Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2020 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-38917 |
Entity Registrant Name | China Index Holdings Limited |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | Tower A, No. 20 Guogongzhuang Middle Street |
Entity Address, Address Line Two | Fengtai District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100070 |
Entity Address, Country | CN |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
ICFR Auditor Attestation Flag | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Central Index Key | 0001749797 |
Amendment Flag | false |
American depositary shares | |
Document Information [Line Items] | |
Title of 12(b) Security | American depositary shares (each representing one share) |
Trading Symbol | CIH |
Security Exchange Name | NASDAQ |
Class A ordinary shares | |
Document Information [Line Items] | |
Title of 12(b) Security | Class A ordinary shares, par value of US$0.001 per share* |
Security Exchange Name | NASDAQ |
No Trading Symbol Flag | true |
Entity Common Stock, Shares Outstanding | 66,411,428 |
Class B ordinary shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 23,636,706 |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | Tower A, No. 20 Guogongzhuang Middle Street |
Entity Address, Address Line Two | Fengtai District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100070 |
Entity Address, Country | CN |
Contact Personnel Name | Lili Chen |
Country Region | +86 |
City Area Code | 10 |
Local Phone Number | 5631 9106 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | ¥ 280,355 | ¥ 214,076 |
Short-term investments | 391,671 | 125,000 |
Accounts receivable, net of allowance for doubtful accounts | 29,680 | 24,243 |
Prepaid expenses and other current assets | 2,557 | 4,566 |
Amounts due from related party-current | 3,090 | 4,820 |
Total current assets | 707,353 | 372,705 |
Non-current assets: | ||
Property and equipment, net | 2,345 | 2,873 |
Right of use assets | 44,369 | 49,595 |
Other noncurrent assets | 3,270 | |
Total non-current assets | 49,984 | 52,468 |
Total assets | 757,337 | 425,173 |
Current liabilities: | ||
Accounts payable | 9,343 | 7,844 |
Amounts due to a related party (including amounts due to a related party of VIEs without recourse to the Company of RMB130 and nil as of December 31, 2019 and 2020, respectively) | 156 | 7,734 |
Deferred revenue | 224,141 | 203,531 |
Income taxes payable | 26,737 | 23,396 |
Accrued expenses and other liabilities (including accrued expenses and other liabilities of VIEs without recourse to the Company of RMB322 and RMB386 as of December 31, 2019 and 2020, respectively) | 637,693 | 84,250 |
Total current liabilities | 898,070 | 326,755 |
Non-current liabilities: | ||
Long-term lease liabilities | 27,427 | 37,679 |
Other non-current liabilities | 117,987 | 39,757 |
Total non-current liabilities | 145,414 | 77,436 |
Total liabilities | 1,043,484 | 404,191 |
Commitments and contingencies | ||
SHAREHOLDERS' EQUITY (DEFICIT) | ||
Treasury shares (6,712,694 and 6,064,202 shares as of December 31, 2019 and 2020, respectively) | (42) | (46) |
Capital deficit | (126,571) | (135,179) |
Retained earnings (accumulated deficits) | (162,728) | 155,324 |
Accumulated other comprehensive income | 1,232 | 220 |
Total shareholders' equity (deficit) attributable to China Index Holdings Limited | (287,446) | 20,982 |
Noncontrolling interests | 1,299 | |
Total shareholders' equity (deficit) | (286,147) | 20,982 |
Total liabilities and shareholders' equity (deficit) | 757,337 | 425,173 |
Class A ordinary shares | ||
SHAREHOLDERS' EQUITY (DEFICIT) | ||
Ordinary shares | 500 | 500 |
Class B ordinary shares | ||
SHAREHOLDERS' EQUITY (DEFICIT) | ||
Ordinary shares | ¥ 163 | ¥ 163 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019CNY (¥)shares |
Amounts due from a related party-non current, less allowance for doubtful accounts | ¥ | ¥ 547,069,000 | ¥ 0 |
Amounts due to a related party | ¥ | 156 | 7,734 |
Accrued expenses and other current liabilities | ¥ | ¥ 637,693 | ¥ 84,250 |
Ordinary shares, shares authorized | 1,000,000,000 | 1,000,000,000 |
Treasury shares | 6,064,202 | 6,712,694 |
Class A ordinary shares | ||
Ordinary shares, issued shares | 72,475,630 | 72,475,630 |
Ordinary shares, outstanding shares | 66,411,428 | 65,762,936 |
Number of shares issuable upon conversion of Class B ordinary share | 1 | 1 |
Class B ordinary shares | ||
Ordinary shares, issued shares | 23,636,706 | 23,636,706 |
Ordinary shares, outstanding shares | 23,636,706 | 23,636,706 |
VIEs | ||
Amounts due to a related party | ¥ | ¥ 0 | ¥ 130 |
Accrued expenses and other current liabilities | ¥ | ¥ 386 | ¥ 322 |
COMBINED AND CONSOLIDATED STATE
COMBINED AND CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | |||
Revenues (including revenues from related parties of RMB4,543, RMB43,678 and RMB11,006 for the years ended December 31, 2018, 2019 and 2020, respectively) | ¥ 635,910 | ¥ 579,650 | ¥ 421,024 |
Cost of revenues | |||
Cost of revenues (including cost of revenues resulting from transactions with related parties of RMB9,504, RMB11,082 and RMB8,981 for the years ended December 31, 2018, 2019 and 2020, respectively) | (105,528) | (110,492) | (87,733) |
Gross profit | 530,382 | 469,158 | 333,291 |
Operating expenses: | |||
Selling and marketing expenses (including selling and marketing expenses resulting from transactions with related parties of RMB4,320, RMB4,761 and RMB4,552 for the years ended December 31, 2018, 2019 and 2020, respectively) | (112,414) | (99,020) | (77,731) |
General and administrative expenses (including general and administrative expenses resulting from transactions with related parties of RMB10,524, RMB9,383 and RMB2,088 for the years ended December 31, 2018, 2019 and 2020, respectively) | (85,700) | (77,773) | (66,993) |
Bad debt expense (including bad debt expense resulting from transactions with a related party of nil, nil and RMB547,069 for the years ended December 31, 2018, 2019 and 2020, respectively) | (559,445) | (4,842) | |
Operating income (loss) | (227,177) | 287,523 | 188,567 |
Interest income | 1,625 | 2,200 | 664 |
Change in fair value of warrants | 1,359 | (1,152) | |
Investment income | 9,294 | 714 | 4,842 |
Government grants | 5,997 | 903 | 1,395 |
Income (loss) before income taxes | (208,902) | 290,188 | 195,468 |
Income tax expenses | (109,454) | (44,737) | (30,048) |
Net income (loss) | (318,356) | 245,451 | 165,420 |
Less: net loss attributable to noncontrolling interests | (304) | ||
Net income (loss) attributable to China Index Holdings Limited | (318,052) | 245,451 | 165,420 |
Other comprehensive income (loss) | |||
Foreign currency translation adjustments, net of nil income taxes | 1,012 | (7) | 49 |
Unrealized holding gains on short-term investments, net of RMB726, RMB107 and nil income taxes for the years ended December 31, 2018, 2019 and 2020, respectively | 607 | 4,116 | |
Less: Reclassification adjustment for gains on short-term investments realized in net income, net of RMB726, RMB 107 and nil income taxes for the years ended December 31, 2018, 2019 and 2020, respectively | (607) | (4,116) | |
Total comprehensive income (loss) | (317,344) | 245,444 | 165,469 |
Less: comprehensive loss attributable to noncontrolling interest holders | (304) | ||
Comprehensive income (loss) attributable to China Index Holdings Limited | ¥ (317,040) | ¥ 245,444 | ¥ 165,469 |
Earnings (loss) per share for Class A and Class B ordinary shares | |||
Basic | ¥ (3.54) | ¥ 2.74 | ¥ 1.85 |
Diluted | ¥ (3.54) | ¥ 2.74 | ¥ 1.85 |
Weighted average number of Class A and Class B ordinary shares and ordinary shares equivalents outstanding: | |||
Basic | 89,842,465 | 89,515,153 | 89,399,642 |
Diluted | 89,842,465 | 89,545,710 | 89,399,642 |
COMBINED AND CONSOLIDATED STA_2
COMBINED AND CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | ¥ 635,910 | ¥ 579,650 | ¥ 421,024 |
Cost of revenues | 105,528 | 110,492 | 87,733 |
Selling and marketing expenses | 112,414 | 99,020 | 77,731 |
General and administrative expenses | 85,700 | 77,773 | 66,993 |
Bad debt expenses | 559,445 | 4,842 | |
Tax on foreign currency translation adjustments | 0 | 0 | 0 |
Tax on unrealized holding gains on available-for-sale securities | 0 | 107 | 726 |
Tax on reclassification adjustment for gains on available-for-sale securities realized in net income | 0 | 107 | 726 |
Related parties | |||
Revenues | 11,006 | 43,678 | 4,543 |
Cost of revenues | 8,981 | 11,082 | 9,504 |
Selling and marketing expenses | 4,552 | 4,761 | 4,320 |
General and administrative expenses | 2,088 | 9,383 | 10,524 |
Bad debt expenses | ¥ 547,069 | ¥ 0 | ¥ 0 |
COMBINED AND CONSOLIDATED STA_3
COMBINED AND CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) - CNY (¥) ¥ in Thousands | Ordinary SharesClass A ordinary shares | Ordinary SharesClass B ordinary shares | Treasury Shares | Capital deficit | Retained earnings (accumulated deficit) | Parent Company Investment (Deficit) | Foreign currency translation adjustments | Unrealized gain on available-for- sale securities | Noncontrolling Interest | Total |
Beginning Balance at Dec. 31, 2017 | ¥ 25,820 | ¥ 178 | ¥ 25,998 | |||||||
Changes in STATEMENTS OF EQUITY (DEFICIT) | ||||||||||
Net income (loss) | 165,420 | 165,420 | ||||||||
Foreign currency translation adjustments, net of nil income taxes | 49 | 49 | ||||||||
Unrealized holding gains on short-term investments, net of income taxes | ¥ 4,116 | 4,116 | ||||||||
Reclassification adjustment for gains on short-term investments realized in net income, net of income taxes | (4,116) | (4,116) | ||||||||
Share-based compensation | 6,808 | 6,808 | ||||||||
Net transfers to Parent | (270,570) | (270,570) | ||||||||
Ending Balance at Dec. 31, 2018 | (72,522) | 227 | (72,295) | |||||||
Changes in STATEMENTS OF EQUITY (DEFICIT) | ||||||||||
Net income (loss) | ¥ 155,324 | 90,127 | 245,451 | |||||||
Foreign currency translation adjustments, net of nil income taxes | (7) | (7) | ||||||||
Unrealized holding gains on short-term investments, net of income taxes | 607 | 607 | ||||||||
Reclassification adjustment for gains on short-term investments realized in net income, net of income taxes | ¥ (607) | (607) | ||||||||
Share-based compensation | ¥ 4,340 | 3,894 | 8,234 | |||||||
Net transfers to Parent | (160,401) | (160,401) | ||||||||
Capitalization at separation | ¥ 500 | ¥ 163 | ¥ (46) | (139,519) | ¥ 138,902 | |||||
Capitalization at separation (in shares) | 65,762,936 | 23,636,706 | ||||||||
Ending Balance at Dec. 31, 2019 | ¥ 500 | ¥ 163 | (46) | (135,179) | 155,324 | 220 | 20,982 | |||
Ending Balance (in shares) at Dec. 31, 2019 | 65,762,936 | 23,636,706 | ||||||||
Changes in STATEMENTS OF EQUITY (DEFICIT) | ||||||||||
Net income (loss) | (318,052) | ¥ (304) | (318,356) | |||||||
Foreign currency translation adjustments, net of nil income taxes | 1,012 | 1,012 | ||||||||
Share-based compensation | 8,612 | 8,612 | ||||||||
Noncontrolling interests acquired in business acquisitions | 1,603 | 1,603 | ||||||||
Settlement of vested restricted shares using treasury shares | 4 | (4) | ||||||||
Settlement of vested restricted shares using treasury shares (in shares) | 648,492 | |||||||||
Ending Balance at Dec. 31, 2020 | ¥ 500 | ¥ 163 | ¥ (42) | ¥ (126,571) | ¥ (162,728) | ¥ 1,232 | ¥ 1,299 | ¥ (286,147) | ||
Ending Balance (in shares) at Dec. 31, 2020 | 66,411,428 | 23,636,706 |
COMBINED AND CONSOLIDATED STA_4
COMBINED AND CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
COMBINED AND CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) | |||
Tax on foreign currency translation adjustments | ¥ 0 | ¥ 0 | ¥ 0 |
Tax on unrealized holding gains on available-for-sale securities | 0 | 107 | 726 |
Tax on reclassification adjustment for gains on available-for-sale securities realized in net income | ¥ 0 | ¥ 107 | ¥ 726 |
COMBINED AND CONSOLIDATED STA_5
COMBINED AND CONSOLIDATED STATEMENTS OF CASH FLOWS - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | ¥ (318,356) | ¥ 245,451 | ¥ 165,420 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Share-based compensation expense | 8,612 | 8,234 | 6,808 |
Depreciation | 1,196 | 1,119 | 1,188 |
Reduction in the carrying amount of the right-of-use assets | 5,226 | 4,984 | |
Allowance for doubtful account | 12,376 | 4,842 | |
Allowance for amounts due from a related party-non current | 547,069 | ||
Investment income | (9,294) | (714) | (4,842) |
Deferred income tax expense | 60,516 | ||
Change in fair value of warrants | (1,359) | 1,152 | |
(Gain) loss on disposal of property and equipment | (5) | 2 | (6) |
Changes in operating assets and liabilities, net of effects of acquisition and disposal of subsidiaries: | |||
Accounts receivable | (17,744) | (13,551) | (7,239) |
Prepayments to and amounts due from related parties | 4,820 | (4,820) | (1,970) |
Prepaid expenses and other current assets | (1,546) | (3,871) | (321) |
Accounts payable | 1,499 | 2,660 | 1,494 |
Amounts due to a related party | (7,282) | 7,028 | 680 |
Deferred revenue | 20,623 | 60,272 | 13,622 |
Income tax payable | 3,341 | 8,916 | (8,128) |
Accrued expenses and other liabilities | 557,590 | 4,384 | 20,329 |
Long-term lease liabilities | (10,252) | (14,930) | |
Amounts due from a related party-non current | (547,069) | ||
Other non-current liabilities | 17,583 | 22,881 | 15,484 |
Net cash provided by operating activities | 327,544 | 334,039 | 202,519 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of short-term investments | (4,084,440) | (340,000) | (1,300,000) |
Proceeds from sales of short-term investments | 3,827,063 | 215,714 | 1,304,842 |
Purchase of property and equipment | (585) | (63) | (65) |
Proceeds from disposal of property and equipment | 5 | 1 | 26 |
Proceeds from disposal of subsidiaries | 4,325 | ||
Cash disposed for sales of subsidiaries | (1,035) | ||
Advance to a noncontrolling interest holder | (3,090) | ||
Cash acquired from business acquisition | 7 | ||
Net cash provided by (used in) investing activities | (257,750) | (124,348) | 4,803 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Repayment of cash advances from related parties | (3,815) | ||
Net transfers to the Parent Company | (160,194) | (270,570) | |
Net cash used in financing activities | (160,194) | (274,385) | |
Effect of foreign currency exchange rate changes on cash and cash equivalents | (3,515) | 377 | 77 |
Net (decrease) increase in cash and cash equivalents | 66,279 | 49,874 | (66,986) |
Cash and cash equivalents as of the beginning of the year | 214,076 | 164,202 | 231,188 |
Cash and cash equivalents as of the end of the year | 280,355 | 214,076 | 164,202 |
Supplemental disclosure of cash flow information: | |||
Income tax paid | 25,645 | 12,940 | ¥ 22,692 |
Issuance of warrants in connection with the separation from Fang | ¥ 207 | ||
Net assets and noncontrolling interests acquired in business acquisition | ¥ 1,603 |
Description of principal activi
Description of principal activities and organization | 12 Months Ended |
Dec. 31, 2020 | |
Description of principal activities and organization | |
Description of principal activities and organization | 1. Description of principal activities and organization (a) Description of Principal Activities China Index Holdings Limited (“CIH” or the “Company”), formerly known as Selovo Investments Limited, is an exempted company with limited liability and was re-domiciled from the British Virgin Islands to the Cayman Islands on July 26, 2018. The Company separated from Fang Holdings Limited (“Fang” or the “Parent”) on June 11, 2019 (the “separation”), becoming an independent publicly traded company as a result of a pro rata distribution (the “distribution”) of all outstanding shares of CIH Class A ordinary shares to shareholders of Fang. On June 11, 2019, Fang’s shareholders of record received one share of CIH Class A ordinary shares for every one share of Fang ordinary shares held as of the record date. CIH ordinary shares began trading under the ticker symbol “CIH” on the NASDAQ on June 12, 2019. The Company, through its wholly-owned subsidiaries and consolidated variable interest entities (“VIEs”), offers real estate data and analytics tools to customers. The Company also offers customers, primarily real estate developers, one-stop marketing solutions to promote their brands and enable customers to post and market their commercial properties and lands through the Company’s online marketing portals. All of the Company’s operations are located in the People’s Republic of China (“PRC”) with nearly all of its customers located in the PRC. (b) Organization In order to continue to operate its business after the separation of the Company from Fang in compliance with PRC regulatory requirements which restrict foreign ownership of value added telecommunications, CIH, through Beijing Zhong Zhi Shi Zheng Information Technology Co., Ltd (“WFOE”), which is a PRC operating entity of the Company, entered into a series of contractual agreements and arrangements (“Zhong Zhi Hong Yuan VIE Agreements”) with (1) Zhong Zhi Hong Yuan Data Information Technology Co., Ltd (“Zhong Zhi Hong Yuan” or the “VIE”), a PRC legal entity, and (2) the shareholders of Zhong Zhi Hong Yuan, including Mr. Vincent Tianquan Mo, chairman of the board of directors and the controlling shareholder of the Company, and Ms. Yu Huang, director, chief executive officer and president of the Company. Zhong Zhi Hong Yuan was established by Mr. Mo and Ms. Huang on June 11, 2018. The registered capital of Zhong Zhi Hong Yuan is RMB1.5 million. Zhong Zhi Hong Yuan obtained a license of telecommunications and information services, or ICP license on July 2, 2019, from the government in order to carry out commercial Internet content provision operations in China. All of the equity interests of Zhong Zhi Hong Yuan are legally held by Mr. Mo and Ms. Huang. Both individuals are nominee equity holders of Zhong Zhi Hong Yuan and holding their equity interests on behalf of CIH. Through the Zhong Zhi Hong Yuan VIE Agreements, the nominee equity holders of Zhong Zhi Hong Yuan have granted all their legal rights including voting rights and disposition rights of their equity interests in Zhong Zhi Hong Yuan to CIH. The nominee equity holders of Zhong Zhi Hong Yuan do not participate significantly in income and loss and do not have the power to direct the activities of Zhong Zhi Hong Yuan that most significantly impact its economic performance. Accordingly, Zhong Zhi Hong Yuan is considered a VIE. CIH has a controlling financial interest in the VIE because CIH has (i) the power to direct activities of the VIE that most significantly impact the economic performance of the VIE; and (ii) the obligation to absorb the expected losses and the right to receive expected residual return of the VIE that could potentially be significant to the VIE. Thus, CIH is the primary beneficiary of the VIE. Under the terms of the Zhong Zhi Hong Yuan VIE Agreements, CIH has (i) the right to receive economic benefits that could potentially be significant to the VIE in the form of service fees under the exclusive technical consultancy and services agreement; (ii) the right to receive all dividends declared by the VIE and the right to all undistributed earnings of the VIE; (iii) the right to receive the residual benefits of the VIE through its exclusive option to acquire 100% of the equity interests in the VIE, to the extent permitted under PRC law. Accordingly, the financial statements of the VIE are consolidated in the Company’s combined and consolidated financial statements. 1. Description of principal activities and organization (continued) Under the terms of Zhong Zhi Hong Yuan VIE Agreements, the VIE’s nominee equity holders have no rights to the net assets nor have the obligations to fund the deficit, and such rights and obligations have been vested to CIH. All of the equity (net assets) and net loss of the VIE are attributed to CIH. The key terms of Zhong Zhi Hong Yuan VIE Agreements are as follows: Equity Pledge Agreement Pursuant to the equity pledge agreement, each nominee equity holder of the VIE has pledged all of his or her equity interest in the VIE to guarantee the VIE’s performance under the exclusive technical consultancy and services agreement. If the VIE or its nominee equity holder breach their contractual obligations under this agreement, WFOE, as pledgee, will be entitled to certain rights regarding the pledged interests, including receiving proceeds from the auction or sale of all or part of the pledged interests of the VIE in accordance with the law. Each nominee equity holder of the VIE agrees that, during the term of the equity pledge agreement, he or she will not dispose of the pledged equity interests or create or allow any encumbrance on the pledged equity interests without the prior written consent of WFOE. WFOE also has the right to receive dividends of the VIE from its nominee equity holder. The equity pledge agreements remain effective for 10 years commencing from June 11, 2018 and can be extended at the sole discretion of WFOE. The pledge was registered with the relevant local administration for industry and commerce in July 2018 and will remain binding until the VIE and their nominee equity holders discharge all their obligations under the contractual arrangements. The registration of the equity pledge enables the WFOE to enforce the equity pledge against third parties who acquire the equity interests of the VIE in good faith. Shareholders’ Proxy Agreement Under the shareholders’ proxy agreement, the nominee equity holders agreed to irrevocably entrust WFOE to exercise their rights as the registered equity holders of the VIE to attend shareholders’ meetings, cast votes on all matters of the VIE requiring shareholder approval. WFOE may assign part or all of these proxy rights to its designated employees. WFOE will be indemnified for any loss under this agreement. This agreement will also be binding upon successors of the parties or transferees of the parties’ equity interests. This agreement will remain in effect until terminated upon written consent by all the parties to the agreement or by their successors. Exclusive Technical Consultancy and Services Agreement Under the exclusive technical consultancy and services agreement among WFOE and the VIE, WFOE has the exclusive right to provide the VIE with technical services relating to its business. In exchange for these services, the VIE has agreed to make monthly payments to the service provider for such services at an amount determined by the time consumed, the seniority of employees of WFOE providing services to the VIE and amounts agreed by WFOE and the VIE for services provided. Without WFOE’s prior written consent, the VIE agrees not to accept the same or any similar services provided by any third party. WFOE own the intellectual property rights arising out of the performance of this agreement. The agreement has an original term of 10 years commencing from June 11, 2018, which can be extended by WFOE at its sole discretion, or can be terminated by WFOE upon 30 days’ advance notice. Operating Agreement Under the operating agreement, WFOE has undertaken to enter into guarantee contracts with third parties, as required by third parties, to guarantee the performance of the VIE under its business contracts with third parties. In return, the VIE is required to pledge its accounts receivable and mortgage all of its assets as counter security to WFOE. Each of the VIE and the nominee equity holders has agreed not to enter into any transaction that would substantially affect the assets, rights, obligations or operations of the VIE without the prior written consent of WFOE. The agreement has an original term of 10 years which can be extended prior to the expiration with written confirmation from WFOE, or can be terminated by WFOE upon 30 days’ advance notice. 1. Description of principal activities and organization (continued) Exclusive Call Option Agreement Pursuant to the exclusive call option agreements, each equity holder of the VIE has irrevocably granted CIH and WFOE an exclusive option to purchase, or have its designated person or persons to purchase, at its discretion, to the extent permitted under PRC law, all or part of the equity interests in the VIE. The purchase price shall be the minimum price permitted under PRC law. Without CIH and WFOE’s prior written consent, the VIE shall not amend its articles of association, increase or decrease the registered capital, sell or otherwise dispose of its assets or beneficial interest, create or allow any encumbrance on its assets or other beneficial interests, provide any loans to any third parties, enter into any material contract with a value of more than RMB100,000 (except those contracts entered into in the ordinary course of business), conduct mergers or acquisitions or make any investments, or distribute dividends to the shareholders. Each shareholder of the VIE has agreed that, without CIH and WFOE’s prior written consent, he or she will not dispose his or her equity interests in the VIE or create or allow any encumbrance on their equity interests. Moreover, without CIH and WFOE’s prior written consent, no dividend will be distributed to the VIE’s equity holders, and if any of the equity holders receives any profit, interest, dividend or proceeds of share transfer or liquidation, the equity holder must give such profit, interest, dividend and proceeds to CIH and WFOE or their designated person(s). The agreement has an original term of 10 years commencing from June 11, 2018 which can be extended at the sole discretion of CIH and WFOE. Loan Agreement Pursuant to the loan agreement among WFOE and the equity holders of the VIE, WFOE made loans in an aggregate amount of RMB1.5 million to the equity holders of the VIE solely for making contributions to the business development of the VIE. Pursuant to the loan agreement, the equity holders of the VIE shall repay the loan by transferring of all his or her equity interest in the VIE to WFOE or their designated person(s). The equity holders of the VIE must pay all of the proceeds from sale of such equity interests to WFOE. The loan must be repaid immediately under certain circumstances, including, among others, if a foreign investor is permitted to operate the value added telecommunication service business and CIH and WFOE elect to exercise its exclusive equity purchase option. The loan agreement has an original term of 10 years commencing from June 11, 2018 which will be automatically extended until WFOE agree and is permitted to directly hold the equity interest of the VIE under applicable laws of the PRC. The equity holders of the VIE shall not repay such loans in advance unless it is otherwise provided in this agreement. In addition, (i) on December 9, 2019, WOFE entered into a series of contractual agreements and arrangements (“Zhong Zhi Academy Agreements”) with (1) Beijing Zhong Zhi Information Technology Academy (“Beijing Zhong Zhi Academy”), a PRC legal entity, in which WOFE holds 44% equity interest, and (2) the nominal individual shareholder of Beijing Zhong Zhi Academy, who holds 56% of Beijing Zhong Zhi Academy’s equity interest. (ii) On August 30, 2020, WOFE entered into a series of contractual agreements and arrangements (“Shouzheng Agreements”) with (1) Shouzheng Credit Rating Co., Ltd.(“Shouzheng”), a PRC legal entity, and (2) the shareholder of Shouzheng, Jiatianxia Credit Management Co., Ltd. (“Jiatianxia Credit”), an entity under the control of Mr. Vincent Tianquan Mo, which holds 67% of Shouzheng’s equity interest. All of the terms of Zhong Zhi Academy Agreements and Shouzheng Agreements are substantially similar to Zhong Zhi Hong Yuan VIE Agreements described above (collectively referred to as “VIE Agreements”). The Company relies on the VIE Agreements to operate and control the VIEs. All of the VIE Agreements are governed by PRC laws and provide for the resolution of disputes through arbitration in China. Accordingly, these contracts would be interpreted in accordance with PRC laws and any disputes would be resolved in accordance with PRC legal procedures. The legal system in the PRC is not as developed as in some other jurisdictions, such as the United States. As a result, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements. In the event that the Company is unable to enforce these contractual arrangements, or if the Company suffers significant delay or other obstacles in the process of enforcing these contractual arrangements, it may not be able to exert effective control over the VIEs and relevant rights and licenses held by it which the Company requires in order to operate its business, and its ability to conduct its business may be negatively affected. 1. Description of principal activities and organization (continued) In the opinion of management, based on the legal opinion obtained from the Company’s PRC legal counsel, the above contractual arrangements are legally binding and enforceable and do not violate current PRC laws and regulations. However, there are uncertainties regarding the interpretation and application of existing and future PRC laws and regulations. Accordingly, the Company cannot be assured that PRC regulatory authorities will not ultimately take a contrary view to its opinion. If the current ownership structure of the Company and the VIE Arrangements are found to be in violation of any existing or future PRC laws and regulations, the PRC government could: (a) revoking the business and operating licenses of the Company; (b) levying fines on the Company; (c) confiscating any of the income that they deem to be obtained through illegal operations; (d) shutting down the Company’s services; (e) discontinuing or restricting the Company’s operations in China; (f) imposing conditions or requirements with which the Company may not be able to comply; (g) requiring the Company to change its corporate structure and contractual arrangements; (h) restricting or prohibiting the use of the proceeds from overseas offering to finance the Company’s VIEs’ business and operations; and (i) taking other regulatory or enforcement actions that could be harmful to the Company’s business. If the imposition of any of these penalties or requirement to restructure the Company’s corporate structure causes it to lose the rights to direct the activities of the VIEs or the Company’s right to receive its economic benefits, the Company would no longer be able to consolidate the financial results of the VIEs in its combined and consolidated financial statements. In the opinion of management, the likelihood of deconsolidation of the VIEs is remote based on current facts and circumstances. The Company’s involvement with VIEs under the VIE Agreements affected the Company’s combined and consolidated financial position, results of operations and cash flows as indicated below. All intercompany transactions and balances with the Company and its wholly-owned subsidiaries have been eliminated upon consolidation. The assets and liabilities of the VIEs that were included in the accompanying consolidated financial statements as of December 31, 2019 and 2020 were as follows: As of December 31, 2019 2020 Total assets 1,113 1,957 Total liabilities 452 386 1. Description of principal activities and organization (continued) The financial performance and cash flows of the VIEs that were included in the accompanying combined and consolidated financial statements for the years ended December 31, 2018, 2019 and 2020 were as follows: For the Year Ended December 31, 2018 2019 2020 Revenues — 26 — Net loss (134) (705) (1,755) Net cash used in operating activities (71) (318) (1,362) Net cash provided by financing activities* 1,500 — 1,910 * Net cash provided by financing activity represents capital injection in the VIEs by nominee equity holders, which was eliminated upon consolidation. In accordance with the VIE Agreements, CIH has the power to direct the activities of the VIEs. Therefore, the Company considers that there are no assets in the VIEs that can be used only to settle obligations of the VIEs, except for the registered capital of the VIEs in the amount of RMB1,500 and RMB6,500 as of December 31, 2019 and 2020. None of the assets of the VIEs have been pledged or collateralized. The creditors of the VIEs do not have recourse to the general credit of CIH and WFOE. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2020 | |
Significant accounting policies | |
Significant accounting policies | 2. Significant accounting policies (a) Basis of Presentation and Principles of Consolidation The accompanying combined and consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). In connection with the Company’s separation from Fang, the direct and indirect equity interests of all of the Company’s operating subsidiaries and intermediate holding companies were transferred from Fang to the Company, when the Company was still one of Fang’s subsidiaries, through a series of transactions, which were completed in May 2019. As a result of these transactions, the Company assumed all of the business and operations of real estate information, analytics and marketplace services business from Fang by acquiring the relevant portion of the businesses historically not conducted by the Company. The Company separated from Fang on June 11, 2019, becoming an independent publicly traded company as a result of a pro rata distribution of all outstanding shares of CIH ordinary shares to shareholders of Fang. The financial statements presented herein represent (i) prior to June 11, 2019, the combined financial statements of Fang’s real estate information, analytics and marketplace services business when the Company was a wholly owned subsidiary of Fang and (ii) subsequent to June 11, 2019, the consolidated financial statements of the Company as a separate publicly traded company following its separation from Fang. The combined financial statements have been prepared on a stand-alone basis and are derived from Fang’s consolidated financial statements and underlying accounting records. The combined financial statements include all revenues, costs, assets and liabilities directly attributable to the Company either through specific identification or allocation. The consolidated financial statements include the financial statements of the Company, its wholly-owned subsidiaries and the VIEs. All intercompany transactions and balances among the Company, its wholly-owned subsidiaries and the VIEs have been eliminated upon consolidation. 2. Significant accounting policies (continued) Allocation of Expenses Prior to the separation, Fang has historically performed centralized functions on behalf of the Company. Accordingly, certain Fang’s costs have been allocated to the Company and reflected as expenses in the combined statements of comprehensive income (loss) for the year ended December 31, 2018 and the period between January 1, 2019 and June 11, 2019. Expense allocation primarily relate to centralized functions, including finance, accounting, treasury, tax, legal, internal audit and human resources functions. In addition, expense allocations include, among other costs, IT maintenance and professional fees. All of the allocations of costs are deemed to have been incurred and settled through parent company deficit in the period when the costs were recorded. The allocations of costs were based on the number of staff of the Company relative to Fang’s total number of staff, or the Company’s revenues relative to Fang’s total revenues, where appropriate. Management considers the allocation methodologies used to be reasonable and appropriate reflections of the historical parent expenses attributable to the Company. The expenses reflected in the combined statement of comprehensive income (loss) may not be indicative of the actual expenses that would have been incurred during the periods presented if the Company had operated as a separate, stand-alone entity. It is not practicable to estimate actual costs that would have been incurred had the Company been a stand-alone company during the periods presented. Following the separation from Fang, the Company performs these functions using its own resources or purchased services. The following table sets forth cost of revenues, selling and marketing expenses, and general and administrative expenses, allocated from Fang for the year ended December 31, 2018 and the period between January 1, 2019 and June 11, 2019: For the period between For the Year Ended January 1 and December 31, June 11, 2018 2019 Cost of revenues 4,622 2,309 Selling and marketing expenses 441 305 General and administrative expenses 4,856 1,723 Total 9,919 4,337 Cash Management and Treasury The Company funds its operations through cash generated from operating activities. Prior to June 11, 2019, excess cash has historically been repatriated to Fang through intercompany advances. Transfers of cash both to and from Fang are included within parent company investment (deficit) on the combined statement of equity (deficit). Fang has issued debt for general corporate purposes but in no case has any such debt been guaranteed or assumed by the Company or otherwise secured by the assets of the Company. As Fang’s debt and related interest is not directly attributable to the Company, no such amounts have been allocated to the combined financial statements before the separation. Parent Company Deficit Parent company deficit in the combined statement of equity (deficit) represents Fang’s historical investment in the Company, the Company’s accumulated net earnings after income taxes, and the net effect of transactions with and allocations from Fang prior to June 11, 2019. The combined statement of equity (deficit) include net cash transfers to and from Fang and the Company. The total net effect of the settlement of these transactions is reflected in financing activities in the accompanying combined and consolidated statements of cash flows. Upon the separation, parent company deficit formed the Company’s ordinary shares, treasury shares and capital deficit. 2. Significant accounting policies (continued) (b) Use of Estimates The preparation of the combined and consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the balance sheet dates and the reported amounts of expenses during the reporting periods. Significant items subject to such estimates and assumptions include the collectability of accounts receivable and amounts due from a related party, estimated stand-alone selling prices of performance obligations, the accruals for tax uncertainties and allocation of expenses, fair value of the warrants and share-based compensation awards, and the incremental borrowing rate used in calculating operating lease liabilities. Changes in facts and circumstances may result in revised estimates. Actual results could materially differ from those estimates. (c) Foreign Currency The functional currency of the Company and its subsidiaries incorporated at Hong Kong Special Administrative Region (“Hong Kong SAR”), British Virgin Islands (“BVI”) and the United States of America (the “USA”), is United States Dollars (“US$”), whereas the functional currency of the Company’s other PRC subsidiaries and the VIEs is Chinese Renminbi (“RMB”). Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rate at the balance sheet date. The resulting exchange differences are recorded in general and administrative expenses in the combined and consolidated statements of comprehensive income (loss). The Company uses RMB as its reporting currency. Assets and liabilities of entities with functional currencies other than RMB are translated into RMB using the exchange rate on the balance sheet date. Revenues and expenses are translated into RMB at average rates prevailing during the reporting period. The resulting foreign currency translation adjustment are recorded in accumulated other comprehensive income within equity. Since the RMB is not a fully convertible currency, all foreign exchange transactions involving RMB must take place either through the People’s Bank of China (the “PBOC”) or other institutions authorized to buy and sell foreign exchange. The exchange rates adopted for the foreign exchange transactions are the rates of exchange quoted by the PBOC. (d) Cash and Cash Equivalents Cash and cash equivalents represent cash on hand, demand deposits and highly liquid investments placed with banks, which have original maturities of three months or less at the date of purchase and are readily convertible to known amounts of cash. Cash and cash equivalents maintained at banks consist of the following: As of December 31, 2019 2020 RMB denominated bank deposits with financial institutions in the PRC 182,180 225,323 RMB denominated bank deposits with financial institutions in Hong Kong SAR 1,212 1,692 US dollar denominated bank deposits with a financial institution in Hong Kong SAR 1,904 2,363 HK dollar denominated bank deposits with a financial institution in Hong Kong SAR 264 357 USD denominated bank deposits with a financial institution in BVI 28,494 58 USD denominated bank deposits with a financial institution in Cayman Islands — 3,437 USD denominated bank deposits with a financial institution in the USA — 47,105 2. Significant accounting policies (continued) (e) Short-term Investments The Company’s short-term investments represent investments in wealth management products which have the original maturities of less than twelve months. These wealth management products are managed by financial institutions in the PRC with variable interest rates referenced to performance of underlying assets. During the years ended December 31, 2018 and 2019, the Company invested RMB1,300,000 and RMB340,000 in financial products managed by a financial institution in the PRC, which were classified as available-for-sale securities and recorded at fair value. The terms of the financial products range between 7 days and 83 days . Unrealized holding gains, net of the related income tax effect, on available-for-sale securities are excluded from earnings and reported as a separate component of accumulated other comprehensive income until realized. Realized gains and losses from the sale of available-for-sale securities are determined on a specific-identification basis. The Company recorded a gain of RMB4,842 and RMB714 on the financial products, which was included in investment income in the combined and consolidated statements of comprehensive income (loss) for the years ended December 31, 2018 and 2019, respectively. For the short-term investments of RMB4,084,440 purchased during the year ended December 31, 2020, the Company elects the fair value option at the date of initial recognition in accordance with ASC 825. Changes in the fair value of these investments in the amount of RMB9,294 for the year ended December 31, 2020 are reflected on the consolidated statement of comprehensive income (loss) as “Investment income”. Fair value is estimated based on quoted prices provided by financial institutions at the end of each reporting period. (f) Property and Equipment, Net Property and equipment are stated at cost less depreciation and any impairment. Property and equipment are depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Category Estimated Useful Life Electronic equipment 3 to 5 years Office furniture 5 years Leasehold improvement Shorter of the lease term or the estimated useful life of the assets Ordinary maintenance and repairs are charged to expenses as incurred, while replacements and betterments are capitalized. When items are retired or otherwise disposed of, income is charged or credited for the difference between net book value of the item disposed and proceeds realized thereon. (g) Operating Leases The Company leases premises for offices under non-cancellable operating leases. There is no capital improvement funding, lease concessions, escalated rent provisions or contingent rent in the lease agreements. The Company has no legal or contractual asset retirement obligations at the end of the lease term. The Company early adopted Accounting Standard Codification (“ASC”) Topic 842 Leases Prior to the adoption of ASC Topic 842, operating leases were not recognized on the balance sheet of the Company, but payments made under operating lease are charged to the combined and consolidated statements of comprehensive income (loss) on a straight-line basis over the term of underlying lease. 2. Significant accounting policies (continued) Upon adoption of ASC Topic 842, Right of use (“ROU”) assets and lease liabilities are recognized upon lease commencement for operating leases based on the present value of lease payments over the lease term. As the rate implicit in the lease cannot be readily determined, the Company uses its incremental borrowing rate at the lease commencement date in determining the imputed interest and present value of lease payments. The incremental borrowing rate was determined based on the rate of interest that the Company would have to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The incremental borrowing rate is primarily influenced by the risk-free interest rate of China, the Company’s credit rating and lease term. The Company has elected not to recognize ROU assets or lease liabilities for leases with an initial term of 12 months or less and recognizes a single lease cost on a straight-line basis over the remaining lease term for the operating leases. (h) Impairment of Long-lived Assets Long-lived assets, including property and equipment and right of use assets are evaluated for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. Recoverability of a long-lived asset or asset group to be held and used is measured by a comparison of the carrying amount of an asset or asset group to the estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying value of an asset or asset group exceeds its estimated undiscounted future cash flows, an impairment loss is recognized by the amount that the carrying value exceeds the estimated fair value of the asset or asset group. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. Assets to be disposed are reported at the lower of carrying amount or fair value less costs to sell, and are no longer depreciated. No impairment of long-lived assets was recognized for any of the years presented. (i) Revenue Recognition The Company derives revenues by (i) providing information and analytics services, including data services and analytics services and (ii) providing marketplace services, including promotion services and listing services. The Company recognizes revenues upon the satisfaction of its performance obligation (upon transfer of control of promised goods or services to customers) in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those goods or services, excluding amounts collected on behalf of third parties (for example, value-added taxes). For each performance obligation satisfied over time, the Company recognizes revenue over time by measuring the progress toward complete satisfaction of that performance obligation. If the Company does not satisfy a performance obligation over time, the performance obligation is satisfied at a point in time. The Company’s contracts with customers often include promises to transfer multiple products and services. For these contracts, the Company accounts for individual performance obligations separately if they are capable of being distinct and distinct within the context of the contract. Determining whether products and services are considered distinct performance obligations may require significant judgment. Judgment is also required to determine the stand-alone selling price (“SSP”) for each distinct performance obligation. In instances where SSP is not directly observable, such as when the Company does not sell the product or service separately, the Company determines the SSP using information that may include market conditions and other observable inputs. 2. Significant accounting policies (continued) Information and Analytics Services Data Services The Company derives revenues by providing access and analytics tools, including appraisal and rating, and land modules, based on its proprietary database of commercial real estate information, typically through a fixed monthly fee for its subscription-based services. The Company determines that the customer simultaneously receives and consumes benefits provided by the Company’s performance as the Company performs during the term of the contract and the earning process is straight-line. Revenues from subscription-based services are recognized on a straight-line basis over the subscription period. Analytics Services The Company derives revenues by providing customized research reports to customers. There are no contractual customer acceptance provisions. Revenues from customized research reports are recognized when the Company delivers the reports to customers, which is when the control over the report has been transferred to customers. The Company provides data monitoring and survey services over a period of time, generally less than one year. Revenues are recognized on a straight-line basis over the term of the agreement since the customer simultaneously receives and consumes benefits provided by the Company’s performance as the Company performs during the term of the contract and the earning process is straight-line. Marketplace Services Promotion Services The Company offers promotion services, consisting of a number of online and offline themed campaigns, including industry forums, periodic updates and online promotions to its customers to promote their brands. The promotion services contain a number of defined but not identical or similar activities to be performed over the period of one year. These activities are to fulfill the promotion service and are not separate promises in the contract. The Company determines that each day of the promotion service is distinct because the customer can benefit from each increment of service on its own (that is, it is capable of being distinct) and each increment of service is separately identifiable because no day of service significantly modifies or customizes another and no day of service significantly affects either the Company’s ability to fulfill another day of service or the benefit to the customer of another day of service. The Company determines that it is providing a series of distinct goods or services because the services provided each day are substantially the same, the customer simultaneously receives and consumes the benefits provided by the Company as the Company performs, and the same measure of progress would be used to measure the Company’s progress toward satisfying its promise to provide the promotion services. Revenues of promotion services are recognized on a straight-line basis over the period of one year. Listing Services Listing services comprise of commercial property listing and listing agent services for commercial properties. Commercial listing services entitle customers to post and make changes to information for commercial properties on the website and mobile apps for a specified period of time, which typically range from one 2. Significant accounting policies (continued) Prior to January 1, 2020, the Company also acted as an agent on behalf of Fang on listing services for commercial properties. The Company determined that it acted as an agent for the listing service because it did not obtain control of the listing service from Fang before the service was transferred to the customer. Revenues were recognized when Fang and its customers entered into a sales contract and reported on net basis. (j) Contract Balances The Company bills its customers based upon contractual schedules, which normally is based on the passage of time. The timing of revenue recognition, billings and cash collections result in accounts receivable and contract liabilities (i.e. deferred revenue). Accounts receivable are recognized in the period when the Company has transferred products or provided services to its customers and when its right to consideration is unconditional. Amounts collected on accounts receivable are included in net cash provided by operating activities in the combined and consolidated statements of cash flows. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and customers’ financial condition, the amount of receivables in dispute, and the current receivables aging and current payment patterns. The Company reviews its allowance for doubtful accounts on a customer-by-customer basis. Accounts receivable are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Deferred revenue (a contract liability) is recognized when the Company has an obligation to transfer goods or services to a customer for which the Company has received consideration from the customer, or for which an amount of consideration is due from the customer. (k) Advertising Expenses Advertising costs are expensed as incurred and included in selling and marketing expenses in the combined and consolidated statements of comprehensive income (loss). For the years ended December 31, 2018, 2019 and 2020, advertising expenses were RMB805, RMB5,270 and RMB9,281, respectively. (l) Research and Development Expenses Research and development expenses are expensed as incurred and recorded in general and administrative expenses in the Company’s combined and consolidated statements of comprehensive income (loss). Research and development expenses were RMB20,761, RMB32,032 and RMB35,846 for the years ended December 31, 2018, 2019 and 2020, respectively. (m) Employee Benefits Pursuant to relevant PRC regulations, the Company is required to make contributions to various defined contribution plans organized by municipal and provincial PRC governments. The contributions are made for each PRC employee at rates ranging from 25.35% to 43.1% on a standard salary base as determined by local social security bureau. Contributions to the defined contribution plans are charged to the combined and consolidated statements of comprehensive income (loss) when the related service is provided. For the years ended December 31, 2018, 2019 and 2020, the costs of the Company’s obligations to the defined contribution plans amounted to RMB15,006, RMB14,281 and RMB12,064, respectively. The Company has no other obligation for the payment of employee benefits associated with these plans beyond the contributions described above. As a result of COVID-19, the PRC government exempted or reduced certain enterprises’ contributions to basic pension insurance, unemployment insurance, and work injury insurance (‘‘certain social insurance’’). The Company’s PRC subsidiaries and VIEs were exempted from contributions to certain social insurance between February 2020 and December 2020. The exemption was recognized as a reduction of cost of revenues and operating expenses in the amount of RMB5,396 for the year ended December 31, 2020. 2. Significant accounting policies (continued) (n) Government Grants Government grant is recognized when there is reasonable assurance that the Company will comply with the conditions attach to it and the grant will be received. Government grant for the purpose of giving immediate financial support to the Company with no future related costs or obligation is recognized in the Company’s combined and consolidated statements of comprehensive income (loss) when the grant becomes receivable. The government grants with certain operating conditions are recorded as liabilities when received and will be recorded as government grant when the conditions are met. RMB1,395, RMB903 and RMB5,997 of government grants were recognized for the years ended December 31, 2018, 2019 and 2020, respectively. (o) Income Taxes Income taxes are accounted for under the asset and liability method. Deferred income tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as operating loss and tax credit carryforwards, if any. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates or tax laws is recognized in the combined and consolidated statements of comprehensive income (loss) in the period the change in tax rates or tax laws is enacted. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset deferred tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle deferred tax liabilities and assets on a net basis or their deferred tax assets and liabilities will be realized simultaneously. The Company reduces the carrying amounts of deferred tax assets by a valuation allowance, if based on the available evidence, it is “more-likely-than-not” that such assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed at each reporting period based on a “more-likely-than-not” realization threshold. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of futures profitability, the duration of statutory carryforward periods, the Company’s experience with operating loss and tax credit carryforwards, if any, not expiring. The Company recognizes in its financial statements the impact of a tax position if that position is “more-likely-than-not” to prevail based on the facts and technical merits of the position. Tax positions that meet the “more-likely-than-not” recognition threshold are measured at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. Interest and penalties recognized related to an unrecognized tax benefits are classified as income tax expense in the combined and consolidated statements of comprehensive income (loss). (p) Share Based Compensation All grants of share-based awards to employees classified as equity awards are recognized in the financial statements based on their grant date fair values. The Company recognizes compensation cost for an equity classified award with only service conditions that has a graded vesting schedule on a straight-line basis over the requisite service period for the entire award, provided that the cumulative amount of compensation cost recognized at any date at least equals the portion of the grant date fair value of such award that is vested at that date. For equity awards that contain both a service condition and a performance condition, the Company recognizes compensation cost on a tranche-by-tranche basis. To the extent the required vesting conditions are not met resulting in the forfeiture of the share-based awards, previously recognized compensation expense relating to those awards is reversed. 2. Significant accounting policies (continued) (q) Treasury Shares Treasury shares is accounted for under the cost method. These shares have no voting rights and are not entitled to receive dividends and are excluded from the weighted average outstanding shares in calculation of earnings per share. (r) Statutory Reserves In accordance with the laws applicable to China’s Foreign Investment Enterprises, the Company’s PRC subsidiaries registered as WFOEs have to make appropriations from its after-tax profit (as determined under the Accounting Standards for Business Enterprises as promulgated by the Ministry of Finance of PRC (“PRC GAAP”)) to a general reserve fund. The appropriation to the general reserve fund must be at least 10% of the after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the general reserve fund has reached 50% of the registered capital of the company. In addition, in accordance with the Company Laws of the PRC, the Company’s PRC subsidiaries and the VIEs registered as PRC domestic companies must make appropriations from its after-tax profit as determined under the PRC GAAP to non-distributable reserve funds including a statutory surplus fund and a discretionary surplus fund. The appropriation to the statutory surplus fund must be at least 10% of the after-tax profits as determined under the PRC GAAP. Appropriation is not required if the surplus fund has reached 50% of the registered capital of the company. Appropriation to the discretionary surplus fund is made at the discretion of the company. The use of the statutory reserves is restricted to the off-setting of losses or increasing capital of the respective company. All these reserves are not allowed to be transferred to their investors in terms of cash dividends, loans or advances, nor can they be distributed except under liquidation. The accumulated balance of the statutory reserves as of December 31, 2019 and 2020 were RMB2,765 and RMB2,765, respectively. (s) Contingencies In the normal course of business, the Company is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including, among others, government investigations, shareholder lawsuits, and non-income tax matters. An accrual for a loss contingency is recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. (t) Segment Reporting The Company uses the management approach in determining its operating segments. The management approach considers the internal reporting used by the Company’s chief operating decision maker for making decisions about the allocation of resources to and the assessment of the performance of the segments of the Company. Management has determined that the Company has one operating segment, which is the real estate information, analytics and marketplace services segment. Substantially all of the Company’s operations and customers are located in the PRC. Consequently, no geographic information is presented. 2. Significant accounting policies (continued) (u) Fair Value Measurements The Company applies ASC Topic 820, Fair Value measurements and Disclosures ASC Topic 820 establishes 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. ASC Topic 820 establishes three levels of inputs that may be used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: ● Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. ● Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. ● Level 3 inputs are unobservable inputs for the asset or liability. The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest level input that is significant to the fa |
ACCOUNTS RECEIVABLE, NET OF ALL
ACCOUNTS RECEIVABLE, NET OF ALLOWANCE FOR DOUBTFUL ACCOUNTS | 12 Months Ended |
Dec. 31, 2020 | |
ACCOUNTS RECEIVABLE, NET OF ALLOWANCE FOR DOUBTFUL ACCOUNTS | |
ACCOUNTS RECEIVABLE, NET OF ALLOWANCE FOR DOUBTFUL ACCOUNTS | 3. ACCOUNTS RECEIVABLE, NET OF ALLOWANCE FOR DOUBTFUL ACCOUNTS Accounts receivable, net of allowance for doubtful accounts were summarized as follows: As of December 31, 2019 2020 Accounts receivable 29,085 46,898 Allowance for doubtful accounts (4,842) (17,218) Accounts receivable, net of allowance for doubtful accounts 24,243 29,680 As of December 31, 2019 and 2020, the Company does not have any off-balance-sheet credit exposure related to its customers. 3. ACCOUNTS RECEIVABLE, NET OF ALLOWANCE FOR DOUBTFUL ACCOUNTS (continued) The movement of the allowance for doubtful accounts for the years ended as of December 31, 2018, 2019 and 2020 were as follows: For the Year Ended December 31, 2018 2019 2020 Balance as of the beginning of the year — — 4,842 Additions charged to bad debt expense — 4,842 12,376 Balance as of the end of the year — 4,842 17,218 |
RIGHT OF USE ASSETS
RIGHT OF USE ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
RIGHT OF USE ASSETS | |
RIGHT OF USE ASSETS | 4. RIGHT OF USE ASSETS The Company leases offices from Fang and third parties. The Company has elected not to recognize ROU assets or lease liabilities for leases with an initial term of 12 months or less. The Company entered a lease framework agreement (the Agreement) with Fang, pursuant to which the Company leases offices from Fang’s wholly-owned subsidiaries at annual rental fee of RMB7,621. The Agreement is effective from January 1, 2018 with initial lease term of 10 years. The Company adopted ASC Topic 842 on January 1, 2019, using a modified retrospective method for the lease. ROU assets and lease liabilities are recognized for the operating leases under the Agreement based on the present value of lease payments over the remaining lease term of 9 years as of January 1, 2019. As the rate implicit in the lease cannot be readily determined, the Company uses its incremental borrowing rate of 4.83% in determining the imputed interest and present value of lease payments. The ROU assets and the amortization were summarized as follows: As of December 31, 2019 2020 Right of use assets 54,579 54,579 Less: Accumulated amortization (4,984) (10,210) Right of use assets 49,595 44,369 Cash paid for amounts included in the measurement of operating lease liabilities was RMB17,567 and RMB12,647 for the years ended December 31, 2019 and 2020, respectively. Rental expense was allocated to the following expense items: For the year ended December 31, 2019 2020 Cost of revenues 2,108 1,481 General and administrative expenses 1,802 1,588 Selling and marketing expenses 3,711 4,552 Total rental expenses 7,621 7,621 4. RIGHT OF USE ASSETS (continued) Maturities of the lease liabilities as of December 31, 2020 were as follows: Years Ended December 31, RMB’000 2021 — 2022 — 2023 5,921 2024 7,621 2025 7,621 Thereafter 15,242 Total undiscounted lease payments 36,405 Less: Imputed interest (8,978) Present value of lease liabilities balance 27,427 Amounts due within 12 months — Long-term lease liabilities 27,427 Amounts of lease liabilities due within 2021 and 2022 were nil, as the Company prepaid RMB16,942 to Fang for rental expenses as of December 31, 2020, respectively. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 5. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES As of December 31, 2019 2020 Guarantee liability 14 — 547,069 Accrued payroll and employee benefits 61,190 63,032 Others 23,060 27,592 Total 84,250 637,693 Others mainly include value added tax and other tax payables. |
OTHER NON-CURRENT LIABILITIES
OTHER NON-CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
Other non-current liabilities | |
Other non-current liabilities | 6. OTHER NON-CURRENT LIABILITIES As of December 31, Note 2019 2020 Unrecognized tax benefits 8 38,383 55,943 Deferred income tax liabilities 8 — 62,044 Warrants 1,374 — Total 39,757 117,987 6. OTHER NON-CURRENT LIABILITIES (continued) Fang issued convertible notes to certain institutional investors in 2015, and an aggregate amount of US$250 million of such convertible notes remained outstanding as of June 11, 2019. These convertible notes bear an interest rate of 1.5% per annum until due in 2022. The holders have the right, from time to time, to convert all or any portion of the convertible notes into Fang’s Class A ordinary shares at an initial conversion rate of 27.9086 Fang’s Class A ordinary shares per US$1,000 principal amount, subject to adjustment under the terms of the convertible notes. In connection with the separation and distribution, the Company agreed to issue a warrant to each of the holders of such convertible notes, which entitled them to purchase for nominal consideration such number of CIH’s Class A ordinary shares as calculated based on the number of Fang Class A ordinary shares upon the assumed conversion of the convertible notes immediately prior to or on the record date if and only if such holders subsequently decide to convert the convertible notes. The holders will be able to purchase up to 6,977,150 Class A ordinary shares in the aggregate based on the initial conversion rate into Fang’s Class A ordinary shares and a one-for-one distribution rate into CIH’s Class A ordinary shares. In the event that holders subsequently decide not to convert the convertible notes, and instead, demand payment of principal and accrued interest upon maturity of the convertible notes, the warrant will be canceled and the right to purchase CIH’s Class A ordinary shares will be forfeited. On October 28 and December 31, 2019, Fang repurchased portion of the convertible notes from certain holders in an amount of US$55 million and US$28 million, respectively. The relative warrants were cancelled and the right to purchase the CIH’s Class A ordinary shares was forfeited, correspondingly. The following is a summary of the outstanding and exercisable warrants balance: For the year ended December 31, Number of Warrants 2019 2020 Outstanding as of the beginning of the year — 4,662,411 Issuance 6,977,150 — Cancelled (2,314,739) — Outstanding as of the end of the year 4,662,411 4,662,411 The fair values of the warrants were remeasured at the end of each reporting period using the binomial option pricing model with the following assumptions: As of December 31, 2019 2020 Expected volatility 42% 48% Expected dividends yield nil nil Expected term (in years) 2.73 ~2.84 years 1.73 ~1.84 years Risk-free interest rate per annum 1.6% 0.12%~0.13% 6. OTHER NON-CURRENT LIABILITIES (continued) The risk-free interest rate was based on the U.S. Treasury rate for the expected remaining life of the warrants. The expected volatility was estimated based on the historical volatility of comparable peer public companies with a time horizon close to the expected term of the Company’s warrants. Expected dividend yield is zero as the Company does not anticipate any dividend payments in the foreseeable future. Expected term is the expected term to exercise the warrants. The movement of the warrants is as follows: For the Year Ended December 31, 2019 2020 Balance as of the beginning of the year — 1,374 Issuance 207 — Change in fair value 1,152 (1,359) Foreign currency translation adjustment 15 (15) Balance as of the end of the year 1,374 — |
REVENUES
REVENUES | 12 Months Ended |
Dec. 31, 2020 | |
REVENUES | |
REVENUES | 7. REVENUES Revenues consist of the following: For the Year Ended December 31, 2018 2019 2020 Information and analytics services Data services 125,147 138,643 166,264 Analytics services 81,054 129,905 137,088 Subtotal 206,201 268,548 303,352 Marketplace services Promotion services 189,718 244,154 301,962 Listing services 25,105 66,948 30,596 Subtotal 214,823 311,102 332,558 Total 421,024 579,650 635,910 7. REVENUES (continued) The Company adopted ASC Topic 606 as of January 1, 2018. The adoption of new revenue standard did not impact retained earnings as of January 1, 2018. The Company’s revenues are presented net of value-added tax collected on behalf of governments starting from January 1, 2018. The Company has elected to adopt the practical expedient Changes in the Company’s deferred revenue for the years ended December 31, 2018, 2019 and 2020 were presented in the following table: For the Year Ended December 31, 2018 2019 2020 Deferred revenue as of the beginning of the year 137,860 143,254 203,531 Cash received in advance, net of VAT 423,354 544,140 579,623 Revenue recognized from opening balance of deferred revenue (127,630) (142,697) (198,722) Revenue recognized from deferred revenue arising during current year (282,087) (341,166) (360,291) Reclassification of VAT payable as of January 1, 2018 as a result of adoption of ASC Topic 606 (8,243) — — Deferred revenue as of the end of the year 143,254 203,531 224,141 The Company has elected the practical expedient |
TAXATION
TAXATION | 12 Months Ended |
Dec. 31, 2020 | |
TAXATION | |
TAXATION | 8. TAXATION Cayman Islands Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gains. In addition, upon payments of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed. BVI Under the current laws of the BVI, the Company’s subsidiaries incorporated in the BVI is not subject to tax on income or capital gains. In addition, upon payments of dividends by the entity to their shareholders, no BVI withholding tax will be imposed. Hong Kong SAR Under the Hong Kong tax laws, subsidiaries in Hong Kong are subject to the Hong Kong profits tax rate at 16.5% and they are exempted from income tax on their foreign-derived income and there are no withholding taxes in Hong Kong on remittance of dividends. A two-tiered profits tax rates regime was introduced in 2018 where the first HK$2 million of assessable profits earned by a company will be taxed at half of the current tax rate (8.25%) whilst the remaining profits will continue to be taxed at 16.5%. There is an anti-fragmentation measure where each group will have to nominate only one company in the group to benefit from the progressive rates. The Company did not make any provisions for Hong Kong profit tax as there were no assessable profits derived from or earned in Hong Kong for any of the periods presented. USA The Company’s subsidiaries incorporated in the USA are subject to profits tax at 21% statutory tax rate with respect to the profit generated from the USA. 8. TAXATION (continued) China In March 2007, a new enterprise income tax law (the “New EIT Law”) in the PRC was enacted which became effective on January 1, 2008. The New EIT Law applies a unified 25% enterprise income tax (“EIT”) rate to both foreign invested enterprises and domestic enterprises, unless a preferential EIT rate is otherwise stipulated. On April 14, 2008, relevant governmental regulatory authorities released further qualification criteria, application procedures and assessment processes for meeting the High and New Technology Enterprise (“HNTE”) status under the New EIT Law which would entitle qualified and approved entities to a favorable EIT tax rate of 15%. In April 2009, the State Administration for Taxation (“SAT”) issued Circular Guoshuihan [2009] No. 203 (“Circular 203”) stipulating that entities which qualified for the HNTE status should apply with in-charge tax authorities to enjoy the reduced EIT rate of 15% provided under the New EIT Law starting from the year when the new HNTE certificate becomes effective. The HNTE certificate is effective for a period of three years and can be renewed for another three years. Subsequently, an entity needs to re-apply for the HNTE status in order to be able to enjoy the preferential tax rate of 15%. Income tax returns of PRC subsidiaries and the VIEs are filed on an individual entity basis. The Company has calculated its income tax provision using the separate return method in the combined and consolidated financial statements. Beijing Zhong Zhi Shi Zheng and Beijing Zhong Zhi Xun Bo Data Information Technology Co., Ltd., two of the Company’s PRC subsidiaries, renewed and obtained the HNTE certificate, respectively, in October 2018, hence were entitled to the preferential income tax rate of 15% for the years between December 31, 2018 to December 31, 2020. Xinjiang Zhong Zhi, one of the Company’s PRC subsidiaries, was entitled to a tax holiday for five years starting from 2017, because it was established in the Xinjiang Huoerguosi Economic and Technological Development Zone. Xinjiang Zhong Zhi Shi Zheng Data Information Technology Co., Ltd. and Xinjiang Zhong Zhi Shi Zheng Big Data Co., Ltd, two The PRC tax laws and its implementation rules impose a withholding income tax at 10%, unless reduced by a tax treaty or arrangement, on the amount of dividends distributed by a PRC-resident enterprise to its immediate holding company outside the PRC that are related to earnings accumulated beginning on January 1, 2008. As of December 31, 2020, the Company has accrued withholding income tax of RMB62,000 on undistributed earnings of RMB620,000 generated by the Company’s PRC subsidiaries. As of December 31, 2020, the Company has not provided for income taxes on earnings of RMB336,470 generated by the Company’s PRC subsidiaries, as the Company plans to reinvest these earnings indefinitely in the PRC. The unrecognized deferred income tax liability related to these earnings was RMB33,647. The PRC tax authorities have up to five years to conduct examinations of the Company’s tax filings. Accordingly, the PRC subsidiaries’ tax years 2016 through 2020 remain open to examination by the respective taxing jurisdictions. The components of income (loss) before income taxes are as follows: For the Year Ended December 31, 2018 2019 2020 PRC, excluding Hong Kong SAR 194,154 291,928 335,102 Hong Kong SAR 1,314 (427) (515) Cayman Islands — (1,354) (543,135) BVI — 41 (640) USA — — 286 Total income (loss) before income taxes 195,468 290,188 (208,902) 8. TAXATION (continued) The Company’s income tax expense recognized in the combined and consolidated statements of comprehensive income (loss) consists of the following: For the Year Ended December 31, 2018 2019 2020 Current income tax expense - PRC, excluding Hong Kong SAR 29,719 44,737 48,938 Current income tax expense - Hong Kong SAR 329 — — Deferred income tax expense - PRC, excluding Hong Kong SAR — — 60,516 Total income tax expense 30,048 44,737 109,454 Reconciliation of the differences between PRC statutory income tax rate and the Group’s effective income tax rate for each of the years ended December 31, 2018, 2019 and 2020 are as follows: For the Year Ended December 31, 2018 2019 2020 PRC statutory income tax rate 25.0 % 25.0 % (25.0) % Increase (decrease) in effective income tax rate resulting from: Research and development bonus deduction (1.7) % (3.3) % (5.9) % Non-deductible selling, general and administrative expenses 1.6 % 1.4 % 1.6 % Effect of tax rate differential for non-PRC entities — 0.1 % 65.1 % Effect of preferential tax rates (9.5) % (9.2) % (14.7) % Effect of withholding tax for undistributed earnings from PRC subsidiaries — — 29.7 % Change in valuation allowance — 0.1 % 0.3 % Interest and penalties on unrecognized tax benefits — 1.3 % 1.3 % Actual income tax rate 15.4 % 15.4 % 52.4 % The principal components of deferred income tax assets and liabilities are as follows: As of December 31, 2019 2020 RMB RMB Deferred income tax assets Net operating loss carry forwards 273 729 Allowance for doubtful account — 1,530 Long-term lease liabilities 5,652 4,114 Total deferred income tax assets, gross 5,925 6,373 Less: Valuation allowance (273) (729) Total deferred income tax assets, net 5,652 5,644 Deferred income tax liabilities Short-term investments — 46 Right of use assets 5,652 4,114 Withholding income tax on distributable profits of the PRC subsidiaries — 62,000 Total deferred income tax liabilities, gross 5,652 66,160 Net deferred income tax assets (included in other noncurrent assets) — 1,528 Net deferred income tax liabilities (included in other noncurrent liabilities) — 62,044 8. TAXATION (continued) The movements of the valuation allowance were as follows: For the Year Ended December 31, 2018 2019 2020 Balance as of the beginning of the year (24) (78) (273) Additions of valuation allowance (54) (195) (456) Balance as of the end of the year (78) (273) (729) The valuation allowance as of December 31, 2019 and 2020 were primarily provided for the deferred income tax assets of certain Company’s PRC subsidiaries and the VIEs, which were at cumulative loss positions. In assessing the realization of deferred income tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible or utilizable. Management considers projected future taxable income and tax planning strategies in making this assessment. As of December 31, 2020, the Company had net operating loss from certain of its PRC subsidiaries and the VIEs of RMB2,918, which can be carried forward to offset future taxable profit. The net operating loss of RMB134, RMB705, and RMB2,079 will expire by 2024, 2025, 2026, if unused. A reconciliation of the beginning and ending amount of total unrecognized tax benefits, exclusive of related interest and penalties, for the years ended December 31, 2018, 2019 and 2020 were as follows: For the Year Ended December 31, 2018 2019 2020 Balance as of the beginning of the year — 15,496 34,710 Increase relating to prior year tax positions — 6,051 — Increase related to current year tax positions 15,484 14,392 21,966 Settlement — (1,235) (7,100) Foreign currency translation adjustment 12 6 (23) Balance as of the end of the year 15,496 34,710 49,553 As of December 31, 2019 and 2020, the Company had recorded 1) RMB34,710 and RMB49,553 as an accrual for unrecognized tax benefits, and 2) RMB3,673 and RMB6,390 as related interest and penalties, respectively, which are included in other non-current liabilities. The unrecognized tax benefits represent the estimated tax expenses the Company would be required to pay, should the deductible expenses for tax purpose recognized in accordance with tax laws and regulations. The unrecognized tax benefits would impact the effective tax rate if recognized. The Company is currently unable to provide an estimate of a range of total amount of unrecognized tax benefits that is reasonably possible to change significantly within the next twelve months. For the years ended December 31, 2018, 2019 and 2020, the Company recognized nil, RMB3,673 and RMB2,717 in income tax expenses for interest and penalties related to unrecognized tax benefits, respectively. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2020 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 9. RELATED PARTY TRANSACTIONS For the years ended December 31, 2018, 2019 and 2020, significant related party transactions were as follows: For the Year Ended December 31, Note 2018 2019 2020 Listing service revenue from Fang 9 (1) 4,543 26,382 — Analytics services revenue 9 (2) — 17,296 11,006 Costs and expenses allocated from Fang, excluding the share-based compensation costs and expenses related to Fang’s share-based awards 2 (a) 9,919 4,337 — Rent expenses 4 7,621 7,621 7,621 IT service fee 9 (3) — 5,214 7,500 Software license fee 9 (4) — 278 500 Repayment of cash advance from related parties 9 (6) 3,815 — — Share-based compensation expenses related to Fang’s share-based awards 9 (7) 6,808 3,894 — Disposal of subsidiaries to Fang 9(8) — — 4,325 Advance to a noncontrolling interest holder 9 (9) — — 3,090 Amounts due from related parties - current were as follows: As of December 31, Note 2019 2020 Prepayments to and amounts due from related parties Beihai Long Island Hotel Co., Ltd 9 (2) 1,500 — Beijing CheTianXia Information Co., Ltd. 9 (2) 3,320 — China Enterprise Evaluation Association 9 (9) — 3,090 Total 4,820 3,090 Amounts due from a related party - noncurrent was as follows: As of December 31, Note 2019 2020 Amounts due from Fang - noncurrent Gross amount 14 — 547,069 Allowance for doubtful accounts 14 — (547,069) Total — — Amounts due to a related party was as follows: As of December 31, Note 2019 2020 Amounts due to a related party Fang 9 (5) 7,734 156 Total 7,734 156 (1) The Company acted as an agent on behalf of Fang on listing services for commercial properties. The Company recorded the revenues on net basis when Fang and its customers enter into a sales contract. On January 1, 2020, the Company and Fang agreed to terminate the cooperation agreement. 9. RELATED PARTY TRANSACTIONS (continued) (2) Beijing CheTianXia Information Co., Ltd. (“CheTianXia”), Guangxi Pukai Xingye Hotel Investment Co., Ltd (“Guangxi Pukai”) and Beihai Long Island Hotel Co, Ltd. (“Beihai Long Island”) are companies under the control of Mr. Vincent Tianquan Mo, the Company’s chairman of the board of directors and the controlling shareholder. On August 26, 2019, the Company entered into a contract with CheTianXia and Guangxi Pukai, pursuant to which the Company was engaged in providing analytics services for the sale of land use right assets and the total contract consideration was RMB20,000, over a period of shorter of (1) eighteen months effective from January 1, 2019 or (2) upon completion of the sales of the assets. On August 26, 2019, the Company entered into a contract with Beihai Long Island, pursuant to which the Company was engaged in providing analytics services for the sales of properties and the total contract consideration was RMB10,000, over a period of shorter of (1) twelve months effective from July 1, 2019 or (2) upon completion of the sales of the properties. The transactions were approved by the Company’s Board of Director on August 22, 2019. The Company recognized revenue of analytics services on a cumulative catch-up basis since the effective dates of the contracts and both of the contracts matured on June 30, 2020. The Company recognized analytics services revenue from these three related parties of RMB17,296 and RMB11,006 for the years ended December 31, 2019 and 2020, respectively. (3) The Company continued to utilize Fang’s server and other IT services after the separation and incurred IT service fee of RMB5,214 and RMB7,500 during the period from June 11, 2019 to December 31, 2019 and the year ended December 31, 2020, respectively. The Company paid RMB7,500 and RMB7,950 to Fang for the IT service in 2019 and 2020, respectively. The balances of RMB2,286 and RMB1,836 represented the IT service fee prepaid to Fang as of December 31, 2019 and 2020, respectively, which were offset with an equivalent amount due to Fang according to the agreement described in Note 9 (5). (4) The Company entered into a software license agreement with Fang, pursuant to which, Fang agrees to license the right of using certain of their software at annual royalty fee of RMB500. The term of the software license agreement is 10 years. The agreement is effective from June 11, 2019. RMB278 and RMB500 of software license fee incurred during the period from June 11, 2019 to December 31, 2019 and the year ended December 31, 2020, respectively. The Company did not settle the expense in cash in 2019 and made the payment of RMB500 in 2020. The balances of RMB278 represented the software license fee payable to Fang as of December 31, 2019 and 2020, which were offset with an equivalent amount due from Fang according to the agreement described in Note 9 (5). (5) After the completion of the separation, there were certain cash collections and cash payments on behalf of each other between the Company and Fang from June 11, 2019 to December 31, 2020. In November 2019, the Company entered into an agreement with Fang to settle all such balances with Fang on a quarterly basis in net amounts. The balances of RMB7,734 and RMB156 as of December 31 ,2019 and 2020 represented the net amount due to Fang, after offsetting with an equivalent amount due from and prepayments to Fang of RMB56,850 and RMB84,831 as of December 31 ,2019 and 2020, respectively. (6) The amounts due to Beijing Heng Xin Jia Hua Investment Consulting Limited and Beijing Jin Hua Ming Advertising Limited as of December 31, 2017, both of which were jointly controlled by Mr. Vincent Tianquan Mo, and a third-party individual, represent cash advances the Company received from the respective companies. The Company settled the balances of RMB3,815 with these two companies in cash in January 2018. (7) Prior to the separation, certain of the Company’s employees participated in Fang’s various stock related award incentive plans. Share-based compensation expenses related to Fang’s share-based awards allocated from Fang were RMB6,808 and RMB3,894 for the year ended December 31, 2018 and during the period from January 1, 2019 to June 11, 2019, respectively. See Note 10 in details. (8) The Company disposed of two of its subsidiaries in Chengdu to Fang in April 2020 at a consideration of RMB4,325, which was the carrying amount of the net assets of the subsidiaries as of the disposal date. The Company collected RMB4,325 in cash in October 2020. (9) The amount due from China Enterprise Evaluation Association as of December 31, 2020, which was one of the noncontrolling interest holders of Shouzheng, represents cash advances provided by the Company. The Company collected the balance from China Enterprise Evaluation Association in cash in March 2021. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2020 | |
SHARE-BASED COMPENSATION. | |
SHARE-BASED COMPENSATION | 10. SHARE-BASED COMPENSATION Prior to the separation, certain of the Company’s employees participated in Fang’s 2010 Stock Related Award Incentive Plan (the “2010 Plan”) and 2015 Stock Related Award Incentive Plan (the “2015 Plan”), which provided employees with certain share-based awards as described below. Accordingly, certain costs related to the Plan have been allocated to the Company and are reflected in cost of revenues and operating expenses in the combined and consolidated statements of comprehensive income (loss). Fang’s Stock related award incentive plan of 2010 On August 4, 2010, Fang’s board of directors and shareholders approved the 2010 Plan pursuant to which Fang may issue up to 10% of the total number of ordinary shares, including ordinary shares issuable upon conversion of any preferred shares to its employees. The awards are typically subject to a four-year service vesting condition and performance conditions with a contractual life of ten years. Fang’s Stock related award incentive plan of 2015 On June 4, 2015, Fang’s board of directors and shareholders approved the 2015 Plan pursuant to which Fang may issue up to 1.5% of the total number of ordinary shares, including ordinary shares issuable upon conversion of any preferred shares to its directors and employees. The awards are typically subject to a four-year service vesting condition and multiple performance conditions with a contractual life of ten years. On June 7, 2019, Fang’s board of directors approved the grant of options to certain officers and employees of the Company to purchase 268,500 ordinary shares of Fang with the exercise price of US$5.85 per share. These options vest over a period of 4 years . The options have a contractual term of 10 years . In order to protect Fang’s equity awards holders from changes in the awards’ value following the separation, the Company issued the equivalent number of CIH’s equity awards to the holders of Fang’s equity awards (including both the Company and Fang’s employees) with substantially the same remaining vesting terms and conditions as applied to Fang’s equity awards to make them whole under the separation. These CIH equity awards have a nominal exercise price and may be exercisable if and to the extent that the corresponding Fang’s equity awards are exercised. The modified equity awards have the same terms and conditions as the awards held immediately before the separation. CIH’s 2019 Equity Incentive Plan (CIH 2019 Plan) On May 2, 2019, CIH’s board of directors and shareholders approved the CIH 2019 Plan pursuant to which CIH may issue up to (i) 5% of the total number of CIH’s outstanding ordinary shares as of the completion of its separation from Fang, plus (ii) the number of CIH’s ordinary shares that may be issued upon exercise of the awards to be granted with respect to the share options issued prior to the completion of the separation and distribution in connection with the Company to holders of Fang’s equity awards to make them whole under the separation. The awards are typically subject to a four-year service vesting condition and multiple performance conditions with a contractual life of ten years. On April 1, 2020, CIH’s board of directors approved the grant of options to certain officers and employees of the Company to purchase 4,785,365 ordinary shares of CIH with the exercise price of US$1.35 per share. These options vest over a period of 4 years , with a contractual term of 10 years . 10. SHARE-BASED COMPENSATION (continued) Share options A summary of Fang’s share options activities held by the Company’s employees for the year ended December 31, 2020 was as follows: Weighted Weighted Average Number of Average Remaining Aggregate Share Exercise Price Contractual Intrinsic Options US$ Years Value US$ Outstanding as of January 1, 2020 590,353 13.03 7.19 — Forfeited (16,010) 10.56 — — Expired (73,215) 16.39 — — Outstanding as of December 31, 2020 501,128 12.62 6.69 — Vested and expected to vest as of December 31, 2020 (a) 405,259 14.13 6.29 — Exercisable as of December 31, 2020 309,390 16.57 5.64 — (a) Vested and expected to vest as of December 31, 2020 represents fully vested Fang’s share options and unvested Fang’s share options held by the Company’s employees, for which the requisite service period has not been rendered but that are expected to vest based on the achievement of a performance condition as of December 31, 2020. The aggregate intrinsic value was nil as of December 31, 2020, because the exercise price is in excess of the fair value of Fang’s ordinary share as of December 31, 2020. The fair values of the share options granted by Fang to the Company’s employees for the year ended December 31, 2018, and during the period from January 1, 2019 to June 11, 2019 are as follows: For the period between January 1 Year Ended December 31, and June 11, 2018 2019 US$ US$ Weighted average grant date fair value of option per share — 2.88 Aggregate grant date fair value of options — 773,280 Total intrinsic value of Fang’s share options exercised by the Company’s employees for the years ended December 31, 2018, 2019 and 2020 was US$676,680 (equivalent to RMB4,476), nil and nil, respectively. 10. SHARE-BASED COMPENSATION (continued) A summary of CIH’s share options activity held by both the Company’s employees and Fang’s employees for the year ended December 31, 2020 was as follows: Weighted Weighted Average Number of Average Remaining Aggregate Share Exercise Price Contractual Intrinsic Options US$ Years Value US$ Outstanding as of January 1, 2020 7,227,971 0.001 4.97 26,302,586 Granted 4,785,365 1.35 — — Forfeited (408,825) 0.88 — — Expired (386,965) 0.001 — — Outstanding as of December 31, 2020 11,217,546 0.54 6.99 15,993,085 Vested and expected to vest as of December 31, 2020 (a) 8,462,425 0.36 6.31 13,615,383 Exercisable as of December 31, 2020 5,707,303 0.001 4.98 11,237,680 (a) Vested and expected to vest as of December 31, 2020 represents fully vested CIH’s share options and unvested CIH’s share options held by the Company’s and Fang’s employees, for which the requisite service period has not been rendered but that are expected to vest based on the achievement of a performance condition as of December 31, 2020. The aggregate intrinsic value in the table above represents the difference between the fair value of CIH’s ordinary share as of December 31, 2020 and the exercise price of CIH’s share options, which may be exercisable if and to the extent that the corresponding Fang’s share options are exercised. The weighted average grant date fair value and aggregate grant date fair value of the share options granted by CIH to the Company’s employees for the year ended December 31, 2020 was US$0.49 per share and US$2,359,450. As of December 31, 2020, there was RMB13,172 of unrecognized share-based compensation cost related to CIH and Fang’s share options held by the Company’s employees that are expected to be recognized over a weighted-average vesting period of 3.10 years. Fang and the Company estimated the fair value of share options granted to the Company’s employees as of the date of grant, using the binomial option pricing model with the following assumptions: For the period between For the period between January 1 and June 11, June 11 and December 31, For the year ended December 31, 2019 2019 2020 Expected volatility 45% 38.7%~45.4% 32% Expected dividends yield nil nil nil Expected term 10 years 0.55~9.99 years 10 years Risk-free interest rate per annum 2.08% 1.9%~2.2% 0.6% Exercise multiple 2.2-2.8 2.2~2.8 2.2~2.8 The volatility assumption was estimated based on the historical volatility of Fang and comparable companies in the same business, with a time horizon close to the expected term of the CIH and Fang’s share options. The dividend yield of nil was based on estimated dividend distribution for the share options granted in the foreseeable future. The expected term was remaining contract life of the share options. The risk-free rate was estimated based on the market yield of US Treasury Bonds and Notes with maturity terms equal to the expected term of the share options. The expected exercise multiple was estimated as the average ratio of the share price to the exercise price of when employees would decide to voluntarily exercise their vested options. 10. SHARE-BASED COMPENSATION (continued) Restricted Shares A summary of Fang’s restricted shares held by the Company’s employees for the year ended December 31, 2020 was stated below: Weighted Average Grant Number of Shares Date Fair Value US$ Unvested as of January 1, 2020 62,858 17.55 Vested (28,320) 17.55 Forfeited (6,168) 17.55 Unvested as of December 31, 2020 28,370 17.55 A summary of CIH’s restricted shares held by both the Company’s and Fang’s employees for the year ended December 31, 2020 was stated below: Weighted Average Grant Date Fair Number of Shares Value US$ Unvested as of January 1, 2020 672,030 0.34 Vested (306,977) 0.34 Forfeited (63,578) 0.34 Unvested as of December 31, 2020 310,475 0.34 As of December 31, 2020, there was RMB994 of unrecognized share-based compensation cost related to CIH and Fang’s restricted shares held by the Company’s employees that are expected to be recognized over a weighted-average vesting period of 0.66 years. Total share-based compensation expense of CIH and Fang’s share-based awards granted to CIH’s employees was as follows: For the Year Ended December 31, 2018 2019 2020 Cost of revenues 2,157 1,537 1,772 Selling expenses 366 787 901 General and administrative expenses 4,285 5,910 5,939 Total 6,808 8,234 8,612 |
EQUITY
EQUITY | 12 Months Ended |
Dec. 31, 2020 | |
EQUITY | |
EQUITY | 11. EQUITY Ordinary Shares On May 2, 2019, Fang’s board of directors approved the distribution of its shares of CIH ordinary shares to holders of Fang’s ordinary shares on a pro rata basis. On June 11, 2019, Fang’s shareholders of record as of May 28, 2019 received a dividend distribution of one Class A ordinary share for every one Fang ordinary share (whether a Fang Class A ordinary share or a Fang Class B ordinary share) held as of the record date. On June 11, 2019, the Company completed the legal separation from Fang, and the Company began trading “regular way” under the ticker symbol “CIH” on the NASDAQ on June 12, 2019. Based on 71,775,686 Fang Class A ordinary shares and 24,336,650 Fang Class B ordinary shares issued and outstanding on May 28, 2019, the record date, 96,112,336 Class A ordinary shares was distributed, of which 23,636,706 was re-designated as Class B ordinary shares and distributed to Mr. Vincent Tianquan Mo, and 6,712,694 was issued as treasury shares in connection with the separation and recorded at par value. The Company has used 648,492 shares of treasury shares for settlement of restricted shares vested as of December 31, 2020. Upon the separation on June 11, 2019, the Company authorized 1,000,000,000 shares for Class A and Class B in aggregate, with a par value of US$0.001. As of December 31, 2019 and 2020, there were 1) 65,762,936 and 66,411,428 Class A shares outstanding, and 2) 23,636,706 and 23,636,706 Class B shares outstanding, respectively. The rights of the holders of Class A and Class B ordinary shares are identical, except with respect to voting rights. Each Class A ordinary share is entitled to one vote per share whereas each Class B ordinary share is entitled to 10 votes per share. Each Class B ordinary share is convertible into one Class A ordinary share at any time by its holder, but Class A ordinary shares are not convertible into Class B ordinary shares unless approved by the Company’s board of directors. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
EARNINGS (LOSS) PER SHARE | |
EARNINGS (LOSS) PER SHARE | 12. EARNINGS (LOSS) PER SHARE On June 11, 2019, Fang’s shareholders of record as of May 28, 2019 received one share of CIH Class A ordinary shares for every one share of Fang’s ordinary shares held as of the record date. For all the periods presented prior to June 11, 2019, basic and diluted earnings per share were computed using the number of shares of CIH ordinary shares outstanding as of June 11, 2019, the date on which the CIH ordinary shares were distributed to Fang’s shareholders, since there were no dilutive securities until after the separation. 12. EARNINGS PER SHARE (continued) The following table sets forth the basic and diluted earnings (loss) per share computation and provides a reconciliation of the numerator and denominator for the periods presented: For the Year Ended December 31, 2018 2019 2020 Numerator: Net income (loss) attributable to Class A and Class B ordinary shareholders 165,420 245,451 (318,052) Denominator: Weighted average number of Class A and Class B ordinary shares outstanding 89,399,642 89,399,642 89,842,465 Weighted average number of vested restricted shares — 115,511 — Denominator for basic net income per Class A and Class B ordinary share 89,399,642 89,515,153 89,842,465 Dilutive effect of share options and unvested restricted shares — 30,557 — Denominator for diluted net income per Class A and Class B ordinary share 89,399,642 89,545,710 89,842,465 Earnings (loss) per Class A and Class B ordinary share —Basic 1.85 2.74 (3.54) —Diluted 1.85 2.74 (3.54) Securities that could potentially dilute basic net income (loss) per share in the future that were not included in the calculation of diluted earnings (loss) per share for the years ended December 31, 2018, 2019 and 2020 are as below: For the Year Ended December 31, 2018 2019 2020 Warrants — 4,662,411 4,662,411 Share options — 7,227,971 11,217,546 Unvested restricted shares — — 310,475 |
PARENT COMPANY ONLY CONDENSED F
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 13. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION For the presentation of the parent company only condensed financial information, the Company records its investment in subsidiaries and consolidated VIEs, under the equity method of accounting as prescribed in ASC Topic 323, Investments-Equity Method and Joint Ventures 13. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (continued) a) Condensed Balance Sheets As of December 31, 2019 2020 ASSETS Current assets: Cash and cash equivalents — 3,436 Prepaid expenses and other current assets 2 2 Total current assets: 2 3,438 Non-current assets: Amounts due from a related party-non current, less allowance for doubtful accounts of nil and RMB 547,069 as of December 31, 2019 and 2020, respectively — — Investments in subsidiaries and consolidated VIEs 22,762 257,569 Total assets 22,764 261,007 LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) Current liabilities: Amounts due to a related party 338 933 Accrued expenses and other liabilities 70 547,520 Total current liabilities 408 548,453 Non-current liabilities: Other non-current liabilities 1,374 — Total liabilities 1,782 548,453 Commitments and contingencies — — Shareholders’ equity (deficit) Class A ordinary shares (US$0.001 per share, 1,000,000,000 shares authorized for Class A and Class B in aggregate as of December 31, 2019 and 2020; 72,475,630 shares issued as of December 31, 2019 and 2020; 65,762,936 and 66,411,428 shares outstanding as of December 31, 2019 and 2020, respectively) 500 500 Class B ordinary shares (US$0.001 per share, 1,000,000,000 shares authorized for Class A and Class B in aggregate as of December 31, 2019 and 2020; 23,636,706 shares issued and outstanding as of December 31, 2019 and 2020; each Class B ordinary share is convertible into one Class A ordinary share) 163 163 Treasury shares (46) (42) Capital deficit (135,179) (126,571) Retained earnings 155,324 (162,728) Accumulated other comprehensive income 220 1,232 Total shareholders’ equity (deficit) 20,982 (287,446) Total liabilities and shareholders’ equity (deficit) 22,764 261,007 13. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (continued) b) Condensed Statement of Operations For the Year Ended December 31, 2019 2020 Total operating expenses (202) (544,494) Change in fair value of the warrants (1,152) 1,359 Share of income from subsidiaries and consolidated VIEs 246,805 225,083 Income (loss) before income taxes 245,451 (318,052) Income tax expense — — Net income (loss) 245,451 (318,052) c) Condensed Statement of Cash Flows For the Year Ended December 31, 2019 2020 Net cash provided by operating activities — 3,634 Effect of foreign currency exchange rate changes on cash and cash equivalents — (198) Net increase in cash and cash equivalents — 3,436 Cash and cash equivalents as of the beginning of the year — — Cash and cash equivalents as of the end of the year — 3,436 |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
CONTINGENCIES | |
CONTINGENCIES | 14. CONTINGENCIES In connection with the separation and distribution of the Company from Fang, the Company agreed to provide a guarantee for the benefit of the convertible notes holders of Fang, under which the Company is liable to the payment obligations under the convertible notes in the event that Fang fails to discharge its primary payment obligations under the convertible notes or certain circumstances relating to the Company, including, among others, change-in-control transactions or certain fundamental changes to the Company’s share capital. Because the guarantee issued by the Company to Fang’s convertible notes holders is a guarantee between companies under common control, it qualifies for the scope exclusion of recognition and measurement requirements of ASC 460, Guarantees On December 7, 2020, Fang announced that it attended a hearing before the Grand Court of the Cayman Islands (the “Cayman Court”) regarding the application by certain shareholders of Fang (the “Petitioners”) to appoint provisional liquidators over Fang and the Petitioners initiated a winding-up petition against Fang in Cayman Court on November 12, 2020, which was deemed to be an event of default as defined under the convertible notes. Consequently, 100% of the outstanding principle of, and unpaid interest on the notes became due and payable as of December 31, 2020. Pursuant to the agreements among the Company, Fang and the holders of Fang’s convertible notes, Fang and the Company each agreed to repay 50% of the total amount of US$168.0 million by installment in 2021 to the holders of Fang’s convertible notes to settle the convertible notes agreements, including the outstanding principle of US$167.2 million and unpaid interest of US$0.8 million as of December 31, 2020. Accordingly, the Company accrued the guarantee liability in the amount of US$84.0 million (equivalent to RMB 547,069) as of December 31, 2020. The Company repaid to the holders of the convertible notes on behalf of Fang: 1) US$42.4 million (including US$0.2 million of interest expenses in 2021) on September 24, 2021 and 2) US$41.8 million on November 10, 2021, respectively. In addition, Fang repaid to the holders of the convertible notes: 1) US$42.4 million on September 28, 2021 (including US$0.2 million of interest expenses in 2021) and 2) US$41.8 million on November 15, 2021, respectively. The Company and Fang further agree that if Fang repays all the liabilities born by the CIH no later than December 31, 2023, no interest will be accrued. In the event that Fang fails to make any payments to CIH in accordance with the timeline, the outstanding balance of Fang’s Indebtedness shall accrue interest at one percent per annum and such unpaid amounts together with such interest thereon shall be immediately due and payable by Fang to CIH. Based on the Company’s credit assessment on the collectability of amounts due from Fang, taking into consideration of current market conditions and Fang’s financial condition, as well as (1) Fang is subject to a winding-up petition by a noncontrolling shareholder in Cayman Court; (2) Fang is late in the filing of its annual 20-F for the year ended December 31, 2020; (3) Fang had to rely on the Company as the guarantor to settle the convertible notes agreements; and (4) the Company does not have any collateral placed by Fang against the amounts due from Fang, the Company has accrued 100% provision against the amounts due from Fang in the amount of RMB547,069 as of December 31, 2020, which was recorded as bad debt expense on the combined and consolidated statements of comprehensive income (loss) for the year ended December 31, 2020. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 15. SUBSEQUENT EVENTS Impact of Covid-19 Beginning in December 2019, a novel strain of coronavirus, or COVID-19, resulted in prolonged mandatory quarantines, lockdown, closures of businesses and facilities and travel restrictions imposed by the Chinese government and many other countries around the world. Although the Chinese economy has been recovering steadily from the impact of COVID-19 since the second half of 2020, any recurrence of the COVID-19 outbreak in China, or continuance of the outbreak in other parts of the world could adversely impact the Company’s business operations. Furthermore, the Company has experienced business disturbances due to the quarantine measures to contain the spread of COVID-19 and experienced a slowdown in revenue growth and delayed collection of accounts receivables from customers in 2020. The Company may experience similar delay or even default from customers should there be any recurrence of the COVID-19 outbreak in China, which could materially and adversely affect the Company’s business, results of operations and financial condition. Given the uncertainty around the extent and timing of the potential future spread or mitigation of the COVID-19 and around the imposition or relaxation of protective measures, the Company cannot reasonably estimate the impact in the near future. Cessation of commercial listing services Since January 1, 2021, the Company has ceased the business operation of listing services for commercial properties. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Significant accounting policies | |
Basis of Presentation and Principles of Consolidation | (a) Basis of Presentation and Principles of Consolidation The accompanying combined and consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). In connection with the Company’s separation from Fang, the direct and indirect equity interests of all of the Company’s operating subsidiaries and intermediate holding companies were transferred from Fang to the Company, when the Company was still one of Fang’s subsidiaries, through a series of transactions, which were completed in May 2019. As a result of these transactions, the Company assumed all of the business and operations of real estate information, analytics and marketplace services business from Fang by acquiring the relevant portion of the businesses historically not conducted by the Company. The Company separated from Fang on June 11, 2019, becoming an independent publicly traded company as a result of a pro rata distribution of all outstanding shares of CIH ordinary shares to shareholders of Fang. The financial statements presented herein represent (i) prior to June 11, 2019, the combined financial statements of Fang’s real estate information, analytics and marketplace services business when the Company was a wholly owned subsidiary of Fang and (ii) subsequent to June 11, 2019, the consolidated financial statements of the Company as a separate publicly traded company following its separation from Fang. The combined financial statements have been prepared on a stand-alone basis and are derived from Fang’s consolidated financial statements and underlying accounting records. The combined financial statements include all revenues, costs, assets and liabilities directly attributable to the Company either through specific identification or allocation. The consolidated financial statements include the financial statements of the Company, its wholly-owned subsidiaries and the VIEs. All intercompany transactions and balances among the Company, its wholly-owned subsidiaries and the VIEs have been eliminated upon consolidation. 2. Significant accounting policies (continued) Allocation of Expenses Prior to the separation, Fang has historically performed centralized functions on behalf of the Company. Accordingly, certain Fang’s costs have been allocated to the Company and reflected as expenses in the combined statements of comprehensive income (loss) for the year ended December 31, 2018 and the period between January 1, 2019 and June 11, 2019. Expense allocation primarily relate to centralized functions, including finance, accounting, treasury, tax, legal, internal audit and human resources functions. In addition, expense allocations include, among other costs, IT maintenance and professional fees. All of the allocations of costs are deemed to have been incurred and settled through parent company deficit in the period when the costs were recorded. The allocations of costs were based on the number of staff of the Company relative to Fang’s total number of staff, or the Company’s revenues relative to Fang’s total revenues, where appropriate. Management considers the allocation methodologies used to be reasonable and appropriate reflections of the historical parent expenses attributable to the Company. The expenses reflected in the combined statement of comprehensive income (loss) may not be indicative of the actual expenses that would have been incurred during the periods presented if the Company had operated as a separate, stand-alone entity. It is not practicable to estimate actual costs that would have been incurred had the Company been a stand-alone company during the periods presented. Following the separation from Fang, the Company performs these functions using its own resources or purchased services. The following table sets forth cost of revenues, selling and marketing expenses, and general and administrative expenses, allocated from Fang for the year ended December 31, 2018 and the period between January 1, 2019 and June 11, 2019: For the period between For the Year Ended January 1 and December 31, June 11, 2018 2019 Cost of revenues 4,622 2,309 Selling and marketing expenses 441 305 General and administrative expenses 4,856 1,723 Total 9,919 4,337 Cash Management and Treasury The Company funds its operations through cash generated from operating activities. Prior to June 11, 2019, excess cash has historically been repatriated to Fang through intercompany advances. Transfers of cash both to and from Fang are included within parent company investment (deficit) on the combined statement of equity (deficit). Fang has issued debt for general corporate purposes but in no case has any such debt been guaranteed or assumed by the Company or otherwise secured by the assets of the Company. As Fang’s debt and related interest is not directly attributable to the Company, no such amounts have been allocated to the combined financial statements before the separation. Parent Company Deficit Parent company deficit in the combined statement of equity (deficit) represents Fang’s historical investment in the Company, the Company’s accumulated net earnings after income taxes, and the net effect of transactions with and allocations from Fang prior to June 11, 2019. The combined statement of equity (deficit) include net cash transfers to and from Fang and the Company. The total net effect of the settlement of these transactions is reflected in financing activities in the accompanying combined and consolidated statements of cash flows. Upon the separation, parent company deficit formed the Company’s ordinary shares, treasury shares and capital deficit. 2. Significant accounting policies (continued) |
Use of Estimates | (b) Use of Estimates The preparation of the combined and consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the balance sheet dates and the reported amounts of expenses during the reporting periods. Significant items subject to such estimates and assumptions include the collectability of accounts receivable and amounts due from a related party, estimated stand-alone selling prices of performance obligations, the accruals for tax uncertainties and allocation of expenses, fair value of the warrants and share-based compensation awards, and the incremental borrowing rate used in calculating operating lease liabilities. Changes in facts and circumstances may result in revised estimates. Actual results could materially differ from those estimates. |
Foreign Currency | (c) Foreign Currency The functional currency of the Company and its subsidiaries incorporated at Hong Kong Special Administrative Region (“Hong Kong SAR”), British Virgin Islands (“BVI”) and the United States of America (the “USA”), is United States Dollars (“US$”), whereas the functional currency of the Company’s other PRC subsidiaries and the VIEs is Chinese Renminbi (“RMB”). Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rate at the balance sheet date. The resulting exchange differences are recorded in general and administrative expenses in the combined and consolidated statements of comprehensive income (loss). The Company uses RMB as its reporting currency. Assets and liabilities of entities with functional currencies other than RMB are translated into RMB using the exchange rate on the balance sheet date. Revenues and expenses are translated into RMB at average rates prevailing during the reporting period. The resulting foreign currency translation adjustment are recorded in accumulated other comprehensive income within equity. Since the RMB is not a fully convertible currency, all foreign exchange transactions involving RMB must take place either through the People’s Bank of China (the “PBOC”) or other institutions authorized to buy and sell foreign exchange. The exchange rates adopted for the foreign exchange transactions are the rates of exchange quoted by the PBOC. |
Cash and Cash Equivalents | (d) Cash and Cash Equivalents Cash and cash equivalents represent cash on hand, demand deposits and highly liquid investments placed with banks, which have original maturities of three months or less at the date of purchase and are readily convertible to known amounts of cash. Cash and cash equivalents maintained at banks consist of the following: As of December 31, 2019 2020 RMB denominated bank deposits with financial institutions in the PRC 182,180 225,323 RMB denominated bank deposits with financial institutions in Hong Kong SAR 1,212 1,692 US dollar denominated bank deposits with a financial institution in Hong Kong SAR 1,904 2,363 HK dollar denominated bank deposits with a financial institution in Hong Kong SAR 264 357 USD denominated bank deposits with a financial institution in BVI 28,494 58 USD denominated bank deposits with a financial institution in Cayman Islands — 3,437 USD denominated bank deposits with a financial institution in the USA — 47,105 |
Short-term Investments | (e) Short-term Investments The Company’s short-term investments represent investments in wealth management products which have the original maturities of less than twelve months. These wealth management products are managed by financial institutions in the PRC with variable interest rates referenced to performance of underlying assets. During the years ended December 31, 2018 and 2019, the Company invested RMB1,300,000 and RMB340,000 in financial products managed by a financial institution in the PRC, which were classified as available-for-sale securities and recorded at fair value. The terms of the financial products range between 7 days and 83 days . Unrealized holding gains, net of the related income tax effect, on available-for-sale securities are excluded from earnings and reported as a separate component of accumulated other comprehensive income until realized. Realized gains and losses from the sale of available-for-sale securities are determined on a specific-identification basis. The Company recorded a gain of RMB4,842 and RMB714 on the financial products, which was included in investment income in the combined and consolidated statements of comprehensive income (loss) for the years ended December 31, 2018 and 2019, respectively. For the short-term investments of RMB4,084,440 purchased during the year ended December 31, 2020, the Company elects the fair value option at the date of initial recognition in accordance with ASC 825. Changes in the fair value of these investments in the amount of RMB9,294 for the year ended December 31, 2020 are reflected on the consolidated statement of comprehensive income (loss) as “Investment income”. Fair value is estimated based on quoted prices provided by financial institutions at the end of each reporting period. |
Property and Equipment, Net | (f) Property and Equipment, Net Property and equipment are stated at cost less depreciation and any impairment. Property and equipment are depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Category Estimated Useful Life Electronic equipment 3 to 5 years Office furniture 5 years Leasehold improvement Shorter of the lease term or the estimated useful life of the assets Ordinary maintenance and repairs are charged to expenses as incurred, while replacements and betterments are capitalized. When items are retired or otherwise disposed of, income is charged or credited for the difference between net book value of the item disposed and proceeds realized thereon. |
Operating Leases | (g) Operating Leases The Company leases premises for offices under non-cancellable operating leases. There is no capital improvement funding, lease concessions, escalated rent provisions or contingent rent in the lease agreements. The Company has no legal or contractual asset retirement obligations at the end of the lease term. The Company early adopted Accounting Standard Codification (“ASC”) Topic 842 Leases Prior to the adoption of ASC Topic 842, operating leases were not recognized on the balance sheet of the Company, but payments made under operating lease are charged to the combined and consolidated statements of comprehensive income (loss) on a straight-line basis over the term of underlying lease. 2. Significant accounting policies (continued) Upon adoption of ASC Topic 842, Right of use (“ROU”) assets and lease liabilities are recognized upon lease commencement for operating leases based on the present value of lease payments over the lease term. As the rate implicit in the lease cannot be readily determined, the Company uses its incremental borrowing rate at the lease commencement date in determining the imputed interest and present value of lease payments. The incremental borrowing rate was determined based on the rate of interest that the Company would have to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The incremental borrowing rate is primarily influenced by the risk-free interest rate of China, the Company’s credit rating and lease term. The Company has elected not to recognize ROU assets or lease liabilities for leases with an initial term of 12 months or less and recognizes a single lease cost on a straight-line basis over the remaining lease term for the operating leases. |
Impairment of Long-lived Assets | (h) Impairment of Long-lived Assets Long-lived assets, including property and equipment and right of use assets are evaluated for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. Recoverability of a long-lived asset or asset group to be held and used is measured by a comparison of the carrying amount of an asset or asset group to the estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying value of an asset or asset group exceeds its estimated undiscounted future cash flows, an impairment loss is recognized by the amount that the carrying value exceeds the estimated fair value of the asset or asset group. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. Assets to be disposed are reported at the lower of carrying amount or fair value less costs to sell, and are no longer depreciated. No impairment of long-lived assets was recognized for any of the years presented. |
Revenue Recognition | (i) Revenue Recognition The Company derives revenues by (i) providing information and analytics services, including data services and analytics services and (ii) providing marketplace services, including promotion services and listing services. The Company recognizes revenues upon the satisfaction of its performance obligation (upon transfer of control of promised goods or services to customers) in an amount that reflects the consideration to which the Company expects to be entitled to in exchange for those goods or services, excluding amounts collected on behalf of third parties (for example, value-added taxes). For each performance obligation satisfied over time, the Company recognizes revenue over time by measuring the progress toward complete satisfaction of that performance obligation. If the Company does not satisfy a performance obligation over time, the performance obligation is satisfied at a point in time. The Company’s contracts with customers often include promises to transfer multiple products and services. For these contracts, the Company accounts for individual performance obligations separately if they are capable of being distinct and distinct within the context of the contract. Determining whether products and services are considered distinct performance obligations may require significant judgment. Judgment is also required to determine the stand-alone selling price (“SSP”) for each distinct performance obligation. In instances where SSP is not directly observable, such as when the Company does not sell the product or service separately, the Company determines the SSP using information that may include market conditions and other observable inputs. 2. Significant accounting policies (continued) Information and Analytics Services Data Services The Company derives revenues by providing access and analytics tools, including appraisal and rating, and land modules, based on its proprietary database of commercial real estate information, typically through a fixed monthly fee for its subscription-based services. The Company determines that the customer simultaneously receives and consumes benefits provided by the Company’s performance as the Company performs during the term of the contract and the earning process is straight-line. Revenues from subscription-based services are recognized on a straight-line basis over the subscription period. Analytics Services The Company derives revenues by providing customized research reports to customers. There are no contractual customer acceptance provisions. Revenues from customized research reports are recognized when the Company delivers the reports to customers, which is when the control over the report has been transferred to customers. The Company provides data monitoring and survey services over a period of time, generally less than one year. Revenues are recognized on a straight-line basis over the term of the agreement since the customer simultaneously receives and consumes benefits provided by the Company’s performance as the Company performs during the term of the contract and the earning process is straight-line. Marketplace Services Promotion Services The Company offers promotion services, consisting of a number of online and offline themed campaigns, including industry forums, periodic updates and online promotions to its customers to promote their brands. The promotion services contain a number of defined but not identical or similar activities to be performed over the period of one year. These activities are to fulfill the promotion service and are not separate promises in the contract. The Company determines that each day of the promotion service is distinct because the customer can benefit from each increment of service on its own (that is, it is capable of being distinct) and each increment of service is separately identifiable because no day of service significantly modifies or customizes another and no day of service significantly affects either the Company’s ability to fulfill another day of service or the benefit to the customer of another day of service. The Company determines that it is providing a series of distinct goods or services because the services provided each day are substantially the same, the customer simultaneously receives and consumes the benefits provided by the Company as the Company performs, and the same measure of progress would be used to measure the Company’s progress toward satisfying its promise to provide the promotion services. Revenues of promotion services are recognized on a straight-line basis over the period of one year. Listing Services Listing services comprise of commercial property listing and listing agent services for commercial properties. Commercial listing services entitle customers to post and make changes to information for commercial properties on the website and mobile apps for a specified period of time, which typically range from one 2. Significant accounting policies (continued) Prior to January 1, 2020, the Company also acted as an agent on behalf of Fang on listing services for commercial properties. The Company determined that it acted as an agent for the listing service because it did not obtain control of the listing service from Fang before the service was transferred to the customer. Revenues were recognized when Fang and its customers entered into a sales contract and reported on net basis. |
Contract Balances | (j) Contract Balances The Company bills its customers based upon contractual schedules, which normally is based on the passage of time. The timing of revenue recognition, billings and cash collections result in accounts receivable and contract liabilities (i.e. deferred revenue). Accounts receivable are recognized in the period when the Company has transferred products or provided services to its customers and when its right to consideration is unconditional. Amounts collected on accounts receivable are included in net cash provided by operating activities in the combined and consolidated statements of cash flows. The Company maintains an allowance for doubtful accounts for estimated losses inherent in its accounts receivable portfolio. In establishing the required allowance, management considers historical losses adjusted to take into account current market conditions and customers’ financial condition, the amount of receivables in dispute, and the current receivables aging and current payment patterns. The Company reviews its allowance for doubtful accounts on a customer-by-customer basis. Accounts receivable are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Deferred revenue (a contract liability) is recognized when the Company has an obligation to transfer goods or services to a customer for which the Company has received consideration from the customer, or for which an amount of consideration is due from the customer. |
Advertising Expenses | (k) Advertising Expenses Advertising costs are expensed as incurred and included in selling and marketing expenses in the combined and consolidated statements of comprehensive income (loss). For the years ended December 31, 2018, 2019 and 2020, advertising expenses were RMB805, RMB5,270 and RMB9,281, respectively. |
Research and Development Expenses | (l) Research and Development Expenses Research and development expenses are expensed as incurred and recorded in general and administrative expenses in the Company’s combined and consolidated statements of comprehensive income (loss). Research and development expenses were RMB20,761, RMB32,032 and RMB35,846 for the years ended December 31, 2018, 2019 and 2020, respectively. |
Employee Benefits | (m) Employee Benefits Pursuant to relevant PRC regulations, the Company is required to make contributions to various defined contribution plans organized by municipal and provincial PRC governments. The contributions are made for each PRC employee at rates ranging from 25.35% to 43.1% on a standard salary base as determined by local social security bureau. Contributions to the defined contribution plans are charged to the combined and consolidated statements of comprehensive income (loss) when the related service is provided. For the years ended December 31, 2018, 2019 and 2020, the costs of the Company’s obligations to the defined contribution plans amounted to RMB15,006, RMB14,281 and RMB12,064, respectively. The Company has no other obligation for the payment of employee benefits associated with these plans beyond the contributions described above. As a result of COVID-19, the PRC government exempted or reduced certain enterprises’ contributions to basic pension insurance, unemployment insurance, and work injury insurance (‘‘certain social insurance’’). The Company’s PRC subsidiaries and VIEs were exempted from contributions to certain social insurance between February 2020 and December 2020. The exemption was recognized as a reduction of cost of revenues and operating expenses in the amount of RMB5,396 for the year ended December 31, 2020. 2. Significant accounting policies (continued) |
Government Grants | (n) Government Grants Government grant is recognized when there is reasonable assurance that the Company will comply with the conditions attach to it and the grant will be received. Government grant for the purpose of giving immediate financial support to the Company with no future related costs or obligation is recognized in the Company’s combined and consolidated statements of comprehensive income (loss) when the grant becomes receivable. The government grants with certain operating conditions are recorded as liabilities when received and will be recorded as government grant when the conditions are met. RMB1,395, RMB903 and RMB5,997 of government grants were recognized for the years ended December 31, 2018, 2019 and 2020, respectively. |
Income Taxes | (o) Income Taxes Income taxes are accounted for under the asset and liability method. Deferred income tax assets and liabilities are recognized based on the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as operating loss and tax credit carryforwards, if any. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the periods in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates or tax laws is recognized in the combined and consolidated statements of comprehensive income (loss) in the period the change in tax rates or tax laws is enacted. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset deferred tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle deferred tax liabilities and assets on a net basis or their deferred tax assets and liabilities will be realized simultaneously. The Company reduces the carrying amounts of deferred tax assets by a valuation allowance, if based on the available evidence, it is “more-likely-than-not” that such assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed at each reporting period based on a “more-likely-than-not” realization threshold. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of futures profitability, the duration of statutory carryforward periods, the Company’s experience with operating loss and tax credit carryforwards, if any, not expiring. The Company recognizes in its financial statements the impact of a tax position if that position is “more-likely-than-not” to prevail based on the facts and technical merits of the position. Tax positions that meet the “more-likely-than-not” recognition threshold are measured at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. Interest and penalties recognized related to an unrecognized tax benefits are classified as income tax expense in the combined and consolidated statements of comprehensive income (loss). |
Share Based Compensation | (p) Share Based Compensation All grants of share-based awards to employees classified as equity awards are recognized in the financial statements based on their grant date fair values. The Company recognizes compensation cost for an equity classified award with only service conditions that has a graded vesting schedule on a straight-line basis over the requisite service period for the entire award, provided that the cumulative amount of compensation cost recognized at any date at least equals the portion of the grant date fair value of such award that is vested at that date. For equity awards that contain both a service condition and a performance condition, the Company recognizes compensation cost on a tranche-by-tranche basis. To the extent the required vesting conditions are not met resulting in the forfeiture of the share-based awards, previously recognized compensation expense relating to those awards is reversed. 2. Significant accounting policies (continued) |
Treasury Shares | (q) Treasury Shares Treasury shares is accounted for under the cost method. These shares have no voting rights and are not entitled to receive dividends and are excluded from the weighted average outstanding shares in calculation of earnings per share. |
Statutory Reserves | (r) Statutory Reserves In accordance with the laws applicable to China’s Foreign Investment Enterprises, the Company’s PRC subsidiaries registered as WFOEs have to make appropriations from its after-tax profit (as determined under the Accounting Standards for Business Enterprises as promulgated by the Ministry of Finance of PRC (“PRC GAAP”)) to a general reserve fund. The appropriation to the general reserve fund must be at least 10% of the after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the general reserve fund has reached 50% of the registered capital of the company. In addition, in accordance with the Company Laws of the PRC, the Company’s PRC subsidiaries and the VIEs registered as PRC domestic companies must make appropriations from its after-tax profit as determined under the PRC GAAP to non-distributable reserve funds including a statutory surplus fund and a discretionary surplus fund. The appropriation to the statutory surplus fund must be at least 10% of the after-tax profits as determined under the PRC GAAP. Appropriation is not required if the surplus fund has reached 50% of the registered capital of the company. Appropriation to the discretionary surplus fund is made at the discretion of the company. The use of the statutory reserves is restricted to the off-setting of losses or increasing capital of the respective company. All these reserves are not allowed to be transferred to their investors in terms of cash dividends, loans or advances, nor can they be distributed except under liquidation. The accumulated balance of the statutory reserves as of December 31, 2019 and 2020 were RMB2,765 and RMB2,765, respectively. |
Contingencies | (s) Contingencies In the normal course of business, the Company is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including, among others, government investigations, shareholder lawsuits, and non-income tax matters. An accrual for a loss contingency is recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. |
Segment Reporting | (t) Segment Reporting The Company uses the management approach in determining its operating segments. The management approach considers the internal reporting used by the Company’s chief operating decision maker for making decisions about the allocation of resources to and the assessment of the performance of the segments of the Company. Management has determined that the Company has one operating segment, which is the real estate information, analytics and marketplace services segment. Substantially all of the Company’s operations and customers are located in the PRC. Consequently, no geographic information is presented. 2. Significant accounting policies (continued) |
Fair Value Measurements | (u) Fair Value Measurements The Company applies ASC Topic 820, Fair Value measurements and Disclosures ASC Topic 820 establishes 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. ASC Topic 820 establishes three levels of inputs that may be used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: ● Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. ● Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. ● Level 3 inputs are unobservable inputs for the asset or liability. The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety. In situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects management’s own judgments about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by management based on the best information available in the circumstances. Fair Value of Financial Instruments Financial assets and liabilities of the Company primarily consist of cash and cash equivalents, short-term investments, accounts receivable, other receivables included in prepaid expenses and other current assets, amounts due from related parties–current, accounts payable, amounts due to a related party, income taxes payable, accrued expenses and other liabilities, long-term lease liabilities and warrants in other non-current liabilities. The carrying amounts of cash and cash equivalents, accounts receivable, other receivables included in prepaid expenses and other current assets, amounts due from related parties-current, accounts payable, income taxes payable and accrued expenses and other liabilities as of December 31, 2019 and 2020, approximate their fair values due to short maturity. The carrying amount of long-term lease liabilities approximates fair value as the related interest rates approximate rates currently offered by financial institutions for similar debt instruments of comparable maturities. 2. Significant accounting policies (continued) Recurring Fair Value Measurements Short-term investments include financial products issued by a financial institution, which are valued based on prices per units quoted by the financial institution. They are categorized in Level 2 of the fair value hierarchy. Short-term investments consisted of the following: As of December 31, 2019 2020 Aggregate cost basis 125,000 391,360 Gross unrealized holding gain — 311 Aggregate fair value 125,000 391,671 The tables below reflect the reconciliation from the opening balance to the closing balance for recurring fair value measurements of the fair value hierarchy for the years ended December 31, 2018, 2019 and 2020: For the Year Ended December 31, 2018 January 1, Included in December 31, 2018 Purchase Sell earnings 2018 Assets Short-term investments — 1,300,000 1,304,842 4,842 — Total — 1,300,000 1,304,842 4,842 — For the Year Ended December 31, 2019 January 1, Included in December 31, 2019 Purchase Sell earnings 2019 Assets Short-term investments — 340,000 215,714 714 125,000 Total — 340,000 215,714 714 125,000 For the Year Ended December 31, 2020 January 1, Included in December 31, 2020 Purchase Sell earnings 2020 Assets Short-term investments 125,000 4,084,440 3,827,063 9,294 391,671 Total 125,000 4,084,440 3,827,063 9,294 391,671 The Company classifies the warrants within Level 3 in the fair value hierarchy because it utilizes unobservable inputs to determine their fair value on a recurring basis. See Note 6. The Company’s non-financial assets, such as property and equipment and right of use assets, would be measured at fair value only if they were determined to be impaired. 2. Significant accounting policies (continued) |
Earnings (Loss) Per Share | (v) Earnings (Loss) Per Share Basic earnings (loss) per share is computed by dividing net income (loss) attributable to holders of ordinary shares by the weighted average number of ordinary shares and ordinary share equivalents outstanding during the period using the two-class method. Vested restricted shares are included in the calculation of the weighted-average number of ordinary shares as ordinary share equivalents. Under the two-class method, any net income is allocated between ordinary shares and other participating securities based on their participating rights. A net loss is not allocated to participating securities when the participating securities does not have contractual obligation to share losses. Diluted earnings (loss) per share is calculated by dividing net income (loss) attributable to ordinary shareholders by the weighted average number of ordinary shares used in calculating basic net earnings per ordinary share and dilutive ordinary equivalent shares outstanding during the period. Dilutive ordinary equivalent shares consist of ordinary shares issuable upon the exercise of outstanding share options, unvested restricted shares and warrants (using the treasury stock method). Ordinary equivalent shares are calculated based on the most advantageous conversion rate or exercise price from the standpoint of the security holder. Ordinary equivalent shares are not included in the denominator of the diluted earnings per share calculation when inclusion of such shares would be anti-dilutive. |
Recently Issued Accounting Standards | (w) Recently Issued Accounting Standards In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842). Financial Instruments — Credit Losses In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement |
Description of principal acti_2
Description of principal activities and organization (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Description of principal activities and organization | |
Schedule of assets and liabilities of VIE included in combined financial statements | As of December 31, 2019 2020 Total assets 1,113 1,957 Total liabilities 452 386 |
Schedule of financial performance and cash flows of VIE included in the combined financial statements | For the Year Ended December 31, 2018 2019 2020 Revenues — 26 — Net loss (134) (705) (1,755) Net cash used in operating activities (71) (318) (1,362) Net cash provided by financing activities* 1,500 — 1,910 * Net cash provided by financing activity represents capital injection in the VIEs by nominee equity holders, which was eliminated upon consolidation. |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Significant accounting policies | |
Schedule of the allocation of expenses from the Parent Company | For the period between For the Year Ended January 1 and December 31, June 11, 2018 2019 Cost of revenues 4,622 2,309 Selling and marketing expenses 441 305 General and administrative expenses 4,856 1,723 Total 9,919 4,337 |
Cash and cash equivalents maintained at banks | As of December 31, 2019 2020 RMB denominated bank deposits with financial institutions in the PRC 182,180 225,323 RMB denominated bank deposits with financial institutions in Hong Kong SAR 1,212 1,692 US dollar denominated bank deposits with a financial institution in Hong Kong SAR 1,904 2,363 HK dollar denominated bank deposits with a financial institution in Hong Kong SAR 264 357 USD denominated bank deposits with a financial institution in BVI 28,494 58 USD denominated bank deposits with a financial institution in Cayman Islands — 3,437 USD denominated bank deposits with a financial institution in the USA — 47,105 |
Estimated useful life of property and equipment | Category Estimated Useful Life Electronic equipment 3 to 5 years Office furniture 5 years Leasehold improvement Shorter of the lease term or the estimated useful life of the assets |
Summary of short-term investments | As of December 31, 2019 2020 Aggregate cost basis 125,000 391,360 Gross unrealized holding gain — 311 Aggregate fair value 125,000 391,671 |
Summary of reconciliation from the opening balance to the closing balance for recurring fair value measurements of the fair value hierarchy | For the Year Ended December 31, 2018 January 1, Included in December 31, 2018 Purchase Sell earnings 2018 Assets Short-term investments — 1,300,000 1,304,842 4,842 — Total — 1,300,000 1,304,842 4,842 — For the Year Ended December 31, 2019 January 1, Included in December 31, 2019 Purchase Sell earnings 2019 Assets Short-term investments — 340,000 215,714 714 125,000 Total — 340,000 215,714 714 125,000 For the Year Ended December 31, 2020 January 1, Included in December 31, 2020 Purchase Sell earnings 2020 Assets Short-term investments 125,000 4,084,440 3,827,063 9,294 391,671 Total 125,000 4,084,440 3,827,063 9,294 391,671 |
ACCOUNTS RECEIVABLE, NET OF A_2
ACCOUNTS RECEIVABLE, NET OF ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ACCOUNTS RECEIVABLE, NET OF ALLOWANCE FOR DOUBTFUL ACCOUNTS | |
Schedule of accounts receivable net of allowance for doubtful accounts | As of December 31, 2019 2020 Accounts receivable 29,085 46,898 Allowance for doubtful accounts (4,842) (17,218) Accounts receivable, net of allowance for doubtful accounts 24,243 29,680 |
Schedule of allowance for doubtful accounts | For the Year Ended December 31, 2018 2019 2020 Balance as of the beginning of the year — — 4,842 Additions charged to bad debt expense — 4,842 12,376 Balance as of the end of the year — 4,842 17,218 |
RIGHT OF USE ASSETS (Tables)
RIGHT OF USE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
RIGHT OF USE ASSETS | |
Schedule of ROU assets and their amortization | As of December 31, 2019 2020 Right of use assets 54,579 54,579 Less: Accumulated amortization (4,984) (10,210) Right of use assets 49,595 44,369 |
Schedule of rental expense allocation | For the year ended December 31, 2019 2020 Cost of revenues 2,108 1,481 General and administrative expenses 1,802 1,588 Selling and marketing expenses 3,711 4,552 Total rental expenses 7,621 7,621 |
Schedule of future lease payments under operating lease liabilities | Years Ended December 31, RMB’000 2021 — 2022 — 2023 5,921 2024 7,621 2025 7,621 Thereafter 15,242 Total undiscounted lease payments 36,405 Less: Imputed interest (8,978) Present value of lease liabilities balance 27,427 Amounts due within 12 months — Long-term lease liabilities 27,427 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
Schedule of accrued expenses and other current liabilities | As of December 31, 2019 2020 Guarantee liability 14 — 547,069 Accrued payroll and employee benefits 61,190 63,032 Others 23,060 27,592 Total 84,250 637,693 |
OTHER NON-CURRENT LIABILITIES (
OTHER NON-CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other non-current liabilities | |
Schedule of other non-current liabilities | As of December 31, Note 2019 2020 Unrecognized tax benefits 8 38,383 55,943 Deferred income tax liabilities 8 — 62,044 Warrants 1,374 — Total 39,757 117,987 |
summary of the outstanding and exercisable warrants balance | For the year ended December 31, Number of Warrants 2019 2020 Outstanding as of the beginning of the year — 4,662,411 Issuance 6,977,150 — Cancelled (2,314,739) — Outstanding as of the end of the year 4,662,411 4,662,411 |
Schedule of fair value assumptions of warrants | As of December 31, 2019 2020 Expected volatility 42% 48% Expected dividends yield nil nil Expected term (in years) 2.73 ~2.84 years 1.73 ~1.84 years Risk-free interest rate per annum 1.6% 0.12%~0.13% |
Schedule of components effecting the change in fair value | For the Year Ended December 31, 2019 2020 Balance as of the beginning of the year — 1,374 Issuance 207 — Change in fair value 1,152 (1,359) Foreign currency translation adjustment 15 (15) Balance as of the end of the year 1,374 — |
REVENUES (Tables)
REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
REVENUES | |
Schedule of revenue | For the Year Ended December 31, 2018 2019 2020 Information and analytics services Data services 125,147 138,643 166,264 Analytics services 81,054 129,905 137,088 Subtotal 206,201 268,548 303,352 Marketplace services Promotion services 189,718 244,154 301,962 Listing services 25,105 66,948 30,596 Subtotal 214,823 311,102 332,558 Total 421,024 579,650 635,910 |
Schedule of changes in deferred revenue | For the Year Ended December 31, 2018 2019 2020 Deferred revenue as of the beginning of the year 137,860 143,254 203,531 Cash received in advance, net of VAT 423,354 544,140 579,623 Revenue recognized from opening balance of deferred revenue (127,630) (142,697) (198,722) Revenue recognized from deferred revenue arising during current year (282,087) (341,166) (360,291) Reclassification of VAT payable as of January 1, 2018 as a result of adoption of ASC Topic 606 (8,243) — — Deferred revenue as of the end of the year 143,254 203,531 224,141 |
TAXATION (Tables)
TAXATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
TAXATION | |
Schedule of the components of income (loss) before income taxes | For the Year Ended December 31, 2018 2019 2020 PRC, excluding Hong Kong SAR 194,154 291,928 335,102 Hong Kong SAR 1,314 (427) (515) Cayman Islands — (1,354) (543,135) BVI — 41 (640) USA — — 286 Total income (loss) before income taxes 195,468 290,188 (208,902) |
Schedule of income tax expenses | For the Year Ended December 31, 2018 2019 2020 Current income tax expense - PRC, excluding Hong Kong SAR 29,719 44,737 48,938 Current income tax expense - Hong Kong SAR 329 — — Deferred income tax expense - PRC, excluding Hong Kong SAR — — 60,516 Total income tax expense 30,048 44,737 109,454 |
Schedule of reconciliation between the PRC statutory income tax rate and the actual income tax rate | For the Year Ended December 31, 2018 2019 2020 PRC statutory income tax rate 25.0 % 25.0 % (25.0) % Increase (decrease) in effective income tax rate resulting from: Research and development bonus deduction (1.7) % (3.3) % (5.9) % Non-deductible selling, general and administrative expenses 1.6 % 1.4 % 1.6 % Effect of tax rate differential for non-PRC entities — 0.1 % 65.1 % Effect of preferential tax rates (9.5) % (9.2) % (14.7) % Effect of withholding tax for undistributed earnings from PRC subsidiaries — — 29.7 % Change in valuation allowance — 0.1 % 0.3 % Interest and penalties on unrecognized tax benefits — 1.3 % 1.3 % Actual income tax rate 15.4 % 15.4 % 52.4 % |
Schedule of the principal components of deferred income tax assets | As of December 31, 2019 2020 RMB RMB Deferred income tax assets Net operating loss carry forwards 273 729 Allowance for doubtful account — 1,530 Long-term lease liabilities 5,652 4,114 Total deferred income tax assets, gross 5,925 6,373 Less: Valuation allowance (273) (729) Total deferred income tax assets, net 5,652 5,644 Deferred income tax liabilities Short-term investments — 46 Right of use assets 5,652 4,114 Withholding income tax on distributable profits of the PRC subsidiaries — 62,000 Total deferred income tax liabilities, gross 5,652 66,160 Net deferred income tax assets (included in other noncurrent assets) — 1,528 Net deferred income tax liabilities (included in other noncurrent liabilities) — 62,044 |
Summary of movements of the valuation allowance | For the Year Ended December 31, 2018 2019 2020 Balance as of the beginning of the year (24) (78) (273) Additions of valuation allowance (54) (195) (456) Balance as of the end of the year (78) (273) (729) |
Schedule of reconciliation between the beginning and ending amount of total unrecognized tax benefits | For the Year Ended December 31, 2018 2019 2020 Balance as of the beginning of the year — 15,496 34,710 Increase relating to prior year tax positions — 6,051 — Increase related to current year tax positions 15,484 14,392 21,966 Settlement — (1,235) (7,100) Foreign currency translation adjustment 12 6 (23) Balance as of the end of the year 15,496 34,710 49,553 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
RELATED PARTY TRANSACTIONS | |
Schedule of related party transactions | For the years ended December 31, 2018, 2019 and 2020, significant related party transactions were as follows: For the Year Ended December 31, Note 2018 2019 2020 Listing service revenue from Fang 9 (1) 4,543 26,382 — Analytics services revenue 9 (2) — 17,296 11,006 Costs and expenses allocated from Fang, excluding the share-based compensation costs and expenses related to Fang’s share-based awards 2 (a) 9,919 4,337 — Rent expenses 4 7,621 7,621 7,621 IT service fee 9 (3) — 5,214 7,500 Software license fee 9 (4) — 278 500 Repayment of cash advance from related parties 9 (6) 3,815 — — Share-based compensation expenses related to Fang’s share-based awards 9 (7) 6,808 3,894 — Disposal of subsidiaries to Fang 9(8) — — 4,325 Advance to a noncontrolling interest holder 9 (9) — — 3,090 Amounts due from related parties - current were as follows: As of December 31, Note 2019 2020 Prepayments to and amounts due from related parties Beihai Long Island Hotel Co., Ltd 9 (2) 1,500 — Beijing CheTianXia Information Co., Ltd. 9 (2) 3,320 — China Enterprise Evaluation Association 9 (9) — 3,090 Total 4,820 3,090 Amounts due from a related party - noncurrent was as follows: As of December 31, Note 2019 2020 Amounts due from Fang - noncurrent Gross amount 14 — 547,069 Allowance for doubtful accounts 14 — (547,069) Total — — Amounts due to a related party was as follows: As of December 31, Note 2019 2020 Amounts due to a related party Fang 9 (5) 7,734 156 Total 7,734 156 (1) The Company acted as an agent on behalf of Fang on listing services for commercial properties. The Company recorded the revenues on net basis when Fang and its customers enter into a sales contract. On January 1, 2020, the Company and Fang agreed to terminate the cooperation agreement. 9. RELATED PARTY TRANSACTIONS (continued) (2) Beijing CheTianXia Information Co., Ltd. (“CheTianXia”), Guangxi Pukai Xingye Hotel Investment Co., Ltd (“Guangxi Pukai”) and Beihai Long Island Hotel Co, Ltd. (“Beihai Long Island”) are companies under the control of Mr. Vincent Tianquan Mo, the Company’s chairman of the board of directors and the controlling shareholder. On August 26, 2019, the Company entered into a contract with CheTianXia and Guangxi Pukai, pursuant to which the Company was engaged in providing analytics services for the sale of land use right assets and the total contract consideration was RMB20,000, over a period of shorter of (1) eighteen months effective from January 1, 2019 or (2) upon completion of the sales of the assets. On August 26, 2019, the Company entered into a contract with Beihai Long Island, pursuant to which the Company was engaged in providing analytics services for the sales of properties and the total contract consideration was RMB10,000, over a period of shorter of (1) twelve months effective from July 1, 2019 or (2) upon completion of the sales of the properties. The transactions were approved by the Company’s Board of Director on August 22, 2019. The Company recognized revenue of analytics services on a cumulative catch-up basis since the effective dates of the contracts and both of the contracts matured on June 30, 2020. The Company recognized analytics services revenue from these three related parties of RMB17,296 and RMB11,006 for the years ended December 31, 2019 and 2020, respectively. (3) The Company continued to utilize Fang’s server and other IT services after the separation and incurred IT service fee of RMB5,214 and RMB7,500 during the period from June 11, 2019 to December 31, 2019 and the year ended December 31, 2020, respectively. The Company paid RMB7,500 and RMB7,950 to Fang for the IT service in 2019 and 2020, respectively. The balances of RMB2,286 and RMB1,836 represented the IT service fee prepaid to Fang as of December 31, 2019 and 2020, respectively, which were offset with an equivalent amount due to Fang according to the agreement described in Note 9 (5). (4) The Company entered into a software license agreement with Fang, pursuant to which, Fang agrees to license the right of using certain of their software at annual royalty fee of RMB500. The term of the software license agreement is 10 years. The agreement is effective from June 11, 2019. RMB278 and RMB500 of software license fee incurred during the period from June 11, 2019 to December 31, 2019 and the year ended December 31, 2020, respectively. The Company did not settle the expense in cash in 2019 and made the payment of RMB500 in 2020. The balances of RMB278 represented the software license fee payable to Fang as of December 31, 2019 and 2020, which were offset with an equivalent amount due from Fang according to the agreement described in Note 9 (5). (5) After the completion of the separation, there were certain cash collections and cash payments on behalf of each other between the Company and Fang from June 11, 2019 to December 31, 2020. In November 2019, the Company entered into an agreement with Fang to settle all such balances with Fang on a quarterly basis in net amounts. The balances of RMB7,734 and RMB156 as of December 31 ,2019 and 2020 represented the net amount due to Fang, after offsetting with an equivalent amount due from and prepayments to Fang of RMB56,850 and RMB84,831 as of December 31 ,2019 and 2020, respectively. (6) The amounts due to Beijing Heng Xin Jia Hua Investment Consulting Limited and Beijing Jin Hua Ming Advertising Limited as of December 31, 2017, both of which were jointly controlled by Mr. Vincent Tianquan Mo, and a third-party individual, represent cash advances the Company received from the respective companies. The Company settled the balances of RMB3,815 with these two companies in cash in January 2018. (7) Prior to the separation, certain of the Company’s employees participated in Fang’s various stock related award incentive plans. Share-based compensation expenses related to Fang’s share-based awards allocated from Fang were RMB6,808 and RMB3,894 for the year ended December 31, 2018 and during the period from January 1, 2019 to June 11, 2019, respectively. See Note 10 in details. (8) The Company disposed of two of its subsidiaries in Chengdu to Fang in April 2020 at a consideration of RMB4,325, which was the carrying amount of the net assets of the subsidiaries as of the disposal date. The Company collected RMB4,325 in cash in October 2020. (9) The amount due from China Enterprise Evaluation Association as of December 31, 2020, which was one of the noncontrolling interest holders of Shouzheng, represents cash advances provided by the Company. The Company collected the balance from China Enterprise Evaluation Association in cash in March 2021. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Schedule of the grant date fair values of options granted | For the period between For the period between January 1 and June 11, June 11 and December 31, For the year ended December 31, 2019 2019 2020 Expected volatility 45% 38.7%~45.4% 32% Expected dividends yield nil nil nil Expected term 10 years 0.55~9.99 years 10 years Risk-free interest rate per annum 2.08% 1.9%~2.2% 0.6% Exercise multiple 2.2-2.8 2.2~2.8 2.2~2.8 |
Schedule of shared-based compensation expense | For the Year Ended December 31, 2018 2019 2020 Cost of revenues 2,157 1,537 1,772 Selling expenses 366 787 901 General and administrative expenses 4,285 5,910 5,939 Total 6,808 8,234 8,612 |
Stock Option | |
Schedule of share-based award activity | Weighted Weighted Average Number of Average Remaining Aggregate Share Exercise Price Contractual Intrinsic Options US$ Years Value US$ Outstanding as of January 1, 2020 7,227,971 0.001 4.97 26,302,586 Granted 4,785,365 1.35 — — Forfeited (408,825) 0.88 — — Expired (386,965) 0.001 — — Outstanding as of December 31, 2020 11,217,546 0.54 6.99 15,993,085 Vested and expected to vest as of December 31, 2020 (a) 8,462,425 0.36 6.31 13,615,383 Exercisable as of December 31, 2020 5,707,303 0.001 4.98 11,237,680 (a) Vested and expected to vest as of December 31, 2020 represents fully vested CIH’s share options and unvested CIH’s share options held by the Company’s and Fang’s employees, for which the requisite service period has not been rendered but that are expected to vest based on the achievement of a performance condition as of December 31, 2020. |
Unvested restricted shares | |
Schedule of share-based award activity | Weighted Average Grant Date Fair Number of Shares Value US$ Unvested as of January 1, 2020 672,030 0.34 Vested (306,977) 0.34 Forfeited (63,578) 0.34 Unvested as of December 31, 2020 310,475 0.34 |
Fang | |
Schedule of weighted average grant date fair value of option | The fair values of the share options granted by Fang to the Company’s employees for the year ended December 31, 2018, and during the period from January 1, 2019 to June 11, 2019 are as follows: For the period between January 1 Year Ended December 31, and June 11, 2018 2019 US$ US$ Weighted average grant date fair value of option per share — 2.88 Aggregate grant date fair value of options — 773,280 |
Fang | Stock Option | |
Schedule of share-based award activity | Weighted Weighted Average Number of Average Remaining Aggregate Share Exercise Price Contractual Intrinsic Options US$ Years Value US$ Outstanding as of January 1, 2020 590,353 13.03 7.19 — Forfeited (16,010) 10.56 — — Expired (73,215) 16.39 — — Outstanding as of December 31, 2020 501,128 12.62 6.69 — Vested and expected to vest as of December 31, 2020 (a) 405,259 14.13 6.29 — Exercisable as of December 31, 2020 309,390 16.57 5.64 — (a) Vested and expected to vest as of December 31, 2020 represents fully vested Fang’s share options and unvested Fang’s share options held by the Company’s employees, for which the requisite service period has not been rendered but that are expected to vest based on the achievement of a performance condition as of December 31, 2020. |
Fang | Unvested restricted shares | |
Schedule of share-based award activity | Weighted Average Grant Number of Shares Date Fair Value US$ Unvested as of January 1, 2020 62,858 17.55 Vested (28,320) 17.55 Forfeited (6,168) 17.55 Unvested as of December 31, 2020 28,370 17.55 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
EARNINGS (LOSS) PER SHARE | |
Schedule of basic and diluted earnings (loss) per share | For the Year Ended December 31, 2018 2019 2020 Numerator: Net income (loss) attributable to Class A and Class B ordinary shareholders 165,420 245,451 (318,052) Denominator: Weighted average number of Class A and Class B ordinary shares outstanding 89,399,642 89,399,642 89,842,465 Weighted average number of vested restricted shares — 115,511 — Denominator for basic net income per Class A and Class B ordinary share 89,399,642 89,515,153 89,842,465 Dilutive effect of share options and unvested restricted shares — 30,557 — Denominator for diluted net income per Class A and Class B ordinary share 89,399,642 89,545,710 89,842,465 Earnings (loss) per Class A and Class B ordinary share —Basic 1.85 2.74 (3.54) —Diluted 1.85 2.74 (3.54) |
Schedule of potential dilutive net income per share | For the Year Ended December 31, 2018 2019 2020 Warrants — 4,662,411 4,662,411 Share options — 7,227,971 11,217,546 Unvested restricted shares — — 310,475 |
PARENT COMPANY ONLY CONDENSED_2
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | |
Schedule of condensed balance sheets | As of December 31, 2019 2020 ASSETS Current assets: Cash and cash equivalents — 3,436 Prepaid expenses and other current assets 2 2 Total current assets: 2 3,438 Non-current assets: Amounts due from a related party-non current, less allowance for doubtful accounts of nil and RMB 547,069 as of December 31, 2019 and 2020, respectively — — Investments in subsidiaries and consolidated VIEs 22,762 257,569 Total assets 22,764 261,007 LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) Current liabilities: Amounts due to a related party 338 933 Accrued expenses and other liabilities 70 547,520 Total current liabilities 408 548,453 Non-current liabilities: Other non-current liabilities 1,374 — Total liabilities 1,782 548,453 Commitments and contingencies — — Shareholders’ equity (deficit) Class A ordinary shares (US$0.001 per share, 1,000,000,000 shares authorized for Class A and Class B in aggregate as of December 31, 2019 and 2020; 72,475,630 shares issued as of December 31, 2019 and 2020; 65,762,936 and 66,411,428 shares outstanding as of December 31, 2019 and 2020, respectively) 500 500 Class B ordinary shares (US$0.001 per share, 1,000,000,000 shares authorized for Class A and Class B in aggregate as of December 31, 2019 and 2020; 23,636,706 shares issued and outstanding as of December 31, 2019 and 2020; each Class B ordinary share is convertible into one Class A ordinary share) 163 163 Treasury shares (46) (42) Capital deficit (135,179) (126,571) Retained earnings 155,324 (162,728) Accumulated other comprehensive income 220 1,232 Total shareholders’ equity (deficit) 20,982 (287,446) Total liabilities and shareholders’ equity (deficit) 22,764 261,007 |
Schedule of condensed statements of comprehensive income (loss) | For the Year Ended December 31, 2019 2020 Total operating expenses (202) (544,494) Change in fair value of the warrants (1,152) 1,359 Share of income from subsidiaries and consolidated VIEs 246,805 225,083 Income (loss) before income taxes 245,451 (318,052) Income tax expense — — Net income (loss) 245,451 (318,052) |
Schedule of condensed statements of cash flows | For the Year Ended December 31, 2019 2020 Net cash provided by operating activities — 3,634 Effect of foreign currency exchange rate changes on cash and cash equivalents — (198) Net increase in cash and cash equivalents — 3,436 Cash and cash equivalents as of the beginning of the year — — Cash and cash equivalents as of the end of the year — 3,436 |
Description of principal acti_3
Description of principal activities and organization (Details) ¥ in Thousands | Jun. 11, 2019 | Jun. 11, 2018CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Aug. 30, 2020 | Dec. 09, 2019 |
Variable Interest Entity [Line Items] | |||||||
Ratio applied for equity awards due to separation | 1 | ||||||
Assets and liabilities of VIE | |||||||
Total assets | ¥ 757,337 | ¥ 425,173 | |||||
Total liabilities | 1,043,484 | 404,191 | |||||
Financial performance and cash flows of VIE | |||||||
Revenues | 635,910 | 579,650 | ¥ 421,024 | ||||
Net loss | (318,356) | 245,451 | 165,420 | ||||
Net cash used in operating activities | 327,544 | 334,039 | 202,519 | ||||
Net cash provided by financing activities | (160,194) | (274,385) | |||||
Beijing Zhong Zhi Academy | |||||||
Variable Interest Entity [Line Items] | |||||||
Equity interest acquired (in percent) | 44.00% | ||||||
Individual shareholder of Beijing Zhong Zhi Academy | Beijing Zhong Zhi Academy | |||||||
Variable Interest Entity [Line Items] | |||||||
Equity interest acquired (in percent) | 56.00% | ||||||
Shareholder of Shouzheng, Jiatianxia Credit Management | Shouzheng | |||||||
Variable Interest Entity [Line Items] | |||||||
Equity interest acquired (in percent) | 67.00% | ||||||
VIEs | |||||||
Variable Interest Entity [Line Items] | |||||||
Registered capital | ¥ 6,500 | 1,500 | |||||
Exclusive option to acquire, percentage of equity interests | 100.00% | ||||||
Assets and liabilities of VIE | |||||||
Total assets | ¥ 1,957 | 1,113 | |||||
Total liabilities | 386 | 452 | |||||
Financial performance and cash flows of VIE | |||||||
Revenues | 26 | ||||||
Net loss | (1,755) | (705) | (134) | ||||
Net cash used in operating activities | (1,362) | ¥ (318) | (71) | ||||
Net cash provided by financing activities | 1,910 | ¥ 1,500 | |||||
Zhong Zhi Hong Yuan | |||||||
Variable Interest Entity [Line Items] | |||||||
Registered capital | ¥ 1,500 | ||||||
VIE assets pledged or collateralized | ¥ 0 | ||||||
Equity Pledge Agreement | |||||||
Variable Interest Entity [Line Items] | |||||||
Term of agreement | 10 years | ||||||
Exclusive Technical Consultancy and Services Agreement | |||||||
Variable Interest Entity [Line Items] | |||||||
Term of agreement | 10 years | ||||||
Number of days for advance notice required for termination of agreement | 30 days | ||||||
Operating Agreement | |||||||
Variable Interest Entity [Line Items] | |||||||
Term of agreement | 10 years | ||||||
Number of days for advance notice required for termination of agreement | 30 days | ||||||
Exclusive Call Option Agreement | |||||||
Variable Interest Entity [Line Items] | |||||||
Term of agreement | 10 years | ||||||
Maximum material contract allowed VIE to enter without prior consent of primary beneficiary | ¥ 100,000 | ||||||
Loan Agreement | |||||||
Variable Interest Entity [Line Items] | |||||||
Term of agreement | 10 years | ||||||
Aggregate amount of loans to equity holders | ¥ 1,500 |
Significant accounting polici_4
Significant accounting policies - Basis of Presentation and principles of consolidation (Details) ¥ in Thousands, $ in Thousands | 5 Months Ended | 12 Months Ended | |||
Jun. 11, 2019USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | |
Allocation of Expenses | |||||
Selling and marketing expenses | ¥ | ¥ 112,414 | ¥ 99,020 | ¥ 77,731 | ||
General and administrative expenses | ¥ | ¥ 85,700 | ¥ 77,773 | ¥ 66,993 | ||
Fang | |||||
Allocation of Expenses | |||||
Cost of revenues | $ 2,309 | $ 4,622 | |||
Selling and marketing expenses | 305 | 441 | |||
General and administrative expenses | 1,723 | 4,856 | |||
Total | $ 4,337 | $ 9,919 |
Significant accounting polici_5
Significant accounting policies - Cash, Cash Equivalents and Short-term Investments (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Short-term Investments [Abstract] | |||
Gains on sale of short-term investments | ¥ 340,000 | ¥ 1,300,000 | |
Short-term Investments | ¥ 391,671 | 125,000 | |
Investment Income, Net | 9,294 | 714 | 4,842 |
Purchase of short-term investments | 4,084,440 | 340,000 | 1,300,000 |
Short-term Investments | |||
Short-term Investments [Abstract] | |||
Investment Income, Net | ¥ 714 | ¥ 4,842 | |
Short-term Investments | Minimum | |||
Cash and Cash Equivalents [Line Items] | |||
Term Of Maturities | 7 days | 7 days | |
Short-term Investments | Maximum | |||
Cash and Cash Equivalents [Line Items] | |||
Term Of Maturities | 83 days | 83 days | |
Demand Deposits | RMB | China | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and Due from Banks | 225,323 | ¥ 182,180 | |
Demand Deposits | RMB | Hong Kong | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and Due from Banks | 1,692 | 1,212 | |
Demand Deposits | USD | Hong Kong | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and Due from Banks | 2,363 | 1,904 | |
Demand Deposits | USD | British Virgin Islands | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and Due from Banks | 58 | 28,494 | |
Demand Deposits | USD | Cayman Islands | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and Due from Banks | 3,437 | ||
Demand Deposits | USD | USA | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and Due from Banks | 47,105 | ||
Demand Deposits | HKD | Hong Kong | |||
Cash and Cash Equivalents [Line Items] | |||
Cash and Due from Banks | ¥ 357 | ¥ 264 |
Significant accounting polici_6
Significant accounting policies - Property and equipment (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment | |||
Impairment of long-lived assets | ¥ 0 | ¥ 0 | ¥ 0 |
Electronic equipment | Minimum | |||
Property, Plant and Equipment | |||
Property plant and equipment useful life | 3 years | ||
Electronic equipment | Maximum | |||
Property, Plant and Equipment | |||
Property plant and equipment useful life | 5 years | ||
Office furniture | |||
Property, Plant and Equipment | |||
Property plant and equipment useful life | 5 years |
Significant accounting polici_7
Significant accounting policies - Financial Instruments and Revenue recognition (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Promotion services | |
Disaggregation of Revenue [Line Items] | |
Period of revenue recognition | 1 year |
Listing services | Minimum | |
Disaggregation of Revenue [Line Items] | |
Service period | 1 month |
Listing services | Maximum | |
Disaggregation of Revenue [Line Items] | |
Service period | 3 months |
Analytics services | Maximum | |
Disaggregation of Revenue [Line Items] | |
Service period | 1 year |
Significant accounting polici_8
Significant accounting policies - Short-term investments (Details) - Short-term Investments - Level 2 - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Aggregate cost basis | ¥ 391,360 | ¥ 125,000 |
Gross unrealized holding gain | 311 | |
Aggregate fair value | ¥ 391,671 | ¥ 125,000 |
Significant accounting polici_9
Significant accounting policies - Reconciliation from the opening balance to the closing balance for recurring fair value measurements of the fair value hierarchy (Details) - Recurring - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at the beginning | ¥ 125,000 | ||
Purchase | 4,084,440 | ¥ 340,000 | ¥ 1,300,000 |
Sell | 3,827,063 | 215,714 | 1,304,842 |
Included in earnings | 9,294 | 714 | 4,842 |
Balance at the end | 391,671 | 125,000 | |
Short-term Investments | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at the beginning | 125,000 | ||
Purchase | 4,084,440 | 340,000 | 1,300,000 |
Sell | 3,827,063 | 215,714 | 1,304,842 |
Included in earnings | 9,294 | 714 | ¥ 4,842 |
Balance at the end | ¥ 391,671 | ¥ 125,000 |
Significant accounting polic_10
Significant accounting policies - Additional Information (Details) ¥ in Thousands | Jun. 11, 2019 | Dec. 31, 2020CNY (¥)segment | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Significant Accounting Policies [Line Items] | ||||
Advertising Expense | ¥ 9,281 | ¥ 5,270 | ¥ 805 | |
Research and development expenses | 35,846 | 32,032 | 20,761 | |
Employee Benefits | ||||
Defined contribution cost | 12,064 | 14,281 | 15,006 | |
Recognized reduction of cost of revenues and operating expenses | 5,396 | |||
Government Grants | ||||
Government grants | 5,997 | 903 | ¥ 1,395 | |
Share Based Compensation | ||||
Ratio applied for equity awards due to separation | 1 | |||
Statutory Reserves | ||||
Accumulated statutory reserves | ¥ 2,765 | ¥ 2,765 | ||
Segment Reporting | ||||
Number of operating segment | segment | 1 | |||
Maximum | ||||
Employee Benefits | ||||
Contributions for PRC employees as a percent of standard salary base | 43.10% | |||
Minimum | ||||
Employee Benefits | ||||
Contributions for PRC employees as a percent of standard salary base | 25.35% | |||
General Reserve Fund | Maximum | ||||
Statutory Reserves | ||||
Cap on appropriation as percentage of registered capital | 50.00% | |||
General Reserve Fund | Minimum | ||||
Statutory Reserves | ||||
Appropriation as percentage of after-tax profits | 10.00% | |||
Statutory Surplus Fund | Maximum | ||||
Statutory Reserves | ||||
Cap on appropriation as percentage of registered capital | 50.00% | |||
Statutory Surplus Fund | Minimum | ||||
Statutory Reserves | ||||
Appropriation as percentage of after-tax profits | 10.00% |
ACCOUNTS RECEIVABLE, NET OF A_3
ACCOUNTS RECEIVABLE, NET OF ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
ACCOUNTS RECEIVABLE, NET OF ALLOWANCE FOR DOUBTFUL ACCOUNTS | ||
Accounts receivable | ¥ 46,898 | ¥ 29,085 |
Allowance for doubtful accounts | (17,218) | (4,842) |
Accounts receivable, net of allowance for doubtful accounts | ¥ 29,680 | ¥ 24,243 |
ACCOUNTS RECEIVABLE, NET OF A_4
ACCOUNTS RECEIVABLE, NET OF ALLOWANCE FOR DOUBTFUL ACCOUNTS - Movement of allowance for doubtful accounts (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Movement in allowance for doubtful accounts: | ||
Balance as of the beginning of the year | ¥ 4,842 | |
Additions charged to bad debt expense | 12,376 | ¥ 4,842 |
Balance as of the end of the year | ¥ 17,218 | ¥ 4,842 |
RIGHT OF USE ASSETS - ROU Asset
RIGHT OF USE ASSETS - ROU Assets and Amortization (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
RIGHT OF USE ASSETS | ||
Operating Lease, Expense | ¥ 7,621 | ¥ 7,621 |
Initial lease term (in years) | 10 years | |
Operating Lease, Weighted Average Remaining Lease Term | 9 years | |
Operating Lease, Weighted Average Discount Rate, Percent | 4.83% |
RIGHT OF USE ASSETS - Supplemen
RIGHT OF USE ASSETS - Supplemental Cash Flow Information related to Operating Lease (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
RIGHT OF USE ASSETS | ||
Operating cash flows | ¥ 12,647 | ¥ 17,567 |
Right of use assets | 54,579 | 54,579 |
Less: Accumulated amortization | (10,210) | (4,984) |
Right of use assets | ¥ 44,369 | ¥ 49,595 |
RIGHT OF USE ASSETS - Allocated
RIGHT OF USE ASSETS - Allocated to Rental Expense (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
RIGHT OF USE ASSETS, NET | ||
Total rental expenses | ¥ 7,621 | ¥ 7,621 |
Cost of revenues | ||
RIGHT OF USE ASSETS, NET | ||
Total rental expenses | 1,481 | 2,108 |
General and administrative expenses | ||
RIGHT OF USE ASSETS, NET | ||
Total rental expenses | 1,588 | 1,802 |
Selling and marketing expenses | ||
RIGHT OF USE ASSETS, NET | ||
Total rental expenses | ¥ 4,552 | ¥ 3,711 |
RIGHT OF USE ASSETS - Maturity
RIGHT OF USE ASSETS - Maturity of Lease Liabilities (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
RIGHT OF USE ASSETS | ||
2022 | ¥ 0 | |
2023 | 5,921 | |
2024 | 7,621 | |
2025 | 7,621 | |
Thereafter | 15,242 | |
Total undiscounted lease payments | 36,405 | |
Less: Imputed interest | (8,978) | |
Present value of lease liabilities balance | 27,427 | |
Amounts due within 12 months | 0 | |
Long-term lease liabilities | ¥ 27,427 | ¥ 37,679 |
RIGHT OF USE ASSETS - Rent expe
RIGHT OF USE ASSETS - Rent expenses (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2020 | |
RIGHT OF USE ASSETS | ||
Amounts of lease liabilities | ¥ 0 | |
Rent expenses | ¥ 16,942 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||
Guarantee liability | ¥ 547,069 | |
Accrued payroll and employee benefits | 63,032 | ¥ 61,190 |
Others | 27,592 | 23,060 |
Total | ¥ 637,693 | ¥ 84,250 |
OTHER NON-CURRENT LIABILITIES_2
OTHER NON-CURRENT LIABILITIES (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other non-current liabilities | ||
Unrecognized tax benefits | ¥ 55,943 | ¥ 38,383 |
Deferred income tax liabilities | 62,044 | |
Warrants | 1,374 | |
Total | ¥ 117,987 | ¥ 39,757 |
OTHER NON-CURRENT LIABILITIES -
OTHER NON-CURRENT LIABILITIES - Fang information (Details) $ / shares in Units, $ in Millions | Jun. 11, 2019USD ($)$ / sharesshares | Dec. 31, 2020$ / shares | Dec. 31, 2019USD ($)$ / shares | Oct. 28, 2019USD ($) |
Class of Stock [Line Items] | ||||
Par value per share (in US dollar per share) | $ 0.001 | |||
Class A ordinary shares | ||||
Class of Stock [Line Items] | ||||
Par value per share (in US dollar per share) | $ 0.001 | $ 0.001 | ||
Fang | Class A ordinary shares | ||||
Class of Stock [Line Items] | ||||
Conversion ratio | 1 | |||
Fang | Class A ordinary shares | September 2022 Notes | ||||
Class of Stock [Line Items] | ||||
Conversion ratio | 1 | |||
Fang | Reportable Legal Entities | September 2022 Notes | ||||
Class of Stock [Line Items] | ||||
Conversion ratio | 27.9086 | |||
Fang | Reportable Legal Entities | Class A ordinary shares | ||||
Class of Stock [Line Items] | ||||
Convertible notes issued | $ | $ 250 | |||
Debt instrument interest rate stated percentage | 1.50% | |||
Par value per share (in US dollar per share) | $ 0.001 | $ 0.001 | ||
Fang | Reportable Legal Entities | Class A ordinary shares | September 2022 Notes | ||||
Class of Stock [Line Items] | ||||
Par value per share (in US dollar per share) | $ 1,000 | |||
Shares available for purchase in conversion | shares | 6,977,150 | |||
Debt instrument redeemed | $ | $ 28 | $ 55 |
OTHER NON-CURRENT LIABILITIES_3
OTHER NON-CURRENT LIABILITIES - Warrants and Convertible Notes (Details) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2020CNY (¥)Yshares | Dec. 31, 2019CNY (¥)Yshares | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Outstanding as of the beginning of the year | shares | 4,662,411 | |
Issuance | shares | 6,977,150 | |
Cancelled | shares | (2,314,739) | |
Outstanding as of the ending of the year | shares | 4,662,411 | 4,662,411 |
Balance as of the beginning of the year | ¥ 1,374 | |
Issuance | ¥ 207 | |
Change in fair value | (1,359) | 1,152 |
Foreign currency translation adjustment | ¥ (15) | 15 |
Balance as of the end of the year | ¥ 1,374 | |
Expected volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants, measurement input | 0.48 | 0.42 |
Expected dividend yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants, measurement input | 0 | 0 |
Expected term (in years) | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants, measurement input | Y | 1.73 | 2.73 |
Expected term (in years) | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants, measurement input | Y | 1.84 | 2.84 |
Risk-free interest rate per annum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants, measurement input | 0.016 | |
Risk-free interest rate per annum | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants, measurement input | 0.12 | |
Risk-free interest rate per annum | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants, measurement input | 0.13 |
REVENUES (Details)
REVENUES (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | ¥ 635,910 | ¥ 579,650 | ¥ 421,024 |
Revenue, Practical Expedient [Abstract] | |||
Adoption of practical expedient for incremental cost to obtain a contract | true | ||
Revenue, Practical Expedient, Initial Application and Transition, Nondisclosure of Transaction Price Allocation to Remaining Performance Obligation [true false] | true | ||
Information and analytics services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | ¥ 303,352 | 268,548 | 206,201 |
Data services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 166,264 | 138,643 | 125,147 |
Analytics services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 137,088 | 129,905 | 81,054 |
Marketplace services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 332,558 | 311,102 | 214,823 |
Promotion services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 301,962 | 244,154 | 189,718 |
Listing services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | ¥ 30,596 | ¥ 66,948 | ¥ 25,105 |
REVENUES - Impact of adoption o
REVENUES - Impact of adoption of ASC Topic 606 (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Impact of adoption | ||||
Revenues | ¥ 635,910 | ¥ 579,650 | ¥ 421,024 | |
Cost of revenues | (105,528) | (110,492) | (87,733) | |
Deferred revenue | 224,141 | 203,531 | 143,254 | ¥ 137,860 |
Information and analytics services | ||||
Impact of adoption | ||||
Revenues | 303,352 | 268,548 | 206,201 | |
Data services | ||||
Impact of adoption | ||||
Revenues | 166,264 | 138,643 | 125,147 | |
Analytics services | ||||
Impact of adoption | ||||
Revenues | 137,088 | 129,905 | 81,054 | |
Marketplace services | ||||
Impact of adoption | ||||
Revenues | 332,558 | 311,102 | 214,823 | |
Promotion services | ||||
Impact of adoption | ||||
Revenues | 301,962 | 244,154 | 189,718 | |
Listing services | ||||
Impact of adoption | ||||
Revenues | ¥ 30,596 | ¥ 66,948 | ¥ 25,105 |
REVENUES - Deferred revenue (De
REVENUES - Deferred revenue (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in deferred revenue | |||
Deferred revenue at beginning of period | ¥ 203,531 | ¥ 143,254 | ¥ 137,860 |
Cash received in advance, net of VAT | 579,623 | 544,140 | 423,354 |
Revenue recognized from opening balance of deferred revenue | (198,722) | (142,697) | (127,630) |
Revenue recognized from deferred revenue arising during current year | (360,291) | (341,166) | (282,087) |
Reclassification of VAT payable as of January 1, 2018 as a result of adoption of ASC Topic 606 | (8,243) | ||
Deferred revenue at end of period | ¥ 224,141 | ¥ 203,531 | ¥ 143,254 |
TAXATION - Income taxes (Detail
TAXATION - Income taxes (Details) ¥ in Thousands, $ in Millions | 12 Months Ended | 24 Months Ended | 48 Months Ended | |||
Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2018HKD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020CNY (¥) | |
TAXATION | ||||||
Statutory Tax Rate | 21.00% | |||||
Cayman Islands | ||||||
TAXATION | ||||||
Withholding tax to be imposed | ¥ 0 | |||||
British Virgin Islands | ||||||
TAXATION | ||||||
Withholding tax to be imposed | 0 | |||||
Hong Kong | ||||||
TAXATION | ||||||
Withholding tax to be imposed | ¥ 0 | |||||
Income tax rate (as a percentage) | 16.50% | |||||
Assessable profits | ¥ 0 | ¥ 0 | ¥ 0 | $ 2 | ||
Reduced enterprise income tax rate | 8.25% | |||||
China | ||||||
TAXATION | ||||||
Income tax rate (as a percentage) | 25.00% | |||||
Imposed withholding income tax rate | 10.00% | |||||
Accrued withholding income tax | ¥ 62,000 | |||||
Undistributed earnings | 620,000 | ¥ 620,000 | ¥ 620,000 | |||
Income taxes on earnings | 336,470 | |||||
Unrecognized deferred income tax liability | ¥ 33,647 | ¥ 33,647 | ¥ 33,647 | |||
China | Maximum | ||||||
TAXATION | ||||||
Period open for tax examinations (in years) | 5 years | |||||
China | Xinjiang Zhong Zhi | ||||||
TAXATION | ||||||
Tax holiday period (in years) | 5 years | |||||
China | Xinjiang Zhong Zhi Shi Zheng | ||||||
TAXATION | ||||||
Tax holiday period (in years) | 5 years | |||||
China | Xinjiang Zhong Zhi Shi Zheng Big Data | ||||||
TAXATION | ||||||
Tax holiday period (in years) | 5 years | |||||
China | High And New Technology Enterprises | ||||||
TAXATION | ||||||
Preferential tax rate (as a percentage) | 15.00% | |||||
Preferential certificate term (in years) | 3 years | |||||
Preferential certificate renewal term (in years) | 3 years | |||||
China | High And New Technology Enterprises | Beijing Zhong Zhi Shi Zheng | ||||||
TAXATION | ||||||
Preferential tax rate (as a percentage) | 15.00% | |||||
China | High And New Technology Enterprises | Beijing Zhong Zhi Xun Bo | ||||||
TAXATION | ||||||
Preferential tax rate (as a percentage) | 15.00% |
TAXATION - Income (loss) before
TAXATION - Income (loss) before income taxes (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
TAXATION | |||
Total income (loss) before income taxes | ¥ (208,902) | ¥ 290,188 | ¥ 195,468 |
Deferred income tax expense | 60,516 | ||
China | |||
TAXATION | |||
Total income (loss) before income taxes | 335,102 | 291,928 | 194,154 |
Hong Kong | |||
TAXATION | |||
Total income (loss) before income taxes | (515) | (427) | 1,314 |
Current income tax expense | ¥ 329 | ||
Cayman Islands | |||
TAXATION | |||
Total income (loss) before income taxes | (543,135) | (1,354) | |
USA | |||
TAXATION | |||
Total income (loss) before income taxes | 286 | ||
British Virgin Islands | |||
TAXATION | |||
Total income (loss) before income taxes | ¥ (640) | ¥ 41 |
TAXATION - Income tax expenses
TAXATION - Income tax expenses (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Contingency [Line Items] | |||
Deferred income tax expense | ¥ 60,516 | ||
Total income tax expense | 109,454 | ¥ 44,737 | ¥ 30,048 |
PRC, excluding Hong Kong SAR | |||
Income Tax Contingency [Line Items] | |||
Current income tax expense | 48,938 | ¥ 44,737 | 29,719 |
Deferred income tax expense | ¥ 60,516 | ||
Hong Kong | |||
Income Tax Contingency [Line Items] | |||
Current income tax expense | ¥ 329 |
TAXATION - Reconciliation of ta
TAXATION - Reconciliation of tax rate (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income tax rate reconciliation | |||
PRC statutory income tax rate | (25.00%) | 25.00% | 25.00% |
Research and development bonus deduction | (5.90%) | (3.30%) | (1.70%) |
Non-deductible selling, general and administrative expenses | 1.60% | 1.40% | 1.60% |
Effect of tax rate differential for non-PRC entities | 65.10% | 0.10% | |
Effect of preferential tax rates | (14.70%) | (9.20%) | (9.50%) |
Effect of withholding tax for undistributed earnings from PRC subsidiaries | 29.70% | ||
Change in valuation allowance | 0.30% | 0.10% | |
Interest and penalties on unrecognized tax benefits | 1.30% | 1.30% | |
Actual income tax rate | 52.40% | 15.40% | 15.40% |
TAXATION - Components of deferr
TAXATION - Components of deferred income tax assets and liabilities (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred tax assets: | |||
Net operating loss carry forwards | ¥ 729 | ¥ 273 | |
Allowance for doubtful account | 1,530 | ||
Long-term lease liabilities | 4,114 | 5,652 | |
Total deferred income tax assets, gross | 6,373 | 5,925 | |
Less: Valuation allowance | (729) | (273) | ¥ (78) |
Total deferred tax assets, net | 5,644 | 5,652 | |
Deferred income tax liabilities | |||
Short-term investments | 46 | ||
Right of use assets | 4,114 | 5,652 | |
Withholding income tax on distributable profits of the PRC subsidiaries | 62,000 | ||
Total deferred income tax liabilities | 66,160 | 5,652 | |
Net deferred income tax assets (included in other noncurrent assets) | 1,528 | ||
Net deferred income tax liabilities (included in other noncurrent liabilities) | 62,044 | ||
Movements of the valuation allowance: | |||
Balance at the beginning of the year | (273) | (78) | (24) |
Additions of valuation allowance | (456) | (195) | (54) |
Balance at the end of the year | ¥ (729) | ¥ (273) | ¥ (78) |
TAXATION - Net operating losses
TAXATION - Net operating losses (Details) ¥ in Thousands | Dec. 31, 2020CNY (¥) |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | ¥ 2,918 |
Expiration Year 2024 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforward subject to expiration | 134 |
Expiration Year 2025 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforward subject to expiration | 705 |
Expiration Year 2026 | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforward subject to expiration | ¥ 2,079 |
TAXATION - Unrecognized tax ben
TAXATION - Unrecognized tax benefits (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of the beginning and ending amount of total unrecognized tax benefits, exclusive of related interest and penalties | |||
Balance at beginning of year | ¥ 34,710 | ¥ 15,496 | |
Increase relating to prior year tax positions | 6,051 | ||
Increase related to current year tax positions | 21,966 | 14,392 | ¥ 15,484 |
Settlement | (7,100) | (1,235) | |
Foreign currency translation adjustment | 6 | 12 | |
Foreign currency translation adjustment | (23) | ||
Balance at end of year | 49,553 | 34,710 | 15,496 |
Unrecognized tax benefits | |||
Unrecognized tax benefits | 55,943 | 38,383 | |
Income tax expenses for interest and penalties related to unrecognized tax benefits | 2,717 | 3,673 | ¥ 0 |
Other non-current liabilities | |||
Unrecognized tax benefits | |||
Interest and penalties related to unrecognized tax benefits | ¥ 6,390 | ¥ 3,673 |
RELATED PARTY TRANSACTIONS - Re
RELATED PARTY TRANSACTIONS - Related Parties Transaction (Details) - CNY (¥) ¥ in Thousands | 6 Months Ended | 7 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||||
Share-based compensation expenses related to Fang's share-based awards | ¥ 3,894 | ||||
Advance to a noncontrolling interest holder | ¥ 3,090 | ||||
Fang | |||||
Related Party Transaction [Line Items] | |||||
Costs and expenses allocated from Fang, excluding the share-based compensation costs and expenses related to Fang's share-based awards | ¥ 4,337 | ¥ 9,919 | |||
Rent expenses | 7,621 | 7,621 | 7,621 | ||
IT service fee | ¥ 5,214 | 7,500 | 5,214 | ||
Software license fee | 500 | 278 | |||
Repayment of cash advance from related parties | 3,815 | ||||
Share-based compensation expenses related to Fang's share-based awards | 3,894 | 6,808 | |||
Disposal of subsidiaries to Fang | 4,325 | ||||
Advance to a noncontrolling interest holder | 3,090 | ||||
Fang | Listing services | |||||
Related Party Transaction [Line Items] | |||||
Revenue | 26,382 | ¥ 4,543 | |||
Fang | Analytics services | |||||
Related Party Transaction [Line Items] | |||||
Revenue | ¥ 11,006 | ¥ 17,296 |
RELATED PARTY TRANSACTIONS - Am
RELATED PARTY TRANSACTIONS - Amounts due from related parties - current (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||
Prepayments to and amounts due from related parties | ¥ 3,090 | ¥ 4,820 |
Beihai Long Island Hotel Co., Ltd | ||
Related Party Transaction [Line Items] | ||
Prepayments to and amounts due from related parties | 1,500 | |
Che Tian Xia Company Ltd. | ||
Related Party Transaction [Line Items] | ||
Prepayments to and amounts due from related parties | ¥ 3,320 | |
China Enterprise Evaluation Association | ||
Related Party Transaction [Line Items] | ||
Prepayments to and amounts due from related parties | ¥ 3,090 |
RELATED PARTY TRANSACTIONS - _2
RELATED PARTY TRANSACTIONS - Amounts due from related parties - noncurrent (Details) - Fang | Dec. 31, 2020CNY (¥) |
Related Party Transaction [Line Items] | |
Gross amount | ¥ 547,069 |
Allowance for doubtful accounts | ¥ (547,069) |
RELATED PARTY TRANSACTIONS - _3
RELATED PARTY TRANSACTIONS - Amounts due to a related party (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||
Amounts due to a related party | ¥ 156 | ¥ 7,734 |
Fang | ||
Related Party Transaction [Line Items] | ||
Amounts due to a related party | ¥ 156 | ¥ 7,734 |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional Information (Details) - CNY (¥) ¥ in Thousands | Jul. 01, 2019 | Jan. 01, 2019 | Oct. 31, 2020 | Apr. 30, 2020 | Jun. 30, 2019 | Jan. 31, 2018 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||||||||||||
Amounts due to a related party | ¥ 7,734 | ¥ 7,734 | ¥ 156 | ¥ 7,734 | ||||||||
Amounts due from a related party | 4,820 | 4,820 | 3,090 | 4,820 | ||||||||
Share-based compensation expenses related to Fang's share-based awards | ¥ 3,894 | |||||||||||
Guangxi Pukai | Analytics services | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Transaction amount | ¥ 20,000 | |||||||||||
Term of contract (in years) | 18 months | |||||||||||
Beihai Long Island Hotel Co., Ltd | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Amounts due from a related party | 1,500 | 1,500 | 1,500 | |||||||||
Beihai Long Island Hotel Co., Ltd | Analytics services | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Revenue | ¥ 10,000 | |||||||||||
Term of contract (in years) | 12 months | |||||||||||
Beihai Silver Beach | Analytics services | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Revenue | 11,006 | 17,296 | ||||||||||
Fang | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Transaction amount | ¥ 4,325 | ¥ 4,325 | ||||||||||
IT service fee | 5,214 | 7,500 | 5,214 | |||||||||
Software license fee | 500 | 278 | ||||||||||
Amounts due to a related party | 7,734 | 7,734 | 156 | 7,734 | ||||||||
Repayment of cash advance from related parties | ¥ 3,815 | |||||||||||
Share-based compensation expenses related to Fang's share-based awards | 3,894 | ¥ 6,808 | ||||||||||
Fang | Analytics services | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Revenue | 11,006 | 17,296 | ||||||||||
Fang | Network Resources | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Related party expenses | 7,950 | 7,500 | ||||||||||
Related party - prepaid expenses | 1,836 | 2,286 | ||||||||||
Fang | Software License Arrangement | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Transaction amount | ¥ 278 | 278 | 500 | |||||||||
Software royalty fee | ¥ 500 | |||||||||||
Term of contract (in years) | 10 years | |||||||||||
Amounts due to a related party | 278 | 278 | ¥ 278 | 278 | ||||||||
Fang | Related Party Payable | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Amounts due to a related party | 7,734 | 7,734 | 156 | 7,734 | ||||||||
Amounts due from a related party | ¥ 56,850 | ¥ 56,850 | ¥ 84,831 | ¥ 56,850 | ||||||||
Beijing Heng Xin Jia Hua Investment Consulting Limited [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Repayment of cash advance from related parties | ¥ 3,815 |
SHARE-BASED COMPENSATION - Ince
SHARE-BASED COMPENSATION - Incentive plans (Details) ¥ in Thousands | Apr. 01, 2020$ / sharesshares | Jun. 11, 2019 | Jun. 07, 2019$ / sharesshares | May 02, 2019 | Jun. 04, 2015 | Aug. 04, 2010 | Dec. 31, 2020$ / shares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Allocated Share-based Compensation Expense | ¥ | ¥ 8,612 | ¥ 8,234 | ¥ 6,808 | |||||||
Ratio applied for equity awards due to separation | 1 | |||||||||
Stock Option | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Options granted | 4,785,365 | |||||||||
Weighted-average exercise price at grant date | $ / shares | $ 1.35 | |||||||||
Fang | 2010 Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 4 years | |||||||||
Expiration period | 10 years | |||||||||
Fang | 2010 Plan | Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares issuable as a percent of fully diluted ordinary shares | 10.00% | |||||||||
Fang | 2015 Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 4 years | |||||||||
Expiration period | 10 years | |||||||||
Fang | 2015 Plan | Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares issuable as a percent of fully diluted ordinary shares | 1.50% | |||||||||
Fang | 2015 Plan | Stock Option | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 4 years | |||||||||
Expiration period | 10 years | |||||||||
Options granted | 268,500 | |||||||||
Weighted-average exercise price at grant date | $ / shares | $ 5.85 | |||||||||
CIH's board of directors | Stock Option | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Options granted | 2,359,450 | |||||||||
CIH's board of directors | 2019 Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting percentage | 5.00% | |||||||||
CIH's board of directors | 2019 Plan | Stock Option | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 4 years | 4 years | ||||||||
Expiration period | 10 years | 10 years | ||||||||
Options granted | 4,785,365 | |||||||||
Weighted-average exercise price at grant date | $ / shares | $ 1.35 |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of Equity Award Activity (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | Dec. 31, 2019CNY (¥)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)$ / sharesshares |
Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding at beginning of period | 7,227,971 | ||
Granted | 4,785,365 | ||
Forfeited | (408,825) | ||
Expired | (386,965) | ||
Outstanding at end of period | 7,227,971 | 11,217,546 | 7,227,971 |
Vested and expected to vest end of period | 8,462,425 | ||
Exercisable end of period | 5,707,303 | ||
Weighted Average Exercise Price US$ | |||
Outstanding at beginning of period | $ / shares | $ 0.001 | ||
Granted | $ / shares | 1.35 | ||
Forfeited | $ / shares | 0.88 | ||
Expired | $ / shares | 0.001 | ||
Outstanding at end of period | $ / shares | $ 0.001 | 0.54 | $ 0.001 |
Vested and expected to vest end of period | $ / shares | 0.36 | ||
Exercisable end of period | $ / shares | $ 0.001 | ||
Additional disclosures | |||
Weighted Average Remaining Contractual Years - Outstanding | 6 years 11 months 26 days | 4 years 11 months 19 days | |
Weighted Average Remaining Contractual Years - Vested and expected to vest | 6 years 3 months 21 days | ||
Weighted Average Remaining Contractual Years - Exercisable | 4 years 11 months 23 days | ||
Aggregate Intrinsic Value US$ - Outstanding | $ 26,302,586 | $ 15,993,085 | $ 26,302,586 |
Aggregate Intrinsic Value US$ - Vested and expected to vest | $ | 13,615,383 | ||
Aggregate Intrinsic Value US$ - Exercisable | $ | $ 11,237,680 | ||
Fang | Stock Option | 2010 Plan and 2015 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding at beginning of period | 590,353 | ||
Forfeited | (16,010) | ||
Expired | (73,215) | ||
Outstanding at end of period | 590,353 | 501,128 | 590,353 |
Vested and expected to vest end of period | 405,259 | ||
Exercisable end of period | 309,390 | ||
Weighted Average Exercise Price US$ | |||
Outstanding at beginning of period | $ / shares | $ 13.03 | ||
Forfeited | $ / shares | 10.56 | ||
Expired | $ / shares | 16.39 | ||
Outstanding at end of period | $ / shares | $ 13.03 | 12.62 | $ 13.03 |
Vested and expected to vest end of period | $ / shares | 14.13 | ||
Exercisable end of period | $ / shares | $ 16.57 | ||
Additional disclosures | |||
Weighted Average Remaining Contractual Years - Outstanding | 6 years 8 months 8 days | 7 years 2 months 8 days | |
Weighted Average Remaining Contractual Years - Vested and expected to vest | 6 years 3 months 14 days | ||
Weighted Average Remaining Contractual Years - Exercisable | 5 years 7 months 20 days | ||
Aggregate Intrinsic Value US$ - Outstanding | $ | $ 0 | ||
Fang | Unvested restricted shares | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding at beginning of period | 62,858 | ||
Outstanding at end of period | 28,370 |
SHARE-BASED COMPENSATION - Assu
SHARE-BASED COMPENSATION - Assumptions Used to Estimate Fair Value (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||||
Jun. 11, 2019USD ($)$ / shares | Dec. 31, 2019 | Dec. 31, 2020CNY (¥)$ / shares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | |
Stock Option | |||||||
Fair values of options granted | |||||||
Options granted | shares | 4,785,365 | ||||||
Weighted-average exercise price at grant date | $ 1.35 | ||||||
Fang | |||||||
Unrecognized share-based compensation cost | |||||||
Unrecognized share-based compensation cost | ¥ | $ 13,172 | ¥ 13,172 | |||||
Weighted-average vesting period of unrecognized share-based compensation cost | 3 years 1 month 6 days | ||||||
Fang | Stock Option | |||||||
Fair values of options granted | |||||||
Total intrinsic value of options exercised | ¥ 0 | ¥ 0 | $ 676,680 | ¥ 4,476 | |||
Fang | Stock Option | Company's employees | |||||||
Fair values of options granted | |||||||
Weighted average grant date fair value of option per share | $ 2.88 | ||||||
Aggregate grant date fair value of options | $ | $ 773,280 | ||||||
Assumptions used to estimate fair values of share options granted | |||||||
Expected volatility | 45.00% | 32.00% | |||||
Expected dividends yield | 0.00% | 0.00% | 0.00% | ||||
Expected term | 10 years | 10 years | |||||
Risk-free interest rate per annum | 2.08% | 0.60% | |||||
Fang | Stock Option | Minimum | Company's employees | |||||||
Assumptions used to estimate fair values of share options granted | |||||||
Expected volatility | 38.70% | ||||||
Expected term | 6 months 18 days | ||||||
Risk-free interest rate per annum | 1.90% | ||||||
Exercise multiple | 2.2 | 2.2 | 2.2 | ||||
Fang | Stock Option | Maximum | Company's employees | |||||||
Assumptions used to estimate fair values of share options granted | |||||||
Expected volatility | 45.40% | ||||||
Expected term | 9 years 11 months 26 days | ||||||
Risk-free interest rate per annum | 2.20% | ||||||
Exercise multiple | 2.8 | 2.8 | 2.8 |
SHARE-BASED COMPENSATION - Su_2
SHARE-BASED COMPENSATION - Summary Of Restricted Shares Granted (Details) ¥ in Thousands | 5 Months Ended | 12 Months Ended |
Jun. 11, 2019$ / shares | Dec. 31, 2020CNY (¥)$ / sharesshares | |
Weighted Average Grant Date Fair Value - Restricted Shares | ||
Vested | $ 17.55 | |
Forfeited | 17.55 | |
Outstanding at end of period | $ 17.55 | |
Unvested restricted shares | ||
Unrecognized share-based compensation cost | ||
Unrecognized share-based compensation cost | ¥ | $ 994 | |
Weighted-average vesting period of unrecognized share-based compensation cost | 7 months 28 days | |
Fang | ||
Unrecognized share-based compensation cost | ||
Weighted-average vesting period of unrecognized share-based compensation cost | 3 years 1 month 6 days | |
Fang | Unvested restricted shares | ||
Number of restricted shares | ||
Vested | shares | (28,320) | |
Forfeited | shares | (6,168) | |
Weighted Average Grant Date Fair Value - Restricted Shares | ||
Outstanding at beginning of period | $ 17.55 | |
Fang | Stock Option | Company's employees | ||
Unrecognized share-based compensation cost | ||
Weighted average grant date fair value of option per share | $ 2.88 | |
CIH's board of directors | Unvested restricted shares | ||
Number of restricted shares | ||
Outstanding at beginning of period | shares | 672,030 | |
Vested | shares | (306,977) | |
Forfeited | shares | (63,578) | |
Outstanding at end of period | shares | 310,475 | |
Weighted Average Grant Date Fair Value - Restricted Shares | ||
Outstanding at beginning of period | $ 0.34 | |
Vested | 0.34 | |
Forfeited | 0.34 | |
Outstanding at end of period | 0.34 | |
CIH's board of directors | Stock Option | ||
Unrecognized share-based compensation cost | ||
Weighted average grant date fair value of option per share | $ 0.49 |
SHARE-BASED COMPENSATION - Shar
SHARE-BASED COMPENSATION - Share Based Compensation Expense (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | ¥ 8,612 | ¥ 8,234 | ¥ 6,808 |
Cost of revenues | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | 1,772 | 1,537 | 2,157 |
Selling and marketing expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | 901 | 787 | 366 |
General and administrative expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | ¥ 5,939 | ¥ 5,910 | ¥ 4,285 |
EQUITY - Ordinary Shares (Detai
EQUITY - Ordinary Shares (Details) | Jun. 11, 2019Vote$ / sharesshares | May 28, 2019shares | Dec. 31, 2020$ / sharesshares | Dec. 31, 2019$ / sharesshares |
EQUITY | ||||
Shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |
Par value per share (in US dollar per share) | $ / shares | $ 0.001 | |||
Shares issued as treasury shares | 6,712,694 | |||
Treasury shares used for settlement of restricted shares vested | 648,492 | |||
Class A ordinary shares | ||||
EQUITY | ||||
Shares issued | 96,112,336 | 72,475,630 | 72,475,630 | |
Par value per share (in US dollar per share) | $ / shares | $ 0.001 | $ 0.001 | ||
Number of votes per share | Vote | 1 | |||
Number of shares issuable upon conversion of Class B ordinary share | 1 | 1 | 1 | |
Shares outstanding (in shares) | 66,411,428 | 65,762,936 | ||
Class B ordinary shares | ||||
EQUITY | ||||
Shares issued | 23,636,706 | 23,636,706 | ||
Shares authorized | 23,636,706 | |||
Par value per share (in US dollar per share) | $ / shares | $ 0.001 | $ 0.001 | ||
Number of votes per share | Vote | 10 | |||
Shares outstanding (in shares) | 23,636,706 | 23,636,706 | ||
Fang | Class A ordinary shares | ||||
EQUITY | ||||
Conversion ratio | 1 | |||
Number of shares issued for each ordinary share during distribution | 71,775,686 | |||
Fang | Class B ordinary shares | ||||
EQUITY | ||||
Shares issued | 24,336,650 |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) ¥ / shares in Units, ¥ in Thousands | Jun. 11, 2019 | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Ratio applied for equity awards due to separation | 1 | |||
Numerator: | ||||
Net income (loss) attributable to Class A and Class B ordinary shareholders | ¥ | ¥ (318,052) | ¥ 245,451 | ¥ 165,420 | |
Denominator: | ||||
Weighted average number of Class A and Class B ordinary shares outstanding | 89,842,465 | 89,399,642 | 89,399,642 | |
Weighted average number of vested restricted shares | 115,511 | |||
Denominator for basic net income per Class A and Class B ordinary share | 89,842,465 | 89,515,153 | 89,399,642 | |
Dilutive effect of share options and unvested restricted shares | 30,557 | |||
Denominator for diluted net income per Class A and Class B ordinary share | 89,842,465 | 89,545,710 | 89,399,642 | |
Earnings (loss) per share for Class A and Class B ordinary shares | ||||
Basic | ¥ / shares | ¥ (3.54) | ¥ 2.74 | ¥ 1.85 | |
Diluted | ¥ / shares | ¥ (3.54) | ¥ 2.74 | ¥ 1.85 | |
Warrants | ||||
Earnings (loss) per share for Class A and Class B ordinary shares | ||||
Antidilutive securities not included in the calculation of diluted earnings per share | 4,662,411 | 4,662,411 | ||
Stock Option | ||||
Earnings (loss) per share for Class A and Class B ordinary shares | ||||
Antidilutive securities not included in the calculation of diluted earnings per share | 11,217,546 | 7,227,971 | ||
Unvested restricted shares | ||||
Earnings (loss) per share for Class A and Class B ordinary shares | ||||
Antidilutive securities not included in the calculation of diluted earnings per share | 310,475 |
PARENT COMPANY ONLY CONDENSED_3
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed Balance Sheets (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||||
Cash and cash equivalents | ¥ 280,355 | ¥ 214,076 | ||
Prepaid expenses and other current assets | 2,557 | 4,566 | ||
Total current assets | 707,353 | 372,705 | ||
Non-current assets: | ||||
Total assets | 757,337 | 425,173 | ||
Current liabilities: | ||||
Amounts due to a related party | 156 | 7,734 | ||
Accrued expenses and other current liabilities | 637,693 | 84,250 | ||
Total current liabilities | 898,070 | 326,755 | ||
Non-current liabilities: | ||||
Other non-current liabilities | 117,987 | 39,757 | ||
Total liabilities | 1,043,484 | 404,191 | ||
Commitments and contingencies | ||||
SHAREHOLDERS' EQUITY (DEFICIT) | ||||
Treasury shares | (42) | (46) | ||
Capital deficit | (126,571) | (135,179) | ||
Retained earnings (accumulated deficits) | (162,728) | 155,324 | ||
Accumulated other comprehensive income | 1,232 | 220 | ||
Total shareholders' equity (deficit) | (286,147) | 20,982 | ¥ (72,295) | ¥ 25,998 |
Total liabilities and shareholders' equity (deficit) | 757,337 | 425,173 | ||
Fang | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 3,436 | |||
Prepaid expenses and other current assets | 2 | 2 | ||
Total current assets | 3,438 | 2 | ||
Non-current assets: | ||||
Investments in subsidiaries and consolidated VIEs | 257,569 | 22,762 | ||
Total assets | 261,007 | 22,764 | ||
Current liabilities: | ||||
Amounts due to a related party | 933 | 338 | ||
Accrued expenses and other current liabilities | 547,520 | 70 | ||
Total current liabilities | 548,453 | 408 | ||
Non-current liabilities: | ||||
Other non-current liabilities | 1,374 | |||
Total liabilities | 548,453 | 1,782 | ||
Commitments and contingencies | ||||
SHAREHOLDERS' EQUITY (DEFICIT) | ||||
Treasury shares | (42) | (46) | ||
Capital deficit | (126,571) | (135,179) | ||
Retained earnings (accumulated deficits) | (162,728) | 155,324 | ||
Accumulated other comprehensive income | 1,232 | 220 | ||
Total shareholders' equity (deficit) | (287,446) | 20,982 | ||
Total liabilities and shareholders' equity (deficit) | 261,007 | 22,764 | ||
Class A ordinary shares | ||||
SHAREHOLDERS' EQUITY (DEFICIT) | ||||
Ordinary shares | 500 | 500 | ||
Class A ordinary shares | Fang | Reportable Legal Entities | ||||
SHAREHOLDERS' EQUITY (DEFICIT) | ||||
Ordinary shares | 500 | 500 | ||
Class B ordinary shares | ||||
SHAREHOLDERS' EQUITY (DEFICIT) | ||||
Ordinary shares | 163 | 163 | ||
Class B ordinary shares | Fang | Reportable Legal Entities | ||||
SHAREHOLDERS' EQUITY (DEFICIT) | ||||
Ordinary shares | ¥ 163 | ¥ 163 |
PARENT COMPANY ONLY CONDENSED_4
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed Balance Sheets (Parenthetical) (Details) ¥ in Thousands | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020$ / shares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2019$ / shares | Jun. 11, 2019$ / sharesshares | May 28, 2019shares |
Amounts due from a related party-non current, less allowance for doubtful accounts | ¥ | ¥ 547,069,000 | ¥ 0 | ||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.001 | |||||
Ordinary shares, shares authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |||
Reportable Legal Entities | ||||||
Amounts due from a related party-non current, less allowance for doubtful accounts | ¥ | ¥ 547,069 | ¥ 0 | ||||
Class A ordinary shares | ||||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||||
Ordinary shares, issued shares | 72,475,630 | 72,475,630 | 96,112,336 | |||
Ordinary shares, outstanding shares | 66,411,428 | 65,762,936 | ||||
Number of shares issuable upon conversion of Class B ordinary share | 1 | 1 | 1 | |||
Class A ordinary shares | Fang | Reportable Legal Entities | ||||||
Ordinary shares, par value (in dollars per share) | $ / shares | 0.001 | 0.001 | ||||
Ordinary shares, shares authorized | 1,000,000,000 | 1,000,000,000 | ||||
Ordinary shares, issued shares | 72,475,630 | 72,475,630 | ||||
Ordinary shares, outstanding shares | 66,411,428 | 65,762,936 | ||||
Number of shares issuable upon conversion of Class B ordinary share | 1 | 1 | ||||
Class B ordinary shares | ||||||
Ordinary shares, par value (in dollars per share) | $ / shares | 0.001 | 0.001 | ||||
Ordinary shares, shares authorized | 23,636,706 | |||||
Ordinary shares, issued shares | 23,636,706 | 23,636,706 | ||||
Ordinary shares, outstanding shares | 23,636,706 | 23,636,706 | ||||
Class B ordinary shares | Fang | ||||||
Ordinary shares, issued shares | 24,336,650 | |||||
Class B ordinary shares | Fang | Reportable Legal Entities | ||||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||||
Ordinary shares, shares authorized | 1,000,000,000 | 1,000,000,000 | ||||
Ordinary shares, issued shares | 23,636,706 | 23,636,706 | ||||
Ordinary shares, outstanding shares | 23,636,706 | 23,636,706 |
PARENT COMPANY ONLY CONDENSED_5
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed Statements of Comprehensive Income (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed statement of Operations | |||
Total operating expenses | ¥ (227,177) | ¥ 287,523 | ¥ 188,567 |
Change in fair value of warrants | 1,359 | (1,152) | |
Income (loss) before income taxes | (208,902) | 290,188 | 195,468 |
Income tax expenses | (109,454) | (44,737) | (30,048) |
Net income (loss) attributable to China Index Holdings Limited | (318,052) | 245,451 | ¥ 165,420 |
Fang | Reportable Legal Entities | |||
Condensed statement of Operations | |||
Total operating expenses | (544,494) | (202) | |
Change in fair value of warrants | 1,359 | (1,152) | |
Share of income from subsidiaries and consolidated VIEs | 225,083 | 246,805 | |
Income (loss) before income taxes | (318,052) | 245,451 | |
Net income (loss) attributable to China Index Holdings Limited | ¥ (318,052) | ¥ 245,451 |
PARENT COMPANY ONLY CONDENSED_6
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed statement of Cash Flows (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities | ¥ 327,544 | ¥ 334,039 | ¥ 202,519 |
Effect of foreign currency exchange rate changes on cash and cash equivalents | (3,515) | 377 | 77 |
Net (decrease) increase in cash and cash equivalents | 66,279 | 49,874 | (66,986) |
Cash and cash equivalents as of the beginning of the year | 214,076 | 164,202 | 231,188 |
Cash and cash equivalents as of the end of the year | 280,355 | ¥ 214,076 | ¥ 164,202 |
Fang | Reportable Legal Entities | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 3,634 | ||
Effect of foreign currency exchange rate changes on cash and cash equivalents | (198) | ||
Net (decrease) increase in cash and cash equivalents | 3,436 | ||
Cash and cash equivalents as of the end of the year | ¥ 3,436 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) ¥ in Thousands, $ in Millions | Nov. 14, 2021USD ($) | Nov. 10, 2021USD ($) | Sep. 28, 2021USD ($) | Sep. 24, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2020USD ($) |
Loss Contingencies [Line Items] | |||||||
Accrued guarantee liability | ¥ 547,069 | $ 84 | |||||
Bad debt expenses | ¥ | ¥ 559,445 | ¥ 4,842 | |||||
Winding up petition | |||||||
Loss Contingencies [Line Items] | |||||||
Total amount of convertible debt | $ 168 | ||||||
Winding up petition | Convertible notes | |||||||
Loss Contingencies [Line Items] | |||||||
Percentage of Principle and unpaid interest due | 100.00% | 100.00% | |||||
Total principal amount of convertible notes | $ 167.2 | ||||||
Unpaid interest | 0.8 | ||||||
Winding up petition | Convertible notes | Forecast | |||||||
Loss Contingencies [Line Items] | |||||||
Repayment of convertible debt | $ 41.8 | $ 42.4 | |||||
Interest on convertible debt | $ 0.2 | ||||||
Fang | |||||||
Loss Contingencies [Line Items] | |||||||
Bad debt expenses | ¥ | ¥ 547,069 | ||||||
Fang | Winding up petition | |||||||
Loss Contingencies [Line Items] | |||||||
Accrued interest receivable | $ 0 | ||||||
Interest rate | 1.00% | ||||||
Fang | Winding up petition | Convertible notes | |||||||
Loss Contingencies [Line Items] | |||||||
Percentage of share in repayment of principal and unpaid interest | 50.00% | 50.00% | |||||
Fang | Winding up petition | Convertible notes | Forecast | |||||||
Loss Contingencies [Line Items] | |||||||
Repayment of convertible debt | $ 41.8 | $ 42.4 | |||||
Interest on convertible debt | $ 0.2 |