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 March 2016

 


 

Commission File Number: 001-36396

 


 

LEJU HOLDINGS LIMITED

 

15/F Floor, Shoudong International Plaza, No. 5 Building, Guangqu Home

Dongcheng District, Beijing 100022

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 o

 

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): o

 

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): o

 

 

 



 

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/ Min Chen

 

Name:

:

Min Chen

 

Title:

:

Chief Financial Officer

 

 

Date: March 16, 2016

 

2



 

Exhibit Index

 

Exhibit 99.1 – Press release

 

3


Exhibit 99.1

 

Leju Reports Fourth Quarter and Full Year 2015 Results

 

BEIJING, March 15, 2016 — Leju Holdings Limited (“Leju” or the “Company”) (NYSE: LEJU), a leading online-to-offline (“O2O”) real estate services provider in China, today announced its unaudited financial results for the fiscal quarter and full year ended December 31, 2015.

 

Fourth Quarter 2015 Financial Highlights

 

·                      Total revenues increased by 1% year-on-year to $173.4 million

·                      Revenues from e-commerce services increased by 4% year-on-year to $129.7 million

·                      Revenues from online advertising services decreased by 15% year-on-year to $37.1 million

·                      Revenues from listing services increased by 87% year-on-year to $6.6 million

·                      Non-GAAP1 income from operations decreased by 41% year-on-year to $21.5 million

·                      Non-GAAP net income attributable to Leju shareholders decreased by 42% year-on-year to $18.1 million, or $0.13 per diluted American depositary share (“ADS”)

 

Full Year 2015 Financial Highlights

 

·                      Total revenues increased by 16% year-on-year to $575.8 million

·                      Revenues from e-commerce services increased by 29% year-on-year to $420.6 million

·                      Revenues from online advertising services decreased by 13% year-on-year to $134.2 million

·                      Revenues from listing services increased by 47% year-on-year to $21.0 million

·                      Non-GAAP income from operations decreased by 36% year-on-year to $68.9 million

·                      Non-GAAP net income attributable to Leju shareholders decreased by 37% year-on-year to $57.4 million, or $0.42 per diluted ADS

 

“We faced a continuously changing market and competitive landscape in 2015. Specifically, in the fourth quarter we experienced some unexpected changes to our e-commerce project pipeline,” said Mr. Geoffrey He, Leju’s chief executive officer. “However, we remained focused on our strategy of providing media, marketing and e-commerce platforms and maintained our market leading position and profitability in 2015. We launched innovative products for various stages of the home purchasing and renovating process to achieve a better marketing impact and improve overall user experience. In 2016 we plan to strengthen our leadership and continue to innovate to solidify the foundation for long term growth across all of our business lines.”

 

Fourth Quarter 2015 Results

 

Total revenues were $173.4 million, an increase of 1% from $171.8 million for the same quarter of 2014, mainly driven by growth of revenues from e-commerce services and listing services, partially offset by a decrease in revenue from online advertising services.

 

Revenues from e-commerce services were $129.7 million, an increase of 4% from $124.5 million for the same quarter of 2014, primarily due to an increase in the average price per discount coupon redeemed, partially offset by a decrease in the number of discount coupons redeemed.

 

Revenues from online advertising services were $37.1 million, a decrease of 15% from $43.8 million for the same quarter of 2014, primarily due to a decrease in property developers’ online advertising demand.

 


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 and amortization of intangible assets resulting from business acquisitions. 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.

 

1



 

Revenues from listing services were $6.6 million, an increase of 87% from $3.5 million for the same quarter of 2014, primarily due to growth in the number of paying agents.

 

Cost of revenues was $14.5 million, relatively flat compared to $14.3 million for the same quarter of 2014.

 

Selling, general and administrative expenses were $144.2 million, an increase of 12% from $128.8 million for the same quarter of 2014, primarily due to increased marketing expenses related to the Company’s e-commerce business and the increasingly intense market competition.

 

Income from operations was $15.4 million, a decrease of 47% from $29.1 million for the same quarter of 2014. Non-GAAP income from operations was $21.5 million, a decrease of 41% from $36.8 million for the same quarter of 2014.

 

Net income was $12.8 million, a decrease of 44% from $22.9 million for the same quarter of 2014. Non-GAAP net income was $18.2 million, a decrease of 41% from $31.0 million for the same quarter of 2014.

 

Net income attributable to Leju shareholders was $12.8 million, or $0.09 per diluted ADS, a decrease of 45% from $23.2 million, or $0.17 per diluted ADS, for the same quarter of 2014. Non-GAAP net income attributable to Leju shareholders was $18.1 million, or $0.13 per diluted ADS, a decrease of 42% from $31.3 million, or $0.23 per diluted ADS, for the same quarter of 2014.

 

Full Year 2015 Results

 

Total revenues were $575.8 million, an increase of 16% from $496.0 million for 2014, mainly driven by growth of revenues from e-commerce and listing services, partially offset by a decrease in revenue from online advertising services.

 

Revenues from e-commerce services were $420.6 million, an increase of 29% from $326.7 million for 2014, primarily due to an increase in the average price per discount coupon redeemed, partially offset by a decrease in the number of discount coupons redeemed.

 

Revenues from online advertising services were $134.2 million, a decrease of 13% from $155.0 million for 2014, primarily due to a decrease in property developers’ online advertising demand.

 

Revenues from listing services were $21.0 million, an increase of 47% from $14.3 million for 2014, primarily due to growth in secondary home sales.

 

Cost of revenues was $60.3 million, an increase of 18% from $51.1 million for 2014, primarily due to increased staff costs of the editorial department as a result of increased headcount and increased amortization expenses of intangible assets consisting of exclusive rights.

 

Selling, general and administrative expenses were $475.4 million, an increase of 30% from $366.3 million for 2014, primarily due to increased marketing expenses related to the growth of the Company’s e-commerce business and the increasingly intense market competition.

 

Income from operations was $43.6 million, a decrease of 46% from $81.1 million for 2014. Non-GAAP income from operations was $68.9 million, a decrease of 36% from $107.0 million for 2014.

 

Net income was $34.8 million, a decrease of 48% from $66.7 million for 2014. Non-GAAP net income was $56.9 million, a decrease of 37% from $90.9 million for 2014.

 

Net income attributable to Leju shareholders was $35.3 million, or $0.26 per diluted ADS, a decrease of 47% from $66.5 million, or $0.50 per diluted ADS, for 2014. Non-GAAP net income attributable to Leju shareholders was $57.4 million, or $0.42 per diluted ADS, a decrease of 37% from $90.7 million, or $0.68 per diluted ADS, for 2014.

 

2



 

Cash Flow

 

As of December 31, 2015, the Company’s cash and cash equivalents balance was $260.3 million.

 

Fourth quarter 2015 net cash provided by operating activities was $16.9 million, mainly attributable to non-GAAP net income of $18.2 million, a decrease in amounts due from related parties of $42.9 million, an increase in income tax payable and other tax payable of $10.9 million, partially offset by an increase in customer deposits of $55.2 million. Net cash used in investing activities was $0.8 million, mainly comprised of payments of $0.8 million for property, plant and equipment. Net cash used in financing activities was $44.2 million, mainly comprised of payments of $42.5 million to repay loans to related parties, and $1.8 million to acquire non-controlling interests, which were made in 2014.

 

Business Outlook

 

The Company estimates that its fiscal 2016 total revenues will be approximately $660 million to $690 million, which would represent an increase of approximately 15% to 20% from $575.8 million in 2015. This forecast reflects the Company’s current and preliminary view, which is subject to change.

 

Conference Call Information

 

Leju’s management will host an earnings conference call on March 15, 2016 at 7 a.m. U.S. Eastern Time (7 p.m. Beijing/Hong Kong time).

 

Dial-in details for the earnings conference call are as follows:

 

U.S./International:  +1-855-298-3404

Hong Kong:

+852-5808-3202

Mainland China:

+400-120-0539

 

Please dial in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is “Leju earnings call.”

 

A replay of the conference call may be accessed by phone at the following number until March 21, 2016:

 

U.S./International:  +1-866-846-0868

Hong Kong:

+ 800-966-697

Mainland China:

+ 400-1842-240

Passcode:           2660920

 

Additionally, a live and archived webcast will be available at http://ir.leju.com.

 

About Leju

 

Leju Holdings Limited (“Leju”) (NYSE: LEJU) is a leading online-to-offline, or O2O, real estate services provider 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 260 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.

 

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 limited operating history and lack of experience as a stand-alone public company, given its recent carve-out from E-House and prior reliance on E-House for various corporate services; its reliance on SINA, Baidu 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; complexities resulting from its ongoing relationships with E-House, due to E-House’s controlling interest in Leju; 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 and amortization of intangible assets resulting from business acquisitions. 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.

 

For investor and media inquiries please contact:

 

Ms. Melody Liu

Leju Holdings Limited

Phone: +86 (10) 5895-1062

E-mail: ir@leju.com

 

4



 

LEJU HOLDINGS LIMITED

UNAUDITED CONSOLIDATED BALANCE SHEET

(In thousands of U.S. dollars)

 

 

 

December 31,

 

December 31,

 

 

 

2014

 

2015

 

ASSETS

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

 

317,811

 

260,296

 

Accounts receivable, net

 

119,742

 

113,991

 

Deferred tax assets, net

 

29,858

 

31,074

 

Prepaid expenses and other current assets

 

13,355

 

20,881

 

Customer deposits

 

 

58,833

 

Amounts due from related parties

 

1

 

9

 

Total current assets

 

480,767

 

485,084

 

Property and equipment, net

 

7,159

 

6,801

 

Intangible assets, net

 

105,419

 

90,737

 

Investment in affiliates

 

273

 

669

 

Goodwill

 

40,563

 

39,807

 

Other non-current assets

 

4,085

 

3,740

 

Total assets

 

638,266

 

626,838

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable

 

371

 

327

 

Accrued payroll and welfare expenses

 

48,007

 

45,692

 

Income tax payable

 

57,246

 

66,815

 

Other tax payable

 

27,805

 

31,930

 

Amounts due to related parties

 

5,289

 

10,214

 

Advance from customers and deferred revenue

 

5,054

 

5,703

 

Accrued marketing and advertising expenses

 

19,270

 

3,915

 

Consideration payable of acquiring non-controlling interest

 

25,646

 

7,339

 

Other current liabilities

 

8,612

 

7,672

 

Total current liabilities

 

197,300

 

179,607

 

Deferred tax liabilities

 

26,042

 

22,998

 

Total liabilities

 

223,342

 

202,605

 

Equity

 

 

 

 

 

Ordinary shares ($0.001 par value): 500,000,000 shares authorized, 134,015,621 and 134,930,870 shares issued and outstanding, as of December 31, 2014 and December 31, 2015, respectively

 

134

 

135

 

Additional paid-in capital

 

788,247

 

773,766

 

Accumulated deficit

 

(377,876

)

(343,658

)

Subscription receivables

 

(689

)

(9

)

Accumulated other comprehensive income

 

5,030

 

(5,522

)

Total Leju equity

 

414,846

 

424,712

 

Non-controlling interests

 

78

 

(479

)

Total equity

 

414,924

 

424,233

 

TOTAL LIABILITIES AND EQUITY

 

638,266

 

626,838

 

 

5



 

LEJU HOLDINGS LIMITED

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

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

 

 

 

Three months ended

 

Year ended

 

 

 

December 31,

 

December 31,

 

 

 

2014

 

2015

 

2014

 

2015

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

E-commerce

 

124,489

 

129,701

 

326,680

 

420,552

 

Online advertising services

 

43,832

 

37,072

 

155,050

 

134,229

 

Listing services

 

3,524

 

6,588

 

14,293

 

21,023

 

Total revenues

 

171,845

 

173,361

 

496,023

 

575,804

 

Cost of revenues

 

(14,339

)

(14,483

)

(51,130

)

(60,314

)

Selling, general and administrative expenses

 

(128,828

)

(144,198

)

(366,342

)

(475,445

)

Other operating income

 

387

 

675

 

2,526

 

3,568

 

Income from operations

 

29,065

 

15,355

 

81,077

 

43,613

 

Investment income

 

 

272

 

 

272

 

Interest income

 

510

 

263

 

1,316

 

1,166

 

Other income (expenses), net

 

(7

)

42

 

36

 

290

 

Income before taxes and equity in affiliates

 

29,568

 

15,932

 

82,429

 

45,341

 

Income tax expense

 

(6,586

)

(3,120

)

(15,546

)

(10,307

)

Income before equity in affiliates

 

22,982

 

12,812

 

66,883

 

35,034

 

Income (loss) from equity in affiliates

 

(64

)

2

 

(224

)

(228

)

Net income

 

22,918

 

12,814

 

66,659

 

34,806

 

Less: net income (loss) attributable to non-controlling interests

 

(307

)

50

 

138

 

(524

)

Net income attributable to Leju shareholders

 

23,225

 

12,764

 

66,521

 

35,330

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

Basic

 

0.17

 

0.09

 

0.51

 

0.26

 

Diluted

 

0.17

 

0.09

 

0.50

 

0.26

 

Shares used in computation:

 

 

 

 

 

 

 

 

 

Basic

 

133,626,542

 

134,769,504

 

129,320,666

 

134,528,971

 

Diluted

 

137,505,730

 

135,702,573

 

132,502,100

 

136,223,974

 

 

Note 1

 

The conversion of Renminbi (“RMB”) amounts into USD amounts is based on the rate of USD1 = RMB6.4936 on December 31, 2015 and USD1 = RMB6.3007 for the year ended December 31, 2015

 

6



 

LEJU HOLDINGS LIMITED

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(In thousands of U.S. dollars)

 

 

 

Three months ended

 

Year ended

 

 

 

December 31,

 

December 31,

 

 

 

2014

 

2015

 

2014

 

2015

 

 

 

 

 

 

 

 

 

 

 

Net income

 

22,918

 

12,814

 

66,659

 

34,806

 

Other comprehensive loss, net of tax of nil

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

236

 

(5,115

)

(605

)

(10,586

)

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

23,154

 

7,699

 

66,054

 

24,220

 

 

 

 

 

 

 

 

 

 

 

Less: Comprehensive income (loss) attributable to non-controlling interest

 

(282

)

33

 

130

 

(559

)

 

 

 

 

 

 

 

 

 

 

Comprehensive income attributable to Leju shareholders

 

23,436

 

7,666

 

65,924

 

24,779

 

 

7



 

LEJU HOLDINGS LIMITED

Unaudited Reconciliation of GAAP and Non-GAAP Results

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

 

 

 

Three months ended

 

Year ended

 

 

 

December 31,

 

December 31,

 

 

 

2014

 

2015

 

2014

 

2015

 

 

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

GAAP income from operations

 

29,065

 

15,355

 

81,077

 

43,613

 

Share-based compensation expense

 

4,429

 

3,012

 

11,311

 

12,585

 

Amortization of intangible assets resulting from business acquisitions

 

3,275

 

3,157

 

14,569

 

12,653

 

Non-GAAP income from operations

 

36,769

 

21,524

 

106,957

 

68,851

 

 

 

 

 

 

 

 

 

 

 

GAAP net income

 

22,918

 

12,814

 

66,659

 

34,806

 

Share-based compensation expense (net of tax)

 

4,429

 

3,012

 

11,311

 

12,585

 

Amortization of intangible assets resulting from business acquisitions (net of tax)

 

3,644

 

2,368

 

12,957

 

9,490

 

Non-GAAP net income

 

30,991

 

18,194

 

90,927

 

56,881

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Leju Shareholder

 

23,225

 

12,764

 

66,521

 

35,330

 

Share-based compensation expense (net of tax and non-controlling interests)

 

4,429

 

3,003

 

11,311

 

12,576

 

Amortization of intangible assets resulting from business acquisitions (net of tax and non-controlling interests)

 

3,644

 

2,368

 

12,842

 

9,490

 

Non-GAAP net income attributable to Leju shareholders

 

31,298

 

18,135

 

90,674

 

57,396

 

 

 

 

 

 

 

 

 

 

 

GAAP net income per ADS — basic

 

0.17

 

0.09

 

0.51

 

0.26

 

 

 

 

 

 

 

 

 

 

 

GAAP net income per ADS — diluted

 

0.17

 

0.09

 

0.50

 

0.26

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income per ADS — basic

 

0.23

 

0.13

 

0.70

 

0.43

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income per ADS — diluted

 

0.23

 

0.13

 

0.68

 

0.42

 

 

 

 

 

 

 

 

 

 

 

Shares used in calculating basic GAAP / non-GAAP net income attributable to shareholders per ADS

 

133,626,542

 

134,769,504

 

129,320,666

 

134,528,971

 

 

 

 

 

 

 

 

 

 

 

Shares used in calculating diluted GAAP / non-GAAP net income attributable to shareholders per ADS

 

137,505,730

 

135,702,573

 

132,502,100

 

136,223,974

 

 

8



 

LEJU HOLDINGS LIMITED

SELECTED OPERATING DATA

 

 

 

Three months ended

 

Year ended

 

 

 

December 31,

 

December 31,

 

 

 

2014

 

2015

 

2014

 

2015

 

 

 

 

 

 

 

 

 

 

 

Operating data for e-commerce services

 

 

 

 

 

 

 

 

 

Number of discount coupons issued to prospective purchasers (number of transactions)

 

99,688

 

98,051

 

323,495

 

303,946

 

Number of discount coupons redeemed (number of transactions)

 

76,150

 

61,567

 

219,557

 

203,394

 

 

9