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 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: August 26, 2016

 

 

 

 

[Signature Page to 6-K]

 

2



 

Exhibit Index

 

Exhibit 99.1 — Press release

 

3


Exhibit 99.1

 

Leju Reports Second Quarter 2016 Results

 

BEIJING, August 25, 2016 — 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 second quarter ended June 30, 2016.

 

Second Quarter 2016 Financial Highlights

 

·                      Total revenues increased slightly to $158.3 million

 

·                      Revenues from e-commerce services increased by 1% year-on-year to $118.2 million

·                      Revenues from online advertising services decreased by 2% year-on-year to $34.4 million

·                      Revenues from listing services increased by 9% year-on-year to $5.7 million

 

·                      Non-GAAP1 income from operations decreased by 21% year-on-year to $16.5 million

 

·                      Non-GAAP net income attributable to Leju shareholders decreased by 11% year-on-year to $15.2 million, or $0.11 per diluted American depositary share (“ADS”)

 

First Half 2016 Financial Highlights

 

·                      Total revenues increased by 8% year-on-year to $271.3 million

 

·                      Revenues from e-commerce services increased by 11% year-on-year to $204.3 million

·                      Revenues from online advertising services decreased by 3% year-on-year to $56.2 million

·                      Revenues from listing services increased by 19% year-on-year to $10.8 million

 

·                      Non-GAAP income from operations decreased by 56% year-on-year to $9.2 million

 

·                      Non-GAAP net income attributable to Leju shareholders decreased by 45% year-on-year to $9.9 million, or $0.07 per diluted ADS

 

“Leju remained focused on being a leading provider of marketing solutions to developers and consumers in the real estate space in 2016,” said Mr. Geoffrey He, Leju’s chief executive officer. “During the second quarter of 2016, we retained our position as a leader in media marketing and e-commerce services in the primary market through product innovation and expanded partnerships. Our secondary listing business and home furnishing business continued steady growth with our home furnishing advertising business widening its market leadership. Our investment into the contractor platform Qiang Gong Zhang (7gz.com) continued to build positive growth momentum. We plan to execute on our strategies across our three business lines to achieve long-term success as a leading O2O services platform.”

 

Second Quarter 2016 Results

 

Total revenues were $158.3 million, relatively flat compared to $157.8 million for the same quarter of 2015.

 

Revenues from e-commerce services were $118.2 million, an increase of 1% from $117.4 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.

 


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 online advertising services were $34.4 million, a decrease of 2% from $35.2 million for the same quarter of 2015, primarily due to a decrease in property developers’ online advertising demand.

 

Revenues from listing services were $5.7 million, an increase of 9% from $5.2 million for the same quarter of 2015, primarily due to growth in secondary home sales.

 

Cost of revenues was $14.6 million, a decrease of 7% from $15.7 million for the same quarter of 2015, primarily due to decreased amortization of intangible assets consisting of exclusive rights that expired in December 2015.

 

Selling, general and administrative expenses were $134.3 million, an increase of 5% from $127.5 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 $10.1 million, a decrease of 33% from $15.0 million for the same quarter of 2015. Non-GAAP income from operations was $16.5 million, a decrease of 21% from $21.0 million for the same quarter of 2015.

 

Net income was $8.6 million, a decrease of 26% from $11.6 million for the same quarter of 2015. Non-GAAP net income was $14.3 million, a decrease of 15% from $16.9 million for the same quarter of 2015.

 

Net income attributable to Leju shareholders was $9.5 million, or $0.07 per diluted ADS, a decrease of 20% from $11.8 million, or $0.09 per diluted ADS, for the same quarter of 2015. Non-GAAP net income attributable to Leju shareholders was $15.2 million, or $0.11 per diluted ADS, a decrease of 11% from $17.1 million, or $0.12 per diluted ADS, for the same quarter of 2015.

 

First Half 2016 Results

 

Total revenues were $271.3 million, an increase of 8% from $251.2 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 $204.3 million, an increase of 11% from $184.4 million for the same period of 2015, primarily due to an increase in the average price per discount coupon redeemed.

 

Revenues from online advertising services were $56.2 million, a decrease of 3% from $57.8 million for the same period of 2015, primarily due to a decrease in property developers’ online advertising demand.

 

Revenues from listing services were $10.8 million, an increase of 19% from $9.0 million for the same period of 2015, primarily due to the growth in secondary home sales.

 

Cost of revenues was $28.2 million, a decrease of 8% from $30.5 million for the same period of 2015, primarily due to decreased amortization of intangible assets consisting of exclusive rights that expired in December 2015.

 

Selling, general and administrative expenses were $247.6 million, an increase of 16% from $213.7 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.

 

2



 

Loss from operations was $3.7 million, compared to income from operations of $7.5 million for the same period of 2015. Non-GAAP income from operations was $9.2 million, a decrease of 56% from $20.7 million for the same period of 2015.

 

Net loss was $2.4 million, compared to net income of $6.2 million for the same period of 2015. Non-GAAP net income was $8.9 million, a decrease of 50% from $17.8 million for the same period of 2015.

 

Net loss attributable to Leju shareholders was $1.4 million, or $0.01 loss per diluted ADS, compared to net income attributable to Leju shareholders of $6.5 million, or $0.05 per diluted ADS, for the same period of 2015. Non-GAAP net income attributable to Leju shareholders was $9.9 million, or $0.07 per diluted ADS, a decrease of 45% from $18.1 million, or $0.13 per diluted ADS, for the same period of 2015.

 

Cash Flow

 

As of June 30, 2016, the Company’s cash and cash equivalents balance was $272.2 million.

 

Second quarter 2016 net cash provided by operating activities was $23.5 million, mainly attributable to non-GAAP net income of $14.3 million, a decrease in customer deposits of $6.0 million, an increase in other current liabilities of $8.1 million, and an increase in accrued payable and welfare expenses of $3.0 million, which were partially offset by an increase in accounts receivable of $7.2 million. Net cash used in investing activities was $2.0 million, mainly comprised of a payment of $2.0 million for property and equipment. Net cash used in financing activities was $3.5 million, and mainly comprised of a payment of $3.6 million to acquire non-controlling interests, which were made in 2014.

 

Business Outlook

 

The Company maintains its fiscal 2016 total revenue guidance of approximately $660 million to $690 million, which would represent an increase of approximately 15% to 20% 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 August 25, 2016 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, 2016:

 

U.S./International:

+1-866-846-0868

 

Hong Kong:

+ 800-966-697

 

Mainland China:

+ 400-184-2240

 

Passcode:

8558568

 

 

Additionally, a live and archived webcast will be available at http://ir.leju.com.

 

3



 

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 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.

 

4



 

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

 

5



 

LEJU HOLDINGS LIMITED

UNAUDITED CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars)

 

 

 

December 31,

 

June 30,

 

 

 

2015

 

2016

 

ASSETS

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

 

260,296

 

272,188

 

Accounts receivable, net

 

113,991

 

106,968

 

Marketable securities

 

 

2,100

 

Deferred tax assets, net

 

31,074

 

30,421

 

Prepaid expenses and other current assets

 

20,881

 

17,890

 

Customer deposits

 

58,833

 

43,568

 

Amounts due from related parties

 

9

 

1,741

 

Total current assets

 

485,084

 

474,876

 

Property and equipment, net

 

6,801

 

7,192

 

Intangible assets, net

 

90,737

 

84,553

 

Investment in affiliates

 

669

 

520

 

Goodwill

 

39,807

 

39,551

 

Other non-current assets

 

3,740

 

3,910

 

Total assets

 

626,838

 

610,602

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable

 

327

 

1,961

 

Accrued payroll and welfare expenses

 

45,692

 

39,046

 

Income tax payable

 

66,815

 

56,092

 

Other tax payable

 

31,930

 

26,747

 

Amounts due to related parties

 

10,214

 

7,481

 

Advance from customers and deferred revenue

 

5,703

 

7,789

 

Accrued marketing and advertising expenses

 

3,915

 

15,328

 

Consideration payable of acquiring non-controlling interest

 

7,339

 

272

 

Other current liabilities

 

7,672

 

10,258

 

Total current liabilities

 

179,607

 

164,974

 

Deferred tax liabilities

 

22,998

 

22,520

 

Total liabilities

 

202,605

 

187,494

 

Equity

 

 

 

 

 

Ordinary shares ($0.001 par value): 500,000,000 shares authorized, 134,930,870 and 135,264,294 shares issued and outstanding, as of December 31, 2015 and June 30, 2016, respectively

 

135

 

135

 

Additional paid-in capital

 

773,766

 

779,559

 

Accumulated deficit

 

(343,658

)

(345,646

)

Subscription receivables

 

(9

)

 

Accumulated other comprehensive income

 

(5,522

)

(9,308

)

Total Leju equity

 

424,712

 

424,740

 

Non-controlling interests

 

(479

)

(1,632

)

Total equity

 

424,233

 

423,108

 

TOTAL LIABILITIES AND EQUITY

 

626,838

 

610,602

 

 

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,

 

 

 

2015

 

2016

 

2015

 

2016

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

 

 

 

 

 

 

 

E-commerce

 

117,363

 

118,219

 

184,419

 

204,307

 

Online advertising services

 

35,244

 

34,433

 

57,786

 

56,214

 

Listing services

 

5,199

 

5,671

 

9,032

 

10,790

 

Total revenues

 

157,806

 

158,323

 

251,237

 

271,311

 

Cost of revenues

 

(15,662

)

(14,639

)

(30,526

)

(28,236

)

Selling, general and administrative expenses

 

(127,457

)

(134,298

)

(213,736

)

(247,610

)

Other operating income

 

287

 

708

 

511

 

810

 

Income (loss) from operations

 

14,974

 

10,094

 

7,486

 

(3,725

)

Investment income (loss)

 

 

3

 

 

(190

)

Interest income

 

254

 

330

 

643

 

552

 

Other income (expenses), net

 

(38

)

516

 

141

 

501

 

Income (loss)before taxes and equity in affiliates

 

15,190

 

10,943

 

8,270

 

(2,862

)

Income tax (expense) benefit

 

(3,484

)

(2,223

)

(1,943

)

581

 

Income (loss) before equity in affiliates

 

11,706

 

8,720

 

6,327

 

(2,281

)

Loss from equity in affiliates

 

(77

)

(76

)

(155

)

(136

)

Net income (loss)

 

11,629

 

8,644

 

6,172

 

(2,417

)

Less: net loss attributable to non-controlling interests

 

(217

)

(884

)

(351

)

(981

)

Net income (loss) attributable to Leju shareholders

 

11,846

 

9,528

 

6,523

 

(1,436

)

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share:

 

 

 

 

 

 

 

 

 

Basic

 

0.09

 

0.07

 

0.05

 

(0.01

)

Diluted

 

0.09

 

0.07

 

0.05

 

(0.01

)

Shares used in computation:

 

 

 

 

 

 

 

 

 

Basic

 

134,574,518

 

135,259,389

 

134,341,261

 

135,117,867

 

Diluted

 

136,996,405

 

135,366,778

 

136,942,190

 

135,117,867

 

 

Note 1

The conversion of Renminbi (“RMB”) amounts into USD amounts is based on the rate of USD1 = RMB6.6312 on June 30, 2016 and USD1 = RMB6.5617 for the six months ended June 30, 2016

 

7



 

LEJU HOLDINGS LIMITED

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(In thousands of U.S. dollars)

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

 

 

 

2015

 

2016

 

2015

 

2016

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

11,629

 

8,644

 

6,172

 

(2,417

)

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

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

594

 

(4,575

)

117

 

(3,785

)

 

 

 

 

 

 

 

 

 

 

Comprehensive income (loss)

 

12,223

 

4,069

 

6,289

 

(6,202

)

 

 

 

 

 

 

 

 

 

 

Less: Comprehensive loss attributable to non-controlling interest

 

(214

)

(882

)

(351

)

(980

)

 

 

 

 

 

 

 

 

 

 

Comprehensive income (loss) attributable to Leju shareholders

 

12,437

 

4,951

 

6,640

 

(5,222

)

 

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,

 

 

 

2015

 

2016

 

2015

 

2016

 

 

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

GAAP income (loss) from operations

 

14,974

 

10,094

 

7,486

 

(3,725

)

Share-based compensation expense

 

2,879

 

3,364

 

6,834

 

6,727

 

Amortization of intangible assets resulting from business acquisitions

 

3,164

 

3,083

 

6,339

 

6,167

 

Non-GAAP income from operations

 

21,017

 

16,541

 

20,659

 

9,169

 

 

 

 

 

 

 

 

 

 

 

GAAP net income (loss)

 

11,629

 

8,644

 

6,172

 

(2,417

)

Share-based compensation expense (net of tax)

 

2,879

 

3,364

 

6,834

 

6,727

 

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

 

2,373

 

2,312

 

4,754

 

4,625

 

Non-GAAP net income

 

16,881

 

14,320

 

17,760

 

8,935

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Leju Shareholder

 

11,846

 

9,528

 

6,523

 

(1,436

)

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

 

2,879

 

3,356

 

6,834

 

6,711

 

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

 

2,373

 

2,312

 

4,754

 

4,625

 

Non-GAAP net income attributable to Leju shareholders

 

17,098

 

15,196

 

18,111

 

9,900

 

 

 

 

 

 

 

 

 

 

 

GAAP net income (loss) per ADS — basic

 

0.09

 

0.07

 

0.05

 

(0.01

)

 

 

 

 

 

 

 

 

 

 

GAAP net income (loss) per ADS — diluted

 

0.09

 

0.07

 

0.05

 

(0.01

)

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income per ADS — basic

 

0.13

 

0.11

 

0.13

 

0.07

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income per ADS — diluted

 

0.12

 

0.11

 

0.13

 

0.07

 

 

 

 

 

 

 

 

 

 

 

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

 

134,574,518

 

135,259,389

 

134,341,261

 

135,117,867

 

 

 

 

 

 

 

 

 

 

 

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

 

136,996,405

 

135,366,778

 

136,942,190

 

135,117,867

 

 

 

 

 

 

 

 

 

 

 

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

 

136,996,405

 

135,366,778

 

136,942,190

 

135,171,562

 

 

9



 

LEJU HOLDINGS LIMITED

SELECTED OPERATING DATA

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

 

 

 

2015

 

2016

 

2015

 

2016

 

 

 

 

 

 

 

 

 

 

 

Operating data for e-commerce services

 

 

 

 

 

 

 

 

 

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

 

94,489

 

76,383

 

135,254

 

135,685

 

Number of discount coupons redeemed (number of transactions)

 

52,413

 

49,982

 

84,524

 

84,225

 

 

10