LEJU Leju Holdings Limited

 

 

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 2023

 

 

Commission File Number: 001-36396

 

 

LEJU HOLDINGS LIMITED

 

Level G, Building G, No.8 Dongfeng South Road,

Chaoyang District, Beijing 100016

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

¨

 

 

 

Exhibit Index

 

Exhibit 99.1 – Press Release – Leju Reports First Half Year 2023 Results

 

 

SIGNATURE

 

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.

 

	Leju Holdings Limited
	By	:	/s/ Li Yuan
	Name	:	Li Yuan
	Title	:	Chief Financial Officer

 

Date: August 31, 2023

 

 

 

Exhibit 99.1

 

Page 1

 

Leju Reports First Half Year 2023 Results

 

BEIJING, Aug. 31, 2023 /PRNewswire/ – Leju Holdings Limited (“Leju” or the “Company”) (NYSE: LEJU), a leading e-commerce and online media platform for real estate and home furnishing industries in China, today announced its unaudited financial results for the six months ended June 30, 2023.

 

First Half 2023 Financial Highlights

 

·

Total revenues decreased by 6% year on year to $158.5 million.

	·	Revenues from e-commerce services slightly decreased by 1% year on year to $131.2 million.
	·	Revenues from online advertising services decreased by 26% year on year to $27.3 million.

 

·

Loss from operations was $23.5 million, compared to loss from operations of $64.8 million for the same period of 2022.

 

·

Non-GAAP1 loss from operations was $17.3 million, compared to Non-GAAP loss from operations of $58.6 million for the same period of 2022.

 

·

Net loss attributable to Leju Holdings Limited shareholders was $19.4 million, or $1.42 loss per diluted American depositary share (“ADS”), compared to net loss attributable to Leju Holdings Limited shareholders of $52.9 million, or $3.86 loss per diluted ADS, for the same period of 2022.

 

·

Non-GAAP net loss attributable to Leju Holdings Limited shareholders was $14.6 million, or $1.06 loss per diluted ADS, compared to non-GAAP net loss attributable to Leju Holdings Limited shareholders of $48.0 million, or $3.50 loss per diluted ADS, for the same period of 2022.

 

“China's real estate industry remained sluggish during the first half of 2023, seeing a slight first-quarter rebound but then returning to a downward trend during the second quarter. Combined with the ongoing difficulties experienced by China’s real estate developers, these factors have created significant challenges for Leju's advertising and e-commerce operations,” said Mr. Geoffrey He, Leju’s Chief Executive Officer.

 

“Faced with these unprecedented market difficulties, we have adjusted our product structure and business direction to ensure the stability of our business and have been exploring new business opportunities. Responding to the significant changes in the supply and demand relationship of China’s real estate market, starting from the second quarter, local governments in multiple regions across the country have introduced measures to further optimize the real estate regulatory measures. Leju will take this opportunity to further consolidate our foundation and strive for new development opportunities while ensuring healthy operations.”

 

First Half 2023 Results

 

Total revenues were $158.5 million, a decrease of 6% from $169.4 million for the same period of 2022 mainly due to devaluation of the RMB. Total revenues demonstrated in RMB were RMB1,124.4 million, an increase of 3% from RMB1,091.6 million for the same period of 2022.

 

¹ Leju uses in this press release the following non-GAAP financial measures: (1) income (loss) from operations, (2) net income (loss), (3) net income (loss) attributable to Leju shareholders, (4) net income (loss) attributable to Leju shareholders per basic ADS, and (5) net income (loss) attributable to Leju shareholders per diluted ADS, each of which excludes share-based compensation expense, amortization of intangible assets resulting from business acquisitions, and income tax impact on the share-based compensation expense and amortization of intangible assets resulting from business combinations. See "About Non-GAAP Financial Measures" and "Unaudited Reconciliation of GAAP and Non-GAAP Results" below for more information about the non-GAAP financial measures included in this press release.

 

 

Page 2

 

Revenues from e-commerce services were $131.2 million, a slight decrease of 1% from $132.7 million for the same period of 2022, primarily due to devaluation of the RMB. Revenues from e-commerce services denominated in RMB were RMB931.0 million, an increase of 9% from RMB854.6 million for the same period of 2022. The E-commerce revenue of discount coupons decreased to $20.3 million from $132.7 million for the same period of 2022. The E-commerce revenue from the commission coupon business from the real estate developers was $110.9 million for the first half 2023 which commenced from the second half of 2022.

 

Revenues from online advertising services were $27.3 million, a decrease of 26% from $36.8 million for the same period of 2022. Revenues from online advertising services denominated in RMB were RMB193.4 million, a decrease of 18% from RMB237.0 million for the same period of 2022, primarily due to a decrease in property developers’ demand for online advertising.

 

Cost of revenues was $10.9 million, a decrease of 25% from $14.5 million for the same period of 2022, primarily due to decreased cost of advertising resources purchased from media platforms, and decreased editorial personnel related costs.

 

Selling, general and administrative expenses were $171.1 million, a decrease of 22% from $219.8 million for the same period of 2022, primarily due to the decreased bad debt provision and marketing expenses.

 

Loss from operations was $23.5 million, compared to loss from operation of $64.8 million for the same period of 2022. Non-GAAP loss from operations was $17.3 million, compared to non-GAAP loss from operations of $58.6 million for the same period of 2022.

 

Net loss was $19.5 million, compared to net loss of $52.8 million for the same period of 2022. Non-GAAP net loss was $14.6 million, compared to non-GAAP net loss of $47.9 million for the same period of 2022.

 

Net loss attributable to Leju Holdings Limited shareholders was $19.4 million, or $1.42 loss per diluted ADS, compared to net loss attributable to Leju Holdings Limited shareholders of $52.9 million, or $3.86 loss per diluted ADS, for the same period of 2022. Non-GAAP net loss attributable to Leju Holdings Limited shareholders was $14.6 million, or $1.06 loss per diluted ADS, compared to non-GAAP net loss attributable to Leju Holdings Limited shareholders of $48.0 million, or $3.50 loss per diluted ADS, for the same period of 2022.

 

Cash Flow

 

As of June 30, 2023, the Company's cash and cash equivalents and restricted cash balance was $106.2 million.

 

First half 2023 net cash used in operating activities was $17.2 million, primarily comprised of non-GAAP net loss of $14.6 million, an increase in amounts due from related parties of $2.2 million, a decrease in amounts due to related parties of $3.4 million, and a decrease in accrued payroll and welfare expenses of $5.3 million, partially offset by an increase in other current liabilities and accrued expenses of $7.7 million.

 

About Leju

 

Leju Holdings Limited ("Leju") (NYSE: LEJU) is a leading e-commerce and online media platform for real estate and home furnishing industries in China, offering real estate e-commerce, online advertising and online listing services. Leju's integrated online platform comprises various mobile applications along with local websites covering more than 380 cities, enhanced by complementary offline services to facilitate residential property transactions. In addition to the Company's own websites, Leju operates the real estate and home furnishing websites of SINA Corporation, and maintains a strategic partnership with Tencent Holdings Limited. For more information about Leju, please visit http://ir.leju.com.

 

 

Page 3

 

Safe Harbor: Forward-Looking Statements

 

This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "going forward," "outlook" and similar statements. Leju may also make written or oral forward-looking statements in its reports filed or furnished with the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Leju's beliefs and expectations, are forward-looking statements that involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained, either expressly or impliedly, in any of the forward-looking statements. Such factors include, but are not limited to, fluctuations in China's real estate market; the highly regulated nature of, and government measures affecting, the real estate and internet industries in China; Leju's ability to compete successfully against current and future competitors; its ability to continue to develop and expand its content, service offerings and features, and to develop or incorporate the technologies that support them; its reliance on SINA and others with which it has developed, or may develop in the future, strategic partnerships; substantial revenue contribution from a limited number of real estate markets; and relevant government policies and regulations relating to the corporate structure, business and industry of Leju. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and the Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

 

About Non-GAAP Financial Measures

 

To supplement Leju’s consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), Leju uses in this press release the following non-GAAP financial measures: (1) income (loss) from operations, (2) net income (loss), (3) net income (loss) attributable to Leju shareholders, (4) net income (loss) attributable to Leju shareholders per basic ADS, and (5) net income (loss) attributable to Leju shareholders per diluted ADS, each of which excludes share-based compensation expense, amortization of intangible assets resulting from business acquisitions, and income tax impact on the share-based compensation expense and amortization of intangible assets resulting from business combinations. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Unaudited Reconciliation of GAAP and Non-GAAP Results" set forth at the end of this press release.

 

Leju believes that these non-GAAP financial measures provide meaningful supplemental information to investors regarding its operating performance by excluding share-based compensation expense and amortization of intangible assets resulting from business acquisitions, which may not be indicative of Leju’s operating performance. These non-GAAP financial measures also facilitate management’s internal comparisons to Leju’s historical performance and assist its financial and operational decision making. A limitation of using these non-GAAP financial measures is that share-based compensation expense and amortization of intangible assets resulting from business acquisitions may continue to exist in Leju’s business for the foreseeable future. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables provide more details on the reconciliation between non-GAAP financial measures and their most comparable GAAP financial measures.

 

 

Page 4

 

For investor and media inquiries please contact:

 

Ms. Christina Wu

Leju Holdings Limited

Phone: +86 (10) 5895-1062

E-mail: ir@leju.com

 

 

Page 5

 

LEJU HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars)

 

		December 31,				June 30,
		2022				2023
ASSETS
Current assets
Cash and cash equivalents			123,378				100,689
Restricted cash			4,271				5,530
Accounts receivable, net			3,408				2,909
Prepaid expenses and other current assets			6,111				7,663
Customer deposits			3,860				—
Amounts due from related parties			2,476				4,648
Total current assets			143,504				121,439
Property and equipment, net			14,204				12,698
Intangible assets, net			12,458				7,136
Right-of-use assets			18,943				11,010
Deferred tax assets, net			25,457				24,537
Other non-current assets			1,545				1,149
Total assets			216,111				177,969
LIABILITIES AND EQUITY
Current liabilities
Short-term borrowings			718				—
Accounts payable			654				325
Accrued payroll and welfare expenses			12,728				6,917
Income tax payable			25,203				21,729
Other tax payable			9,695				8,321
Amounts due to related parties			4,805				1,441
Advances from customers			43,100				47,965
Lease liabilities, current			5,038				2,833
Accrued marketing and advertising expenses			29,988				34,589
Other current liabilities			12,265				9,538
Total current liabilities			144,194				133,658
Lease liabilities, non-current			15,439				9,188
Deferred tax liabilities			3,518				2,182
Total liabilities			163,151				145,028
Shareholders’ Equity
Ordinary shares ($0.001 par value): 1,000,000,000 shares authorized 137,172,601 and 137,839,249 shares issued and outstanding, as of December 31, 2022 and June 30, 2023, respectively			137				138
Additional paid-in capital			803,301				804,235
Accumulated deficit			(738,602	)			(758,038	)
Accumulated other comprehensive loss			(11,601	)			(13,046	)
Total Leju Holdings Limited shareholders’ equity			53,235				33,289
Non-controlling interests			(275	)			(348	)
Total equity			52,960				32,941
TOTAL LIABILITIES AND EQUITY			216,111				177,969

  

 

Page 6

 

LEJU HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands of U.S. dollars, except share data and per share data)

 

		Six months ended
		June 30,
		2022				2023
Revenues
E-commerce			132,654				131,260
Online advertising			36,783				27,272
Listing			11				—
Total net revenues			169,448				158,532
Cost of revenues			(14,474	)			(10,913	)
Selling, general and administrative expenses			(219,762	)			(171,122	)
Other operating income, net			25				5
Loss from operations			(64,763	)			(23,498	)
Interest income, net			1,515				545
Other income, net			801				23
Loss before taxes and loss from equity in affiliates			(62,447	)			(22,930	)
Income tax benefits			9,642				3,439
Loss before loss from equity in affiliates			(52,805	)			(19,491	)
Loss from equity in affiliates			—				—
Net loss			(52,805	)			(19,491	)
Less: net income attributable to non-controlling interests			47				(56	)
Net loss attributable to Leju Holdings Limited shareholders			(52,852	)			(19,435	)
Loss per ADS:
Basic			(3.86	)			(1.42	)
Diluted			(3.86	)			(1.42	)
ADS used in computation of loss per ADS:
Basic			13,691,216				13,726,961
Diluted			13,691,216				13,726,961

 

The conversion of Renminbi ("RMB") amounts into reporting currency USD amounts is based on the rate of USD1 = RMB7.2258 on June 30, 2023 and USD1 = RMB7.0928 for the six months ended June 30, 2023

 

 

Page 7

 

LEJU HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)

(In thousands of U.S. dollars)

 

		Six months ended
		June 30,
		2022				2023
Net loss			(52,805	)			(19,491	)
Other comprehensive loss, net of tax of nil
Foreign currency translation adjustment			(5,341	)			(1,463	)
Comprehensive loss			(58,146	)			(20,954	)
Less: Comprehensive income (loss) attributable to non-controlling interest			8				(73	)
Comprehensive loss attributable to Leju Holdings Limited shareholders			(58,154	)			(20,881	)

 

 

Page 8

 

LEJU HOLDINGS LIMITED

Unaudited Reconciliation of GAAP and Non-GAAP Results

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

 

		Six months ended
		June 30,
		2022				2023
GAAP loss from operations			(64,763	)			(23,498	)
Share-based compensation expense			929				895
Amortization of intangible assets resulting from business acquisitions			5,279				5,279
Non-GAAP loss from operations			(58,555	)			(17,324	)
GAAP net loss			(52,805	)			(19,491	)
Share-based compensation expense			929				895
Amortization of intangible assets resulting from business acquisitions			5,279				5,279
Income tax benefit:
Current			—				—
Deferred2			(1,320	)			(1,320	)
Non-GAAP net loss			(47,917	)			(14,637	)
Net loss attributable to Leju Holdings Limited shareholders			(52,852	)			(19,435	)
Share-based compensation expense (net of non-controlling interests)			929				895
Amortization of intangible assets resulting from business acquisitions (net of non-controlling interests)			5,279				5,279
Income tax benefit:
Current			—				—
Deferred			(1,320	)			(1,320	)
Non-GAAP net loss attributable to Leju Holdings Limited shareholders			(47,964	)			(14,581	)
GAAP net loss per ADS — basic			(3.86	)			(1.42	)
GAAP net loss per ADS —diluted			(3.86	)			(1.42	)
Non-GAAP net loss per ADS —basic			(3.50	)			(1.06	)
Non-GAAP net loss per ADS —diluted			(3.50	)			(1.06	)
ADS used in calculating basic GAAP/non-GAAP net loss attributable to Leju Holdings Limited shareholders per ADS			13,691,216				13,726,961
ADS used in calculating diluted GAAP/non-GAAP net loss attributable to Leju Holdings Limited shareholders per ADS			13,691,216				13,726,961

 

² Amount represents the realization of deferred tax liabilities recognized for the temporary difference between the tax basis of intangible assets recognized from acquisitions and their reported amounts in the financial statements. The income tax impact on the share-based compensation expense is nil.

  

 

Page 9

 

LEJU HOLDINGS LIMITED

SELECTED OPERATING DATA

 

		Six months ended
		June 30,
		2022				2023
Operating data for e-commerce services
Number of discount coupons issued to prospective purchasers (number of transactions)			31,456				12,973
Number of discount coupons redeemed (number of transactions)			35,262				12,438
Number of commission coupons issued to prospective purchasers (number of transactions)			—				17,010
Number of commission coupons redeemed (number of transactions)			—				17,010

 

 

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