 Leju ordinary shares to Tencent in a private placement concurrent with Leju’s initial public offering at $10.00 per Leju share. Following these transactions, E-House remained the majority shareholder of Leju, holding 76.3% of Leju’s total outstanding shares, and Tencent became Leju’s second largest shareholder holding 16.1% of Leju’s total outstanding shares, in each case as of April 22, 2014. |
Summary_of_Principal_Accountin1
Summary of Principal Accounting Policies (Policies) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Summary of Principal Accounting Policies | ' | ||||||||||
Basis of presentation | ' | ||||||||||
(a) Basis of presentation | |||||||||||
The consolidated financial statements are prepared and presented in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). | |||||||||||
Basis of consolidation | ' | ||||||||||
(b) Basis of consolidation | |||||||||||
The consolidated financial statements include the financial statements of E-House, its majority owned subsidiaries and its VIEs, Beijing Leju, Shanghai Yi Xin, Beijing Jiajujiu and Shanghai Kushuo. All inter-company transactions and balances have been eliminated in consolidation. | |||||||||||
In 2012, the contractual arrangements among the shareholders of Shanghai Tian Zhuo Advertising Co., Ltd. (“Tian Zhuo”), Tian Zhuo and Shanghai CRIC Information Technology Co., Ltd. (“Shanghai CRIC”) were terminated. Upon the termination, the shareholders of Tian Zhuo transferred all of their equity interests in Tian Zhuo to Beijing Leju to make Tian Zhuo a wholly owned subsidiary of Beijing Leju. In December 2013, Beijing Leju transferred all of its equity interest in Tian Zhuo to Shanghai Kushuo to make Tian Zhuo a wholly owned subsidiary of Shanghai Kushuo. | |||||||||||
The Group evaluates each of its interests in private companies to determine whether or not the investee is a VIE and, if so, whether the Group is the primary beneficiary of such VIE. In determining whether the Group is the primary beneficiary, the Group considers if the Group (1) has power to direct the activities that most significantly affects the economic performance of the VIE, and (2) receives the economic benefits of the VIE that could be significant to the VIE. If deemed the primary beneficiary, the Group consolidates the VIE. | |||||||||||
The VIE arrangements | |||||||||||
PRC regulations currently prohibit or restrict foreign ownership of companies that provide Internet content and advertising services. To comply with these regulations, the Group provides such activities relating to Internet content and advertising services through its VIEs and their subsidiaries. | |||||||||||
To provide the Group effective control over and the ability to receive substantially all of the economic benefits of its VIEs and their subsidiaries, the Company’s subsidiaries Shanghai Yifang Software Co., Ltd. (“Shanghai Yifang”), Shanghai SINA Leju Information Technology Co., Ltd. (“Shanghai SINA Leju”) and Shanghai Yi Yue Information Technology Co. Ltd. (“Shanghai Yi Yue”), and Beijing Maiteng Fengshun Science and Technology Co., Ltd., (“Beijing Maiteng”) (collectively, the “Foreign Owned Subsidiaries”) entered into a series of contractual arrangements with Shanghai Kushuo, Beijing Leju, Shanghai Yi Xin, Beijing Jiajujiu (collectively the “VIEs”) and their respective shareholders, respectively, as summarized below: | |||||||||||
Name of Foreign Owned | The Group’s | ||||||||||
Subsidiaries | Legal Ownership | Name of VIEs | Activities of VIEs | ||||||||
Shanghai Yifang | 100% | Shanghai Kushuo | Operate the real estate offline advertising business | ||||||||
Shanghai SINA Leju | 100% | Beijing Leju | Operate the online advertising and listing business | ||||||||
Shanghai Yi Yue | 100% | Shanghai Yi Xin | Operate the e-commerce business | ||||||||
Beijing Maiteng | 90% | Beijing Jiajujiu | Operate the online home furnishing business | ||||||||
The VIEs hold the requisite licenses and permits necessary to conduct Internet content and advertising services activities relating to real estate projects from which foreign ownership of companies are prohibited or restricted. In addition, the VIEs hold leases and other assets necessary to operate such business and generate substantial of the Group’s online and advertising revenues. | |||||||||||
Agreements that Transfer Economic Benefits of the VIEs to the Group | |||||||||||
Exclusive Consultancy Services/Technical Support Agreement. Pursuant to an exclusive Consultancy services/technical support agreement between the Foreign Owned Subsidiaries and the respective VIEs, the Foreign Owned Subsidiaries provide the respective VIEs with a series of Consultancy services/technical support services and are entitled to receive related fees. The term of this exclusive technical support agreement will expire upon dissolution of the VIEs. Unless expressly provided by this agreement, without prior written consent of the Foreign Owned Subsidiaries, the VIEs may not engage any third party to provide the services offered by the Foreign Owned Subsidiaries under this agreement. | |||||||||||
Agreements that Provide Effective Control over VIEs | |||||||||||
Exclusive Call Option Agreement. Each of shareholders of the VIEs has entered into an exclusive call option agreement with the respective Foreign Owned Subsidiaries. Pursuant to these agreements, each of the shareholders of the VIEs has granted an irrevocable and unconditional option to the respective Foreign Owned Subsidiaries or their designees to acquire all or part of such shareholder’s equity interests in VIEs at its sole discretion, to the extent as permitted by PRC laws and regulations then in effect. The consideration for such acquisition of all equity interests in VIEs will be equal to the registered capital of the VIEs, and if PRC law requires the consideration to be greater than the registered capital, the consideration will be the minimum amount as permitted by PRC law. In addition, the VIEs irrevocably and unconditionally granted respective Foreign Owned Subsidiaries an exclusive option to purchase, to the extent permitted under the PRC law, all or part of the assets of the VIEs. The exercise price for purchasing the assets of the VIEs will be equal to their respective book values, and if PRC law requires the price to be greater than the book value, the price will be the minimum amount as permitted by PRC law. The call option may be exercised by respective Foreign Owned Subsidiaries or their designees. | |||||||||||
Loan Agreement. Under the loan agreement among shareholders of the VIEs and the respective Foreign Owned Subsidiaries, the respective Foreign Owned Subsidiaries granted an interest-free loan to the shareholders of VIE, solely for their purchase of equity interest of the VIEs, investing or operating activities conducted in the VIEs. Each loan agreement has a term of twenty years. | |||||||||||
Shareholder Voting Right Proxy Agreement. Each of shareholders of the VIEs irrevocably grant any person designated by the respective Foreign Owned Subsidiaries the power to exercise all voting rights to which he will be entitled to as shareholder of the VIEs at that time, including the right to declare dividends, appoint and elect board members and senior management members and other voting rights. | |||||||||||
Each shareholder voting right proxy agreement has a term of twenty years, unless it is early terminated by all parties in writing or pursuant to provision of this agreement. The term of the agreement will be automatically extended for one year upon the expiration, if the Foreign Owned Subsidiary gives the other Parties written notice requiring the extension thereof and the same mechanism will apply subsequently upon the expiration of each extended term. | |||||||||||
Equity Pledge Agreement. Each of shareholders of the VIEs has also entered into an equity pledge agreement with the respective Foreign Owned Subsidiaries. Pursuant to which these shareholders pledged their respective equity interest in the VIEs to guarantee the performance of the obligations of the VIEs. The Foreign Owned Subsidiaries, as pledgee, will be entitled to certain rights, including the right to sell the pledged equity interests. Pursuant to the equity pledge agreement, each shareholder of the VIEs cannot transfer, sell, pledge, dispose of or otherwise create any new encumbrance on their respective equity interest in the VIEs without the prior written consent of the respective Foreign Owned Subsidiaries. The equity pledge right enjoyed by the Foreign Owned Subsidiaries will expire when shareholders of the VIEs have fully performed their respective obligations under the above agreements. The equity pledges of the VIEs have been registered with the relevant local branch of the State Administration for Industry and Commerce, or SAIC. | |||||||||||
Risks in relation to the VIE structure | |||||||||||
The Company believes that the Foreign Owned Subsidiaries’ contractual arrangements with the VIEs are in compliance with PRC law and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements and the interests of the shareholders of the VIEs may diverge from that of the Company and that may potentially increase the risk that they would seek to act contrary to the contractual terms, for example by influencing the VIEs not to pay the service fees when required to do so. | |||||||||||
The Company’s ability to control the VIEs also depends on the power of attorney the Foreign Owned Subsidiaries have to vote on all matters requiring shareholder approval in the VIEs. As noted above, the Company believes this power of attorney is legally enforceable but may not be as effective as direct equity ownership. | |||||||||||
In addition, if the legal structure and contractual arrangements were found to be in violation of any existing PRC laws and regulations, the Company may be subject to fines or other actions. The Company does not believe such actions would result in the liquidation or dissolution of the Company, the Foreign Owned Subsidiaries or the VIEs. | |||||||||||
The Group, through its subsidiaries and through the contractual arrangements, has (1) the power to direct the activities of the VIEs that most significantly affect the entity’s economic performance and (2) the right to receive benefits from the VIEs. Accordingly, the Group is the primary beneficiary of the VIEs and has consolidated the financial results of the VIEs. | |||||||||||
The following financial statement amounts and balances of the Group’s VIEs were included in the accompanying consolidated financial statements: | |||||||||||
As of December 31, | |||||||||||
2012 | 2013 | ||||||||||
$ | $ | ||||||||||
Cash and cash equivalents | 54,276,035 | 71,095,466 | |||||||||
Accounts receivable, net of allowance for doubtful accounts | 88,871,824 | 87,835,551 | |||||||||
Other current assets | 22,144,577 | 29,693,275 | |||||||||
Amounts due from related parties | 46,067 | — | |||||||||
Total current assets | 165,338,503 | 188,624,292 | |||||||||
Total non-current assets | 62,413,697 | 49,517,785 | |||||||||
Total assets | 227,752,200 | 238,142,077 | |||||||||
Accounts payable | 1,826,257 | 1,505,942 | |||||||||
Accrued payroll and welfare expenses | 18,834,610 | 29,309,329 | |||||||||
Income tax payable | 16,625,365 | 28,793,459 | |||||||||
Other tax payable | 8,807,339 | 11,188,055 | |||||||||
Amounts due to related parties | 3,161,687 | 2,383,293 | |||||||||
Advance from customers | 2,858,051 | 7,150,344 | |||||||||
Liability for exclusive rights, current | 16,973,230 | 8,967,972 | |||||||||
Other current liabilities | 6,117,223 | 9,917,349 | |||||||||
Total current liabilities | 75,203,762 | 99,215,743 | |||||||||
Deferred tax liabilities, non-current | 67,651 | 655,563 | |||||||||
Liability for exclusive rights, non-current | 5,918,812 | — | |||||||||
Total liabilities | 81,190,225 | 99,871,306 | |||||||||
Years Ended December 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
$ | $ | $ | |||||||||
Total revenues | 120,545,936 | 172,402,066 | 321,004,846 | ||||||||
Cost of revenues | (39,244,543 | ) | (54,276,512 | ) | (59,920,429 | ) | |||||
Net income/(loss) | (4,713,667 | ) | (3,212,138 | ) | 1,503,897 | ||||||
Net cash provided by operating activities | 10,684,846 | 16,020,624 | 72,877,862 | ||||||||
Net cash used in investing activities | (33,554,049 | ) | (17,544,270 | ) | (18,042,241 | ) | |||||
Net cash provided by (used in) financing activities | (3,434,675 | ) | 26,686,813 | (40,248,296 | ) | ||||||
There are no consolidated VIEs’ assets that are collateral for the VIEs’ obligations or are restricted solely to settle the VIEs’ obligations. The Company has not provided any financial support that it was not previously contractually required to provide to the VIEs. | |||||||||||
Use of estimates | ' | ||||||||||
(c) Use of estimates | |||||||||||
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from such estimates. Significant accounting estimates reflected in the Group’s financial statements include useful lives and valuation of long-lived assets, valuation of goodwill, allowance for doubtful accounts, assumptions related to share-based compensation arrangements, assumptions related to the consolidation of entities in which the Group holds variable interests, fair value of equity investments in funds invested by the Company, valuation allowance on deferred tax assets and estimated selling prices in multiple-deliverable revenue arrangements and assumptions related to the valuation of fair value of Leju’s ordinary shares. | |||||||||||
Fair value of financial instruments | ' | ||||||||||
(d) Fair value of financial instruments | |||||||||||
The Group records certain of its financial assets and liabilities at fair value on a recurring basis. Fair value reflects the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. | |||||||||||
The Group applies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. There are three levels of inputs that may be used to measure fair value: | |||||||||||
Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | |||||||||||
Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. | |||||||||||
Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | |||||||||||
Assets measured at fair value on a recurring basis were comprised of marketable securities. The Group used quoted price in active markets (Level 1 investments) to determine the fair value of marketable securities. | |||||||||||
Asset measured at fair value on a nonrecurring basis includes fair value measurement of the Group’s online reporting unit in goodwill impairment testing (Note 8) based on Level 3 inputs in 2011. The impairment loss based on Level 3 fair value measurements was $417,822,304, recognized as goodwill impairment charge in consolidated statements of operations for the year ended December 31, 2011. There was no asset or liability measured at fair value on a nonrecurring basis in 2012 or 2013. | |||||||||||
The Group’s financial instruments that are not recorded at fair value in the consolidated balance sheets include cash and cash equivalents, restricted cash, accounts receivable, advance from customers, customer deposits, other receivables, accounts payable, other payables, liabilities for exclusive rights, amounts due from/to related parties and convertible senior notes. For financial instruments other than the non-current portion of customer deposit and liabilities for exclusive rights, the carrying value approximates the fair value due to their short-term nature. The fair value of the non-current portion of customer deposits was $694,020 and $614,507 as of December 31, 2012 and 2013, respectively. The fair value of the non-current portion of liabilities for exclusive rights was $5,918,812 and nil as of December 31, 2012 and 2013, respectively. The fair value was estimated using discounted cash flows method by discounting the estimated future collections or payment using the Company’s incremental borrowing rate for an instrument with similar terms on the measurement date. As the future cash flows from collections or payments were management’s best estimates based on information available on the valuation date, which were not observable or cannot be corroborated with market information, the fair value measurements were classified as level 3 measurements. Any change in the estimated timing of cash inflow or outflow would result in a change in the fair value measurement in the same direction. It is not practicable to estimate the fair value of senior convertible notes newly issued in December 2013, as a quoted market price is not available and the Group has not yet obtained or developed the valuation model necessary to estimate fair value as of December 31, 2013. | |||||||||||
Business combinations | ' | ||||||||||
(e) Business combinations | |||||||||||
Business combinations are recorded using the purchase method of accounting and, accordingly, the acquired assets and liabilities are recorded at their fair market value at the date of acquisition. Any excess of acquisition cost over the fair value of the acquired assets and liabilities, including identifiable intangible assets, is recorded as goodwill. | |||||||||||
Cash and cash equivalents | ' | ||||||||||
(f) Cash and cash equivalents | |||||||||||
Cash and cash equivalents consist of cash on hand and demand deposits, which are unrestricted as to withdrawal and use, and which have original maturities of three months or less. | |||||||||||
Restricted cash | ' | ||||||||||
(g) Restricted cash | |||||||||||
The Group provides brokerage service for secondary properties. Upon consent of the property buyers and sellers, the sales proceeds can be paid through the Group’s accounts, which are put into the custody of the designated bank and can only be used as consideration to the property sellers when the transactions are completed. The Group records the proceeds relating to these transactions as restricted cash and other current liabilities. These restricted cash accounts totaled $2,589,880 and $2,146,098 as of December 31, 2012 and 2013, respectively. In connection with certain primary real estate agency agreements, the Group is required by the developers to maintain certain bank deposits under both parties’ custody through the contract periods or until the presale permits are obtained for the underlying projects. These restricted cash accounts were $159,096 and $164,018 as of December 31, 2012 and 2013, respectively. | |||||||||||
Marketable securities | ' | ||||||||||
(h) Marketable securities | |||||||||||
Marketable securities include securities that are classified as trading securities. Trading securities represent equity securities that are bought and held principally for the purpose of selling them in the near term, and they are reported at fair value, with both unrealized and realized gains and losses reported in other income (loss). The fair value of marketable securities is based upon the quoted price in an active market for identical instruments (Level 1). | |||||||||||
Customer deposits | ' | ||||||||||
(i) Customer deposits | |||||||||||
The Group provides sales agency services for primary real estate development projects, some of which require the Group to pay an upfront and refundable deposit as demonstration of the Group’s financial strength and commitment to provide high quality service. These deposits are refunded to the Group subject to certain pre-determined criteria at a date specified in the agency contracts. The pre-determined criteria are based on sales progress on a project, which may take into account factors such as gross floor area of properties sold and transaction value. Certain of the Group’s contracts provide that if the group breaches the contract, any corresponding penalties may be deducted from the deposit. Customer deposits are recorded as either current or non-current assets based on the Group’s estimate of the date of refund. | |||||||||||
The Group did not experience any material non-payment in history. In the event that any customer deposit becomes due but is not duly paid by the real estate developers, the Group requires collateral or other security from such developers, including existing properties or a right to properties under construction. In the event of non-payment, the Group would then resell the properties or the right to properties under construction for cash. The collection of these secured customer deposits is dependent on the resale price of the underlying properties, which is subject to the then market conditions. As of December 31, 2012 and 2013, customer deposits included $33,038,106 and nil that were secured by the right to purchase properties at a prescribed price, respectively. | |||||||||||
Accounts receivable | ' | ||||||||||
(j) Accounts receivable | |||||||||||
Accounts receivable, net of allowance for doubtful accounts of $35,953,537 and $60,232,453 at December 31, 2012 and 2013, respectively, consists of following: | |||||||||||
As of December 31, | |||||||||||
2012 | 2013 | ||||||||||
$ | $ | ||||||||||
Unbilled accounts receivable | 246,730,442 | 268,589,167 | |||||||||
Billed accounts receivable | 57,870,268 | 88,852,935 | |||||||||
Total | 304,600,710 | 357,442,102 | |||||||||
Unbilled accounts receivable represents amounts recognized in revenue prior to issuing official tax receipts to customers. The Group regularly reviews the collectability of unbilled accounts receivable in the same method as billed accounts receivable disclosed in Note 2 (y). | |||||||||||
Properties held for sale | ' | ||||||||||
(k) Properties held for sale | |||||||||||
Properties held for sale are stated at the lower of cost or net realizable value. Cost comprises the cost of purchase and, where applicable, direct costs associated with the purchase. Properties held for sales obtained through taking possession of collateral to settle the accounts receivable, are recorded at value of the receivables that are settled. The Group also recognizes acquired properties as properties held for sale when the Group has intent and ability to sell them within one year. The Group evaluates its properties held for sale for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. No impairment was provided for properties held for sale for the years ended December 31, 2011, 2012 and 2013. | |||||||||||
Investment in affiliates | ' | ||||||||||
(l) Investment in affiliates | |||||||||||
Affiliated companies are entities over which the Group has significant influence, but which it does not control. The Group generally considers an ownership interest of 20% or higher to represent significant influence. And the Group considers an equity interest of 3% or higher to represent more than minor influence for investments in investment funds. | |||||||||||
Investment funds are subject to Investment Company accounting, and need to apply the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 946, Financial Services - Investment Companies. Accordingly, all investments held by these investment funds are measured at fair value. The difference between fair value and initial cost of investments is reflected as unrealized appreciation/depreciation on investments in the income statement. Investment funds determine the fair value of the investments based on relevant comparable market data such as comparisons of multiples of peer companies, evaluation of financial and operating data, company specific developments, market valuations of comparable companies, and latest transaction price factors (Level 3 inputs). | |||||||||||
Investments in affiliates are accounted for by the equity method of accounting. Under this method, the Group’s share of the post-acquisition profits or losses of affiliated companies is recognized in the income statement and its shares of post-acquisition movements in other comprehensive income are recognized in other comprehensive income. Unrealized gains on transactions between the Group and its affiliated companies are eliminated to the extent of the Group’s interest in the affiliated companies; unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. When the Group’s share of losses in an affiliated company equals or exceeds its interest in the affiliated company, the Group does not recognize further losses, unless the Group has incurred obligations or made payments on behalf of the affiliated company. | |||||||||||
The Group is required to perform an impairment assessment of its investments whenever events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable. An impairment loss is recorded when there has been a loss in value of the investment that is other than temporary. The Group has not recorded any impairment losses in any of the periods reported. As of December 31, 2012 and 2013, the Group determined that no such events were present. | |||||||||||
Property and equipment, net | ' | ||||||||||
(m) Property and equipment, net | |||||||||||
Property and equipment is recorded at cost less accumulated depreciation. Depreciation is computed on a straight-line basis over the following estimated useful lives: | |||||||||||
Leasehold improvements | Over the shorter of the lease term or their estimated useful lives | ||||||||||
Buildings | 30 years | ||||||||||
Furniture, fixtures and equipment | 5 years | ||||||||||
Motor vehicles | 5 years | ||||||||||
Gains and losses from the disposal of property and equipment are included in income from operations. | |||||||||||
Intangible assets, net | ' | ||||||||||
(n) Intangible assets, net | |||||||||||
Acquired intangible assets mainly consist of license agreements with SINA, a real estate advertising agency agreement with SINA, database license agreement, exclusive rights with Baidu, Inc. (“Baidu”), favorable lease terms, customer relationships, non-compete agreements and trademarks from business combinations and are recorded at fair value on the acquisition date. All intangible assets, with the exception of customer relationships, are amortized ratably over the contract period. Intangible assets resulting out of acquired customer relationships are amortized based on the timing of the revenue expected to be derived from the respective customer. | |||||||||||
Impairment of long-lived assets | ' | ||||||||||
(o) Impairment of long-lived assets | |||||||||||
The Group evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When these events occur, the Group measures impairment by comparing the carrying amount of the assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss equal to the excess of the carrying amount over the fair value of the assets. | |||||||||||
Impairment of goodwill and indefinite lived intangible assets | ' | ||||||||||
(p) Impairment of goodwill and indefinite lived intangible assets | |||||||||||
The Group performs an annual goodwill impairment test comprised of two steps. The first step compares the fair value of each reporting unit to its carrying amount, including goodwill and indefinite lived intangible assets. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill and indefinite lived intangible assets to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. This allocation process is only performed for purposes of evaluating goodwill impairment and does not result in an entry to adjust the value of any assets or liabilities. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. | |||||||||||
Management performs a goodwill impairment test for each of its reporting units as of December 31 of each year or when there is a triggering event causing management to believe it is more likely than not that the carrying amount of goodwill may be impaired. | |||||||||||
Intangible assets with an indefinite life are tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment test consists of a comparison of the fair value of the intangible asset to its carrying amount. If the carrying amount exceeds the fair value, an impairment loss is recognized equal in amount to that excess. | |||||||||||
Income taxes | ' | ||||||||||
(q) Income taxes | |||||||||||
Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities, and their reported amounts in the financial statements, net operating loss carry forwards and credits by applying enacted statutory tax rates applicable to future years when the reported amounts of the asset or liability are expected to be recovered or settled, respectively. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on the classification of the related assets and liabilities for financial reporting purposes. | |||||||||||
The Group only recognizes tax benefits related to uncertain tax positions when such positions are more likely than not of being sustained upon examination. For such positions, the amount of tax benefit that the Group recognizes is the largest amount of tax benefit that is more than fifty percent likely of being sustained upon the ultimate settlement of such uncertain position. The Group records interest and penalties as a component of income tax expense. | |||||||||||
Debt issuance costs and debt discounts | ' | ||||||||||
(r) Debt issuance costs and debt discounts | |||||||||||
Debt issuance costs and debt discounts are amortized as interest expense, using the effective interest method, through the earlier of the maturity date of the Convertible Senior Notes or the date of conversion, if any. Debt issuance costs are recorded as deferred assets, and debt discounts are recorded as a direct deduction from the face amount of Convertible Senior Notes. | |||||||||||
Share-based compensation | ' | ||||||||||
(s) Share-based compensation | |||||||||||
Share-based compensation cost is measured on the grant date, based on the fair value of the award, and recognized as an expense over the requisite service period. Management has made an estimate of expected forfeitures and recognizes compensation cost only for those equity awards expected to vest. | |||||||||||
Revenue recognition | ' | ||||||||||
(t) Revenue recognition | |||||||||||
The Group recognizes revenue when there is persuasive evidence of an arrangement, service has been rendered, the sales price is fixed or determinable and collectability is reasonably assured. Revenues are recorded, net of sales related taxes. | |||||||||||
Real estate online services | |||||||||||
The Group generates real estate online revenues principally from e-commerce, online advertising, and listing services. | |||||||||||
The Group e-commerce services primarily include discount coupon advertising and online property auctions. The Group also provides property viewing and pre-sale customer support free of charge in connection with the sale of discount coupons and online property auctions. E-commerce revenues are principally generated from selling discount coupons to potential property buyers. Those discount coupons allow buyers to purchase specified properties from real estate developers at discounts greater than the face value of the fees charged by the Group. The discount coupons are refundable to the buyers at any time before they are used to purchase the specified properties. The Group recognizes such e-commerce revenues upon obtaining confirmation letters that prove the use of coupons by property buyers, and when collections are reasonably assured. Revenues are recognized based on the net proceeds received as the Group acts as a marketing agent of the property developer in the transaction. | |||||||||||
Revenue from online advertising services is generated principally from online advertising arrangements, sponsorship arrangements, and to a lesser extent, outsourcing arrangements, and keyword advertising arrangements. Online advertising arrangements allow advertisers to place advertisements on particular areas of the Group’s websites, in particular formats and over particular periods of time. Advertising revenues from online advertising arrangements are recognized ratably over the contract period of display when collectability is reasonably assured. Sponsorship arrangements allow advertisers to sponsor a particular area on the Group’s websites in exchange for a fixed payment over the contract period. Advertising revenues from sponsorship arrangements are recognized ratably over the contract period. The Group also generates online advertising revenues from outsourcing certain regional sites for a fixed period of time to local outsourcing partners, who are responsible for both website operation and related advertising sales. Advertising revenues from hosted websites are recognized ratably over the term of the contract. Keyword advertising revenues are recognized ratably over the contract period when collectability is reasonably assured. | |||||||||||
The Group also provides listing services to real estate brokers. Listing services entitle real estate brokers to post and make changes to information for properties in a particular area on the website for a specified period of time, in exchange for a fixed fee. Listing revenues are recognized ratably over the contract period of display when collectability is reasonably assured. | |||||||||||
Real estate brokerage services | |||||||||||
The Group provides marketing and sales agency services to primary real estate developers. The Group recognizes the commission revenue when a successful sale of property has occurred and upon completing the services required to execute a successful sale without further contingency. A successful sale is defined in each agency contract and is usually achieved after the property buyer has executed the purchase contract, made the required down payment, and the purchase contract has been registered with the relevant government authorities. The Group may also be entitled to earn additional revenue on the agency services if certain sales and other performance targets are achieved, such as average sale price over a pre-determined period. These additional agency service revenues are recognized when the Group has accomplished the required targets. | |||||||||||
The Group provides brokerage service for secondary real estate sale and rental transactions. For secondary real estate brokerage service, the Group recognizes revenue upon execution of a transaction agreement between the buyer/lessee and the seller/lessor for which the Group acts as the broker. | |||||||||||
Real estate consulting and information services | |||||||||||
The Group provides real estate consulting services to customers in relation to land acquisition and project consulting services. Land acquisition consulting services involve advising customers in relation to land acquisition and facilitating the transfer of land development rights. Payment is usually contingent upon the delivery of a final product, such as closing a land acquisition transaction. The Group recognizes revenue under such arrangements upon delivery of the final product, assuming customer acceptance has occurred and the fee is no longer contingent. Project consulting services involve providing consulting services, including project feasibility studies, analysis of the real estate transaction history of nearby development projects, marketing and advertising consulting, and development of comprehensive plans for their development projects. Such arrangements include periodic consulting services arrangements and delivery based consulting services arrangements. Periodic consulting services involve providing consulting services which are tailored to meet the needs of real estate developer clients at various stages of the project development and sales process for a specified period, such as monthly market studies. The contractual period for such arrangements is usually between one and 12 months with revenue being recognized ratably over such period. Delivery based consulting services involve providing consulting services which are tailored to meet the specific need of real estate developer. Payment is usually contingent upon the delivery of a final product, such as providing a market study report. The Group recognizes revenue under such arrangements upon delivery of the final product, assuming customer acceptance has occurred and the fee is no longer contingent. | |||||||||||
The Group sells subscriptions to its proprietary CRIC system for which revenues are recognized ratably over the subscription period, which is usually six to 12 months. The Group also provides data integration services periodically, such as periodic market updates and research analysis that suit the specific needs and requirements of individual clients in addition to access to the CRIC system. The contractual period for such arrangements is usually between three to 12 months with revenue being recognized ratably over such period. | |||||||||||
Other services | |||||||||||
The Group also provides promotional events services, and recognizes revenue when such services are rendered, assuming all other revenue recognition criterion have been met. The Group also generates revenues from advertising sales services by acquiring advertising space and subsequently reselling such space. Revenues under such arrangements are recognized when the related advertisement is placed. The Group recognizes advertising sales revenues on a gross basis because it acts as principal and is the primary obligator in the arrangement. | |||||||||||
The Group also generates revenues from real estate fund management fees, performance fees and allocations. Real estate fund management fees are based upon investment advisory and related agreements and are recognized as earned over the specified contract period. Performance fees and allocations represent the preferential allocations of profits (“carried interest”) that are a component of the Group’s general partnership interests in the real estate funds. The Group is entitled to an additional return from the investment fund in the event investors in the fund achieve cumulative investment returns in excess of a specified amount. The Group records the additional return from these carried interests as revenue at the end of the contract year. | |||||||||||
Multiple element arrangements | |||||||||||
The Group has multiple element arrangements that may include provision of primary real estate services, online advertising, promotional events services, consulting services and/or information services. The Group has determined that each of the deliverables listed above is considered a separate unit of account as each has value to the customer on a standalone basis and has been sold separately on a standalone basis, there is no general right of return on delivered items and the delivery or performance of the undelivered item(s) is considered probable and substantially in the control of the Group. | |||||||||||
The Group allocates arrangement consideration in multiple-deliverable revenue arrangements at the inception of an arrangement to all deliverables based on the relative selling price in accordance with the selling price hierarchy, which includes: (i) vendor-specific objective evidence (“VSOE”) if available; (ii) third-party evidence (“TPE”) if VSOE is not available; and (iii) best estimate of selling price (“BESP”) if neither VSOE nor TPE is available. | |||||||||||
VSOE. The Group determines VSOE based on its historical pricing and discounting practices for the specific service when sold separately. In determining VSOE, the Group requires that a substantial majority of the selling prices for these services fall within a reasonably narrow pricing range. The Group has historically priced its commission rate for the primary real estate services, periodic consulting services, subscription for the CRIC system and online advertising within a narrow range. As a result, the Group has used VSOE to allocate the selling price for these services when elements of a multiple element arrangement. The Group has not historically priced delivery based consulting service and promotional event services within a narrow range, therefore, the Group considers TPE and BESP as discussed below. | |||||||||||
TPE. When VSOE cannot be established for deliverables in multiple element arrangements, the Group applies judgment with respect to whether it can establish a selling price based on TPE. TPE is determined based on competitor prices for similar deliverables when sold separately. Generally, the Group’s marketing strategy differs from that of its peers and its offerings contain a significant level of differentiation such that the comparable pricing of services with similar functionality cannot be obtained. Furthermore, the Group is unable to reliably determine what similar competitor services’ selling prices are on a stand-alone basis. As a result, the Group has not been able to establish selling price based on TPE. | |||||||||||
BESP. When it is unable to establish selling price using VSOE or TPE, the Group uses BESP in its allocation of arrangement consideration. The objective of BESP is to determine the price at which the Group would transact a sale if the service were sold on a stand-alone basis. The Group determines BESP for deliverables by considering multiple factors including, but not limited to, prices it charged for similar offerings, market conditions, specification of the services rendered and pricing practices. The Group has used BESP to allocate the selling price of project-based consulting service and promotional event services under these multiple element arrangement. The process for determining BESP involves management judgment. The Group’s process considers multiple factors that may vary depending upon the unique facts and circumstances related to each deliverable. If the facts and circumstances underlying the factors the Group considers change, or should subsequent facts and circumstances lead the Group to consider additional factors, the Group’s BESP could change in future periods. The Group regularly reviews the evidence of selling price for its services and maintains internal controls over the establishment and updates of these estimates. There were no material changes in estimated selling price for its services during the years ended December 31, 2011, 2012 and 2013, nor does the Group expect a material changes in BESP in the foreseeable future. | |||||||||||
The total amounts of revenue earned by the Group related to agreements that have been accounted for as multiple element arrangements were $72,124,694, $74,042,253, and $71,908,552 in 2011, 2012 and 2013, respectively. | |||||||||||
Deferred revenues are recognized when payments are received in advance of revenue recognition. | |||||||||||
Cost of revenue | ' | ||||||||||
(u) Cost of revenue | |||||||||||
Cost of revenue for the real estate online services segment consists of costs associated with the production of websites, which includes fees paid to third parties for Internet connection, content and services, editorial personnel related costs, amortization of intangible assets, depreciation associated with website production equipment and fees paid to SINA for advertising inventory on non-real estate channels. Cost of revenue for the real estate brokerage services segment includes costs directly related to providing services, which include costs incurred for marketing and sale of primary real estate projects for which the Group acts as the agent, and rental expenses incurred for properties leased by the Group as brokerage stores and sales commission. Cost of revenue of real estate information and consulting services segment primarily consists of sales commission and costs incurred for developing, maintaining and updating the CRIC database system, which includes cost of data purchased or licensed from third-party sources, technical personnel related costs and associated equipment depreciation. Cost of revenue for real estate promotional events and advertising services also consists of fees paid to third parties to acquire advertising space for resale, and salaries of sales and support staff and fees paid to third parties for the services directly related to promotional event services. | |||||||||||
Advertising expenses | ' | ||||||||||
(v) Advertising expenses | |||||||||||
Advertising expenses are charged to the statements of operations in the period incurred. The Group incurred advertising expenses amounting to $31,146,070, $51,936,863 and $100,457,370 for the years ended December 31, 2011, 2012 and 2013, respectively. | |||||||||||
Foreign currency translation | ' | ||||||||||
(w) Foreign currency translation | |||||||||||
The functional currency of the Company is the United States dollar (“U.S. dollar”) and is used as the reporting currency of the Group. Monetary assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollar at the rates of exchange ruling at the balance sheet date. Equity accounts are translated at historical exchange rates and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as foreign currency translation adjustment and are shown as a separate component of other comprehensive income in the consolidated statements of changes in equity and comprehensive income. | |||||||||||
The financial records of certain of the Company’s subsidiaries are maintained in local currencies other than the U.S. dollar, such as Renminbi (“RMB”) and Hong Kong dollar (“HKD”), which are their functional currencies. Transactions in other currencies are recorded at the rates of exchange prevailing when the transactions occur. | |||||||||||
The Group recorded an exchange loss of $1,051,883, $379,530 and $862,383 for the years ended December 31, 2011, 2012 and 2013, respectively, as a component of other income (loss), net. | |||||||||||
Government subsidies | ' | ||||||||||
(x) Government subsidies | |||||||||||
Government subsidies include cash subsidies received by the Company’s subsidiaries in the PRC from local governments. These subsidies are generally provided as incentives for conducting business in certain local districts. Cash subsidies of $6,180,360, $6,475,023 and $4,917,642 were included in other operating income for the years ended December 31, 2011, 2012 and 2013, respectively. Subsidies are recognized when cash is received and when all the conditions for their receipt have been satisfied. | |||||||||||
Concentration of credit risk | ' | ||||||||||
(y) Concentration of credit risk | |||||||||||
Financial instruments that potentially expose the Group to concentrations of credit risk consist primarily of cash and cash equivalents, accounts receivable and customer deposits. The Group places its cash and cash equivalents with reputable financial institutions. | |||||||||||
The Group regularly reviews the creditworthiness of its customers, and requires collateral or other security from its customers in certain circumstances when accounts receivables become long overdue. The Group establishes an allowance for doubtful accounts and customer deposits primarily based upon factors surrounding the credit risk of specific customers, including creditworthiness of the clients, aging of the receivables and other specific circumstances related to the accounts. | |||||||||||
Movement of the allowance for doubtful accounts for accounts receivable and customer deposits is as follows: | |||||||||||
2011 | 2012 | 2013 | |||||||||
$ | $ | $ | |||||||||
Balance as of January 1 | 18,836,275 | 14,811,322 | 36,537,817 | ||||||||
Provisions for doubtful accounts | 9,513,951 | 27,297,288 | 29,099,216 | ||||||||
Write offs | (14,380,877 | ) | (5,633,500 | ) | (6,298,025 | ) | |||||
Changes due to foreign exchange | 841,973 | 62,707 | 1,479,400 | ||||||||
Balance as of December 31 | 14,811,322 | 36,537,817 | 60,818,408 | ||||||||
The allowance for other receivables was immaterial for all periods presented. | |||||||||||
Earnings per share | ' | ||||||||||
(z) Earnings per share | |||||||||||
Basic earnings per share are computed by dividing income attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the period. | |||||||||||
Diluted earnings per ordinary share reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares. | |||||||||||
The following table sets forth the computation of basic and diluted income per share for the periods indicated: | |||||||||||
Years Ended December 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
Net income (loss) attributable to E-House ordinary shareholders — basic | $ | (270,357,081 | ) | $ | (56,971,404 | ) | $ | 51,957,425 | |||
Interest of Convertible Senior Notes (including stated interest and amortization of discount and issuance costs) | — | — | $ | 192,566 | |||||||
Net income (loss) attributable to E-House ordinary shareholders — diluted | $ | (270,357,081 | ) | $ | (56,971,404 | ) | $ | 52,149,991 | |||
Weighted average ordinary shares outstanding— basic | 79,769,823 | 106,159,388 | 130,163,165 | ||||||||
Convertible senior notes | — | — | 334,821 | ||||||||
Share options and restricted shares | — | — | 5,282,011 | ||||||||
Weighted average number of ordinary shares outstanding — diluted | 79,769,823 | 106,159,388 | 135,779,997 | ||||||||
Basic earnings (loss) per share | $ | (3.39 | ) | $ | (0.54 | ) | $ | 0.4 | |||
Diluted earnings (loss) per share | $ | (3.39 | ) | $ | (0.54 | ) | $ | 0.38 | |||
Diluted earnings (loss) per share do not include the following instruments as their inclusion would have been anti-dilutive: | |||||||||||
Years Ended December 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
Share options and restricted shares | 3,345,726 | 14,660,788 | — | ||||||||
Non-controlling interest | ' | ||||||||||
(aa) Non-controlling interest | |||||||||||
Before the merger of the Company with CRIC, the majority of the Group’s non-controlling interest is attributable to CRIC, which mainly operates the Company’s real estate information and consulting and real estate online services segments. In April 2012, CRIC became a wholly-owned subsidiary of the Company after the Merger. For the years ended December 31, 2011, 2012, $190,696,283 and $13,547,386 of the Group’s consolidated net loss was attributable to CRIC, respectively. | |||||||||||
The following schedule shows the effects of changes in E-House’s ownership interest in CRIC on equity attributable to E-House: | |||||||||||
Years Ended December 31, | |||||||||||
2011 | 2012 | ||||||||||
$ | $ | ||||||||||
Net income (loss) attributable to E-House | (270,357,081 | ) | (56,971,404 | ) | |||||||
Transfers to the non-controlling interest: | |||||||||||
Decrease in E-House’s additional paid-in capital for purchase of 4,206,600, 64,642,647 CRIC common shares for the years ended December 31, 2011, and 2012 respectively | (120,820 | ) | (149,461,182 | ) | |||||||
Decrease in E-House’s additional paid-in capital for the exercise of CRIC’s options and the vesting of CRIC’s restricted shares | (2,353,082 | ) | (332,951 | ) | |||||||
Net transfers to non-controlling interest | (2,473,902 | ) | (149,794,133 | ) | |||||||
Change from net income attributable to E-House and transfers (to) from non-controlling interest | (272,830,983 | ) | (206,765,537 | ) | |||||||
Comprehensive income | ' | ||||||||||
(ab) Comprehensive income | |||||||||||
Comprehensive income includes all changes in equity except those resulting from investments by owners and distributions to owners. For the years presented, total comprehensive income included net income and foreign currency translation adjustments. | |||||||||||
Recently issued accounting pronouncements | ' | ||||||||||
(ac) Recently issued accounting pronouncements | |||||||||||
In March 2013, the FASB issued ASU 2013-05 related to parent’s accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. When a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity, the parent is required to release any related cumulative translation adjustment into net income. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. This ASU is effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. It should be applied prospectively to derecognition events occurring after the effective date. Prior periods should not be adjusted. Early adoption is permitted. If an entity elects to early adopt the amendments, it should apply them as of the beginning of the entity’s fiscal year of adoption. The adoption of the amendments will not have a material impact on the Group’s consolidated financial statements. | |||||||||||
In July 2013, the FASB issued ASU 2013-11 which provides guidance on financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The ASU requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This ASU applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The adoption of the amendments will not have a material impact on the Group’s consolidated financial statements. | |||||||||||
In July 2013, the FASB issued ASU 2013-08 which provides guidance on financial statement presentation to investment companies. The ASU changes the approach to the investment company assessment in Topic 946, clarifies the characteristics of an investment company, and provides comprehensive guidance for assessing whether an entity is an investment company; it requires an investment company to measure noncontrolling ownership interests in other investment companies at fair value rather than using the equity method of accounting; and it also requires the following additional disclosure: (a) the fact that the entity is an investment company and is applying the guidance in Topic 946, (b) information about changes, if any, in an entity’s status as an investment company, and (c) information about financial support provided or contractually required to be provided by an investment company to any of its investees. The ASU amendments to the investment company assessment primarily affect entities currently within the scope of Topic 946 that will no longer be investment companies as a result of the amendments. Entities that adopted SOP 07-1 before the FASB’s indefinite deferral of that SOP also must assess whether they continue to be within the scope of Topic 946 by determining whether they are investment companies as a result of the amendments to the investment company assessment. Also, entities that are currently not within the scope of Topic 946 may be investment companies as a result of the amendments. The measurement and disclosure amendments to Topic 946 affect all entities that are investment companies. The ASU also decides not to address issues related to the applicability of investment company accounting for real estate entities and the measurement of real estate investment at this time. As such, the ASU does not intend for the amendments to change practice for real estate entities for which it is industry practice to issue financial statements using the measurement principles in Topic 946. The adoption of the amendments will not have a material impact on the Group’s consolidated financial statements. |
Organization_and_Principal_Act1
Organization and Principal Activities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Organization and Principal Activities | ' | |||||||
Schedule of major subsidiaries and the consolidated VIEs | ' | |||||||
Date of | Place of | Percentage of | ||||||
incorporation | incorporation | Ownership | ||||||
Shanghai Real Estate Sales (Group) Co., Ltd. | 15-Aug-00 | PRC | 100 | % | ||||
Shanghai City Rehouse Real Estate Agency Ltd. | 17-May-02 | PRC | 85 | % | ||||
E-House Real Estate Asset Management Co., Ltd. | 22-Aug-06 | Cayman | 51 | % | ||||
Shanghai CRIC Information Technology Co., Ltd | 3-Jul-06 | PRC | 100 | % | ||||
Leju Holdings Ltd. | 20-Nov-13 | Cayman | 100 | % | ||||
Beijing Yisheng Leju Information Services Co., Ltd. (“Beijing Leju”) | 13-Feb-08 | PRC | VIE | |||||
Shanghai Yi Xin E-Commerce Co., Ltd. (“Shanghai Yi Xin”) | 5-Dec-11 | PRC | VIE | |||||
Beijing Jiajujiu E-Commerce Co., Ltd. (“Beijing Jiajujiu”) | 22-Mar-12 | PRC | VIE | |||||
Shanghai Kushuo Information Technology Co., Ltd. (“Shanghai Kushuo”) | 31-Dec-13 | PRC | VIE |
Summary_of_Principal_Accountin2
Summary of Principal Accounting Policies (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Summary of Principal Accounting Policies | ' | ||||||||||
Schedule of ownership interest in foreign owned subsidiaries | ' | ||||||||||
Name of Foreign Owned | The Group’s | ||||||||||
Subsidiaries | Legal Ownership | Name of VIEs | Activities of VIEs | ||||||||
Shanghai Yifang | 100% | Shanghai Kushuo | Operate the real estate offline advertising business | ||||||||
Shanghai SINA Leju | 100% | Beijing Leju | Operate the online advertising and listing business | ||||||||
Shanghai Yi Yue | 100% | Shanghai Yi Xin | Operate the e-commerce business | ||||||||
Beijing Maiteng | 90% | Beijing Jiajujiu | Operate the online home furnishing business | ||||||||
Schedule of financial statement balances included in the consolidated financial statements | ' | ||||||||||
As of December 31, | |||||||||||
2012 | 2013 | ||||||||||
$ | $ | ||||||||||
Cash and cash equivalents | 54,276,035 | 71,095,466 | |||||||||
Accounts receivable, net of allowance for doubtful accounts | 88,871,824 | 87,835,551 | |||||||||
Other current assets | 22,144,577 | 29,693,275 | |||||||||
Amounts due from related parties | 46,067 | — | |||||||||
Total current assets | 165,338,503 | 188,624,292 | |||||||||
Total non-current assets | 62,413,697 | 49,517,785 | |||||||||
Total assets | 227,752,200 | 238,142,077 | |||||||||
Accounts payable | 1,826,257 | 1,505,942 | |||||||||
Accrued payroll and welfare expenses | 18,834,610 | 29,309,329 | |||||||||
Income tax payable | 16,625,365 | 28,793,459 | |||||||||
Other tax payable | 8,807,339 | 11,188,055 | |||||||||
Amounts due to related parties | 3,161,687 | 2,383,293 | |||||||||
Advance from customers | 2,858,051 | 7,150,344 | |||||||||
Liability for exclusive rights, current | 16,973,230 | 8,967,972 | |||||||||
Other current liabilities | 6,117,223 | 9,917,349 | |||||||||
Total current liabilities | 75,203,762 | 99,215,743 | |||||||||
Deferred tax liabilities, non-current | 67,651 | 655,563 | |||||||||
Liability for exclusive rights, non-current | 5,918,812 | — | |||||||||
Total liabilities | 81,190,225 | 99,871,306 | |||||||||
Schedule of financial statement amounts included in the consolidated financial statements | ' | ||||||||||
Years Ended December 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
$ | $ | $ | |||||||||
Total revenues | 120,545,936 | 172,402,066 | 321,004,846 | ||||||||
Cost of revenues | (39,244,543 | ) | (54,276,512 | ) | (59,920,429 | ) | |||||
Net income/(loss) | (4,713,667 | ) | (3,212,138 | ) | 1,503,897 | ||||||
Net cash provided by operating activities | 10,684,846 | 16,020,624 | 72,877,862 | ||||||||
Net cash used in investing activities | (33,554,049 | ) | (17,544,270 | ) | (18,042,241 | ) | |||||
Net cash provided by (used in) financing activities | (3,434,675 | ) | 26,686,813 | (40,248,296 | ) | ||||||
Schedule of accounts receivable | ' | ||||||||||
As of December 31, | |||||||||||
2012 | 2013 | ||||||||||
$ | $ | ||||||||||
Unbilled accounts receivable | 246,730,442 | 268,589,167 | |||||||||
Billed accounts receivable | 57,870,268 | 88,852,935 | |||||||||
Total | 304,600,710 | 357,442,102 | |||||||||
Schedule of expected useful lives of property and equipment | ' | ||||||||||
Leasehold improvements | Over the shorter of the lease term or their estimated useful lives | ||||||||||
Buildings | 30 years | ||||||||||
Furniture, fixtures and equipment | 5 years | ||||||||||
Motor vehicles | 5 years | ||||||||||
Schedule of movement of the allowance for doubtful accounts for accounts receivable, unbilled accounts receivable and customer deposits | ' | ||||||||||
2011 | 2012 | 2013 | |||||||||
$ | $ | $ | |||||||||
Balance as of January 1 | 18,836,275 | 14,811,322 | 36,537,817 | ||||||||
Provisions for doubtful accounts | 9,513,951 | 27,297,288 | 29,099,216 | ||||||||
Write offs | (14,380,877 | ) | (5,633,500 | ) | (6,298,025 | ) | |||||
Changes due to foreign exchange | 841,973 | 62,707 | 1,479,400 | ||||||||
Balance as of December 31 | 14,811,322 | 36,537,817 | 60,818,408 | ||||||||
Schedule of computation of basic and diluted income per share | ' | ||||||||||
Years Ended December 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
Net income (loss) attributable to E-House ordinary shareholders — basic | $ | (270,357,081 | ) | $ | (56,971,404 | ) | $ | 51,957,425 | |||
Interest of Convertible Senior Notes (including stated interest and amortization of discount and issuance costs) | — | — | $ | 192,566 | |||||||
Net income (loss) attributable to E-House ordinary shareholders — diluted | $ | (270,357,081 | ) | $ | (56,971,404 | ) | $ | 52,149,991 | |||
Weighted average ordinary shares outstanding— basic | 79,769,823 | 106,159,388 | 130,163,165 | ||||||||
Convertible senior notes | — | — | 334,821 | ||||||||
Share options and restricted shares | — | — | 5,282,011 | ||||||||
Weighted average number of ordinary shares outstanding — diluted | 79,769,823 | 106,159,388 | 135,779,997 | ||||||||
Basic earnings (loss) per share | $ | (3.39 | ) | $ | (0.54 | ) | $ | 0.4 | |||
Diluted earnings (loss) per share | $ | (3.39 | ) | $ | (0.54 | ) | $ | 0.38 | |||
Years Ended December 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
Share options and restricted shares | 3,345,726 | 14,660,788 | — | ||||||||
Schedule of effects of changes in E-House's ownership interest in CRIC on equity attributable to E-House | ' | ||||||||||
Years Ended December 31, | |||||||||||
2011 | 2012 | ||||||||||
$ | $ | ||||||||||
Net income (loss) attributable to E-House | (270,357,081 | ) | (56,971,404 | ) | |||||||
Transfers to the non-controlling interest: | |||||||||||
Decrease in E-House’s additional paid-in capital for purchase of 4,206,600, 64,642,647 CRIC common shares for the years ended December 31, 2011, and 2012 respectively | (120,820 | ) | (149,461,182 | ) | |||||||
Decrease in E-House’s additional paid-in capital for the exercise of CRIC’s options and the vesting of CRIC’s restricted shares | (2,353,082 | ) | (332,951 | ) | |||||||
Net transfers to non-controlling interest | (2,473,902 | ) | (149,794,133 | ) | |||||||
Change from net income attributable to E-House and transfers (to) from non-controlling interest | (272,830,983 | ) | (206,765,537 | ) |
Acquisitions_of_Subsidiaries_T
Acquisitions of Subsidiaries (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
CRIC | ' | |||||
Purchase price was allocated as follows: | ' | |||||
Schedule of consideration transferred | ' | |||||
Amount | ||||||
$ | ||||||
Cash | 113,124,632 | |||||
Fair value of E-House ordinary shares issued * | 252,106,323 | |||||
Replacement of CRIC share options ** | 31,897,646 | |||||
Total consideration | 397,128,601 | |||||
* The fair value of E-House ordinary shares is based on the closing price of E-House shares as of April 20, 2012 | ||||||
** As disclosed in Note 14, E-House issued the E-House replacement share options and restricted shares in connection with the Merger. The total fair value of the replacement awards was $54,787,620, of which $31,897,646 was attributable to pre-Merger services and included as a component of the consideration transferred in the Merger with the remainder allocated to post-Merger services and included in the Company’s compensation cost after the Merger. The amount attributable to the pre-Merger services was determined based on the fair value of the replacement awards on the date of Merger and a ratio of the pre-Merger services to the greater of the total service period or the original service period of the replacement awards. | ||||||
Schedule of purchase price allocation | ' | |||||
Amount | ||||||
$ | ||||||
Non-controlling interest | 254,656,627 | |||||
Accumulated other comprehensive income | (6,989,208 | ) | ||||
Additional paid-in capital | 149,461,182 | |||||
Total consideration | 397,128,601 | |||||
Firmway | ' | |||||
Purchase price was allocated as follows: | ' | |||||
Schedule of purchase price allocation | ' | |||||
Allocated | Amortization | |||||
Value | Period | |||||
$ | ||||||
Cash | 1,731,778 | |||||
Amount due from related parties | 1,189,679 | |||||
Prepaid rent | 3,815,608 | 20 years | ||||
Liabilities assumed | (1,927 | ) | ||||
Favorable lease term | 5,264,862 | 20 years | ||||
Goodwill | 1,316,215 | |||||
Deferred tax liabilities | (1,316,215 | ) | ||||
Total | 12,000,000 | |||||
Beijing Jiahua | ' | |||||
Purchase price was allocated as follows: | ' | |||||
Schedule of purchase price allocation | ' | |||||
Allocated | Amortization | |||||
Value | Period | |||||
$ | ||||||
Total tangible assets acquired | 78,775 | |||||
Liabilities assumed | (468 | ) | ||||
Customer relationship | 3,307,686 | 7.3 years | ||||
Non-compete agreements | 953,596 | 2.6 years | ||||
Goodwill | 9,541,048 | |||||
Deferred tax liabilities | (1,065,320 | ) | ||||
Total | 12,815,317 | |||||
Beijing Shangtuo | ' | |||||
Purchase price was allocated as follows: | ' | |||||
Schedule of purchase price allocation | ' | |||||
Allocated | Amortization | |||||
Value | Period | |||||
$ | ||||||
Total tangible assets acquired | 78,827 | |||||
Liabilities assumed | (928 | ) | ||||
Customer relationship | 983,494 | 7.3 years | ||||
Non-compete agreements | 413,854 | 2.6 years | ||||
Goodwill | 3,075,575 | |||||
Deferred tax liabilities | (349,337 | ) | ||||
Total | 4,201,485 | |||||
Samas | ' | |||||
Purchase price was allocated as follows: | ' | |||||
Schedule of purchase price allocation | ' | |||||
Allocated | Amortization | |||||
Value | Period | |||||
$ | ||||||
Cash | 1,061,330 | |||||
Total tangible assets acquired | 5,192,503 | |||||
Liabilities assumed | (3,085,972 | ) | ||||
Favorable lease term | 1,379,556 | 17.3 years | ||||
Customer relationship | 184,987 | 17.3 years | ||||
Outstanding contracts | 261,863 | 6.4 years | ||||
Goodwill | 1,462,335 | |||||
Deferred tax liabilities | (456,602 | ) | ||||
Total | 6,000,000 |
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Property and Equipment, Net | ' | |||||
Schedule of property and equipment, net | ' | |||||
As of December 31, | ||||||
2012 | 2013 | |||||
$ | $ | |||||
Leasehold improvements | 16,472,995 | 29,942,721 | ||||
Buildings | 22,480,129 | 21,787,018 | ||||
Furniture, fixtures and equipment | 22,373,236 | 26,076,914 | ||||
Motor vehicles | 7,154,519 | 7,072,583 | ||||
Total | 68,480,879 | 84,879,236 | ||||
Accumulated depreciation | (27,070,874 | ) | (34,802,311 | ) | ||
Property and equipment, net | 41,410,005 | 50,076,925 |
Intangible_Assets_Net_Tables
Intangible Assets, Net (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Intangible Assets, Net | ' | |||||||
Schedule of intangible assets, net | ' | |||||||
Weighted | ||||||||
Average | ||||||||
As of December 31, | Amortization | |||||||
2012 | 2013 | Periods | ||||||
$ | $ | In years | ||||||
Intangible assets not subject to amortization are comprised of the following: | ||||||||
Trademark | 759,122 | 782,607 | ||||||
Intangible assets subject to amortization are comprised of the following: | ||||||||
Advertising agency agreement with SINA | 106,790,000 | 106,790,000 | 5.95 | |||||
License agreements with SINA | 80,660,000 | 80,660,000 | 5.75 | |||||
Exclusive rights with Baidu | 43,955,466 | 45,315,329 | 1.25 | |||||
Customer relationship | 11,781,636 | 12,100,847 | 5.97 | |||||
Database license | 8,300,000 | 8,300,000 | 4.25 | |||||
Favorable lease term | 7,692,972 | 9,541,891 | 17.24 | |||||
Computer software licenses | 5,447,113 | 5,708,188 | 1.62 | |||||
Non-compete agreements | 3,374,566 | 3,420,712 | 0.92 | |||||
Customer contracts | 772,092 | 1,057,842 | 5.94 | |||||
Domain name | 96,518 | 214,611 | 5.53 | |||||
268,870,363 | 273,109,420 | 6.13 | ||||||
Less: Accumulated amortization | ||||||||
Advertising agency agreement | (34,026,224 | ) | (44,495,832 | ) | ||||
License agreements with SINA | (26,214,500 | ) | (34,280,500 | ) | ||||
Exclusive rights with Baidu | (20,632,977 | ) | (34,693,471 | ) | ||||
Customer relationship | (4,359,757 | ) | (6,464,705 | ) | ||||
Database license | (3,173,531 | ) | (4,150,001 | ) | ||||
Favorable lease term | (455,271 | ) | (637,435 | ) | ||||
Computer software licenses | (2,804,503 | ) | (3,963,457 | ) | ||||
Non-compete agreements | (2,144,778 | ) | (3,097,470 | ) | ||||
Customer contracts | (761,504 | ) | (832,950 | ) | ||||
Domain name | (15,073 | ) | (44,456 | ) | ||||
Intangible assets subject to amortization, net | 174,282,245 | 140,449,143 | ||||||
Total intangible assets, net | 175,041,367 | 141,231,750 |
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Goodwill | ' | |||||||||
Schedule of changes in the carrying amount of goodwill by segment | ' | |||||||||
Real Estate | ||||||||||
Real Estate | Real Estate | Information | ||||||||
Online | Brokerage | and Consulting | ||||||||
Services | Services | Services | Total | |||||||
$ | $ | $ | $ | |||||||
Balance as of January 1, 2012 | 40,152,022 | 3,509,326 | 5,667,004 | 49,328,352 | ||||||
Exchange rate translation | 63,965 | 8,422 | — | 72,387 | ||||||
Balance as of December 31, 2012 | 40,215,987 | 3,517,748 | 5,667,004 | 49,400,739 | ||||||
Goodwill recognized upon acquisition | — | — | 1,698,098 | 1,698,098 | ||||||
Exchange rate translation | 394,633 | 106,569 | — | 501,202 | ||||||
Balance as of December 31, 2013 | 40,610,620 | 3,624,317 | 7,365,102 | 51,600,039 | ||||||
As of December 31, 2012 | ||||||||||
Goodwill, gross | 458,038,291 | 3,517,748 | 5,667,004 | 467,223,043 | ||||||
Accumulated impairment charge | (417,822,304 | ) | — | — | (417,822,304 | ) | ||||
Goodwill, net | 40,215,987 | 3,517,748 | 5,667,004 | 49,400,739 | ||||||
As of December 31, 2013 | ||||||||||
Goodwill, gross | 458,432,924 | 3,624,317 | 7,365,102 | 469,422,343 | ||||||
Accumulated impairment charge | (417,822,304 | ) | — | — | (417,822,304 | ) | ||||
Goodwill, net | 40,610,620 | 3,624,317 | 7,365,102 | 51,600,039 |
Other_Income_Loss_Net_Tables
Other Income (Loss), Net (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Income (Loss), Net | ' | |||||||
Schedule of other income | ' | |||||||
Years Ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
$ | $ | $ | ||||||
Gains on marketable securities, realized portion | — | 734,904 | 234,338 | |||||
Gains (loss) on marketable securities, unrealized portion | (8,598,962 | ) | 804,621 | — | ||||
Foreign exchange loss | (1,051,883 | ) | (379,530 | ) | (862,383 | ) | ||
Loss from disposal of subsidiaries | (1,054,348 | ) | — | — | ||||
Amortized discounts related to liability for exclusive rights with Baidu | (891,441 | ) | (1,882,804 | ) | (935,177 | ) | ||
Others | 1,139,423 | (10,061 | ) | 512,007 | ||||
Total other loss | (10,457,211 | ) | (732,870 | ) | (1,051,215 | ) |
Income_Tax_Tables
Income Tax (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Income Tax | ' | |||||||
Schedule of income before income taxes | ' | |||||||
Years Ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
$ | $ | $ | ||||||
Income (loss) Before Income Taxes: | ||||||||
PRC | (3,029,769 | ) | (32,340,085 | ) | 125,404,634 | |||
Other | (464,549,563 | ) | (37,916,141 | ) | (63,455,200 | ) | ||
Total | (467,579,332 | ) | (70,256,226 | ) | 61,949,434 | |||
Schedule of expense (benefit) for income taxes | ' | |||||||
Years Ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
$ | $ | $ | ||||||
Current Tax | ||||||||
PRC | 17,257,121 | 16,813,520 | 44,386,281 | |||||
Other | 58,037 | — | 35,774 | |||||
17,315,158 | 16,813,520 | 44,422,055 | ||||||
Deferred Tax | ||||||||
PRC | (20,039,088 | ) | (15,644,866 | ) | (30,745,061 | ) | ||
Other | — | — | — | |||||
(20,039,088 | ) | (15,644,866 | ) | (30,745,061 | ) | |||
Income tax expense (benefit) | (2,723,930 | ) | 1,168,654 | 13,676,994 | ||||
Schedule of principal components of the deferred income tax assets/ liabilities | ' | |||||||
As of December 31, | ||||||||
2012 | 2013 | |||||||
$ | $ | |||||||
Deferred tax assets: | ||||||||
Accrued salary expenses | 16,586,026 | 24,396,931 | ||||||
Bad debt provision | 8,201,901 | 19,233,885 | ||||||
Net operating loss carry forwards | 24,008,244 | 23,846,831 | ||||||
Advertising expenses temporarily non-deductible | 9,415,848 | 19,970,491 | ||||||
Other | 312,952 | 71,177 | ||||||
Gross deferred tax assets | 58,524,971 | 87,519,315 | ||||||
Valuation allowance | (7,324,717 | ) | (11,237,880 | ) | ||||
Total deferred tax assets | 51,200,254 | 76,281,435 | ||||||
Analysis as: | ||||||||
Current | 41,212,042 | 66,331,906 | ||||||
Non-current | 9,988,212 | 9,949,529 | ||||||
Deferred tax liabilities: | ||||||||
Amortization of intangible and other assets | 36,925,632 | 29,900,565 | ||||||
Total deferred tax liabilities | 36,925,632 | 29,900,565 | ||||||
Analysis as: | ||||||||
Current | — | — | ||||||
Non-current | 36,925,632 | 29,900,565 | ||||||
Schedule of movement of the valuation allowance | ' | |||||||
Years Ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
$ | $ | $ | ||||||
Balance as of January 1, | 183,392 | 689,076 | 7,324,717 | |||||
Additions | 484,262 | 6,625,864 | 3,631,241 | |||||
Changes due to foreign exchange | 21,422 | 9,777 | 281,922 | |||||
Balance as of December 31, | 689,076 | 7,324,717 | 11,237,880 | |||||
Schedule of reconciliation between the provision for income tax computed by applying the statutory tax rate to income before income taxes and the actual provision for income taxes | ' | |||||||
Years Ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
$ | $ | $ | ||||||
PRC income tax rate | 25 | % | 25 | % | 25 | % | ||
Expenses not deductible for tax purposes | (24.26 | )% | (14.86 | )% | 13.6 | % | ||
Effect of tax preference | 0.72 | % | (1.91 | )% | (17.16 | )% | ||
Effect of different tax rate of subsidiary operation in other jurisdiction | (0.83 | )% | (2.14 | )% | (1.47 | )% | ||
Valuation allowance movement | (0.10 | )% | (9.48 | )% | 5.86 | % | ||
Effect of different tax rate of DTA and DTL applied | 0.05 | % | 0.55 | % | (3.22 | )% | ||
Others | — | 1.18 | % | (0.53 | )% | |||
0.58 | % | (1.66 | )% | 22.08 | % | |||
Summary of aggregate amount and per share effect of the tax holiday | ' | |||||||
Years Ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
$ | $ | $ | ||||||
The aggregate dollar effect | 3,046,393 | (1,336,133 | ) | 10,628,117 | ||||
Per share effect — basic | 0.04 | (0.01 | ) | 0.08 | ||||
Per share effect — diluted | 0.04 | (0.01 | ) | 0.08 |
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
E-House Replacement Options and CRIC Replaced Options | ' | |||||||||
Share-Based Compensation | ' | |||||||||
Schedule of assumptions used to estimate the fair value of share options granted | ' | |||||||||
E-House | CRIC | |||||||||
Replacement | Replaced | |||||||||
Options | Options | |||||||||
Average risk-free rate of return | 2.62% | 2.62% | ||||||||
Contractual life of option | 7.53 years | 7.53 years | ||||||||
Average estimated volatility rate | 50.42% | 54.21% | ||||||||
Average dividend yield | 2.03% | — | ||||||||
E-House Replacement Restricted Shares and CRIC Replaced Restricted Shares | ' | |||||||||
Share-Based Compensation | ' | |||||||||
Schedule of assumptions used to estimate the fair value of restricted shares granted | ' | |||||||||
E-House | CRIC | |||||||||
Replacement | Replacement | |||||||||
Restricted | Restricted | |||||||||
Shares | Shares | |||||||||
Average risk-free rate of return | 2.43% | 2.43% | ||||||||
Contractual life of option | 0.85 years | 0.85 years | ||||||||
Average estimated volatility rate | 50.42% | 54.21% | ||||||||
Average dividend yield | 2.03% | — | ||||||||
E-House Plan | ' | |||||||||
Share-Based Compensation | ' | |||||||||
Schedule of assumptions used to estimate the fair value of share options granted | ' | |||||||||
2011 | ||||||||||
Average risk-free rate of return | 2.54% | |||||||||
Contractual life of option | 10 years | |||||||||
Average estimated volatility rate | 77.02% | |||||||||
Average dividend yield | 4.11% | |||||||||
2012 | ||||||||||
Average risk-free rate of return | 2.78% | |||||||||
Contractual life of option | 8.02 years | |||||||||
Average estimated volatility rate | 62.23% | |||||||||
Average dividend yield | 2.45% | |||||||||
Summary of share option activity | ' | |||||||||
Number of | Weighted | Weighted Average | Aggregate | |||||||
Options | Average | Remaining | Intrinsic | |||||||
Exercise Price | Contractual | Value of | ||||||||
Term | Options | |||||||||
$ | $ | |||||||||
Outstanding, as of January 1, 2011 | 1,442,075 | 5.38 | ||||||||
Granted | 1,994,000 | 5.31 | ||||||||
Exercised | (81,495 | ) | 5.37 | |||||||
Forfeited | (22,506 | ) | 5.37 | |||||||
Outstanding, as of January 1, 2012 | 3,332,074 | 5.34 | ||||||||
Granted E-House Replacement Options | 15,107,745 | 4.63 | ||||||||
Exercised | (194,721 | ) | 2.88 | |||||||
Forfeited | (325,504 | ) | 5.01 | |||||||
Outstanding, as of January 1, 2013 | 17,919,594 | 4.15 | — | |||||||
Granted | — | — | ||||||||
Exercised | (4,596,761 | ) | 3.81 | 25,248,554 | ||||||
Forfeited | (372,882 | ) | 5.03 | |||||||
Outstanding, as of December 31, 2013 | 12,949,951 | 4.25 | 6.12 | 140,247,969 | ||||||
Vested and expected to vest as of December 31, 2013 | 12,896,168 | 4.25 | 6.1 | 139,636,669 | ||||||
Exercisable as of December 31, 2013 | 10,264,511 | 4.14 | 5.7 | 112,293,747 | ||||||
Summary of restricted share activity | ' | |||||||||
Number of | Weighted | |||||||||
Restricted | Average | |||||||||
Shares | Grant-date | |||||||||
Fair Value | ||||||||||
$ | ||||||||||
Unvested as of January 1, 2011 | 1,583,035 | 15.9 | ||||||||
Granted | 28,000 | 11.57 | ||||||||
Vested | (630,603 | ) | 16.21 | |||||||
Forfeited | (61,336 | ) | 15.96 | |||||||
Unvested as of January 1, 2012 | 919,096 | 15.56 | ||||||||
Granted | 1,273,000 | 3.43 | ||||||||
Granted E-House Replacement Restricted Shares | 77,875 | 3.47 | ||||||||
Vested | (567,489 | ) | 16.08 | |||||||
Forfeited | (71,844 | ) | 15.81 | |||||||
Unvested as of January 1, 2013 | 1,630,638 | 5.32 | ||||||||
Granted | 1,303,000 | 10.61 | ||||||||
Vested | (769,448 | ) | 7.29 | |||||||
Forfeited | (12,506 | ) | 14.13 | |||||||
Unvested as of December 31, 2013 | 2,151,684 | 7.77 | ||||||||
Leju Plan | ' | |||||||||
Share-Based Compensation | ' | |||||||||
Schedule of assumptions used to estimate the fair value of share options granted | ' | |||||||||
2013 | ||||||||||
Average risk-free rate of return | 2.98% | |||||||||
Contractual life of option | 10 years | |||||||||
Average estimated volatility rate | 56.74% | |||||||||
Average dividend yield | 0.00% | |||||||||
Summary of share option activity | ' | |||||||||
Number of | Exercise | Remaining | Aggregate | |||||||
Options | Price | Contractual | Intrinsic | |||||||
Term | Value of | |||||||||
Options | ||||||||||
$ | ||||||||||
Outstanding, as of January 1, 2013 | — | |||||||||
Granted | 7,192,000 | 4.6 | 10 | |||||||
Replaced by Restricted Share | (600,000 | ) | 4.6 | 10 | ||||||
Exercised | — | |||||||||
Forfeited | — | |||||||||
Outstanding, as of December 31, 2013 | 6,592,000 | 4.6 | 9.92 | — | ||||||
Vested and expected to vest as of December 31, 2013 | 6,592,000 | 4.6 | 9.92 | — | ||||||
Exercisable as of December 31, 2013 | — | — | — | — | ||||||
Summary of restricted share activity | ' | |||||||||
Number of | Weighted | |||||||||
Restricted | Average | |||||||||
Shares | Grant-date | |||||||||
Fair Value | ||||||||||
Unvested as of January 1, 2013 | — | |||||||||
Converted from option | 600,000 | 2.21 | ||||||||
Vested | — | |||||||||
Forfeited | — | |||||||||
Unvested as of December 31, 2013 | 600,000 | 2.21 | ||||||||
CRIC Plan | ' | |||||||||
Share-Based Compensation | ' | |||||||||
Schedule of assumptions used to estimate the fair value of share options granted | ' | |||||||||
2011 | ||||||||||
Average risk-free rate of return | 3.22% | |||||||||
Contractual life of option | 10 years | |||||||||
Average estimated volatility rate | 70.35% | |||||||||
Average dividend yield | 0.00% | |||||||||
Summary of restricted share activity | ' | |||||||||
Number of | Weighted | |||||||||
Restricted | Average | |||||||||
Shares | Grant-date | |||||||||
Fair Value | ||||||||||
$ | ||||||||||
Unvested as of January 1, 2011 | 225,000 | 2.59 | ||||||||
Vested | (75,000 | ) | 2.59 | |||||||
Forfeited | — | — | ||||||||
Unvested as of January 1, 2012 | 150,000 | 2.59 | ||||||||
Vested | (62,500 | ) | 2.08 | |||||||
Replaced by E-House restricted shares | (87,500 | ) | 2.95 | |||||||
Unvested as of December 31, 2012 | — | |||||||||
Options Replacement Program | ' | |||||||||
Share-Based Compensation | ' | |||||||||
Summary of share option activity | ' | |||||||||
Number of | Weighted | |||||||||
Options | Average | |||||||||
Exercise Price | ||||||||||
$ | ||||||||||
Outstanding, as of January 1, 2011 | 10,436,029 | 3.24 | ||||||||
Granted | 8,361,000 | 4.84 | ||||||||
Exercised | (702,201 | ) | 0.99 | |||||||
Forfeited | (791,763 | ) | 3.56 | |||||||
Outstanding, as of January 1, 2012 | 17,303,065 | 4.09 | ||||||||
Exercised | (200,116 | ) | 1.42 | |||||||
Forfeited | (127,921 | ) | 4.96 | |||||||
Replaced by E-House options | (16,975,028 | ) | 4.12 | |||||||
Outstanding, as of December 31, 2012 | — |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Segment Information | ' | |||||||||||||
Summary of selected revenue and expense information for each operating segment | ' | |||||||||||||
Real Estate | ||||||||||||||
Real Estate | Real Estate | Information | ||||||||||||
Online | Brokerage | and Consulting | Other | |||||||||||
2011 | Services | Services | Services | Services | Non-allocated | Total | ||||||||
$ | $ | $ | $ | $ | $ | |||||||||
Revenues | 136,452,384 | 176,441,032 | 61,750,112 | 26,981,453 | — | 401,624,981 | ||||||||
Cost of revenues | (37,583,296 | ) | (97,481,259 | ) | (6,708,358 | ) | (21,271,577 | ) | — | (163,044,490 | ) | |||
Selling, general and administrative expenses | (101,384,497 | ) | (97,293,397 | ) | (48,176,668 | ) | (8,237,382 | ) | (31,595,643 | ) | (286,687,587 | ) | ||
Goodwill Impairment charge | (417,822,304 | ) | — | — | — | — | (417,822,304 | ) | ||||||
Other operating income | 13,937 | 3,222,483 | 2,349,105 | 594,835 | — | 6,180,360 | ||||||||
Income (loss) from operations | (420,323,776 | ) | (15,111,141 | ) | 9,214,191 | (1,932,671 | ) | (31,595,643 | ) | (459,749,040 | ) | |||
Interest income | 675,759 | 697,076 | 881,539 | 93,130 | 279,415 | 2,626,919 | ||||||||
Other expense, net | (1,025,801 | ) | (7,765 | ) | (558,711 | ) | (1,060,778 | ) | (7,804,156 | ) | (10,457,211 | ) | ||
Income (loss) before taxes and equity in affiliates | (420,673,818 | ) | (14,421,830 | ) | 9,537,019 | (2,900,319 | ) | (39,120,384 | ) | (467,579,332 | ) | |||
Income tax benefit (expense) | 305,651 | 6,940,664 | (3,696,794 | ) | (825,591 | ) | — | 2,723,930 | ||||||
Income (loss) before equity in affiliates | (420,368,167 | ) | (7,481,166 | ) | 5,840,225 | (3,725,910 | ) | (39,120,384 | ) | (464,855,402 | ) | |||
Income (loss) from equity in affiliates | (9,609 | ) | 16,297 | (94,385 | ) | (77,413 | ) | — | (165,110 | ) | ||||
Net income (loss) | (420,377,776 | ) | (7,464,869 | ) | 5,745,840 | (3,803,323 | ) | (39,120,384 | ) | (465,020,512 | ) | |||
Real Estate | ||||||||||||||
Real Estate | Real Estate | Information | ||||||||||||
Online | Brokerage | and Consulting | Other | |||||||||||
2012 | Services | Services | Services | Services | Non-allocated | Total | ||||||||
$ | $ | $ | $ | $ | $ | |||||||||
Revenues | 169,755,893 | 208,284,503 | 54,517,612 | 29,881,360 | — | 462,439,368 | ||||||||
Cost of revenues | (54,117,692 | ) | (114,667,241 | ) | (10,783,472 | ) | (23,602,280 | ) | — | (203,170,685 | ) | |||
Selling, general and administrative expenses | (146,997,279 | ) | (92,291,838 | ) | (53,977,975 | ) | (10,544,345 | ) | (33,062,087 | ) | (336,873,524 | ) | ||
Other operating income | 153,340 | 2,982,861 | 2,481,255 | 857,567 | — | 6,475,023 | ||||||||
Income (loss) from operations | (31,205,738 | ) | 4,308,285 | (7,762,580 | ) | (3,407,698 | ) | (33,062,087 | ) | (71,129,818 | ) | |||
Interest income | 257,204 | 425,714 | 624,817 | 55,895 | 242,832 | 1,606,462 | ||||||||
Other income (expense), net | (1,979,450 | ) | 84,937 | (59,136 | ) | (446 | ) | 1,221,225 | (732,870 | ) | ||||
Income (loss) before taxes and equity in affiliates | (32,927,984 | ) | 4,818,936 | (7,196,899 | ) | (3,352,249 | ) | (31,598,030 | ) | (70,256,226 | ) | |||
Income tax benefit (expense) | 2,329,338 | (4,589,892 | ) | 623,227 | 468,673 | — | (1,168,654 | ) | ||||||
Income (loss) before equity in affiliates | (30,598,646 | ) | 229,044 | (6,573,672 | ) | (2,883,576 | ) | (31,598,030 | ) | (71,424,880 | ) | |||
Income (loss) from equity in affiliates | (881 | ) | 195,874 | (14,933 | ) | 195,449 | — | 375,509 | ||||||
Net income (loss) | (30,599,527 | ) | 424,918 | (6,588,605 | ) | (2,688,127 | ) | (31,598,030 | ) | (71,049,371 | ) | |||
Real Estate | ||||||||||||||
Real Estate | Real Estate | Information | ||||||||||||
Online | Brokerage | and Consulting | Other | |||||||||||
2013 | Services | Services | Services | Services | Non-allocated | Total | ||||||||
$ | $ | $ | $ | $ | $ | |||||||||
Revenues | 335,410,902 | 280,776,816 | 76,683,188 | 38,207,927 | — | 731,078,833 | ||||||||
Cost of revenues | (63,990,693 | ) | (168,624,507 | ) | (14,526,318 | ) | (26,894,288 | ) | — | (274,035,806 | ) | |||
Selling, general and administrative expenses | (210,576,230 | ) | (74,728,461 | ) | (58,026,755 | ) | (12,404,049 | ) | (45,211,506 | ) | (400,947,001 | ) | ||
Other operating income | 599,894 | 1,647,257 | 1,950,223 | 720,268 | — | 4,917,642 | ||||||||
Income (loss) from operations | 61,443,873 | 39,071,105 | 6,080,338 | (370,142 | ) | (45,211,506 | ) | 61,013,668 | ||||||
Interest expenses | — | — | — | — | (192,566 | ) | (192,566 | ) | ||||||
Interest income | 1,082,287 | 819,925 | 222,898 | 51,944 | 2,493 | 2,179,547 | ||||||||
Other income (expense), net | (1,185,121 | ) | 87,270 | (479,313 | ) | (11,837 | ) | 537,786 | (1,051,215 | ) | ||||
Income (loss) before taxes and equity in affiliates | 61,341,039 | 39,978,300 | 5,823,923 | (330,035 | ) | (44,863,793 | ) | 61,949,434 | ||||||
Income tax benefit (expense) | (5,447,524 | ) | (10,000,257 | ) | (3,606,417 | ) | (588,344 | ) | 5,965,548 | (13,676,994 | ) | |||
Income (loss) before equity in affiliates | 55,893,515 | 29,978,043 | 2,217,506 | (918,379 | ) | (38,898,245 | ) | 48,272,440 | ||||||
Income (loss) from equity in affiliates | (69,194 | ) | 343,561 | 312,119 | (9,320 | ) | 2,236,683 | 2,813,849 | ||||||
Net income (loss) | 55,824,321 | 30,321,604 | 2,529,625 | (927,699 | ) | (36,661,562 | ) | 51,086,289 | ||||||
Revenues | ' | |||||||||||||
Major customers | ' | |||||||||||||
Schedule of major customers | ' | |||||||||||||
Years Ended December 31, | ||||||||||||||
2011 | 2012 | 2013 | ||||||||||||
$ | $ | $ | ||||||||||||
Customer A | 58,044,764 | 55,924,621 | * | |||||||||||
* indicates the revenue from the customer was less than 10% of total revenue in the year. | ||||||||||||||
Accounts receivable | ' | |||||||||||||
Major customers | ' | |||||||||||||
Schedule of major customers | ' | |||||||||||||
As of December 31, | ||||||||||||||
2012 | 2013 | |||||||||||||
$ | $ | |||||||||||||
Customer A | 52,949,294 | 43,318,976 | ||||||||||||
Customer deposits | ' | |||||||||||||
Major customers | ' | |||||||||||||
Schedule of major customers | ' | |||||||||||||
As of December 31, | ||||||||||||||
2012 | 2013 | |||||||||||||
$ | $ | |||||||||||||
Customer B | 11,136,720 | — | ||||||||||||
Customer C | 26,000,000 | 56,000,000 | ||||||||||||
Customer D | 20,682,480 | — | ||||||||||||
Customer E | * | 8,200,900 | ||||||||||||
* indicates the balance of the customer was less than 10% of total customer deposits as of 31 December, 2012. |
Related_Party_Balances_and_Tra1
Related Party Balances and Transactions (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Related Party Balances and Transactions | ' | |||||||
Schedule of amounts due from related parties | ' | |||||||
As of December 31, | ||||||||
2012 | 2013 | |||||||
$ | $ | |||||||
Customer and supplier | 46,067 | 981,648 | ||||||
Other | 273,313 | 281,768 | ||||||
Total amounts due from related parties | 319,380 | 1,263,416 | ||||||
Schedule of amounts due to related parties | ' | |||||||
As of December 31, | ||||||||
2012 | 2013 | |||||||
$ | $ | |||||||
Management | 262,406 | 2,760,000 | ||||||
Customer and supplier | 3,638,975 | 1,745,263 | ||||||
Other | 380,449 | 1,030,249 | ||||||
Total amounts due to related parties | 4,281,830 | 5,535,512 | ||||||
Schedule of revenue from customers who are related parties | ' | |||||||
Years Ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
$ | $ | $ | ||||||
Beijing China Real Estate Research Association Technology Ltd (“CRERAT”) | 268,380 | 52,120 | 1,084,047 | |||||
SINA Corporation (“SINA”) | * | 1,855 | — | |||||
* Indicates SINA was not the related party of the Company before April, 2012. | ||||||||
Schedule of selling, general and administrative expenses recorded by the group | ' | |||||||
Years Ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
$ | $ | $ | ||||||
CRERAT | 822,249 | 476,706 | — | |||||
Schedule of cost of revenue recorded by the group | ' | |||||||
Years Ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
$ | $ | $ | ||||||
SINA | * | 5,145,039 | 6,033,036 | |||||
* Indicates SINA was not the related party of the Company before April, 2012. | ||||||||
Schedule of accounts receivable from related parties | ' | |||||||
As of December 31, | ||||||||
2012 | 2013 | |||||||
$ | $ | |||||||
CRERAT | 46,067 | 981,648 | ||||||
CRERAT | (1,133,357 | ) | (3,892 | ) | ||||
SINA | (2,505,618 | ) | (1,741,371 | ) | ||||
Schedule of amounts due from (to) affiliates | ' | |||||||
As of December 31, | ||||||||
2012 | 2013 | |||||||
$ | $ | |||||||
Shanghai Yueshun Real Estate Development Co., Ltd. (1) | 273,313 | 281,768 | ||||||
Shanghai Jin Yue Real Estate Development Co., Ltd. (2) | (380,449 | ) | (392,219 | ) | ||||
Suzhou Hehui Xuyuechang Equity Investment Center (“Xuyuechang Center”) (3) | — | (103,331 | ) | |||||
Suzhou Hehui Xuyuerong Equity Investment Center (“Xuyuerong Center”) (3) | — | (480,081 | ) | |||||
Suzhou Hehui Xuyuezhen Equity Investment Center (“Xuyuezhen Center”) (3) | — | (54,618 | ) | |||||
Notes: | ||||||||
(1) Xin Zhou is a director of the entity. The amount receivable (payable) is the rental cost paid (rental income received) by the Group on behalf of the entity. | ||||||||
(2) Xin Zhou is a director of the entity. The amount payable is rental expense paid by the entity on behalf of E-Commercial (Shanghai) Real Estate Advisory Co, Ltd. | ||||||||
(3) The Group holds 0.5%, 0.5% and 0.5% equity interest of Xuyuechang Center, Xuyuerong Center and Xuyuezhen Center, respectively. The Group also acts as a non-acting general partner and provides investment advice to the entities. The amount payable is the advance management fee received by the Group. | ||||||||
Schedule of management fees from funds | ' | |||||||
Years Ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
$ | $ | $ | ||||||
E-House China Real Estate Investment Fund I, L.P. (the “Fund”) | 250,100 | 202,198 | 63,567 | |||||
E-House Shengyuan Equity Investment Center (“Shengyuan Center”) | 1,548,520 | 1,580,360 | 1,549,416 | |||||
E-House Shengquan Equity Investment Center (“Shengquan Center”) | 617,859 | 619,857 | 611,205 | |||||
Wuling Center (Note 4) | — | — | 3,804,667 | |||||
Others | — | — | 305,343 | |||||
Total management fee | 2,416,479 | 2,402,415 | 6,334,198 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Commitments and Contingencies | ' | |||
Schedule of future minimum lease payments under non-cancelable operating lease agreements | ' | |||
Amount | ||||
Year Ended December 31 | $ | |||
2014 | 19,916,212 | |||
2015 | 12,081,983 | |||
2016 | 8,166,279 | |||
2017 | 4,576,659 | |||
2018 | 4,311,688 | |||
Then thereafter | 32,406,039 | |||
Total | 81,458,860 |
Organization_and_Principal_Act2
Organization and Principal Activities (Details) | 12 Months Ended | 1 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Oct. 31, 2009 | |
Shanghai Real Estate Sales (Group) Co., Ltd.. | Shanghai City Rehouse Real Estate Agency Ltd. | E-House Real Estate Asset Management Co., Ltd. | Shanghai CRIC Information Technology Co., Ltd | Leju Holdings Ltd. | COHT | |
China Real Estate Information Corporation | ||||||
Organization and Principal Activities | ' | ' | ' | ' | ' | ' |
SINA's equity interest acquired (as a percent) | ' | ' | ' | ' | ' | 66.00% |
Percentage of Ownership | 100.00% | 85.00% | 51.00% | 100.00% | 100.00% | ' |
Summary_of_Principal_Accountin3
Summary of Principal Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Foreign Owned Subsidiaries | ' |
Term of loan agreement among shareholders of VIEs | '20 years |
Shareholder voting right proxy agreement term | '20 years |
Shareholder voting right proxy agreement extension period | '1 year |
Shanghai Yifang | ' |
Foreign Owned Subsidiaries | ' |
Ownership percentage | 100.00% |
Shanghai SINA Leju | ' |
Foreign Owned Subsidiaries | ' |
Ownership percentage | 100.00% |
Shanghai Yi Yue | ' |
Foreign Owned Subsidiaries | ' |
Ownership percentage | 100.00% |
Beijing Maiteng | ' |
Foreign Owned Subsidiaries | ' |
Ownership percentage | 90.00% |
Summary_of_Principal_Accountin4
Summary of Principal Accounting Policies (Details 2) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Financial statement balances included in the consolidated financial statements | ' | ' | ' | ' |
Cash and cash equivalents | $413,319,174 | $210,841,368 | $392,005,353 | $543,817,633 |
Accounts receivable, net of allowance for doubtful accounts | 357,442,102 | 304,600,710 | ' | ' |
Other current assets | 44,234,499 | 15,962,657 | ' | ' |
Amounts due from related parties | 1,263,416 | 319,380 | ' | ' |
Total current assets | 1,029,163,781 | 672,606,186 | ' | ' |
TOTAL ASSETS | 1,355,520,098 | 1,011,961,518 | ' | ' |
Accounts payable | 11,264,939 | 7,411,735 | ' | ' |
Accrued payroll and welfare expenses | 102,632,157 | 69,027,516 | ' | ' |
Income tax payable | 98,685,965 | 56,141,853 | ' | ' |
Other tax payable | 40,000,505 | 24,864,312 | ' | ' |
Amounts due to related parties | 5,535,512 | 4,281,830 | ' | ' |
Advance from customers | 24,617,144 | 13,601,078 | ' | ' |
Liability for exclusive rights, current | 8,967,972 | 16,973,230 | ' | ' |
Other current liabilities | 62,466,610 | 27,178,988 | ' | ' |
Total current liabilities | 356,624,276 | 222,283,924 | ' | ' |
Deferred tax liabilities, non-current | 29,900,565 | 36,925,632 | ' | ' |
Liability for exclusive rights, non-current | ' | 5,918,812 | ' | ' |
Total liabilities | 519,649,069 | 266,847,569 | ' | ' |
Financial statement amounts included in the consolidated financial statements | ' | ' | ' | ' |
Total revenues | 731,078,833 | 462,439,368 | 401,624,981 | ' |
Cost of revenues | -274,035,806 | -203,170,685 | -163,044,490 | ' |
Net income/(loss) | 51,086,289 | -71,049,371 | -465,020,512 | ' |
Net cash provided by operating activities | 113,892,140 | -22,183,296 | -19,979,823 | ' |
Net cash used in investing activities | -53,093,289 | -33,425,540 | -72,595,762 | ' |
Net cash provided by (used in) financing activities | 135,756,603 | -125,773,431 | -69,221,077 | ' |
Consolidated VIE's assets that are collateral for the VIEs' obligations | 0 | ' | ' | ' |
Group's VIEs | ' | ' | ' | ' |
Financial statement balances included in the consolidated financial statements | ' | ' | ' | ' |
Cash and cash equivalents | 71,095,466 | 54,276,035 | ' | ' |
Accounts receivable, net of allowance for doubtful accounts | 87,835,551 | 88,871,824 | ' | ' |
Other current assets | 29,693,275 | 22,144,577 | ' | ' |
Amounts due from related parties | ' | 46,067 | ' | ' |
Total current assets | 188,624,292 | 165,338,503 | ' | ' |
Total non-current assets | 49,517,785 | 62,413,697 | ' | ' |
TOTAL ASSETS | 238,142,077 | 227,752,200 | ' | ' |
Accounts payable | 1,505,942 | 1,826,257 | ' | ' |
Accrued payroll and welfare expenses | 29,309,329 | 18,834,610 | ' | ' |
Income tax payable | 28,793,459 | 16,625,365 | ' | ' |
Other tax payable | 11,188,055 | 8,807,339 | ' | ' |
Amounts due to related parties | 2,383,293 | 3,161,687 | ' | ' |
Advance from customers | 7,150,344 | 2,858,051 | ' | ' |
Liability for exclusive rights, current | 8,967,972 | 16,973,230 | ' | ' |
Other current liabilities | 9,917,349 | 6,117,223 | ' | ' |
Total current liabilities | 99,215,743 | 75,203,762 | ' | ' |
Deferred tax liabilities, non-current | 655,563 | 67,651 | ' | ' |
Liability for exclusive rights, non-current | ' | 5,918,812 | ' | ' |
Total liabilities | 99,871,306 | 81,190,225 | ' | ' |
Financial statement amounts included in the consolidated financial statements | ' | ' | ' | ' |
Total revenues | 321,004,846 | 172,402,066 | 120,545,936 | ' |
Cost of revenues | -59,920,429 | -54,276,512 | -39,244,543 | ' |
Net income/(loss) | 1,503,897 | -3,212,138 | -4,713,667 | ' |
Net cash provided by operating activities | 72,877,862 | 16,020,624 | 10,684,846 | ' |
Net cash used in investing activities | -18,042,241 | -17,544,270 | -33,554,049 | ' |
Net cash provided by (used in) financing activities | ($40,248,296) | $26,686,813 | ($3,434,675) | ' |
Summary_of_Principal_Accountin5
Summary of Principal Accounting Policies (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Fair value of financial instruments | ' | ' | ' | ' |
Goodwill impairment charge | $417,822,304 | $0 | $0 | $417,822,304 |
Customer deposits, non-current portion | ' | 652,300 | 744,092 | ' |
Liability for exclusive rights, non-current | ' | ' | 5,918,812 | ' |
Nonrecurring | ' | ' | ' | ' |
Fair value of financial instruments | ' | ' | ' | ' |
Fair value of asset | ' | 0 | 0 | ' |
Fair value of liability | ' | 0 | 0 | ' |
Fair value | ' | ' | ' | ' |
Fair value of financial instruments | ' | ' | ' | ' |
Customer deposits, non-current portion | ' | 614,507 | 694,020 | ' |
Liability for exclusive rights, non-current | ' | $0 | $5,918,812 | ' |
Summary_of_Principal_Accountin6
Summary of Principal Accounting Policies (Details 4) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted cash | ' | ' |
Restricted cash accounts | $2,310,116 | $2,748,976 |
Secondary real estate brokerage services | ' | ' |
Restricted cash | ' | ' |
Restricted cash accounts | 2,146,098 | 2,589,880 |
Primary real estate agency services | ' | ' |
Restricted cash | ' | ' |
Restricted cash accounts | $164,018 | $159,096 |
Summary_of_Principal_Accountin7
Summary of Principal Accounting Policies (Details 5) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Customer deposits | ' | ' | ' |
Customer deposits secured by right to purchase units of property in a development project at a prescribed price | $0 | $33,038,106 | ' |
Accounts receivable | ' | ' | ' |
Allowance for doubtful accounts | 60,232,453 | 35,953,537 | ' |
Unbilled accounts receivable | 268,589,167 | 246,730,442 | ' |
Billed accounts receivable | 88,852,935 | 57,870,268 | ' |
Total | 357,442,102 | 304,600,710 | ' |
Properties held for sale | ' | ' | ' |
Impairment of properties held for sale | $0 | $0 | $0 |
Minimum | ' | ' | ' |
Investment in affiliates | ' | ' | ' |
Ownership interest to represent significant influence (as a percent) | 20.00% | ' | ' |
Ownership interest to represent more than minor influence for investments in investment funds (as a percent) | 3.00% | ' | ' |
Summary_of_Principal_Accountin8
Summary of Principal Accounting Policies (Details 6) | 12 Months Ended |
Dec. 31, 2013 | |
Buildings | ' |
Property and equipment, net | ' |
Estimated useful life | '30 years |
Furniture, fixtures and equipment | ' |
Property and equipment, net | ' |
Estimated useful life | '5 years |
Motor vehicles | ' |
Property and equipment, net | ' |
Estimated useful life | '5 years |
Summary_of_Principal_Accountin9
Summary of Principal Accounting Policies (Details 7) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Revenue recognition | ' | ' | ' |
Total revenues | $731,078,833 | $462,439,368 | $401,624,981 |
Real estate consulting services | Minimum | ' | ' | ' |
Revenue recognition | ' | ' | ' |
Contract period | '1 month | ' | ' |
Real estate consulting services | Maximum | ' | ' | ' |
Revenue recognition | ' | ' | ' |
Contract period | '12 months | ' | ' |
Subscriptions | Minimum | ' | ' | ' |
Revenue recognition | ' | ' | ' |
Contract period | '6 months | ' | ' |
Subscriptions | Maximum | ' | ' | ' |
Revenue recognition | ' | ' | ' |
Contract period | '12 months | ' | ' |
Data integration services | Minimum | CRIC | ' | ' | ' |
Revenue recognition | ' | ' | ' |
Contract period | '3 months | ' | ' |
Data integration services | Maximum | CRIC | ' | ' | ' |
Revenue recognition | ' | ' | ' |
Contract period | '12 months | ' | ' |
Multiple element arrangements | ' | ' | ' |
Revenue recognition | ' | ' | ' |
Total revenues | $71,908,552 | $74,042,253 | $72,124,694 |
Recovered_Sheet1
Summary of Principal Accounting Policies (Details 8) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Advertising expenses | ' | ' | ' |
Advertising expenses | $100,457,370 | $51,936,863 | $31,146,070 |
Foreign currency translation | ' | ' | ' |
Exchange loss | 862,383 | 379,530 | 1,051,883 |
Government subsidies | ' | ' | ' |
Cash subsidies | 4,917,642 | 6,475,023 | 6,180,360 |
Allowance for doubtful accounts for accounts receivable and customer deposits | ' | ' | ' |
Movement of the allowance for doubtful accounts for accounts receivable and customer deposits | ' | ' | ' |
Balance at the beginning of the period | 36,537,817 | 14,811,322 | 18,836,275 |
Provisions for doubtful accounts | 29,099,216 | 27,297,288 | 9,513,951 |
Write offs | -6,298,025 | -5,633,500 | -14,380,877 |
Changes due to foreign exchange | 1,479,400 | 62,707 | 841,973 |
Balance at the end of the period | $60,818,408 | $36,537,817 | $14,811,322 |
Recovered_Sheet2
Summary of Principal Accounting Policies (Details 9) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Earnings per share | ' | ' | ' |
Net income (loss) attributable to E-House ordinary shareholders - basic | $51,957,425 | ($56,971,404) | ($270,357,081) |
Interest of Convertible Senior Notes (including stated interest and amortization of discount and issuance costs) | 192,566 | ' | ' |
Net income (loss) attributable to E-House ordinary shareholders diluted | 52,149,991 | -56,971,404 | -270,357,081 |
Weighted average ordinary shares outstanding - basic | 130,163,165 | 106,159,388 | 79,769,823 |
Convertible senior notes | 334,821 | ' | ' |
Share options and restricted shares | 5,282,011 | ' | ' |
Weighted average number of ordinary shares outstanding diluted | 135,779,997 | 106,159,388 | 79,769,823 |
Basic earnings (loss) per share | $0.40 | ($0.54) | ($3.39) |
Diluted earnings (loss) per share | $0.38 | ($0.54) | ($3.39) |
Diluted earnings (loss) per share that does not include instruments whose inclusion would be anti-dilutive | ' | ' | ' |
Share options and restricted shares excluded from computation of diluted earnings (loss) per share as their inclusion would have been anti-dilutive (in shares) | ' | 14,660,788 | 3,345,726 |
Non-controlling interest | ' | ' | ' |
Net income (loss) allocated to CRIC | 871,136 | 14,077,967 | 194,663,431 |
Effects of changes in E-House's ownership interest in CRIC on equity attributable to E-House | ' | ' | ' |
Net income (loss) attributable to E-House | 51,957,425 | -56,971,404 | -270,357,081 |
CRIC | ' | ' | ' |
Non-controlling interest | ' | ' | ' |
Net income (loss) allocated to CRIC | ' | 13,547,386 | 190,696,283 |
Effects of changes in E-House's ownership interest in CRIC on equity attributable to E-House | ' | ' | ' |
Net income (loss) attributable to E-House | ' | -56,971,404 | -270,357,081 |
Transfers to the non-controlling interest: | ' | ' | ' |
Decrease in E-House's additional paid-in capital for purchase of 4,206,600 ,64,642,647 CRIC common shares for the years ended December 31, 2011, and 2012 respectively | ' | -149,461,182 | -120,820 |
Purchase of common shares to effect changes in E-house's ownership interest | ' | 64,642,647 | 4,206,600 |
Decrease in E-House's additional paid-in capital for the exercise of CRIC's options and the vesting of CRIC's restricted shares | ' | -332,951 | -2,353,082 |
Net transfers to non-controlling interest | ' | -149,794,133 | -2,473,902 |
Change from net income attributable to E-House and transfers (to) from non-controlling interest | ' | ($206,765,537) | ($272,830,983) |
Properties_Held_for_Sale_Detai
Properties Held for Sale (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
property | property | property | |
Properties Held for Sale | ' | ' | ' |
Number of properties obtained in settlement of accounts receivable | 14 | 6 | 5 |
Properties held for sale obtained in settlement of accounts receivable | $6,678,302 | $970,625 | $1,479,405 |
Number of properties transferred for settlement of customer deposit | 36 | 0 | 0 |
Properties held for sale transferred in settlement of customer deposit | 9,928,558 | ' | ' |
Gain (loss) from sale of properties held for sale | 118,559 | 45,936 | 417,610 |
Carrying amount of properties held for sale | 15,304,927 | 611,892 | ' |
Properties held for sale transferred to property and equipment | 0 | 1,281,008 | 2,546,721 |
Number of properties acquired | 237 | ' | ' |
Advance payment for properties to be held for sale | $60,076,026 | ' | ' |
Commercial properties | ' | ' | ' |
Properties Held for Sale | ' | ' | ' |
Number of properties title transfer in process | 52 | ' | ' |
Car parking space properties | ' | ' | ' |
Properties Held for Sale | ' | ' | ' |
Number of properties obtained in settlement of accounts receivable | 5 | ' | ' |
Number of properties held for sale | 5 | ' | ' |
Number of properties title transfer in process | 5 | ' | ' |
Residential properties | ' | ' | ' |
Properties Held for Sale | ' | ' | ' |
Number of properties held for sale | 44 | 2 | ' |
Number of properties title transfer in process | 140 | ' | ' |
Investment_in_Affiliates_Detai
Investment in Affiliates (Details) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2011 | Jul. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | 31-May-12 | |
USD ($) | USD ($) | USD ($) | Star Capital | Star Capital | Star Capital | Star Capital | Wuling Center | Wuling Center | Wuling Center | Wuling Center | Wuling Center | Wuling Center | Shanghai Yidezhen Equity Investment Center | |
USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | Xin Zhou | ||||||
Investment in affiliates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment made | $5,766,873 | $2,161,001 | $21,567,027 | ' | ' | $15,735,900 | 100,000,000 | ' | $4,428,486 | 27,000,000 | $2,386,440 | 15,000,000 | ' | ' |
Amount received as a return of capital | ' | ' | ' | $5,740,630 | 35,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest held (as a percent) | ' | ' | ' | ' | ' | 3.76% | 3.76% | ' | 6.52% | 6.52% | 6.52% | 6.52% | 4.89% | ' |
Purchase price allocation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 51.00% |
Percentage of vote of limited partners vote required to remove general partner without cause | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' |
Number of quarters in arrears income (loss) from equity method investment is recorded (in months) | ' | ' | ' | ' | ' | ' | ' | '3 months | ' | ' | ' | ' | ' | ' |
Acquisitions_of_Subsidiaries_D
Acquisitions of Subsidiaries (Details) (CRIC, USD $) | 0 Months Ended | 12 Months Ended |
Apr. 20, 2012 | Dec. 31, 2013 | |
CRIC | ' | ' |
Purchase price was allocated as follows: | ' | ' |
Number of ADS shares to be issued for each share of acquiree | 0.6 | ' |
Cash paid for each share of acquiree | $1.75 | ' |
Consideration in cash | $113,124,632 | ' |
Consideration in shares | 38,785,588 | ' |
Total consideration | ' | ' |
Cash | 113,124,632 | ' |
Fair value of E-House ordinary shares issued | 252,106,323 | ' |
Replacement of CRIC share options | 31,897,646 | ' |
Total consideration | 397,128,601 | ' |
E-House replacement share options and restricted shares issued in connection with the Merger | 54,787,620 | ' |
Purchase price allocation | ' | ' |
Non-controlling interest | 254,656,627 | ' |
Accumulated other comprehensive income | -6,989,208 | ' |
Additional paid-in capital | 149,461,182 | ' |
Total consideration | 397,128,601 | ' |
Gain or loss recognized in consolidated net income | ' | 0 |
Gain or loss recognized in comprehensive income | ' | $0 |
Acquisitions_of_Subsidiaries_D1
Acquisitions of Subsidiaries (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 |
Samas | Samas | Samas | Samas | ||||
item | Favorable lease term | Customer relationship | Outstanding contracts | ||||
Purchase price was allocated as follows: | ' | ' | ' | ' | ' | ' | ' |
Number of owned leased commercial buildings | ' | ' | ' | 4 | ' | ' | ' |
Allocated Value | ' | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | $1,061,330 | ' | ' | ' |
Total tangible assets acquired | ' | ' | ' | 5,192,503 | ' | ' | ' |
Liabilities assumed | ' | ' | ' | -3,085,972 | ' | ' | ' |
Intangible assets acquired: | ' | ' | ' | ' | 1,379,556 | 184,987 | 261,863 |
Goodwill | 51,600,039 | 49,400,739 | 49,328,352 | 1,462,335 | ' | ' | ' |
Deferred tax liabilities | ' | ' | ' | -456,602 | ' | ' | ' |
Total consideration | ' | ' | ' | $6,000,000 | ' | ' | ' |
Amortization Period | ' | ' | ' | ' | '17 years 3 months 18 days | '17 years 3 months 18 days | '6 years 4 months 24 days |
Acquisitions_of_Subsidiaries_D2
Acquisitions of Subsidiaries (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2011 | Mar. 31, 2011 |
Firmway | Firmway | ||||
Favorable lease term | |||||
Purchase price was allocated as follows: | ' | ' | ' | ' | ' |
Term of lease | ' | ' | ' | '20 years | ' |
Allocated Value | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | $1,731,778 | ' |
Amount due from related parties | ' | ' | ' | 1,189,679 | ' |
Prepaid rent | ' | ' | ' | 3,815,608 | ' |
Liabilities assumed | ' | ' | ' | -1,927 | ' |
Goodwill | 51,600,039 | 49,400,739 | 49,328,352 | 1,316,215 | ' |
Deferred tax liabilities | ' | ' | ' | -1,316,215 | ' |
Intangible assets acquired: | ' | ' | ' | ' | 5,264,862 |
Total consideration | ' | ' | ' | $12,000,000 | ' |
Amortization Period | ' | ' | ' | ' | '20 years |
Amortization Period of prepaid rent | ' | ' | ' | '20 years | ' |
Acquisitions_of_Subsidiaries_D3
Acquisitions of Subsidiaries (Details 4) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 31, 2011 | Aug. 31, 2011 | Aug. 31, 2011 | Aug. 31, 2011 |
Beijing Jiahua | Beijing Jiahua | Beijing Jiahua | Beijing Jiahua | ||||
Beijing Advertisement | Customer relationship | Non-compete agreements | |||||
Allocated Value | ' | ' | ' | ' | ' | ' | ' |
Total tangible assets acquired | ' | ' | ' | $78,775 | ' | ' | ' |
Liabilities assumed | ' | ' | ' | -468 | ' | ' | ' |
Goodwill | 51,600,039 | 49,400,739 | 49,328,352 | 9,541,048 | ' | ' | ' |
Deferred tax liabilities | ' | ' | ' | -1,065,320 | ' | ' | ' |
Intangible assets acquired: | ' | ' | ' | ' | ' | 3,307,686 | 953,596 |
Total consideration | ' | ' | ' | 12,815,317 | ' | ' | ' |
Amortization Period | ' | ' | ' | ' | ' | '7 years 3 months 18 days | '2 years 7 months 6 days |
Percentage of subsidiary equity interest as consideration | ' | ' | ' | ' | 16.00% | ' | ' |
Fair value of equity interest | ' | ' | ' | ' | 3,398,954 | ' | ' |
Cash consideration | ' | ' | ' | $9,416,363 | ' | ' | ' |
Acquisitions_of_Subsidiaries_D4
Acquisitions of Subsidiaries (Details 5) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 31, 2011 | Aug. 31, 2011 | Aug. 31, 2011 | Aug. 31, 2011 |
Beijing Shangtuo | Beijing Shangtuo | Beijing Shangtuo | Beijing Shangtuo | ||||
Beijing Advertisement | Customer relationship | Non-compete agreements | |||||
Allocated Value | ' | ' | ' | ' | ' | ' | ' |
Total tangible assets acquired | ' | ' | ' | $78,827 | ' | ' | ' |
Liabilities assumed | ' | ' | ' | -928 | ' | ' | ' |
Goodwill | 51,600,039 | 49,400,739 | 49,328,352 | 3,075,575 | ' | ' | ' |
Deferred tax liabilities | ' | ' | ' | -349,337 | ' | ' | ' |
Intangible assets acquired: | ' | ' | ' | ' | ' | 983,494 | 413,854 |
Total consideration | ' | ' | ' | 4,201,485 | ' | ' | ' |
Amortization Period | ' | ' | ' | ' | ' | '7 years 3 months 18 days | '2 years 7 months 6 days |
Percentage of subsidiary equity interest as consideration | ' | ' | ' | ' | 5.00% | ' | ' |
Fair value of equity interest | ' | ' | ' | ' | 1,062,173 | ' | ' |
Cash consideration | ' | ' | ' | $3,139,312 | ' | ' | ' |
Property_and_Equipment_Net_Det
Property and Equipment, Net (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Property and Equipment, Net | ' | ' | ' |
Property and equipment, gross | $84,879,236 | $68,480,879 | ' |
Accumulated depreciation | -34,802,311 | -27,070,874 | ' |
Property and equipment, net | 50,076,925 | 41,410,005 | ' |
Depreciation expense | 8,206,163 | 8,684,626 | 6,994,115 |
Leasehold improvements | ' | ' | ' |
Property and Equipment, Net | ' | ' | ' |
Property and equipment, gross | 29,942,721 | 16,472,995 | ' |
Buildings | ' | ' | ' |
Property and Equipment, Net | ' | ' | ' |
Property and equipment, gross | 21,787,018 | 22,480,129 | ' |
Furniture, fixtures and equipment | ' | ' | ' |
Property and Equipment, Net | ' | ' | ' |
Property and equipment, gross | 26,076,914 | 22,373,236 | ' |
Motor vehicles | ' | ' | ' |
Property and Equipment, Net | ' | ' | ' |
Property and equipment, gross | $7,072,583 | $7,154,519 | ' |
Intangible_Assets_Net_Details
Intangible Assets, Net (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Intangible Assets, Net | ' | ' | ' |
Intangible assets subject to amortization, gross | $273,109,420 | $268,870,363 | ' |
Intangible assets subject to amortization, net | 140,449,143 | 174,282,245 | ' |
Total intangible assets, net | 141,231,750 | 175,041,367 | ' |
Weighted Average Amortization Periods | '6 years 1 month 17 days | ' | ' |
Amortization amount | 935,177 | 1,882,804 | 891,441 |
Amortization expense | 37,009,330 | 38,701,651 | 28,864,727 |
Amortization expense expected to be recorded | ' | ' | ' |
2014 | 31,029,152 | ' | ' |
2015 | 23,841,999 | ' | ' |
2016 | 21,368,169 | ' | ' |
2017 | 21,093,212 | ' | ' |
2018 | 20,113,766 | ' | ' |
Advertising agency agreement with SINA | ' | ' | ' |
Intangible Assets, Net | ' | ' | ' |
Intangible assets subject to amortization, gross | 106,790,000 | 106,790,000 | ' |
Less: Accumulated amortization | -44,495,832 | -34,026,224 | ' |
Weighted Average Amortization Periods | '5 years 11 months 12 days | ' | ' |
License agreements with SINA | ' | ' | ' |
Intangible Assets, Net | ' | ' | ' |
Intangible assets subject to amortization, gross | 80,660,000 | 80,660,000 | ' |
Less: Accumulated amortization | -34,280,500 | -26,214,500 | ' |
Weighted Average Amortization Periods | '5 years 9 months | ' | ' |
Exclusive rights with Baidu | ' | ' | ' |
Intangible Assets, Net | ' | ' | ' |
Intangible assets subject to amortization, gross | 45,315,329 | 43,955,466 | ' |
Less: Accumulated amortization | -34,693,471 | -20,632,977 | ' |
Weighted Average Amortization Periods | '1 year 3 months | ' | ' |
Purchase price of intangible assets | ' | ' | 47,612,100 |
Fair value of intangible assets | ' | ' | 43,847,992 |
Difference between fair value and principal amount | 3,764,108 | ' | ' |
Payment to acquire exclusive rights | 15,347,915 | 14,249,180 | 9,435,994 |
Amortization amount | 935,177 | 1,882,804 | 891,441 |
Customer relationship | ' | ' | ' |
Intangible Assets, Net | ' | ' | ' |
Intangible assets subject to amortization, gross | 12,100,847 | 11,781,636 | ' |
Less: Accumulated amortization | -6,464,705 | -4,359,757 | ' |
Weighted Average Amortization Periods | '5 years 11 months 19 days | ' | ' |
Database license | ' | ' | ' |
Intangible Assets, Net | ' | ' | ' |
Intangible assets subject to amortization, gross | 8,300,000 | 8,300,000 | ' |
Less: Accumulated amortization | -4,150,001 | -3,173,531 | ' |
Weighted Average Amortization Periods | '4 years 3 months | ' | ' |
Favorable lease term | ' | ' | ' |
Intangible Assets, Net | ' | ' | ' |
Intangible assets subject to amortization, gross | 9,541,891 | 7,692,972 | ' |
Less: Accumulated amortization | -637,435 | -455,271 | ' |
Weighted Average Amortization Periods | '17 years 2 months 26 days | ' | ' |
Computer software licenses | ' | ' | ' |
Intangible Assets, Net | ' | ' | ' |
Intangible assets subject to amortization, gross | 5,708,188 | 5,447,113 | ' |
Less: Accumulated amortization | -3,963,457 | -2,804,503 | ' |
Weighted Average Amortization Periods | '1 year 7 months 13 days | ' | ' |
Non-compete agreements | ' | ' | ' |
Intangible Assets, Net | ' | ' | ' |
Intangible assets subject to amortization, gross | 3,420,712 | 3,374,566 | ' |
Less: Accumulated amortization | -3,097,470 | -2,144,778 | ' |
Weighted Average Amortization Periods | '11 months 1 day | ' | ' |
Customer contracts | ' | ' | ' |
Intangible Assets, Net | ' | ' | ' |
Intangible assets subject to amortization, gross | 1,057,842 | 772,092 | ' |
Less: Accumulated amortization | -832,950 | -761,504 | ' |
Weighted Average Amortization Periods | '5 years 11 months 8 days | ' | ' |
Domain name | ' | ' | ' |
Intangible Assets, Net | ' | ' | ' |
Intangible assets subject to amortization, gross | 214,611 | 96,518 | ' |
Less: Accumulated amortization | -44,456 | -15,073 | ' |
Weighted Average Amortization Periods | '5 years 6 months 11 days | ' | ' |
Trademark | ' | ' | ' |
Intangible Assets, Net | ' | ' | ' |
Intangible assets not subject to amortization | $782,607 | $759,122 | ' |
Goodwill_Details
Goodwill (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Goodwill | ' | ' | ' | ' |
Balance at the beginning of the period | ' | $49,400,739 | $49,328,352 | ' |
Goodwill recognized upon acquisition | ' | 1,698,098 | ' | ' |
Exchange rate translation | ' | 501,202 | 72,387 | ' |
Balance at the end of the period | ' | 51,600,039 | 49,400,739 | 49,328,352 |
Goodwill, gross | ' | 469,422,343 | 467,223,043 | ' |
Accumulated impairment charge | ' | -417,822,304 | -417,822,304 | ' |
Goodwill, net | ' | 51,600,039 | 49,400,739 | 49,328,352 |
Impairment of goodwill | ' | ' | ' | ' |
Discount rate (as a percent) | ' | 16.50% | ' | ' |
Terminal growth rate (as a percent) | ' | 2.00% | ' | ' |
Goodwill impairment charge | 417,822,304 | 0 | 0 | 417,822,304 |
CRIC | ' | ' | ' | ' |
Impairment of goodwill | ' | ' | ' | ' |
Decline in stock price experienced by CRIC (as a percent) | 31.00% | ' | ' | ' |
Real Estate Online Services | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' |
Balance at the beginning of the period | ' | 40,215,987 | 40,152,022 | ' |
Exchange rate translation | ' | 394,633 | 63,965 | ' |
Balance at the end of the period | ' | 40,610,620 | 40,215,987 | ' |
Goodwill, gross | ' | 458,432,924 | 458,038,291 | ' |
Accumulated impairment charge | ' | -417,822,304 | -417,822,304 | ' |
Goodwill, net | ' | 40,610,620 | 40,215,987 | ' |
Real Estate Brokerage Services | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' |
Balance at the beginning of the period | ' | 3,517,748 | 3,509,326 | ' |
Exchange rate translation | ' | 106,569 | 8,422 | ' |
Balance at the end of the period | ' | 3,624,317 | 3,517,748 | ' |
Goodwill, gross | ' | 3,624,317 | 3,517,748 | ' |
Goodwill, net | ' | 3,624,317 | 3,517,748 | ' |
Real Estate Information and Consulting Services | ' | ' | ' | ' |
Goodwill | ' | ' | ' | ' |
Balance at the beginning of the period | ' | 5,667,004 | ' | ' |
Goodwill recognized upon acquisition | ' | 1,698,098 | ' | ' |
Balance at the end of the period | ' | 7,365,102 | ' | 5,667,004 |
Goodwill, gross | ' | 7,365,102 | 5,667,004 | ' |
Goodwill, net | ' | $7,365,102 | ' | $5,667,004 |
Convertible_Senior_Notes_Detai
Convertible Senior Notes (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 |
Notes | |||
item | |||
Convertible senior notes | ' | ' | ' |
Aggregate principal amount issued | ' | ' | $135,000,000 |
Interest rate (as a percent) | ' | ' | 2.75% |
Number of shares receivable upon conversion | ' | ' | 1 |
Ordinary shares, par value (in dollars per share) | $0.00 | $0.00 | $0.00 |
Initial conversion rate | ' | ' | 0.059538 |
Price per ADS on conversion (in dollars per share) | ' | ' | $16.80 |
Repurchase price as a percentage of principal amount of the notes | ' | ' | 100.00% |
Net proceeds from the offering | ' | ' | 130,073,430 |
Discounts to the initial purchaser | 3,375,000 | ' | 3,375,000 |
Debt issuance costs | ' | ' | 1,551,570 |
Portion of net proceeds used to purchase a call option | ' | ' | 44,999,998 |
Number of ADS covered by portion of net proceeds used to purchase a call option | ' | ' | 3,482,972 |
Notes converted | ' | ' | $0 |
Repurchase_of_Shares_Details
Repurchase of Shares (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Repurchase of shares | $17,772,586 | $1,569,815 | $20,071,589 |
ADS | ' | ' | ' |
Period within which the entity is authorized to repurchase shares | ' | ' | '1 year |
Aggregate value of shares authorized to be repurchased | ' | ' | 50,000,000 |
Repurchase of shares | 3,582,133 | 371,141 | 2,399,000 |
Repurchase of shares | 17,772,586 | 1,569,815 | 20,071,589 |
Excess of purchase price over par value | 17,769,004 | 1,569,444 | 20,069,191 |
ADS | CRIC | ' | ' | ' |
Period within which the entity is authorized to repurchase shares | ' | ' | '1 year |
Aggregate value of shares authorized to be repurchased | ' | ' | 50,000,000 |
Repurchase of shares | ' | ' | 4,206,600 |
Repurchase of shares | ' | ' | 29,862,792 |
Additional Paid-in Capital | ' | ' | ' |
Repurchase of shares | 15,942,072 | 1,569,444 | 8,915,855 |
Additional Paid-in Capital | CRIC | ' | ' | ' |
Excess of purchase price over par value | ' | ' | 120,820 |
Retained earnings | ' | ' | ' |
Repurchase of shares | 1,826,932 | 0 | 11,153,336 |
Retained earnings | CRIC | ' | ' | ' |
Excess of purchase price over par value | ' | ' | 166,092 |
Non-controlling Interest | CRIC | ' | ' | ' |
Excess of purchase price over par value | ' | ' | $29,575,880 |
Dividends_Details
Dividends (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Dividends | ' | ' | ' |
Cash dividend | $19,946,745 | $11,866,670 | $20,209,842 |
Ordinary Shares | ' | ' | ' |
Dividends | ' | ' | ' |
Cash dividend approved by the board of directors (in dollars per share) | $0.15 | $0.15 | $0.25 |
ADS shares | ' | ' | ' |
Dividends | ' | ' | ' |
Cash dividend approved by the board of directors (in dollars per share) | $0.15 | $0.15 | $0.25 |
Other_Income_Loss_Net_Details
Other Income (Loss), Net (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Other Income (Loss), Net | ' | ' | ' |
Gains on marketable securities, realized portion | $234,338 | $734,904 | ' |
Gains (loss) on marketable securities, unrealized portion | ' | 804,621 | -8,598,962 |
Foreign exchange loss | -862,383 | -379,530 | -1,051,883 |
Loss from disposal of subsidiaries | ' | ' | -1,054,348 |
Amortized discounts related to liability for exclusive rights with Baidu | -935,177 | -1,882,804 | -891,441 |
Others | 512,007 | -10,061 | 1,139,423 |
Total other loss | ($1,051,215) | ($732,870) | ($10,457,211) |
Income_Tax_Details
Income Tax (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income (loss) Before Income Taxes: | ' | ' | ' |
Income (loss) before taxes and equity in affiliates | $61,949,434 | ($70,256,226) | ($467,579,332) |
Current Tax | ' | ' | ' |
Current Tax | 44,422,055 | 16,813,520 | 17,315,158 |
Deferred Tax | ' | ' | ' |
Deferred taxes | -30,745,061 | -15,644,866 | -20,039,088 |
Income tax expense (benefit) | 13,676,994 | 1,168,654 | -2,723,930 |
PRC | ' | ' | ' |
Income (loss) Before Income Taxes: | ' | ' | ' |
Income (loss) before taxes and equity in affiliates | 125,404,634 | -32,340,085 | -3,029,769 |
Current Tax | ' | ' | ' |
Current Tax | 44,386,281 | 16,813,520 | 17,257,121 |
Deferred Tax | ' | ' | ' |
Deferred taxes | -30,745,061 | -15,644,866 | -20,039,088 |
Other | ' | ' | ' |
Income (loss) Before Income Taxes: | ' | ' | ' |
Income (loss) before taxes and equity in affiliates | -63,455,200 | -37,916,141 | -464,549,563 |
Current Tax | ' | ' | ' |
Current Tax | $35,774 | ' | $58,037 |
Income_Tax_Details_2
Income Tax (Details 2) | 0 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 48 Months Ended | 36 Months Ended | 24 Months Ended | 36 Months Ended | 12 Months Ended | ||||||||
Jan. 02, 2008 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 31, 2008 | Dec. 31, 2007 | Dec. 31, 2007 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2016 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
China | China | China | China | China | China | China | China | China | China | Hong Kong | Macau | Macau | |||||
Shanghai CRIC | Shanghai CRIC | Shanghai SINA Leju | Shanghai SINA Leju | Shanghai Fangxin information technology Co., Ltd. | Chongqing E-House Western Real Estate Investment Consultant Co., Ltd. | Chongqing E-House Western Real Estate Investment Consultant Co., Ltd. | Minimum | Maximum | |||||||||
High and new technology enterprise | Software enterprise | High and new technology enterprise | Software enterprise | Software enterprise | |||||||||||||
Income Tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax rate (as a percent) | ' | 25.00% | 25.00% | 25.00% | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferential income tax rate (as a percent) | ' | 5.00% | ' | ' | ' | 15.00% | ' | 15.00% | 12.50% | 15.00% | 12.50% | 12.50% | 15.00% | 15.00% | ' | ' | ' |
Period over which preferential tax rate graduate increase to statutory enterprise income tax rate | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16.50% | ' | ' |
Income tax rate under graduated rate schedule for 2008 (as a percent) | ' | ' | ' | ' | ' | ' | 18.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax rate under graduated rate schedule for 2009 (as a percent) | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax rate under graduated rate schedule for 2010 (as a percent) | ' | ' | ' | ' | ' | ' | 22.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax rate under graduated rate schedule for 2011 (as a percent) | ' | ' | ' | ' | ' | ' | 24.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax rate under graduated rate schedule for 2012 and thereafter (as a percent) | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of tax reduction | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | 50.00% | 50.00% | ' | ' | ' | ' | ' |
Progressive tax rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 12.00% |
Income_Tax_Details_3
Income Tax (Details 3) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
USD ($) | CNY | USD ($) | USD ($) | |
Income Tax | ' | ' | ' | ' |
Period of statute of limitation years if the underpayment of taxes is due to computational errors | '3 years | '3 years | ' | ' |
Period of statute of limitation extended under special circumstances | '5 years | '5 years | ' | ' |
Minimum amount of underpayment of tax liability considered for special circumstances | $16,402 | 100,000 | ' | ' |
Period of statute of limitation in case of transfer pricing related adjustment | '10 years | '10 years | ' | ' |
Deferred tax assets: | ' | ' | ' | ' |
Accrued salary expenses | 24,396,931 | ' | 16,586,026 | ' |
Bad debt provision | 19,233,885 | ' | 8,201,901 | ' |
Net operating loss carry forwards | 23,846,831 | ' | 24,008,244 | ' |
Advertising expenses temporarily non-deductible | 19,970,491 | ' | 9,415,848 | ' |
Other | 71,177 | ' | 312,952 | ' |
Gross deferred tax assets | 87,519,315 | ' | 58,524,971 | ' |
Valuation allowance | -11,237,880 | ' | -7,324,717 | -689,076 |
Total deferred tax assets | 76,281,435 | ' | 51,200,254 | ' |
Analysis as: | ' | ' | ' | ' |
Current | 66,331,906 | ' | 41,212,042 | ' |
Non-current | 9,949,529 | ' | 9,988,212 | ' |
Deferred tax liabilities: | ' | ' | ' | ' |
Amortization of intangible and other assets | 29,900,565 | ' | 36,925,632 | ' |
Total deferred tax liabilities | 29,900,565 | ' | 36,925,632 | ' |
Analysis as: | ' | ' | ' | ' |
Non-current | 29,900,565 | ' | 36,925,632 | ' |
Movement of the valuation allowance | ' | ' | ' | ' |
Balance at the beginning of the period | 7,324,717 | ' | 689,076 | 183,392 |
Additions | 3,631,241 | ' | 6,625,864 | 484,262 |
Changes due to foreign exchange | 281,922 | ' | 9,777 | 21,422 |
Balance at the end of the period | $11,237,880 | ' | $7,324,717 | $689,076 |
Income_Tax_Details_4
Income Tax (Details 4) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Reconciliation between the provision for income tax computed by applying the statutory tax rate to income before income taxes and the actual provision for income taxes | ' | ' | ' |
PRC income tax rate (as a percent) | 25.00% | 25.00% | 25.00% |
Expenses not deductible for tax purposes (as a percent) | 13.60% | -14.86% | -24.26% |
Effect of tax preference (as a percent) | -17.16% | -1.91% | 0.72% |
Effect of different tax rate of subsidiary operation in other jurisdiction (as a percent) | -1.47% | -2.14% | -0.83% |
Valuation allowance movement (as a percent) | 5.86% | -9.48% | -0.10% |
Effect of different tax rate of DTA and DTL applied (as a percent) | -3.22% | 0.55% | 0.05% |
Other (as a percent) | -0.53% | 1.18% | ' |
Effective income tax rate (as a percent) | 22.08% | -1.66% | 0.58% |
Aggregate amount and per share effect of the tax holiday | ' | ' | ' |
The aggregate dollar effect | $10,628,117 | ($1,336,133) | $3,046,393 |
Per share effect basic | $0.08 | ($0.01) | $0.04 |
Per share effect diluted | $0.08 | ($0.01) | $0.04 |
Tax losses carry forward | 93,844,512 | 97,503,509 | ' |
Undistributed earnings of PRC subsidiaries | 346,400,000 | ' | ' |
Provision for PRC dividend withholding tax | $0 | ' | ' |
Income_Tax_Details_5
Income Tax (Details 5) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Income Tax | ' |
Preferential income tax rate (as a percent) | 5.00% |
Minimum | ' |
Income Tax | ' |
Amount of Unrecognized deferred tax liabilities | 14.6 |
Withholding tax rate of profit distribution | 5.00% |
Maximum | ' |
Income Tax | ' |
Amount of Unrecognized deferred tax liabilities | 29.1 |
Withholding tax rate of profit distribution | 10.00% |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||||||||
Aug. 31, 2013 | Nov. 30, 2012 | Oct. 31, 2010 | Dec. 31, 2006 | 29-May-12 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 9-May-12 | 29-May-12 | Apr. 20, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 20, 2012 | Dec. 31, 2012 | Nov. 30, 2013 | Nov. 30, 2013 | Dec. 31, 2013 | Dec. 02, 2013 | Dec. 31, 2013 | Dec. 02, 2013 | Dec. 16, 2013 | Sep. 30, 2008 | Apr. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Apr. 20, 2012 | Apr. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 20, 2012 | Dec. 31, 2012 | |
E-House Plan | E-House Plan | E-House Plan | E-House Plan | E-House Plan | E-House Plan | E-House Plan | E-House Plan | E-House Plan | E-House Plan | E-House Plan | E-House Plan | E-House Plan | E-House Plan | E-House Plan | E-House Plan | E-House Plan | Leju Plan | Leju Plan | Leju Plan | Leju Plan | Leju Plan | Leju Plan | Leju Plan | CRIC Plan | CRIC Plan | CRIC Plan | CRIC Plan | CRIC Plan | CRIC Plan | CRIC Plan | CRIC Plan | CRIC Plan | CRIC Plan | CRIC Plan | CRIC Plan | CRIC Plan | |
Share Options: | Share Options: | Share Options: | Share Options: | Share Options: | Share Options: | E-House Replacement Options | E-House Replacement Options | Restricted Shares: | Restricted Shares: | Restricted Shares: | E-House Replacement Restricted Shares | E-House Replacement Restricted Shares | Maximum | Share Options: | Share Options: | Restricted Shares: | Restricted Shares: | Restricted Shares: | Maximum | Share Options: | Share Options: | Share Options: | Share Options: | Share Options: | Share Options: | CRIC Replaced Options | Restricted Shares: | Restricted Shares: | Restricted Shares: | CRIC Replaced Restricted Shares | CRIC Replaced Restricted Shares | ||||||
Directors | Employees | Employees | Directors and employees | Group's employees | Minimum | Maximum | |||||||||||||||||||||||||||||||
item | item | ||||||||||||||||||||||||||||||||||||
Share-Based Compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares authorized | ' | ' | ' | 3,636,364 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares that may be issued as a percentage of total outstanding shares | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation expense | ' | ' | ' | ' | ' | $12,817,935 | $17,157,015 | $2,903,861 | ' | ' | ' | ' | $5,668,460 | $9,348,941 | $10,668,117 | ' | ' | ' | ' | $381,874 | ' | $34,758 | ' | ' | ' | $0 | $8,532,772 | $18,088,339 | ' | ' | ' | ' | $0 | $54,688 | $180,322 | ' | ' |
Award vesting period | ' | ' | ' | '3 years | ' | '3 years | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | '3 years | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | '3 years | ' | ' | ' | ' | ' | ' |
Additional number of shares authorized | 6,644,659 | 1,273,000 | 4,013,619 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expiration period | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted for purchase of shares | ' | ' | ' | ' | ' | 0 | 0 | 1,994,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,361,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted for purchase of shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,192,000 | ' | ' | ' | ' | ' | 16,975,028 | ' | ' | ' | ' | 16,975,028 | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,303,000 | 1,273,000 | 28,000 | 77,875 | 77,875 | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -12,506 | -71,844 | -61,336 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 87,500 | 87,500 |
Exercise price of shares granted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $5.31 | ' | ' | ' | $4.63 | ' | ' | ' | ' | ' | ' | ' | $4.60 | $4.60 | ' | ' | $4.60 | ' | ' | ' | $4.84 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of option at the date of grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10.61 | $3.43 | $11.57 | ' | $3.47 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4.55 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price of shares granted after reduction (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.34 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price of shares granted, low end of the range (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6.75 | $0.72 | ' | ' | ' | ' | $3.38 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.75 | ' | ' | ' | $0.64 | ' | ' | ' | $3 | ' |
Exercise price of shares granted, high end of the range (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8.99 | $8.99 | ' | ' | ' | ' | $6.75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7.02 | ' | ' | ' | $8 | ' | ' | ' | $6 | ' |
Incremental compensation cost of the vested options replaced | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,811,935 | 289,930 | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of employees holding options for which exercise price is reduced | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 394 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of replacement options exchanged with replaced options granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,107,745 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assumptions used in the binomial model | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average risk-free rate of return (as a percent) | ' | ' | ' | ' | 2.78% | ' | ' | 2.54% | ' | ' | 2.62% | ' | ' | ' | ' | 2.43% | ' | ' | ' | 2.98% | ' | ' | ' | ' | ' | ' | ' | 3.22% | ' | ' | ' | 2.62% | ' | ' | ' | 2.43% | ' |
Contractual life of option | ' | ' | ' | ' | '8 years 7 days | ' | ' | '10 years | ' | ' | '7 years 6 months 11 days | ' | ' | ' | ' | '10 months 6 days | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | '7 years 6 months 11 days | ' | ' | ' | '10 months 6 days | ' |
Average estimated volatility rate (as a percent) | ' | ' | ' | ' | 62.23% | ' | ' | 77.02% | ' | ' | 50.42% | ' | ' | ' | ' | 50.42% | ' | ' | ' | 56.74% | ' | ' | ' | ' | ' | ' | ' | 70.35% | ' | ' | ' | 54.21% | ' | ' | ' | 54.21% | ' |
Average dividend yield (as a percent) | ' | ' | ' | ' | 2.45% | ' | ' | 4.11% | ' | ' | 2.03% | ' | ' | ' | ' | 2.03% | ' | ' | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional disclosure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average grant-date fair value of options granted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.16 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average grant-date fair value of options granted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $3.31 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.21 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation expense | ' | ' | ' | ' | ' | 12,817,935 | 17,157,015 | 2,903,861 | ' | ' | ' | ' | 5,668,460 | 9,348,941 | 10,668,117 | ' | ' | ' | ' | 381,874 | ' | 34,758 | ' | ' | ' | 0 | 8,532,772 | 18,088,339 | ' | ' | ' | ' | 0 | 54,688 | 180,322 | ' | ' |
Total intrinsic value of options exercised | ' | ' | ' | ' | ' | $25,248,554 | $436,259 | $422,455 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $750,115 | $2,954,839 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total number of options previously granted subject to modification (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 396,050 | 4,211,879 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ShareBased_Compensation_Detail1
Share-Based Compensation (Details 2) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | |
E-House Plan | E-House Plan | E-House Plan | E-House Plan | E-House Plan | E-House Plan | E-House Plan | Leju Plan | Leju Plan | CRIC Plan | CRIC Plan | CRIC Plan | CRIC Plan | CRIC Plan | CRIC Plan | |
Share Options: | Share Options: | Share Options: | E-House Replacement Options | Restricted Shares: | Restricted Shares: | Restricted Shares: | Share Options: | Restricted Shares: | Share Options: | Share Options: | Share Options: | Restricted Shares: | Restricted Shares: | Restricted Shares: | |
Number of Options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | 17,919,594 | 3,332,074 | 1,442,075 | ' | ' | ' | ' | ' | ' | ' | 17,303,065 | 10,436,029 | ' | ' | ' |
Granted (in shares) | ' | ' | 1,994,000 | 15,107,745 | ' | ' | ' | 7,192,000 | ' | ' | ' | 8,361,000 | ' | ' | ' |
Replaced by Restricted Share | ' | ' | ' | ' | ' | ' | ' | ' | -600,000 | ' | ' | ' | ' | -87,500 | ' |
Exercised (in shares) | -4,596,761 | -194,721 | -81,495 | ' | ' | ' | ' | ' | ' | ' | -200,116 | -702,201 | ' | ' | ' |
Forfeited (in shares) | -372,882 | -325,504 | -22,506 | ' | ' | ' | ' | ' | ' | ' | -127,921 | -791,763 | ' | ' | ' |
Replaced by E-House options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -16,975,028 | ' | ' | ' | ' |
Outstanding at the end of the period (in shares) | 12,949,951 | 17,919,594 | 3,332,074 | ' | ' | ' | ' | 6,592,000 | ' | ' | ' | 17,303,065 | ' | ' | ' |
Vested and expected to vest at the end of the period (in shares) | 12,896,168 | ' | ' | ' | ' | ' | ' | 6,592,000 | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period (in shares) | 10,264,511 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $4.15 | $5.34 | $5.38 | ' | ' | ' | ' | ' | ' | ' | $4.09 | $3.24 | ' | ' | ' |
Granted (in dollars per share) | ' | ' | $5.31 | $4.63 | ' | ' | ' | $4.60 | ' | ' | ' | $4.84 | ' | ' | ' |
Replaced by Restricted Share (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $4.60 | ' | ' | ' | ' | $2.95 | ' |
Exercised (in dollars per share) | $3.81 | $2.88 | $5.37 | ' | ' | ' | ' | ' | ' | ' | $1.42 | $0.99 | ' | ' | ' |
Forfeited (in dollars per share) | $5.03 | $5.01 | $5.37 | ' | ' | ' | ' | ' | ' | ' | $4.96 | $3.56 | ' | ' | ' |
Replaced by E-House options (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4.12 | ' | ' | ' | ' |
Outstanding at the end of the period (in dollars per share) | $4.25 | $4.15 | $5.34 | ' | ' | ' | ' | $4.60 | ' | ' | ' | $4.09 | ' | ' | ' |
Vested and expected to vest at the end of the period (in dollars per share) | $4.25 | ' | ' | ' | ' | ' | ' | $4.60 | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period (in dollars per share) | $4.14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average remaining contractual term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' |
Replaced by Restricted Share | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period | '6 years 1 month 13 days | ' | ' | ' | ' | ' | ' | '9 years 11 months 1 day | ' | ' | ' | ' | ' | ' | ' |
Vested and expected to vest at the end of the period | '6 years 1 month 6 days | ' | ' | ' | ' | ' | ' | '9 years 11 months 1 day | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period | '5 years 8 months 12 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate Intrinsic value of options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised | $25,248,554 | $436,259 | $422,455 | ' | ' | ' | ' | ' | ' | ' | $750,115 | $2,954,839 | ' | ' | ' |
Outstanding at the end of the period | 140,247,969 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and expected to vest at the end of the period | 139,636,669 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period | 112,293,747 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional disclosure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average grant-date fair value of options granted (in dollars per share) | ' | ' | $3.31 | ' | ' | ' | ' | $2.21 | ' | ' | ' | ' | ' | ' | ' |
Compensation expense | 12,817,935 | 17,157,015 | 2,903,861 | ' | 5,668,460 | 9,348,941 | 10,668,117 | 381,874 | 34,758 | 0 | 8,532,772 | 18,088,339 | 0 | 54,688 | 180,322 |
Total unrecognized compensation expense | $6,003,327 | ' | ' | ' | $14,640,782 | ' | ' | $13,394,410 | $1,141,286 | ' | ' | ' | ' | ' | ' |
Weighted-average period over which cost is expected to be recognized | '8 months 19 days | ' | ' | ' | '2 years 9 months 11 days | ' | ' | '2 years 11 months 1 day | '2 years 11 months 1 day | ' | ' | ' | ' | ' | ' |
ShareBased_Compensation_Detail2
Share-Based Compensation (Details 3) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2006 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 20, 2012 | Dec. 31, 2012 | Apr. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 20, 2012 | Dec. 31, 2012 | Aug. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 30, 2013 | Dec. 31, 2013 | Dec. 02, 2013 | |
E-House Plan | E-House Plan | E-House Plan | E-House Plan | E-House Plan | E-House Plan | CRIC Plan | CRIC Plan | CRIC Plan | CRIC Plan | CRIC Plan | Equity compensation arrangement with senior managers of Beijing Advertisement | Equity compensation arrangement with senior managers of Beijing Advertisement | Equity compensation arrangement with senior managers of Beijing Advertisement | Equity compensation arrangement with senior managers of Beijing Advertisement | Leju Plan | Leju Plan | Leju Plan | |
Restricted Shares: | Restricted Shares: | Restricted Shares: | E-House Replacement Restricted Shares | E-House Replacement Restricted Shares | Restricted Shares: | Restricted Shares: | Restricted Shares: | CRIC Replaced Restricted Shares | CRIC Replaced Restricted Shares | item | Restricted Shares: | Restricted Shares: | ||||||
Summary of restricted share activity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award vesting period | '3 years | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' |
Unvested at the beginning of the period (in shares) | ' | 1,630,638 | 919,096 | 1,583,035 | ' | ' | ' | 150,000 | 225,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | 1,303,000 | 1,273,000 | 28,000 | 77,875 | 77,875 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Converted from option (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' |
Vested (in shares) | ' | -769,448 | -567,489 | -630,603 | ' | ' | ' | -62,500 | -75,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in shares) | ' | -12,506 | -71,844 | -61,336 | ' | ' | ' | ' | ' | 87,500 | 87,500 | ' | ' | ' | ' | ' | ' | ' |
Replaced by E-House restricted shares | ' | ' | ' | ' | ' | ' | ' | -87,500 | ' | ' | ' | ' | ' | ' | ' | ' | -600,000 | ' |
Unvested at the end of the period (in shares) | ' | 2,151,684 | 1,630,638 | 919,096 | ' | ' | ' | ' | 150,000 | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' |
Weighted average grant-date fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested at the beginning of the period (in dollars per share) | ' | $5.32 | $15.56 | $15.90 | ' | ' | ' | $2.59 | $2.59 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | $10.61 | $3.43 | $11.57 | ' | $3.47 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4.55 |
Converted from option (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.21 | ' |
Vested (in dollars per share) | ' | $7.29 | $16.08 | $16.21 | ' | ' | ' | $2.08 | $2.59 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in dollars per share) | ' | $14.13 | $15.81 | $15.96 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Replaced by E-House restricted shares (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $2.95 | ' | ' | ' | ' | ' | ' | ' | ' | $4.60 | ' |
Unvested at the end of the period (in dollars per share) | ' | $7.77 | $5.32 | $15.56 | ' | ' | ' | ' | $2.59 | ' | ' | ' | ' | ' | ' | ' | $2.21 | ' |
Additional disclosure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total fair value of restricted shares vested | ' | $5,612,379 | $9,127,103 | $10,219,188 | ' | ' | ' | $130,000 | $194,196 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation expense | ' | 14,640,782 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | 1,141,286 | ' |
Weighted-average period over which cost is expected to be recognized | ' | '2 years 9 months 11 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 11 months 1 day | ' |
Compensation expense | ' | 5,668,460 | 9,348,941 | 10,668,117 | ' | ' | 0 | 54,688 | 180,322 | ' | ' | ' | 0 | 563,109 | 182,918 | ' | 34,758 | ' |
Equity interest granted (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.50% | ' | ' | ' | ' | ' | ' |
Service period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '16 months | ' | ' | ' | ' | ' | ' |
Fair value of equity interest granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $731,676 | ' | ' | ' | ' | ' | ' |
Number of senior managers in equity compensation arrangement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Employee Benefit Plans | ' | ' | ' |
Contribution to employee benefit plans | $45,924,681 | $40,724,902 | $33,021,394 |
Distribution_of_Profits_Detail
Distribution of Profits (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Distribution of Profits | ' | ' |
Minimum percentage of after-tax profits of PRC subsidiaries and VIEs set aside to fund a statutory reserve | 10.00% | ' |
Statutory reserve as a percentage of registered capital up to which after-tax profit of PRC subsidiaries and VIEs shall be transferred to statutory reserve | 50.00% | ' |
Statutory reserve fund | $35,633,687 | $28,560,250 |
Restricted portion of net assets, including general reserve and registered capital of PRC subsidiaries and VIEs | 174,046,356 | 160,336,452 |
Restricted portion of net assets attributed to general reserve and registered capital of the VIEs | $9,977,982 | $8,027,725 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
segment | segment | segment | ||
Segment Information | ' | ' | ' | ' |
Number of operating segments | ' | 5 | 5 | 7 |
Segment Information | ' | ' | ' | ' |
Revenues | ' | $731,078,833 | $462,439,368 | $401,624,981 |
Cost of revenues | ' | -274,035,806 | -203,170,685 | -163,044,490 |
Selling, general and administrative expenses | ' | -400,947,001 | -336,873,524 | -286,687,587 |
Goodwill Impairment charge | -417,822,304 | 0 | 0 | -417,822,304 |
Other operating income | ' | 4,917,642 | 6,475,023 | 6,180,360 |
Income (loss) from operations | ' | 61,013,668 | -71,129,818 | -459,749,040 |
Interest expense | ' | -192,566 | ' | ' |
Interest income | ' | 2,179,547 | 1,606,462 | 2,626,919 |
Other income (expense), net | ' | -1,051,215 | -732,870 | -10,457,211 |
Income (loss) before taxes and equity in affiliates | ' | 61,949,434 | -70,256,226 | -467,579,332 |
Income tax benefit (expense) | ' | -13,676,994 | -1,168,654 | 2,723,930 |
Income (loss) before equity in affiliates | ' | 48,272,440 | -71,424,880 | -464,855,402 |
Income (loss) from equity in affiliates | ' | 2,813,849 | 375,509 | -165,110 |
Net income (loss) | ' | 51,086,289 | -71,049,371 | -465,020,512 |
Primary real estate agency services and secondary real estate brokerage services | ' | ' | ' | ' |
Segment Information | ' | ' | ' | ' |
Number of separate units for which results are reviewed as a single business units | ' | 2 | 2 | ' |
Real estate advertising services and promotional events services | ' | ' | ' | ' |
Segment Information | ' | ' | ' | ' |
Number of separate units for which results are reviewed as a single business units | ' | 2 | 2 | ' |
Operating Segment | Real Estate Online Services | ' | ' | ' | ' |
Segment Information | ' | ' | ' | ' |
Revenues | ' | 335,410,902 | 169,755,893 | 136,452,384 |
Cost of revenues | ' | -63,990,693 | -54,117,692 | -37,583,296 |
Selling, general and administrative expenses | ' | -210,576,230 | -146,997,279 | -101,384,497 |
Goodwill Impairment charge | ' | ' | ' | -417,822,304 |
Other operating income | ' | 599,894 | 153,340 | 13,937 |
Income (loss) from operations | ' | 61,443,873 | -31,205,738 | -420,323,776 |
Interest income | ' | 1,082,287 | 257,204 | 675,759 |
Other income (expense), net | ' | -1,185,121 | -1,979,450 | -1,025,801 |
Income (loss) before taxes and equity in affiliates | ' | 61,341,039 | -32,927,984 | -420,673,818 |
Income tax benefit (expense) | ' | -5,447,524 | 2,329,338 | 305,651 |
Income (loss) before equity in affiliates | ' | 55,893,515 | -30,598,646 | -420,368,167 |
Income (loss) from equity in affiliates | ' | -69,194 | -881 | -9,609 |
Net income (loss) | ' | 55,824,321 | -30,599,527 | -420,377,776 |
Operating Segment | Real Estate Brokerage Services | ' | ' | ' | ' |
Segment Information | ' | ' | ' | ' |
Revenues | ' | 280,776,816 | 208,284,503 | 176,441,032 |
Cost of revenues | ' | -168,624,507 | -114,667,241 | -97,481,259 |
Selling, general and administrative expenses | ' | -74,728,461 | -92,291,838 | -97,293,397 |
Other operating income | ' | 1,647,257 | 2,982,861 | 3,222,483 |
Income (loss) from operations | ' | 39,071,105 | 4,308,285 | -15,111,141 |
Interest income | ' | 819,925 | 425,714 | 697,076 |
Other income (expense), net | ' | 87,270 | 84,937 | -7,765 |
Income (loss) before taxes and equity in affiliates | ' | 39,978,300 | 4,818,936 | -14,421,830 |
Income tax benefit (expense) | ' | -10,000,257 | -4,589,892 | 6,940,664 |
Income (loss) before equity in affiliates | ' | 29,978,043 | 229,044 | -7,481,166 |
Income (loss) from equity in affiliates | ' | 343,561 | 195,874 | 16,297 |
Net income (loss) | ' | 30,321,604 | 424,918 | -7,464,869 |
Operating Segment | Real Estate Information and Consulting Services | ' | ' | ' | ' |
Segment Information | ' | ' | ' | ' |
Revenues | ' | 76,683,188 | 54,517,612 | 61,750,112 |
Cost of revenues | ' | -14,526,318 | -10,783,472 | -6,708,358 |
Selling, general and administrative expenses | ' | -58,026,755 | -53,977,975 | -48,176,668 |
Other operating income | ' | 1,950,223 | 2,481,255 | 2,349,105 |
Income (loss) from operations | ' | 6,080,338 | -7,762,580 | 9,214,191 |
Interest income | ' | 222,898 | 624,817 | 881,539 |
Other income (expense), net | ' | -479,313 | -59,136 | -558,711 |
Income (loss) before taxes and equity in affiliates | ' | 5,823,923 | -7,196,899 | 9,537,019 |
Income tax benefit (expense) | ' | -3,606,417 | 623,227 | -3,696,794 |
Income (loss) before equity in affiliates | ' | 2,217,506 | -6,573,672 | 5,840,225 |
Income (loss) from equity in affiliates | ' | 312,119 | -14,933 | -94,385 |
Net income (loss) | ' | 2,529,625 | -6,588,605 | 5,745,840 |
Operating Segment | Other Services | ' | ' | ' | ' |
Segment Information | ' | ' | ' | ' |
Revenues | ' | 38,207,927 | 29,881,360 | 26,981,453 |
Cost of revenues | ' | -26,894,288 | -23,602,280 | -21,271,577 |
Selling, general and administrative expenses | ' | -12,404,049 | -10,544,345 | -8,237,382 |
Other operating income | ' | 720,268 | 857,567 | 594,835 |
Income (loss) from operations | ' | -370,142 | -3,407,698 | -1,932,671 |
Interest income | ' | 51,944 | 55,895 | 93,130 |
Other income (expense), net | ' | -11,837 | -446 | -1,060,778 |
Income (loss) before taxes and equity in affiliates | ' | -330,035 | -3,352,249 | -2,900,319 |
Income tax benefit (expense) | ' | -588,344 | 468,673 | -825,591 |
Income (loss) before equity in affiliates | ' | -918,379 | -2,883,576 | -3,725,910 |
Income (loss) from equity in affiliates | ' | -9,320 | 195,449 | -77,413 |
Net income (loss) | ' | -927,699 | -2,688,127 | -3,803,323 |
Non-allocated | ' | ' | ' | ' |
Segment Information | ' | ' | ' | ' |
Selling, general and administrative expenses | ' | -45,211,506 | -33,062,087 | -31,595,643 |
Income (loss) from operations | ' | -45,211,506 | -33,062,087 | -31,595,643 |
Interest expense | ' | -192,566 | ' | ' |
Interest income | ' | 2,493 | 242,832 | 279,415 |
Other income (expense), net | ' | 537,786 | 1,221,225 | -7,804,156 |
Income (loss) before taxes and equity in affiliates | ' | -44,863,793 | -31,598,030 | -39,120,384 |
Income tax benefit (expense) | ' | 5,965,548 | ' | ' |
Income (loss) before equity in affiliates | ' | -38,898,245 | -31,598,030 | -39,120,384 |
Income (loss) from equity in affiliates | ' | 2,236,683 | ' | ' |
Net income (loss) | ' | ($36,661,562) | ($31,598,030) | ($39,120,384) |
Segment_Information_Details_2
Segment Information (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Major customers | ' | ' | ' |
Revenues from major customer | $731,078,833 | $462,439,368 | $401,624,981 |
Accounts receivable from major customer | 357,442,102 | 304,600,710 | ' |
Customer A | Real Estate Online Services | ' | ' | ' |
Major customers | ' | ' | ' |
Revenues from major customer | ' | 6,871,686 | 5,852,438 |
Customer A | Real Estate Brokerage Services | ' | ' | ' |
Major customers | ' | ' | ' |
Revenues from major customer | ' | 42,483,101 | 40,341,494 |
Customer A | Real Estate Information and Consulting Services | ' | ' | ' |
Major customers | ' | ' | ' |
Revenues from major customer | ' | 6,356,080 | 11,688,229 |
Customer A | Other Services | ' | ' | ' |
Major customers | ' | ' | ' |
Revenues from major customer | ' | 213,754 | 162,603 |
Revenues | Customer accounting risk | Customer A | ' | ' | ' |
Major customers | ' | ' | ' |
Revenues from major customer | ' | 55,924,621 | 58,044,764 |
Accounts receivable | Credit risk | Customer A | ' | ' | ' |
Major customers | ' | ' | ' |
Accounts receivable from major customer | 43,318,976 | 52,949,294 | ' |
Customer deposits | Customer deposits | Customer B | ' | ' | ' |
Major customers | ' | ' | ' |
Customer deposits from major customer | ' | 11,136,720 | ' |
Customer deposits | Customer deposits | Customer C | ' | ' | ' |
Major customers | ' | ' | ' |
Customer deposits from major customer | 56,000,000 | 26,000,000 | ' |
Customer deposits | Customer deposits | Customer D | ' | ' | ' |
Major customers | ' | ' | ' |
Customer deposits from major customer | ' | 20,682,480 | ' |
Customer deposits | Customer deposits | Customer E | ' | ' | ' |
Major customers | ' | ' | ' |
Customer deposits from major customer | $8,200,900 | ' | ' |
Related_Party_Balances_and_Tra2
Related Party Balances and Transactions (Details) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||
Mar. 25, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 25, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2008 | Jan. 31, 2010 | Jan. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 31, 2010 | Jan. 31, 2010 | Apr. 30, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | USD ($) | USD ($) | USD ($) | Ordinary Shares | Ordinary Shares | Wuling Center | Wuling Center | Wuling Center | Wuling Center | Firmway | Management | Management | Customer and supplier | Customer and supplier | Other | Other | Shanghai Yueshun Real Estate Development Co., Ltd | Shanghai Yueshun Real Estate Development Co., Ltd | CRERAT | CRERAT | CRERAT | CRERAT | CRERAT | SINA | SINA | SINA | SINA | E-House China Real Estate Investment Fund I, L.P. | E-House China Real Estate Investment Fund I, L.P. | E-House China Real Estate Investment Fund I, L.P. | Shanghai Jin Yue Real Estate Development Co., Ltd | Shanghai Jin Yue Real Estate Development Co., Ltd | E-House Real Estate Asset Management Co., Ltd. | Shengyuan Center | Shengyuan Center | Shengyuan Center | Shengyuan Center | Shengyuan Center | Shengyuan Center | Shengyuan Center | Shanghai Yidezeng Equity Investment Center | Shanghai Yidexin Equity Investment Center | Shengquan Center | Shengquan Center | Shengquan Center | Shengquan Center | Xuyuechang Center | Xuyuerong Center | Xuyuezhen Center | |
USD ($) | USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Selling, general and administrative expenses | Selling, general and administrative expenses | USD ($) | USD ($) | Cost of revenue | Cost of revenue | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | Xin Zhou | USD ($) | USD ($) | USD ($) | Xin Zhou | USD ($) | USD ($) | USD ($) | |||||||||
USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||||||||||||||||||||||||||||||||||||
Amounts due from related parties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total amounts due from related parties | ' | $1,263,416 | $319,380 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $981,648 | $46,067 | $281,768 | $273,313 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts due to related parties | ' | 5,535,512 | 4,281,830 | ' | ' | ' | ' | ' | ' | ' | ' | 2,760,000 | 262,406 | 1,745,263 | 3,638,975 | 1,030,249 | 380,449 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Customer and supplier | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,084,047 | 52,120 | 268,380 | ' | ' | 1,855 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Selling, general and administrative expenses recorded by the group | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 476,706 | 822,249 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of revenue recorded by the group | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,033,036 | 5,145,039 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balances with customers, suppliers and affiliates who are related parties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount due from related parties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 281,768 | 273,313 | 981,648 | 46,067 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount due to related parties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3,892 | -1,133,357 | ' | ' | ' | -2,505,618 | -1,741,371 | ' | ' | ' | ' | ' | -392,219 | -380,449 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -103,331 | -480,081 | -54,618 |
Percentage of ownership interest in subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 51.00% | ' | ' | ' | ' | ' | ' | ' | 51.00% | 51.00% | ' | ' | ' | ' | ' | ' | ' |
Amount invested by Mr. Xin Zhou, the Group's executive chairman, and Mr. Neil Nanpeng Shen, director of the company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash contribution made | ' | 5,766,873 | 2,161,001 | 21,567,027 | ' | ' | 4,428,486 | 27,000,000 | 2,386,440 | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,065,348 | 65,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity interest (as a percent) | ' | ' | ' | ' | ' | ' | 6.52% | 6.52% | 6.52% | 6.52% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 51.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13.00% | 13.00% | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | 2.37% | 0.50% | 0.50% | 0.50% |
Amount received as a return of capital | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 461,463 | 2,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ordinary shares issued to Kanrich | ' | ' | ' | ' | 17,790,125 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate price of shares issued to Kanrich | 62,621,240 | ' | ' | ' | ' | 17,790 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Management fees | ' | $6,334,198 | $2,402,415 | $2,416,479 | ' | ' | $3,804,667 | ' | ' | ' | ' | ' | ' | ' | ' | $305,343 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $63,567 | $202,198 | $250,100 | ' | ' | ' | ' | ' | $1,549,416 | ' | $1,580,360 | $1,548,520 | ' | ' | ' | $611,205 | $619,857 | $617,859 | ' | ' | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Operating lease commitments | ' | ' | ' |
Rental expenses | $23,033,850 | $24,418,965 | $21,757,001 |
Future minimum lease payments under non-cancelable operating lease agreements | ' | ' | ' |
2014 | 19,916,212 | ' | ' |
2015 | 12,081,983 | ' | ' |
2016 | 8,166,279 | ' | ' |
2017 | 4,576,659 | ' | ' |
2018 | 4,311,688 | ' | ' |
Then thereafter | 32,406,039 | ' | ' |
Total | $81,458,860 | ' | ' |
Minimum | ' | ' | ' |
Operating lease commitments | ' | ' | ' |
Remaining lease terms | '6 months | ' | ' |
Maximum | ' | ' | ' |
Operating lease commitments | ' | ' | ' |
Remaining lease terms | '240 months | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details 2) | 12 Months Ended | 1 Months Ended | |||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | USD ($) | USD ($) | Properties commitment | Office building commitment | Wuling Center | Wuling Center | Wuling Center | Wuling Center | Investment in Jupai | Investment in Jupai | |
USD ($) | USD ($) | USD ($) | CNY | USD ($) | CNY | Forecast | Forecast | ||||
item | USD ($) | CNY | |||||||||
Commitments and contingencies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total investment commitment | ' | ' | ' | ' | ' | $9,841,080 | 60,000,000 | ' | ' | ' | ' |
Accumulated investment made | ' | ' | ' | ' | ' | 6,888,756 | 42,000,000 | ' | ' | ' | ' |
Investment commitment paid | 5,766,873 | 2,161,001 | 21,567,027 | ' | ' | 4,428,486 | 27,000,000 | 2,386,440 | 15,000,000 | ' | ' |
Remaining investment commitment | ' | ' | ' | ' | ' | 2,952,324 | 18,000,000 | ' | ' | ' | ' |
Properties payment commitments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment commitment for properties to be held for sales | ' | ' | ' | 100,057,425 | ' | ' | ' | ' | ' | ' | ' |
Remaining payment commitment for properties to be held for sales | ' | ' | ' | 39,981,399 | ' | ' | ' | ' | ' | ' | ' |
Properties payment commitments paid | 32,971,714 | 31,847,330 | 37,280,818 | ' | 2,931,478 | ' | ' | ' | ' | ' | ' |
Properties payment commitments paid | ' | ' | ' | 60,076,026 | ' | ' | ' | ' | ' | ' | ' |
Period within which the remaining commitment is payable | ' | ' | ' | '1 year | '1 year | ' | ' | ' | ' | ' | ' |
Payment commitment | ' | ' | ' | ' | 8,161,056 | ' | ' | ' | ' | ' | ' |
Number of an office building used as offices | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' |
Number of subsidiary for which buildings will be used as offices | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' |
Remaining payment commitment for properties of office building | ' | ' | ' | ' | 5,229,578 | ' | ' | ' | ' | ' | ' |
Investment commitment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Series B Preferred Shares purchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,918,340 | 12,918,340 |
Number of ordinary shares purchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,918,340 | 12,918,340 |
Total cost of investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15,745,728 | 96,000,000 |
Equity interest (as a percent) | ' | ' | ' | ' | ' | 6.52% | 6.52% | 6.52% | 6.52% | 20.00% | 20.00% |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent event) | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Apr. 22, 2014 | Apr. 17, 2014 | Apr. 17, 2014 | Apr. 22, 2014 | Apr. 17, 2014 | Jan. 31, 2014 | Jan. 31, 2014 |
Dividend declared | Dividend declared | SINA | E-House | Leju | Leju | Leju | Leju | Leju | Beijing Lotta | Beijing Lotta | |
Ordinary Shares | ADSs | Advertising agency agreement and license agreements | Tencent | Ordinary Shares | ADSs | Tencent | Tencent | Equity transfer agreement | Equity transfer agreement | ||
USD ($) | USD ($) | USD ($) | Share purchase and subscription agreement | Initial public offering | Initial public offering | Ordinary Shares | USD ($) | CNY | |||
USD ($) | USD ($) | Private placement | item | item | |||||||
USD ($) | |||||||||||
Subsequent events | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shareholders being party to the agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 2 |
Equity interest acquired (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | 40.00% |
Total consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | $16,401,800 | 100,000,000 |
Additional extension term of agreement | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' |
Additional consideration upon extension term of agreement | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Cash dividend payable (in dollars per share) | $0.20 | $0.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity interests, on a fully diluted basis, acquired (as a percent) | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' |
Consideration received | ' | ' | ' | $180,000,000 | ' | ' | ' | ' | ' | ' | ' |
Number of ordinary shares representing each share of ADS | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' |
Share price | ' | ' | ' | ' | ' | ' | $10 | ' | $10 | ' | ' |
Number of subsidiary shares acquired by counterparty | ' | ' | ' | 19,201,800 | ' | ' | ' | ' | ' | ' | ' |
Number of shares acquired by counterparty from Leju | ' | ' | ' | ' | ' | 10,000,000 | 10,000,000 | ' | 2,029,420 | ' | ' |
Ownership interest in subsidiaries (as a percent) | ' | ' | ' | ' | 76.30% | ' | ' | ' | ' | ' | ' |
Ownership interest (as a percent) | ' | ' | ' | ' | ' | ' | ' | 16.10% | ' | ' | ' |