BEIJING, Aug. 31, 2023 /PRNewswire/ -- Leju Holdings Limited ("Leju" or the "Company") (NYSE: LEJU), a leading e-commerce and online media platform for real estate and home furnishing industries in China, today announced its unaudited financial results for the six months ended June 30, 2023.

First Half 2023 Financial Highlights

  • Total revenues decreased by 6% year on year to $158.5 million.
    • Revenues from e-commerce services slightly decreased by 1% year on year to $131.2 million.
    • Revenues from online advertising services decreased by 26% year on year to $27.3 million.
  • Loss from operations was $23.5 million, compared to loss from operations of $64.8 million for the same period of 2022.
  • Non-GAAP[1] loss from operations was $17.3 million, compared to Non-GAAP loss from operations of $58.6 million for the same period of 2022.
  • Net loss attributable to Leju Holdings Limited shareholders was $19.4 million, or $1.42 loss per diluted American depositary share ("ADS"), compared to net loss attributable to Leju Holdings Limited shareholders of $52.9 million, or $3.86 loss per diluted ADS, for the same period of 2022.
  • Non-GAAP net loss attributable to Leju Holdings Limited shareholders was $14.6 million, or $1.06 loss per diluted ADS, compared to non-GAAP net loss attributable to Leju Holdings Limited shareholders of $48.0 million, or $3.50 loss per diluted ADS, for the same period of 2022.

"China's real estate industry remained sluggish during the first half of 2023, seeing a slight first-quarter rebound but then returning to a downward trend during the second quarter. Combined with the ongoing difficulties experienced by China's real estate developers, these factors have created significant challenges for Leju's advertising and e-commerce operations," said Mr. Geoffrey He, Leju's Chief Executive Officer.

"Faced with these unprecedented market difficulties, we have adjusted our product structure and business direction to ensure the stability of our business and have been exploring new business opportunities. Responding to the significant changes in the supply and demand relationship of China's real estate market, starting from the second quarter, local governments in multiple regions across the country have introduced measures to further optimize the real estate regulatory measures. Leju will take this opportunity to further consolidate our foundation and strive for new development opportunities while ensuring healthy operations."

[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.

First Half 2023 Results

Total revenues were $158.5 million, a decrease of 6% from $169.4 million for the same period of 2022 mainly due to devaluation of the RMB. Total revenues demonstrated in RMB were RMB1,124.4 million, an increase of 3% from RMB1,091.6 million for the same period of 2022.

Revenues from e-commerce services were $131.2 million, a slight decrease of 1% from $132.7 million for the same period of 2022, primarily due to devaluation of the RMB. Revenues from e-commerce services denominated in RMB were RMB931.0 million, an increase of 9% from RMB854.6 million for the same period of 2022. The E-commerce revenue of discount coupons decreased to $20.3 million from $132.7 million for the same period of 2022. The E-commerce revenue from the commission coupon business from the real estate developers was $110.9 million for the first half 2023 which commenced from the second half of 2022.

Revenues from online advertising services were $27.3 million, a decrease of 26% from $36.8 million for the same period of 2022. Revenues from online advertising services denominated in RMB were RMB193.4 million, a decrease of 18% from RMB237.0 million for the same period of 2022, primarily due to a decrease in property developers' demand for online advertising.

Cost of revenues was $10.9 million, a decrease of 25% from $14.5 million for the same period of 2022, primarily due to decreased cost of advertising resources purchased from media platforms, and decreased editorial personnel related costs.

Selling, general and administrative expenses were $171.1 million, a decrease of 22% from $219.8 million for the same period of 2022, primarily due to the decreased bad debt provision and marketing expenses.

Loss from operations was $23.5 million, compared to loss from operation of $64.8 million for the same period of 2022. Non-GAAP loss from operations was $17.3 million, compared to non-GAAP loss from operations of $58.6 million for the same period of 2022.

Net loss was $19.5 million, compared to net loss of $52.8 million for the same period of 2022. Non-GAAP net loss was $14.6 million, compared to non-GAAP net loss of $47.9 million for the same period of 2022.

Net loss attributable to Leju Holdings Limited shareholders was $19.4 million, or $1.42 loss per diluted ADS, compared to net loss attributable to Leju Holdings Limited shareholders of $52.9 million, or $3.86 loss per diluted ADS, for the same period of 2022. Non-GAAP net loss attributable to Leju Holdings Limited shareholders was $14.6 million, or $1.06 loss per diluted ADS, compared to non-GAAP net loss attributable to Leju Holdings Limited shareholders of $48.0 million, or $3.50 loss per diluted ADS, for the same period of 2022.

Cash Flow

As of June 30, 2023, the Company's cash and cash equivalents and restricted cash balance was $106.2 million.

First half 2023 net cash used in operating activities was $17.2 million, primarily comprised of non-GAAP net loss of $14.6 million, an increase in amounts due from related parties of $2.2 million, a decrease in amounts due to related parties of $3.4 million, and a decrease in accrued payroll and welfare expenses of $5.3 million, partially offset by an increase in other current liabilities and accrued expenses of $7.7 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

 

 

 

LEJU HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars)










December 31,


June 30,




2022


2023

ASSETS











Current assets











Cash and cash equivalents




123,378




100,689



Restricted cash 




4,271




5,530



Accounts receivable, net 




3,408




2,909



Prepaid expenses and other current assets 




6,111




7,663



Customer deposits




3,860






Amounts due from related parties 




2,476




4,648



Total current assets 




143,504




121,439



Property and equipment, net 




14,204




12,698



Intangible assets, net 




12,458




7,136



Right-of-use assets 




18,943




11,010



Deferred tax assets, net 




25,457




24,537



Other non-current assets 




1,545




1,149



Total assets 




216,111




177,969














LIABILITIES AND EQUITY











Current liabilities











Short-term borrowings




718






Accounts payable




654




325



Accrued payroll and welfare expenses 




12,728




6,917



Income tax payable




25,203




21,729



Other tax payable




9,695




8,321



Amounts due to related parties




4,805




1,441



Advances from customers 




43,100




47,965



Lease liabilities, current 




5,038




2,833



Accrued marketing and advertising expenses 




29,988




34,589



Other current liabilities 




12,265




9,538



Total current liabilities 




144,194




133,658



Lease liabilities, non-current 




15,439




9,188



Deferred tax liabilities 




3,518




2,182



Total liabilities 




163,151




145,028



Shareholders' Equity











Ordinary shares ($0.001 par value): 1,000,000,000 shares
     authorized 137,172,601 and 137,839,249 shares issued and
     outstanding, as of December 31, 2022 and June 30, 2023,
     respectively




137




138



Additional paid-in capital 




803,301




804,235



Accumulated deficit 




(738,602)




(758,038)



Accumulated other comprehensive loss 




(11,601)




(13,046)



Total Leju Holdings Limited shareholders' equity 




53,235




33,289



Non-controlling interests




(275)




(348)



Total equity 




52,960




32,941



TOTAL LIABILITIES AND EQUITY




216,111




177,969
















 

 

 

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,




2022


2023

Revenues










E-commerce




132,654




131,260


Online advertising




36,783




27,272


Listing




11





Total net revenues




169,448




158,532


Cost of revenues




(14,474)




(10,913)


Selling, general and administrative expenses




(219,762)




(171,122)


Other operating income, net




25




5


Loss from operations




(64,763)




(23,498)


Interest income, net




1,515




545


Other income, net




801




23


Loss before taxes and loss from equity

in affiliates




(62,447)




(22,930)


Income tax benefits




9,642




3,439


Loss before loss from equity in affiliates




(52,805)




(19,491)


Loss from equity in affiliates








Net loss




(52,805)




(19,491)


Less: net income attributable to non-controlling interests




47




(56)


Net loss attributable to Leju Holdings

Limited shareholders




(52,852)




(19,435)












Loss per ADS:










Basic




(3.86)




(1.42)


Diluted




(3.86)




(1.42)


ADS used in computation of loss per ADS:










Basic




13,691,216




13,726,961


Diluted




13,691,216




13,726,961






















The conversion of Renminbi ("RMB") amounts into reporting currency USD amounts is based on the rate of
USD1 = RMB7.2258 on June 30, 2023 and USD1 = RMB7.0928 for the six months ended June 30, 2023

 

 

 

LEJU HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)

(In thousands of U.S. dollars)








Six months ended




June 30,




2022


2023











Net loss




(52,805)




(19,491)


Other comprehensive loss, net of tax of nil










Foreign currency translation adjustment




(5,341)




(1,463)












Comprehensive loss




(58,146)




(20,954)












Less: Comprehensive income (loss) attributable to
     non-controlling interest




8




(73)












Comprehensive loss attributable to Leju Holdings Limited shareholders




(58,154)




(20,881)












 

 

 

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,




2022


2023











GAAP loss from operations




(64,763)




(23,498)


Share-based compensation expense




929




895


Amortization of intangible assets resulting from business
     acquisitions




5,279




5,279


Non-GAAP loss from operations




(58,555)




(17,324)












GAAP net loss




(52,805)




(19,491)


Share-based compensation expense




929




895


Amortization of intangible assets resulting from business
     acquisitions




5,279




5,279


Income tax benefit:










   Current








   Deferred[2]




(1,320)




(1,320)


Non-GAAP net loss




(47,917)




(14,637)












Net loss attributable to Leju Holdings Limited shareholders




(52,852)




(19,435)


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




929




895


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




(47,964)




(14,581)












GAAP net loss per ADS — basic




(3.86)




(1.42)












GAAP net loss per ADS —diluted




(3.86)




(1.42)












Non-GAAP net loss per ADS —basic




(3.50)




(1.06)












Non-GAAP net loss per ADS —diluted




(3.50)




(1.06)












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




13,691,216




13,726,961












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




13,691,216




13,726,961












[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.

 

 

 

LEJU HOLDINGS LIMITED

SELECTED OPERATING DATA






Six months ended



June 30,



2022


2023

Operating data for e-commerce services









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



 

31,456




 

12,973


Number of discount coupons redeemed (number of transactions)

 



35,262




12,438


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



 




 

17,010


Number of commission coupons redeemed (number of transactions)

 






17,010


 

Cision View original content:https://www.prnewswire.com/news-releases/leju-reports-first-half-year-2023-results-301914684.html

SOURCE Leju Holdings Limited

Copyright 2023 PR Newswire

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