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 2012

Commission File Number: 001-34862

 

 

SOUFUN HOLDINGS LIMITED

(Exact name of registrant as specified in its charter)

 

 

8/F, T3 Xihuan Plaza, 1 Xizhimenwai Avenue, Xicheng District,

Beijing 100044, 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,” the “Company,” “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 months ended June 30, 2012 and a discussion of these results which we previously publicly released on August 16, 2012.

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).

Grant of Options to Executive Officers

On August 15, 2012, the Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) of the Company granted options to certain executive officers, including Vincent Tianquan Mo (“Mr. Mo”), Executive Chairman of the Board, Richard Jiangong Dai (“Mr. Dai”), President, Chief Executive Officer and a director of the Company, Lanying Guan, Chief Financial Officer of the Company, and Jian Liu, Chief Operations Officer of the Company, pursuant to the Company’s 2010 Stock Incentive Plan. The Committee consists of two independent directors and Mr. Mo, who is not independent. Mr. Mo does not participate in the decisions or approval of his compensation, including any stock option grants, and abstained from the vote to approve his option grant on August 15, 2012.

The following table sets forth certain information regarding the options granted to these executive officers on August 15, 2012.

 

     Number of
Class  A
ordinary
shares to be
issued  upon
exercise of
options
     Exercise
price per
ordinary
share (US$)
     Date of grant      Date of
expiration
 

Media Partner Technology Limited / Mr. Mo(1)

     75,000         12.80         August 15, 2012         August 14, 2022   

Next Decade Investments Limited / Mr. Mo(1)

     75,000         12.80         August 15, 2012         August 14, 2022   

Mr. Dai

     40,000         12.80         August 15, 2012         August 14, 2022   

Lanying Guan

     40,000         12.80         August 15, 2012         August 14, 2022   

Jian Liu

     40,000         12.80         August 15, 2012         August 14, 2022   

 

(1) Represents options granted to Mr. Mo in his capacity as executive chairman. These options were assigned and allocated to Media Partner Technology Limited (“Media Partner”) and Next Decade Investments Limited (“Next Decade”), whose shares are held in an irrevocable discretionary trust established by Mr. Mo.


The options will vest over a four-year period. Specifically, with respect to the options granted to each of the executive officers, 20% of the shares subject to the options will vest on August 15, 2013, 20% of the shares subject to the options will vest on August 15, 2014, 30% of the shares subject to the options will vest on August 15, 2015 and 30% of the shares subject to the options will vest on August 15, 2016, subject to such executive officer providing continuous service through each such date.

The exercise price of the options was $12.80, which was the same exercise price for the grant of options to acquire a total of 1,810,700 Class A ordinary shares to 904 employees of the Company on July 26, 2012, based on the closing price of the Company’s American depositary shares on July 25, 2012. Such options were approved on that date by Mr. Mo as the sole member of the Stock Option Committee of the Board with the authority under the 2010 Stock Incentive Plan to determine stock option grants to any non-officer employees of the Company. The grant of stock options to Mr. Mo and the other executive officers required the approval of the Compensation Committee and therefore that decision was deferred until the next regular board meeting on August 15, 2012, at which the Compensation Committee held a meeting. The Compensation Committee determined that it was in the best interests of the shareholders that Mr. Mo and the other executive officers receive the same exercise price that was provided to the other employees. The Committee noted that the options provide a long term incentive by vesting over a four-year period. The Company will record a compensation expense amortized over the options’ vesting period of a total of $1.33 million, representing the fair market value of such options.

The following table summarizes, as of August 15, 2012, the outstanding options that we had granted to our current directors and executive officers.

 

     Number of
Class A
ordinary
shares to
be issued
upon
exercise  of
options
     Number of
Class B
ordinary
shares to
be issued
upon
exercise  of
options
     Exercise
price per
ordinary
share (US$)
     Date of grant      Date of expiration  

Mr. Mo(1)

     225,000         —           5.00         December 31, 2006         December 30, 2016   
     225,000         —           5.00         December 31, 2007         December 30, 2017   
     225,000         —           5.00         December 31, 2008         December 30, 2018   
     225,000         —           10.00         December 31, 2009         December 30, 2019   

Media Partner / Mr. Mo(1)

     500,000         —           10.625         September 17, 2010         September 16, 2020   
     75,000         —           12.80         August 15, 2012         August 14, 2022   

Next Decade / Mr. Mo(1)

     —           1,754,500         5.00         September 30, 2006         September 29, 2021   
     500,000         —           10.625         September 17, 2010         September 16, 2020   
     75,000         —           12.80         August 15, 2012         August 14, 2022   

Mr. Dai

     40,000         —           4.06         September 1, 1999         August 31,2014   
     10,000         —           5.00         December 31, 2007         December 30, 2017   
     18,750         —           5.00         December 31, 2008         December 30, 2018   
     18,750         —           10.00         December 31, 2009         December 30, 2019   
     75,000         —           10.625         September 17, 2010         September 16, 2020   
     40,000         —           12.80         August 15, 2012         August 14, 2022   

Shan Li

     *         —           5.00         December 31, 2007         December 30, 2017   
     *         —           5.00         December 31, 2008         December 30, 2018   
     *         —           10.00         December 31, 2009         December 30, 2019   

Quan Zhou

     —           *         1.97         April 28, 2004         April 27, 2019   
     *         —           5.00         December 31, 2006         December 30, 2016   
     *         —           5.00         December 31, 2007         December 30, 2017   
     *         —           5.00         December 31, 2008         December 30, 2018   
     *         —           10.00         December 31, 2009         December 30, 2019   

Lanying Guan

     *         —           5.00         December 31, 2006         September 30, 2016   
     *         —           5.00         December 31, 2007         December 30, 2016   
     *         —           5.00         December 31, 2008         December 30, 2017   
     *         —           10.00         December 31, 2009         December 30, 2018   
     *         —           10.625         September 17, 2010         September 16, 2020   
     *         —           12.80         August 15, 2012         August 14, 2022   

Jian Liu

     *         —           5.00         December 31, 2006         December 30, 2016   
     *         —           5.00         December 31, 2007         December 30, 2017   
     *         —           5.00         December 31, 2008         December 30, 2018   
     *         —           10.00         December 31, 2009         December 30, 2019   
     *         —           10.625         September 17, 2010         September 16, 2020   
     *         —           12.80         August 15, 2012         August 14, 2022   


* Upon exercise of all options granted, would beneficially own less than 1.0% of our outstanding ordinary shares.
(1) Represents options granted to Mr. Mo in his capacity as our executive chairman, which were assigned and allocated to Media Partner and Next Decade, whose shares are held in an irrevocable discretionary trust established by Mr. Mo.

Second Quarter 2012 Results

SouFun reported total revenues of US$97.0 million for the second quarter of 2012, representing an increase of 20.4% from the corresponding period in 2011.

Revenue from marketing services was US$55.7 million for the second quarter of 2012, a slight decrease of 2.9% from the corresponding period in 2011, due primarily to an offset by the rapid growth of SouFun’s e-commerce services which has been mainly tested in Beijing and Shanghai.

Revenue from listing services was US$15.5 million for the second quarter of 2012, a decrease of 11.9% from the corresponding period in 2011, due primarily to the challenging environment in the resale market.

Revenue from e-commerce services was US$24.4 million for the second quarter of 2012, a substantial increase from US$4.6 million for the same period in 2011. The increase came mainly from our innovative SouFun card membership services. We began offering paid SouFun card membership services to property buyers to facilitate their transactions with property developers since the second quarter of 2011.

Revenue from other value-added services and products was US$1.4 million for the second quarter of 2012, an increase of 32.6% from the corresponding period in 2011.

Cost of revenue was US$18.2 million, an increase of 15.2% from the corresponding period in 2011. The increase is primarily due to increased staff cost and business taxes associated with the increase in revenues.

Gross margin was 81.2%, compared with 80.4% for the corresponding period in 2011.

Operating expenses were US$31.8 million, an increase of 14.2% from the corresponding period in 2011.

Selling expenses were US$17.1 million, an increase of 16.7% from the corresponding period in 2011, due primarily to increased staff cost.

General and administrative expenses were US$14.7 million, an increase of 11.5% from the corresponding period in 2011, due primarily to increased staff cost.

Operating Income was US$47.0 million, an increase of 27.3% from the corresponding period in 2011.

Income tax expense was US$17.6 million, an increase of 8.0% compared to US$16.3 million for the corresponding period in 2011.

Net income attributable to shareholders was US$32.3 million, an increase of 41.1% from the corresponding period in 2011. Earnings per fully diluted share was US$0.40, compared with US$0.27 for the corresponding period in 2011.

As of June 30, 2012, SouFun had cash, cash equivalents, and short-term investments (excluding the effect from available-for-sale securities) of US$190.6 million, compared to US$158.3 million as of December 31, 2011. Cash flow from operating activities was US$43.9 million for the second quarter of 2012, compared to US$33.9 million for the same period of 2011.


SouFun Holdings Limited

Unaudited Condensed Consolidated Balance Sheets

( in U.S. dollars in thousands )

 

    

June 30,

2012

    

December 31,

2011

 

ASSETS

     

Current assets:

     

Cash and cash equivalents

     157,439         150,414   

Restricted cash, current

     35,678         35,814   

Short-term investments

     34,345         8,592   

Accounts receivable, net

     40,311         27,697   

Prepayment and other current assets

     15,717         9,695   

Loan receivable

     —           26,143   

Amounts due from related parties

     1,397         1,595   

Deferred tax assets, current

     869         1,602   

Total current assets

     285,756         261,552   

Non-current assets:

     

Property and equipment, net

     80,318         68,064   

Restricted cash, non-current portion

     261,926         247,631   

Deferred tax assets, non current

     858         1,407   

Other non-current assets

     1,797         1,717   

Total non-current assets

     344,899         318,819   

Total assets

     630,655         580,371   

LIABILITIES AND SHAREHOLDERS’ EQUITY

     

Current liabilities:

     

Short-term loans

     270,570         255,570   

Deferred revenue

     91,834         73,620   

Accrued expenses and other liabilities

     71,271         52,490   

Dividend payable

     —           51,969   

Income tax payable

     8,012         16,158   

Total current liabilities

     441,687         449,807   

Non-current liabilities:

     

Deferred tax liabilities, non-current

     44,763         38,581   

Total non-current liabilities

     44,763         38,581   

Total Liabilities

     486,450         488,388   

Shareholders’ equity:

     

Class A and Class B Ordinary shares (par value of HK$1 per share: 600,000,000 shares authorized; 78,150,568 (Class A-53,813,918 and Class B-24,336,650 ) with par value of US$10,032 (Class A-US$6,908 and Class B-US$3,124) and 78,967,883 (Class A-54,631,233 and Class B 24,336,650 ) with par value of US$10,137 (Class A-US$7,013 and Class B-US$3,124) shares issued and outstanding as of December 31, 2011 and June 30, 2012)

     10,137         10,032   

Additional paid-in capital

     56,259         49,838   

Accumulated other comprehensive income

     20,750         21,853   

Retained earnings

     57,059         10,185   

Total SouFun Holdings Limited shareholders’ equity

     144,205         91,908   

Noncontrolling interests

     —           75   

Total shareholders’ equity

     144,205         91,983   

TOTAL LIABILITIES AND SHAREHOLDER’S EQUITY

     630,655         580,371   


SouFun Holdings Limited

Unaudited Condensed Consolidated Statements of Operations

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

 

     Three months ended     Six months ended  
     June 30, 2012     June 30, 2011     June 30, 2012     June 30, 2011  

Revenues:

        

Marketing services

   $ 55,658      $ 57,301      $ 89,910      $ 85,491   

Listing services

     15,535        17,635        26,469        28,912   

E-commerce services

     24,417        4,581        36,462        4,676   

Other value-added services

     1,378        1,039        2,637        2,266   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

     96,988        80,556        155,478        121,345   

Cost of Revenues:

        

Cost of services

     (18,208     (15,802     (34,730     (29,020
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Cost of Revenues

     (18,208     (15,802     (34,730     (29,020

Gross Profit

     78,780        64,754        120,748        92,325   

Operating expenses:

        

Selling expenses

     (17,136     (14,689     (31,594     (26,876

General and administrative expenses

     (14,655     (13,149     (28,478     (22,615
  

 

 

   

 

 

   

 

 

   

 

 

 

Total Operating Expenses

     (31,791     (27,838     (60,072     (49,491
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating Income

     46,989        36,916        60,676        42,834   

Foreign exchange gain (loss)

     57        (26     55        —     

Interest income

     4,529        2,178        8,956        3,555   

Interest expense

     (2,076     (285     (4,169     (327

Realized gain-trading securities

     —          151        —          206   

Government grants

     486        311        923        810   

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

     —          —          (14     —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes and noncontrolling interests

     49,985        39,245        66,427        47,078   

Income tax expenses

        

Income tax expense

     (17,645     (16,331     (19,553     (18,422
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     32,340        22,914        46,874        28,656   

Net income attributable to noncontrolling interests

     —          8        —          13   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to SouFun Holdings Limited shareholders

   $ 32,340      $ 22,922      $ 46,874      $ 28,669   

Other comprehensive income, net of tax

        

Foreign currency translation

     (1,242     (356     (1,103     1,957   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other comprehensive income, net of tax

     (1,242     (356     (1,103     1,957   
  

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income

     31,098        22,566        45,771        30,626   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share for Class A and Class B ordinary shares

        

Basic

   $ 0.42        0.30        0.61        0.38   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

   $ 0.40        0.27        0.58        0.34   
  

 

 

   

 

 

   

 

 

   

 

 

 

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

        

Basic

     76,878,518        76,324,682        77,241,192        76,195,218   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted

     81,392,881        83,604,880        81,328,134        83,335,199   
  

 

 

   

 

 

   

 

 

   

 

 

 

Dividend Plan

On August 16, 2012, the Board approved a cash dividend of US$1.00 per share on the Company’s ordinary shares. Each of SouFun’s American depositary shares represents one ordinary share. SouFun plans to set a record date and make the dividend payment in the third quarter of 2012.


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 23, 2012      


Exhibit Index

Exhibit 99.1 – Press Release