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 2020

 


 

Commission File Number: 001-36396

 


 

LEJU HOLDINGS LIMITED

 

Level G, Building G, No.8 Dongfeng South Road,

Chaoyang District, Beijing 100016

The 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

:

Acting Chief Financial Officer

 

 

Date: August 21, 2020

 

[Signature Page to 6-K]

 

2


 

Exhibit Index

 

Exhibit 99.1 — Press Release

 

3


Exhibit 99.1

 

Leju Reports First Half Year 2020 Results

 

BEIJING, August 20, 2020 — 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 six months ended June 30, 2020.

 

First Half 2020 Financial Highlights

 

·                      Total revenues were $279.7 million, relatively flat compared to $280.4 million for the same period of 2019.

 

·                      Revenues from e-commerce services decreased by 2% year-on-year to $205.4 million.

 

·                      Revenues from online advertising services increased by 5% year-on-year to $73.9 million.

 

·                      Income from operations was $1.2 million, compared to a loss from operations of $7.1 million for the same period of 2019.

 

·                      Non-GAAP(1) income from operations was $8.3 million, compared to $0.4 million for the same period of 2019.

 

·                      Net income attributable to Leju Holdings Limited shareholders was $1.5 million, or $0.01 per diluted American depositary share (“ADS”), compared to a net loss attributable to Leju Holdings Limited shareholders of $4.1 million, or $0.03 loss per diluted ADS, for the same period of 2019.

 

·                      Non-GAAP net income attributable to Leju Holdings Limited shareholders was $7.2 million, or $0.05 per diluted ADS, an increase of 306% from $1.8 million, or $0.01 per diluted ADS, for the same period of 2019.

 

“Against the background of the Covid-19 pandemic, Leju delivered solid results for the first half of 2020 with steady revenue and increased profit,” said Mr. Geoffrey He, Leju’s Chief Executive Officer. “Due to the impact of the pandemic, we have seen strong interest in Leju’s innovative offerings as real estate developers increasingly value and utilize online marketing services amidst the challenging market environment. In addition, we recently announced an exclusive strategic cooperation with Suning, which will further strengthen the development of an online closed-loop transaction model through the combination of vertical platforms and professional e-commerce platforms. Meanwhile, we recently announced a strategic cooperation between E-House (China) Enterprise Holdings Limited, Alibaba Group Holding Limited and Leju to build an online real estate marketing and transaction platform. Leju will become the service provider for digital marketing and operation on the platform, which will greatly enhance the company’s core value and expand its business scale in the future.

 

“Looking to the second half of this year, through our in-depth cooperation with Alibaba and Suning, Leju will further improve our platform, continuously expand our market reach and product innovation, and provide leading online integrated marketing solutions for the property industry. We will also further optimize our operations and management and improve operational efficiency to ensure the healthy and sustainable development of the company.”

 


(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.

 

1


 

First Half 2020 Results

 

Total revenues were $279.7 million, relatively flat compared to $280.4 million for the same period of 2019. Total revenues demonstrated in RMB were RMB1,973.7 million, an increase of 4% from RMB1,906.9 million for the same period of 2019.

 

Revenues from e-commerce services were $205.4 million, a slight decrease of 2% from $209.2 million for the same period of 2019, mainly due to devaluation of the RMB. Revenues from e-commerce services demonstrated in RMB were RMB1,449.7 million, an increase of 2% from RMB1,422.8 million for the same period of 2019, primarily due to an increase  in the number of discount coupons redeemed, partially offset by a decrease in the average price per discount coupon redeemed.

 

Revenues from online advertising services were $73.9 million, an increase of 5% from $70.3 million for the same period of 2019, primarily due to an increase in property developers’ demand for online advertising.

 

Revenues from listing services were $0.3 million, a decrease of 60% from $0.9 million for the same period of 2019, primarily due to a decrease in secondary real estate brokers’ demand.

 

Cost of revenues was $41.1 million, a decrease of 2% from $41.8 million for the same period of 2019, primarily due to decreased editorial personnel related costs, partially offset by increased cost of advertising resources purchased from media platforms.

 

Selling, general and administrative expenses were $237.7 million, a decrease of 3% from $246.0 million for the same period of 2019, primarily due to decreased expenses related to the Company’s e-commerce business.

 

Income from operations was $1.2 million, compared to loss from operations of $7.1 million for the same period of 2019. Non-GAAP income from operations was $8.3 million, compared to $0.4 million for the same period of 2019.

 

Net income was $1.9 million, compared to net loss of $3.9 million for the same period of 2019. Non-GAAP net income was $7.6 million, an increase of 284% from $2.0 million for the same period of 2019.

 

Net income attributable to Leju Holdings Limited shareholders was $1.5 million, or $0.01 per diluted ADS, compared to net loss attributable to Leju Holdings Limited shareholders of $4.1 million, or $0.03 loss per diluted ADS, for the same period of 2019. Non-GAAP net income attributable to Leju Holdings Limited shareholders was $7.2 million, or $0.05 per diluted ADS, an increase of 306% from $1.8 million, or $0.01 per diluted ADS, for the same period of 2019.

 

Cash Flow

 

As of June 30, 2020, the Company’s cash and cash equivalents and restricted cash balance was $258.2 million.

 

First half 2020 net cash provided by operating activities was $101.1 million, primarily comprised of non-GAAP net income of $7.6 million, an increase in advance from customer of $70.7 million, an increase in amounts due to related parties of $49.7 million and a decrease in customer deposits of $31.1million, partially offset by an increase in accounts receivable and contract assets of $47.0 million and a decrease in other payables of $23.7 million.

 

Business Outlook

 

The Company estimates that its total revenues for the second half of 2020 will be approximately $480 million to $500 million, which would represent an increase of approximately 16% to 21% from $412.2 million in the same period of 2019. This forecast reflects the Company’s current and preliminary view, which is subject to change.

 

2


 

Board of Directors Changes

 

The Company also announced that Mr. Martin Chi Ping Lau has resigned as a director of the Company’s Board of Directors (the “Board”). The Board has appointed Ms. Juhong Chen as the new director to replace Mr. Lau, effective August 18, 2020.

 

Ms. Juhong Chen currently serves as a Vice President of Tencent. She joined Tencent in 2006 as the editor-in-chief of QQ.com and general manager of its integrated information departments. In 2014, Ms. Chen was promoted to Vice President of Tencent responsible for QQ.com, Tencent News, Tencent Sports and other businesses. Ms. Chen holds a Bachelor’s degree of Arts from Wuhan University with a major in journalism.

 

“We would like to express our sincere gratitude to Mr. Martin Chi Ping Lau for his dedication and valuable contributions over the past few years,” said Mr. Xin Zhou, Leju’s Executive Chairman. “We also look forward to working with Ms. Juhong Chen. We believe she is a great addition to our board of directors, and we are confident that Leju will benefit from her experience and contributions. “

 

Conference Call Information

 

Leju’s management will host an earnings conference call on August 20, 2020 at 7 a.m. U.S. Eastern Time (7 p.m. Beijing/Hong Kong time).

 

Please register in advance of the conference using the link provided below and dial in 10 minutes prior to the call, using participant dial-in numbers, Direct Event passcode and unique registrant ID which would be provided upon registering. You will be automatically linked to the live call after completion of this process, unless required to provide the conference ID below due to regional restrictions.

 

PRE-REGISTER LINK: http://apac.directeventreg.com/registration/event/6956248

 

CONFERENCE ID: 6956248

 

A replay of the conference call may be accessed by phone at the following number until August 28, 2020:

 

U.S./International:

 

+1-855-452-5696

Hong Kong:

 

800-963-117

Mainland China:   

 

400-632-2162

Passcode:

 

6956248

 

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 e-commerce and online media platform for real estate and home furnishing industries 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 380 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.

 

3


 

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

 

4


 

LEJU HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars)

 

 

 

December 31,

 

June 30,

 

 

 

2019

 

2020

 

ASSETS

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

 

159,012

 

254,175

 

Restricted cash

 

 

3,997

 

Accounts receivable, net

 

147,638

 

190,416

 

Contract assets

 

830

 

1,659

 

Marketable securities

 

3,438

 

3,504

 

Prepaid expenses and other current assets

 

5,436

 

5,177

 

Customer deposits

 

57,174

 

26,075

 

Amounts due from related parties

 

9,673

 

1,400

 

Total current assets

 

383,201

 

486,403

 

Property and equipment, net

 

18,108

 

16,241

 

Intangible assets, net

 

45,581

 

39,619

 

Right-of-use assets

 

26,776

 

25,721

 

Investment in affiliates

 

53

 

30

 

Deferred tax assets

 

49,311

 

48,591

 

Other non-current assets

 

1,450

 

1,385

 

Total assets

 

524,480

 

617,990

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable

 

1,523

 

5,472

 

Accrued payroll and welfare expenses

 

32,787

 

26,498

 

Income tax payable

 

56,691

 

56,520

 

Other tax payable

 

20,056

 

20,759

 

Amounts due to related parties

 

4,407

 

54,100

 

Advances from customers

 

34,246

 

104,896

 

Lease liabilities, current

 

5,189

 

5,521

 

Accrued marketing and advertising expenses

 

49,830

 

35,544

 

Other current liabilities

 

32,784

 

23,298

 

Total current liabilities

 

237,513

 

332,608

 

Lease liabilities, non-current

 

22,866

 

21,491

 

Deferred tax liabilities

 

11,742

 

11,570

 

Total liabilities

 

272,121

 

365,669

 

Shareholders’ Equity

 

 

 

 

 

Ordinary shares ($0.001 par value): 1,000,000,000 shares authorized, 135,812,719 and 135,973,615 shares issued and outstanding, as of December 31, 2019 and June 30, 2020, respectively

 

136

 

136

 

Additional paid-in capital

 

796,192

 

797,294

 

Accumulated deficit

 

(517,303

)

(515,811

)

Subscription receivables

 

 

(20

)

Accumulated other comprehensive loss

 

(23,624

)

(26,934

)

Total Leju Holdings Limited shareholders’ equity

 

255,401

 

254,665

 

Non-controlling interests

 

(3,042

)

(2,344

)

Total equity

 

252,359

 

252,321

 

TOTAL LIABILITIES AND EQUITY

 

524,480

 

617,990

 

 

5


 

LEJU HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

 

 

 

Six months ended

 

 

 

June 30,

 

 

 

2019

 

2020

 

Revenues

 

 

 

 

 

E-commerce

 

209,214

 

205,448

 

Online advertising

 

70,332

 

73,929

 

Listing

 

852

 

339

 

Total net revenues

 

280,398

 

279,716

 

Cost of revenues

 

(41,831

)

(41,138

)

Selling, general and administrative expenses

 

(246,017

)

(237,670

)

Other operating income, net

 

368

 

245

 

Income (loss) from operations

 

(7,082

)

1,153

 

Interest income, net

 

585

 

699

 

Other income, net

 

1,293

 

713

 

Income (loss) before taxes and loss from equity in affiliates

 

(5,204

)

2,565

 

Income tax benefits/(expenses)

 

1,307

 

(618

)

Income (loss) before loss from equity in affiliates

 

(3,897

)

1,947

 

Loss from equity in affiliates

 

(26

)

(22

)

Net income (loss)

 

(3,923

)

1,925

 

Less: net income attributable to non-controlling interests

 

216

 

433

 

Income (loss) attributable to Leju Holdings Limited shareholders

 

(4,139

)

1,492

 

 

 

 

 

 

 

Earnings (loss) per ADS:

 

 

 

 

 

Basic

 

(0.03

)

0.01

 

Diluted

 

(0.03

)

0.01

 

Shares used in computation of earnings (loss) per ADS:

 

 

 

 

 

Basic

 

135,763,962

 

135,891,617

 

Diluted

 

135,763,962

 

136,039,569

 

 

The conversion of Renminbi (“RMB”) amounts into reporting currency USD amounts is based on the rate of USD1 = RMB7.0795 on June 30, 2020 and USD1 = RMB7.0562 for the six months ended June 30, 2020

 

6


 

LEJU HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS

(In thousands of U.S. dollars)

 

 

 

Six months ended

 

 

 

June 30,

 

 

 

2019

 

2020

 

 

 

 

 

 

 

Net income (loss)

 

(3,923

)

1,925

 

Other comprehensive loss, net of tax of nil

 

 

 

 

 

Foreign currency translation adjustment

 

(471

)

(3,279

)

 

 

 

 

 

 

Comprehensive loss

 

(4,394

)

(1,354

)

 

 

 

 

 

 

Less: Comprehensive income attributable to non-controlling interest

 

216

 

464

 

 

 

 

 

 

 

Comprehensive loss attributable to Leju Holdings Limited shareholders

 

(4,610

)

(1,818

)

 

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)

 

 

 

Six months ended

 

 

 

June 30,

 

 

 

2019

 

2020

 

 

 

 

 

 

 

GAAP income (loss) from operations

 

(7,082

)

1,153

 

Share-based compensation expense

 

1,171

 

1,236

 

Amortization of intangible assets resulting from business acquisitions

 

6,306

 

5,901

 

Non-GAAP income from operations

 

395

 

8,290

 

 

 

 

 

 

 

GAAP net income (loss)

 

(3,923

)

1,925

 

Share-based compensation expense

 

1,171

 

1,236

 

Amortization of intangible assets resulting from business acquisitions

 

6,306

 

5,901

 

Income tax benefit:

 

 

 

 

 

Current

 

 

 

Deferred(2)

 

(1,576

)

(1,476

)

Non-GAAP net income

 

1,978

 

7,586

 

 

 

 

 

 

 

Net income (loss) attributable to Leju Holdings Limited shareholders

 

(4,139

)

1,492

 

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

 

1,171

 

1,236

 

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

 

6,306

 

5,901

 

Income tax benefit:

 

 

 

 

 

Current

 

 

 

Deferred

 

(1,576

)

(1,476

)

Non-GAAP net income attributable to Leju Holdings Limited shareholders

 

1,762

 

7,153

 

 

 

 

 

 

 

GAAP net income (loss) per ADS — basic

 

(0.03

)

0.01

 

 

 

 

 

 

 

GAAP net income (loss) per ADS — diluted

 

(0.03

)

0.01

 

 

 

 

 

 

 

Non-GAAP net income per ADS — basic

 

0.01

 

0.05

 

 

 

 

 

 

 

Non-GAAP net income per ADS — diluted

 

0.01

 

0.05

 

 

 

 

 

 

 

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

 

135,763,962

 

135,891,617

 

 

 

 

 

 

 

Shares used in calculating diluted GAAP net income (loss) attributable to Leju Holdings Limited shareholders per ADS

 

135,763,962

 

136,039,569

 

 

 

 

 

 

 

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

 

135,766,869

 

136,039,569

 

 


(2) 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.

 

8


 

LEJU HOLDINGS LIMITED

SELECTED OPERATING DATA

 

 

 

Six months ended

 

 

 

June 30,

 

 

 

2019

 

2020

 

Operating data for e-commerce services

 

 

 

 

 

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

 

94,369

 

94,215

 

Number of discount coupons redeemed (number of transactions)

 

55,794

 

67,268

 

 

9