Profile: E-House China Holdings Ltd (EJ)
11 Mar 2014
E-House (China) Holdings Limited (E-House), incorporated on August 27, 2004, is a real estate services company in People’s Republic of China. E-House provides primary real estate agency services, secondary real estate brokerage services, real estate information and consulting services, real estate advertising services, real estate online services and real estate investment fund management services. E-House provides six types of services: primary real estate agency services, secondary real estate brokerage services, real estate information and consulting services, real estate advertising services, real estate online services and real estate investment fund management. E-House conducts its real estate information and consulting services, real estate advertising services and real estate online services through its majority owned subsidiary, China Real Estate Information Corporation (CRIC).
Primary Real Estate Agency Services
The Company’s principal business is providing primary real estate agency services to real estate developers. During the year ended December 31, 2009, primary real estate agency services accounted for 61.2% of the Company’s total revenues. The Company commences its services by preparing a customized marketing plan for the project. E-House develops a signature identity and brand to a project, establishing awareness of the project among prospective purchasers in the primary market. It assembles profiles of buyers and select public relations and advertising companies to design the marketing materials and marketing venues based on the profiles. The Company leverages the pictorial library of its China Real Estate Information Circle system (CRIC system) and incorporates in its marketing and advertising materials elements.
The Company’s sales monitoring system allows buyers to view inventories of unsold units on a real-time basis and enables its sales staff and developers to monitor the status of the units at various stages of sales. E-House’s developers adjust their strategies for the sales of the unsold units, as well as the construction, marketing and sale of the units to be built based on the buyer feedback information recorded in its system. E-House has expanded its primary real estate agency services by forming alliances with real estate developers, such as Evergrande, Vanke, Neo-China, Star River, COFCO, Jingrui, Luneng and Glorious Property.
Secondary Real Estate Brokerage Services
The Company provides secondary real estate brokerage services and focuses to expand its listing and brokerage services. The listing and brokerage services include both sales and rentals. Secondary real estate brokerage services accounted for 9.5% of its total revenues in 2009. As of December 31, 2009, the Company had a total of 109 stores, including 65 in Shanghai, 29 in Hangzhou, 10 in Wuhan, four in Hong Kong and one in Macau. In 2009, the Company facilitated 11,567 secondary real estate sales transactions totaling approximately $1.8 billion in transaction value and 3,443 secondary properties rental transactions totaling approximately $2.6 million in total monthly rental value.
E-House’s secondary real estate brokerage services include offering advisory services on choices of properties, accompanying potential buyers on house viewing trips, drafting purchase contracts, negotiating price and other terms, providing preliminary proof of title, coordinating with the notary, the bank and the title transfer agency. It also provides market information to both buyers and sellers based on its research capabilities supported by its CRIC system and the research staff at the E-House Research and Training Institute.
Real Estate Information and Consulting Services
E-House provides real estate information and consulting services through CRIC. Its real estate information and consulting services meet the needs of developer clients at various stages of the project development and sales process and other clients with particular requests and needs. Real estate information and consulting services accounted for 20.6% of its total revenues in 2009. CRIC provides two levels of real estate information services relying upon its CRIC system: data subscription services and data integration services. CRIC’s consulting services include services designed to help real estate developer clients formulate solutions to meet their specific needs and services designed to facilitate land or development project purchase and sale transactions.
Real Estate Advertising Services
The Company provides real estate advertising design services in 11 cities in China. In addition, starting in 2009 in Shanghai, the Company makes wholesale purchases of advertising space in print and other media and resells them to its developer clients.
Estate Online Services
E-House operates a real estate Internet business in China that provides region-specific real estate news, information, property data and access to online communities to real estate consumers and participants through local Websites covering 83 cities across China as of December 31, 2009. Its online real estate business generates all of its revenues from sales of online advertising. Real estate advertisers on the real estate Websites primarily include real estate developers, agents and brokers, as well as suppliers and providers of home furnishing and improvement products and services.
Real Estate Investment Fund Management
Investors in the E-House China Real Estate Investment Fund I, L.P. (the Fund), include both institutions and high-net-worth individuals. The Company manages the Fund through its 51% owned subsidiary, E-House Real Estate Asset Management Limited, which acts as the Fund’s general partner. In January 2010, the Company formed a limited partnership, E-House Shengyuan Equity Investment Center (the Center) in Shanghai, which seeks equity investment in china’s real estate sector. The Company’s 51% owned subsidiary, Shanghai Yidexin Equity Investment Management Co., Ltd., acts as the Center’s general partner.
E-House China Holdings Ltd
East Tower, No. 333 North Chengd
SHANGHAI SHA 200041