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 2015

 


 

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: May 20, 2015

 

2



 

Exhibit Index

 

Exhibit 99.1 — Press release

 

3


Exhibit 99.1

 

Leju Reports First Quarter 2015 Results

 

BEIJING, May 19, 2015 — 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, 2015.

 

First Quarter 2015 Financial Highlights

 

·                      Total revenues increased by 19% year-on-year to $93.4 million

·                      Revenues from e-commerce services increased by 35% year-on-year to $67.1 million

 

·                      Non-GAAP1 net income attributable to Leju shareholders was $1.0 million, or $0.01 per diluted American depositary share (“ADS”)

 

“We are pleased with the Company’s operational and financial performance during the first quarter of 2015,” said Mr. Geoffrey He, Leju’s chief executive officer. “We grew our revenues by 19% year over year amidst increasingly intense market competition as well as a seasonally slow quarter with a late Chinese New Year holiday period. We began to see an increased level of market activities in March and are encouraged to see the improvement continue into the second quarter. We believe our operating strategy and market leadership make us well-prepared to capitalize on a recovering market in 2015.

 

“Operationally, we continued to focus on building the leading O2O service platform for real estate marketing across the primary, secondary and home furnishing markets. Our platform for primary services combines our marketing expertise in media, e-commerce, membership service and brokerage connectivity to offer comprehensive services to developers and homebuyers throughout the sale and purchase process. Our informational platform for listing services is gaining momentum nationally and adding listing agents to our network. Furthermore, our Qianggongzhang.com platform for home furnishing services has generated significant interest and growth since its official launch in January this year, and already has attracted over 10,000 contractors on the platform in 50 cities.”

 

First Quarter 2015 Results

 

Total revenues were $93.4 million, an increase of 19% from $78.5 million for the same quarter of 2014, mainly driven by growth of revenues from e-commerce services.

 

Revenues from e-commerce services were $67.1 million, an increase of 35% from $49.7 million for the same quarter of 2014, primarily due to the expansion of the Company’s e-commerce business through partnerships with property developers.

 

Revenues from online advertising services were $22.5 million, a decrease of 8% from $24.6 million for the same quarter of 2014, primarily due to the slowdown in primary home sales.

 

Revenues from listing services were $3.8 million, a decrease of 9% from $4.2 million for the same quarter of 2014, primarily due to discounts offered by the Company to secondary agencies.

 

Cost of revenues was $14.9 million, an increase of 22% from $12.1 million for the same quarter of 2014, primarily due to increased editorial department headcount, which was partially offset by decreased amortization expenses of intangible assets.

 


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



 

Selling, general and administrative expenses were $86.3 million, an increase of 34% from $64.5 million for the same quarter of 2014, primarily due to increased marketing expenses related to the Company’s e-commerce business.

 

Loss from operations was $7.5 million in the first quarter of 2015, compared to income from operations of $2.0 million for the same quarter of 2014. Non-GAAP loss from operations was $0.4 million, compared to non-GAAP income from operations of $8.4 million for the same quarter of 2014.

 

Net loss was $5.5 million, compared to net income of $1.8 million for the same quarter of 2014. Non-GAAP net income was $0.9 million, a decrease of 88% from $7.2 million for the same quarter of 2014.

 

Net loss attributable to Leju shareholders was $5.3 million, or a loss of $0.04 per diluted ADS, compared to net income attributable to Leju shareholders of $2.2 million, or $0.02 per diluted ADS, for the same quarter of 2014. Non-GAAP net income attributable to Leju shareholders was $1.0 million, or $0.01 per diluted ADS, a decrease of 87% from $7.7 million, or $0.06 per diluted ADS, for the same quarter of 2014.

 

Cash Flow

 

As of March 31, 2015, the Company’s cash and cash equivalents balance was $287.4 million.

 

First quarter 2015 net cash used in operating activities was $24.2 million, mainly comprised of an increase in customer deposits of $15.3 million and a decrease in accrued payroll and welfare of $8.5 million. Net cash used in investing activities was $0.5 million, mainly comprised of a payment of $0.6 million for property and equipment. Net cash used in financing activities was $5.1 million, mainly comprised of a payment of $6.1 million to acquire non-controlling interests.

 

Business Outlook

 

The Company maintains its fiscal year 2015 total revenue guidance of approximately $600 million to $620 million, which would represent an increase of approximately 21% to 25% from $496.0 million in 2014. 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 19, 2015 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:

800-819-0121

 

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 numbers until May 27, 2015:

 

U.S./International:

+1-646-254-3697

Hong Kong:

+852-3051-2780

Mainland China:

800-870-0205

Passcode:

43376407

 

2



 

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 leading internet companies such as SINA Corporation and Baidu Inc., 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 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.

 

3



 

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

 

Mr. Derek Mitchell

Ogilvy Financial

In the U.S.: +1 (646) 867-1888

In China: +86 (10) 8520-6139

E-mail: leju@ogilvy.com

 

4



 

LEJU HOLDINGS LIMITED

UNAUDITED CONSOLIDATED BALANCE SHEET

(In thousands of U.S. dollars)

 

 

 

December 31,

 

March 31,

 

 

 

2014

 

2015

 

ASSETS

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

 

317,811

 

287,364

 

Accounts receivable, net

 

119,742

 

114,598

 

Deferred tax assets, net

 

29,858

 

29,745

 

Prepaid expenses and other current assets

 

13,355

 

17,047

 

Customer deposits

 

 

15,279

 

Amounts due from related parties

 

1

 

9

 

Total current assets

 

480,767

 

464,042

 

Property and equipment, net

 

7,159

 

6,849

 

Intangible assets, net

 

105,419

 

112,326

 

Investment in affiliates

 

273

 

194

 

Goodwill

 

40,563

 

40,514

 

Other non-current assets

 

4,085

 

3,510

 

Total assets

 

638,266

 

627,435

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable

 

371

 

177

 

Accrued payroll and welfare expenses

 

48,007

 

39,465

 

Income tax payable

 

57,246

 

51,713

 

Other tax payable

 

27,805

 

25,645

 

Amounts due to related parties

 

5,289

 

14,124

 

Dividend payables

 

 

26,873

 

Advance from customers and deferred revenue

 

5,054

 

6,694

 

Liability for exclusive rights, current

 

 

12,211

 

Accrued marketing and advertising expenses

 

19,270

 

10,249

 

Consideration payable of acquiring non-controlling interest

 

25,646

 

19,427

 

Other current liabilities

 

8,612

 

8,770

 

Total current liabilities

 

197,300

 

215,348

 

Deferred tax liabilities

 

26,042

 

25,943

 

Total liabilities

 

223,342

 

241,291

 

Equity

 

 

 

 

 

Ordinary shares ($0.001 par value): 500,000,000 shares authorized, 134,015,621 and 134,365,111 shares issued and outstanding, as of December 31, 2014 and March 31, 2015, respectively

 

134

 

134

 

Additional paid-in capital

 

788,247

 

765,002

 

Accumulated deficit

 

(377,876

)

(383,476

)

Subscription receivables

 

(689

)

(13

)

Accumulated other comprehensive income

 

5,030

 

4,556

 

Total Leju equity

 

414,846

 

386,203

 

Non-controlling interests

 

78

 

(59

)

Total equity

 

414,924

 

386,144

 

TOTAL LIABILITIES AND EQUITY

 

638,266

 

627,435

 

 

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

 

 

 

March 31,

 

 

 

2014

 

2015

 

Revenues

 

 

 

 

 

E-commerce

 

49,721

 

67,056

 

Online advertising

 

24,602

 

22,542

 

Listing

 

4,218

 

3,833

 

Total revenues

 

78,541

 

93,431

 

Cost of revenues

 

(12,136

)

(14,864

)

Selling, general and administrative expenses

 

(64,467

)

(86,279

)

Other operating income

 

22

 

224

 

Income (loss) from operations

 

1,960

 

(7,488

)

Interest income

 

213

 

389

 

Other income (loss), net

 

(14

)

179

 

Income (loss) before taxes and equity in affiliates

 

2,159

 

(6,920

)

Income tax benefit (expense)

 

(356

)

1,541

 

Income (loss) before equity in affiliates

 

1,803

 

(5,379

)

Loss from equity in affiliates

 

(46

)

(78

)

Net income (loss)

 

1,757

 

(5,457

)

Less: net loss attributable to non-controlling interests

 

(485

)

(134

)

Net income (loss) attributable to Leju shareholders

 

2,242

 

(5,323

)

 

 

 

 

 

 

Earnings (loss) per share:

 

 

 

 

 

Basic

 

0.02

 

(0.04

)

Diluted

 

0.02

 

(0.04

)

Shares used in computation:

 

 

 

 

 

Basic

 

120,000,000

 

134,108,003

 

Diluted

 

121,876,949

 

134,108,003

 

 

Note 1

 

The conversion of Renminbi (“RMB”) amounts into USD amounts is based on the rate of USD1 = RMB6.1422 on March 31, 2015 and USD1 = RMB6.1364 for the three months ended March 31, 2015

 

6



 

LEJU HOLDINGS LIMITED

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(In thousands of U.S. dollars)

 

 

 

Three months ended

 

 

 

March 31,

 

 

 

2014

 

2015

 

 

 

 

 

 

 

Net income (loss)

 

1,757

 

(5,457

)

Other comprehensive loss, net of tax of nil

 

 

 

 

 

Foreign currency translation adjustment

 

(815

)

(477

)

 

 

 

 

 

 

Comprehensive income (loss)

 

942

 

(5,934

)

 

 

 

 

 

 

Less: Comprehensive loss attributable to non-controlling interest

 

(584

)

(137

)

 

 

 

 

 

 

Comprehensive income (loss) attributable to Leju shareholders

 

1,526

 

(5,797

)

 

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

 

 

 

March 31,

 

 

 

2014

 

2015

 

 

 

 

 

 

 

GAAP income (loss) from operations

 

1,960

 

(7,488

)

Share-based compensation expense

 

1,677

 

3,955

 

Amortization of intangible assets resulting from business acquisitions

 

4,749

 

3,175

 

Non-GAAP income (loss) from operations

 

8,386

 

(358

)

 

 

 

 

 

 

GAAP net income (loss)

 

1,757

 

(5,457

)

Share-based compensation expense (net of tax)

 

1,677

 

3,955

 

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

 

3,788

 

2,381

 

Non-GAAP net income

 

7,222

 

879

 

 

 

 

 

 

 

Net income (loss) attributable to Leju shareholders

 

2,242

 

(5,323

)

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

 

1,677

 

3,955

 

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

 

3,732

 

2,381

 

Non-GAAP net income attributable to Leju shareholders

 

7,651

 

1,013

 

 

 

 

 

 

 

GAAP net income (loss) per ADS — basic

 

0.02

 

(0.04

)

 

 

 

 

 

 

GAAP net income (loss) per ADS — diluted

 

0.02

 

(0.04

)

 

 

 

 

 

 

Non-GAAP net income per ADS — basic

 

0.06

 

0.01

 

 

 

 

 

 

 

Non-GAAP net income per ADS — diluted

 

0.06

 

0.01

 

 

 

 

 

 

 

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

 

120,000,000

 

134,108,003

 

Shares used in calculating diluted GAAP net income (loss) attributable to Leju shareholders per ADS

 

121,876,949

 

134,108,003

 

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

 

121,876,949

 

136,887,974

 

 

8



 

LEJU HOLDINGS LIMITED

SELECTED OPERATING DATA

 

 

 

Three months ended

 

 

 

March 31,

 

 

 

2014

 

2015

 

Operating data for e-commerce services

 

 

 

 

 

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

 

48,440

 

40,765

 

Number of discount coupons redeemed (number of transactions)

 

33,872

 

32,111

 

 

9