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 May 2018

 


 

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/ Li-Lan Cheng

 

Name

:

Li-Lan Cheng

 

Title

:

Chief Financial Officer

 

 

Date:      May 29, 2018

 

2



 

Exhibit Index

 

Exhibit 99.1 — Press Release

 

3


 

Exhibit 99.1

 

Leju Reports First Quarter 2018 Results

 

BEIJING, May 28, 2018 — 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 ended March 31, 2018.

 

First Quarter 2018 Financial Highlights

 

·                      Total revenues increased by 19% year-on-year to $81.5 million

 

·                      Revenues from e-commerce services increased by 40% year-on-year to $53.5 million

·                      Revenues from online advertising services increased by 5% year-on-year to $27.1 million

 

·                      Loss from operations was $31.5 million, a decrease of 32% from $46.3 million for the same quarter of 2017. Non-GAAP1 loss from operations was $27.1 million, a decrease of 35% from $41.8 million for the same quarter of 2017

 

·                      Net loss attributable to Leju Holdings Limited shareholders was $20.9 million, or $0.15 loss per diluted American depositary share (“ADS”), a decrease of 26% from $28.2 million, or $0.21 loss per diluted ADS, for the same quarter of 2017. Non-GAAP net loss attributable to Leju Holdings Limited shareholders was $17.3 million, or $0.13 loss per diluted ADS, a decrease of 29% from $24.2 million, or $0.18 loss per diluted ADS, for the same quarter of 2017

 

“I’m pleased that our businesses returned to a growth trajectory in the first quarter of 2018 despite the overall market environment not showing signs of major improvement,” said Mr. Geoffrey He, Leju’s Chief Executive Officer. “Our e-commerce business had a strong recovery, benefitting from larger contribution from lower-tier cities and higher value per coupon. We also entered into annual framework contracts with many leading real estate developers. Our online advertising business achieved steady growth in the first quarter as a result of our big-data based suite of targeted advertising products, which continued to be well received by the market. Meanwhile, we further enhanced our media influence and content productivity through enhancing ‘Leju Finance’, our recently launched real estate vertical media platform, which helped lay a solid foundation for future growth. In addition, our efforts to streamline our cost structure began to show results in the first quarter. We will continue to improve our operational efficiency and aim to return to profitability. “

 

First Quarter 2018 Results

 

Total revenues were $81.5 million, an increase of 19% from $68.3 million for the same quarter of 2017, mainly due to an increase in revenues from e-commerce services and online advertising services.

 

Revenues from e-commerce services were $53.5 million, an increase of 40% from $38.1 million for the same quarter of 2017, primarily due to increases in the average price per discount coupon redeemed.

 

Revenues from online advertising services were $27.1 million, an increase of 5% from $25.8 million for the same quarter of 2017, primarily due to an increase in property developers’ demand for online advertising.

 


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.

 



 

Revenues from listing services were $0.9 million, a decrease of 79% from $4.4 million for the same quarter of 2017, primarily due to a decrease in secondary real estate brokers’ demand.

 

Cost of revenues was $18.7 million, an increase of 32% from $14.1 million for the same quarter of 2017, primarily due to increased cost of advertising resources purchased from media platforms, partially offset by decreased staff cost as a result of headcount change.

 

Selling, general and administrative expenses were $95.2 million, a decrease of 5% from $100.5 million for the same quarter of 2017, primarily due to lower staff cost as a result of headcount change.

 

Loss from operations was $31.5 million, a decrease of 32% from $46.3 million for the same quarter of 2017. Non-GAAP loss from operations was $27.1 million, a decrease of 35% from $41.8 million for the same quarter of 2017.

 

Net loss was $21.3 million, a decrease of 26% from $28.6 million for the same quarter of 2017. Non-GAAP net loss was $17.7 million, a decrease of 28% from $24.7 million for the same quarter of 2017.

 

Net loss attributable to Leju Holdings Limited shareholders was $20.9 million, or $0.15 loss per diluted ADS, a decrease of 26% from $28.2 million, or $0.21 loss per diluted ADS, for the same quarter of 2017. Non-GAAP net loss attributable to Leju Holdings Limited shareholders was $17.3 million, or $0.13 loss per diluted ADS, a decrease of 29% from $24.2 million, or $0.18 loss per diluted ADS, for the same quarter of 2017.

 

Cash Flow

 

As of March 31, 2018, the Company’s cash and cash equivalents balance was $157.2 million.

 

First quarter 2018 net cash provided by operating activities was $1.0 million, primarily comprised of non-GAAP net loss of $17.7 million, partially offset by a decrease in customer deposit of $17.5 million.

 

Business Outlook

 

The Company estimates that its total revenues for the second quarter of 2018 will be approximately $106 million to $111 million, which would represent an increase of approximately 15% to 20% from $92.7 million in the same quarter in 2017. 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 May 28, 2018 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:

+1-845-675-0437

Hong Kong:

+852-3018-6771

Mainland China:

+400-620-8038

 

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 June 5, 2018:

 

U.S./International:

+1-855-452-5696

Hong Kong:

+800-963-117

Mainland China:

+400-632-2162

Passcode:

4696567

 

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 limited operating history and lack of experience as a stand-alone public company, given its carve-out from E-House and prior reliance on E-House for various corporate services; 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; complexities resulting from its ongoing relationships with E-House, due to E-House’s status as a principal shareholder of 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. Christina Wu

Leju Holdings Limited

Phone: +86 (10) 5895-1062

E-mail: ir@leju.com

 

Philip Lisio

Foote Group

Phone: +86 135-0116-6560

E-mail: phil@thefootegroup.com

 



 

LEJU HOLDINGS LIMITED

UNAUDITED CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars)

 

 

 

December 31,

 

March 31,

 

 

 

2017

 

2018

 

ASSETS

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

 

150,968

 

157,159

 

Restricted cash

 

337

 

350

 

Accounts receivable, net

 

79,196

 

77,504

 

Contract assets

 

1,410

 

1,571

 

Marketable securities

 

3,077

 

3,115

 

Prepaid expenses and other current assets

 

9,945

 

9,104

 

Customer deposits

 

35,823

 

16,066

 

Amounts due from related parties

 

4,077

 

1,248

 

Total current assets

 

284,833

 

266,117

 

Property and equipment, net

 

14,240

 

14,176

 

Intangible assets, net

 

70,631

 

67,149

 

Investment in affiliates

 

146

 

132

 

Deferred tax assets

 

67,084

 

69,709

 

Other non-current assets

 

2,010

 

1,692

 

Total assets

 

438,944

 

418,975

 

LIABILITIES AND EQUITY

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable

 

2,950

 

1,968

 

Accrued payroll and welfare expenses

 

37,082

 

27,794

 

Income tax payable

 

63,380

 

56,428

 

Other tax payable

 

11,654

 

11,337

 

Amounts due to related parties

 

3,093

 

10,045

 

Advance from customers and deferred revenue

 

10,565

 

12,878

 

Accrued marketing and advertising expenses

 

18,852

 

22,617

 

Other current liabilities

 

16,315

 

18,239

 

Total current liabilities

 

163,891

 

161,306

 

Deferred tax liabilities

 

18,016

 

18,721

 

Total liabilities

 

181,907

 

180,027

 

Shareholders’ Equity

 

 

 

 

 

Ordinary shares ($0.001 par value): 1,000,000,000 shares authorized, 135,763,962 and 135,763,962 shares issued and outstanding, as of December 31, 2017 and March 31, 2018, respectively

 

136

 

136

 

Additional paid-in capital

 

788,589

 

789,579

 

Accumulated deficit

 

(515,344

)

(536,226

)

Accumulated other comprehensive loss

 

(13,078

)

(10,766

)

Total Leju Holdings Limited shareholders’ equity

 

260,303

 

242,723

 

Non-controlling interests

 

(3,266

)

(3,775

)

Total equity

 

257,037

 

238,948

 

TOTAL LIABILITIES AND EQUITY

 

438,944

 

418,975

 

 



 

LEJU HOLDINGS LIMITED

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

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

 

 

 

Three months ended

 

 

 

March 31,

 

 

 

2017

 

2018

 

Revenues

 

 

 

 

 

E-commerce

 

38,091

 

53,470

 

Online advertising

 

25,793

 

27,130

 

Listing

 

4,424

 

923

 

Total revenues

 

68,308

 

81,523

 

Cost of revenues

 

(14,130

)

(18,675

)

Selling, general and administrative expenses

 

(100,521

)

(95,178

)

Other operating income

 

71

 

830

 

Loss from operations

 

(46,272

)

(31,500

)

Interest income

 

283

 

287

 

Other income, net

 

128

 

2,837

 

Loss before taxes and loss from equity in affiliates

 

(45,861

)

(28,376

)

Income tax benefit

 

17,293

 

7,117

 

Loss before loss from equity in affiliates

 

(28,568

)

(21,259

)

Loss from equity in affiliates

 

(76

)

(19

)

Net Loss

 

(28,644

)

(21,278

)

Less: net loss attributable to non-controlling interests

 

(471

)

(416

)

Loss attributable to Leju Holdings Limited shareholders

 

(28,173

)

(20,862

)

 

 

 

 

 

 

Loss per share:

 

 

 

 

 

Basic/ Diluted

 

(0.21

)

(0.15

)

Shares used in computation of loss per share:

 

 

 

 

 

Basic/ Diluted

 

135,541,514

 

135,763,962

 

 

Note 1

The conversion of functional currency Renminbi (“RMB”) amounts into reporting currency USD amounts is based on the rate of USD1 = RMB6.2881 on March 31, 2018 and USD1 = RMB6.4088 for the three months ended March 31, 2018

 



 

LEJU HOLDINGS LIMITED

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(In thousands of U.S. dollars)

 

 

 

Three months ended

 

 

 

March 31,

 

 

 

2017

 

2018

 

 

 

 

 

 

 

Net loss

 

(28,644

)

(21,278

)

Other comprehensive loss, net of tax of nil

 

 

 

 

 

Foreign currency translation adjustment

 

1,243

 

2,209

 

 

 

 

 

 

 

Comprehensive loss

 

(27,401

)

(19,069

)

 

 

 

 

 

 

Less: Comprehensive loss attributable to non-controlling interest

 

(478

)

(518

)

 

 

 

 

 

 

Comprehensive loss attributable to Leju Holdings Limited shareholders

 

(26,923

)

(18,551

)

 



 

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

 

 

 

March 31,

 

 

 

2017

 

2018

 

 

 

 

 

 

 

GAAP loss from operations

 

(46,272

)

(31,500

)

Share-based compensation expense

 

1,422

 

979

 

Amortization of intangible assets resulting from business acquisitions

 

3,031

 

3,450

 

Non-GAAP loss from operations

 

(41,819

)

(27,071

)

 

 

 

 

 

 

GAAP net loss

 

(28,644

)

(21,278

)

Share-based compensation expense (net of tax)

 

1,422

 

979

 

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

 

2,570

 

2,633

 

Non-GAAP net loss

 

(24,652

)

(17,666

)

 

 

 

 

 

 

Net loss attributable to Leju Holdings Limited shareholders

 

(28,173

)

(20,862

)

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

 

1,414

 

971

 

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

 

2,570

 

2,633

 

Non-GAAP net loss attributable to Leju Holdings Limited shareholders

 

(24,189

)

(17,258

)

 

 

 

 

 

 

GAAP net loss per ADS — basic/ diluted

 

(0.21

)

(0.15

)

 

 

 

 

 

 

Non-GAAP net loss per ADS — basic/ diluted

 

(0.18

)

(0.13

)

 

 

 

 

 

 

Shares used in calculating basic GAAP / non-GAAP net loss attributable to Leju Holdings Limited shareholders per ADS

 

135,541,514

 

135,763,962

 

Shares used in calculating diluted GAAP / non-GAAP net loss attributable to Leju Holdings Limited shareholders per ADS

 

135,541,514

 

135,763,962

 

 



 

LEJU HOLDINGS LIMITED

SELECTED OPERATING DATA

 

 

 

Three months ended

 

 

 

March 31,

 

 

 

2017

 

2018

 

Operating data for e-commerce services

 

 

 

 

 

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

 

43,449

 

19,678

 

Number of discount coupons redeemed (number of transactions)

 

18,987

 

13,799