Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2013

Commission File Number: 001-34862

 

 

SOUFUN HOLDINGS LIMITED

(Exact name of registrant as specified in its charter)

 

 

F9M, Building 5, Zone E, Hanwei International Plaza, Fengmao South Road, Fengtai District

Beijing 100070, the People’s Republic of China

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  x             Form 40-F  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ¨

 

 

 


Unless we otherwise specify, when used in this Form 6-K the terms “SouFun,” “we” and “our” refer to SouFun Holdings Limited and its subsidiaries and consolidated controlled entities.

This Form 6-K contains our unaudited financial results as of and for the three and six months ended June 30, 2013 and a discussion of these results, which we previously publicly released on August 8, 2013.

This Form 6-K, excluding Exhibit 99.1, is hereby incorporated by reference into our Registration Statement on Form F-3 (Registration No. 333-181407).

Second Quarter 2013 Results

Revenues

SouFun reported total revenues of $144.1 million for the second quarter of 2013, representing an increase of 48.6% from the corresponding period in 2012, primarily driven by the growth in listing service and SouFun membership service.

Revenue from marketing services was $58.9 million for the second quarter of 2013, an increase of 5.9% from $55.7 million for the corresponding period in 2012.

Revenue from e-commerce services was $45.0 million for the second quarter of 2013, an 84.2% increase from $24.4 million for the same period in 2012, primarily due to the expansion of SouFun membership services in Beijing, Shanghai and other cities, including Chengdu and Chongqing.

Revenue from listing services was $38.4 million for the second quarter of 2013, an increase of 147.3% from $15.5 million for the corresponding period in 2012, primarily due to the substantial growth in agency subscribers.

Revenue from other value-added services was $1.8 million for the second quarter of 2013, an increase of 30.8% from $1.4 million for the corresponding period in 2012.

Cost of Revenue

Cost of revenue was $26.1 million for the second quarter of 2013, an increase of 43.5 % from $18.2 million for the corresponding period in 2012. The increase in cost of revenue was mainly driven by the increase in staff costs and taxes.

Gross margin was 81.9% for the second quarter of 2013, compared to 81.2% for the corresponding period in 2012.

 

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Operating Expenses and Income

Operating expenses were $42.4 million for the second quarter of 2013, an increase of 35.5 % from $31.3 million for the corresponding period in 2012.

Selling expenses were $23.0 million for the second quarter of 2013, an increase of 34.0% from $17.1 million for the corresponding period in 2012, primarily due to increased staff cost.

General and administrative expenses were $19.4 million for the second quarter of 2013, an increase of 37.4% from $14.1 million for the corresponding period in 2012, primarily due to increased staff cost.

Operating income was $75.8 million for the second quarter of 2013, an increase of 59.6% from $47.5 million for the corresponding period in 2012, driven by revenue growth and effective cost control.

Income tax expense was $24.7 million for the second quarter of 2013, a 40.2% increase compared to $17.6 million for the corresponding period in 2012, mainly driven by profit growth.

Net income attributable to SouFun’s shareholders was $55.4 million for the second quarter of 2013, a 71.2% increase from $32.3 million for the corresponding period in 2012. Fully diluted earnings per share were $0.67 for the second quarter of 2013, a 67.5% increase from $0.40 for the corresponding period in 2012.

As of June 30, 2013, SouFun had cash, cash equivalents, and short-term investments (excluding the available-for-sale security) of $273.4 million, compared to $143.6 million as of December 31, 2012. Cash flow from operating activities was $79.6 million for the second quarter of 2013, a 79.7% increase from $44.3 million for the same period in 2012.

First Half 2013 Results

Revenues

SouFun reported total revenues of $235.2 million for the first half of 2013, representing an increase of 51.3% from the corresponding period in 2012, primarily driven by the growth in listing services and SouFun membership services.

Revenue from marketing services was $94.8 million for the first half of 2013, an increase of 5.4% from $89.9 million for the corresponding period in 2012.

Revenue from e-commerce services was $71.3 million for the first half of 2013, a 95.6% increase from $36.5 million for the same period in 2012, primarily due to the expansion of SouFun membership services in Beijing, Shanghai and other cities, including Chengdu and Chongqing.

Revenue from listing services was $65.3 million for the first half of 2013, an increase of 146.5% from $26.5 million for the corresponding period in 2012, primarily due to the substantial growth in agency subscribers.

 

-3-


Revenue from other value-added services was $3.8 million for the first half of 2013, an increase of 45.1% from $2.6 million for the corresponding period in 2012.

Cost of Revenue

Cost of revenue was $46.2 million for the first half of 2013, an increase of 32.9 % from $34.7 million for the corresponding period in 2012. The increase in cost of revenue was primarily due to the increase in staff costs and business taxes.

Gross margin was 80.4% for the first half of 2013, improved from 77.7% for the corresponding period in 2012 as a result of effective cost control and revenue growth.

Operating Expenses and Income

Operating expenses were $76.2 million for the first half of 2013, an increase of 29.1 % from $59.0 million for the corresponding period in 2012.

Selling expenses were $41.7 million for the first half of 2013, an increase of 32.0% from $31.6 million for the corresponding period in 2012, primarily due to increased staff cost.

General and administrative expenses were $34.5 million for the first half of 2013, an increase of 25.7% from $27.4 million for the corresponding period in 2012, primarily due to increased staff cost.

Operating income was $113.0 million for the first half of 2013, an increase of 83.1% from $61.7 million for the corresponding period in 2012, driven by revenue growth and effective cost control.

Income tax expense was $36.4 million for the first half of 2013, an 86.1% increase compared to $19.6 million for the corresponding period in 2012. The increase was primarily due to a $15.2 million incremental tax expense driven by profit growth and a $1.6 million one-time tax benefit in the first half of 2012.

Net income attributable to SouFun’s shareholders was $83.8 million for the first half of 2013, an increase of 78.7% from $46.9 million for the corresponding period in 2012. Fully diluted earnings per share were $1.01 for the first half of 2013, a 74.1% increase from $0.58 for the corresponding period in 2012.

Cash flow from operating activities was $139.4 million for the first half of 2013, a 97.4% increase from $70.7 million for the same period in 2012.

 

-4-


SouFun Holdings Limited

Condensed Consolidated Balance Sheets

(in U.S. dollars in thousands, except as noted)

 

     June 30,      Dec 31,  
     2013      2012  
     (Unaudited)      (Audited)  

ASSETS

     

Current assets:

     

Cash and cash equivalents

     255,557         118,167   

Short-term investments

     17,803         26,841   

Accounts receivable, net

     43,282         30,029   

Funds receivable

     17,635         7,600   

Prepayment and other current assets

     7,763         9,226   

Deferred tax assets, current

     2,875         2,734   
  

 

 

    

 

 

 

Total current assets

     344,915         194,597   
  

 

 

    

 

 

 

Non-current assets:

     

Property and equipment, net

     221,212         79,564   

Restricted cash, non-current

     398,181         391,416   

Deferred tax assets, non-current

     2,084         1,723   

Deposit for non-current assets

     9,065         8,750   

Prepayment for BaoAn acquisition

     —           111,367   

Other non-current assets

     19,234         13,744   
  

 

 

    

 

 

 

Total non-current assets

     649,776         606,564   
  

 

 

    

 

 

 

Total assets

     994,691         801,161   
  

 

 

    

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

     

Current liabilities:

     

Short-term loans

     270,670         270,670   

Deferred revenue

     113,700         65,871   

Accrued expenses and other liabilities

     100,766         89,306   

Customers’ refundable fees

     30,187         18,449   

Income tax payable

     16,851         23,659   

Amounts due to a related party

     175         —     
  

 

 

    

 

 

 

Total current liabilities

     532,349         467,955   

Non-current liabilities:

     

Long-term loans

     80,750         80,750   

Deferred tax liabilities, non-current

     93,714         64,947   

Other non-current liabilities

     473         —     
  

 

 

    

 

 

 

Total non-current liabilities

     174,937         145,697   
  

 

 

    

 

 

 

Total Liabilities

     707,286         613,652   
  

 

 

    

 

 

 

Equity:

     

Class A ordinary shares, par value Hong Kong Dollar (“HK$”) 1 per share, 600,000,000 shares authorized for Class A and Class B in aggregate, and 56,532,480 shares and 56,013,735 shares issued and outstanding as at June 30, 2013 and December 31, 2012, respectively

     7,259         7,192   

Class B ordinary shares, par value HK$1 per share, 600,000,000 shares authorized for Class A and Class B in aggregate, and 24,336,650 shares and 24,336,650 shares issued and outstanding as at June 30, 2013 and December 31, 2012 , respectively

     3,124         3,124   

Additional paid-in capital

     76,671         69,637   

Accumulated other comprehensive income

     32,913         23,974   

Retained earnings

     166,729         82,952   
  

 

 

    

 

 

 

Total SouFun shareholders’ equity

     286,696         186,879   

Noncontrolling interests

     709         630   
  

 

 

    

 

 

 

Total equity

     287,405         187,509   
  

 

 

    

 

 

 

TOTAL LIABILITIES AND EQUITY

     994,691         801,161   
  

 

 

    

 

 

 

 

-5-


SouFun Holdings Limited

Condensed Consolidated Statements of Comprehensive Income

(in U.S. dollars in thousands, except share data and per ADS data)

 

     Three months ended     Six months ended  
     June 30,     June 30,     June 30,     June 30,  
     2013     2012     2013     2012  
     (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  

Revenues:

        

Marketing services

     58,947        55,658        94,760        89,910   

E-commerce services

     44,972        24,417        71,335        36,462   

Listing services

     38,423        15,535        65,257        26,469   

Other value-added services

     1,802        1,378        3,826        2,637   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     144,144        96,988        235,178        155,478   

Cost of Revenues:

        

Cost of services

     (26,124     (18,208     (46,154     (34,730
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Cost of Revenues

     (26,124     (18,208     (46,154     (34,730

Gross Profit

     118,020        78,780        189,024        120,748   

Operating expenses and income:

        

Selling expenses

     (22,965     (17,136     (41,697     (31,594

General and administrative expenses

     (19,424     (14,138     (34,484     (27,437

Other income

     167        —          167        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating Income

     75,798        47,506        113,010        61,717   

Foreign exchange gain

     2        57        2        55   

Interest income

     6,315        4,529        11,993        8,956   

Interest expense

     (3,218     (2,593     (6,555     (5,210

Government grants

     432        486        854        923   

Other-than-temporary impairment on available-for-sale security

     —          —          —          (14

Realized gain on available-for-sale security (includes $821 accumulated other comprehensive income reclassifications for unrealized net gains on available-for-sale security)

     821        —          821        —     

Gain on bargain purchase

     —          —          102        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes and noncontrolling interests

     80,150        49,985        120,227        66,427   

Income tax expenses

        

Income tax expenses

     (24,747     (17,645     (36,380     (19,553
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     55,403        32,340        83,847        46,874   

Net income attributable to noncontrolling interests

     35        —          70        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to SouFun shareholders

     55,368        32,340        83,777        46,874   

Other comprehensive income, net of tax

        

Foreign currency Translation

     8,323        (1,742     9,691        (1,603

Realized gain on available-for-sale security

     (821     —          (821     —     

Unrealized gain on available-for-sale security

     —          500        78        500   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other comprehensive income, net of tax

     7,502        (1,242     8,948        (1,103
  

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income

     62,905        31,098        92,795        45,771   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share for Class A and Class B ordinary shares

        

Basic

     0.71        0.42        1.07        0.61   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     0.67        0.40        1.01        0.58   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average number of Class A and Class B ordinary shares outstanding:

        

Basic

     77,923,911        76,878,518        77,962,391        77,241,192   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     83,124,647        81,392,881        83,266,708        81,328,134   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

-6-


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

        SOUFUN HOLDINGS LIMITED
    By:  

/s/ Vincent Tianquan Mo

    Name:   Vincent Tianquan Mo
    Title:   Executive Chairman
Date: August 15, 2013      


Exhibit Index

Exhibit 99.1 – Press Release