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 June 2017

 


 

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/Yinyu He

 

Name :

Yinyu He

 

Title :

Chief Executive Officer

 

 

 

Date:                  June 15, 2017

 

 

 

[Signature Page to 6-K]

 

2



 

Exhibit Index

 

Exhibit 99.1 — Press release

 

3


Exhibit 99.1

 

Leju Reports First Quarter 2017 Results

 

BEIJING, June 14, 2017 — 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, 2017.

 

First Quarter 2017 Financial Highlights

 

·                      Total revenues decreased by 40% year-on-year to $68.3 million.

·                      Revenues from e-commerce services decreased by 56% year-on-year to $38.1 million.

·                      Revenues from online advertising services increased by 18% year-on-year to $25.8 million.

·                      Revenues from listing services decreased by 14% year-on-year to $4.4 million.

 

·                      Loss from operations was $46.3 million. Non-GAAP1 loss from operations was $41.8 million.

 

·                      Net loss attributable to Leju shareholders was $28.2 million, or $0.21 loss per diluted American depositary share (“ADS”). Non-GAAP net loss attributable to Leju shareholders was $24.2 million, or $0.18 loss per diluted ADS.

 

“We continued to operate in a difficult environment during the first quarter of 2017,” said Mr. Geoffrey He, Leju’s Chief Executive Officer.  “Tightening measures put in place in late 2016 by the PRC government in the real estate industry, such as price ceilings and required holdings periods, continued to affect market conditions and pose challenges for our businesses, in particular our e-commerce business and secondary listing business. We do not expect significant improvement in market conditions in the near future.”

 

Mr. He continued, “Despite the challenging environment, we maintained our focus on product innovation and client services. Our new marketing products launched late last year were well-received by our clients, and this in turn has helped to solidify many long-term client relationships. Moreover, we are encouraged to see an increase in our advertising revenue in the first quarter despite government policies restricting marketing activities by developers.”

 

First Quarter 2017 Results

 

Total revenues were $68.3 million, a decrease of 40% from $113.0 million for the same quarter of 2016, mainly due to decreases in e-commerce service revenue and listing service revenue as a result of restrictions placed by local governments.

 

Revenues from e-commerce services were $38.1 million, a decrease of 56% from $86.1 million for the same quarter of 2016, primarily due to decreases in both the number of discount coupons redeemed and in the average price per discount coupon.

 

Revenues from online advertising services were $25.8 million, an increase of 18% from $21.8 million for the same quarter of 2016, primarily due to an increase in property developers’ online advertising demand as a result of new products launched.

 

Revenues from listing services were $4.4 million, a decrease of 14% from $5.1 million for the same quarter of 2016, primarily due to a decrease in secondary home sales.

 


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.

 



 

Cost of revenues was $14.1 million, an increase of 4% from $13.6 million for the same quarter of 2016, primarily due to increased cost of advertising resources purchased from SINA, partially offset by decreased staffing cost of the editorial department as a result of headcount change.

 

Selling, general and administrative expenses were $100.5 million, a decrease of 11% from $113.3 million for the same quarter of 2016, primarily due to decreased marketing expenses related to the Company’s e-commerce business.

 

Loss from operations was $46.3 million, compared to $13.8 million for the same quarter of 2016. Non-GAAP loss from operations was $41.8 million, compared to $7.4 million for the same quarter of 2016.

 

Net loss was $28.6 million, compared to $11.1 million for the same quarter of 2016. Non-GAAP net loss was $24.7 million, compared to $5.4 million for the same quarter of 2016.

 

Net loss attributable to Leju shareholders was $28.2 million, or $0.21 loss per diluted ADS, compared to $11.0 million, or $0.08 loss per diluted ADS, for the same quarter of 2016. Non-GAAP net loss attributable to Leju shareholders was $24.2 million, or $0.18 loss per diluted ADS, compared to $5.3 million, or $0.04 loss per diluted ADS, for the same quarter of 2016.

 

Cash Flow

 

As of March 31, 2017, the Company’s cash and cash equivalents balance was $219.8 million.

 

First quarter 2017 net cash used in operating activities was $55.7 million, mainly attributable to non-GAAP net loss of $24.7 million, a decrease in accrued payable and welfare expenses of $8.4 million and a decrease in income tax payable and other tax payable of $26.3 million, partially offset by a decrease in customer deposit of $5.1 million.

 

Business Outlook

 

The Company estimates that its total revenues for the second quarter of 2017 will be approximately $75 million to $80 million, which would represent a decrease of approximately 49% to 53% from $158.3 million in the same quarter in 2016. This forecast reflects the Company’s current and preliminary view, which is subject to change.

 

Management Changes

 

Leju announced that Min Chen has tendered her resignation from the position of the Company’s Chief Financial Officer (“CFO”), effective June 13, 2017, to pursue other career opportunities. Meanwhile, the Company announced that it has appointed Li-Lan Cheng as acting CFO and Michelle Yuan as deputy CFO, effective the same date.

 

“Min has made important contributions to Leju since she joined the Company in 2014,” said Xin Zhou, Leju’s Executive Chairman. “We thank her for her leadership and dedication to the Company and wish her all the best in her future endeavors. Both Li-Lan and Michelle have been with Leju’s principal shareholder E-House for many years and are very familiar with Leju’s business. I am confident that they will immediately contribute to Leju’s management and help lead the Company in its next phase of development.”

 

Ms. Chen said, “I have been privileged to have worked with Leju’s strong management and operating teams for the past few years and to have witnessed the Company’s growth into the leading integrated marketing platform in the real estate services industry. I’m confident that the Company will be able to further leverage its innovative and execution strengths to generate long-term growth in the coming years.”

 



 

Conference Call Information

 

Leju’s management will host an earnings conference call on June 14, 2017 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 June 21, 2017:

 

U.S./International:

+1-866-846-0868

Hong Kong:

+ 800-966-697

Mainland China:

+ 400-184-2240

Passcode: 3260000

 

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

 

About Leju

 

Leju Holdings Limited (“Leju”) (NYSE: LEJU) is a leading online-to-offline, or O2O, real estate services provider in China, offering real estate e-commerce, online advertising and online listing services. Leju’s integrated online platform comprises various mobile applications along with local websites covering more than 370 cities, enhanced by complementary offline services to facilitate residential property transactions. In addition to the Company’s own websites, Leju operates the real estate and home furnishing websites of SINA Corporation, and maintains a strategic partnership with Tencent Holdings Limited. For more information about Leju, please visit http://ir.leju.com.

 

Safe Harbor: Forward-Looking Statements

 

This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995.  These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “target,” “going forward,” “outlook” and similar statements. Leju may also make written or oral forward-looking statements in its reports filed or furnished with the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Leju’s beliefs and expectations, are forward-looking statements that involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained, either expressly or impliedly, in any of the forward-looking statements. Such factors include, but are not limited to, fluctuations in China’s real estate market; the highly regulated nature of, and government measures affecting, the real estate and internet industries in China; Leju’s ability to compete successfully against current and future competitors; its ability to continue to develop and expand its content, service offerings and features, and to develop or incorporate the technologies that support them; its limited operating history and lack of experience as a stand-alone public company, given its carve-out from E-House (China) Holdings Limited (“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 principal shareholding 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. Annie Huang

Leju Holdings Limited

Phone: +86 (10) 5895-1062

E-mail: ir@leju.com

 

Philip Lisio

Foote Group

Phone: +86 135-0116-6560

E-mail: phil@thefootegroup.com

 



 

LEJU HOLDINGS LIMITED

UNAUDITED CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars)

 

 

 

December 31,

 

March 31,

 

 

 

2016

 

2017

 

ASSETS

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

 

274,338

 

219,830

 

Accounts receivable, net

 

71,390

 

69,989

 

Marketable securities

 

2,181

 

2,087

 

Prepaid expenses and other current assets

 

12,756

 

14,553

 

Customer deposits

 

39,702

 

34,517

 

Amounts due from related parties

 

6,019

 

8,000

 

Total current assets

 

406,386

 

348,976

 

Property and equipment, net

 

7,923

 

7,430

 

Intangible assets, net

 

78,374

 

75,320

 

Investment in affiliates

 

409

 

336

 

Goodwill

 

39,018

 

39,081

 

Deferred tax assets

 

41,698

 

41,926

 

Other non-current assets

 

2,059

 

2,062

 

Total assets

 

575,867

 

515,131

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable

 

1,574

 

1,301

 

Accrued payroll and welfare expenses

 

41,728

 

33,415

 

Income tax payable

 

66,148

 

43,316

 

Other tax payable

 

16,678

 

13,398

 

Amounts due to related parties

 

1,581

 

4,506

 

Advance from customers and deferred revenue

 

5,058

 

5,292

 

Accrued marketing and advertising expenses

 

9,355

 

5,384

 

Other current liabilities

 

8,516

 

9,167

 

Total current liabilities

 

150,638

 

115,779

 

Deferred tax liabilities

 

18,869

 

18,972

 

Total liabilities

 

169,507

 

134,751

 

Equity

 

 

 

 

 

Ordinary shares ($0.001 par value): 1,000,000,000 shares authorized, 135,503,958 and 135,763,962 shares issued and outstanding, as of December 31, 2016 and March 31, 2017, respectively

 

136

 

136

 

Additional paid-in capital

 

785,019

 

786,433

 

Accumulated deficit

 

(354,365

)

(382,538

)

Accumulated other comprehensive income

 

(22,321

)

(21,072

)

Total Leju equity

 

408,469

 

382,959

 

Non-controlling interests

 

(2,109

)

(2,579

)

Total equity

 

406,360

 

380,380

 

TOTAL LIABILITIES AND EQUITY

 

575,867

 

515,131

 

 



 

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,

 

 

 

2016

 

2017

 

Revenues

 

 

 

 

 

E-commerce

 

86,088

 

38,091

 

Online advertising

 

21,781

 

25,793

 

Listing

 

5,119

 

4,424

 

Total revenues

 

112,988

 

68,308

 

Cost of revenues

 

(13,597

)

(14,130

)

Selling, general and administrative expenses

 

(113,312

)

(100,521

)

Other operating income

 

102

 

71

 

Loss from operations

 

(13,819

)

(46,272

)

Interest income

 

222

 

283

 

Other income (loss), net

 

(15

)

128

 

Investment loss

 

(193

)

 

Loss before taxes and equity in affiliates

 

(13,805

)

(45,861

)

Income tax benefit

 

2,804

 

17,293

 

Loss before equity in affiliates

 

(11,001

)

(28,568

)

Loss from equity in affiliates

 

(60

)

(76

)

Net Loss

 

(11,061

)

(28,644

)

Less: net loss attributable to non-controlling interests

 

(97

)

(471

)

Loss attributable to Leju shareholders

 

(10,964

)

(28,173

)

 

 

 

 

 

 

Loss per share:

 

 

 

 

 

Basic

 

(0.08

)

(0.21

)

Diluted

 

(0.08

)

(0.21

)

Shares used in computation:

 

 

 

 

 

Basic

 

134,976,346

 

135,541,514

 

Diluted

 

134,976,346

 

135,541,514

 

 

Note 1            The conversion of Renminbi (“RMB”) amounts into USD amounts is based on the rate of USD1 = RMB6.8993 on March 31, 2017 and USD1 = RMB6.8925 for the three months ended March 31, 2017

 



 

LEJU HOLDINGS LIMITED

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(In thousands of U.S. dollars)

 

 

 

Three months ended

 

 

 

March 31,

 

 

 

2016

 

2017

 

 

 

 

 

 

 

Net loss

 

(11,061

)

(28,644

)

Other comprehensive income, net of tax of nil Foreign currency translation adjustment

 

790

 

1,243

 

 

 

 

 

 

 

Comprehensive loss

 

(10,271

)

(27,401

)

 

 

 

 

 

 

Less: Comprehensive loss attributable to non-controlling interest

 

(98

)

(478

)

 

 

 

 

 

 

Comprehensive loss attributable to Leju shareholders

 

(10,173

)

(26,923

)

 



 

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,

 

 

 

2016

 

2017

 

 

 

 

 

 

 

GAAP loss from operations

 

(13,819

)

(46,272

)

Share-based compensation expense

 

3,363

 

1,422

 

Amortization of intangible assets resulting from business acquisitions

 

3,084

 

3,031

 

Non-GAAP loss from operations

 

(7,372

)

(41,819

)

 

 

 

 

 

 

GAAP net loss

 

(11,061

)

(28,644

)

Share-based compensation expense (net of tax)

 

3,363

 

1,422

 

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

 

2,313

 

2,570

 

Non-GAAP net loss

 

(5,385

)

(24,652

)

 

 

 

 

 

 

Net loss attributable to Leju shareholders

 

(10,964

)

(28,173

)

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

 

3,355

 

1,414

 

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

 

2,313

 

2,570

 

Non-GAAP net loss attributable to Leju shareholders

 

(5,296

)

(24,189

)

 

 

 

 

 

 

GAAP net loss per ADS — basic

 

(0.08

)

(0.21

)

 

 

 

 

 

 

GAAP net loss per ADS — diluted

 

(0.08

)

(0.21

)

 

 

 

 

 

 

Non-GAAP net loss per ADS — basic

 

(0.04

)

(0.18

)

 

 

 

 

 

 

Non-GAAP net loss per ADS — diluted

 

(0.04

)

(0.18

)

 

 

 

 

 

 

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

 

134,976,346

 

135,541,514

 

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

 

134,976,346

 

135,541,514

 

 



 

LEJU HOLDINGS LIMITED

 

SELECTED OPERATING DATA

 

 

 

Three months ended

 

 

 

March 31,

 

 

 

2016

 

2017

 

Operating data for e-commerce services

 

 

 

 

 

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

 

59,302

 

43,449

 

Number of discount coupons redeemed (number of transactions)

 

34,243

 

18,987