UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

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

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of May 2019

 


 

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/ Li-Lan Cheng

 

Name

:

Li-Lan Cheng

 

Title

:

Chief Financial Officer

 

 

 

 

Date:  May 29, 2019

 

 

 

 

[Signature Page to 6-K]

 

2


 

Exhibit Index

 

Exhibit 99.1 — Press Release

 

3


Exhibit 99.1

 

Leju Reports First Quarter 2019 Results

 

BEIJING, May  28, 2019 — 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, 2019.

 

First Quarter 2019 Financial Highlights

 

·                      Total revenues increased by 35% year-on-year to $110.4 million.

 

·                      Revenues from e-commerce services increased by 44% year-on-year to $76.8 million.

·                      Revenues from online advertising services increased by 22% year-on-year to $33.2 million.

 

·                      Loss from operations was $19.1 million, a decrease of 39% from $31.5 million for the same quarter of 2018.

 

·                      Non-GAAP1 loss from operations was $15.3 million, a decrease of 43% from $27.1 million for the same quarter of 2018.

 

·                      Net loss attributable to Leju Holdings Limited shareholders was $13.5 million, or $0.10 loss per diluted American depositary share (“ADS”), a decrease of 35% from $20.9 million, or $0.15 loss per diluted ADS, for the same quarter of 2018.

 

·                      Non-GAAP net loss attributable to Leju Holdings Limited shareholders was $10.6 million, or $0.08 loss per diluted ADS, a decrease of 39% from $17.3 million, or $0.13 loss per diluted ADS, for the same quarter of 2018.

 

“We’re pleased to announce that Leju delivered strong top line growth in our online advertising and e-commerce businesses in the first quarter,” said Mr. Geoffrey He, Leju’s Chief Executive Officer. “The substantial market recovery we have seen so far in 2019 has driven increased developer demand for marketing services. We further solidified our leading position in e-commerce business by increasing the number of our projects significantly in the first quarter, which is a result of our top-down approach strategy and quick response to market changes. Our ‘New Media’ strategy further enhanced Leju’s media influence and laid a solid foundation for sustainable growth in our online advertising business. In addition, we continued to improve operational efficiency and streamline our cost structure following our return to profitability last year. Going forward, we will continue to focus on market expansion, product innovation, and organizational optimization, as we strive to improve profitability.”

 

First Quarter 2019 Results

 

Total revenues were $110.4 million, an increase of 35% from $81.5 million for the same quarter of 2018, mainly due to an increase in revenues from e-commerce services and online advertising services.

 

Revenues from e-commerce services were $76.8 million, an increase of 44% from $53.5 million for the same quarter of 2018, primarily due to an increase in both the number of discount coupons redeemed and in the average price per discount coupon.

 

Revenues from online advertising services were $33.2 million, an increase of 22% from $27.1 million for the same quarter of 2018, primarily due to an increase in property developers’ demand for online advertising.

 


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, amortization of intangible assets resulting from business acquisitions, and income tax impact on the share-based compensation expense and amortization of intangible assets resulting from business combinations. 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.

 


 

Revenues from listing services were $0.4 million, a decrease of 56% from $0.9 million for the same quarter of 2018, primarily due to a decrease in secondary real estate brokers’ demand.

 

Cost of revenues was $23.5 million, an increase of 26% from $18.7 million for the same quarter of 2018, primarily due to increased cost of advertising resources purchased from media platforms.

 

Selling, general and administrative expenses were $106.0 million, an increase of 11% from $95.2 million for the same quarter of 2018, primarily due to increased marketing expenses related to the Company’s e-commerce business.

 

Loss from operations was $19.1 million, a decrease of 39% from $31.5 million for the same quarter of 2018. Non-GAAP loss from operations was $15.3 million, a decrease of 43% from $27.1 million for the same quarter of 2018.

 

Net loss was $13.6 million, a decrease of 36% from $21.3 million for the same quarter of 2018. Non-GAAP net loss was $10.6 million, a decrease of 40% from $17.7 million for the same quarter of 2018.

 

Net loss attributable to Leju Holdings Limited shareholders was $13.5 million, or $0.10 loss per diluted ADS, a decrease of 35% from $20.9 million, or $0.15 loss per diluted ADS, for the same quarter of 2018. Non-GAAP net loss attributable to Leju Holdings Limited shareholders was $10.6 million, or $0.08 loss per diluted ADS, a decrease of 39% from $17.3 million, or $0.13 loss per diluted ADS, for the same quarter of 2018.

 

Cash Flow

 

As of March 31, 2019, the Company’s cash and cash equivalents balance was $137.9 million.

 

First quarter 2019 net cash used in operating activities was $11.7 million, primarily comprised of non-GAAP net loss of $10.6 million and an increase in accounts receivable and contract assets of $10.3 million, partially offset by an increase in amounts due to related parties of $5.2 million, an increase in advance from customer of $2.5 million and a decrease in customer deposits of $1.4 million.

 

Business Outlook

 

The Company estimates that its total revenues for the second quarter of 2019 will be approximately $150 million to $160 million, which would represent an increase of approximately 22% to 30% from $122.7 million in the same quarter in 2018. This forecast reflects the Company’s current and preliminary view, which is subject to change.

 

Conference Call Information

 

Leju’s management will host an earnings conference call on May 28, 2019 at 7 a.m. U.S. Eastern Time (7 p.m. Beijing/Hong Kong time).

 

Dial-in details for the earnings conference call are as follows:

 

U.S./International:

+1-845-675-0437

Hong Kong:

+852-3018-6771

Mainland China:

400-620-8038

 

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 5, 2019:

 

U.S./International:

+1-855-452-5696

Hong Kong:

800-963-117

Mainland China:

400-632-2162

Passcode:

5549295

 

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 and prior reliance on E-House for various corporate services; its reliance on SINA 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 status as a principal shareholder of 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, amortization of intangible assets resulting from business acquisitions, and income tax impact on the share-based compensation expense and amortization of intangible assets resulting from business combinations. 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. Christina Wu

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 CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars)

 

 

 

December 31,

 

March 31,

 

 

 

2018

 

2019

 

ASSETS

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

 

147,263

 

137,899

 

Accounts receivable, net

 

102,697

 

111,654

 

Contract assets

 

2,137

 

733

 

Marketable securities

 

2,467

 

3,213

 

Prepaid expenses and other current assets

 

8,621

 

8,654

 

Customer deposits

 

10,672

 

9,262

 

Amounts due from related parties

 

6,695

 

5,257

 

Total current assets

 

280,552

 

276,672

 

Property and equipment, net

 

14,058

 

15,528

 

Intangible assets, net

 

57,401

 

54,221

 

Right-of-use assets2

 

 

35,894

 

Investment in affiliates

 

63

 

52

 

Deferred tax assets

 

62,356

 

63,557

 

Other non-current assets

 

2,297

 

1,246

 

Total assets

 

416,727

 

447,170

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable

 

803

 

2,138

 

Accrued payroll and welfare expenses

 

30,628

 

28,718

 

Income tax payable

 

58,030

 

54,656

 

Other tax payable

 

12,675

 

13,734

 

Amounts due to related parties

 

3,477

 

8,726

 

Advances from customers

 

26,873

 

29,386

 

Lease liabilities, current2

 

 

7,924

 

Accrued marketing and advertising expenses

 

14,896

 

14,053

 

Other current liabilities

 

12,999

 

12,897

 

Total current liabilities

 

160,381

 

172,232

 

Lease liabilities, non-current2

 

 

27,950

 

Deferred tax liabilities

 

14,780

 

15,065

 

Total liabilities

 

175,161

 

215,247

 

 

 

 

 

 

 

Shareholders’ Equity

 

 

 

 

 

Ordinary shares ($0.001 par value): 1,000,000,000 shares authorized, 135,763,962 and 135,763,962 shares issued and outstanding, as of December 31, 2018 and March 31,2019, respectively

 

136

 

136

 

Additional paid-in capital

 

792,626

 

793,202

 

Accumulated deficit

 

(528,825

)

(542,316

)

Accumulated other comprehensive loss

 

(19,848

)

(16,481

)

Total Leju Holdings Limited shareholders’ equity

 

244,089

 

234,541

 

Non-controlling interests

 

(2,523

)

(2,618

)

Total equity

 

241,566

 

231,923

 

TOTAL LIABILITIES AND EQUITY

 

416,727

 

447,170

 

 


2  In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right-of-use asset and lease liability on their balance sheet for all leases with a term of more than 12 months. The Group adopted this ASU on January 1, 2019 using the modified retrospective approach and the financial statements for the comparative period has not been restated.

 


 

LEJU HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

 

 

 

Three months ended

 

 

 

March 31,

 

 

 

2018

 

2019

 

Revenues

 

 

 

 

 

E-commerce

 

53,470

 

76,849

 

Online advertising

 

27,130

 

33,179

 

Listing

 

923

 

405

 

Total revenues

 

81,523

 

110,433

 

Cost of revenues

 

(18,675

)

(23,538

)

Selling, general and administrative expenses

 

(95,178

)

(105,977

)

Other operating income

 

830

 

22

 

Loss from operations

 

(31,500

)

(19,060

)

Interest income

 

287

 

383

 

Other income, net

 

2,837

 

597

 

Loss before taxes and loss from equity in affiliates

 

(28,376

)

(18,080

)

Income tax benefit

 

7,117

 

4,539

 

Loss before loss from equity in affiliates

 

(21,259

)

(13,541

)

Loss from equity in affiliates

 

(19

)

(12

)

Net Loss

 

(21,278

)

(13,553

)

Less: net loss attributable to non-controlling interests

 

(416

)

(62

)

Loss attributable to Leju Holdings Limited shareholders

 

(20,862

)

(13,491

)

 

 

 

 

 

 

Loss per share:

 

 

 

 

 

Basic/Diluted

 

(0.15

)

(0.10

)

Shares used in computation of loss per share:

 

 

 

 

 

Basic/Diluted

 

135,763,962

 

135,763,962

 

 

The conversion of Renminbi (“RMB”) amounts into reporting currency USD amounts is based on the rate of USD1 = RMB6.7335 on March 31, 2019 and USD1 = RMB6.7977 for the three months ended March 31, 2019

 


 

LEJU HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS

(In thousands of U.S. dollars)

 

 

 

Three months ended

 

 

 

March 31,

 

 

 

2018

 

2019

 

 

 

 

 

 

 

Net loss

 

(21,278

)

(13,553

)

Other comprehensive income, net of tax of nil

 

 

 

 

 

Foreign currency translation adjustment

 

2,209

 

3,334

 

 

 

 

 

 

 

Comprehensive loss

 

(19,069

)

(10,219

)

 

 

 

 

 

 

Less: Comprehensive loss attributable to non-controlling interest

 

(518

)

(95

)

 

 

 

 

 

 

Comprehensive loss attributable to Leju Holdings Limited shareholders

 

(18,551

)

(10,124

)

 


 

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,

 

 

 

2018

 

2019

 

 

 

 

 

 

 

GAAP loss from operations

 

(31,500

)

(19,060

)

Share-based compensation expense

 

979

 

575

 

Amortization of intangible assets resulting from business acquisitions

 

3,450

 

3,153

 

Non-GAAP loss from operations

 

(27,071

)

(15,332

)

 

 

 

 

 

 

GAAP net loss

 

(21,278

)

(13,553

)

Share-based compensation expense

 

979

 

575

 

Amortization of intangible assets resulting from business acquisitions

 

3,450

 

3,153

 

Income tax benefit:

 

 

 

 

 

Current

 

 

 

Deferred3

 

(817

)

(788

)

Non-GAAP net loss

 

(17,666

)

(10,613

)

 

 

 

 

 

 

Net loss attributable to Leju Holdings Limited shareholders

 

(20,862

)

(13,491

)

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

 

971

 

575

 

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

 

3,450

 

3,153

 

Income tax benefit:

 

 

 

 

 

Current

 

 

 

Deferred

 

(817

)

(788

)

Non-GAAP net loss attributable to Leju Holdings Limited shareholders

 

(17,258

)

(10,551

)

 

 

 

 

 

 

GAAP net loss per ADS — basic/diluted

 

(0.15

)

(0.10

)

 

 

 

 

 

 

Non-GAAP net loss per ADS — basic/diluted

 

(0.13

)

(0.08

)

 

 

 

 

 

 

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

 

135,763,962

 

135,763,962

 

 


3  Amount represents the realization of deferred tax liabilities recognized for the temporary difference between the tax basis of intangible assets recognized from acquisitions and their reported amounts in the financial statements. The income tax impact on the share-based compensation expense is nil.

 


 

LEJU HOLDINGS LIMITED

SELECTED OPERATING DATA

 

 

 

Three months ended

 

 

 

March 31,

 

 

 

2018

 

2019

 

Operating data for e-commerce services

 

 

 

 

 

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

 

19,678

 

29,549

 

Number of discount coupons redeemed (number of transactions)

 

13,799

 

19,559