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 November 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: November 29, 2016

 

 

[Signature Page to 6-K]

 

2



 

Exhibit Index

 

Exhibit 99.1   

Press release

 

3


Exhibit 99.1

 

Leju Reports Third Quarter 2016 Results

 

BEIJING, Nov. 28, 2016 /PRNewswire/ — 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 third quarter ended September 30, 2016.

 

Third Quarter 2016 Financial Highlights

 

·                  Total revenues increased by 21% year-on-year to $183.3 million

 

·                  Revenues from e-commerce services increased by 35% year-on-year to $143.8 million

·                  Revenues from online advertising services decreased by 15% year-on-year to $33.6 million

·                  Revenues from listing services increased by 9% year-on-year to $5.9 million

 

·                  Non-GAAP1 income from operations increased by 26% year-on-year to $33.6 million

 

·                  Non-GAAP net income attributable to Leju shareholders increased by 9% year-on-year to $23.1 million, or $0.17 per diluted American depositary share (“ADS”)

 

First Nine Months 2016 Financial Highlights

 

·                  Total revenues increased by 13% year-on-year to $454.6 million

 

·                  Revenues from e-commerce services increased by 20% year-on-year to $348.2 million

·                  Revenues from online advertising services decreased by 8% year-on-year to $89.8 million

·                  Revenues from listing services increased by 16% year-on-year to $16.7 million

 

·                  Non-GAAP income from operations decreased by 10% year-on-year to $42.7 million

 

·                  Non-GAAP net income attributable to Leju shareholders decreased by 16% year-on-year to $33.0 million, or $0.24 per diluted ADS

 

“We are pleased to report solid third quarter results as Leju delivered healthy revenue growth as well as profit margin improvement,” said Mr. Geoffrey He, Leju’s chief executive officer. “Operationally, we maintained our position as a leader in e-commerce services in the primary market with a new company record for the number of coupons sold, expanded our secondary

 


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.

 



 

listing services platform with 270 newly launched local websites, and continued to invest in our home furnishing business with a focus on the contractor platform Qiang Gong Zhang (7gz.com). Financially, we continued to generate strong positive cash flows and further improved our profit margins in the third quarter. We believe these results demonstrate the success of our strategy and the value our platform provides for our developer clients and homebuyers.”

 

“Robust transaction volumes and rapidly rising home prices over the first three quarters of 2016 have led to another wave of aggressive tightening measures in the first weeks of October by local governments in more than 20 cities,” continued Mr. He. “In addition to reinstating restrictions on purchases and mortgage loans and raising down payment requirements, the governments in many cities also imposed price ceilings, slowed the pace of issuing pre-sale permits and enforced strict limits on project advertising and other forms of marketing. The combination of tightening policies and close scrutiny of marketing practices had an immediate cooling effect on transaction levels and demand for marketing services, and we expect it will have a significant impact on our e-commerce and online advertising businesses in the fourth quarter. However, we do not believe that the fundamental market demand and supply structure will be affected by these policies in the long run, and we believe that after this period of market correction, Leju will be able to further distinguish its strategy and platform services to generate future growth.”

 

Third Quarter 2016 Results

 

Total revenues were $183.3million, an increase of 21% from $151.2 million for the same quarter of 2015, mainly driven by revenue growth from e-commerce services and listing services, partially offset by the decrease of online advertising services.

 

Revenues from e-commerce services were $143.8 million, an increase of 35% from $106.4 million for the same quarter of 2015, primarily due to an increase in the average price per discount coupon redeemed, partially offset by the decrease in the number of discount coupons redeemed.

 

Revenues from online advertising services were $33.6 million, a decrease of 15% from $39.4 million for the same quarter of 2015, primarily due to a decrease in property developers’ online advertising demand.

 

Revenues from listing services were $5.9 million, an increase of 9% from $5.4 million for the same quarter of 2015, primarily due to growth in secondary home sales.

 

Cost of revenues was $15.2 million, relatively flat compared to $15.3 million for the same quarter of 2015, primarily due to decreased amortization of intangible assets consisting of exclusive rights that expired in December 2015, partially offset by increased cost on advertising resources purchased from Sina.

 



 

Selling, general and administrative expenses were $142.8 million, an increase of 21% from $117.5 million for the same quarter of 2015, primarily due to increased marketing expenses related to the Company’s e-commerce business as a result of its efforts to maintain its market share in the increasingly competitive market as well as increased marketing expenses related to the promotion of the Company’s listing business and home furnishing business.

 

Income from operations was $26.8 million, an increase of 29% from $20.8 million for the same quarter of 2015. Non-GAAP income from operations was $33.6 million, an increase of 26% from $26.7 million for the same quarter of 2015.

 

Net income was $17.2 million, an increase of 9% from $15.8 million for the same quarter of 2015. Non-GAAP net income was $23.2 million, an increase of 11% from $20.9 million for the same quarter of 2015.

 

Net income attributable to Leju shareholders was $17.1 million, or $0.13 per diluted ADS, an increase of 7% from $16.0 million, or $0.12 per diluted ADS, for the same quarter of 2015. Non-GAAP net income attributable to Leju shareholders was $23.1 million, or $0.17 per diluted ADS, an increase of 9% from $21.1 million, or $0.16 per diluted ADS, for the same quarter of 2015.

 

First Nine Months 2016 Results

 

Total revenues were $454.6 million, an increase of 13% from $402.4 million for the same period of 2015, mainly driven by growth of revenues from e-commerce services and listing services, partially offset by the decrease of online advertising services.

 

Revenues from e-commerce services were $348.2 million, an increase of 20% from $290.9 million for the same period of 2015, primarily due to an increase in the average price per discount coupon redeemed, partially offset by the decrease in the number of discount coupons redeemed.

 

Revenues from online advertising services were $89.8 million, a decrease of 8% from $97.2 million for the same period of 2015, primarily due to a decrease in property developers’ online advertising demand.

 

Revenues from listing services were $16.7 million, an increase of 16% from $14.4 million for the same period of 2015, primarily due to the growth in secondary home sales.

 

Cost of revenues was $43.5 million, a decrease of 5% from $45.8 million for the same period of 2015, primarily due to decreased amortization of intangible assets consisting of exclusive rights that expired in December 2015, partially offset by the increased resource cost purchased from Sina.

 



 

Selling, general and administrative expenses were $390.4 million, an increase of 18% from $331.2 million for the same period of 2015, primarily due to increased marketing expenses related to the growth of the Company’s e-commerce business as a result of its efforts to maintain its market share in the increasingly competitive market as well as increased marketing expenses related to the promotion of the Company’s listing business and home furnishing business.

 

Income from operations was $23.0 million, a decrease of 18% from $28.3 million for the same period of 2015. Non-GAAP income from operations was $42.7 million, a decrease of 10% from $47.3 million for the same period of 2015.

 

Net income was $14.8 million, a decrease of 33% from $22.0 million for the same period of 2015. Non-GAAP net income was $32.1 million, a decrease of 17% from $38.7 million for the same period of 2015.

 

Net income attributable to Leju shareholders was $15.7 million, or $0.12 per diluted ADS, a decrease of 31% from $22.6 million, or $0.17 per diluted ADS, for the same period of 2015. Non-GAAP net income attributable to Leju shareholders was $33.0 million, or $0.24 per diluted ADS, a decrease of 16% from $39.3 million, or $0.29 per diluted ADS, for the same period of 2015.

 

Cash Flow

 

As of September 30, 2016, the Company’s cash and cash equivalents balance was $317.0 million.

 

Third quarter 2016 net cash provided by operating activities was $46.9 million, mainly attributable to non-GAAP net income of $23.2 million, a decrease in customer deposits of $2.1 million, a decrease in accounts receivable of $1.9 million, an increase in income tax payable and other tax payable of $12.1 million, and an increase in accrued payable and welfare expenses of $3.3 million.

 

Business Outlook

 

The Company is now revising its fiscal 2016 total revenue guidance to approximately $510 million to $530 million, which would represent a decrease of approximately 8% to 11% 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 November 28, 2016 at 7 a.m. U.S. Eastern Time (8 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 December 5, 2016:

 

U.S./International:

+1-866-846-0868

Hong Kong:

+ 800-966-697

Mainland China:

+ 400-184-2240

Passcode:

1314691

 

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 370 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.

 

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, Tencent, 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 Leju’s reliance on E-House for various corporate services; 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. Annie Huang
Leju Holdings Limited

Phone: +86 (10) 5895-1062
E-mail: ir@leju.com

 

Philip Lisio
Foote Group
Phone: +86 (10) 8429-9544
E-mail: phil@thefootegroup.com

 



 

LEJU HOLDINGS LIMITED

UNAUDITED CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars)

 

 

 

December 31,

 

September 30,

 

 

 

2015

 

2016

 

ASSETS

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

 

260,296

 

317,020

 

Accounts receivable, net

 

113,991

 

100,260

 

Marketable securities

 

 

2,191

 

Deferred tax assets, net

 

31,074

 

30,217

 

Prepaid expenses and other current assets

 

20,881

 

17,804

 

Customer deposits

 

58,833

 

41,696

 

Amounts due from related parties

 

9

 

2,323

 

Total current assets

 

485,084

 

511,511

 

Property and equipment, net

 

6,801

 

7,453

 

Intangible assets, net

 

90,737

 

81,486

 

Investment in affiliates

 

669

 

438

 

Goodwill

 

39,807

 

39,467

 

Other non-current assets

 

3,740

 

3,911

 

Total assets

 

626,838

 

644,266

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable

 

327

 

1,602

 

Accrued payroll and welfare expenses

 

45,692

 

42,374

 

Income tax payable

 

66,815

 

65,562

 

Other tax payable

 

31,930

 

29,465

 

Amounts due to related parties

 

10,214

 

8,311

 

Advance from customers and deferred revenue

 

5,703

 

6,613

 

Accrued marketing and advertising expenses

 

3,915

 

17,651

 

Consideration payable of acquiring non-controlling interest

 

7,339

 

168

 

Other current liabilities

 

7,672

 

8,979

 

Total current liabilities

 

179,607

 

180,725

 

Deferred tax liabilities

 

22,998

 

22,363

 

Total liabilities

 

202,605

 

203,088

 

Equity

 

 

 

 

 

Ordinary shares ($0.001 par value): 500,000,000 shares authorized, 134,930,870 and 135,283,958 shares issued and outstanding, as of December 31, 2015 and September  30, 2016, respectively

 

135

 

135

 

Additional paid-in capital

 

773,766

 

782,436

 

Accumulated deficit

 

(343,658

)

(328,823

)

Subscription receivables

 

(9

)

 

Accumulated other comprehensive income

 

(5,522

)

(11,052

)

Total Leju equity

 

424,712

 

442,696

 

Non-controlling interests

 

(479

)

(1,518

)

Total equity

 

424,233

 

441,178

 

TOTAL LIABILITIES AND EQUITY

 

626,838

 

644,266

 

 



 

LEJU HOLDINGS LIMITED

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

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

 

 

 

Three months ended

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

 

 

2015

 

2016

 

2015

 

2016

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

E-commerce

 

106,432

 

143,845

 

290,851

 

348,152

 

Online advertising services

 

39,371

 

33,555

 

97,157

 

89,769

 

Listing services

 

5,403

 

5,902

 

14,435

 

16,692

 

Total revenues

 

151,206

 

183,302

 

402,443

 

454,613

 

Cost of revenues

 

(15,305

)

(15,229

)

(45,831

)

(43,465

)

Selling, general and administrative expenses

 

(117,511

)

(142,769

)

(331,247

)

(390,379

)

Other operating income

 

2,382

 

1,464

 

2,893

 

2,274

 

Income from operations

 

20,772

 

26,768

 

28,258

 

23,043

 

Investment income (loss)

 

 

1

 

 

(189

)

Interest income

 

260

 

373

 

903

 

925

 

Other income, net

 

107

 

62

 

248

 

563

 

Income before taxes and equity in affiliates

 

21,139

 

27,204

 

29,409

 

24,342

 

Income tax expense

 

(5,244

)

(9,923

)

(7,187

)

(9,342

)

Income before equity in affiliates

 

15,895

 

17,281

 

22,222

 

15,000

 

Loss from equity in affiliates

 

(75

)

(80

)

(230

)

(216

)

Net income

 

15,820

 

17,201

 

21,992

 

14,784

 

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

 

(223

)

102

 

(574

)

(879

)

Net income attributable to Leju shareholders

 

16,043

 

17,099

 

22,566

 

15,663

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

Basic

 

0.12

 

0.13

 

0.17

 

0.12

 

Diluted

 

0.12

 

0.13

 

0.17

 

0.12

 

Shares used in computation:

 

 

 

 

 

 

 

 

 

Basic

 

134,663,857

 

135,278,105

 

134,448,793

 

135,171,280

 

Diluted

 

135,308,945

 

135,430,377

 

136,397,775

 

135,279,590

 

 

Note 1          The conversion of Renminbi (“RMB”) amounts into USD amounts is based on the rate of USD1 = RMB6.6778 on September 30, 2016 and USD1 = RMB6.5844 for the nine months ended September 30, 2016

 



 

LEJU HOLDINGS LIMITED

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(In thousands of U.S. dollars)

 

 

 

Three months ended

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

 

 

2015

 

2016

 

2015

 

2016

 

 

 

 

 

 

 

 

 

 

 

Net income

 

15,820

 

17,201

 

21,992

 

14,784

 

Other comprehensive income, net of tax of nil Foreign currency translation adjustment

 

(5,588

)

(1,742

)

(5,471

)

(5,527

)

Comprehensive income

 

10,232

 

15,459

 

16,521

 

9,257

 

 

 

 

 

 

 

 

 

 

 

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

 

(241

)

105

 

(592

)

(875

)

Comprehensive income attributable to Leju shareholders

 

10,473

 

15,354

 

17,113

 

10,132

 

 



 

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

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

 

 

2015

 

2016

 

2015

 

2016

 

 

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

GAAP income from operations

 

20,772

 

26,768

 

28,258

 

23,043

 

Share-based compensation expense

 

2,739

 

3,700

 

9,573

 

10,427

 

Amortization of intangible assets resulting from business acquisitions

 

3,157

 

3,083

 

9,496

 

9,250

 

Non-GAAP income from operations

 

26,668

 

33,551

 

47,327

 

42,720

 

 

 

 

 

 

 

 

 

 

 

GAAP net income

 

15,820

 

17,201

 

21,992

 

14,784

 

Share-based compensation expense (net of tax)

 

2,739

 

3,700

 

9,573

 

10,427

 

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

 

2,368

 

2,312

 

7,122

 

6,937

 

Non-GAAP net income

 

20,927

 

23,213

 

38,687

 

32,148

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Leju Shareholder

 

16,043

 

17,099

 

22,566

 

15,663

 

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

 

2,739

 

3,691

 

9,573

 

10,402

 

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

 

2,368

 

2,312

 

7,122

 

6,937

 

Non-GAAP net income attributable to Leju shareholders

 

21,150

 

23,102

 

39,261

 

33,002

 

 

 

 

 

 

 

 

 

 

 

GAAP net income per ADS — basic

 

0.12

 

0.13

 

0.17

 

0.12

 

 

 

 

 

 

 

 

 

 

 

GAAP net income per ADS — diluted

 

0.12

 

0.13

 

0.17

 

0.12

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income per ADS — basic

 

0.16

 

0.17

 

0.29

 

0.24

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income per ADS — diluted

 

0.16

 

0.17

 

0.29

 

0.24

 

 

 

 

 

 

 

 

 

 

 

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

 

134,663,857

 

135,278,105

 

134,448,793

 

135,171,280

 

 

 

 

 

 

 

 

 

 

 

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

 

135,308,945

 

135,430,377

 

136,397,775

 

135,279,590

 

 



 

LEJU HOLDINGS LIMITED

SELECTED OPERATING DATA

 

 

 

Three months ended

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

 

 

2015

 

2016

 

2015

 

2016

 

 

 

 

 

 

 

 

 

 

 

Operating data for e-commerce services

 

 

 

 

 

 

 

 

 

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

 

70,641

 

132,142

 

205,895

 

267,827

 

Number of discount coupons redeemed (number of transactions)

 

57,303

 

53,602

 

141,827

 

137,827