| Segment Information |
21. Segment Information
The Group uses the management approach to determine operating segments. The management approach considers the internal organization and reporting used by the Group’s chief operating decision maker (“CODM”) for making decisions, allocating resources and assessing performance. The Group’s CODM has been identified as the co-chairman and chief executive officer, who reviews consolidated and segment results when making decisions about allocating resources and assessing performance of the Group.
In 2012 and 2013, the Group had five operating segments: 1) real estate online services; 2) real estate brokerage services; 3) real estate information and consulting services; 4) real estate promotional events and advertising services; and 5) real estate fund management services.
In 2014, the Group established two new operating segments: community value-added services and real estate finance services.
In addition, the real estate promotional events and advertising services, real estate fund management services and real estate finance services did not meet the significance threshold for separate disclosure in any of the three years of 2012, 2013 and 2014, and have been combined in the other services segment for segment reporting purposes.
The Group’s CODM reviewed net revenue, cost of sales, operating expenses, income from operations and net income and did not review balance sheet information. Corporate expenses of certain holding companies were not allocated among segments and were recorded as non-allocated items.
The following tables summarize the selected revenue and expense information for each operating segment:
For the years ended December 31,
|
|
|
|
|
|
|
Real Estate
|
|
|
|
|
|
|
|
|
|
|
Real Estate
|
|
Real Estate
|
|
Information
|
|
|
|
|
|
|
|
|
|
|
Online
|
|
Brokerage
|
|
and Consulting
|
|
Other
|
|
|
|
|
|
|
2012
|
|
Services
|
|
Services
|
|
Services
|
|
Services
|
|
Non-allocated
|
|
Total
|
|
|
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
Revenues
|
|
169,755,893
|
|
208,284,503
|
|
54,517,612
|
|
29,881,360
|
|
—
|
|
462,439,368
|
|
|
Cost of revenues
|
|
(54,117,692
|
)
|
(114,667,241
|
)
|
(10,783,472
|
)
|
(23,602,280
|
)
|
—
|
|
(203,170,685
|
)
|
|
Selling, general and administrative expenses
|
|
(146,997,279
|
)
|
(92,291,838
|
)
|
(53,977,975
|
)
|
(10,544,345
|
)
|
(33,062,087
|
)
|
(336,873,524
|
)
|
|
Other operating income
|
|
153,340
|
|
2,982,861
|
|
2,481,255
|
|
857,567
|
|
—
|
|
6,475,023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations
|
|
(31,205,738
|
)
|
4,308,285
|
|
(7,762,580
|
)
|
(3,407,698
|
)
|
(33,062,087
|
)
|
(71,129,818
|
)
|
|
Interest income
|
|
257,204
|
|
425,714
|
|
624,817
|
|
55,895
|
|
242,832
|
|
1,606,462
|
|
|
Other income (expense), net
|
|
(1,979,450
|
)
|
84,937
|
|
(59,136
|
)
|
(446
|
)
|
1,221,225
|
|
(732,870
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before taxes and equity in affiliates
|
|
(32,927,984
|
)
|
4,818,936
|
|
(7,196,899
|
)
|
(3,352,249
|
)
|
(31,598,030
|
)
|
(70,256,226
|
)
|
|
Income tax benefit (expense)
|
|
2,329,338
|
|
(4,589,892
|
)
|
623,227
|
|
468,673
|
|
—
|
|
(1,168,654
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before equity in affiliates
|
|
(30,598,646
|
)
|
229,044
|
|
(6,573,672
|
)
|
(2,883,576
|
)
|
(31,598,030
|
)
|
(71,424,880
|
)
|
|
Income (loss) from equity in affiliates
|
|
(881
|
)
|
195,874
|
|
(14,933
|
)
|
195,449
|
|
—
|
|
375,509
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
(30,599,527
|
)
|
424,918
|
|
(6,588,605
|
)
|
(2,688,127
|
)
|
(31,598,030
|
)
|
(71,049,371
|
)
|
|
|
|
|
|
|
|
Real Estate
|
|
|
|
|
|
|
|
|
|
|
Real Estate
|
|
Real Estate
|
|
Information
|
|
|
|
|
|
|
|
|
|
|
Online
|
|
Brokerage
|
|
and Consulting
|
|
Other
|
|
|
|
|
|
|
2013
|
|
Services
|
|
Services
|
|
Services
|
|
Services
|
|
Non-allocated
|
|
Total
|
|
|
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
Revenues
|
|
335,410,902
|
|
280,776,816
|
|
76,683,188
|
|
38,207,927
|
|
—
|
|
731,078,833
|
|
|
Cost of revenues
|
|
(63,990,693
|
)
|
(168,624,507
|
)
|
(14,526,318
|
)
|
(26,894,288
|
)
|
—
|
|
(274,035,806
|
)
|
|
Selling, general and administrative expenses
|
|
(210,576,230
|
)
|
(74,728,461
|
)
|
(58,026,755
|
)
|
(12,404,049
|
)
|
(45,211,506
|
)
|
(400,947,001
|
)
|
|
Other operating income
|
|
599,894
|
|
1,647,257
|
|
1,950,223
|
|
720,268
|
|
—
|
|
4,917,642
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations
|
|
61,443,873
|
|
39,071,105
|
|
6,080,338
|
|
(370,142
|
)
|
(45,211,506
|
)
|
61,013,668
|
|
|
Interest expenses
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(192,566
|
)
|
(192,566
|
)
|
|
Interest income
|
|
1,082,287
|
|
819,925
|
|
222,898
|
|
51,944
|
|
2,493
|
|
2,179,547
|
|
|
Other income (expense), net
|
|
(1,185,121
|
)
|
87,270
|
|
(479,313
|
)
|
(11,837
|
)
|
537,786
|
|
(1,051,215
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before taxes and equity in affiliates
|
|
61,341,039
|
|
39,978,300
|
|
5,823,923
|
|
(330,035
|
)
|
(44,863,793
|
)
|
61,949,434
|
|
|
Income tax benefit (expense)
|
|
(5,447,524
|
)
|
(10,000,257
|
)
|
(3,606,417
|
)
|
(588,344
|
)
|
5,965,548
|
|
(13,676,994
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before equity in affiliates
|
|
55,893,515
|
|
29,978,043
|
|
2,217,506
|
|
(918,379
|
)
|
(38,898,245
|
)
|
48,272,440
|
|
|
Income (loss) from equity in affiliates
|
|
(69,194
|
)
|
343,561
|
|
312,119
|
|
(9,320
|
)
|
2,236,683
|
|
2,813,849
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
55,824,321
|
|
30,321,604
|
|
2,529,625
|
|
(927,699
|
)
|
(36,661,562
|
)
|
51,086,289
|
|
|
|
|
|
|
|
|
Real Estate
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate
|
|
Real Estate
|
|
Information
|
|
Community
|
|
|
|
|
|
|
|
|
|
|
Online
|
|
Brokerage
|
|
and Consulting
|
|
Value-added
|
|
Other
|
|
|
|
|
|
|
2014
|
|
Services
|
|
Services
|
|
Services
|
|
Services
|
|
Services
|
|
Non-allocated
|
|
Total
|
|
|
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
Revenues
|
|
495,862,635
|
|
283,367,930
|
|
82,679,298
|
|
—
|
|
42,588,930
|
|
—
|
|
904,498,793
|
|
|
Cost of revenues
|
|
(51,129,730
|
)
|
(204,101,162
|
)
|
(25,153,090
|
)
|
—
|
|
(25,749,228
|
)
|
—
|
|
(306,133,210
|
)
|
|
Selling, general and administrative expenses
|
|
(365,150,431
|
)
|
(64,337,955
|
)
|
(59,703,161
|
)
|
(15,828,009
|
)
|
(14,662,201
|
)
|
(25,809,961
|
)
|
(545,491,718
|
)
|
|
Other operating income
|
|
2,525,496
|
|
2,223,460
|
|
3,301,932
|
|
—
|
|
736,003
|
|
—
|
|
8,786,891
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations
|
|
82,107,970
|
|
17,152,273
|
|
1,124,979
|
|
(15,828,009
|
)
|
2,913,504
|
|
(25,809,961
|
)
|
61,660,756
|
|
|
Interest expenses
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(5,325,474
|
)
|
(5,325,474
|
)
|
|
Interest income
|
|
1,316,203
|
|
1,099,825
|
|
691,003
|
|
6,124
|
|
78,608
|
|
18,565
|
|
3,210,328
|
|
|
Other income (expense), net
|
|
35,799
|
|
(68,069
|
)
|
657,952
|
|
—
|
|
(8,987
|
)
|
3,240,844
|
|
3,857,539
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before taxes and equity in affiliates
|
|
83,459,972
|
|
18,184,029
|
|
2,473,934
|
|
(15,821,885
|
)
|
2,983,125
|
|
(27,876,026
|
)
|
63,403,149
|
|
|
Income tax benefit (expense)
|
|
(15,545,964
|
)
|
(5,083,029
|
)
|
(236,440
|
)
|
3,932,057
|
|
(169,368
|
)
|
2,201,951
|
|
(14,900,793
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before equity in affiliates
|
|
67,914,008
|
|
13,101,000
|
|
2,237,494
|
|
(11,889,828
|
)
|
2,813,757
|
|
(25,674,075
|
)
|
48,502,356
|
|
|
Income (loss) from equity in affiliates
|
|
(223,389
|
)
|
118,651
|
|
1,761,582
|
|
—
|
|
(367,621
|
)
|
2,545,579
|
|
3,834,802
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
67,690,619
|
|
13,219,651
|
|
3,999,076
|
|
(11,889,828
|
)
|
2,446,136
|
|
(23,128,496
|
)
|
52,337,158
|
|
Geographic
Substantially all of the Group’s revenues from external customers and long-lived assets are located in the PRC.
Major customers
Details of the revenues for customers accounting for 10% or more of total net revenues are as follows:
|
|
|
Years Ended December 31,
|
|
|
|
|
2012
|
|
2013
|
|
2014
|
|
|
|
|
$
|
|
$
|
|
$
|
|
|
Customer A
|
|
55,924,621
|
|
*
|
|
*
|
|
* indicates the revenue from the customer was less than 10% of total revenue in the year.
Revenue generated from Customer A for real estate online services, real estate brokerage services, real estate information and consulting services, and other services were $6,871,686, $42,483,101, $6,356,080, and $213,754 respectively, for 2012.
Details of the accounts receivable from customers accounting for 10% or more of total net accounts receivable are as follows:
|
|
|
As of December 31,
|
|
|
|
|
2013
|
|
2014
|
|
|
|
|
$
|
|
$
|
|
|
Customer A
|
|
43,318,976
|
|
53,534,294
|
|
Details of the customer deposits from customers accounting for 10% or more of total net customer deposits are as follows:
|
|
|
As of December 31,
|
|
|
|
|
2013
|
|
2014
|
|
|
|
|
$
|
|
$
|
|
|
Customer B
|
|
56,000,000
|
|
33,540,800
|
|
|
Customer C
|
|
—
|
|
24,513,750
|
|
|
Customer D
|
|
—
|
|
23,206,350
|
|
|
Customer E
|
|
8,200,900
|
|
*
|
|
* indicates the balance of customer deposit of the customer was less than 10% of total customer deposits as of 31 December, 2014.
|