China E-House IPO

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I read from PacificEpoch about the filing. From its SEC filing, here is an summary:

“We are a leading real estate services company in China based on scope of services, brand recognition and geographic presence. We provide primary real estate agency services, secondary real estate brokerage services as well as real estate consulting and information services. We were ranked as the largest real estate agency and consulting services company in China for three consecutive years from 2004 to 2006 by the China Real Estate Top 10 Committee, as measured by the number of transactions facilitated, transaction value and gross floor area, or GFA, of properties sold, and geographic coverage…

We have experienced substantial growth since our inception in 2000 and became a leader in the real estate services market in Shanghai within two years of our inception. We have expanded our operations from Shanghai to 19 other cities throughout China. Our revenues grew from $31.2 million in 2004 to $56.0 million in 2006, representing a compound annual growth rate, or CAGR, of 34.0%, and our net income increased from $5.6 million in 2004 to $18.1 million in 2006, representing a CAGR of 80.0%…”

I noticed its CEO Zhou Xin has 67% of the shares. Neil Shen, the co-founder of Ctrip and Home Inns, has 12% of the stake. Will the “3rd baby” of Neil Shen as good as its siblings? My gut feeling is no. Actually we should count this is Zhou Xin’s “first baby”.

I will post my analysis later on…the following is a picture taken outside E-house office near Zhongshan park in Shanghai


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