BEIJING, Nov. 30,
2022 /PRNewswire/ -- 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,
2022.
First Half 2022 Financial Highlights
- Total revenues decreased by 44% year on year to $169.4 million.
- Revenues from e-commerce services decreased by 43% year on year
to $132.7 million.
- Revenues from online advertising services decreased by 47% year
on year to $36.8 million.
- Loss from operations was $64.8
million, compared to loss from operations of $49.9 million for the same period of 2021.
- Non-GAAP[1] loss from operations was
$58.6 million, compared to Non-GAAP
loss from operations of $43.4 million
for the same period of 2021.
- Net loss attributable to Leju Holdings Limited shareholders was
$52.9 million, or $3.86 loss per diluted American depositary share
("ADS"), compared to net loss attributable to Leju Holdings Limited
shareholders of $47.8 million, or
$3.50 loss per diluted
ADS[2], for the same period of 2021.
- Non-GAAP net loss attributable to Leju Holdings Limited
shareholders was $48.0 million, or
$3.50 loss per diluted ADS, compared
to non-GAAP net loss attributable to Leju Holdings Limited
shareholders of $42.6 million, or
$3.12 loss per diluted ADS, for the
same period of 2021.
|
[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.
|
|
[2] On
May 10, 2022, Leju announced that it would change its American
depositary share ("ADS") to ordinary share ("Share") ratio from one
(1) ADS representing one (1) Share to one (1) ADS representing ten
(10) Shares. The change in the ADS ratio was effective on May 20,
2022. For Leju's ADS holders, the change in the ADS ratio had the
same effect as a one-for-ten reverse ADS split. The ADS ratio
change has no impact on Leju's underlying Shares. Loss per ADS for
first half of 2021 had been retrospectively adjusted
accordingly.
|
"In the first half of 2022, China's real estate developers experienced
significant operational challenges which combined with the impact
of the COVID-19 pandemic resurgence caused a decline in both real
estate development and sales, largely impacting Leju's online
advertising and e-commerce businesses," said Mr. Geoffrey He, Leju's Chief Executive Officer.
First Half 2022 Results
Total revenues were $169.4 million, a decrease of 44% from
$301.1 million for the same period of
2021. China's real estate industry
experienced a steep downturn since the second half of 2021 and many
real estate developers faced severe operational challenges. This
had a direct and negative impact on the Company's online
advertising and e-commerce businesses. Due to the continuous
decline of the real estate industry, the recoverable amount and
time of some customers' transaction consideration cannot be
reasonably expected. Since January 1,
2022, Leju has not recognized the revenue from such
customers until the actual receipt of the transaction
consideration.
Revenues from e-commerce services were
$132.7 million, a decrease of 43%
from $231.4 million for the same
period of 2021, primarily due to a decrease in the number of
discount coupons redeemed, partially offset by an increase in the
average price per discount coupon redeemed.
Revenues from online advertising services were
$36.8 million, a decrease of 47% from
$69.3 million for the same period of
2021, primarily due to a decrease in property developers' demand
for online advertising.
Cost of revenues was $14.5 million, a decrease of 54% from
$31.7 million for the same period of
2021, primarily due to decreased cost of advertising resources
purchased from media platforms, and decreased editorial personnel
related costs.
Selling, general and administrative
expenses were $219.8
million, a decrease of 31% from $319.5 million for the same period of 2021,
primarily due to bad debt provision which decreased $33.9 million compared to the same period of
2021, and decreased marketing expenses related to the Company's
e-commerce business. The bad debt provision recorded in the first
half of 2021 was mainly attributable to the recognition of
additional loss allowance on expected credit loss of the Company's
outstanding online advertising related receivables from certain
customer, whose credit quality had worsened.
Loss from operations was $64.8 million, compared to loss from operation of
$49.9 million for the same period of
2021. Non-GAAP loss from operations was
$58.6 million, compared to non-GAAP
loss from operations of $43.4 million
for the same period of 2021.
Net loss was $52.8
million, compared to net loss of $46.9 million for the same period of 2021.
Non-GAAP net loss was $47.9
million, compared to non-GAAP net loss of $41.7 million for the same period of 2021.
Net loss attributable to Leju Holdings Limited
shareholders was $52.9
million, or $3.86 loss per
diluted ADS, compared to net loss attributable to Leju
Holdings Limited shareholders of $47.8
million, or $3.5 loss per
diluted ADS, for the same period of 2021. Non-GAAP net loss
attributable to Leju Holdings Limited shareholders was
$48.0 million, or $3.50 loss per diluted ADS, compared
to non-GAAP net loss attributable to Leju Holdings Limited
shareholders of $42.6 million, or
$3.12 loss per diluted ADS, for the
same period of 2021.
Cash Flow
As of June 30, 2022, the Company's
cash and cash equivalents and restricted cash balance
was $182.6 million.
First half 2022 net cash used in operating
activities was $60.6 million,
primarily comprised of non-GAAP net loss of $47.9 million, a decrease in other current
liabilities and accrued expenses of $37.7
million, a decrease in income tax payable of $10.8 million, partially offset by a decrease in
accounts receivable and contract assets of $19.5 million and a decrease in prepaid expenses
and other current assets of $18.5
million.
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
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; 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
The 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,
|
|
June
30,
|
|
|
|
2021
|
|
2022
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
250,314
|
|
|
|
178,202
|
|
|
|
Restricted
cash
|
|
|
|
2,082
|
|
|
|
4,349
|
|
|
|
Accounts receivable,
net
|
|
|
|
36,071
|
|
|
|
5,318
|
|
|
|
Contract assets,
net
|
|
|
|
1,415
|
|
|
|
—
|
|
|
|
Marketable
securities
|
|
|
|
1,186
|
|
|
|
—
|
|
|
|
Prepaid expenses and
other current assets
|
|
|
|
25,110
|
|
|
|
7,283
|
|
|
|
Customer
deposits
|
|
|
|
784
|
|
|
|
—
|
|
|
|
Amounts due from
related parties
|
|
|
|
3,913
|
|
|
|
10,116
|
|
|
|
Total current
assets
|
|
|
|
320,875
|
|
|
|
205,268
|
|
|
|
Property and equipment,
net
|
|
|
|
16,667
|
|
|
|
15,324
|
|
|
|
Intangible assets,
net
|
|
|
|
23,298
|
|
|
|
17,803
|
|
|
|
Right-of-use
assets
|
|
|
|
23,409
|
|
|
|
19,822
|
|
|
|
Investment in
affiliates
|
|
|
|
18
|
|
|
|
17
|
|
|
|
Deferred tax assets,
net
|
|
|
|
51,605
|
|
|
|
49,024
|
|
|
|
Other non-current
assets
|
|
|
|
1,376
|
|
|
|
1,712
|
|
|
|
Total
assets
|
|
|
|
437,248
|
|
|
|
308,970
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
|
|
784
|
|
|
|
1,490
|
|
|
|
Accounts
payable
|
|
|
|
1,631
|
|
|
|
1,181
|
|
|
|
Accrued payroll and
welfare expenses
|
|
|
|
21,517
|
|
|
|
15,438
|
|
|
|
Income tax
payable
|
|
|
|
60,952
|
|
|
|
49,440
|
|
|
|
Other tax
payable
|
|
|
|
18,046
|
|
|
|
13,693
|
|
|
|
Amounts due to related
parties
|
|
|
|
7,632
|
|
|
|
3,635
|
|
|
|
Advances from
customers
|
|
|
|
82,788
|
|
|
|
55,905
|
|
|
|
Lease liabilities,
current
|
|
|
|
5,582
|
|
|
|
4,923
|
|
|
|
Accrued marketing and
advertising expenses
|
|
|
|
43,272
|
|
|
|
31,825
|
|
|
|
Other current
liabilities
|
|
|
|
18,504
|
|
|
|
16,477
|
|
|
|
Total current
liabilities
|
|
|
|
260,708
|
|
|
|
194,007
|
|
|
|
Lease liabilities,
non-current
|
|
|
|
19,438
|
|
|
|
16,414
|
|
|
|
Deferred tax
liabilities
|
|
|
|
6,043
|
|
|
|
4,707
|
|
|
|
Total
liabilities
|
|
|
|
286,189
|
|
|
|
215,128
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary shares ($0.001
par value): 1,000,000,000 shares
authorized, 136,822,601 and 137,172,601 shares issued
and
outstanding, as of December 31, 2021 and June 30,
2022,
respectively
|
|
|
|
137
|
|
|
|
137
|
|
|
|
Additional paid-in
capital
|
|
|
|
801,477
|
|
|
|
802,406
|
|
|
|
Accumulated
deficit
|
|
|
|
(648,935)
|
|
|
|
(701,787)
|
|
|
|
Accumulated other
comprehensive loss
|
|
|
|
(1,424)
|
|
|
|
(6,726)
|
|
|
|
Total Leju Holdings
Limited shareholders' equity
|
|
|
|
151,255
|
|
|
|
94,030
|
|
|
|
Non-controlling
interests
|
|
|
|
(196)
|
|
|
|
(188)
|
|
|
|
Total
equity
|
|
|
|
151,059
|
|
|
|
93,842
|
|
|
|
TOTAL LIABILITIES
AND EQUITY
|
|
|
|
437,248
|
|
|
|
308,970
|
|
|
|
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,
|
|
|
|
2021
|
|
2022
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
E-commerce
|
|
|
|
231,401
|
|
|
|
132,654
|
|
|
Online
advertising
|
|
|
|
69,290
|
|
|
|
36,783
|
|
|
Listing
|
|
|
|
401
|
|
|
|
11
|
|
|
Total net
revenues
|
|
|
|
301,092
|
|
|
|
169,448
|
|
|
Cost of
revenues
|
|
|
|
(31,671)
|
|
|
|
(14,474)
|
|
|
Selling, general and
administrative expenses
|
|
|
|
(319,472)
|
|
|
|
(219,762)
|
|
|
Other operating income,
net
|
|
|
|
199
|
|
|
|
25
|
|
|
Loss from
operations
|
|
|
|
(49,852)
|
|
|
|
(64,763)
|
|
|
Interest income,
net
|
|
|
|
1,575
|
|
|
|
1,515
|
|
|
Other income,
net
|
|
|
|
2,128
|
|
|
|
801
|
|
|
Loss before taxes
and loss from equity
in
affiliates
|
|
|
|
(46,149)
|
|
|
|
(62,447)
|
|
|
Income tax benefits
(expenses)
|
|
|
|
(730)
|
|
|
|
9,642
|
|
|
Loss before loss
from equity in affiliates
|
|
|
|
(46,879)
|
|
|
|
(52,805)
|
|
|
Loss from equity in
affiliates
|
|
|
|
(8)
|
|
|
|
—
|
|
|
Net
loss
|
|
|
|
(46,887)
|
|
|
|
(52,805)
|
|
|
Less: net income
attributable to non-controlling interests
|
|
|
|
885
|
|
|
|
47
|
|
|
Net loss
attributable to Leju Holdings
Limited
shareholders
|
|
|
|
(47,772)
|
|
|
|
(52,852)
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per
ADS:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
(3.50)
|
|
|
|
(3.86)
|
|
|
Diluted
|
|
|
|
(3.50)
|
|
|
|
(3.86)
|
|
|
ADS used in computation
of loss per ADS:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
13,648,534
|
|
|
|
13,691,216
|
|
|
Diluted
|
|
|
|
13,648,534
|
|
|
|
13,691,216
|
|
|
|
|
|
|
|
|
|
|
|
|
The conversion of
Renminbi ("RMB") amounts into reporting currency USD amounts is
based on the rate of
USD1 = RMB6.7114 on June 30, 2022 and the average rate of USD1 =
RMB6.4423 for the six months ended
June 30, 2022
|
|
LEJU HOLDINGS
LIMITED
|
|
UNAUDITED CONDENSED CONSOLIDATED
STATEMENT OF COMPREHENSIVE
INCOME (LOSS)
|
|
(In thousands of
U.S. dollars)
|
|
|
|
|
Six months
ended
|
|
|
|
June
30,
|
|
|
|
2021
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
|
|
(46,887)
|
|
|
|
(52,805)
|
|
|
Other comprehensive
income (loss), net of tax of nil
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
|
2,400
|
|
|
|
(5,341)
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss
|
|
|
|
(44,487)
|
|
|
|
(58,146)
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Comprehensive
income attributable to non-controlling
interest
|
|
|
|
892
|
|
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss
attributable to Leju Holdings Limited
shareholders
|
|
|
|
(45,379)
|
|
|
|
(58,154)
|
|
|
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,
|
|
|
|
2021
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
GAAP loss from
operations
|
|
|
|
(49,852)
|
|
|
|
(64,763)
|
|
|
Share-based
compensation expense
|
|
|
|
1,194
|
|
|
|
929
|
|
|
Amortization of
intangible assets resulting from business
acquisitions
|
|
|
|
5,279
|
|
|
|
5,279
|
|
|
Non-GAAP loss from
operations
|
|
|
|
(43,379)
|
|
|
|
(58,555)
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
loss
|
|
|
|
(46,887)
|
|
|
|
(52,805)
|
|
|
Share-based
compensation expense
|
|
|
|
1,194
|
|
|
|
929
|
|
|
Amortization of
intangible assets resulting from business
acquisitions
|
|
|
|
5,279
|
|
|
|
5,279
|
|
|
Income tax
benefit:
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
|
—
|
|
|
|
—
|
|
|
Deferred[3]
|
|
|
|
(1,320)
|
|
|
|
(1,320)
|
|
|
Non-GAAP net
loss
|
|
|
|
(41,734)
|
|
|
|
(47,917)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to Leju Holdings Limited shareholders
|
|
|
|
(47,772)
|
|
|
|
(52,852)
|
|
|
Share-based
compensation expense (net of non-controlling
interests)
|
|
|
|
1,194
|
|
|
|
929
|
|
|
Amortization of
intangible assets resulting from business
acquisitions (net of non-controlling
interests)
|
|
|
|
5,279
|
|
|
|
5,279
|
|
|
Income tax
benefit:
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
|
—
|
|
|
|
—
|
|
|
Deferred
|
|
|
|
(1,320)
|
|
|
|
(1,320)
|
|
|
Non-GAAP net loss
attributable to Leju Holdings Limited
shareholders
|
|
|
|
(42,619)
|
|
|
|
(47,964)
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss per ADS —
basic
|
|
|
|
(3.50)
|
|
|
|
(3.86)
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss per ADS
—diluted
|
|
|
|
(3.50)
|
|
|
|
(3.86)
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss per
ADS —basic
|
|
|
|
(3.12)
|
|
|
|
(3.50)
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss per
ADS —diluted
|
|
|
|
(3.12)
|
|
|
|
(3.50)
|
|
|
|
|
|
|
|
|
|
|
|
|
ADS used in calculating
basic GAAP/non-GAAP net loss
attributable to Leju Holdings Limited shareholders per
ADS
|
|
|
|
13,648,534
|
|
|
|
13,691,216
|
|
|
|
|
|
|
|
|
|
|
|
|
ADS used in calculating
diluted GAAP/non-GAAP net loss
attributable to Leju Holdings Limited shareholders per
ADS
|
|
|
|
13,648,534
|
|
|
|
13,691,216
|
|
|
|
[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
|
|
|
|
|
Six months
ended
|
|
|
June
30,
|
|
|
2021
|
|
2022
|
|
Operating data for
e-commerce services
|
|
|
|
|
|
|
|
|
|
Number of discount
coupons issued to prospective purchasers
(number of transactions)
|
|
|
92,058
|
|
|
|
31,456
|
|
|
Number of discount
coupons redeemed (number of transactions)
|
|
|
77,378
|
|
|
|
35,262
|
|
View original
content:https://www.prnewswire.com/news-releases/leju-reports-first-half-year-2022-results-301690135.html
SOURCE Leju Holdings Limited
