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 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: November 19, 2015

 

2



 

Exhibit Index

 

Exhibit 99.1 — Press release

 

3


Exhibit 99.1

 

Leju Reports Third Quarter 2015 Results

 

BEIJING, November 18, 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 September 30, 2015.

 

Third Quarter 2015 Financial Highlights

 

·                      Total revenues increased by 18% year-on-year to $151.2 million

·                      Revenues from e-commerce services increased by 26% year-on-year to $106.4 million

·                      Revenues from online advertising services decreased by 6% year-on-year to $39.4 million

·                      Revenues from listing services increased by 134% year-on-year to $5.4 million

 

·                      Non-GAAP1 income from operations decreased by 29% year-on-year to $26.7 million

 

·                      Non-GAAP net income attributable to Leju shareholders decreased by 32% year-on-year to $21.1 million, or $0.16 per diluted American depositary share (“ADS”)

 

First Nine Months 2015 Financial Highlights

 

·                      Total revenues increased by 24% year-on-year to $402.4 million

·                      Revenues from e-commerce services increased by 44% year-on-year to $290.9 million

·                      Revenues from online advertising services decreased by 13% year-on-year to $97.2 million

·                      Revenues from listing services increased by 34% year-on-year to $14.4 million

 

·                      Non-GAAP income from operations decreased by 33% year-on-year to $47.3 million

 

·                      Non-GAAP net income attributable to Leju shareholders decreased by 34% year-on-year to $39.3 million, or $0.29 per diluted ADS

 

“We are pleased to report another quarter of revenue growth year over year as our customers continue to recognize the value in our online and offline services,” said Mr. Geoffrey He, Leju’s chief executive officer. “During the third quarter, we achieved a record number of e-commerce projects under operations while steadily growing our listings business. Our marketing platform of online advertising and e-commerce for the primary and secondary housing markets has generated revenues of over $400 million so far this year and solidified our leadership position in this space. Our strategy will remain focused on developing overall marketing solutions for our developer, agency and buyer customers through innovative products and more diversified channels.”

 

Third Quarter 2015 Results

 

Total revenues were $151.2 million, an increase of 18% from $128.3 million for the same quarter of 2014, mainly driven by growth of revenues from e-commerce services.

 

Revenues from e-commerce services were $106.4 million, an increase of 26% from $84.2 million for the same quarter of 2014, primarily due to an increase in the average price per discount coupon redeemed.

 

Revenues from online advertising services were $39.4 million, a decrease of 6% from $41.8 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 $5.4 million, an increase of 134% from $2.3 million for the same quarter of 2014, primarily due to growth in secondary home sales.

 

Cost of revenues was $15.3 million, an increase of 18% from $12.9 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 $117.5 million, an increase of 39% from $84.6 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 $20.8 million, a decrease of 34% from $31.5 million for the same quarter of 2014. Non-GAAP income from operations was $26.7 million, a decrease of 29% from $37.7 million for the same quarter of 2014.

 

Net income was $15.8 million, a decrease of 40% from $26.4 million for the same quarter of 2014. Non-GAAP net income was $20.9 million, a decrease of 35% from $32.0 million for the same quarter of 2014.

 

Net income attributable to Leju shareholders was $16.0 million, or $0.12 per diluted ADS, a decrease of 38% from $25.7 million, or $0.19 per diluted ADS, for the same quarter of 2014. Non-GAAP net income attributable to Leju shareholders was $21.1 million, or $0.16 per diluted ADS, a decrease of 32% from $31.3 million, or $0.23 per diluted ADS, for the same quarter of 2014.

 

First Nine Months 2015 Results

 

Total revenues were $402.4 million, an increase of 24% from $324.2 million for the same period of 2014, mainly driven by growth of revenues from e-commerce services.

 

Revenues from e-commerce services were $290.9 million, an increase of 44% from $202.2 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 $97.2 million, a decrease of 13% from $111.2 million for the same period of 2014, primarily due to a decrease in property developers’ online advertising demand.

 

Revenues from listing services were $14.4 million, an increase of 34% from $10.8 million for the same period of 2014, primarily due to the growth in secondary home sales.

 

Cost of revenues was $45.8 million, an increase of 25% from $36.8 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 $331.2 million, an increase of 39% from $237.5 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 $28.3 million, a decrease of 46% from $52.0 million for the same period of 2014. Non-GAAP income from operations was $47.3 million, a decrease of 33% from $70.2 million for the same period of 2014.

 

Net income was $22.0 million, a decrease of 50% from $43.7 million for the same period of 2014. Non-GAAP net income was $38.7 million, a decrease of 35% from $59.9 million for the same period of 2014.

 

Net income attributable to Leju shareholders was $22.6 million, or $0.17 per diluted ADS, a decrease of 48% from $43.3 million, or $0.33 per diluted ADS, for the same period of 2014.

 

Non-GAAP net income attributable to Leju shareholders was $39.3 million, or $0.29 per diluted ADS, a decrease of 34% from $59.4 million, or $0.45 per diluted ADS, for the same period of 2014.

 

2



 

Cash Flow

 

As of September 30, 2015, the Company’s cash and cash equivalents balance was $291.2 million.

 

Third quarter 2015 net cash provided by operating activities was $49.3 million, mainly attributable to non-GAAP net income of $20.9 million, a decrease in customer deposits of $14.2 million, a decrease in prepaid expenses and other current assets of $3.0 million, an increase in income tax payables and other tax payables of $4.5 million, and an increase in amount due to related parties of $3.9 million. Net cash used in investing activities was $9.1 million, mainly comprised of a payment of $7.9 million for exclusive rights. Net cash used in financing activities was $6.5 million, and mainly comprised of a payment of $6.6 million to acquire non-controlling interests, which were made in 2014.

 

Business Outlook

 

The Company maintains its fiscal 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 November 18, 2015 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 November 25, 2015:

 

U.S./International:

+1-866-846-0868

Hong Kong:

+ 800-966-697

Mainland China:

+ 400-184-2240

Passcode:

1262963

 

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.

 

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 SHEETS

(In thousands of U.S. dollars)

 

 

 

December 31,

 

September 30,

 

 

 

2014

 

2015

 

ASSETS

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

 

317,811

 

291,209

 

Accounts receivable, net

 

119,742

 

126,896

 

Deferred tax assets, net

 

29,858

 

28,720

 

Prepaid expenses and other current assets

 

13,355

 

19,238

 

Customer deposits

 

 

3,623

 

Amounts due from related parties

 

1

 

9

 

Total current assets

 

480,767

 

469,695

 

Property and equipment, net

 

7,159

 

6,694

 

Intangible assets, net

 

105,419

 

97,722

 

Investment in affiliates

 

273

 

414

 

Goodwill

 

40,563

 

40,064

 

Other non-current assets

 

4,085

 

2,290

 

Total assets

 

638,266

 

616,879

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable

 

371

 

496

 

Accrued payroll and welfare expenses

 

48,007

 

44,565

 

Income tax payable

 

57,246

 

57,306

 

Other tax payable

 

27,805

 

30,747

 

Amounts due to related parties

 

5,289

 

10,847

 

Advance from customers and deferred revenue

 

5,054

 

5,660

 

Accrued marketing and advertising expenses

 

19,270

 

10,069

 

Consideration payable of acquiring non-controlling interest

 

25,646

 

10,856

 

Other current liabilities

 

8,612

 

8,075

 

Total current liabilities

 

197,300

 

178,621

 

Deferred tax liabilities

 

26,042

 

25,050

 

Total liabilities

 

223,342

 

203,671

 

Equity

 

 

 

 

 

Ordinary shares ($0.001 par value): 500,000,000 shares authorized, 134,015,621 and 134,681,204 shares issued and outstanding, as of December 31, 2014 and September 30, 2015, respectively

 

134

 

135

 

Additional paid-in capital

 

788,247

 

770,153

 

Accumulated deficit

 

(377,876

)

(356,137

)

Subscription receivables

 

(689

)

 

Accumulated other comprehensive income (loss)

 

5,030

 

(423

)

Total Leju equity

 

414,846

 

413,728

 

Non-controlling interests

 

78

 

(520

)

Total equity

 

414,924

 

413,208

 

TOTAL LIABILITIES AND EQUITY

 

638,266

 

616,879

 

 

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

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

 

 

2014

 

2015

 

2014

 

2015

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

E-commerce

 

84,159

 

106,432

 

202,191

 

290,851

 

Online advertising services

 

41,802

 

39,371

 

111,218

 

97,157

 

Listing services

 

2,313

 

5,403

 

10,769

 

14,435

 

Total revenues

 

128,274

 

151,206

 

324,178

 

402,443

 

Cost of revenues

 

(12,929

)

(15,305

)

(36,791

)

(45,831

)

Selling, general and administrative expenses

 

(84,562

)

(117,511

)

(237,514

)

(331,247

)

Other operating income

 

761

 

2,382

 

2,139

 

2,893

 

Income from operations

 

31,544

 

20,772

 

52,012

 

28,258

 

Interest income

 

377

 

260

 

806

 

903

 

Other income (expenses), net

 

(20

)

107

 

43

 

248

 

Income before taxes and equity in affiliates

 

31,901

 

21,139

 

52,861

 

29,409

 

Income tax expense

 

(5,502

)

(5,244

)

(8,960

)

(7,187

)

Income before equity in affiliates

 

26,399

 

15,895

 

43,901

 

22,222

 

Loss from equity in affiliates

 

(46

)

(75

)

(160

)

(230

)

Net income

 

26,353

 

15,820

 

43,741

 

21,992

 

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

 

670

 

(223

)

445

 

(574

)

Net income attributable to Leju shareholders

 

25,683

 

16,043

 

43,296

 

22,566

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

Basic

 

0.19

 

0.12

 

0.34

 

0.17

 

Diluted

 

0.19

 

0.12

 

0.33

 

0.17

 

Shares used in computation:

 

 

 

 

 

 

 

 

 

Basic

 

133,529,420

 

134,663,857

 

127,885,374

 

134,448,793

 

Diluted

 

137,596,250

 

135,308,945

 

130,834,223

 

136,397,775

 

 

Note 1

The conversion of Renminbi (“RMB”) amounts into USD amounts is based on the rate of USD1 = RMB6.3613 on September 30, 2015 and USD1 = RMB6.2378 for the nine months ended September 30, 2015

 

6



 

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,

 

 

 

2014

 

2015

 

2014

 

2015

 

 

 

 

 

 

 

 

 

 

 

Net income

 

26,353

 

15,820

 

43,741

 

21,992

 

Other comprehensive loss, net of tax of nil

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

(187

)

(5,588

)

(841

)

(5,471

)

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

26,166

 

10,232

 

42,900

 

16,521

 

 

 

 

 

 

 

 

 

 

 

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

 

747

 

(241

)

412

 

(592

)

 

 

 

 

 

 

 

 

 

 

Comprehensive income attributable to Leju shareholders

 

25,419

 

10,473

 

42,488

 

17,113

 

 

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

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

 

 

2014

 

2015

 

2014

 

2015

 

 

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

GAAP income from operations

 

31,544

 

20,772

 

52,012

 

28,258

 

Share-based compensation expense

 

2,844

 

2,739

 

6,882

 

9,573

 

Amortization of intangible assets resulting from business acquisitions

 

3,273

 

3,157

 

11,294

 

9,496

 

Non-GAAP income from operations

 

37,661

 

26,668

 

70,188

 

47,327

 

 

 

 

 

 

 

 

 

 

 

GAAP net income

 

26,353

 

15,820

 

43,741

 

21,992

 

Share-based compensation expense (net of tax)

 

2,844

 

2,739

 

6,882

 

9,573

 

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

 

2,763

 

2,368

 

9,313

 

7,122

 

Non-GAAP net income

 

31,960

 

20,927

 

59,936

 

38,687

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Leju Shareholder

 

25,683

 

16,043

 

43,296

 

22,566

 

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

 

2,844

 

2,739

 

6,882

 

9,573

 

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

 

2,734

 

2,368

 

9,198

 

7,122

 

Non-GAAP net income attributable to Leju shareholders

 

31,261

 

21,150

 

59,376

 

39,261

 

 

 

 

 

 

 

 

 

 

 

GAAP net income per ADS — basic

 

0.19

 

0.12

 

0.34

 

0.17

 

 

 

 

 

 

 

 

 

 

 

GAAP net income per ADS — diluted

 

0.19

 

0.12

 

0.33

 

0.17

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income per ADS — basic

 

0.23

 

0.16

 

0.46

 

0.29

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income per ADS — diluted

 

0.23

 

0.16

 

0.45

 

0.29

 

 

 

 

 

 

 

 

 

 

 

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

 

133,529,420

 

134,663,857

 

127,885,374

 

134,448,793

 

 

 

 

 

 

 

 

 

 

 

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

 

137,596,250

 

135,308,945

 

130,834,223

 

136,397,775

 

 

8



 

LEJU HOLDINGS LIMITED

SELECTED OPERATING DATA

 

 

 

Three months ended

 

Nine months ended

 

 

 

September 30,

 

September 30,

 

 

 

2014

 

2015

 

2014

 

2015

 

 

 

 

 

 

 

 

 

 

 

Operating data for e-commerce services

 

 

 

 

 

 

 

 

 

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

 

85,843

 

70,641

 

223,807

 

205,895

 

Number of discount coupons redeemed (number of transactions)

 

59,811

 

57,303

 

143,407

 

141,827

 

 

9