China Index Holdings Limited

Good day and welcome to the China Index Holdings Limited Fiscal Year 2022 First Fiscal Quarter Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star then 1 on your touchtone telephone. If anyone should require assistance during the conference, please press star then 0 to reach an operator. As a reminder, this call may be recorded. I would now like to turn the call over to Jessie Yang, Head of Investor Relations. You may begin.

Thank you, operator. Hello, everyone, and welcome to China Index Holdings' first quarter 2022 earnings conference call. Joining us today to discuss CIH's results are our CEO, Ms. Yu Huang, and Deputy CFO, Ms. Lily Chen. After the prepared remarks, our management will answer your questions. Before we get started, I would like to remind you that during the course of this conference call, we may make forward-looking statements, statements that are not historical facts, including statements about our beliefs and expectations. Forward-looking statements involve inherent risk and uncertainty. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. CAH assumes no obligation to update the forward-looking statements in this conference call and elsewhere. Potential risk and uncertainties include but are not limited to those outlined in our public filings with the SEC, including our Form F-1. Now, I would like to walk you through our first quarter 2022 results, after which Ms. Huang will answer your questions for the Q&A session. In the first quarter of 2022, CAH reported total revenues of RMB 118.5 million, a decrease of 11.4% from RMB 133.7 million in the corresponding period of 2021, primarily due to the broad macro environment challenges the industry was facing. Revenues from information and analytics services, SAS, were RMB 56.6 million in the first quarter of 2022, a decrease of 11.2% from RMB 63.8 million in the corresponding period of 2021. Revenues from Marketplace Services were RMB 61.9 million in the first quarter of 2022, a decrease of 11.6% from RMB 70 million in the corresponding period of 2021. Cost of revenues was RMB 21.7 million in the first quarter of 2022, a decrease of 14.1% from RMB 25.3 million in the corresponding period of 2021, primarily due to the cost-saving actions CIH has taken in response to the broad macro environment challenges. Operating expenses were RMB 51.4 million in the first quarter of 2022, an increase of 8.1% from RMB $47.6 million in the corresponding period of 2021. Selling and marketing expenses were RMB $24.5 million in the first quarter of 2022, a decrease of 7.4% from RMB $26.5 million in the corresponding period of 2021, primarily due to a decrease in personnel costs. General and administrative expenses were RMB 26.9 million in the first quarter of 2022, an increase of 27.6% from RMB 21.1 million in the corresponding period of 2021, primarily due to an increase in bad debt expense and the accrual of professional fees. Operating income was RMB 45.3 million in the first quarter of 2022, a decrease of 25.5%. from RMB 60.8 million in the corresponding period of 2021. Income tax expenses were RMB 7 million in the first quarter of 2022, a decrease of 24.1% from RMB 9.2 million in the corresponding period of 2021. Net income was RMB 41.9 million in the first quarter of 2022, a decrease of 25.9% from RMB 56.6 million in the corresponding period of 2021. Due to current unstable market conditions, management believes CIH's 2022 annual revenue is expected to decrease approximately 10% year to year. These estimates represent management's current and preliminary views, which are subject to change. We are now open for questions. Operator, please go ahead.

As a reminder, if you'd like to ask a question, please press star then one. If your question has been answered and you'd like to remove yourself from the queue, press the pound key. Our first question comes from Henry with HP. Your line is open.

Hi. Can you talk a little bit about, you know, there's not a whole lot of trading volume of your shares. thinking about potentially listing your shares locally in some other market rather than the U.S. What are your thoughts around the sort of trading plans for your share listing? Thanks.

Okay, thank you. Please give me a moment to translate the question.

Okay. So at the moment we are observing the capital markets closely.

and we are analyzing, and we will make decisions accordingly. And if we have made such decisions, we will release press releases. So please follow our IR webpage. Thank you.

Again, if you'd like to ask a question, please press star, then 1. I'm not showing any additional questions at this time. Please proceed with any further remarks.

Thank you, Operator. And thank you, everyone, for joining China Index Holdings' first quarter earnings call today. We look forward to speaking with you again for our second quarter 2022 earnings call.

This does conclude the conference call. You may now disconnect. Everyone, have a great day.