Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2015shares | |
Document and Entity Information | |
Entity Registrant Name | E-HOUSE (CHINA) HOLDINGS LTD |
Entity Central Index Key | 1,405,658 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2015 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 148,823,164 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 465,183,566 | $ 630,616,635 |
Restricted cash | 1,964,260 | 40,401,864 |
Customer deposits, net of allowance for doubtful accounts of $583,836 and $550,158 at December 31, 2014 and 2015, respectively | 134,134,331 | 92,796,714 |
Accounts receivable, net of allowance for doubtful accounts of $44,002,810 and $65,243,624 at December 31, 2014 and 2015, respectively | 462,310,290 | 415,150,008 |
Advance payment for properties to be held for sale, current | 7,416,781 | 51,983,436 |
Properties held for sale | 50,249,134 | 34,841,895 |
Deferred tax assets | 61,734,685 | 64,804,392 |
Prepaid expenses and other current assets | 66,587,437 | 39,339,526 |
Amounts due from related parties | 1,551,873 | 6,094,260 |
Total current assets | 1,251,132,357 | 1,376,028,730 |
Property and equipment, net | 120,340,790 | 49,109,467 |
Intangible assets, net | 108,882,900 | 120,380,671 |
Long-term investment | 112,523,538 | 51,681,339 |
Goodwill | 62,781,148 | 51,539,654 |
Customer deposits, non-current | 1,351,640 | 797,024 |
Investment in preferred shares of Jupai | 39,484,906 | |
Restricted cash, non-current | 32,185,582 | |
Other non-current assets | 95,304,250 | 87,901,450 |
TOTAL ASSETS | 1,784,502,205 | 1,776,923,241 |
Current liabilities: | ||
Accounts payable (including accounts payable of the consolidated VIEs without recourse to E-House of $600,735 and $335,005 as of December 31, 2014 and 2015, respectively) | 6,699,191 | 8,260,681 |
Accrued payroll and welfare expenses (including accrued payroll and welfare expenses of the consolidated VIEs without recourse to E-House of $44,321,824 and $36,833,196 as of December 31, 2014 and 2015, respectively) | 140,178,362 | 116,577,317 |
Income tax payable (including income tax payable of the consolidated VIEs without recourse to E-House of $28,337,431 and $27,608,773 as of December 31, 2014 and 2015, respectively) | 155,085,748 | 117,593,159 |
Other tax payable (including other tax payable of the consolidated VIEs without recourse to E-House of $16,032,365 and $17,268,065 as of December 31, 2014 and 2015, respectively) | 55,691,217 | 49,390,175 |
Amounts due to related parties (including amounts due to related parties of the consolidated VIEs without recourse to E-House of $4,175,247 and $8,478,440 as of December 31, 2014 and 2015, respectively) | 9,934,688 | 7,356,186 |
Advance from property buyers | 7,326,067 | 2,261,387 |
Convertible senior notes | 123,960,959 | |
Short-term borrowings | 40,039,480 | 35,953,500 |
Dividends payable | 12,902,488 | |
Advance from customers and deferred revenue(including advance from customers and deferred revenue of the consolidated VIEs without recourse to E-House of $5,073,492 and $5,923,346 as of December 31, 2014 and 2015, respectively) | 20,821,723 | 19,013,041 |
Other current liabilities (including other current liabilities of the consolidated VIEs without recourse to E-House of $36,291,161 and $17,242,436 as of December 31, 2014 and 2015, respectively) | 58,645,555 | 85,836,572 |
Total current liabilities | 618,382,990 | 455,144,506 |
Deferred tax liabilities (including deferred tax liabilities, non-current of the consolidated VIEs without recourse to E-House of $469,579 and $1,833,357 as of December 31, 2014 and 2015, respectively) | 26,301,048 | 28,203,218 |
Convertible senior notes | 132,751,540 | |
Long-term loan | 72,687,056 | |
Other non-current liabilities | 569,015 | 658,357 |
Total liabilities | $ 717,940,109 | $ 616,757,621 |
Commitments and contingencies (Note 23) | ||
Equity: | ||
Ordinary shares ($0.001 par value): 1,000,000,000 shares authorized, 142,123,368 and 143,924,959 shares issued and outstanding, as of December 31, 2014 and 2015, respectively | $ 143,925 | $ 142,124 |
Additional paid-in capital | 983,468,984 | 991,645,842 |
Accumulated deficit | (107,574,384) | (67,703,190) |
Accumulated other comprehensive income | 31,663,066 | 83,901,136 |
Subscription receivables | (196,407) | |
Total E-House equity | 907,701,591 | 1,007,789,505 |
Non-controlling interest | 158,860,505 | 152,376,115 |
Total equity | 1,066,562,096 | 1,160,165,620 |
TOTAL LIABILITIES AND EQUITY | $ 1,784,502,205 | $ 1,776,923,241 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Customer deposits, allowance for doubtful accounts | $ 550,158 | $ 583,836 |
Accounts receivable, allowance for doubtful accounts | 65,243,624 | 44,002,810 |
Accounts payable | 6,699,191 | 8,260,681 |
Accrued payroll and welfare expenses | 140,178,362 | 116,577,317 |
Income tax payable | 155,085,748 | 117,593,159 |
Other tax payable | 55,691,217 | 49,390,175 |
Amounts due to related parties | 9,934,688 | 7,356,186 |
Advance from customers and deferred revenue | 20,821,723 | 19,013,041 |
Other current liabilities | 58,645,555 | 85,836,572 |
Deferred tax liabilities, non-current | $ 26,301,048 | $ 28,203,218 |
Ordinary shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Ordinary shares, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Ordinary shares, shares issued (in shares) | 143,924,959 | 142,123,368 |
Ordinary shares, shares outstanding (in shares) | 143,924,959 | 142,123,368 |
Consolidated VIEs without recourse | ||
Accounts payable | $ 335,005 | $ 600,735 |
Accrued payroll and welfare expenses | 36,833,196 | 44,321,824 |
Income tax payable | 27,608,773 | 28,337,431 |
Other tax payable | 17,268,065 | 16,032,365 |
Amounts due to related parties | 8,478,440 | 4,175,247 |
Advance from customers and deferred revenue | 5,923,346 | 5,073,492 |
Other current liabilities | 17,242,436 | 36,291,161 |
Deferred tax liabilities, non-current | $ 1,833,357 | $ 469,579 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
STATEMENTS OF OPERATIONS | |||
Total revenues | $ 1,023,656,993 | $ 904,498,793 | $ 731,078,833 |
Cost of revenues | (329,761,444) | (306,133,210) | (274,035,806) |
Selling, general and administrative expenses | (706,050,055) | (545,491,718) | (400,947,001) |
Other operating income | 6,756,906 | 8,786,891 | 4,917,642 |
Income (loss) from operations | (5,397,600) | 61,660,756 | 61,013,668 |
Interest expense | (11,020,177) | (5,325,474) | (192,566) |
Interest income | 4,832,800 | 3,210,328 | 2,179,547 |
Other income (loss), net | (1,896,896) | 3,857,539 | (1,051,215) |
Investment income | 24,323,479 | ||
Income before taxes and equity in affiliates | 10,841,606 | 63,403,149 | 61,949,434 |
Income tax expense | (71,847,178) | (14,900,793) | (13,676,994) |
Income (loss) before equity in affiliates | (61,005,572) | 48,502,356 | 48,272,440 |
Income from equity in affiliates | 5,705,701 | 3,834,802 | 2,813,849 |
Net income (loss) | (55,299,871) | 52,337,158 | 51,086,289 |
Less: Net income (loss) attributable to non-controlling interest | (15,428,677) | 12,335,673 | (871,136) |
Net income (loss) attributable to E-House shareholders | $ (39,871,194) | $ 40,001,485 | $ 51,957,425 |
Earnings (loss) per share: | |||
Basic (in dollars per share) | $ (0.28) | $ 0.29 | $ 0.40 |
Diluted (in dollars per share) | $ (0.28) | $ 0.26 | $ 0.38 |
Shares used in computation: | |||
Basic (in shares) | 142,615,258 | 139,211,442 | 130,163,165 |
Diluted (in shares) | 142,615,258 | 146,687,835 | 135,779,997 |
STATEMENTS OF COMPREHENSIVE INC
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
Net income (loss) | $ (55,299,871) | $ 52,337,158 | $ 51,086,289 |
Other comprehensive income (loss), net of tax of nil: | |||
Net unrealized gains (loss) for investment in Jupai | (13,765,098) | 13,765,098 | |
Foreign currency translation adjustment | (42,837,821) | (2,119,684) | 17,532,967 |
Comprehensive income (loss) | (111,902,790) | 63,982,572 | 68,619,256 |
Less: Comprehensive income (loss) attributable to non-controlling interests | (20,094,128) | 12,269,668 | (404,808) |
Comprehensive income (loss) attributable to E-House shareholders | $ (91,808,662) | $ 51,712,904 | $ 69,024,064 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) | 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 | Total |
Balance at Dec. 31, 2012 | $ 738,925,367 | $ 118,243 | $ 841,536,135 | $ (157,835,168) | $ 55,117,955 | $ (11,798) | $ 6,188,582 | $ 745,113,949 |
Balance (in shares) at Dec. 31, 2012 | 118,242,281 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income (loss) | 51,957,425 | 51,957,425 | (871,136) | 51,086,289 | ||||
Foreign currency translation adjustments | 17,066,639 | 17,066,639 | 466,328 | 17,532,967 | ||||
Dividends (note 12) | (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 | $ 4,596 | 17,460,926 | (2,136,134) | 15,329,388 | |||
Exercise of share options (in shares) | 4,596,761 | |||||||
Vesting of restricted shares | 263,106 | $ 770 | 262,336 | 263,106 | ||||
Vesting of restricted shares (in shares) | 769,448 | |||||||
Capital injection from non-controlling interest | 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 | 62,621,240 | ||||
New shares issued to management (in shares) | 17,790,125 | |||||||
Repurchase of shares | (17,772,586) | $ (3,582) | (15,942,072) | (1,826,932) | (17,772,586) | |||
Repurchase of shares (in shares) | (3,582,133) | |||||||
Changes in equity ownership on acquisition of non-controlling interest | (409,110) | (409,110) | 409,110 | |||||
Balance at Dec. 31, 2013 | 821,937,753 | $ 137,817 | 859,467,949 | (107,704,675) | 72,184,594 | (2,147,932) | 13,933,276 | 835,871,029 |
Balance (in shares) at Dec. 31, 2013 | 137,816,482 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income (loss) | 40,001,485 | 40,001,485 | 12,335,673 | 52,337,158 | ||||
Foreign currency translation adjustments | (2,053,679) | (2,053,679) | (66,005) | (2,119,684) | ||||
Dividends (note 12) | (77,582,930) | (77,582,930) | 21,569,028 | (56,013,902) | ||||
Dividends to non-controlling interest | (2,508,620) | (2,508,620) | ||||||
Share-based compensation | 19,843,733 | 19,843,733 | 1,797,388 | 21,641,121 | ||||
Exercise of share options | 13,994,117 | $ 3,447 | 12,039,145 | 1,951,525 | 13,994,117 | |||
Exercise of share options (in shares) | 3,446,585 | |||||||
Vesting of restricted shares | $ 860 | (860) | ||||||
Vesting of restricted shares (in shares) | 860,301 | |||||||
Exercise of Leju share options | (202,093) | (202,093) | 737,628 | 535,535 | ||||
Vesting of Leju restricted shares | 260,433 | 260,433 | 751,567 | 1,012,000 | ||||
Capital injection from non-controlling interest | 19,925,043 | 19,925,043 | ||||||
Changes in equity ownership on partial disposal of subsidiaries | 138,477,580 | 138,472,457 | 5,123 | 38,226,837 | 176,704,417 | |||
Changes in equity ownership on acquisition of non-controlling interest | (30,720,088) | (30,720,088) | (4,515,188) | (35,235,276) | ||||
Recognition of change in E-House's economic interests in Leju in connection with Leju's IPO | 70,068,096 | 70,068,096 | 50,189,488 | 120,257,584 | ||||
(Reverse) net unrealized gains for investment in preferred shares of Jupai | 13,765,098 | 13,765,098 | 13,765,098 | |||||
Balance at Dec. 31, 2014 | 1,007,789,505 | $ 142,124 | 991,645,842 | (67,703,190) | 83,901,136 | (196,407) | 152,376,115 | 1,160,165,620 |
Balance (in shares) at Dec. 31, 2014 | 142,123,368 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income (loss) | (39,871,194) | (39,871,194) | (15,428,677) | (55,299,871) | ||||
Foreign currency translation adjustments | (38,172,370) | (38,172,370) | (4,665,451) | (42,837,821) | ||||
Dividends (note 12) | (21,362,234) | (21,362,234) | (21,362,234) | |||||
Dividends to non-controlling interest | (10,009,004) | (10,009,004) | ||||||
Share-based compensation | 17,380,454 | 17,380,454 | 2,876,054 | 20,256,508 | ||||
Exercise of share options | 1,153,336 | $ 513 | 956,416 | $ 196,407 | 1,153,336 | |||
Exercise of share options (in shares) | 513,261 | |||||||
Vesting of restricted shares | $ 1,288 | (1,288) | ||||||
Vesting of restricted shares (in shares) | 1,288,330 | |||||||
Exercise of Leju share options | (337,737) | (337,737) | 1,919,978 | 1,582,241 | ||||
Vesting of Leju restricted shares | 210,075 | 210,075 | 801,925 | 1,012,000 | ||||
Capital injection from non-controlling interest | 29,581,051 | 29,581,051 | ||||||
Changes in equity ownership on disposal of subsidiaries | (3,849,620) | (3,849,620) | ||||||
Changes in equity ownership on acquisition of non-controlling interest | (5,323,146) | (5,022,544) | (300,602) | 5,258,134 | (65,012) | |||
(Reverse) net unrealized gains for investment in preferred shares of Jupai | (13,765,098) | (13,765,098) | (13,765,098) | |||||
Balance at Dec. 31, 2015 | $ 907,701,591 | $ 143,925 | $ 983,468,984 | $ (107,574,384) | $ 31,663,066 | $ 158,860,505 | $ 1,066,562,096 | |
Balance (in shares) at Dec. 31, 2015 | 143,924,959 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating activities: | |||
Net income (loss) | $ (55,299,871) | $ 52,337,158 | $ 51,086,289 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 40,420,408 | 33,336,600 | 45,215,493 |
Realized gain on marketable securities | (2,903,786) | (234,338) | |
Investment income | (24,323,479) | ||
Income from equity in affiliates | (5,705,701) | (3,834,802) | (2,813,849) |
Allowance for doubtful accounts | 29,408,911 | 26,381,555 | 29,146,892 |
Share-based compensation | 22,394,912 | 22,175,722 | 18,903,027 |
Amortization of discounts related to liability for exclusive rights | 52,922 | 935,177 | |
Amortization of debt discount and issuance cost | 1,334,869 | 1,627,183 | 37,879 |
Impairment of property held for sale | 5,887,614 | 0 | 0 |
Allowance for advance payment for properties to be held for sale | 885,937 | 0 | 0 |
Others | 157,973 | (1,031,539) | (172,944) |
Changes in operating assets and liabilities: | |||
Restricted cash | 147,126 | 198,730 | 438,860 |
Customer deposits | (61,383,410) | (25,477,768) | 14,848,744 |
Accounts receivable | (85,535,209) | (91,288,124) | (80,108,256) |
Marketable securities | 2,897,049 | 3,916,706 | |
Amounts due from related parties | 4,500,450 | (4,830,844) | (944,036) |
Properties held for sale and advance payment for properties to be held for sale | (18,199,606) | (3,499,706) | (55,657,811) |
Prepaid expenses and other current assets | (13,699,940) | (5,190,461) | (1,573,079) |
Other non-current assets | 9,018,910 | 550,250 | (14,399,728) |
Accounts payable | (1,719,327) | (3,007,370) | 3,688,255 |
Accrued payroll and welfare expenses | 21,961,728 | 13,930,717 | 34,489,244 |
Income tax payable | 36,778,465 | 18,887,611 | 43,664,036 |
Other tax payable | 5,570,524 | 9,379,946 | 15,485,548 |
Amounts due to related parties | 1,462,347 | 1,669,193 | (1,243,912) |
Other current liabilities | (60,893,801) | (5,695,764) | 40,174,923 |
Other non-current liabilities | (89,342) | (814,929) | (245,919) |
Deferred taxes | 3,767,909 | (11,867,112) | (30,745,061) |
Net cash provided by (used in) operating activities | (143,151,603) | 23,982,431 | 113,892,140 |
Investing activities: | |||
Deposit for and purchase of property and equipment and intangible assets | (41,350,226) | (45,244,388) | (32,971,714) |
Payments to Acquire Businesses, Net of Cash Acquired | (307,994) | (5,259,451) | |
Disposal of subsidiaries | (5,952,002) | ||
Prepayment for investment | (2,368,994) | (7,766,948) | (15,745,728) |
Receipt (Payment) of restricted cash for collateral of bank loans | 5,119,670 | (38,290,478) | |
Long-term investment | (18,118,278) | (8,890,449) | (5,766,873) |
Capital return of long-term investment | 9,398,528 | 6,525,361 | 6,202,093 |
Proceeds from disposal of property and equipment | 6,064,780 | 5,350,020 | 1,727,724 |
Investment in Jupai | (25,719,808) | ||
Payment of short-term investment | (1,279,340) | ||
Receipt of short-term investment | 1,277,032 | ||
Net cash used in investing activities | (47,514,516) | (112,759,658) | (53,093,289) |
Financing activities: | |||
Proceeds from long term loan | 74,912,064 | ||
Purchases of non-controlling interest | (17,393,350) | (14,613,056) | |
Proceeds from issuance of ordinary shares of Leju upon initial public offering, net of paid issuance costs of $15,036,616 | 120,257,584 | ||
Proceeds from short-term borrowing | 41,265,120 | 35,953,500 | |
Repayment of short-term borrowings | (34,916,640) | ||
New shares issued to management | 62,621,240 | ||
Contribution from non-controlling interest | 29,541,169 | 19,925,043 | 8,030,815 |
Proceeds from exercise of options | 2,735,577 | 14,529,652 | 15,329,388 |
Advance from related parties | 276,000 | 2,760,000 | |
Repayment of loans from non-controlling interests | (253,400) | ||
Proceeds from issuance of convertible senior notes, net of discount of $3,375,000 | 131,625,000 | ||
Proceeds from partial disposal of subsidiaries | 176,704,417 | ||
Debt issuance costs | (1,551,570) | ||
Repurchase of convertible senior notes | (9,569,451) | ||
Payment of call option | (44,999,998) | ||
Repurchase of shares | (17,772,586) | ||
Dividends | (34,264,722) | (43,111,414) | (19,946,745) |
Dividends to non-controlling interests shareholders | (10,009,004) | (2,508,620) | (338,941) |
Net cash provided by financing activities | 42,300,763 | 307,159,706 | 135,756,603 |
Effect of exchange rate changes on cash and cash equivalents | (17,067,713) | (1,085,018) | 5,922,352 |
Net increase (decrease) in cash and cash equivalents | (165,433,069) | 217,297,461 | 202,477,806 |
Cash and cash equivalents at the beginning of the year | 630,616,635 | 413,319,174 | 210,841,368 |
Cash and cash equivalents at the end of the year | 465,183,566 | 630,616,635 | 413,319,174 |
Supplemental disclosure of cash flow information: | |||
Income taxes paid | 23,760,990 | 7,175,015 | 4,986,562 |
Interest paid | 9,485,711 | 3,691,875 | |
Non-cash investing and financing activities: | |||
Decrease in amount due to related party due to vesting of restricted shares | (1,012,000) | (1,012,000) | (263,106) |
Non-controlling interest recognized in connection with business acquisition | 39,882 | 48,518 | |
Non-controlling interest derecognized in connection with the disposal of subsidiaries | (3,849,620) | ||
Consideration payable for amount recognized in purchase of exclusive rights | 8,967,972 | ||
Dividend payable to non-controlling interest | 536,446 | 536,446 | $ 536,446 |
Dividends payable to E-House shareholders | 12,902,488 | ||
Non-controlling interest recognized in connection with the distribution of Leju ordinary shares to E-House shareholders as dividends | 21,569,028 | ||
Payable for acquisition of non-controlling interest | 7,338,593 | 25,645,630 | |
Waive the payable to non-controlling interest in connection with the acquisition of non-controlling interest | 746,600 | ||
Unrealized gains ( reverse unrealized gains) for investment in Jupai | $ (13,765,098) | $ 13,765,098 |
CONSOLIDATED STATEMENTS OF CAS8
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | 12 Months Ended |
Dec. 31, 2014USD ($) | |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |
Payments of Stock Issuance Costs | $ 15,036,616 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2015 | |
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 agency, secondary brokerage, information and consulting, promotional events, real estate advertising, real estate fund management services, community value-added services and real estate financial 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 Corporation’s (“SINA”) 66% interest in China Online Housing Technology Corporation (“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 Company’s subsidiary, Leju Holdings Limited (“Leju”) is principally engaged in providing online advertising, e-commerce services and listing services in the PRC. In March 2014, the Company sold a 15% equity interest in Leju on a fully diluted basis, including all options and restricted shares and any other rights to acquire Leju’s shares, to Tencent Holdings Limited, a provider of comprehensive internet services in PRC, and $176.4 million net proceeds after deducting commissions and related expenses received . In April 2014, Leju completed its initial public offering (“IPO”) and became listed on New York Stock Exchange (NYSE:LEJU). Leju raised from this initial public offering approximately $101.4 million in net proceeds after deducting underwriting commissions and the offering expenses payable by Leju. Concurrently with the initial public offering, Leju also raised from Tencent in a private placement $18.9 million in net proceeds after deducting estimated fees and expenses payable by Leju. In December 2014, E-House was approved and announced a partial spin-off of Leju by distributing in the form of a dividend of 0.05 ordinary shares, par value $0.001, of Leju, for each of E-House ordinary shares outstanding as of December 3, 2014, or 0.05 ADSs of Leju, for each of E-House ADSs outstanding as of December 3, 2014. The Spin-off of Leju was completed in January 2015. As of December 31, 2015 E-House held a 69% equity interest in Leju. In April 2015, the Group entered into a binding agreement with Jupai Holdings Limited (“Jupai”) to sell its fund management services to Jupai (“the Jupai Transaction”). The fund management services are held by Scepter Pacific Limited (“Scepter”), a consolidated subsidiary 51% owned by the Group, with the remaining 49% owned by Reckon Capital Limited, a company incorporated in the British Virgin Islands (“Reckon Capital”) and majority owned and controlled by Mr. Xin Zhou. On July 16, 2015, the Group transferred equity interests in Scepter in exchange for Jupai’s issuance of 16,565,592 ordinary shares upon the initial public offering of Jupai . The following table lists major subsidiaries and the consolidated VIEs of the Company as of December 31, 2015: Date of Place of Percentage of incorporation incorporation Ownership Shanghai Real Estate Sales (Group) Co., Ltd. 15-Aug-00 PRC % Shanghai City Rehouse Real Estate Agency Ltd. 17-May-02 PRC % Shanghai CRIC Information Technology Co., Ltd. (“Shanghai CRIC”) 03-Jul-06 PRC % Leju Holdings Ltd. 20-Nov-13 Cayman % Shanghai Xinju Finance Information Services Co., Ltd.(“Shanghai Xinju”) 22-May-14 PRC % Shanghai Weidian Information Technology Co., Ltd. (“Shanghai Weidian”) 20-Aug-14 PRC % Beijing Yisheng Leju Information Services Co., Ltd. (“Beijing Leju”) 13-Feb-08 PRC VIE Shanghai Yi Xin E-Commerce Co., Ltd. (“Shanghai Yi Xin”) 05-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 Shanghai Fangjia Information Technology Co., Ltd. (“Shanghai Fangjia”) 29-Oct-14 PRC VIE Shanghai Weihui Business Information Consulting Co., Ltd. (“Shanghai Weihui”) 11-Sep-14 PRC VIE |
Summary of Principal Accounting
Summary of Principal Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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 , Shanghai Kushuo , Shanghai Fangjia and Shanghai Weihui . All inter-company transactions and balances have been eliminated in consolidation. 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. Shanghai CRIC terminated its arrangements with Shanghai Fangjia and transferred all its rights and liabilities to Shanghai Yifang Software Co., Ltd. (“Shanghai Yifang”) during 2015. 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, Shanghai SINA Leju Information Technology Co., Ltd. (“Shanghai SINA Leju”) and Shanghai Yi Yue Information Technology Co. Ltd. (“Shanghai Yi Yue”), Beijing Maiteng Fengshun Science and Technology Co., Ltd., (“Beijing Maiteng”), Shanghai Yifang, and Shanghai Weidian (collectively, the “Foreign Owned Subsidiaries”) entered into a series of contractual arrangements with Shanghai Kushuo, Beijing Leju, Shanghai Yi Xin, Beijing Jiajujiu, Shanghai Fangjia and Shanghai Weihui (collectively the “VIEs”) and their respective shareholders, respectively, as summarized below: Name of Foreign Owned Foreign Owned Subsidiaries’ Economic Ownership Subsidiaries of VIEs Name of VIEs Activities of VIEs Shanghai Yifang % Shanghai Kushuo Operate the real estate offline advertising business Shanghai SINA Leju % Beijing Leju Operate the online advertising and listing business Shanghai Yi Yue % Shanghai Yi Xin Operate the e-commerce business Beijing Maiteng % Beijing Jiajujiu Operate the online home furnishing business Shanghai Yifang % Shanghai Fangjia Operate the information and consulting business Shanghai Weidian % Shanghai Weihui Operate the community value-added 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 substantially all 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, 2014 2015 $ $ Cash and cash equivalents Accounts receivable, net of allowance for doubtful accounts Customer deposits — Other current assets Amounts due from related parties Total current assets Total non-current assets Total assets Accounts payable Accrued payroll and welfare expenses Income tax payable Other tax payable Amounts due to related parties Advance from customers and deferred revenue Other current liabilities Total current liabilities Deferred tax liabilities, non-current Total liabilities Years Ended December 31, 2013 2014 2015 $ $ $ Total revenues Cost of revenues ) ) ) Net income (loss) ) ) Net cash provided by operating activities Net cash used in investing activities ) ) ) Net cash used in financing activities ) ) ) 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, valuation of fair value of investment in preferred shares of Jupai , and assumptions related to the valuation of fair value of Leju and Scepter’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. (e) Business combinations Business combinations are recorded using the acquisition 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 is required to maintain certain bank deposits as collateral for the bank loans to the Group (see Note 10). These balances are subject to withdrawal restrictions and totaled $38,290,478 and $32,185,582 as of December 31, 2014 and 2015, respectively. Restricted cash is reported as non-current unless the restrictions are expected to be released in the next 12 months. The Group provides brokerage services 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 $1,947,961 and $1,810,262 as of December 31, 2014 and 2015, 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 $163,425 and $153,998 as of December 31, 2014 and 2015, respectively. (h) Investment in debt and equity securities The Group invests in debt securities and equity securities with readily determinable fair values, and accounts for the investments based on the nature of the products invested, and the Group’s intent and ability to hold the investments to maturity. The Group’s investments in debt securities that have a stated maturity and normally pay a prospective fixed rate of return. The Group classifies the investments in debt securities as held-to-maturity when it has both the positive intent and ability to hold them until maturity. Held-to-maturity investments are recorded at amortized cost and are classified as long-term or short-term according to their contractual maturity. Long-term investments are reclassified as short-term when their contractual maturity date is less than one year. Investments that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are reported at fair value with changes in fair value recognized in earnings. Investments that do not meet the criteria of held-to-maturity or trading securities are classified as available-for-sale, and are reported at fair value with changes in fair value included in other comprehensive income. The Group reviews its investments, except for those classified as trading securities, for other-than-temporary impairment based on the specific identification method and considers available quantitative and qualitative evidence in evaluating potential impairment. If the cost of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, government economic plans, the duration and the extent to which the fair value of the investment is less than cost and the Group’s intent and ability to hold the investment to determine whether another-than-temporary impairment has occurred. The Group recognizes other-than-temporary impairment in earnings if it has the intent to sell the debt security or if it is more-likely-than-not that it will be required to sell the debt security before recovery of its amortized cost basis. Additionally, the Group evaluates expected cash flows to be received and determines if credit-related losses on debt securities exist, which are considered to be other-than-temporary, should be recognized in earnings. If the investment’s fair value is less than the cost of an investment and the Group determines the impairment to be other-than-temporary, the Group recognizes an impairment loss based on the fair value of the investment. (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. 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 also provides online e-commerce services for customers, some of real estate developers require the Group to pay an upfront and refundable deposit to book properties for customers to make sure the customers are able to enjoy the discount when buy properties. These deposits are refunded to the Group subject to certain pre-determined criteria at a date specified in the contracts. The pre-determined criteria are based on sales progress on a project. Customer deposits are recorded as either current or non-current assets based on the Group’s estimate of the date of refund. The Group has not experienced any material non-payment with respect to these deposits to date. 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. (j) Accounts receivable Accounts receivable, net of allowance for doubtful accounts of $44,002,810 and $65,243,624 at December 31, 2014 and 2015, respectively, consists of following: As of December 31, 2014 2015 $ $ Unbilled accounts receivable Billed accounts receivable Total 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 sale 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. Nil, nil and $5,887,614 impairment was provided for properties held for sale for the years ended December 31, 2013, 2014 and 2015 in selling, general and administrative expenses , respectively. Advance payment for properties to be held for sale are also stated at the lower of cost or net realizable value. The Group evaluates its properties for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Nil, nil and $885,937 impairment was provided for properties held for sale for the years ended December 31, 2013, 2014 and 2015 and recorded as selling, general and administrative expenses in the consolidated statement of operations, respectively. (l) Long-term investment Long-term investments are comprised of investments in publicly traded companies, privately-held companies and investment funds. For long-term investments over which the Group does not have significant influence, the cost method of accounting is used. For long-term investments over which the Group has significant influence, but which it does not control, the equity method accounting is used. The Group generally considers an ownership interest of 20% or higher to represent a presumption of 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). Under equity 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 records its income (loss) from the investment funds one quarter in arrears to enable it to have more time to collect and analyze the investments’ result. 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, 2014 and 2015, 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 3 - 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 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 |
Properties Held for Sale
Properties Held for Sale | 12 Months Ended |
Dec. 31, 2015 | |
Properties Held for Sale | |
Properties Held for Sale | 3. Properties Held for Sale In 2013, 2014 and 2015, customers transferred legal ownership of 14 properties including five car-parking spaces, 30 properties including 20 residential properties, five car-parking spaces, and five commercial properties and 29 properties including 27 residential properties and two commercial properties, to the Group to settle $6,678,302, $7,122,155 and $6,038,699 in accounts receivable, respectively, and in 2013 customers also transferred legal ownership of 36 properties to the Group to settle $9,928,558 in customer deposits. As of December 31, 2014, title transfers of 113 residential properties and 55 commercial properties were still in process, and the associated consideration of $51,983,436 was recorded as advance payment for properties to be held for sale in the consolidated balance sheet. In 2015, the Group paid a further $36,962,257 for the commercial properties which were initially recorded as advance payment for properties to be held for sale. Management subsequently changed its intention from selling these properties to self-use. These commercial properties in the amount of $73,112,610 were recorded as property and equipment upon the completion of title transfer in 2015. As of December 31, 2015, title transfers of 87 residential properties and 30 car-parking spaces were still in process, and a consideration of $7,416,781 was recorded as advance payment for properties to be held for sale in the consolidated balance sheet. The Group recorded gains of $118,559, nil and $720,486 from selling of the properties held for sale for the years ended December 31, 2013, 2014 and 2015, respectively. As of December 31, 2014, the Group held 147 residential properties, five commercial properties and nine car-parking spaces with a total carrying value of $34,841,895. As of December 31, 2015, the Group held 157 residential properties, 19 commercial properties and nine car-parking spaces with a total carrying value of $50,249,134. |
Long-term Investment
Long-term Investment | 12 Months Ended |
Dec. 31, 2015 | |
Long-term Investment | |
Long-term Investment | 4. Long-term Investment Investment in Jupai In May 2014, the Group and Jupai entered into a Series B Convertible Redeemable Preferred Shares ( “ Series B Preferred Shares ” ) Purchase Agreement that included the issuance and sale by Jupai of 12,918,340 shares of Series B Preferred Shares of Jupai to the Group at an aggregate consideration of RMB48,000,000 ($7,801,728); (b) the sale and transfer by a shareholder of Jupai of 12,918,340 shares of ordinary shares of Jupai to the Group at an aggregate consideration of RMB48,000,000 ($7,801,728). These ordinary shares were re-designated into 12,918,340 Series B preferred shares at the closing of the transaction. In August 2014, the group further acquired 12,918,340 ordinary shares of Jupai from a shareholder of Jupai for $10,116,352. These ordinary shares were re-designated into 12,918,340 Series B Preferred Shares in December, 2014. Given the redemption right exercisable by the Group, the investment was accounted for as available-for-sale investment measured at fair value, with changes in fair value recognized in accumulated other comprehensive income. As of December 31, 2014, the fair value of the Series B Preferred Shares was $39,484,906 and was recorded in Inv estment in preferred shares of Jupai , and the Group recognized $13,765,098 of unrealized gains in accumulated other comprehensive income for the year ended December 31, 2014. In 2015, the Group recognized $25,106,794 of unrealized gains in accumulated other comprehensive income. Upon the IPO of Jupai, 38,755,020 Series B Preferred Shares were immediately converted into the ordinary shares with the ratio of 1:1. As the conversion is not considered an earnings realization event, all unrealized gains deferred in accumulated other comprehensive income were reversed to the carrying amount of the ordinary shares such that the initial carrying amount of such ordinary shares is equal to the original cost basis of the Series B Preferred Shares. As a result of the Jupai Transaction (Note 1), the Group obtained 16,565,592 ordinary shares of Jupai with $10.0 per ADS (six ordinary shares). The Group recognized $23,104,056 as investment income from this transaction and accrued $2,530,329 withholding tax on the investment income. The Group holds 55,320,612 ordinary shares of Jupai after the conversion of Series B Preferred Shares and the Jupai Transaction, which represent 31% equity interest of Jupai and became the largest shareholder of Jupai. Mr Xin Zhou, the Group’s co-chairman and chief executive officer, is a director of Jupai. As the Group can exercise significant influence over the operating and financial policies of Jupai, the Group accounted the investment using equity method. As of December 31, 2015, the balance of the investment in Jupai was $55,682,202. Other investment s In 2011, the Group paid RMB100,000,000 ($15,735,900) for a 3.8% equity interest in Shanghai Star Capital Equity Investment Center (“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, 2014 and 2015, the Group received RMB35,000,000 ($5,740,630), RMB15,000,000 ($2,455,830) and RMB5,000,000 ($793,560) capital return from Star Capital, respectively. 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 (“Yidezhen”), a subsidiary of Shanghai E-cheng, 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), RMB27,000,000 ($4,428,486) and RMB18,000,000 ($2,946,996) into Wuling Center in 2012, 2013 and 2014 for a total of 6.5% equity interest, respectively. An entity controlled by Mr. Xin Zhou, the Company’s co-chairman and chief executive officer, owned 4.9% 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 unrelated 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. The Group’s investments in Wuling Center are more than minor and are accounted for using the equity method. As a result of the Jupai Transaction (Note 1), 1.1% equity interest was transferred to Jupai. In 2014, the Group formed a limited partnership, Shanghai Shouxin Equity Investment Center ( “ Shouxin Center ” ) in Shanghai, for the purpose of making equity investments in areas deemed suitable by the general partner and Shanghai Yidezhao Equity Investment Center, a subsidiary of Shanghai E-Cheng, acts as Shouxin Center’s general partner. The general partner will receive annual management fee and carried interest on a success basis. The Group prepaid $2,437,920 (RMB15,000,000) in 2013 into Shouxin Center for a 13.0% equity interest. Shouxin Center did not finalize its registration until 2014. Yidezhao’s related parties, E-House Shengyuan Equity Investment Center ( “ Shengyuan Center ” ) and E-House Shengquan Equity Investment Center ( “ Shenquan Center ” ) own 41.6% and 28.0% equity interest in Shouxin Center respectively, as limited partners. Shenquan Center is the deemed the primary beneficiary of Shouxin Center given the substantive participating rights held by Shenquan Center in certain financial and operating decisions of the limited partnership in the ordinary course of business, and the biggest equity holding in the limited partnership in the related party group. As such, the Group does not consolidate Shouxin Center. The Group’s investments in Shouxin Center are accounted for using the equity method. The Group records its income (loss) from this investment one quarter in arrears to enable it to have more time to collect and analyze the investments’ results. In August 2014, the Group disposed of 12.2% equity interest for a total consideration of $2,287,950, of which 4.8% was transferred to an unrelated third party investor, and 7.4% was transferred to two employees of the Group. No gain or loss was recognized from the disposal. As a result of the Jupai Transaction (Note 1), the investment was transferred to Jupai. The Group prepaid $4,085,625 (RMB25,000,000) in 2013 into Shanghai Muxin Equity Investment Center (“Muxin Center”) for a 23.4% equity interest as a limited partner and the investment was finalized in 2014. The Group was not the deemed the primary beneficiary of Muxin Center. As such, the Group does not consolidate Muxin Center. The Group’s investments in Muxin Center are accounted for using the equity method due to its significant influence over the operating and financial policies of the investees. In September, 2015 the Group purchased 15,778,152 Series B redeemable convertible preferred shares of Wexfin. INC (“Wexfin”) a private entity, at a price of $0.7746 per share with total consideration of $12,222,128 for the purpose of supporting the business development of the Group’s real estate financial services. The Group’s investment accounts for 11.7% equity interest of the company. The Group is able to exercise significant influence over the operating and financial policies of the investee through board representation. However, as the redemption right is not within the control of the Group and the investment is not in-substance common stock, the Group accounts for the investment using cost method. The summarized financial information of Jupai is as follows: Operating data: Jupai Years Ended December 31, 2013 2014 2015 $ $ $ Revenue Cost ) ) ) Selling, general and administrative expense ) ) ) Profit from operations Net income Balance Sheet Data: Jupai As of December 31, 2014 2015 $ $ Current assets Non-current assets Current liabilities Non-current liabilities |
Acquisitions of Subsidiaries
Acquisitions of Subsidiaries | 12 Months Ended |
Dec. 31, 2015 | |
Acquisitions of Subsidiaries | |
Acquisitions of Subsidiaries | 5. Acquisitions of Subsidiaries 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 Total tangible assets acquired Liabilities assumed ) Favorable lease term 17.3 years Customer relationship 17.3 years Outstanding contracts 6.4 years Goodwill Deferred tax liabilities ) Total The goodwill was allocated to the real estate information and consulting services segment and is not deductible for tax purposes. In January 2014, the Group paid $4,085,625 (RMB25,000,000) for a 21.0% equity interest in Hangzhou Kuyue Technology Limited (“Hangzhou Kuyue”), for the purpose of obtaining the mobile platform to operate the community value-added business. The Group’s interest in Hangzhou Kuyue is accounted for using equity method of accounting as the group can exercise significant influence over the operating and financial policies of the investee. In November 2014, the Group signed the agreement to acquire Hangzhou Kuyue as a wholly-owned subsidiary to integrate the internet resources in order to create leading Community Integration Information Service Platform. The consideration for the remaining 79.0% was $11,521,463 (RMB 70,500,000), of which $5,066,175 (RMB31,000,000) and $6,455,288(RMB39,500,000) was paid in December 2014 and May 2015, respectively. Hangzhou Kuyue became the Group’s wholly-owned subsidiary in 2015. Upon consolidation, the 21% equity interest acquired in 2014 was remeasured at fair value of $2,221,396 (RMB18,740,506), with the excess of fair value over the book value in the amount of $90,835 (RMB572,327) recognized in investment income. The purchase price was allocated as follows: Allocated Amortization Value Period $ Cash Total tangible assets acquired Liabilities assumed ) Software 10 years Goodwill Deferred tax liabilities ) Total The goodwill mainly reflected the competitive advantages the Group expected to realize from Hangzhou Kuyue in the community value-added services. The goodwill was allocated to the community value-added services segment and is not deductible for tax purposes. |
Acquisition of Non-controlling
Acquisition of Non-controlling Interests | 12 Months Ended |
Dec. 31, 2015 | |
Acquisition of Non-controlling Interests | |
Acquisition of Non-controlling Interests | 6. Acquisition of Non-controlling Interests There were 3 major acquisitions of non-controlling interests completed in 2014. 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 did not already own with a total consideration of $16,254,600 (RMB100,000,000). After the acquisition, Beijing Lotta became a wholly-owned subsidiary of the Group. As the Group retains the controlling interest in Beijing Lotta before and after the acquisition, the acquisition was accounted for as an equity transaction. The carrying amount of the non-controlling interest in the subsidiary was adjusted to reflect the change in Group’s ownership interest in Beijing Lotta. 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. As a result of the transaction, $15,112,828 additional paid capital and $1,141,772 non-controlling interest were derecognized. As of December 31, 2015, $3,387,956 (RMB22,000,000) was unpaid. In September 2014, the Group entered into an equity transfer agreement with six individual shareholders (five of them are employees of the Group) of Beijing Yisheng Leju Advertising Co., Ltd (“Beijing Leju Advertisement”) and Yisheng Leju (Shanghai) Information Service Co., Ltd.( “Yisheng Shanghai”), two subsidiaries of Beijing Leju, to purchase the remaining 24.5% shares of Beijing Leju Advertisement and Yisheng Shanghai that it did not own with a total consideration of $19,074,412 (RMB117,355,000). Considerations to the five employees shareholders are $16,054,493 (RMB98,775,000) for 19.5% equity interest, equivalent to $823,307 per 1% equity interest, while the consideration for the rest 5.0% to the non-employee shareholder is $3,019,919 (RMB18,580,000), equivalent to $603,984 per 1% of equity interest. In connection with the equity transfer, the five employees are also required to serve for the Group for two years from the closing date of the transaction. The Group considers the purchase price to the nonemployee shareholder to represent fair value of the equity interest on the date of transfer. The consideration premium of $4,276,810 paid to the employee shareholders was treated as share-based compensation to be amortized over the 2-year service period. After the acquisition, Beijing Leju Advertisement and Yisheng Shanghai became wholly-owned subsidiaries of the Group. As the Group held a controlling interest in Beijing Leju Advertisement and Yisheng Shanghai before and after the acquisition, the acquisition was accounted for as an equity transaction. The carrying amounts of the non-controlling interest in two subsidiaries were adjusted to reflect the change in Group’s ownership interest in them. The difference between the fair value of the consideration paid and the amount by which the non-controlling interest was recognized in equity. As a result of the equity transaction, $12,906,772 additional paid capital and $1,890,830 non-controlling interest were derecognized. As of December 31, 2015, $3,706,648 was unpaid. In September 2014, the Group entered into an equity transfer agreement with an individual shareholder of Tianjin Yisheng Leju Advertising Co., Ltd (“Tianjin Leju”), a subsidiary of Beijing Leju, to purchase the remaining 30% shares of Tianjin Leju that it did not own with a total consideration of $4,685,913 (RMB28,830,000). After the acquisition, Tianjn Leju becomes a wholly-owned subsidiary of the Group. As the Group retains the controlling interest in Tianin Leju before and after the acquisition, the acquisition was accounted for as an equity transaction. The carrying amount of the non-controlling interest in the subsidiary was adjusted to reflect the change in Group’s ownership interest in Tianjin Leju. 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. As a result of the transaction, $4,449,469 additional paid capital and $236,444 non-controlling interest were derecognized. As of December 31, 2015, $243,989 was unpaid. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2015 | |
Property and Equipment, Net | |
Property and Equipment, Net | 7. Property and Equipment, Net Property and equipment, net consists of the following: As of December 31, 2014 2015 $ $ Leasehold improvements Buildings Furniture, fixtures and equipment Motor vehicles Total Accumulated depreciation ) ) Property and equipment, net Depreciation expense was $8,206,163, $8,659,092 and $11,689,846 for the years ended December 31, 2013, 2014 and 2015, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets, Net | |
Intangible Assets, Net | 8. Intangible Assets, Net Weighted Average As of December 31, Amortization 2014 2015 Periods $ $ In years Intangible assets not subject to amortization are comprised of the following: Trademark Intangible assets subject to amortization are comprised of the following: Advertising agency agreement with SINA License agreements with SINA Exclusive rights with Baidu — Computer software licenses Customer relationship Database license Favorable lease term Non-compete agreements Customer contracts Domain name Less: Accumulated amortization Advertising agency agreement ) ) License agreements with SINA ) ) Exclusive rights with Baidu ) ) Computer software licenses ) ) Customer relationship ) ) Database license ) ) Favorable lease term ) ) Non-compete agreements ) ) Customer contracts ) ) Domain name ) ) Intangible assets subject to amortization, net Total intangible assets, net In 2011, the Group purchased exclusive rights from Baidu, Inc (‘‘Baidu’’) which allowed 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 $935,177, $52,922 and nil for the years ended December 31, 2013, 2014 and 2015, respectively. In April 2015, the Group extended these rights with Baidu to December 2015, with additional payment of $12,023,475 (RMB75,000,000), which was fully amortized in 2015. The Group paid $15,347,915, $9,004,710 and $12,023,475 in connection with the exclusive rights in 2013, 2014 and 2015, respectively. The advertising agency agreement and license agreements with SINA were recognized in connection with the Group’s acquisition of COHT in 2009, which allows the Group to operate SINA’s existing real estate and home furnishing related channels and have the exclusive right to sell advertising relating to real estate, home furnishing and construction materials on these channels as well as SINA’s other websites through 2019. If the Group sells advertising on SINA’s websites other than above channels, it will pay SINA fees of approximately 15% of the revenues generated from these sales. The acquisition cost was recognized as an intangible asset and amortized over the term of the agreement. In March 2014, the advertising agency agreement and license agreements originally signed between the Group and SINA in 2009 were extended an additional five years to March 2024 for no additional consideration. All other terms of the agreements remain the same. Amortization expense was $37,009,330, $24,677,508 and $28,730,562 for the years ended December 31, 2013, 2014 and 2015, respectively. The Group expects to record amortization expenses of $14,711,092, $14,481,915, $13,370,560, $12,455,303 and $11,788,519 for the years ending December 31, 2016, 2017, 2018, 2019 and 2020 respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill | |
Goodwill | 9. Goodwill Changes in the carrying amount of goodwill by segment for the years ended December 31, 2013, 2014 and 2015 are as follows: Real Estate Real Estate Real Estate Information Community Online Brokerage and Consulting Value-added Other Services Services Services Services Services Total $ $ $ $ $ $ Balance as of January 1, 2013 — — Goodwill recognized upon acquisition — — — — Exchange rate translation — Balance as of December 31, 2013 — — Exchange rate translation ) ) — — — ) Balance as of December 31, 2014 — — Goodwill recognized upon acquisition — — Exchange rate translation ) ) ) — — ) Balance as of December 31, 2015 As of December 31, 2013 Goodwill, gross — — Accumulated impairment charge ) — — — — ) Goodwill, net — — As of December 31, 2014 Goodwill, gross — — Accumulated impairment charge ) — — — — ) Goodwill, net — — As of December 31, 2015 Goodwill, gross Accumulated impairment charge ) — — — — ) Goodwill, net 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. Based on the impairment tests performed, the Group did not record any goodwill impairment charge for the years ended December 31, 2013, 2014 and 2015, respectively. |
Short-Term and Long-Term Borrow
Short-Term and Long-Term Borrowings | 12 Months Ended |
Dec. 31, 2015 | |
Short-Term and Long-Term Borrowings | |
Short-Term and Long-Term Borrowings | 10. Short-Term and Long-Term Borrowings In 2014, the Group entered into a RMB 234,300,000 ($38,290,478) short-term loan with a PRC commercial bank, which was guaranteed by CRIC Commercial Consultancy Holdings Limited, a subsidiary of the Group registered in BVI. The term of the loan was 12 months from the date the Group received the loan with an annual interest rate of 6.5%. As of December 31, 2014, the balance of the short-term loan was $35,953,500 (RMB 220,000,000) denominated in RMB. For the year ended December 31, 2014, $6,416 interest expenses were accrued for the short-term loan. The loan was fully repaid in December 2015. In 2015, the Group entered into three short-term loan arrangements with a PRC commercial bank, which are all guaranteed by Shanghai Real Estate Sales (Group) Co., Ltd, a subsidiary of the Group registered in the PRC. The terms of all the three loans are 12 months from the date the Group received the loan. Annual interest rates for the loans are 5.34%, 5.34% and 5.06%, respectively. As of December 31, 2015, the balance of the short-term loan were $15,399,800 (RMB 100,000,000) in aggregate, denominated in RMB. In 2015, the Group entered into a short-term loan with a PRC commercial bank, which is guaranteed by Shanghai CRIC Information Technology Co. Ltd, a subsidiary of the Group registered in the PRC. The term of the loan is 12 months from the date the Group received the loan, with an interest rate of 4.65%. The loan was pledged by accounts receivable of the Company in the amount of $15,819,839 (RMB 102,727,564). As of December 31, 2015, the balance of the short-term loan was $15,399,800 (RMB 100,000,000), denominated in RMB. In 2015, the Group borrowed a RMB denominated loan of $53,899,300 (RMB 350,000,000) with an interest rate of 6.04% per annum from a PRC commercial bank. The loan is secured by properties held by the Group in the PRC. The agreement value of these properties is $91,228,415(RMB 592,400,000). $9,239,880 (RMB 60,000,000) of the total loan is due in 12 months, and the remaining $ 44,659,420 (RMB 290,000,000) is due in 24 months. As of December 31, 2015, $9,239,880 (RMB 60,000,000) was recorded in short-term loan and $ 44,659,420 (RMB 290,000,000) was recorded as long-term loan. In 2015, the Group entered into a long-term loan arrangement with Shanghai International Trust co., Ltd, which is guaranteed by CRIC Commercial Consultancy Holdings Limited, a subsidiary of the Group registered in BVI. Total loan amount is $32,185,582 (RMB209,000,000) and matures in 24 months from the date the Group received the loan with an annual interest rate of 6.95%. As of December 31, 2015, the balance of the long-term loan was $28,027,636 (RMB 182,000,000), denominated in RMB. |
Convertible Senior Notes
Convertible Senior Notes | 12 Months Ended |
Dec. 31, 2015 | |
Convertible Senior Notes | |
Convertible Senior Notes | 11. 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 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 bears 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 matures 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). Interest expenses were $192,566, $5,319,058, and $5,095,577 for the years ended December 31, 2013, 2014 and 2015, respectively. In 2015, the Group repurchased convertible notes with principal amount of $10,000,000 with the carrying amount of $9,827,477 from the open market with a consideration of $9,569,451. 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, 2015, none of the Notes had been converted. |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2015 | |
Dividends | |
Dividends | 12. Dividends 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. In March 2014, the Company’s board of directors approved the payment of a cash dividend of $0.20 per ordinary share ($0.20 per ADS) directly from the additional paid-in capital account, for a total of $27,598,118, which was paid in May 2014 to shareholders of record as of the close of business on May 2, 2014. In November 2014, the Company’s board of directors approved the payment of a cash dividend of $0.20 per ordinary share ($0.20 per ADS) directly from the additional paid-in capital account, for a total of $28,415,784, of which $15,513,296 was paid in December 2014 to shareholders of record as of the close of business on December 3, 2014. The Company’s board of directors also approved the Company’s distribution of 0.05 Leju ordinary shares to the holder of each E-House ordinary share (or 0.05 Leju ADSs for each E-House ADS), to holders of E-House’s ordinary shares and ADSs. As a result of the distribution of Leju ordinary shares, $21,569,028 non-controlling interest was recognized. The additional paid-in capital was reduced by $77,582,930. In March 2015, the Company’s board of directors approved the Company’s 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 $21,362,234, which was paid in May 2015 to shareholders of record as of the close of business on April 10, 2015. |
Other Income (Loss), Net
Other Income (Loss), Net | 12 Months Ended |
Dec. 31, 2015 | |
Other Income (Loss), Net | |
Other Income (Loss), Net | 13. Other Income (Loss), Net Years Ended December 31, 2013 2014 2015 $ $ $ Gains on marketable securities, realized portion — Foreign exchange gain (loss) ) ) Amortized discounts related to liability for exclusive rights with Baidu ) ) — Gains from sale of properties held for sale — Others Total other income (loss) ) ) |
Income Tax
Income Tax | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax | |
Income Tax | 14. Income Tax The following table summarizes Income tax expense (benefit) incurred in PRC and outside of PRC : Years Ended December 31, 2013 2014 2015 $ $ $ The Income (loss) Before Income Taxes: The PRC Outside of the PRC ) ) ) Total The expense (benefit) for income taxes is comprised of: Years Ended December 31, 2013 2014 2015 $ $ $ Current Tax The PRC Outside of the PRC Deferred Tax The PRC ) ) Outside of the PRC — — — ) ) Income tax expense 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. Shanghai CRIC was approved as a high and new technology enterprise and is therefore subject to a 15% preferential income tax rate 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 2013, Shanghai CRIC was approved as key software enterprise and is subject to a 10% preferential income tax rate from 2013 through 2014. In March 2015, Shanghai CRIC was approved as a high and new technology enterprise and was therefore entitled to a 15% preferential income tax rate for the years from 2015 through 2016. 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. Shanghai SINA Leju renewed its qualification of high and new technology enterprise in 2015 and was entitled to enjoy a favorable statutory tax rate of 15% from 2015 through 2017. 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 to 2014. 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 ($15,400) 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, 2014 2015 $ $ Deferred tax assets: Accrued salary expenses Bad debt provision Net operating loss carry forwards Advertising expenses temporarily non-deductible Other Gross deferred tax assets Valuation allowance ) ) Total deferred tax assets Analysis as: Current Non-current Deferred tax liabilities: Amortization of intangible and other assets Total deferred tax liabilities Analysis as: Current — — Non-current Movement of the valuation allowance is as follows: Years Ended December 31, 2013 2014 2015 $ $ $ Balance as of January 1, Additions Write off — ) ) Changes due to foreign exchange ) ) Balance as of December 31, The Group has recognized a valuation allowance against deferred tax assets on tax loss carry forwards of $3,631,241, $2,646,753 and $27,539,836 for the years ended December 31, 2013, 2014 and 2015, 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, 2015. Such objective evidence limits the Group’s ability to consider other subjective evidence such as our projections for future growth and our tax planning strategies. On the basis of this evaluation, as of December 31, 2015, a valuation allowance of $38,483,925 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, 2013 2014 2015 $ $ $ PRC income tax rate % % % Expenses not deductible for tax purposes % % % Effect of tax preference )% )% )% Effect of different tax rate of subsidiary operation in other jurisdiction )% % % Valuation allowance movement % % % Effect of different tax rate of DTA and DTL applied )% % )% Withholding tax — — % Others )% )% )% % % % The aggregate amount and per share effect of the tax holiday are as follows: Years Ended December 31, 2013 2014 2015 $ $ $ The aggregate dollar effect Per share effect — basic Per share effect — diluted As of December 31, 2014 and 2015, the Group had tax losses carry forward of $150,106,326 and $186,234,042 respectively. These tax losses are available for offset against future profits that may be carried forward until calendar year 2019 and 2020, respectively. Undistributed earnings of the Company’s PRC subsidiaries were approximately $536.8 million at December 31, 2015, of which approximately $240.3 million is generated by the PRC subsidiaries of Leju and is considered to be indefinitely reinvested in PRC. 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. In 2015, the Group accrued 10% withholding tax for the earnings generated by the Company’s PRC subsidiaries (other than the PRC subsidiaries of Leju) since January 1, 2008 that are distributed outside or intended to distributed outside of China, in the amount of $ 36,284,325, and accrued 10% withholding tax for the gains recognized for the disposal of Scepter, described in Note 4. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Share-Based Compensation | |
Share-Based Compensation | 15. 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: A summary of option activity under the E-House Plan during the year ended December 31, 2015 is presented below: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value of Options $ $ Outstanding, as of January 1, 2015 Exercised ) Forfeited ) Outstanding, as of December 31, 2015 Vested and expected to vest as of December 31, 2015 Exercisable as of December 31, 2015 The Company recorded compensation expense of $12,817,935, $5,950,940 and nil for the years ended December 31, 2013, 2014 and 2015, respectively. During the years ended December 31, 2013, 2014 and 2015, 4,596,761, 3,446,585 and 513,261 options were exercised having a total intrinsic value of $25,248,554, $23,679,729 and $1,745,007, respectively. As of December 31, 2015, there is no unrecognized compensation expense related to unvested share options granted under the E-House Plan. Restricted Shares: The Company granted 1,303,000, 1,439,000 and nil restricted shares to certain employees, directors and officers in 2013, 2014 and 2015 respectively. Under the terms of each restricted shares, restricted shares vest over three years. A summary of restricted share activity under the E-House Plan during the year ended December 31, 2015 is presented below: Number of Restricted Shares Weighted Average Grant-date Fair Value $ Unvested as of January 1, 2015 Vested ) Forfeited ) Unvested as of December 31, 2015 The total fair value of restricted shares vested in 2013, 2014 and 2015 was $5,612,379, $6,094,602 and $9,909,868, respectively. As of December 31, 2015, there was $11,393,099 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 1.55 years. The Company recorded compensation expense of $5,668,460, $6,174,583 and $9,680,385, for the years ended December 31, 2013 and 2014 and 2015, respectively, related to restricted shares. Leju Plan In November 2013, Leju 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 total outstanding shares on an as-converted and fully diluted basis as of the effective date of the plan. Options have a ten-year life. Share Options: On December 1, 2013, Leju granted 7,192,000 options to purchase its ordinary shares to certain of Leju’s employees and E-House’s employees at an exercise price of $4.60 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 of Leju 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 $4.60 per share, which were 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. In January, 2014, Leju granted 60,000 restricted shares to 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 $4.60 per share, which were 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. During 2015, Leju granted 2,517,000 options to purchase its ordinary shares to certain of Leju’s employees and E-House’s employees at exercise price ranging from $5.54 to $9.68 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. 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 using the following assumptions: 2013 2015 Risk-free rate of return % % Contractual life of option 10 years 10 years Estimated volatility rate % % Dividend yield % % A summary of option activity under the Leju Plan during the year ended December 31, 2015 is presented below: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Weighted Average Aggregate Intrinsic Value of Options $ Outstanding, as of January 1, 2015 Granted Exercised ) Forfeited ) Outstanding, as of December 31, 2015 Vested and expected to vest as of December 31, 2015 Exercisable as of December 31, 2015 The weighted average grant-date fair value of the options granted in December 2013 was $2.21 and $3.44 per share of the options granted in 2015. For the year ended December 31, 2013, 2014 and 2015, the Group recorded compensation expenses of $381,874, $4,525,552 and $5,096,192 for the share options granted to the Group’s employees, respectively. During the years ended December 31, 2014 and 2015, 266,201 and 196,185 options were exercised having a total intrinsic value of $1,668,693, and $949,907, respectively. As of December 31, 2015, total unrecognized compensation expense related to unvested share options granted under the Leju Plan was $11,525,658. That cost is expected to be recognized over a weighted-average period of 2.13 years. Restricted Shares: On March 18, 2014, Leju granted 866,000 restricted shares to certain employees, directors and officers, under the terms of each restricted shares, restricted shares vest over three years. On August 21, 2014, Leju granted 229,400 restricted shares to certain employees and officers, under the terms of each restricted shares, restricted shares vest over eight months. A summary of restricted share activity under the Leju Plan during the year ended December 31, 2015 is presented below: Number of Restricted Shares Weighted Average Grant-date Fair Value $ Outstanding, as of January 1, 2015 Vested ) Forfeited ) Outstanding, as of December 31, 2015 The total fair value of restricted shares vested in 2013, 2014 and 2015 was nil, $486,200 and $7,179,455, respectively. For the years ended December 31, 2013, 2014 and 2015, the Group recorded compensation expenses of $34,758, $4,923,226 and $ 5,314,902 for the restricted shares granted to the Group’s employees. As of December 31, 2015, total unrecognized compensation expense related to unvested restricted shares granted under the Leju Plan was $4,384,344. That cost is expected to be recognized over a weighted-average period of 1.19 years. Omnigold P lan In 2015, the Group’s subsidiary, Omnigold Holdings Limited (“Omnigold”), adopted a share incentive plan (“Omnigold Plan”), which proposed that (i) the maximum number of shares of Omnigold available for issuance pursuant to all awards under the Ominigold Plan shall initially be 5,000,000 as of the date the Ominigold Plan was approved and adopted by the Board of Omnigold (the “Effective Date”), and (ii) the Ominigold Plan shall be increased automatically by 5% of the then total issued and outstanding shares on an as-converted fully diluted basis on each of the third, sixth and ninth anniversary of the Effective Date. On August 11, 2015, Omnigold granted 2,400,000 options to purchase its ordinary shares to certain of the Group’s employees at an exercise price of $1.50 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. The Company has used the binomial model to estimate the fair value of the options granted under the Omnigold Plan. The fair value per option was estimated at the date of grant using the following assumptions: 2015 Risk-free rate of return % Contractual life of option 10 years Estimated volatility rate % Dividend yield % A summary of option activity under the Omnigold Plan during the year ended December 31, 2015 is presented below: Number of Options Exercise Price Remaining Contractual Term Aggregate Intrinsic Value of Options $ Outstanding, as of January 1, 2015 — Granted — Exercised — Forfeited ) — Outstanding, as of December 31, 2015 — Vested and expected to vest as of December 31, 2015 — Exercisable as of December 31, 2015 — — The grant-date fair value of the options granted in August, 2015 was $0.30 per share. For the year ended December 31, 2015, the Group recorded compensation expenses of $80,577. As of December 31, 2015, total unrecognized compensation expense related to unvested share options granted under the Omnigold Plan was $545,884. That cost is expected to be recognized over a weighted-average period of 2.61 years. Scepter Plan In August 2014, Scepter adopted a share incentive plan (“Scepter Plan”), which authorized Scepter to offer a variety of share-based incentive awards to employees, officers, directors and E-House’s employees. Under the Scepter Plan, the maximum number of shares that may be issued shall be 750,000 to grant as options or restricted shares over a three-year period. Options have a ten-year life. Share Options: On August 8, 2014, Scepter granted 455,000 options to purchase ordinary shares of Scepter to certain of the Scepter’s employees and E-House’s employees for their services of next three years at an exercise price of $3.30 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. 2014 Average risk-free rate of return % Contractual life of option 10 years Average estimated volatility rate % Average dividend yield % The grant-date fair value of the options granted in August was $1.12 per share. For the year ended December 31, 2014 and 2015, the Group recorded compensation expenses of $66,820 and $84,452 for the share options granted to the Group’s employees. As of the date of Jupai Transaction (Note 1), the Scepter plan was transferred to Jupai and there was no outstanding share options as of December 31, 2015. As of December 31, 2015 there was no unrecognized compensation expense related to unvested share options granted under the Scepter Plan, as Scepter was no longer a subsidiary of the Group. Other Equity Compensation: In September 2014, the Group acquired non-controlling interests from certain employee shareholders. The price premium paid over the fair value of the ordinary shares amounting $4,276,810 was recorded as share-based compensation costs and to be amortized over the required two-year service period (See Note 6). $534,601 and $2,138,404 stock compensation expense was recognized for the year ended December 31, 2014 and 2015. As of December 31, 2014 and 2015, total unrecognized compensation expense related to this compensation agreement were $3,742,209 and $1,603,805, respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Employee Benefit Plans | |
Employee Benefit Plans | 16. 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 $45,924,681, $58,365,171 and $65,851,244, for the years ended December 31, 2013, 2014 and 2015, respectively, for such benefits. |
Distribution of Profits
Distribution of Profits | 12 Months Ended |
Dec. 31, 2015 | |
Distribution of Profits | |
Distribution of Profits | 17. 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, 2014 and 2015 was $40,478,568 and $44,095,817, 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 $183,740,692 and $190,902,154, of which $12,076,642 and $11,234,613 was attributed to general reserve and registered capital of the VIEs, as of December 31, 2014 and 2015, respectively. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurement | |
Fair Value Measurement | 18. Fair Value Measurement As of December 31, 2014 and 2015, information about inputs into the fair value measurements of the Company’s assets and liabilities that are measured at fair value on a recurring basis in periods subsequent to their initial recognition is as follows: Fair Value Measurements at Reporting Date Using Description As of Year Ended December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Investment in preferred shares of Jupai — — Description As of Year Ended December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Investment in preferred shares of Jupai — — — — The following table summarizes the quantitative inputs and assumptions used for investment in preferred shares of Jupai categorized in Level 3 of the fair value hierarchy as of December 31, 2014: Financial Assets Fair Value Valuation Techniques Unobservable Inputs Rate Investment in preferred shares of Jupai $ Discounted cash flow & option pricing method Discount Rate % Discount for Lack of Marketability (“DLOM”) % Terminal growth rate % The following tables summarize the changes in financial assets measured at fair value for which the Group has used Level 3 inputs to determine fair value. Total realized and unrealized gains and losses recorded for Level 3 investments are reported in accumulated other comprehensive income. Level 3 Financial Assets at Fair Value Year Ended 31, 2014 2015 $ $ Balance as of January 1, — Purchased — Changes in gains included in other comprehensive income Reversed the recognized unrealized gains included in other comprehensive income ) Transferred to long-term investment — ) Balance as of December 31 — Unrealized gains — There have been no fair value transfer in valuation techniques within Level 1, Level 2 and Level 3 in 2014 or 2015. There was no asset or liability measured at fair value on a nonrecurring basis in 2013, 2014 or 2015, except that the Group recorded an impairment loss of $5,887,614 for properties held for sale for the year ended December 31, 2015, based on the price of the properties and classified as a level 2 fair value measurement. 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, short-term investment of held-to-maturity investment, customer deposits, other receivables, short-term and long-term borrowing, 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, borrowings and convertible senior notes, 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 $751,909 and $1,290,349 as of December 31, 2014 and 2015, respectively. The fair value of the long-term borrowings was $68,126,316 as of December 31, 2015. 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 convertible senior notes, as a quoted market price is not available and valuation would involve complex models with excessive costs by engaging an independent valuer. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Information | |
Segment Information | 19. 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 2013, the Group had five operating segments: 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; and 5) real estate fund management services. In 2014, the Group established two new operating segments: community value-added services and real estate financial services. In 2015, the Group disposed the real estate fund management services operating segment through the Jupai Transaction. In addition, the real estate promotional events and advertising services, real estate fund management services and real estate financial services did not meet the significance threshold for separate disclosure in any of the three years of 2013, 2014 and 2015, 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 after intercompany elimination for each operating segment after: For the years ended December 31, Real Estate Real Estate Real Estate Information Online Brokerage and Consulting Other 2013 Services Services Services Services Non-allocated Total $ $ $ $ $ $ Revenues — Cost of revenues ) ) ) ) — ) Selling, general and administrative expenses ) ) ) ) ) ) Other operating income — Income (loss) from operations ) ) Interest expenses — — — — ) ) Interest income Other income (expense), net ) ) ) ) Income (loss) before taxes and equity in affiliates ) ) Income tax benefit (expense) ) ) ) ) ) Income (loss) before equity in affiliates ) ) Income (loss) from equity in affiliates ) ) Net income (loss) ) ) Real Estate Real Estate Real Estate Information C ommunity Online Brokerage and Consulting V alue-added Other 201 4 Services Services Services Services Services Non-allocated Total $ $ $ $ $ $ $ Revenues — — Cost of revenues ) ) ) — ) — ) Selling, general and administrative expenses ) ) ) ) ) ) ) Other operating income — — Income (loss) from operations ) ) Interest expenses — — — — — ) ) Interest income Other income ( expense ) , net ) — ) Income (loss) before taxes and equity in affiliates ) ) Income tax benefit (expense) ) ) ) ) ) Income (loss) before equity in affiliates ) ) Income (loss) from equity in affiliates ) — ) Net income (loss) ) ) Real Estate Real Estate Real Estate Information Community Online Brokerage and Consulting Value-added Other 2015 Services Services Services Services Services Non-allocated Total $ $ $ $ $ $ $ Revenues — Cost of revenues ) ) ) ) ) — ) Selling, general and administrative expenses ) ) ) ) ) ) ) Other operating income — — Income (loss) from operations ) ) ) ) ) Interest expenses — — — — — ) ) Interest income Other income (expense), net ) ) ) Investment Income — — Income (loss) before taxes and equity in affiliates ) ) ) ) Income tax expense ) ) ) ) ) ) ) Income (loss) before equity in affiliates ) ) ) ) ) Income (loss) from equity in affiliates ) ) Net income (loss) ) ) ) ) ) Geographic Substantially all of the Group’s revenues from external customers and long-lived assets are located in the PRC. Major customers No customer accounted for 10% or more of total net revenues in 2013, 2014 and 2015. Details of the accounts receivable from customers accounting for 10% or more of total net accounts receivable are as follows: As of December 31, 2014 2015 $ $ Customer A Details of the customer deposits from customers accounting for 10% or more of total net customer deposits are as follows: As of December 31, 2014 2015 $ $ Customer B Customer C Customer D * Customer E * Customer F * * indicates the balance of customer deposit of the customer was less than 10% of total customer deposits at the end of the year. |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Balances and Transactions | |
Related Party Balances and Transactions | 20. Related Party Balances and Transactions Amounts due from related parties are comprised of the following: As of December 31, 2014 2015 $ $ Customer and supplier Other Total amounts due from related parties Amounts due to related parties are comprised of the following: As of December 31, 2014 2015 $ $ Management Customer and supplier Other Total amounts due to related parties (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, 2013 2014 2015 $ $ $ Beijing China Real Estate Research Association Technology Ltd (“CRERAT”) SINA Corporation (“SINA”) — Shanghai Guanfu Treasure-house Assets Management Co., Ltd (“Guanfu Treasure-house”) — — Selling, general and administrative expenses recorded by the Group: Years Ended December 31, 2013 2014 2015 $ $ $ CRERAT — — SINA — Guanfu Treasure-house — Cost of revenue recorded by the Group: Years Ended December 31, 2013 2014 2015 $ $ $ SINA Intangible assets purchased by the Group: Years Ended December 31, 2013 2014 2015 $ $ $ SINA — — Hangzhou Kuyue — * *Hangzhou Kuyue became a wholly owned subsidiary of the Group from July 2015 (Note 5). Amount due from (to) customers and suppliers who are related parties are as follows: Amount due from (to) related parties As of December 31, 2014 2015 $ $ CRERAT SINA ) ) Guanfu Treasure-house ) Hangzhou Kuyue ) * 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 has been a major shareholder of the Company since then. Guanfu Treasure-house, an entity controlled by Mr. Xinzhou, co-chairman and chief executive officer of the Group, controls Guanfu Treasure-house. The amount due to Guanfu Treasure-house represents payables for the services provided by the entity. The group acquired 21% equity interest of Hangzhou Kuyue in 2014, and can exercise significant influence over the entity. During the acquisition of 79% equity interest in 2015, t he Group purchased 30% equity interest of Hangzhou Kuyue at RMB33,000,000 ($5,393,025) from SINA. Hangzhou Kuyue became a wholly owned subsidiary of the Group in May 2015 (Note 5). (b) Affiliates Amounts due from (to) affiliates are comprised as the following: As of December 31, 2014 2015 $ $ Shanghai Yueshun Real Estate Development Co., Ltd. (1) — Shanghai Jin Yue Real Estate Development Co., Ltd. (2) ) ) Suzhou Hehui Xuyuechang Equity Investment Center (“Xuyuechang Center”) (3) — Suzhou Hehui Xuyuerong Equity Investment Center (“Xuyuerong Center”) (3) — Suzhou Hehui Xuyuezhen Equity Investment Center (“Xuyuezhen Center”) (3) — E-House (China) Real Estate Investment Fund 1 L.P. (the “Fund”) (4) ) Muxin Center (5) ) — Jupai (6) — Jupai (6) — ) 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) Scepter holds 0.6%, 0.5% and 0.5% equity interest of Xuyuechang Center, Xuyuerong Center and Xuyuezhen Center, respectively and also acts as a non-acting general partner and provides investment advice to the entities. The amount t receivable of December 31, 2014 is the management fee receivable from the entities. Subsequent to the Jupai Transaction, the Group no longer directly holds any equity interests and earned any management fee from these entities. (4) 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. The amount receivable of December 31, 2014 is the carried interest receivable from the Fund. The amount payable of December 31, 2015 is the cash received on behalf of the Fund. (5) The Group holds 23.4% equity interest of Muxin Center and Scepter also acts as general partner and provides investment advice to the entities. The amount payable is the advance management fee received by the Group. Subsequent to the Jupai Transaction, the Group no longer earns any management fee from Muxin Center. (6) The Group is the largest shareholder of Jupai, and Mr Xin Zhou, the Group’s co-chairman and chief executive officer of the Group is a director of Jupai. The receivable balance was dividend receivable from Yidezhen, a subsidiary of Scepter, which became a subsidiary of Jupai from July, 2015. The payable balance represents the acquisition deposit from Jupai for acquiring an long-term investment held by the Group. The acquisition was still in the process by the end of year 2015. (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 or carried interest from funds are comprised of the following: Years Ended December 31, 2013 2014 2015 $ $ $ The Fund — E-House Shengyuan Equity Investment Center (“Shengyuan Center”) E-House Shengquan Equity Investment Center (“Shengquan Center”) Wuling Center (Note 4) Shouxin Center (Note 4) — Muxin Center (Note 4) — Jupai (2) — — Others (1) Total management fee or carried interest earned The amount presented in the table is the revenue without net of sales tax. Notes: Scepter’s subsidiaries or VIEs act as the general partners of Shenyuan Center, Shenquan Center, Wuling Center, Shouxin Center and Muxin Center, and act as non-acting general partner of Xuyuechang Center, Xuyuerong Center and Xuyuezhen Center, and earned management fee. Subsequent to the Jupai Transaction in July 2015 (Note 1), the Group no longer generates any management fee from such entities from then to December 31, 2015. The management fee for above entities in 2015 is the management fee eared from January 1 2015 to the Jupai transaction date. (1) Others represent Xuyuechang Center, Xuyuerong Center and Xuyuezhen Center. The amount represents management fee recognized from these entities during the periods up to the date of the Jupai Transaction. (2) The amount represents management fee recognized from a subsidiary of Jupai by a subsidiary of Scepter before the Jupai Transaction (Note1). In January 2010, Shengyuan Center was formed for the purpose of making equity investments in areas deemed suitable. 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 2014 and 2015, the Group received $1,781,581 (RMB10,881,747 ) and $2,897,802 (RMB 18,258,244 ) capital return from Shengyuan Center, respectively. In April 2010, 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, was formed. Mr. Xin Zhou, the Company’s co-chairman and chief executive officer, holds a 2.4% equity interest in the Shengquan Center. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies | |
Commitments and Contingencies | 21. 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 $23,033,850, $28,223,879, and $31,761,708, for the years ended December 31, 2013, 2014 and 2015, respectively. Future minimum lease payments under non-cancelable operating lease agreements at December 31, 2015 were as follows: Year Ended December 31 Amount $ 2016 2017 2018 2019 2020 Then thereafter Total ( b ) Properties payment commitments As of December 31, 2015, the Group had a commitment of $2,556,211 for properties to be held for sales within one year. As of December 31, 2015, the Group had a commitment of $13,007,441 for an office building which will be used as offices by a subsidiary of the Group and is payable within one year. ( c ) 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 recognized carried interest income of nil, $5,386,412 and nil for the years ended December 31, 2013, 2014 and 2015, respectively. The Group did not have any clawback obligations as of December 31, 2014 and 2015. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events | |
Subsequent Events | 22. Subsequent Events On April 15, 2016, the Company announced that it has entered into a definitive Agreement and Plan of Merger (the “Merger Agreement”) with E-House Holdings Ltd. (“Parent”) and its wholly-owned subsidiary E-House Merger Sub Ltd. (“Merger Sub”). Pursuant to the Merger Agreement, Parent will acquire the Company for a cash consideration equal to US$6.85 per ordinary share of the Company (each, a “Share”) or American depositary share of the Company, each American depositary share representing one Share (each, an “ADS”). Subject to the terms and conditions of the Merger Agreement, at the effective time of the merger, Merger Sub will merge with and into the Company, with the Company continuing as the surviving corporation and a wholly-owned subsidiary of Parent, and each of the Shares (including Shares represented by ADSs) issued and outstanding immediately prior to the effective time of the merger will be cancelled and cease to exist in exchange for the right to receive US$6.85 per Share or ADS, in each case, in cash, without interest and net of any applicable withholding taxes, except for (i) Shares (including Shares represented by ADSs) beneficially owned by Mr. Xin Zhou, the co-chairman of the board of directors and chief executive officer of the Company, Kanrich Holdings Limited, On Chance, Inc. and Jun Heng Investment Limited, each controlled by Mr. Zhou, Mr. Neil Nanpeng Shen, a member of the board of directors of the Company, Smart Create Group Limited and Smart Master International Limited, each controlled by Mr. Shen, and SINA Corporation (collectively, the “Buyer Group”), (ii) Shares (including Shares represented by ADSs) owned by the Company or any of its subsidiaries, (iii) Shares (including Shares represented by ADSs) held by the ADS depositary and reserved for issuance and allocation pursuant to the Company’s share incentive plan, and (iv) Shares owned by holders who have validly exercised and not effectively withdrawn or lost their rights to dissent from the merger pursuant to Section 238 of the Companies Law of the Cayman Islands, which Shares will be cancelled at the effective time of the merger except for the right to receive the fair value of such Shares determined in accordance with the provisions of Section 238 of the Companies Law of the Cayman Islands. The Buyer Group intends to fund the merger through a combination of a committed loan facility in the amount of $350 million arranged by Shanghai Pudong Development Bank Co., Ltd., Nanhui Sub-Branch (the “Lender”) pursuant to a debt commitment letter issued by the Lender and equity contributions of members of the Buyer Group pursuant to equity commitment letters issued by such members. |
Summary of Principal Accounti31
Summary of Principal Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
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 , Shanghai Kushuo , Shanghai Fangjia and Shanghai Weihui . All inter-company transactions and balances have been eliminated in consolidation. 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. Shanghai CRIC terminated its arrangements with Shanghai Fangjia and transferred all its rights and liabilities to Shanghai Yifang Software Co., Ltd. (“Shanghai Yifang”) during 2015. 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, Shanghai SINA Leju Information Technology Co., Ltd. (“Shanghai SINA Leju”) and Shanghai Yi Yue Information Technology Co. Ltd. (“Shanghai Yi Yue”), Beijing Maiteng Fengshun Science and Technology Co., Ltd., (“Beijing Maiteng”), Shanghai Yifang, and Shanghai Weidian (collectively, the “Foreign Owned Subsidiaries”) entered into a series of contractual arrangements with Shanghai Kushuo, Beijing Leju, Shanghai Yi Xin, Beijing Jiajujiu, Shanghai Fangjia and Shanghai Weihui (collectively the “VIEs”) and their respective shareholders, respectively, as summarized below: Name of Foreign Owned Foreign Owned Subsidiaries’ Economic Ownership Subsidiaries of VIEs Name of VIEs Activities of VIEs Shanghai Yifang % Shanghai Kushuo Operate the real estate offline advertising business Shanghai SINA Leju % Beijing Leju Operate the online advertising and listing business Shanghai Yi Yue % Shanghai Yi Xin Operate the e-commerce business Beijing Maiteng % Beijing Jiajujiu Operate the online home furnishing business Shanghai Yifang % Shanghai Fangjia Operate the information and consulting business Shanghai Weidian % Shanghai Weihui Operate the community value-added 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 substantially all 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, 2014 2015 $ $ Cash and cash equivalents Accounts receivable, net of allowance for doubtful accounts Customer deposits — Other current assets Amounts due from related parties Total current assets Total non-current assets Total assets Accounts payable Accrued payroll and welfare expenses Income tax payable Other tax payable Amounts due to related parties Advance from customers and deferred revenue Other current liabilities Total current liabilities Deferred tax liabilities, non-current Total liabilities Years Ended December 31, 2013 2014 2015 $ $ $ Total revenues Cost of revenues ) ) ) Net income (loss) ) ) Net cash provided by operating activities Net cash used in investing activities ) ) ) Net cash used in financing activities ) ) ) 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, valuation of fair value of investment in preferred shares of Jupai , and assumptions related to the valuation of fair value of Leju and Scepter’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. |
Business combinations | (e) Business combinations Business combinations are recorded using the acquisition 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 is required to maintain certain bank deposits as collateral for the bank loans to the Group (see Note 10). These balances are subject to withdrawal restrictions and totaled $38,290,478 and $32,185,582 as of December 31, 2014 and 2015, respectively. Restricted cash is reported as non-current unless the restrictions are expected to be released in the next 12 months. The Group provides brokerage services 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 $1,947,961 and $1,810,262 as of December 31, 2014 and 2015, 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 $163,425 and $153,998 as of December 31, 2014 and 2015, respectively. |
Investment in debt and equity securities | (h) Investment in debt and equity securities The Group invests in debt securities and equity securities with readily determinable fair values, and accounts for the investments based on the nature of the products invested, and the Group’s intent and ability to hold the investments to maturity. The Group’s investments in debt securities that have a stated maturity and normally pay a prospective fixed rate of return. The Group classifies the investments in debt securities as held-to-maturity when it has both the positive intent and ability to hold them until maturity. Held-to-maturity investments are recorded at amortized cost and are classified as long-term or short-term according to their contractual maturity. Long-term investments are reclassified as short-term when their contractual maturity date is less than one year. Investments that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are reported at fair value with changes in fair value recognized in earnings. Investments that do not meet the criteria of held-to-maturity or trading securities are classified as available-for-sale, and are reported at fair value with changes in fair value included in other comprehensive income. The Group reviews its investments, except for those classified as trading securities, for other-than-temporary impairment based on the specific identification method and considers available quantitative and qualitative evidence in evaluating potential impairment. If the cost of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, government economic plans, the duration and the extent to which the fair value of the investment is less than cost and the Group’s intent and ability to hold the investment to determine whether another-than-temporary impairment has occurred. The Group recognizes other-than-temporary impairment in earnings if it has the intent to sell the debt security or if it is more-likely-than-not that it will be required to sell the debt security before recovery of its amortized cost basis. Additionally, the Group evaluates expected cash flows to be received and determines if credit-related losses on debt securities exist, which are considered to be other-than-temporary, should be recognized in earnings. If the investment’s fair value is less than the cost of an investment and the Group determines the impairment to be other-than-temporary, the Group recognizes an impairment loss based on the fair value of the investment. |
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. 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 also provides online e-commerce services for customers, some of real estate developers require the Group to pay an upfront and refundable deposit to book properties for customers to make sure the customers are able to enjoy the discount when buy properties. These deposits are refunded to the Group subject to certain pre-determined criteria at a date specified in the contracts. The pre-determined criteria are based on sales progress on a project. Customer deposits are recorded as either current or non-current assets based on the Group’s estimate of the date of refund. The Group has not experienced any material non-payment with respect to these deposits to date. 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. |
Accounts receivable | (j) Accounts receivable Accounts receivable, net of allowance for doubtful accounts of $44,002,810 and $65,243,624 at December 31, 2014 and 2015, respectively, consists of following: As of December 31, 2014 2015 $ $ Unbilled accounts receivable Billed accounts receivable Total 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 sale 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. Nil, nil and $5,887,614 impairment was provided for properties held for sale for the years ended December 31, 2013, 2014 and 2015 in selling, general and administrative expenses , respectively. Advance payment for properties to be held for sale are also stated at the lower of cost or net realizable value. The Group evaluates its properties for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Nil, nil and $885,937 impairment was provided for properties held for sale for the years ended December 31, 2013, 2014 and 2015 and recorded as selling, general and administrative expenses in the consolidated statement of operations, respectively. |
Long-term investment | (l) Long-term investment Long-term investments are comprised of investments in publicly traded companies, privately-held companies and investment funds. For long-term investments over which the Group does not have significant influence, the cost method of accounting is used. For long-term investments over which the Group has significant influence, but which it does not control, the equity method accounting is used. The Group generally considers an ownership interest of 20% or higher to represent a presumption of 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). Under equity 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 records its income (loss) from the investment funds one quarter in arrears to enable it to have more time to collect and analyze the investments’ result. 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, 2014 and 2015, 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 3 - 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 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 information and consulting services The Group sells subscriptions to its proprietary CRIC system for which the subscription fee is initially deferred and recognized ratably as revenue 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. 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. Community value-added services The Group launched community value-added services in 2014. No material revenue was generated from these services yet in the year ended December 31, 2015. Other services The Group 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 generated revenues from real estate fund management fees, performance fees and allocations before disposal of Scepter. 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. The Group launched real estate financial services in 2014. No material revenue was generated from these services yet in the year ended December 31, 2015. 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, 2013, 2014 and 2015, 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 $71,908,552, $74,189,077 and $77,257,663 in 2013, 2014 and 2015, 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, project channel fees, 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, the service fee for purchase some consulting reports 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 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. Cost of revenue for the real estate fund management services consists of cost associated with investing department. |
Marketing and advertising expenses | (v) Marketing and a dvertising expenses Marketing and advertising expenses consists primarily of targeted online and offline marketing costs for promoting the Group’s e-commerce projects, increasing visibility and building brand, such as Leju property visit, sponsored marketing campaigns, online or print advertising, public relations and sponsored events. The Company expenses all marketing advertising costs as incurred and record these costs within “Selling, general and administrative expenses” on the consolidated statements of operations when incurred. The nature of the Company’s direct marketing activities is such that they are intended to attract subscribers for the online advertising and potential property buyers to purchase the discount coupons. The Group incurred advertising expenses amounting to $100,457,370, $208,667,609 and $314,985,447 for the years ended December 31, 2013, 2014 and 2015, 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 $862,383, exchange gain $613,227 and exchange loss $3,144,228 for the years ended December 31, 2013, 2014 and 2015, 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 $4,917,642, $8,786,891 and $6,756,906 were included in other operating income for the years ended December 31, 2013, 2014 and 2015, 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: 2013 2014 2015 $ $ $ Balance as of January 1 Provisions for doubtful accounts Write offs ) ) ) Changes due to foreign exchange ) ) Balance as of December 31 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, 2013 2014 2015 Net income (loss) attributable to E-House ordinary shareholders — basic $ $ $ ) Decrease of income from Leju* — ) — Interest of Convertible Senior Notes (including stated interest and amortization of discount and issuance costs) — — Net income (loss) attributable to E-House ordinary shareholders — diluted $ $ $ ) Weighted average ordinary shares outstanding— basic Convertible senior notes — — Share options and restricted shares — Weighted average number of ordinary shares outstanding — diluted Basic earnings (loss) per share $ $ $ ) Diluted earnings (loss) per share $ $ $ ) * In calculating diluted earnings per share, the amount of Leju’s net income included in net income attributable to E-House’s ordinary shareholders is calculated by multiplying Leju’s diluted EPS by the weighted average number of Leju shares held by E-House’s during the period, which may result in net income attributable to E-House ordinary shareholders, for purposes of computing diluted earnings per share, being different from that actually recorded in the consolidated statements of operations. This difference is presented as decrease of income from Leju. Diluted earnings (loss) per share do not include the following instruments as their inclusion would have been anti-dilutive: Years Ended December 31, 2013 2014 2015 Share options and restricted shares — — Convertible senior notes — |
Non-controlling interest | (aa) Non-controlling interest As of December 31, 2015, the majority of the Group’s non-controlling interest is attributable to Leju. As of December 31, 2015, E-House retained a 69% equity interest in Leju. Non-controlling interest in Leju included in the Company’s consolidated balance sheets was $124,892,590 and $129,316,476 as of December 31, 2014 and 2015. For the year ended December 31, 2014 and 2015, $50,702,835 and $24,566,457 of the Group’s consolidated net income was attributable to Leju. The following schedule shows the effects of changes in E-House’s ownership interest in Leju and other significant less than wholly owned subsidiaries on equity attributable to E-House: Years Ended December 31, 2013 2014 2015 Net income (loss) attributable to E-House ) Transfers to the non-controlling interest: Increase in E-House’s equity by partial disposal of subsidiaries — — Increase in E-House’s additional paid-in capital for issuing Leju’s shares to public — — Decrease in E-House’s additional paid-in capital for Leju share distribution to E-House’s shareholders — ) — Decrease in E-House’s additional paid-in capital and accumulated other comprehensive income for acquisition of non-controlling interest — ) ) Increase (decrease) in E-House’s additional paid-in capital for the exercise of Leju’s options and the vesting of Leju’s restricted shares — ) Net transfers from (to) non-controlling interest — ) Change from net income (loss) attributable to E-House and transfers (to) from non-controlling interest ) |
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 and the unrealized gain/loss due to the changes in fair value of the available-for-sale investment. |
Recently issued accounting pronouncements | (ac) Recently issued accounting pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued, ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”. The guidance replaces almost all exiting revenue recognition guidance, including industry specific guidance, in current U.S. generally accepted accounting principles. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: Step 1: Identify the contract(s) with a customer. Step 2: Identify the performance obligations in the contract. Step 3: Determine the transaction price. Step 4: Allocate the transaction price to the performance obligations in the contract. Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 is originally effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. ASU 2015-14, Revenue from Contracts with Customers, defers the effective date of ASU 2014-09 by one year. As a result, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017 and interim periods therein. Early adoption is permitted to the original effective date. The Group is in the process of evaluating the impact of adoption of this guidance on the Group’s consolidated financial statements. In August 2015, the FASB issued a new pronouncement, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. The amendments in this ASU provide that public business entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is in the process of evaluating the impact of the standard on our consolidated financial statements. In February 2015, the FASB issued, ASU 2015-02, “Amendments to the Consolidation Analysis”, regarding consolidation of legal entities such as limited partnerships, limited liability corporations, and securitization structures. The guidance eliminates the deferral issued by the FASB in February 2010 of the accounting guidance for VIE for certain investment funds, including mutual funds, private equity funds and hedge funds. In addition, the guidance amends the evaluation of fees paid to a decision maker or a service provider, and exempts certain money market funds from consolidation. The guidance will be effective for accounting periods beginning after December 15, 2015 with early adoption permitted. The Group early adopted ASU 2015-02 for the year ended December 31, 2015. In adopting the guidance, the Company re-evaluated the existing consolidated VIEs and assessed that the adoption neither changes the conclusion of the consolidated VIEs and nor requires new VIEs to be consolidated, and as such has not had a material impact on the Group’s consolidated financial statements. In April 2015, the FASB issued ASU 2015-03 as part of its simplification initiative. The ASU changes the presentation of debt issuance costs in financial statements. Under the ASU, an entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. The requirement to present debt issuance costs as a direct reduction of the related debt liability (rather than as an asset) is consistent with the presentation of debt discounts under U.S. GAAP. In addition, it converges the guidance in U.S. GAAP with that in IFRSs, under which transaction costs that are directly attributable to the issuance of a financial liability are treated as an adjustment to the initial carrying amount of the liability. ASU 2015-03 is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Subsequent in August 2015, the FASB issued ASU 2015-15 related with the presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements, under which the SEC staff stated it would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The Group does not expect the adoption of the above guidance will have a significant effect on the Group’s consolidated financial statements. In September 2015, the FASB issued ASU2015- 16 related to the accounting for measurement period adjustments recognized in a business combination. Under the previous standard, when adjustments were made to amounts previously reported as part of a business combination during the measurement period, entities were required to revise comparative information for prior periods. Under the new standard, entities must recognize these adjustments in the reporting period in which the amounts are determined rather than retrospectively. The new standard is effective for fiscal years beginning after December 15, 2015, including interim periods within that reporting period and early adoption is permitted. The Group does not expect the adoption of this guidance will have a significant effect on the Group’s consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, which requires deferred income tax liabilities and assets to be classified as noncurrent on the balance sheet rather than being separated into current and noncurrent. The guidance is effective for public entities for annual periods beginning after December 15, 2016, and interim periods within those annual periods with early adoption being permitted. The ASU will only have an impact on the Group’s presentation of tax assets and liabilities in the Group’s consolidated balance sheets classification upon adoption. In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which requires that equity investments, except for those accounted for under the equity method or those that result in consolidation of the investee, be measured at fair value, with subsequent changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. ASU 2016-01 also impacts the presentation and disclosure requirements for financial instruments. ASU 2016-01 is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted only for certain provisions. The Group is in the process of evaluating the impact of adoption of this guidance on the Group’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to recognize most leases on the balance sheet. This ASU requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Lessees are permitted to make an accounting policy election to not recognize the asset and liability for leases with a term of twelve months or less. The ASU does not significantly change the lessees’ recognition, measurement and presentation of expenses and cash flows from the previous accounting standard. Lessors’ accounting under the ASC is largely unchanged from the previous accounting standard. In addition, the ASU expands the disclosure requirements of lease arrangements. Lessees and lessors will use a modified retrospective transition approach, which includes a number of practical expedients. The provisions of this guidance are effective for annual periods beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. The Group is in the process of evaluating the impact of adoption of this guidance on the Group’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-07, which eliminates the requirement to retroactively adopt the equity method of accounting. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. The amendments in this Update are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. Earlier application is permitted. The Group is in the process of evaluating the impact of adoption of this guidance on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-08, which amends the principal-versus-agent implementation guidance and illustrations in the Board’s new revenue standard (ASC 606). The amendments in this update clarify the implementation guidance on principal versus agent considerations. When another party, along with the reporting entity, is involved in providing goods or services to a customer, an entity is required to determine whether the nature of its promise is to provide that good or service to the customer (as a principal) or to arrange for the good or service to be provided to the customer by the other party (as an agent). The guidance is effective for interim and annual periods beginning after December 15, 2017. The Group is in the process of evaluating the impact of adoption of this guidance on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. For public entities, the ASU is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those annual reporting periods. Early adoption will be permitted in any interim or annual period for which financial statements have not yet been issued or have not been made available for issuance. The Group is in the process of evaluating the impact of adoption of this guidance on the consolidated financial statements. |
Organization and Principal Ac32
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Organization and Principal Activities | |
Schedule of major subsidiaries and the consolidated VIEs | The following table lists major subsidiaries and the consolidated VIEs of the Company as of December 31, 2015: Date of Place of Percentage of incorporation incorporation Ownership Shanghai Real Estate Sales (Group) Co., Ltd. 15-Aug-00 PRC % Shanghai City Rehouse Real Estate Agency Ltd. 17-May-02 PRC % Shanghai CRIC Information Technology Co., Ltd. (“Shanghai CRIC”) 03-Jul-06 PRC % Leju Holdings Ltd. 20-Nov-13 Cayman % Shanghai Xinju Finance Information Services Co., Ltd.(“Shanghai Xinju”) 22-May-14 PRC % Shanghai Weidian Information Technology Co., Ltd. (“Shanghai Weidian”) 20-Aug-14 PRC % Beijing Yisheng Leju Information Services Co., Ltd. (“Beijing Leju”) 13-Feb-08 PRC VIE Shanghai Yi Xin E-Commerce Co., Ltd. (“Shanghai Yi Xin”) 05-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 Shanghai Fangjia Information Technology Co., Ltd. (“Shanghai Fangjia”) 29-Oct-14 PRC VIE Shanghai Weihui Business Information Consulting Co., Ltd. (“Shanghai Weihui”) 11-Sep-14 PRC VIE |
Summary of Principal Accounti33
Summary of Principal Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Principal Accounting Policies | |
Schedule of ownership interest in foreign owned subsidiaries | Name of Foreign Owned Foreign Owned Subsidiaries’ Economic Ownership Subsidiaries of VIEs Name of VIEs Activities of VIEs Shanghai Yifang % Shanghai Kushuo Operate the real estate offline advertising business Shanghai SINA Leju % Beijing Leju Operate the online advertising and listing business Shanghai Yi Yue % Shanghai Yi Xin Operate the e-commerce business Beijing Maiteng % Beijing Jiajujiu Operate the online home furnishing business Shanghai Yifang % Shanghai Fangjia Operate the information and consulting business Shanghai Weidian % Shanghai Weihui Operate the community value-added business |
Schedule of financial statement balances included in the consolidated financial statements | As of December 31, 2014 2015 $ $ Cash and cash equivalents Accounts receivable, net of allowance for doubtful accounts Customer deposits — Other current assets Amounts due from related parties Total current assets Total non-current assets Total assets Accounts payable Accrued payroll and welfare expenses Income tax payable Other tax payable Amounts due to related parties Advance from customers and deferred revenue Other current liabilities Total current liabilities Deferred tax liabilities, non-current Total liabilities |
Schedule of financial statement amounts included in the consolidated financial statements | Years Ended December 31, 2013 2014 2015 $ $ $ Total revenues Cost of revenues ) ) ) Net income (loss) ) ) Net cash provided by operating activities Net cash used in investing activities ) ) ) Net cash used in financing activities ) ) ) |
Schedule of accounts receivable | As of December 31, 2014 2015 $ $ Unbilled accounts receivable Billed accounts receivable Total |
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 3 - 5 years Motor vehicles 5 years |
Schedule of movement of the allowance for doubtful accounts for accounts receivable and customer deposits | 2013 2014 2015 $ $ $ Balance as of January 1 Provisions for doubtful accounts Write offs ) ) ) Changes due to foreign exchange ) ) Balance as of December 31 |
Schedule of computation of basic and diluted income per share | Years Ended December 31, 2013 2014 2015 Net income (loss) attributable to E-House ordinary shareholders — basic $ $ $ ) Decrease of income from Leju* — ) — Interest of Convertible Senior Notes (including stated interest and amortization of discount and issuance costs) — — Net income (loss) attributable to E-House ordinary shareholders — diluted $ $ $ ) Weighted average ordinary shares outstanding— basic Convertible senior notes — — Share options and restricted shares — Weighted average number of ordinary shares outstanding — diluted Basic earnings (loss) per share $ $ $ ) Diluted earnings (loss) per share $ $ $ ) * In calculating diluted earnings per share, the amount of Leju’s net income included in net income attributable to E-House’s ordinary shareholders is calculated by multiplying Leju’s diluted EPS by the weighted average number of Leju shares held by E-House’s during the period, which may result in net income attributable to E-House ordinary shareholders, for purposes of computing diluted earnings per share, being different from that actually recorded in the consolidated statements of operations. This difference is presented as decrease of income from Leju. |
Schedule of instruments not included in the computation of diluted earnings (loss) per share | Years Ended December 31, 2013 2014 2015 Share options and restricted shares — — Convertible senior notes — |
Effects of changes in E-House's ownership interest in Leju and other significantly less than wholly owned subsidiaries on equity attributable to E-House | Years Ended December 31, 2013 2014 2015 Net income (loss) attributable to E-House ) Transfers to the non-controlling interest: Increase in E-House’s equity by partial disposal of subsidiaries — — Increase in E-House’s additional paid-in capital for issuing Leju’s shares to public — — Decrease in E-House’s additional paid-in capital for Leju share distribution to E-House’s shareholders — ) — Decrease in E-House’s additional paid-in capital and accumulated other comprehensive income for acquisition of non-controlling interest — ) ) Increase (decrease) in E-House’s additional paid-in capital for the exercise of Leju’s options and the vesting of Leju’s restricted shares — ) Net transfers from (to) non-controlling interest — ) Change from net income (loss) attributable to E-House and transfers (to) from non-controlling interest ) |
Long-term Investment (Tables)
Long-term Investment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Long-term Investment | |
Summary of financial information of long-term investments | Operating data: Jupai Years Ended December 31, 2013 2014 2015 $ $ $ Revenue Cost ) ) ) Selling, general and administrative expense ) ) ) Profit from operations Net income Balance Sheet Data: Jupai As of December 31, 2014 2015 $ $ Current assets Non-current assets Current liabilities Non-current liabilities |
Acquisitions of Subsidiaries (T
Acquisitions of Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Samas | |
Purchase price was allocated as follows: | |
Schedule of purchase price allocation | Allocated Amortization Value Period $ Cash Total tangible assets acquired Liabilities assumed ) Favorable lease term 17.3 years Customer relationship 17.3 years Outstanding contracts 6.4 years Goodwill Deferred tax liabilities ) Total |
Hangzhou Kuyue | |
Purchase price was allocated as follows: | |
Schedule of purchase price allocation | Allocated Amortization Value Period $ Cash Total tangible assets acquired Liabilities assumed ) Software 10 years Goodwill Deferred tax liabilities ) Total |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property and Equipment, Net | |
Schedule of property and equipment, net | As of December 31, 2014 2015 $ $ Leasehold improvements Buildings Furniture, fixtures and equipment Motor vehicles Total Accumulated depreciation ) ) Property and equipment, net |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Intangible Assets, Net | |
Schedule of intangible assets, net | Weighted Average As of December 31, Amortization 2014 2015 Periods $ $ In years Intangible assets not subject to amortization are comprised of the following: Trademark Intangible assets subject to amortization are comprised of the following: Advertising agency agreement with SINA License agreements with SINA Exclusive rights with Baidu — Computer software licenses Customer relationship Database license Favorable lease term Non-compete agreements Customer contracts Domain name Less: Accumulated amortization Advertising agency agreement ) ) License agreements with SINA ) ) Exclusive rights with Baidu ) ) Computer software licenses ) ) Customer relationship ) ) Database license ) ) Favorable lease term ) ) Non-compete agreements ) ) Customer contracts ) ) Domain name ) ) Intangible assets subject to amortization, net Total intangible assets, net |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill | |
Schedule of changes in the carrying amount of goodwill by segment | Real Estate Real Estate Real Estate Information Community Online Brokerage and Consulting Value-added Other Services Services Services Services Services Total $ $ $ $ $ $ Balance as of January 1, 2013 — — Goodwill recognized upon acquisition — — — — Exchange rate translation — Balance as of December 31, 2013 — — Exchange rate translation ) ) — — — ) Balance as of December 31, 2014 — — Goodwill recognized upon acquisition — — Exchange rate translation ) ) ) — — ) Balance as of December 31, 2015 As of December 31, 2013 Goodwill, gross — — Accumulated impairment charge ) — — — — ) Goodwill, net — — As of December 31, 2014 Goodwill, gross — — Accumulated impairment charge ) — — — — ) Goodwill, net — — As of December 31, 2015 Goodwill, gross Accumulated impairment charge ) — — — — ) Goodwill, net |
Other Income (Loss), Net (Table
Other Income (Loss), Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income (Loss), Net | |
Schedule of other income | Years Ended December 31, 2013 2014 2015 $ $ $ Gains on marketable securities, realized portion — Foreign exchange gain (loss) ) ) Amortized discounts related to liability for exclusive rights with Baidu ) ) — Gains from sale of properties held for sale — Others Total other income (loss) ) ) |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax | |
Schedule of income (loss) before income taxes | Years Ended December 31, 2013 2014 2015 $ $ $ The Income (loss) Before Income Taxes: The PRC Outside of the PRC ) ) ) Total |
Schedule of expense (benefit) for income taxes | Years Ended December 31, 2013 2014 2015 $ $ $ Current Tax The PRC Outside of the PRC Deferred Tax The PRC ) ) Outside of the PRC — — — ) ) Income tax expense |
Schedule of principal components of the deferred income tax assets/ liabilities | As of December 31, 2014 2015 $ $ Deferred tax assets: Accrued salary expenses Bad debt provision Net operating loss carry forwards Advertising expenses temporarily non-deductible Other Gross deferred tax assets Valuation allowance ) ) Total deferred tax assets Analysis as: Current Non-current Deferred tax liabilities: Amortization of intangible and other assets Total deferred tax liabilities Analysis as: Current — — Non-current |
Schedule of movement of the valuation allowance | Years Ended December 31, 2013 2014 2015 $ $ $ Balance as of January 1, Additions Write off — ) ) Changes due to foreign exchange ) ) Balance as of December 31, |
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, 2013 2014 2015 $ $ $ PRC income tax rate % % % Expenses not deductible for tax purposes % % % Effect of tax preference )% )% )% Effect of different tax rate of subsidiary operation in other jurisdiction )% % % Valuation allowance movement % % % Effect of different tax rate of DTA and DTL applied )% % )% Withholding tax — — % Others )% )% )% % % % |
Summary of aggregate amount and per share effect of the tax holiday | Years Ended December 31, 2013 2014 2015 $ $ $ The aggregate dollar effect Per share effect — basic Per share effect — diluted |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
E-House Plan | |
Share-Based Compensation | |
Summary of share option activity | Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value of Options $ $ Outstanding, as of January 1, 2015 Exercised ) Forfeited ) Outstanding, as of December 31, 2015 Vested and expected to vest as of December 31, 2015 Exercisable as of December 31, 2015 |
Summary of restricted share activity | Number of Restricted Shares Weighted Average Grant-date Fair Value $ Unvested as of January 1, 2015 Vested ) Forfeited ) Unvested as of December 31, 2015 |
Leju Plan | |
Share-Based Compensation | |
Summary of share option activity | Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Weighted Average Aggregate Intrinsic Value of Options $ Outstanding, as of January 1, 2015 Granted Exercised ) Forfeited ) Outstanding, as of December 31, 2015 Vested and expected to vest as of December 31, 2015 Exercisable as of December 31, 2015 |
Summary of restricted share activity | Number of Restricted Shares Weighted Average Grant-date Fair Value $ Outstanding, as of January 1, 2015 Vested ) Forfeited ) Outstanding, as of December 31, 2015 |
Schedule of assumptions used to estimate the fair value of share options granted | 2013 2015 Risk-free rate of return % % Contractual life of option 10 years 10 years Estimated volatility rate % % Dividend yield % % |
Omnigold Plan | |
Share-Based Compensation | |
Summary of share option activity | Number of Options Exercise Price Remaining Contractual Term Aggregate Intrinsic Value of Options $ Outstanding, as of January 1, 2015 — Granted — Exercised — Forfeited ) — Outstanding, as of December 31, 2015 — Vested and expected to vest as of December 31, 2015 — Exercisable as of December 31, 2015 — — |
Schedule of assumptions used to estimate the fair value of share options granted | 2015 Risk-free rate of return % Contractual life of option 10 years Estimated volatility rate % Dividend yield % |
Scepter Plan | |
Share-Based Compensation | |
Schedule of assumptions used to estimate the fair value of share options granted | 2014 Average risk-free rate of return % Contractual life of option 10 years Average estimated volatility rate % Average dividend yield % |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurement | |
Schedule of information about assets and liabilities that are measured at fair value on a recurring basis | Fair Value Measurements at Reporting Date Using Description As of Year Ended December 31, 2014 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Investment in preferred shares of Jupai — — Description As of Year Ended December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Investment in preferred shares of Jupai — — — — |
Summary of quantitative inputs and assumptions used | Financial Assets Fair Value Valuation Techniques Unobservable Inputs Rate Investment in preferred shares of Jupai $ Discounted cash flow & option pricing method Discount Rate % Discount for Lack of Marketability (“DLOM”) % Terminal growth rate % |
Summary of changes in financial assets measured at fair value using Level 3 inputs | Level 3 Financial Assets at Fair Value Year Ended 31, 2014 2015 $ $ Balance as of January 1, — Purchased — Changes in gains included in other comprehensive income Reversed the recognized unrealized gains included in other comprehensive income ) Transferred to long-term investment — ) Balance as of December 31 — Unrealized gains — |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 2013 Services Services Services Services Non-allocated Total $ $ $ $ $ $ Revenues — Cost of revenues ) ) ) ) — ) Selling, general and administrative expenses ) ) ) ) ) ) Other operating income — Income (loss) from operations ) ) Interest expenses — — — — ) ) Interest income Other income (expense), net ) ) ) ) Income (loss) before taxes and equity in affiliates ) ) Income tax benefit (expense) ) ) ) ) ) Income (loss) before equity in affiliates ) ) Income (loss) from equity in affiliates ) ) Net income (loss) ) ) Real Estate Real Estate Real Estate Information C ommunity Online Brokerage and Consulting V alue-added Other 201 4 Services Services Services Services Services Non-allocated Total $ $ $ $ $ $ $ Revenues — — Cost of revenues ) ) ) — ) — ) Selling, general and administrative expenses ) ) ) ) ) ) ) Other operating income — — Income (loss) from operations ) ) Interest expenses — — — — — ) ) Interest income Other income ( expense ) , net ) — ) Income (loss) before taxes and equity in affiliates ) ) Income tax benefit (expense) ) ) ) ) ) Income (loss) before equity in affiliates ) ) Income (loss) from equity in affiliates ) — ) Net income (loss) ) ) Real Estate Real Estate Real Estate Information Community Online Brokerage and Consulting Value-added Other 2015 Services Services Services Services Services Non-allocated Total $ $ $ $ $ $ $ Revenues — Cost of revenues ) ) ) ) ) — ) Selling, general and administrative expenses ) ) ) ) ) ) ) Other operating income — — Income (loss) from operations ) ) ) ) ) Interest expenses — — — — — ) ) Interest income Other income (expense), net ) ) ) Investment Income — — Income (loss) before taxes and equity in affiliates ) ) ) ) Income tax expense ) ) ) ) ) ) ) Income (loss) before equity in affiliates ) ) ) ) ) Income (loss) from equity in affiliates ) ) Net income (loss) ) ) ) ) ) |
Accounts receivable | |
Major customers | |
Schedule of major customers | As of December 31, 2014 2015 $ $ Customer A |
Customer deposits | |
Major customers | |
Schedule of major customers | As of December 31, 2014 2015 $ $ Customer B Customer C Customer D * Customer E * Customer F * * indicates the balance of customer deposit of the customer was less than 10% of total customer deposits at the end of the year. |
Related Party Balances and Tr44
Related Party Balances and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Balances and Transactions | |
Schedule of amounts due from related parties | As of December 31, 2014 2015 $ $ Customer and supplier Other Total amounts due from related parties |
Schedule of amounts due to related parties | As of December 31, 2014 2015 $ $ Management Customer and supplier Other Total amounts due to related parties |
Schedule of revenue from customers who are related parties | Years Ended December 31, 2013 2014 2015 $ $ $ Beijing China Real Estate Research Association Technology Ltd (“CRERAT”) SINA Corporation (“SINA”) — Shanghai Guanfu Treasure-house Assets Management Co., Ltd (“Guanfu Treasure-house”) — — |
Schedule of selling, general and administrative expenses recorded by the group | Years Ended December 31, 2013 2014 2015 $ $ $ CRERAT — — SINA — Guanfu Treasure-house — |
Schedule of cost of revenue recorded by the group | Years Ended December 31, 2013 2014 2015 $ $ $ SINA |
Schedule of intangible assets purchased by the group | Years Ended December 31, 2013 2014 2015 $ $ $ SINA — — Hangzhou Kuyue — * *Hangzhou Kuyue became a wholly owned subsidiary of the Group from July 2015 (Note 5). |
Schedule of amount due from (to) related parties | As of December 31, 2014 2015 $ $ CRERAT SINA ) ) Guanfu Treasure-house ) Hangzhou Kuyue ) * |
Schedule of amounts due from (to) affiliates | As of December 31, 2014 2015 $ $ Shanghai Yueshun Real Estate Development Co., Ltd. (1) — Shanghai Jin Yue Real Estate Development Co., Ltd. (2) ) ) Suzhou Hehui Xuyuechang Equity Investment Center (“Xuyuechang Center”) (3) — Suzhou Hehui Xuyuerong Equity Investment Center (“Xuyuerong Center”) (3) — Suzhou Hehui Xuyuezhen Equity Investment Center (“Xuyuezhen Center”) (3) — E-House (China) Real Estate Investment Fund 1 L.P. (the “Fund”) (4) ) Muxin Center (5) ) — Jupai (6) — Jupai (6) — ) 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) Scepter holds 0.6%, 0.5% and 0.5% equity interest of Xuyuechang Center, Xuyuerong Center and Xuyuezhen Center, respectively and also acts as a non-acting general partner and provides investment advice to the entities. The amount t receivable of December 31, 2014 is the management fee receivable from the entities. Subsequent to the Jupai Transaction, the Group no longer directly holds any equity interests and earned any management fee from these entities. (4) 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. The amount receivable of December 31, 2014 is the carried interest receivable from the Fund. The amount payable of December 31, 2015 is the cash received on behalf of the Fund. (5) The Group holds 23.4% equity interest of Muxin Center and Scepter also acts as general partner and provides investment advice to the entities. The amount payable is the advance management fee received by the Group. Subsequent to the Jupai Transaction, the Group no longer earns any management fee from Muxin Center. (6) The Group is the largest shareholder of Jupai, and Mr Xin Zhou, the Group’s co-chairman and chief executive officer of the Group is a director of Jupai. The receivable balance was dividend receivable from Yidezhen, a subsidiary of Scepter, which became a subsidiary of Jupai from July, 2015. The payable balance represents the acquisition deposit from Jupai for acquiring an long-term investment held by the Group. The acquisition was still in the process by the end of year 2015. |
Schedule of management fees from funds | Years Ended December 31, 2013 2014 2015 $ $ $ The Fund — E-House Shengyuan Equity Investment Center (“Shengyuan Center”) E-House Shengquan Equity Investment Center (“Shengquan Center”) Wuling Center (Note 4) Shouxin Center (Note 4) — Muxin Center (Note 4) — Jupai (2) — — Others (1) Total management fee or carried interest earned The amount presented in the table is the revenue without net of sales tax. Notes: Scepter’s subsidiaries or VIEs act as the general partners of Shenyuan Center, Shenquan Center, Wuling Center, Shouxin Center and Muxin Center, and act as non-acting general partner of Xuyuechang Center, Xuyuerong Center and Xuyuezhen Center, and earned management fee. Subsequent to the Jupai Transaction in July 2015 (Note 1), the Group no longer generates any management fee from such entities from then to December 31, 2015. The management fee for above entities in 2015 is the management fee eared from January 1 2015 to the Jupai transaction date. (1) Others represent Xuyuechang Center, Xuyuerong Center and Xuyuezhen Center. The amount represents management fee recognized from these entities during the periods up to the date of the Jupai Transaction. (2) The amount represents management fee recognized from a subsidiary of Jupai by a subsidiary of Scepter before the Jupai Transaction (Note1). |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies | |
Schedule of future minimum lease payments under non-cancelable operating lease agreements | Year Ended December 31 Amount $ 2016 2017 2018 2019 2020 Then thereafter Total |
Organization and Principal Ac46
Organization and Principal Activities (Details) | Jul. 16, 2015shares | Apr. 30, 2015 | Dec. 31, 2014$ / shares | Apr. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Oct. 31, 2009 | Dec. 31, 2015$ / shares | Dec. 31, 2014USD ($)$ / shares |
Organization and Principal Activities | ||||||||
Net proceeds from equity method investment after deducting commissions and related expenses | $ 176,704,417 | |||||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Partial spin-off | ||||||||
Organization and Principal Activities | ||||||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||||||
Shanghai Real Estate Sales (Group) Co., Ltd.. | ||||||||
Organization and Principal Activities | ||||||||
Ownership interest (as a percent) | 100.00% | |||||||
Shanghai City Rehouse Real Estate Agency Ltd. | ||||||||
Organization and Principal Activities | ||||||||
Ownership interest (as a percent) | 85.00% | |||||||
Scepter | ||||||||
Organization and Principal Activities | ||||||||
Ownership interest (as a percent) | 51.00% | |||||||
Percentage of ownership held by noncontrolling owners | 49.00% | |||||||
Shanghai CRIC Information Technology Co., Ltd | ||||||||
Organization and Principal Activities | ||||||||
Ownership interest (as a percent) | 100.00% | |||||||
Leju Holdings Ltd. | ||||||||
Organization and Principal Activities | ||||||||
Ownership interest (as a percent) | 69.00% | |||||||
Shanghai Xinju Finance Information Services Co Ltd | ||||||||
Organization and Principal Activities | ||||||||
Ownership interest (as a percent) | 56.00% | |||||||
Shanghai Weidian Information Technology Co Ltd | ||||||||
Organization and Principal Activities | ||||||||
Ownership interest (as a percent) | 55.00% | |||||||
COHT | CRIC | ||||||||
Organization and Principal Activities | ||||||||
SINA's equity interest acquired (as a percent) | 66.00% | |||||||
Tencent | Leju Holdings Ltd. | ||||||||
Organization and Principal Activities | ||||||||
Percentage of equity interest sold | 15.00% | |||||||
Net proceeds from equity method investment after deducting commissions and related expenses | $ 176,400,000 | |||||||
Initial public offering | Leju Holdings Ltd. | ||||||||
Organization and Principal Activities | ||||||||
Proceeds from issuance of ordinary shares of Leju upon initial public offering, net of paid issuance costs of $15,036,616 | $ 101,400,000 | |||||||
Private placement | Tencent | Leju Holdings Ltd. | ||||||||
Organization and Principal Activities | ||||||||
Proceeds from issuance of private placement | $ 18,900,000 | |||||||
Ordinary Shares | Partial spin-off | ||||||||
Organization and Principal Activities | ||||||||
Dividend Conversion Ratio | 0.05 | |||||||
Ordinary Shares | Initial public offering | Jupai | ||||||||
Organization and Principal Activities | ||||||||
Number of ordinary shares, issued | shares | 16,565,592 | |||||||
ADSs | Partial spin-off | ||||||||
Organization and Principal Activities | ||||||||
Dividend Conversion Ratio | 0.05 |
Summary of Principal Accounti47
Summary of Principal Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2015 | |
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 | 100.00% |
Shanghai Weidian Information Technology Co Ltd | |
Foreign Owned Subsidiaries | |
Ownership percentage | 100.00% |
Summary of Principal Accounti48
Summary of Principal Accounting Policies - Financial results of the VIEs (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Financial statement balances included in the consolidated financial statements | ||||
Cash and cash equivalents | $ 465,183,566 | $ 630,616,635 | $ 413,319,174 | $ 210,841,368 |
Accounts receivable, net of allowance for doubtful accounts | 462,310,290 | 415,150,008 | ||
Customer deposits | 134,134,331 | 92,796,714 | ||
Other current assets | 66,587,437 | 39,339,526 | ||
Amounts due from related parties | 1,551,873 | 6,094,260 | ||
Total current assets | 1,251,132,357 | 1,376,028,730 | ||
TOTAL ASSETS | 1,784,502,205 | 1,776,923,241 | ||
Accounts payable | 6,699,191 | 8,260,681 | ||
Accrued payroll and welfare expenses | 140,178,362 | 116,577,317 | ||
Income tax payable | 155,085,748 | 117,593,159 | ||
Other tax payable | 55,691,217 | 49,390,175 | ||
Amounts due to related parties | 9,934,688 | 7,356,186 | ||
Advance from customers and deferred revenue | 20,821,723 | 19,013,041 | ||
Other current liabilities | 58,645,555 | 85,836,572 | ||
Total current liabilities | 618,382,990 | 455,144,506 | ||
Deferred tax liabilities, non-current | 26,301,048 | 28,203,218 | ||
Total liabilities | 717,940,109 | 616,757,621 | ||
Financial statement amounts included in the consolidated financial statements | ||||
Total revenues | 1,023,656,993 | 904,498,793 | 731,078,833 | |
Cost of revenues | (329,761,444) | (306,133,210) | (274,035,806) | |
Net income (loss) | (55,299,871) | 52,337,158 | 51,086,289 | |
Net cash provided by operating activities | (143,151,603) | 23,982,431 | 113,892,140 | |
Net cash used in investing activities | (47,514,516) | (112,759,658) | (53,093,289) | |
Net cash used in financing activities | 42,300,763 | 307,159,706 | 135,756,603 | |
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 | 60,302,483 | 99,718,317 | ||
Accounts receivable, net of allowance for doubtful accounts | 111,677,836 | 118,223,577 | ||
Customer deposits | 38,710,027 | |||
Other current assets | 42,635,169 | 34,132,543 | ||
Amounts due from related parties | 8,905 | 424,864 | ||
Total current assets | 253,334,420 | 252,499,301 | ||
Total non-current assets | 59,205,937 | 55,033,244 | ||
TOTAL ASSETS | 312,540,357 | 307,532,545 | ||
Accounts payable | 335,005 | 600,735 | ||
Accrued payroll and welfare expenses | 36,833,196 | 44,321,824 | ||
Income tax payable | 27,608,773 | 28,337,431 | ||
Other tax payable | 17,268,065 | 16,032,365 | ||
Amounts due to related parties | 8,478,440 | 4,175,247 | ||
Advance from customers and deferred revenue | 5,923,346 | 5,073,492 | ||
Other current liabilities | 17,242,436 | 36,291,161 | ||
Total current liabilities | 113,689,261 | 134,832,255 | ||
Deferred tax liabilities, non-current | 1,833,357 | 469,579 | ||
Total liabilities | 115,522,618 | 135,301,834 | ||
Financial statement amounts included in the consolidated financial statements | ||||
Total revenues | 559,922,254 | 492,253,803 | 321,004,846 | |
Cost of revenues | (49,513,878) | (43,760,890) | (59,920,429) | |
Net income (loss) | (15,147,531) | (8,699,386) | 1,503,897 | |
Net cash provided by operating activities | 41,372,262 | 55,495,458 | 72,877,862 | |
Net cash used in investing activities | (28,900,960) | (17,245,460) | (18,042,241) | |
Net cash used in financing activities | $ (47,165,461) | $ (17,043,942) | $ (40,248,296) |
Summary of Principal Accounti49
Summary of Principal Accounting Policies - Restricted cash (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Restricted cash | ||
Bank deposits as collateral | $ 32,185,582 | $ 38,290,478 |
Restricted cash accounts | 1,964,260 | 40,401,864 |
Secondary real estate brokerage services | ||
Restricted cash | ||
Restricted cash accounts | 1,810,262 | 1,947,961 |
Primary real estate agency services | ||
Restricted cash | ||
Restricted cash accounts | $ 153,998 | $ 163,425 |
Summary of Principal Accounti50
Summary of Principal Accounting Policies - Accounts receivable and others (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounts receivable | |||
Allowance for doubtful accounts | $ 65,243,624 | $ 44,002,810 | |
Unbilled accounts receivable | 335,611,161 | 306,282,419 | |
Billed accounts receivable | 126,699,129 | 108,867,589 | |
Total | 462,310,290 | 415,150,008 | |
Properties held for sale | |||
Impairment of properties held for sale | 5,887,614 | 0 | $ 0 |
Allowance For Advance Payment For Properties To Be Held For Sale | $ 885,937 | $ 0 | $ 0 |
Minimum | |||
Investment long-term | |||
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 Accounti51
Summary of Principal Accounting Policies - Property and equipment, net (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Buildings | |
Property and equipment, net | |
Estimated useful life | 30 years |
Motor vehicles | |
Property and equipment, net | |
Estimated useful life | 5 years |
Minimum | Furniture, fixtures and equipment | |
Property and equipment, net | |
Estimated useful life | 3 years |
Maximum | Furniture, fixtures and equipment | |
Property and equipment, net | |
Estimated useful life | 5 years |
Summary of Principal Accounti52
Summary of Principal Accounting Policies - Revenue recognition (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue recognition | |||
Total revenues | $ 1,023,656,993 | $ 904,498,793 | $ 731,078,833 |
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 | $ 77,257,663 | $ 74,189,077 | $ 71,908,552 |
Other Services | |||
Revenue recognition | |||
Total revenues | $ 0 |
Summary of Principal Accounti53
Summary of Principal Accounting Policies - Advertising expensesand others (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Advertising expenses | |||
Advertising expenses | $ 314,985,447 | $ 208,667,609 | $ 100,457,370 |
Foreign currency translation | |||
Exchange gain (loss) | (3,144,228) | 613,227 | (862,383) |
Government subsidies | |||
Cash subsidies | 6,756,906 | 8,786,891 | 4,917,642 |
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 | 44,586,646 | 60,818,408 | 36,537,817 |
Provisions for doubtful accounts | 29,408,911 | 26,363,611 | 29,099,216 |
Write offs | (4,902,073) | (42,404,691) | (6,298,025) |
Changes due to foreign exchange | (3,299,702) | (190,682) | 1,479,400 |
Balance at the end of the period | $ 65,793,782 | $ 44,586,646 | $ 60,818,408 |
Summary of Principal Accounti54
Summary of Principal Accounting Policies- Earnings per share and others (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings per share | |||
Net income (loss) attributable to E-House ordinary shareholders - basic | $ (39,871,194) | $ 40,001,485 | $ 51,957,425 |
Decrease of income from Leju | (2,208,892) | ||
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 | $ (39,871,194) | $ 37,792,593 | $ 52,149,991 |
Weighted average ordinary shares outstanding - basic | 142,615,258 | 139,211,442 | 130,163,165 |
Convertible senior notes | 334,821 | ||
Share options and restricted shares | 7,476,393 | 5,282,011 | |
Weighted average number of ordinary shares outstanding diluted | 142,615,258 | 146,687,835 | 135,779,997 |
Basic earnings (loss) per share | $ (0.28) | $ 0.29 | $ 0.40 |
Diluted earnings (loss) per share | $ (0.28) | $ 0.26 | $ 0.38 |
Diluted earnings (loss) per share that does not include instruments whose inclusion would be anti-dilutive | |||
Non-controlling interest | $ 158,860,505 | $ 152,376,115 | |
Net income (loss) allocated | (15,428,677) | 12,335,673 | $ (871,136) |
Effects of changes in E-House's ownership interest in CRIC, Leju and other significantly less than wholly owned subsidiaries on equity attributable to E-House | |||
Net income (loss) attributable to E-House | (39,871,194) | 40,001,485 | 51,957,425 |
Transfers to the non-controlling interest: | |||
Increase in E-house Equity by partial disposal of subsidiaries | 138,477,580 | ||
Increase in E-House's additional paid-in capital for issuing Leju's shares to Public | 70,068,096 | ||
Decrease in E-House's additional paid-in capital and accumulated other comprehensive income for acquisition of non-controlling interest | (5,323,146) | (30,720,088) | |
Net transfers from (to) non-controlling interest | (5,450,808) | 156,314,900 | |
Change from net income (loss) attributable to E-House and transfers (to) from non-controlling interest | $ (45,322,002) | $ 196,316,385 | $ 51,957,425 |
Share options and restricted shares | |||
Diluted earnings (loss) per share that does not include instruments whose inclusion would be anti-dilutive | |||
Instruments excluded from computation of diluted earnings (loss) per share as their inclusion would have been anti-dilutive (in shares) | 10,314,998 | ||
Convertible senior notes. | |||
Diluted earnings (loss) per share that does not include instruments whose inclusion would be anti-dilutive | |||
Instruments excluded from computation of diluted earnings (loss) per share as their inclusion would have been anti-dilutive (in shares) | 8,916,436 | 8,959,127 | |
Leju Holdings Ltd. | |||
Diluted earnings (loss) per share that does not include instruments whose inclusion would be anti-dilutive | |||
Ownership interest (as a percent) | 69.00% | ||
Non-controlling interest | $ 129,316,476 | $ 124,892,590 | |
Net income (loss) allocated | 24,566,457 | 50,702,835 | |
Transfers to the non-controlling interest: | |||
Decrease in E-House additional paid-in capital for Leju share distribution to E-house shareholders | (21,569,028) | ||
Increase (decrease) in E-House's additional paid-in capital for the exercise of Leju's options and the vesting of Leju'srestricted shares | $ (127,662) | $ 58,340 |
Properties Held for Sale (Detai
Properties Held for Sale (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)property | Dec. 31, 2014USD ($)property | Dec. 31, 2013USD ($)property | |
Properties Held for Sale | |||
Number of properties obtained in settlement of accounts receivable | 29 | 30 | 14 |
Properties held for sale obtained in settlement of accounts receivable | $ | $ 6,038,699 | $ 7,122,155 | $ 6,678,302 |
Number of properties transferred for settlement of customer deposits | 36 | ||
Properties held for sale transferred in settlement of customer deposits | $ | $ 9,928,558 | ||
Advance payment for properties to be held for sale | $ | 7,416,781 | 51,983,436 | |
Gain (loss) from sale of properties held for sale | $ | 720,486 | 0 | $ 118,559 |
Carrying amount of properties held for sale | $ | $ 50,249,134 | $ 34,841,895 | |
Residential properties | |||
Properties Held for Sale | |||
Number of properties obtained in settlement of accounts receivable | 27 | 20 | |
Number of property title transfers in process | 87 | 113 | |
Number of properties held for sale | 157 | 147 | |
Car parking space properties | |||
Properties Held for Sale | |||
Number of properties obtained in settlement of accounts receivable | 5 | 5 | |
Number of property title transfers in process | 30 | ||
Number of properties held for sale | 9 | 9 | |
Commercial properties | |||
Properties Held for Sale | |||
Number of properties obtained in settlement of accounts receivable | 2 | 5 | |
Number of property title transfers in process | 55 | ||
Advance payment for properties to be held for sale | $ | $ 36,962,257 | ||
Number of properties held for sale | 19 | 5 | |
Properties held for sale transferred to property and equipment | $ | $ 73,112,610 |
Long-term Investment (Details)
Long-term Investment (Details) | 1 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2014USD ($)shares | Aug. 31, 2014USD ($)itemshares | May. 31, 2014CNY (¥)shares | Dec. 31, 2015CNY (¥)itemshares | Dec. 31, 2015USD ($)item$ / sharesshares | Dec. 31, 2014CNY (¥) | Dec. 31, 2014USD ($) | Dec. 31, 2013CNY (¥) | Dec. 31, 2013USD ($) | Dec. 31, 2012CNY (¥) | Dec. 31, 2012USD ($) | Dec. 31, 2011CNY (¥) | Dec. 31, 2011USD ($) | Sep. 30, 2015USD ($)$ / sharesshares | May. 31, 2014USD ($)shares | Jul. 31, 2012 | |
Investment long-term | ||||||||||||||||
Investment income | $ 24,323,479 | |||||||||||||||
Prepayment for investment | $ 2,368,994 | $ 7,766,948 | $ 15,745,728 | |||||||||||||
Jupai | ||||||||||||||||
Investment long-term | ||||||||||||||||
Conversion ratio of shares | 1 | 1 | ||||||||||||||
Number of shares obtained | shares | 16,565,592 | 16,565,592 | ||||||||||||||
Number of ordinary shares representing each ADS | item | 6 | 6 | ||||||||||||||
Investment income | $ 23,104,056 | |||||||||||||||
Accrued withholding tax | $ 2,530,329 | |||||||||||||||
Number of shares held | shares | 55,320,612 | |||||||||||||||
Ownership interest held (as a percent) | 31.00% | |||||||||||||||
Balance investment | $ 55,682,202 | |||||||||||||||
Operating data: | ||||||||||||||||
Revenue | 95,529,304 | 39,138,038 | 22,594,781 | |||||||||||||
Cost | (37,414,007) | (10,657,267) | (3,703,030) | |||||||||||||
Selling, general and administrative expenses | (28,363,598) | (12,777,688) | (8,257,935) | |||||||||||||
Profit from operations | 32,329,720 | 17,841,307 | 11,247,071 | |||||||||||||
Net income | 26,523,390 | 14,630,140 | 9,050,371 | |||||||||||||
Balance Sheet Data: | ||||||||||||||||
Current assets | $ 53,539,720 | 153,068,268 | 53,539,720 | |||||||||||||
Non-current assets | 13,774,143 | 88,616,208 | 13,774,143 | |||||||||||||
Current liabilities | 19,464,239 | 58,136,071 | 19,464,239 | |||||||||||||
Non-current liabilities | $ 1,270,966 | 13,492,814 | 1,270,966 | |||||||||||||
Star Capital | ||||||||||||||||
Investment long-term | ||||||||||||||||
Investment made | ¥ 100,000,000 | $ 15,735,900 | ||||||||||||||
Amount received as a return of capital | ¥ 5,000,000 | $ 793,560 | ¥ 15,000,000 | 2,455,830 | ¥ 35,000,000 | 5,740,630 | ||||||||||
Ownership interest held (as a percent) | 3.80% | 3.80% | ||||||||||||||
Wuling Center | ||||||||||||||||
Investment long-term | ||||||||||||||||
Investment made | 18,000,000 | $ 2,946,996 | ¥ 27,000,000 | $ 4,428,486 | ¥ 15,000,000 | $ 2,386,440 | ||||||||||
Ownership interest held (as a percent) | 6.50% | 6.50% | 6.50% | 6.50% | ||||||||||||
Purchase price allocation | ||||||||||||||||
Percentage of vote of limited partners vote required to remove general partner without cause | 50.00% | |||||||||||||||
Wuling Center | Xin Zhou | ||||||||||||||||
Investment long-term | ||||||||||||||||
Ownership interest held (as a percent) | 4.90% | |||||||||||||||
Shengyuan Center | ||||||||||||||||
Investment long-term | ||||||||||||||||
Ownership interest held (as a percent) | 41.60% | 41.60% | ||||||||||||||
Shouxin Center Shenquan Xenter | ||||||||||||||||
Investment long-term | ||||||||||||||||
Ownership interest held (as a percent) | 28.00% | 28.00% | ||||||||||||||
Shouxin Center | ||||||||||||||||
Investment long-term | ||||||||||||||||
Investment made | 15,000,000 | $ 2,437,920 | ¥ 15,000,000 | |||||||||||||
Ownership interest held (as a percent) | 13.00% | 13.00% | ||||||||||||||
Equity Method Investment, Realized Gain (Loss) on Disposal [Abstract] | ||||||||||||||||
Net proceeds from equity method investment after deducting commissions and related expenses | $ 2,287,950 | |||||||||||||||
Ownership percentage disposed | 12.20% | |||||||||||||||
Equity interest held by third parties (as a percent) | 4.80% | |||||||||||||||
Equity interest held by employees (as percentage) | 7.40% | |||||||||||||||
Number of employees having equity method investment ownership interest | item | 2 | |||||||||||||||
Gain (loss) recognized from disposal | $ 0 | |||||||||||||||
Muxin Center | ||||||||||||||||
Investment long-term | ||||||||||||||||
Investment made | ¥ 25,000,000 | $ 4,085,625 | ||||||||||||||
Ownership interest held (as a percent) | 23.40% | 23.40% | ||||||||||||||
Wexfin | ||||||||||||||||
Investment long-term | ||||||||||||||||
Number of shares acquired | shares | 15,778,152 | |||||||||||||||
Consideration for shares acquired | $ 12,222,128 | |||||||||||||||
Share price | $ / shares | $ 0.7746 | |||||||||||||||
Ownership interest held, cost method investment (as a percent) | 11.70% | |||||||||||||||
Jupai | Wuling Center | ||||||||||||||||
Investment long-term | ||||||||||||||||
Ownership interest transferred | 1.10% | 1.10% | ||||||||||||||
ADSs | Jupai | ||||||||||||||||
Investment long-term | ||||||||||||||||
Share price | $ / shares | $ 10 | |||||||||||||||
Convertible Redeemable Preferred Shares | Jupai | ||||||||||||||||
Investment long-term | ||||||||||||||||
Fair value | $ 39,484,906 | $ 39,484,906 | ||||||||||||||
Unrealized gains in accumulated other comprehensive income | $ 13,765,098 | $ 25,106,794 | $ 13,765,098 | |||||||||||||
Convertible Redeemable Preferred Shares | Jupai | Jupai | ||||||||||||||||
Investment long-term | ||||||||||||||||
Number of shares acquired | shares | 12,918,340 | 12,918,340 | ||||||||||||||
Consideration for shares acquired | ¥ 48,000,000 | $ 7,801,728 | ||||||||||||||
Convertible Redeemable Preferred Shares | Shareholder of Jupai | Jupai | ||||||||||||||||
Investment long-term | ||||||||||||||||
Number of preferred shares issued upon re-designation of ordinary shares | shares | 12,918,340 | 12,918,340 | ||||||||||||||
Ordinary Shares | Jupai | ||||||||||||||||
Investment long-term | ||||||||||||||||
preferred shares converted to ordinary shares | shares | 38,755,020 | 38,755,020 | ||||||||||||||
Ordinary Shares | Shareholder of Jupai | Jupai | ||||||||||||||||
Investment long-term | ||||||||||||||||
Number of shares acquired | shares | 12,918,340 | 12,918,340 | 12,918,340 | |||||||||||||
Consideration for shares acquired | $ 10,116,352 | ¥ 48,000,000 | $ 7,801,728 |
Acquisitions of Subsidiaries (D
Acquisitions of Subsidiaries (Details) | 1 Months Ended | 12 Months Ended | |||||||||||
May. 31, 2015CNY (¥) | May. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) | Dec. 31, 2014USD ($) | Nov. 30, 2014CNY (¥) | Jan. 31, 2014CNY (¥) | Jan. 31, 2014USD ($) | Jul. 31, 2013USD ($)item | Dec. 31, 2015USD ($) | May. 31, 2015USD ($) | Nov. 30, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | |
Purchase price was allocated as follows: | |||||||||||||
Investment income | $ 24,323,479 | ||||||||||||
Allocated Value | |||||||||||||
Goodwill | $ 51,539,654 | 62,781,148 | $ 51,600,039 | $ 49,400,739 | |||||||||
Samas | |||||||||||||
Purchase price was allocated as follows: | |||||||||||||
Number of owned leased commercial buildings | item | 4 | ||||||||||||
Allocated Value | |||||||||||||
Total consideration | $ 6,000,000 | ||||||||||||
Cash | 1,061,330 | ||||||||||||
Total tangible assets acquired | 5,192,503 | ||||||||||||
Liabilities assumed | (3,085,972) | ||||||||||||
Goodwill | 1,462,335 | ||||||||||||
Deferred tax liabilities | (456,602) | ||||||||||||
Total | 6,000,000 | ||||||||||||
Samas | Favorable lease term | |||||||||||||
Allocated Value | |||||||||||||
Intangible assets acquired: | $ 1,379,556 | ||||||||||||
Amortization Period | 17 years 3 months 18 days | ||||||||||||
Samas | Customer relationship | |||||||||||||
Allocated Value | |||||||||||||
Intangible assets acquired: | $ 184,987 | ||||||||||||
Amortization Period | 17 years 3 months 18 days | ||||||||||||
Samas | Exclusive rights with Baidu | |||||||||||||
Allocated Value | |||||||||||||
Intangible assets acquired: | $ 261,863 | ||||||||||||
Amortization Period | 6 years 4 months 24 days | ||||||||||||
Hangzhou Kuyue | |||||||||||||
Purchase price was allocated as follows: | |||||||||||||
Investment made | ¥ 39,500,000 | $ 6,455,288 | ¥ 31,000,000 | $ 5,066,175 | ¥ 70,500,000 | ¥ 25,000,000 | $ 4,085,625 | ||||||
Consideration transferred | ¥ 70,500,000 | $ 11,521,463 | |||||||||||
Ownership interest held (as a percent) | 79.00% | 21.00% | 21.00% | 79.00% | |||||||||
Fair value of equity interest acquired | 18,740,506 | $ 2,221,396 | |||||||||||
Investment income | ¥ 572,327 | $ 90,835 | |||||||||||
Allocated Value | |||||||||||||
Cash | 232,171 | ||||||||||||
Total tangible assets acquired | 2,360,024 | ||||||||||||
Liabilities assumed | (4,737,860) | ||||||||||||
Goodwill | 11,716,718 | ||||||||||||
Deferred tax liabilities | (1,390,602) | ||||||||||||
Total | 13,742,859 | ||||||||||||
Hangzhou Kuyue | Software | |||||||||||||
Allocated Value | |||||||||||||
Intangible assets acquired: | $ 5,562,408 | ||||||||||||
Amortization Period | 10 years |
Acqusitions of Non-controlling
Acqusitions of Non-controlling Interests (Details) | 1 Months Ended | 12 Months Ended | |||||
Sep. 30, 2014CNY (¥)item | Sep. 30, 2014USD ($)item | Jan. 31, 2014CNY (¥)item | Jan. 31, 2014USD ($)item | Dec. 31, 2014USD ($)item | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | |
Acquisition of Non-controlling Interests | |||||||
Number Of Significant Acquisitions Of Noncontrolling Interests | item | 3 | ||||||
Other current liabilities | $ 85,836,572 | $ 58,645,555 | |||||
Number of individual shareholders entered into equity transfer agreement | item | 6 | 6 | |||||
Additional paid-in capital | 991,645,842 | 983,468,984 | |||||
Group of five employees | |||||||
Acquisition of Non-controlling Interests | |||||||
Additional paid-in capital | $ 4,276,810 | ||||||
Recognition period of stock based compensation expense | 2 years | 2 years | |||||
Beijing Lotta | |||||||
Acquisition of Non-controlling Interests | |||||||
Number of individual shareholders entered into equity transfer agreement | item | 2 | 2 | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 40.00% | ||||||
Total consideration | ¥ 100,000,000 | $ 16,254,600 | |||||
Additional paid-in capital derecognized | 15,112,828 | ||||||
Non-controlling interest derecognized | $ 1,141,772 | ||||||
Other current liabilities | ¥ 22,000,000 | $ 3,387,956 | |||||
Tianjin Leju | |||||||
Acquisition of Non-controlling Interests | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 30.00% | ||||||
Total consideration | ¥ 28,830,000 | $ 4,685,913 | |||||
Additional paid-in capital derecognized | 4,449,469 | ||||||
Non-controlling interest derecognized | 236,444 | ||||||
Other current liabilities | $ 243,989 | ||||||
E-House | |||||||
Acquisition of Non-controlling Interests | |||||||
Number of employee individual shareholders entered into equity transfer agreement | item | 5 | 5 | |||||
Beijing Leju Advertisement and Yisheng Shanghai | |||||||
Acquisition of Non-controlling Interests | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 24.50% | ||||||
Total consideration | ¥ 117,355,000 | $ 19,074,412 | |||||
Additional paid-in capital derecognized | 12,906,772 | ||||||
Non-controlling interest derecognized | 1,890,830 | ||||||
Other current liabilities | $ 3,706,648 | ||||||
Beijing Leju Advertisement and Yisheng Shanghai | Group of five employees | |||||||
Acquisition of Non-controlling Interests | |||||||
Total consideration | ¥ 98,775,000 | 16,054,493 | |||||
Total consideration for 1% equity interest | $ 823,307 | ||||||
Percentage of five employee owned | 19.50% | 19.50% | |||||
Number of years should serve by five employee individual shareholders after acquisition | 2 years | 2 years | |||||
Beijing Leju Advertisement and Yisheng Shanghai | Individual share holder | |||||||
Acquisition of Non-controlling Interests | |||||||
Total consideration | ¥ 18,580,000 | $ 3,019,919 | |||||
Total consideration for 1% equity interest | $ 603,984 | ||||||
Percentage of other individual shareholders owned | 5.00% | 5.00% | |||||
Beijing Leju | |||||||
Acquisition of Non-controlling Interests | |||||||
Number of subsidiaries to purchase remaining percentage | item | 2 | 2 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property and Equipment, Net | |||
Property and equipment, gross | $ 167,384,661 | $ 89,961,218 | |
Accumulated depreciation | (47,043,871) | (40,851,751) | |
Property and equipment, net | 120,340,790 | 49,109,467 | |
Depreciation expense | 11,689,846 | 8,659,092 | $ 8,206,163 |
Leasehold improvements | |||
Property and Equipment, Net | |||
Property and equipment, gross | 34,835,615 | 33,760,211 | |
Buildings | |||
Property and Equipment, Net | |||
Property and equipment, gross | 92,653,481 | 18,348,855 | |
Furniture, fixtures and equipment | |||
Property and Equipment, Net | |||
Property and equipment, gross | 32,767,551 | 30,424,438 | |
Motor vehicles | |||
Property and Equipment, Net | |||
Property and equipment, gross | $ 7,128,014 | $ 7,427,714 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) | 1 Months Ended | 12 Months Ended | |||||
Apr. 30, 2015CNY (¥) | Apr. 30, 2015USD ($) | Mar. 31, 2014 | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2011USD ($) | |
Intangible Assets, Net | |||||||
Intangible assets subject to amortization, gross | $ 290,508,243 | $ 276,762,319 | |||||
Intangible assets subject to amortization, net | 108,146,871 | 119,599,586 | |||||
Total intangible assets, net | $ 108,882,900 | 120,380,671 | |||||
Weighted Average Amortization Periods | 8 years 10 months 21 days | ||||||
Amortization amount | 52,922 | $ 935,177 | |||||
Amortization expense | $ 28,730,562 | 24,677,508 | 37,009,330 | ||||
Amortization expense expected to be recorded | |||||||
2,016 | 14,711,092 | ||||||
2,017 | 14,481,915 | ||||||
2,018 | 13,370,560 | ||||||
2,019 | 12,455,303 | ||||||
2,020 | 11,788,519 | ||||||
Advertising agency agreement with SINA | |||||||
Intangible Assets, Net | |||||||
Intangible assets subject to amortization, gross | 106,790,000 | 106,790,000 | |||||
Less: Accumulated amortization | $ (57,341,457) | (51,286,533) | |||||
Weighted Average Amortization Periods | 8 years 9 months | ||||||
License agreements with SINA | |||||||
Intangible Assets, Net | |||||||
Intangible assets subject to amortization, gross | $ 80,660,000 | 80,660,000 | |||||
Less: Accumulated amortization | $ (43,881,281) | (39,377,764) | |||||
Weighted Average Amortization Periods | 8 years 9 months | ||||||
Exclusive rights with Baidu | |||||||
Intangible Assets, Net | |||||||
Intangible assets subject to amortization, gross | $ 54,096,827 | 45,151,494 | |||||
Less: Accumulated amortization | (54,096,827) | (43,034,803) | |||||
Purchase price of intangible assets | ¥ 75,000,000 | $ 12,023,475 | $ 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 | 12,023,475 | 9,004,710 | 15,347,915 | ||||
Amortization amount | 0 | 52,922 | $ 935,177 | ||||
Computer software licenses | |||||||
Intangible Assets, Net | |||||||
Intangible assets subject to amortization, gross | 14,733,911 | 9,534,433 | |||||
Less: Accumulated amortization | $ (5,858,041) | (4,784,950) | |||||
Weighted Average Amortization Periods | 7 years 2 months 1 day | ||||||
Customer relationship | |||||||
Intangible Assets, Net | |||||||
Intangible assets subject to amortization, gross | $ 11,827,601 | 12,084,676 | |||||
Less: Accumulated amortization | $ (9,101,229) | (8,086,039) | |||||
Weighted Average Amortization Periods | 4 years 4 months 13 days | ||||||
Database license | |||||||
Intangible Assets, Net | |||||||
Intangible assets subject to amortization, gross | $ 8,300,000 | 8,300,000 | |||||
Less: Accumulated amortization | $ (6,102,942) | (5,126,472) | |||||
Weighted Average Amortization Periods | 2 years 3 months | ||||||
Favorable lease term | |||||||
Intangible Assets, Net | |||||||
Intangible assets subject to amortization, gross | $ 9,541,891 | 9,541,891 | |||||
Less: Accumulated amortization | $ (1,698,374) | (1,167,905) | |||||
Weighted Average Amortization Periods | 16 years 11 days | ||||||
Non-compete agreements | |||||||
Intangible Assets, Net | |||||||
Intangible assets subject to amortization, gross | $ 3,326,771 | 3,415,152 | |||||
Less: Accumulated amortization | $ (3,303,820) | (3,349,230) | |||||
Weighted Average Amortization Periods | 3 months | ||||||
Customer contracts | |||||||
Intangible Assets, Net | |||||||
Intangible assets subject to amortization, gross | $ 1,009,216 | 1,054,964 | |||||
Less: Accumulated amortization | $ (865,459) | (871,174) | |||||
Weighted Average Amortization Periods | 3 years 11 months 9 days | ||||||
Domain name | |||||||
Intangible Assets, Net | |||||||
Intangible assets subject to amortization, gross | $ 222,026 | 229,709 | |||||
Less: Accumulated amortization | $ (111,942) | (77,863) | |||||
Weighted Average Amortization Periods | 3 years 10 months 17 days | ||||||
SINA | Advertising agency agreement and license agreements | |||||||
Intangible Assets, Net | |||||||
Additional extension of agreement period | 5 years | ||||||
Percentage of revenue fee on sales | 15.00% | ||||||
Trademark | |||||||
Intangible Assets, Net | |||||||
Intangible assets not subject to amortization | $ 736,029 | $ 781,085 |
Goodwill (Details)
Goodwill (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill | ||||||
Balance at the beginning of the period | $ 51,539,654 | $ 51,600,039 | $ 49,400,739 | |||
Goodwill recognized upon acquisition | 12,216,566 | 1,698,098 | ||||
Exchange rate translation | (975,072) | (60,385) | 501,202 | |||
Balance at the end of the period | 62,781,148 | 51,539,654 | 51,600,039 | |||
Goodwill, gross | $ 480,603,452 | $ 469,361,958 | $ 469,422,343 | |||
Accumulated impairment charge | (417,822,304) | (417,822,304) | (417,822,304) | |||
Goodwill, net | 51,539,654 | 51,600,039 | 49,400,739 | 62,781,148 | 51,539,654 | 51,600,039 |
Real Estate Online Services | ||||||
Goodwill | ||||||
Balance at the beginning of the period | 40,563,075 | 40,610,620 | 40,215,987 | |||
Exchange rate translation | (755,832) | (47,545) | 394,633 | |||
Balance at the end of the period | 39,807,243 | 40,563,075 | 40,610,620 | |||
Goodwill, gross | 457,629,547 | 458,385,379 | 458,432,924 | |||
Accumulated impairment charge | (417,822,304) | (417,822,304) | (417,822,304) | |||
Goodwill, net | 40,563,075 | 40,610,620 | 40,215,987 | 39,807,243 | 40,563,075 | 40,610,620 |
Real Estate Brokerage Services | ||||||
Goodwill | ||||||
Balance at the beginning of the period | 3,611,477 | 3,624,317 | 3,517,748 | |||
Exchange rate translation | (204,108) | (12,840) | 106,569 | |||
Balance at the end of the period | 3,407,369 | 3,611,477 | 3,624,317 | |||
Goodwill, gross | 3,407,369 | 3,611,477 | 3,624,317 | |||
Goodwill, net | 3,611,477 | 3,624,317 | 3,517,748 | 3,407,369 | 3,611,477 | 3,624,317 |
Real Estate Information and Consulting Services | ||||||
Goodwill | ||||||
Balance at the beginning of the period | 7,365,102 | 7,365,102 | 5,667,004 | |||
Goodwill recognized upon acquisition | 420,396 | 1,698,098 | ||||
Exchange rate translation | (15,132) | |||||
Balance at the end of the period | 7,770,366 | 7,365,102 | 7,365,102 | |||
Goodwill, gross | 7,770,366 | 7,365,102 | 7,365,102 | |||
Goodwill, net | 7,365,102 | $ 7,365,102 | $ 5,667,004 | 7,770,366 | $ 7,365,102 | $ 7,365,102 |
Community Value-added Services | ||||||
Goodwill | ||||||
Goodwill recognized upon acquisition | 11,716,718 | |||||
Balance at the end of the period | 11,716,718 | |||||
Goodwill, gross | 11,716,718 | |||||
Goodwill, net | 11,716,718 | 11,716,718 | ||||
Other Services | ||||||
Goodwill | ||||||
Goodwill recognized upon acquisition | 79,452 | |||||
Balance at the end of the period | 79,452 | |||||
Goodwill, gross | 79,452 | |||||
Goodwill, net | $ 79,452 | $ 79,452 |
Short Term Borrowings (Details)
Short Term Borrowings (Details) | 12 Months Ended | ||||
Dec. 31, 2015CNY (¥)item | Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) | Dec. 31, 2014USD ($) | |
Short-term loan balance | $ 40,039,480 | $ 35,953,500 | |||
Bank deposits as collateral | 32,185,582 | 38,290,478 | |||
PRC Commercial Bank | |||||
Short-term loan balance | ¥ 60,000,000 | 9,239,880 | |||
Long-term loan balance | ¥ 290,000,000 | $ 44,659,420 | |||
Term of short-term loan | 12 months | ||||
Term of long-term loan | 24 months | ||||
Interest rate (as a percent) | 6.04% | 6.04% | |||
Short term and long term debt | ¥ 350,000,000 | $ 53,899,300 | |||
Agreement value of property | 592,400,000 | 91,228,415 | |||
PRC Commercial Bank | CRIC | |||||
Short-term loan balance | ¥ 220,000,000 | 35,953,500 | |||
Bank deposits as collateral | ¥ 234,300,000 | $ 38,290,478 | |||
Term of short-term loan | 12 months | ||||
Interest rate (as a percent) | 6.50% | 6.50% | |||
Interest expense accrued | $ 6,416 | ||||
PRC Commercial Bank | Shanghai Real Estate Sales (Group) Co., Ltd.. | |||||
Short-term loan balance | ¥ 100,000,000 | $ 15,399,800 | |||
Term of short-term loan | 12 months | ||||
Number of loans | item | 3 | ||||
PRC Commercial Bank | Shanghai Real Estate Sales (Group) Co., Ltd.. | Short-term loan one 5.34% | |||||
Interest rate (as a percent) | 5.34% | 5.34% | |||
PRC Commercial Bank | Shanghai Real Estate Sales (Group) Co., Ltd.. | Short-term loan two 5.34% | |||||
Interest rate (as a percent) | 5.34% | 5.34% | |||
PRC Commercial Bank | Shanghai Real Estate Sales (Group) Co., Ltd.. | Short-term loan three 5.06% | |||||
Interest rate (as a percent) | 5.06% | 5.06% | |||
PRC Commercial Bank | Shanghai CRIC Information Technology Co., Ltd | |||||
Short-term loan balance | ¥ 100,000,000 | $ 15,399,800 | |||
Receivable as collateral | ¥ 102,727,564 | $ 15,819,839 | |||
Term of short-term loan | 12 months | ||||
Interest rate (as a percent) | 4.65% | 4.65% | |||
Shanghai International Trust | CRIC | |||||
Long-term loan balance | ¥ 182,000,000 | $ 28,027,636 | |||
Bank deposits as collateral | ¥ 209,000,000 | $ 32,185,582 | |||
Term of long-term loan | 24 months | ||||
Interest rate (as a percent) | 6.95% | 6.95% |
Convertible Senior Notes (Detai
Convertible Senior Notes (Details) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2013USD ($)item$ / shares | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares | Dec. 31, 2013USD ($)item$ / shares | |
Convertible senior notes | ||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||
Discounts to the initial purchaser | $ 3,375,000 | $ 3,375,000 | ||
Interest expense | $ 11,020,177 | $ 5,325,474 | 192,566 | |
Convertible senior notes. | ||||
Convertible senior notes | ||||
Aggregate principal amount issued | $ 135,000,000 | $ 135,000,000 | ||
Interest rate (as a percent) | 2.75% | 2.75% | ||
Number of shares receivable upon conversion | item | 1 | |||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||
Initial conversion rate | 0.0595380 | |||
Price per ADS on conversion (in dollars per share) | $ / shares | $ 16.8 | $ 16.8 | ||
Repurchase price as a percentage of principal amount of the notes | 100.00% | 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 | |||
Interest expense | 5,095,577 | $ 5,319,058 | 192,566 | |
Principal amount of debt repurchased | 10,000,000 | |||
Carrying amount of debt repurchased | 9,827,477 | |||
Consideration for note purchased | 9,569,451 | |||
Portion of net proceeds used to purchase a call option | $ 44,999,998 | $ 44,999,998 | ||
Number of ADS covered by portion of net proceeds used to purchase a call option | item | 3,482,972 | 3,482,972 | ||
Notes converted | $ 0 |
Dividends (Details)
Dividends (Details) | 1 Months Ended | 12 Months Ended | |||||
Mar. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($) | Nov. 30, 2014USD ($)$ / shares | Mar. 31, 2014USD ($)$ / shares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($)$ / shares | |
Dividends | |||||||
Cash dividend | $ 21,362,234 | $ 28,415,784 | $ 27,598,118 | $ 19,946,745 | |||
Dividends | $ 15,513,296 | $ 34,264,722 | $ 43,111,414 | 19,946,745 | |||
Dividends | $ 21,362,234 | 56,013,902 | $ 19,946,745 | ||||
Distribution to non-controlling interest recognized | $ 21,569,028 | ||||||
Ordinary Shares. | |||||||
Dividends | |||||||
Cash dividend approved by the board of directors (in dollars per share) | $ / shares | $ 0.15 | $ 0.20 | $ 0.20 | $ 0.15 | |||
ADS | |||||||
Dividends | |||||||
Cash dividend approved by the board of directors (in dollars per share) | $ / shares | $ 0.15 | $ 0.2 | $ 0.20 | $ 0.15 | |||
E-House | Ordinary Shares. | |||||||
Dividends | |||||||
Dividend conversion ratio | 0.05 | ||||||
E-House | ADS | |||||||
Dividends | |||||||
Dividend conversion ratio | 0.05 | ||||||
Leju Holdings Ltd. | |||||||
Dividends | |||||||
Dividends | $ 77,582,930 | ||||||
Distribution to non-controlling interest recognized | $ 21,569,028 |
Other Income (Loss), Net (Detai
Other Income (Loss), Net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Income (Loss), Net | |||
Gains on marketable securities, realized portion | $ 2,903,786 | $ 234,338 | |
Foreign exchange gain (loss) | $ (3,144,228) | 613,227 | (862,383) |
Amortized discounts related to liability for exclusive rights with Baidu | (52,922) | (935,177) | |
Gains from sale of properties held for sale | 720,486 | 0 | 118,559 |
Others | 526,846 | 393,448 | 393,448 |
Total other income (loss) | $ (1,896,896) | $ 3,857,539 | $ (1,051,215) |
Income Tax (Details)
Income Tax (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income (loss) Before Income Taxes: | |||
The Income (loss) Before Income Taxes: | $ 10,841,606 | $ 63,403,149 | $ 61,949,434 |
Current Tax | |||
Current Tax | 68,079,269 | 26,767,905 | 44,422,055 |
Deferred Tax | |||
Deferred taxes | 3,767,909 | (11,867,112) | (30,745,061) |
Income tax expense (benefit) | 71,847,178 | 14,900,793 | 13,676,994 |
The PRC | |||
Income (loss) Before Income Taxes: | |||
The Income (loss) Before Income Taxes: | 41,428,159 | 107,163,481 | 125,404,634 |
Current Tax | |||
Current Tax | 68,061,301 | 26,698,260 | 44,386,281 |
Deferred Tax | |||
Deferred taxes | 3,767,909 | (11,867,112) | (30,745,061) |
Outside of the PRC | |||
Income (loss) Before Income Taxes: | |||
The Income (loss) Before Income Taxes: | (30,586,553) | (43,760,332) | (63,455,200) |
Current Tax | |||
Current Tax | $ 17,968 | $ 69,645 | $ 35,774 |
Income Tax - Other Disclosures
Income Tax - Other Disclosures (Details ) | 1 Months Ended | 12 Months Ended | 24 Months Ended | 36 Months Ended | 48 Months Ended | |||||||
Jan. 31, 2008 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015CNY (¥) | Dec. 31, 2014USD ($) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2016 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2012 | Dec. 31, 2014 | |
Income Tax | ||||||||||||
Income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | |||||||||
Period of statute of limitation years if the underpayment of taxes is due to computational errors | 3 years | |||||||||||
Period of statute of limitation extended under special circumstances | 5 years | |||||||||||
Minimum amount of underpayment of tax liability considered for special circumstances | ¥ 100,000 | $ 15,400 | ||||||||||
Period of statute of limitation in case of transfer pricing related adjustment | 10 years | |||||||||||
Shanghai CRIC | High and new technology enterprise | ||||||||||||
Income Tax | ||||||||||||
Preferential income tax rate (as a percent) | 15.00% | |||||||||||
Shanghai CRIC | Key software enterprises | ||||||||||||
Income Tax | ||||||||||||
Preferential income tax rate (as a percent) | 10.00% | 10.00% | ||||||||||
The PRC | ||||||||||||
Income Tax | ||||||||||||
Income tax rate (as a percent) | 25.00% | |||||||||||
The PRC | Shanghai CRIC | High and new technology enterprise | ||||||||||||
Income Tax | ||||||||||||
Preferential income tax rate (as a percent) | 15.00% | |||||||||||
The PRC | Shanghai CRIC | Software enterprise | ||||||||||||
Income Tax | ||||||||||||
Preferential income tax rate (as a percent) | 12.50% | |||||||||||
Percentage of tax reduction | 50.00% | |||||||||||
The PRC | Shanghai SINA Leju | High and new technology enterprise | ||||||||||||
Income Tax | ||||||||||||
Preferential income tax rate (as a percent) | 15.00% | 15.00% | 15.00% | 15.00% | ||||||||
The PRC | Shanghai SINA Leju | Software enterprise | ||||||||||||
Income Tax | ||||||||||||
Preferential income tax rate (as a percent) | 12.50% | |||||||||||
Percentage of tax reduction | 50.00% | |||||||||||
The PRC | Shanghai Fangxin information technology Co., Ltd. | Software enterprise | ||||||||||||
Income Tax | ||||||||||||
Preferential income tax rate (as a percent) | 12.50% | |||||||||||
Percentage of tax reduction | 50.00% | |||||||||||
The PRC | Chongqing E-House Western Real Estate Investment Consultant Co., Ltd. | ||||||||||||
Income Tax | ||||||||||||
Preferential income tax rate (as a percent) | 15.00% | 15.00% | 15.00% | |||||||||
Hong Kong | ||||||||||||
Income Tax | ||||||||||||
Income tax rate (as a percent) | 16.50% | |||||||||||
Macau | Minimum | ||||||||||||
Income Tax | ||||||||||||
Progressive tax rate (as a percent) | 0.00% | |||||||||||
Macau | Maximum | ||||||||||||
Income Tax | ||||||||||||
Progressive tax rate (as a percent) | 12.00% |
Income Tax - Principal componen
Income Tax - Principal components of deferred tax and movement of valuation allowance (Details ) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred tax assets: | |||||
Accrued salary expenses | $ 34,511,086 | $ 28,416,464 | |||
Bad debt provision | 15,286,130 | 11,378,650 | |||
Net operating loss carry forwards | 46,558,510 | 37,530,099 | |||
Advertising expenses temporarily non-deductible | 15,545,412 | 21,707,365 | |||
Other | 495,940 | 463,286 | |||
Gross deferred tax assets | 112,397,078 | 99,495,864 | |||
Valuation allowance | $ (13,336,847) | $ (11,237,880) | $ (7,324,717) | (38,483,925) | (13,336,847) |
Total deferred tax assets | 73,913,153 | 86,159,017 | |||
Analysis as: | |||||
Current | 61,734,685 | 64,804,392 | |||
Non-current | 12,178,468 | 21,354,625 | |||
Deferred tax liabilities: | |||||
Amortization of intangible and other assets | 26,301,048 | 28,203,218 | |||
Total deferred tax liabilities | 26,301,048 | 28,203,218 | |||
Analysis as: | |||||
Non-current | $ 26,301,048 | $ 28,203,218 | |||
Movement of the valuation allowance | |||||
Balance at the beginning of the period | 13,336,847 | 11,237,880 | 7,324,717 | ||
Additions | 27,539,836 | 2,646,753 | 3,631,241 | ||
Write off | (830,213) | (302,750) | |||
Changes due to foreign exchange | (1,562,545) | (245,036) | 281,922 | ||
Balance at the end of the period | $ 38,483,925 | $ 13,336,847 | $ 11,237,880 |
Income Tax - Reconciliation and
Income Tax - Reconciliation and tax holiday effect (Details ) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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) | 72.54% | 10.92% | 13.60% |
Effect of tax preference (as a percent) | (56.97%) | (20.31%) | (17.16%) |
Effect of different tax rate of subsidiary operation in other jurisdiction (as a percent) | 0.49% | 2.45% | (1.47%) |
Valuation allowance movement (as a percent) | 254.02% | 4.17% | 5.86% |
Effect of different tax rate of DTA and DTL applied (as a percent) | (10.93%) | 2.99% | (3.22%) |
Withholding tax (as a percent) | 379.60% | ||
Other (as a percent) | (1.05%) | (1.72%) | (0.53%) |
Effective income tax rate (as a percent) | 662.70% | 23.50% | 22.08% |
Aggregate amount and per share effect of the tax holiday | |||
The aggregate dollar effect | $ 6,176,149 | $ 12,875,656 | $ 10,628,117 |
Per share effect basic | $ 0.04 | $ 0.09 | $ 0.08 |
Per share effect diluted | $ 0.04 | $ 0.09 | $ 0.08 |
Tax losses carry forward | $ 186,234,042 | $ 150,106,326 | |
Undistributed earnings of PRC subsidiaries | 536,800,000 | ||
Leju Holdings Ltd. | |||
Aggregate amount and per share effect of the tax holiday | |||
Undistributed earnings of PRC subsidiaries | $ 240,300,000 |
Income Tax -Others (Details )
Income Tax -Others (Details ) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Outside China | |
Income Tax | |
Withholding tax rate | 10.00% |
Accrued Withholding Tax | $ 36,284,325 |
Scepter | |
Income Tax | |
Withholding tax rate | 10.00% |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) | Aug. 11, 2015 | Aug. 21, 2014 | Aug. 08, 2014 | Mar. 18, 2014 | Dec. 16, 2013 | Dec. 02, 2013 | Dec. 01, 2013 | Jan. 31, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | Nov. 30, 2012 | Oct. 31, 2010 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2006 | Aug. 31, 2015 |
E-House Plan | |||||||||||||||||
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% | ||||||||||||||||
Award vesting period | 3 years | ||||||||||||||||
Additional number of shares authorized | 6,644,659 | 1,273,000 | 4,013,619 | ||||||||||||||
Expiration period | 10 years | ||||||||||||||||
E-House Plan | Share Options: | |||||||||||||||||
Share-Based Compensation | |||||||||||||||||
Compensation expense | $ 0 | $ 5,950,940 | $ 12,817,935 | ||||||||||||||
Additional disclosure | |||||||||||||||||
Compensation expense | 0 | 5,950,940 | 12,817,935 | ||||||||||||||
Total intrinsic value of options exercised | 1,745,007 | 23,679,729 | 25,248,554 | ||||||||||||||
E-House Plan | Restricted Shares: | |||||||||||||||||
Share-Based Compensation | |||||||||||||||||
Compensation expense | $ 9,680,385 | 6,174,583 | 5,668,460 | ||||||||||||||
Forfeited (in shares) | (50,004) | ||||||||||||||||
Additional disclosure | |||||||||||||||||
Compensation expense | $ 9,680,385 | $ 6,174,583 | $ 5,668,460 | ||||||||||||||
E-House Plan | Restricted Shares: | Groups Employees Directors And Officers | |||||||||||||||||
Share-Based Compensation | |||||||||||||||||
Granted (in shares) | 0 | 1,439,000 | 1,303,000 | ||||||||||||||
Leju Plan | |||||||||||||||||
Share-Based Compensation | |||||||||||||||||
Expiration period | 10 years | ||||||||||||||||
Leju Plan | Employees | |||||||||||||||||
Share-Based Compensation | |||||||||||||||||
Award vesting period | 3 years | ||||||||||||||||
Expiration period | 10 years | ||||||||||||||||
Options granted for purchase of shares | 2,517,000 | ||||||||||||||||
Leju Plan | Minimum | Employees | |||||||||||||||||
Share-Based Compensation | |||||||||||||||||
Exercise price of shares granted (in dollars per share) | $ 5.54 | ||||||||||||||||
Leju Plan | Maximum | |||||||||||||||||
Share-Based Compensation | |||||||||||||||||
Number of shares that may be issued as a percentage of total outstanding shares | 8.00% | ||||||||||||||||
Leju Plan | Maximum | Employees | |||||||||||||||||
Share-Based Compensation | |||||||||||||||||
Exercise price of shares granted (in dollars per share) | $ 9.68 | ||||||||||||||||
Leju Plan | Share Options: | |||||||||||||||||
Share-Based Compensation | |||||||||||||||||
Compensation expense | $ 5,096,192 | $ 4,525,552 | $ 381,874 | ||||||||||||||
Exercise price of shares granted (in dollars per share) | $ 4.60 | $ 6.38 | |||||||||||||||
Assumptions used in the binomial model | |||||||||||||||||
Average risk-free rate of return (as a percent) | 2.14% | 2.98% | |||||||||||||||
Contractual life of option | 10 years | 10 years | |||||||||||||||
Average estimated volatility rate (as a percent) | 62.82% | 56.74% | |||||||||||||||
Average dividend yield (as a percent) | 2.56% | 0.00% | |||||||||||||||
Additional disclosure | |||||||||||||||||
Weighted-average grant-date fair value of options granted (in dollars per share) | $ 3.44 | $ 2.21 | |||||||||||||||
Compensation expense | $ 5,096,192 | 4,525,552 | $ 381,874 | ||||||||||||||
Total intrinsic value of options exercised | 949,907 | 1,668,693 | |||||||||||||||
Leju Plan | Share Options: | Employees | |||||||||||||||||
Share-Based Compensation | |||||||||||||||||
Granted (in shares) | 60,000 | ||||||||||||||||
Exercise price of shares granted (in dollars per share) | $ 4.60 | ||||||||||||||||
Leju Plan | Share Options: | Directors and employees | |||||||||||||||||
Share-Based Compensation | |||||||||||||||||
Granted (in shares) | 600,000 | ||||||||||||||||
Leju Plan | Share Options: | Group's employees and employees of the reporting entity | |||||||||||||||||
Share-Based Compensation | |||||||||||||||||
Award vesting period | 3 years | ||||||||||||||||
Expiration period | 10 years | ||||||||||||||||
Options granted for purchase of shares | 7,192,000 | ||||||||||||||||
Exercise price of shares granted (in dollars per share) | $ 4.60 | ||||||||||||||||
Leju Plan | Restricted Shares: | |||||||||||||||||
Share-Based Compensation | |||||||||||||||||
Compensation expense | $ 5,314,902 | 4,923,226 | 34,758 | ||||||||||||||
Forfeited (in shares) | (10,200) | ||||||||||||||||
Additional disclosure | |||||||||||||||||
Compensation expense | $ 5,314,902 | 4,923,226 | $ 34,758 | ||||||||||||||
Leju Plan | Restricted Shares: | Groups Employees Directors And Officers | |||||||||||||||||
Share-Based Compensation | |||||||||||||||||
Award vesting period | 8 months | 3 years | |||||||||||||||
Options granted for purchase of shares | 229,400 | ||||||||||||||||
Granted (in shares) | 866,000 | ||||||||||||||||
Omnigold Plan | Maximum | |||||||||||||||||
Share-Based Compensation | |||||||||||||||||
Number of shares authorized | 5,000,000 | ||||||||||||||||
Number of shares that may be issued as a percentage of total outstanding shares | 5.00% | ||||||||||||||||
Omnigold Plan | Share Options: | |||||||||||||||||
Share-Based Compensation | |||||||||||||||||
Compensation expense | $ 80,577 | ||||||||||||||||
Award vesting period | 3 years | ||||||||||||||||
Expiration period | 10 years | ||||||||||||||||
Options granted for purchase of shares | 2,400,000 | ||||||||||||||||
Exercise price of shares granted (in dollars per share) | $ 1.50 | $ 1.50 | |||||||||||||||
Assumptions used in the binomial model | |||||||||||||||||
Average risk-free rate of return (as a percent) | 3.33% | ||||||||||||||||
Contractual life of option | 10 years | ||||||||||||||||
Average estimated volatility rate (as a percent) | 63.69% | ||||||||||||||||
Average dividend yield (as a percent) | 0.00% | ||||||||||||||||
Additional disclosure | |||||||||||||||||
Weighted-average grant-date fair value of options granted (in dollars per share) | $ 0.30 | ||||||||||||||||
Compensation expense | $ 80,577 | ||||||||||||||||
Scepter Plan | Share Options: | |||||||||||||||||
Share-Based Compensation | |||||||||||||||||
Compensation expense | 84,452 | $ 66,820 | |||||||||||||||
Award vesting period | 3 years | ||||||||||||||||
Expiration period | 10 years | ||||||||||||||||
Assumptions used in the binomial model | |||||||||||||||||
Average risk-free rate of return (as a percent) | 4.30% | ||||||||||||||||
Contractual life of option | 10 years | ||||||||||||||||
Average estimated volatility rate (as a percent) | 50.00% | ||||||||||||||||
Average dividend yield (as a percent) | 1.70% | ||||||||||||||||
Additional disclosure | |||||||||||||||||
Weighted-average grant-date fair value of options granted (in dollars per share) | $ 1.12 | ||||||||||||||||
Compensation expense | $ 84,452 | $ 66,820 | |||||||||||||||
Scepter Plan | Share Options: | Employees | |||||||||||||||||
Share-Based Compensation | |||||||||||||||||
Award vesting period | 3 years | ||||||||||||||||
Expiration period | 10 years | ||||||||||||||||
Options granted for purchase of shares | 455,000 | ||||||||||||||||
Exercise price of shares granted (in dollars per share) | $ 3.30 | ||||||||||||||||
Scepter Plan | Share Options: | Maximum | |||||||||||||||||
Share-Based Compensation | |||||||||||||||||
Number of shares authorized | 750,000 |
Share-Based Compensation- Numbe
Share-Based Compensation- Number of options and others (Details ) - USD ($) | Aug. 11, 2015 | Dec. 16, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 31, 2015 |
E-House Plan | Share Options: | ||||||
Number of Options | ||||||
Outstanding at the beginning of the period (in shares) | 9,476,704 | |||||
Exercised (in shares) | (513,261) | (3,446,585) | (4,596,761) | |||
Forfeited (in shares) | (7,160) | |||||
Outstanding at the end of the period (in shares) | 8,956,283 | 9,476,704 | ||||
Vested and expected to vest at the end of the period (in shares) | 8,956,283 | |||||
Exercisable at the end of the period (in shares) | 8,956,283 | |||||
Weighted Average Exercise Price | ||||||
Outstanding at the beginning of the period (in dollars per share) | $ 4.52 | |||||
Exercised (in dollars per share) | 1.86 | |||||
Forfeited (in dollars per share) | 4.74 | |||||
Outstanding at the end of the period (in dollars per share) | 4.67 | $ 4.52 | ||||
Vested and expected to vest at the end of the period (in dollars per share) | 4.67 | |||||
Exercisable at the end of the period (in dollars per share) | $ 4.67 | |||||
Weighted average remaining contractual term | ||||||
Outstanding at the end of the period | 4 years 9 months 18 days | |||||
Vested and expected to vest at the end of the period | 4 years 9 months 18 days | |||||
Exercisable at the end of the period | 4 years 9 months 18 days | |||||
Weighted Average Aggregate Intrinsic value of options | ||||||
Outstanding at the beginning of the period | $ 25,776,635 | |||||
Exercised | 1,745,007 | $ 23,679,729 | $ 25,248,554 | |||
Outstanding at the end of the period | 14,509,178 | 25,776,635 | ||||
Vested and expected to vest at the end of the period | 14,509,178 | |||||
Exercisable at the end of the period | 14,509,178 | |||||
Additional disclosure | ||||||
Compensation expense | 0 | 5,950,940 | 12,817,935 | |||
E-House Plan | Restricted Shares: | ||||||
Additional disclosure | ||||||
Total fair value of restricted shares vested | 9,909,868 | 6,094,602 | 5,612,379 | |||
Compensation expense | 9,680,385 | $ 6,174,583 | 5,668,460 | |||
Total unrecognized compensation expense | $ 11,393,099 | |||||
Weighted-average period over which cost is expected to be recognized | 1 year 6 months 18 days | |||||
Leju Plan | Share Options: | ||||||
Number of Options | ||||||
Outstanding at the beginning of the period (in shares) | 6,133,799 | |||||
Granted (in shares) | 2,517,000 | |||||
Exercised (in shares) | (196,185) | (266,201) | ||||
Forfeited (in shares) | (390,896) | |||||
Outstanding at the end of the period (in shares) | 8,063,718 | 6,133,799 | ||||
Vested and expected to vest at the end of the period (in shares) | 7,824,106 | |||||
Exercisable at the end of the period (in shares) | 3,635,917 | |||||
Weighted Average Exercise Price | ||||||
Outstanding at the beginning of the period (in dollars per share) | $ 4.60 | |||||
Granted (in dollars per share) | $ 4.60 | 6.38 | ||||
Exercised (in dollars per share) | 4.60 | |||||
Forfeited (in dollars per share) | 5.26 | |||||
Outstanding at the end of the period (in dollars per share) | 5.12 | $ 4.60 | ||||
Vested and expected to vest at the end of the period (in dollars per share) | 5.51 | |||||
Exercisable at the end of the period (in dollars per share) | $ 4.60 | |||||
Weighted average remaining contractual term | ||||||
Outstanding at the end of the period | 8 years 6 months | 8 years 11 months 1 day | ||||
Granted | 10 years | |||||
Vested and expected to vest at the end of the period | 8 years 11 months 19 days | |||||
Exercisable at the end of the period | 7 years 11 months 1 day | |||||
Weighted Average Aggregate Intrinsic value of options | ||||||
Outstanding at the beginning of the period | $ 37,784,202 | |||||
Exercised | 949,907 | $ 1,668,693 | ||||
Outstanding at the end of the period | 4,806,104 | 37,784,202 | ||||
Vested and expected to vest at the end of the period | 1,663,274 | |||||
Exercisable at the end of the period | 4,072,227 | |||||
Additional disclosure | ||||||
Compensation expense | 5,096,192 | 4,525,552 | 381,874 | |||
Total unrecognized compensation expense | $ 11,525,658 | |||||
Weighted-average period over which cost is expected to be recognized | 2 years 1 month 17 days | |||||
Leju Plan | Restricted Shares: | ||||||
Additional disclosure | ||||||
Total fair value of restricted shares vested | $ 7,179,455 | 486,200 | 0 | |||
Compensation expense | 5,314,902 | 4,923,226 | $ 34,758 | |||
Total unrecognized compensation expense | $ 4,384,344 | |||||
Weighted-average period over which cost is expected to be recognized | 1 year 2 months 9 days | |||||
Omnigold Plan | Share Options: | ||||||
Number of Options | ||||||
Granted (in shares) | 2,400,000 | |||||
Forfeited (in shares) | (130,000) | |||||
Outstanding at the end of the period (in shares) | 2,270,000 | |||||
Vested and expected to vest at the end of the period (in shares) | 1,966,771 | |||||
Weighted Average Exercise Price | ||||||
Granted (in dollars per share) | $ 1.50 | $ 1.50 | ||||
Forfeited (in dollars per share) | 1.50 | |||||
Outstanding at the end of the period (in dollars per share) | 1.50 | |||||
Vested and expected to vest at the end of the period (in dollars per share) | $ 1.50 | |||||
Weighted average remaining contractual term | ||||||
Outstanding at the end of the period | 9 years 7 months 10 days | |||||
Granted | 10 years | |||||
Vested and expected to vest at the end of the period | 9 years 7 months 10 days | |||||
Additional disclosure | ||||||
Weighted-average grant-date fair value of options granted (in dollars per share) | $ 0.30 | |||||
Compensation expense | $ 80,577 | |||||
Total unrecognized compensation expense | $ 545,884 | |||||
Weighted-average period over which cost is expected to be recognized | 2 years 7 months 10 days | |||||
Scepter Plan | ||||||
Additional disclosure | ||||||
Total unrecognized compensation expense | 0 | |||||
Scepter Plan | Share Options: | ||||||
Additional disclosure | ||||||
Compensation expense | $ 84,452 | $ 66,820 |
Share-Based Compensation- Summa
Share-Based Compensation- Summary of Restricted share activity and others (Details) - USD ($) | Aug. 21, 2014 | Mar. 18, 2014 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2006 |
Additional disclosure | |||||||
Additional paid-in capital | $ 983,468,984 | $ 991,645,842 | |||||
Group of five employees | |||||||
Additional disclosure | |||||||
Total unrecognized compensation expense | 1,603,805 | 3,742,209 | |||||
Weighted-average period over which cost is expected to be recognized | 2 years | ||||||
Additional paid-in capital | $ 4,276,810 | ||||||
Compensation expense | $ 2,138,404 | $ 534,601 | |||||
Recognition period of stock based compensation expense | 2 years | ||||||
Beijing Leju Advertisement and Yisheng Shanghai | Group of five employees | |||||||
Additional disclosure | |||||||
Number of years should serve by five employee individual shareholders after acquisition | 2 years | ||||||
E-House Plan | |||||||
Summary of restricted share activity | |||||||
Award vesting period | 3 years | ||||||
E-House Plan | Restricted Shares: | |||||||
Summary of restricted share activity | |||||||
Unvested at the beginning of the period (in shares) | 2,697,049 | ||||||
Vested (in shares) | (1,288,330) | ||||||
Forfeited (in shares) | (50,004) | ||||||
Unvested at the end of the period (in shares) | 1,358,715 | 2,697,049 | |||||
Weighted average grant-date fair value | |||||||
Unvested at the beginning of the period (in dollars per share) | $ 8.50 | ||||||
Vested (in dollars per share) | 7.69 | ||||||
Forfeited (in dollars per share) | 7.90 | ||||||
Unvested at the end of the period (in dollars per share) | $ 9.30 | $ 8.50 | |||||
Additional disclosure | |||||||
Total fair value of restricted shares vested | $ 9,909,868 | $ 6,094,602 | $ 5,612,379 | ||||
Total unrecognized compensation expense | $ 11,393,099 | ||||||
Weighted-average period over which cost is expected to be recognized | 1 year 6 months 18 days | ||||||
Compensation expense | $ 9,680,385 | $ 6,174,583 | $ 5,668,460 | ||||
E-House Plan | Restricted Shares: | Groups Employees Directors And Officers | |||||||
Summary of restricted share activity | |||||||
Granted (in shares) | 0 | 1,439,000 | 1,303,000 | ||||
Leju Plan | Restricted Shares: | |||||||
Summary of restricted share activity | |||||||
Unvested at the beginning of the period (in shares) | 1,526,600 | ||||||
Vested (in shares) | (719,064) | ||||||
Forfeited (in shares) | (10,200) | ||||||
Unvested at the end of the period (in shares) | 797,336 | 1,526,600 | |||||
Weighted average grant-date fair value | |||||||
Unvested at the beginning of the period (in dollars per share) | $ 9.42 | ||||||
Vested (in dollars per share) | 9.98 | ||||||
Forfeited (in dollars per share) | 16.25 | ||||||
Unvested at the end of the period (in dollars per share) | $ 8.82 | $ 9.42 | |||||
Additional disclosure | |||||||
Total fair value of restricted shares vested | $ 7,179,455 | $ 486,200 | $ 0 | ||||
Total unrecognized compensation expense | $ 4,384,344 | ||||||
Weighted-average period over which cost is expected to be recognized | 1 year 2 months 9 days | ||||||
Compensation expense | $ 5,314,902 | 4,923,226 | $ 34,758 | ||||
Leju Plan | Restricted Shares: | Groups Employees Directors And Officers | |||||||
Summary of restricted share activity | |||||||
Award vesting period | 8 months | 3 years | |||||
Granted (in shares) | 866,000 | ||||||
Scepter Plan | |||||||
Additional disclosure | |||||||
Total unrecognized compensation expense | $ 0 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Benefit Plans | |||
Contribution to employee benefit plans | $ 65,851,244 | $ 58,365,171 | $ 45,924,681 |
Distribution of Profits (Detail
Distribution of Profits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
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 | $ 44,095,817 | $ 40,478,568 |
Restricted portion of net assets, including general reserve and registered capital of PRC subsidiaries and VIEs | 190,902,154 | 183,740,692 |
Restricted portion of net assets attributed to general reserve and registered capital of the VIEs | $ 11,234,613 | $ 12,076,642 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - Recurring | Dec. 31, 2014USD ($) |
Fair value measurement | |
Fair value | $ 39,484,906 |
Significant Unobservable Inputs (Level 3) | |
Fair value measurement | |
Fair value | $ 39,484,906 |
Fair Value Measurement- Unobser
Fair Value Measurement- Unobservable Inputs (Details) - Preferred shares | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Quantitative inputs and assumptions | |
Assets at fair value | $ 39,484,906 |
Discounted cash flow and option pricing method | Significant Unobservable Inputs (Level 3) | |
Unobservable Inputs | |
Discount Rate | 21.50% |
Discount for Lack of Marketability ("DLOM") | 9.00% |
Terminal growth rate | 3.00% |
Fair Value Measurement- Changes
Fair Value Measurement- Changes in fair value for assets using Level 3 inputs (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Changes in fair value for assets using Level 3 inputs | |||
Fair value asset transfers from Level 1 to Level 2 | $ 0 | $ 0 | |
Fair value asset transfers from Level 2 to Level 1 | 0 | 0 | |
Fair value asset transfers into/out of Level 3 | 0 | 0 | |
Assets measured at fair value on nonrecurring basis | 0 | 0 | $ 0 |
Impairment of properties held for sale | 5,887,614 | 0 | 0 |
Liabilities measured at fair value on nonrecurring basis | 0 | 0 | $ 0 |
Fair value of non-current portion of customer deposits | 1,290,349 | 751,909 | |
Fair Value of the long term borrowings | 68,126,316 | ||
Preferred shares | |||
Changes in fair value for assets using Level 3 inputs | |||
Balance as of January 1, | 39,484,906 | ||
Purchased | 25,719,808 | ||
Changes in gains included in other comprehensive income | 25,106,794 | 13,765,098 | |
Reversed the recognized unrealized gains included in other comprehensive income | (38,871,892) | ||
Balance as of December 31 | 39,484,906 | ||
Unrealized gains | $ 13,765,098 | ||
Fair value asset transfers into/out of Level 3 | (25,719,808) | ||
Level 2 | |||
Changes in fair value for assets using Level 3 inputs | |||
Impairment of properties held for sale | $ 5,887,614 |
Segment Information (Details)
Segment Information (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($)segment | Dec. 31, 2013USD ($)segment | |
Segment Information | |||
Number of operating segments | segment | 2 | 5 | 5 |
Segment Information | |||
Revenues | $ 1,023,656,993 | $ 904,498,793 | $ 731,078,833 |
Cost of revenues | (329,761,444) | (306,133,210) | (274,035,806) |
Selling, general and administrative expenses | (706,050,055) | (545,491,718) | (400,947,001) |
Other operating income | 6,756,906 | 8,786,891 | 4,917,642 |
Income (loss) from operations | (5,397,600) | 61,660,756 | 61,013,668 |
Interest expense | (11,020,177) | (5,325,474) | (192,566) |
Interest income | 4,832,800 | 3,210,328 | 2,179,547 |
Other income (expense), net | (1,896,896) | 3,857,539 | (1,051,215) |
Investment income | 24,323,479 | ||
Income before taxes and equity in affiliates | 10,841,606 | 63,403,149 | 61,949,434 |
Income tax benefit (expense) | (71,847,178) | (14,900,793) | (13,676,994) |
Income (loss) before equity in affiliates | (61,005,572) | 48,502,356 | 48,272,440 |
Income from equity in affiliates | 5,705,701 | 3,834,802 | 2,813,849 |
Net income (loss) | (55,299,871) | 52,337,158 | 51,086,289 |
Operating Segment | Real Estate Online Services | |||
Segment Information | |||
Revenues | 575,775,257 | 495,862,635 | 335,410,902 |
Cost of revenues | (60,313,726) | (51,129,730) | (63,990,693) |
Selling, general and administrative expenses | (469,517,752) | (365,150,431) | (210,576,230) |
Other operating income | 3,567,965 | 2,525,496 | 599,894 |
Income (loss) from operations | 49,511,744 | 82,107,970 | 61,443,873 |
Interest income | 1,167,005 | 1,316,203 | 1,082,287 |
Other income (expense), net | 290,039 | 35,799 | (1,185,121) |
Investment income | 271,501 | ||
Income before taxes and equity in affiliates | 51,240,289 | 83,459,972 | 61,341,039 |
Income tax benefit (expense) | (10,307,322) | (15,545,964) | (5,447,524) |
Income (loss) before equity in affiliates | 40,932,967 | 67,914,008 | 55,893,515 |
Income from equity in affiliates | (227,977) | (223,389) | (69,194) |
Net income (loss) | 40,704,990 | 67,690,619 | 55,824,321 |
Operating Segment | Real Estate Brokerage Services | |||
Segment Information | |||
Revenues | 364,405,185 | 283,367,930 | 280,776,816 |
Cost of revenues | (230,513,415) | (204,101,162) | (168,624,507) |
Selling, general and administrative expenses | (86,395,528) | (64,337,955) | (74,728,461) |
Other operating income | 1,890,328 | 2,223,460 | 1,647,257 |
Income (loss) from operations | 49,386,570 | 17,152,273 | 39,071,105 |
Interest income | 346,181 | 1,099,825 | 819,925 |
Other income (expense), net | 135,943 | (68,069) | 87,270 |
Investment income | 251,503 | ||
Income before taxes and equity in affiliates | 50,120,197 | 18,184,029 | 39,978,300 |
Income tax benefit (expense) | (19,681,909) | (5,083,029) | (10,000,257) |
Income (loss) before equity in affiliates | 30,438,288 | 13,101,000 | 29,978,043 |
Income from equity in affiliates | 88,993 | 118,651 | 343,561 |
Net income (loss) | 30,527,281 | 13,219,651 | 30,321,604 |
Operating Segment | Real Estate Information and Consulting Services | |||
Segment Information | |||
Revenues | 58,328,609 | 82,679,298 | 76,683,188 |
Cost of revenues | (19,927,903) | (25,153,090) | (14,526,318) |
Selling, general and administrative expenses | (56,271,928) | (59,703,161) | (58,026,755) |
Other operating income | 1,049,634 | 3,301,932 | 1,950,223 |
Income (loss) from operations | (16,821,588) | 1,124,979 | 6,080,338 |
Interest income | 295,291 | 691,003 | 222,898 |
Other income (expense), net | 885,703 | 657,952 | (479,313) |
Income before taxes and equity in affiliates | (15,640,594) | 2,473,934 | 5,823,923 |
Income tax benefit (expense) | (1,900,909) | (236,440) | (3,606,417) |
Income (loss) before equity in affiliates | (17,541,503) | 2,237,494 | 2,217,506 |
Income from equity in affiliates | 837,198 | 1,761,582 | 312,119 |
Net income (loss) | (16,704,305) | 3,999,076 | 2,529,625 |
Operating Segment | Community Value-added Services | |||
Segment Information | |||
Revenues | 518,597 | ||
Cost of revenues | (2,970) | ||
Selling, general and administrative expenses | (45,322,798) | (15,828,009) | |
Income (loss) from operations | (44,807,171) | (15,828,009) | |
Interest income | 12,563 | 6,124 | |
Other income (expense), net | (9) | ||
Income before taxes and equity in affiliates | (44,794,617) | (15,821,885) | |
Income tax benefit (expense) | (3,653,047) | 3,932,057 | |
Income (loss) before equity in affiliates | (48,447,664) | (11,889,828) | |
Income from equity in affiliates | (598,582) | ||
Net income (loss) | (49,046,246) | (11,889,828) | |
Operating Segment | Other Services | |||
Segment Information | |||
Revenues | 24,629,345 | 42,588,930 | 38,207,927 |
Cost of revenues | (19,003,430) | (25,749,228) | (26,894,288) |
Selling, general and administrative expenses | (12,711,179) | (14,662,201) | (12,404,049) |
Other operating income | 248,979 | 736,003 | 720,268 |
Income (loss) from operations | (6,836,285) | 2,913,504 | (370,142) |
Interest income | 28,416 | 78,608 | 51,944 |
Other income (expense), net | 40,085 | (8,987) | (11,837) |
Investment income | 51,986 | ||
Income before taxes and equity in affiliates | (6,715,798) | 2,983,125 | (330,035) |
Income tax benefit (expense) | (2,036,601) | (169,368) | (588,344) |
Income (loss) before equity in affiliates | (8,752,399) | 2,813,757 | (918,379) |
Income from equity in affiliates | 3,849,891 | (367,621) | (9,320) |
Net income (loss) | (4,902,508) | 2,446,136 | (927,699) |
Non-allocated | |||
Segment Information | |||
Selling, general and administrative expenses | (35,830,870) | (25,809,961) | (45,211,506) |
Income (loss) from operations | (35,830,870) | (25,809,961) | (45,211,506) |
Interest expense | (11,020,177) | (5,325,474) | (192,566) |
Interest income | 2,983,344 | 18,565 | 2,493 |
Other income (expense), net | (3,248,657) | 3,240,844 | 537,786 |
Investment income | 23,748,489 | ||
Income before taxes and equity in affiliates | (23,367,871) | (27,876,026) | (44,863,793) |
Income tax benefit (expense) | (34,267,390) | 2,201,951 | 5,965,548 |
Income (loss) before equity in affiliates | (57,635,261) | (25,674,075) | (38,898,245) |
Income from equity in affiliates | 1,756,178 | 2,545,579 | 2,236,683 |
Net income (loss) | $ (55,879,083) | $ (23,128,496) | $ (36,661,562) |
Segment Information- Major cust
Segment Information- Major customers (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Major customers | |||
Revenues from major customer | $ 1,023,656,993 | $ 904,498,793 | $ 731,078,833 |
Accounts receivable from major customer | 462,310,290 | 415,150,008 | |
Accounts receivable | Credit risk | Customer A | |||
Major customers | |||
Accounts receivable from major customer | 90,557,835 | 53,534,294 | |
Customer deposits | Customer deposits | Customer B | |||
Major customers | |||
Customer deposits from major customer | 34,144,128 | 33,540,800 | |
Customer deposits | Customer deposits | Customer C | |||
Major customers | |||
Customer deposits from major customer | 30,799,600 | 24,513,750 | |
Customer deposits | Customer deposits | Customer D | |||
Major customers | |||
Customer deposits from major customer | $ 23,206,350 | ||
Customer deposits | Customer deposits | Customer E | |||
Major customers | |||
Customer deposits from major customer | 20,000,000 | ||
Customer deposits | Customer deposits | Customer F | |||
Major customers | |||
Customer deposits from major customer | $ 15,399,800 |
Related Party Balances and Tr81
Related Party Balances and Transactions (Details) | Mar. 25, 2013USD ($)shares | Jan. 31, 2010CNY (¥) | Jan. 31, 2010USD ($) | Jan. 31, 2008USD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015USD ($) | Dec. 31, 2014CNY (¥) | Dec. 31, 2014USD ($) | Dec. 31, 2013CNY (¥)shares | Dec. 31, 2013USD ($)shares | Dec. 31, 2012CNY (¥) | Dec. 31, 2012USD ($) | Apr. 30, 2010 |
Amounts due from related parties | |||||||||||||
Total amounts due from related parties | $ 1,551,873 | $ 6,094,260 | |||||||||||
Amounts due to related parties | 9,934,688 | 7,356,186 | |||||||||||
Balances with customers, suppliers and affiliates who are related parties | |||||||||||||
Aggregate price of shares issued to Kanrich | $ 62,621,240 | $ 62,621,240 | |||||||||||
Management fees | 3,175,137 | 11,743,244 | $ 6,334,198 | ||||||||||
Ordinary Shares | |||||||||||||
Balances with customers, suppliers and affiliates who are related parties | |||||||||||||
Number of ordinary shares, issued | shares | 17,790,125 | 17,790,125 | 17,790,125 | ||||||||||
Aggregate price of shares issued to Kanrich | $ 17,790 | ||||||||||||
Wuling Center | |||||||||||||
Balances with customers, suppliers and affiliates who are related parties | |||||||||||||
Cash contribution made | ¥ 18,000,000 | $ 2,946,996 | ¥ 27,000,000 | $ 4,428,486 | ¥ 15,000,000 | $ 2,386,440 | |||||||
Equity interest (as a percent) | 6.50% | 6.50% | 6.50% | ||||||||||
Management fees | 1,589,942 | $ 3,012,485 | $ 3,804,667 | ||||||||||
Management | |||||||||||||
Amounts due from related parties | |||||||||||||
Amounts due to related parties | 1,012,000 | 2,024,000 | |||||||||||
Customer and supplier | |||||||||||||
Amounts due from related parties | |||||||||||||
Total amounts due from related parties | 11,893 | 684 | |||||||||||
Amounts due to related parties | 3,195,923 | 4,831,288 | |||||||||||
Other | |||||||||||||
Amounts due from related parties | |||||||||||||
Total amounts due from related parties | 1,539,980 | 6,093,576 | |||||||||||
Amounts due to related parties | 5,726,765 | 500,898 | |||||||||||
Balances with customers, suppliers and affiliates who are related parties | |||||||||||||
Amount due from related parties | 1,539,980 | ||||||||||||
Management fees | 495,121 | 1,061,829 | 305,343 | ||||||||||
Shanghai Yueshun Real Estate Development Co., Ltd | |||||||||||||
Balances with customers, suppliers and affiliates who are related parties | |||||||||||||
Amount due from related parties | 280,750 | ||||||||||||
CRERAT | |||||||||||||
Customer and supplier | |||||||||||||
Revenue | 117,447 | 136,708 | 1,084,047 | ||||||||||
Balances with customers, suppliers and affiliates who are related parties | |||||||||||||
Amount due from related parties | $ 8,906 | 684 | |||||||||||
Equity interest (as a percent) | 51.00% | ||||||||||||
CRERAT | Selling, general and administrative expenses | |||||||||||||
Customer and supplier | |||||||||||||
Selling, general and administrative expenses recorded by the group | $ 80,594 | ||||||||||||
SINA | |||||||||||||
Customer and supplier | |||||||||||||
Revenue | 327,489 | 445,733 | |||||||||||
Intangible assets purchased | 1,473,498 | ||||||||||||
Balances with customers, suppliers and affiliates who are related parties | |||||||||||||
Amount due to related parties | (3,195,923) | (3,616,957) | |||||||||||
SINA | Selling, general and administrative expenses | |||||||||||||
Customer and supplier | |||||||||||||
Selling, general and administrative expenses recorded by the group | 31,742 | 4,911,660 | |||||||||||
SINA | Cost of revenue | |||||||||||||
Customer and supplier | |||||||||||||
Cost of revenue recorded by the group | 6,175,036 | 6,643,317 | 6,033,036 | ||||||||||
E-House China Real Estate Investment Fund I, L.P. | |||||||||||||
Balances with customers, suppliers and affiliates who are related parties | |||||||||||||
Amount due from related parties | 5,388,646 | ||||||||||||
Amount due to related parties | (190,333) | ||||||||||||
Amount invested by Mr. Xin Zhou, the Company's co-chairman and CEO, and Mr. Neil Nanpeng Shen, director of the company | $ 28,000,000 | ||||||||||||
Management fees | 5,386,412 | 63,567 | |||||||||||
Shanghai Guanfu Treasure-house Assets Management Co., Ltd | |||||||||||||
Customer and supplier | |||||||||||||
Revenue | 616,698 | ||||||||||||
Balances with customers, suppliers and affiliates who are related parties | |||||||||||||
Amount due from related parties | 2,987 | ||||||||||||
Amount due to related parties | (326,850) | ||||||||||||
Shanghai Guanfu Treasure-house Assets Management Co., Ltd | Selling, general and administrative expenses | |||||||||||||
Customer and supplier | |||||||||||||
Selling, general and administrative expenses recorded by the group | 79,356 | 409,305 | |||||||||||
Shanghai Jin Yue Real Estate Development Co., Ltd | |||||||||||||
Balances with customers, suppliers and affiliates who are related parties | |||||||||||||
Amount due to related parties | (368,259) | (390,801) | |||||||||||
Shouxin Center | |||||||||||||
Balances with customers, suppliers and affiliates who are related parties | |||||||||||||
Management fees | 58,832 | 120,858 | |||||||||||
E-House Real Estate Asset Management Co., Ltd. | |||||||||||||
Balances with customers, suppliers and affiliates who are related parties | |||||||||||||
Percentage of ownership interest in subsidiary | 51.00% | ||||||||||||
Shanghai Yidezeng Equity Investment Center | |||||||||||||
Balances with customers, suppliers and affiliates who are related parties | |||||||||||||
Percentage of ownership interest in subsidiary | 51.00% | 51.00% | |||||||||||
Shengyuan Center | |||||||||||||
Balances with customers, suppliers and affiliates who are related parties | |||||||||||||
Management fees | 85,367 | 1,410,790 | 1,549,416 | ||||||||||
Shengyuan Center | Xin Zhou | |||||||||||||
Balances with customers, suppliers and affiliates who are related parties | |||||||||||||
Equity interest (as a percent) | 8.00% | 8.00% | |||||||||||
Shengquan Center | |||||||||||||
Balances with customers, suppliers and affiliates who are related parties | |||||||||||||
Cash contribution made | ¥ 65,000,000 | $ 10,065,348 | |||||||||||
Equity interest (as a percent) | 13.00% | 13.00% | |||||||||||
Amount received as a return of capital | ¥ 18,258,244 | 2,897,802 | ¥ 10,881,747 | 1,781,581 | |||||||||
Management fees | $ 139,415 | 559,100 | $ 611,205 | ||||||||||
Shengquan Center | Xin Zhou | |||||||||||||
Balances with customers, suppliers and affiliates who are related parties | |||||||||||||
Equity interest (as a percent) | 2.40% | ||||||||||||
Xuyuechang Center | |||||||||||||
Balances with customers, suppliers and affiliates who are related parties | |||||||||||||
Amount due from related parties | 285,272 | ||||||||||||
Equity interest (as a percent) | 0.60% | ||||||||||||
Xuyuerong Center | |||||||||||||
Balances with customers, suppliers and affiliates who are related parties | |||||||||||||
Amount due from related parties | 23,461 | ||||||||||||
Equity interest (as a percent) | 0.50% | ||||||||||||
Xuyuezhen Center | |||||||||||||
Balances with customers, suppliers and affiliates who are related parties | |||||||||||||
Amount due from related parties | 115,447 | ||||||||||||
Equity interest (as a percent) | 0.50% | ||||||||||||
Hangzhou Kuyue | |||||||||||||
Customer and supplier | |||||||||||||
Intangible assets purchased | 1,778,188 | ||||||||||||
Balances with customers, suppliers and affiliates who are related parties | |||||||||||||
Amount due to related parties | $ (887,481) | ||||||||||||
Equity interest (as a percent) | 79.00% | 21.00% | |||||||||||
Hangzhou Kuyue | SINA | |||||||||||||
Balances with customers, suppliers and affiliates who are related parties | |||||||||||||
Cash contribution made | ¥ 33,000,000 | $ 5,393,025 | |||||||||||
Equity interest (as a percent) | 30.00% | ||||||||||||
Muxin Center | |||||||||||||
Balances with customers, suppliers and affiliates who are related parties | |||||||||||||
Amount due to related parties | $ (110,097) | ||||||||||||
Equity interest (as a percent) | 23.40% | ||||||||||||
Management fees | $ 123,998 | $ 191,770 | |||||||||||
Jupai | |||||||||||||
Balances with customers, suppliers and affiliates who are related parties | |||||||||||||
Amount due to related parties | (5,168,173) | ||||||||||||
Management fees | $ 682,462 |
Commitments and Contingencies82
Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating lease commitments | |||
Rental expenses | $ 31,761,708 | $ 28,223,879 | $ 23,033,850 |
Future minimum lease payments under non-cancelable operating lease agreements | |||
2,016 | 25,197,159 | ||
2,017 | 20,302,682 | ||
2,018 | 12,546,811 | ||
2,019 | 7,565,448 | ||
2,020 | 6,627,977 | ||
Then thereafter | 40,118,505 | ||
Total | $ 112,358,582 | ||
Minimum | |||
Operating lease commitments | |||
Remaining lease terms | 6 months | ||
Maximum | |||
Operating lease commitments | |||
Remaining lease terms | 240 months |
Commitments and Contingencies -
Commitments and Contingencies - Properties payment commitments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and contingencies | |||
Management Fees Revenue | $ 3,175,137 | $ 11,743,244 | $ 6,334,198 |
E-House China Real Estate Investment Fund I, L.P. | |||
Commitments and contingencies | |||
Management Fees Revenue | 0 | $ 5,386,412 | |
Properties commitment | |||
Properties payment commitments | |||
Payment commitment for properties to be held for sales | $ 2,556,211 | ||
Period within which the remaining commitment is payable | 1 year | ||
Two floors of office building | |||
Properties payment commitments | |||
Period within which the remaining commitment is payable | 1 year | ||
Payment commitment | $ 13,007,441 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent event - E-House - Merger Agreement - Merger Sub $ / shares in Units, $ in Millions | Apr. 15, 2016USD ($)$ / shares |
Shanghai Pudong Development Bank Co., Ltd | |
Subsequent Events | |
Maximum amount of loan facility | $ | $ 350 |
Ordinary Shares. | |
Subsequent Events | |
Share price | $ 6.85 |
ADS | |
Subsequent Events | |
Share price | $ 6.85 |