UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of August 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: August 27, 2015

 

2



 

Exhibit Index

 

Exhibit 99.1 — Press release

 

3


Exhibit 99.1

 

Leju Reports Second Quarter 2015 Results

 

BEIJING, August 25, 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 June 30, 2015.

 

Second Quarter 2015 Financial Highlights

 

·                      Total revenues increased by 34% year-on-year to $157.8 million

·                      Revenues from e-commerce services increased by 72% year-on-year to $117.4 million

·                      Revenues from listing services increased by 23% year-on-year to $5.2 million

 

·                      Non-GAAP(1) income from operations decreased by 13% year-on-year to $21.0 million

 

·                      Non-GAAP net income attributable to Leju shareholders decreased by 16% year-on-year to $17.1 million, or $0.12 per diluted ADS

 

First Half 2015 Financial Highlights

 

·                      Total revenues increased by 28% year-on-year to $251.2 million

·                      Revenues from e-commerce services increased by 56% year-on-year to $184.4 million

·                      Revenues from listing services increased by 7% year-on-year to $9.0 million

 

·                      Non-GAAP income from operations decreased by 36% year-on-year to $20.7 million.

 

·                      Non-GAAP net income attributable to Leju shareholders decreased by 36% year-on-year to $18.1 million, or $0.13 per diluted ADS.

 

“We are pleased with the Company’s revenue growth this quarter,” said Mr. Geoffrey He, Leju’s chief executive officer. “Real estate market activity in major Chinese cities gradually recovered in the second quarter, which benefited all of Leju’s businesses lines. We focused on increasing our market share in the e-commerce business and developing new products and services that aim to improve the connectivity between online and offline home purchasing activities. We resumed growth in our secondary verified listing business as a result of increased subscribing agents and steady pricing levels. In addition, our home furnishing contractor platform launched this year continued to gain momentum in attracting new contractors and has recently set up our closed loop transaction platform. We believe our clear strategies across the three business lines will help the Company achieve immediate and long-term success as a leading O2O services platform.”

 

Second Quarter 2015 Results

 

Total revenues were $157.8 million, an increase of 34% from $117.4 million for the same quarter of 2014, mainly driven by growth of revenues from e-commerce services.

 

Revenues from e-commerce services were $117.4 million, an increase of 72% from $68.3 million for the same quarter of 2014, primarily due to increases in both the number of discount coupons redeemed and in the average price per discount coupon redeemed.

 

Revenues from online advertising services were $35.2 million, a decrease of 21% from $44.8 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 $5.2 million, an increase of 23% from $4.2 million for the same quarter of 2014, primarily due to growth in secondary home sales.

 

Cost of revenues was $15.7 million, an increase of 34% from $11.7 million for the same quarter of 2014, primarily due to increased staff cost of editorial department and increased amortization of intangible assets consisting of exclusive rights.

 

Selling, general and administrative expenses were $127.5 million, an increase of 44% from $88.5 million for the same quarter of 2014, primarily due to increased marketing expenses related to the growth of the Company’s e-commerce business.

 

Income from operations was $15.0 million in the second quarter of 2015, a decrease of 19% from $18.5 million for the same quarter of 2014. Non-GAAP income from operations was $21.0 million, a decrease of 13% from $24.1 million for the same quarter of 2014.

 

Net income was $11.6 million, a decrease of 26% from $15.6 million for the same quarter of 2014. Non-GAAP net income was $16.9 million, a decrease of 19% from $20.8 million for the same quarter of 2014.

 

Net income attributable to Leju shareholders was $11.8 million, or $0.09 per diluted ADS, a decrease of 23% from $15.4 million, or $0.12 per diluted ADS, for the same quarter of 2014. Non-GAAP net income attributable to Leju shareholders was $17.1 million, or $0.12 per diluted ADS, a decrease of 16% from $20.5 million, or $0.15 per diluted ADS, for the same quarter of 2014.

 

First Half 2015 Results

 

Total revenues were $251.2 million, an increase of 28% from $195.9 million for the same period of 2014, mainly driven by growth of revenues from e-commerce services.

 

Revenues from e-commerce services were $184.4 million, an increase of 56% from $118.0 million for the same period of 2014, primarily due to an increase in the average price per discount coupon redeemed.

 

Revenues from online advertising services were $57.8 million, a decrease of 17% from $69.4 million for the same period of 2014, primarily due to a decrease in property developers’ online advertising demand.

 

Revenues from listing services were $9.0 million, an increase of 7% from $8.5 million for the same period of 2014, primarily due to the growth in secondary home sales in the second quarter of 2015.

 

Cost of revenues was $30.5 million, an increase of 28% from $23.9 million for the same period of 2014, primarily due to increased staff cost of editorial department as a result of increased headcount and amortization of intangible assets consisting of exclusive rights.

 

Selling, general and administrative expenses were $213.7 million, an increase of 40% from $153.0 million for the same period of 2014, primarily due to increased marketing expenses related to the growth of the Company’s e-commerce business.

 

Income from operations was $7.5 million in the first half of 2015, a decrease of 63% from $20.5 million for the same period of 2014. Non-GAAP income from operations was $20.7 million, a decrease of 36% from $32.5 million for the same period of 2014.

 

Net income was $6.2 million, a decrease of 65% from $17.4 million for the same period of 2014. Non-GAAP net income was $17.8 million, a decrease of 37% from $28.0 million for the same period of 2014.

 

Net income attributable to Leju shareholders was $6.5 million, or $0.05 per diluted ADS, a

 

2



 

decrease of 63% from $17.6 million, or $0.14 per diluted ADS, for the same period of 2014. Non-GAAP net income attributable to Leju shareholders was $18.1 million, or $0.13 per diluted ADS, a decrease of 36% from $28.1 million, or $0.22 per diluted ADS, for the same period of 2014.

 

Cash Flow

 

As of June 30, 2015, the Company’s cash and cash equivalents balance was $263.3 million.

 

Second quarter 2015 net cash provided by operating activities was $9.3 million, mainly attributable to non-GAAP net income of $16.9 million, an increase in other tax payable and income tax payable of $6.2 million, and an increase in accrued payroll and welfare of $4.4 million, partially offset by an increase in accounts receivable of $9.5 million and a decrease in amount due to related parties of $7.2 million. Net cash used in investing activities was $4.6 million, mainly comprised of a payment of $4.1 million for exclusive rights. Net cash used in financing activities was $29.4 million, mainly comprised of a dividend payment of $26.9 million and a payment of $2.9 million for acquisition of non-controlling interests, which was made in 2014.

 

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 August 25, 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:

+1-855-298-3404

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 September 1, 2015:

 

U.S./International:

+1-866-846-0868

Hong Kong:

+ 800-966-697

Mainland China:

+ 400-184-2240

Passcode:

9929582

 

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.

 

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.

 

4



 

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

 

5



 

LEJU HOLDINGS LIMITED

UNAUDITED CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars)

 

 

 

December 31,

 

June 30,

 

 

 

2014

 

2015

 

ASSETS

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

 

317,811

 

263,348

 

Accounts receivable, net

 

119,742

 

121,679

 

Deferred tax assets, net

 

29,858

 

29,884

 

Prepaid expenses and other current assets

 

13,355

 

22,879

 

Customer deposits

 

 

17,804

 

Amounts due from related parties

 

1

 

9

 

Total current assets

 

480,767

 

455,603

 

Property and equipment, net

 

7,159

 

6,910

 

Intangible assets, net

 

105,419

 

105,126

 

Investment in affiliates

 

273

 

118

 

Goodwill

 

40,563

 

40,575

 

Other non-current assets

 

4,085

 

3,029

 

Total assets

 

638,266

 

611,361

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable

 

371

 

441

 

Accrued payroll and welfare expenses

 

48,007

 

43,915

 

Income tax payable

 

57,246

 

54,167

 

Other tax payable

 

27,805

 

29,480

 

Amounts due to related parties

 

5,289

 

6,969

 

Advance from customers and deferred revenue

 

5,054

 

5,905

 

Liability for exclusive rights, current

 

 

8,179

 

Accrued marketing and advertising expenses

 

19,270

 

10,371

 

Consideration payable of acquiring non-controlling interest

 

25,646

 

16,601

 

Other current liabilities

 

8,612

 

8,343

 

Total current liabilities

 

197,300

 

184,371

 

Deferred tax liabilities

 

26,042

 

26,065

 

Total liabilities

 

223,342

 

210,436

 

Equity

 

 

 

 

 

Ordinary shares ($0.001 par value): 500,000,000 shares authorized, 134,015,621 and 134,656,156 shares issued and outstanding, as of December 31, 2014 and June 30, 2015, respectively

 

134

 

135

 

Additional paid-in capital

 

788,247

 

767,822

 

Accumulated deficit

 

(377,876

)

(371,905

)

Subscription receivables

 

(689

)

 

Accumulated other comprehensive income

 

5,030

 

5,146

 

Total Leju equity

 

414,846

 

401,198

 

Non-controlling interests

 

78

 

(273

)

Total equity

 

414,924

 

400,925

 

TOTAL LIABILITIES AND EQUITY

 

638,266

 

611,361

 

 

6



 

LEJU HOLDINGS LIMITED

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

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

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

 

 

 

2014

 

2015

 

2014

 

2015

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

E-commerce

 

68,311

 

117,363

 

118,032

 

184,419

 

Online advertising services

 

44,814

 

35,244

 

69,416

 

57,786

 

Listing services

 

4,238

 

5,199

 

8,456

 

9,032

 

Total revenues

 

117,363

 

157,806

 

195,904

 

251,237

 

Cost of revenues

 

(11,726

)

(15,662

)

(23,862

)

(30,526

)

Selling, general and administrative expenses

 

(88,485

)

(127,457

)

(152,952

)

(213,736

)

Other operating income

 

1,356

 

287

 

1,378

 

511

 

Income from operations

 

18,508

 

14,974

 

20,468

 

7,486

 

Interest income

 

216

 

254

 

429

 

643

 

Other income (expenses), net

 

77

 

(38

)

63

 

141

 

Income before taxes and equity in affiliates

 

18,801

 

15,190

 

20,960

 

8,270

 

Income tax expense

 

(3,102

)

(3,484

)

(3,458

)

(1,943

)

Income before equity in affiliates

 

15,699

 

11,706

 

17,502

 

6,327

 

Loss from equity in affiliates

 

(68

)

(77

)

(114

)

(155

)

Net income

 

15,631

 

11,629

 

17,388

 

6,172

 

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

 

260

 

(217

)

(225

)

(351

)

Net income attributable to Leju shareholders

 

15,371

 

11,846

 

17,613

 

6,523

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

Basic

 

0.12

 

0.09

 

0.14

 

0.05

 

Diluted

 

0.12

 

0.09

 

0.14

 

0.05

 

Shares used in computation:

 

 

 

 

 

 

 

 

 

Basic

 

130,126,703

 

134,574,518

 

125,063,352

 

134,341,261

 

Diluted

 

133,029,471

 

136,996,405

 

127,453,210

 

136,942,190

 

 

Note 1

The conversion of Renminbi (“RMB”) amounts into USD amounts is based on the rate of USD1 = RMB6.1136 on June 30, 2015 and USD1 = RMB6.1223 for the three months ended June 30, 2015

 

7



 

LEJU HOLDINGS LIMITED

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands of U.S. dollars)

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

 

 

 

2014

 

2015

 

2014

 

2015

 

 

 

 

 

 

 

 

 

 

 

Net income

 

15,631

 

11,629

 

17,388

 

6,172

 

Other comprehensive income (loss), net of tax of nil

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

161

 

594

 

(654

)

117

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

15,792

 

12,223

 

16,734

 

6,289

 

 

 

 

 

 

 

 

 

 

 

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

 

249

 

(214

)

(335

)

(351

)

 

 

 

 

 

 

 

 

 

 

Comprehensive income attributable to Leju shareholders

 

15,543

 

12,437

 

17,069

 

6,640

 

 

8



 

LEJU HOLDINGS LIMITED

Unaudited Reconciliation of GAAP and Non-GAAP Results

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

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

 

 

 

2014

 

2015

 

2014

 

2015

 

 

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

GAAP income from operations

 

18,508

 

14,974

 

20,468

 

7,486

 

Share-based compensation expense

 

2,361

 

2,879

 

4,038

 

6,834

 

Amortization of intangible assets resulting from business acquisitions

 

3,272

 

3,164

 

8,021

 

6,339

 

Non-GAAP income from operations

 

24,141

 

21,017

 

32,527

 

20,659

 

 

 

 

 

 

 

 

 

 

 

GAAP net income

 

15,631

 

11,629

 

17,388

 

6,172

 

Share-based compensation expense (net of tax)

 

2,361

 

2,879

 

4,038

 

6,834

 

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

 

2,762

 

2,373

 

6,550

 

4,754

 

Non-GAAP net income

 

20,754

 

16,881

 

27,976

 

17,760

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Leju shareholders

 

15,371

 

11,846

 

17,613

 

6,523

 

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

 

2,361

 

2,879

 

4,038

 

6,834

 

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

 

2,732

 

2,373

 

6,464

 

4,754

 

Non-GAAP net income attributable to Leju shareholders

 

20,464

 

17,098

 

28,115

 

18,111

 

 

 

 

 

 

 

 

 

 

 

GAAP net income per ADS — basic

 

0.12

 

0.09

 

0.14

 

0.05

 

 

 

 

 

 

 

 

 

 

 

GAAP net income per ADS — diluted

 

0.12

 

0.09

 

0.14

 

0.05

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income per ADS — basic

 

0.16

 

0.13

 

0.22

 

0.13

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income per ADS — diluted

 

0.15

 

0.12

 

0.22

 

0.13

 

 

 

 

 

 

 

 

 

 

 

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

 

130,126,703

 

134,574,518

 

125,063,352

 

134,341,261

 

 

 

 

 

 

 

 

 

 

 

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

 

133,029,471

 

136,996,405

 

127,453,210

 

136,942,190

 

 

9



 

LEJU HOLDINGS LIMITED

SELECTED OPERATING DATA

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

 

 

 

2014

 

2015

 

2014

 

2015

 

 

 

 

 

 

 

 

 

 

 

Operating data for e-commerce services

 

 

 

 

 

 

 

 

 

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

 

89,524

 

94,489

 

137,964

 

135,254

 

Number of discount coupons redeemed (number of transactions)

 

49,724

 

52,413

 

83,596

 

84,524

 

 

10