BEIJING, March 31, 2022 /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 second half and full year ended December 31, 2021.

Second Half 2021 Financial Highlights

  • Total revenues decreased by 47% year on year to $233.0 million.
    - Revenues from e-commerce services decreased by 48% year on year to $179.7 million.
    - Revenues from online advertising services decreased by 45% year on year to $53.2 million.
  • Loss from operations was $116.9 million, compared to income from operations of $23.0 million for the same period of 2020.
  • Non-GAAP[1] loss from operations was $111.2 million, compared to non-GAAP income from operations of $30.0 million for the same period of 2020.
  • Net loss attributable to Leju Holdings Limited shareholders was $103.2 million, or $0.75 loss per diluted American depositary share ("ADS"), compared to net income attributable to Leju Holdings Limited shareholders of $17.8 million, or $0.13 per diluted ADS, for the same period of 2020.
  • Non-GAAP net loss attributable to Leju Holdings Limited shareholders was $98.7 million, or $0.72 loss per diluted ADS, compared to non-GAAP net income attributable to Leju Holdings Limited shareholders of $23.5 million, or $0.17 per diluted ADS, for the same period of 2020.

[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.

Full Year 2021 Financial Highlights

  • Total revenues decreased by 26% year on year to $534.1 million.
    - Revenues from e-commerce services decreased by 25% year on year to $411.1 million.
    - Revenues from online advertising services decreased by 28% year on year to $122.5 million.
  • Loss from operations was $166.7 million, compared to income from operations of $24.1 million for 2020.
  • Non-GAAP loss from operations was $154.5 million, compared to non-GAAP income from operations of $38.3 million for 2020.
  • Net loss attributable to Leju Holdings Limited shareholders was $150.9 million, or $1.10 loss per diluted ADS, compared to net income attributable to Leju Holdings Limited shareholders of $19.3 million, or $0.14 per diluted ADS for 2020.
  • Non-GAAP net loss attributable to Leju Holdings Limited shareholders was $141.4 million, or $1.03 loss per diluted ADS, compared to non-GAAP net income attributable to Leju Holdings Limited shareholders of $30.7 million, or $0.22 per diluted ADS for 2020.

"In the second half of 2021, China's real estate industry experienced a steep downturn, with many developers facing severe operational challenges. This had a direct and negative impact on Leju's online advertising and e-commerce businesses," said Mr. Geoffrey He, Leju's Chief Executive Officer. "As certain real estate developers faced deterioration in their creditworthiness, our bad debt provision also continued to increase substantially in the second half of the year compared to 2020, resulting in further losses."

"Rather than being discouraged by the current market downturn and uncertainties, the Leju team is rising to the challenges. In the second half of 2021, we held a series of successful marketing campaigns on our dual Tmall and Leju platforms including our '916 Promotion', 'Double 11 Festival', 'Smile Angel Celebrity Festival', and 'The 5th China Real Estate New Time Gala' which drove business development and strengthened our influence as an industry media."

"In the second half of 2021, our parent company E-House deepened its strategic cooperation with Alibaba. E-House became the controlling shareholder of Tmall Haofang, and Tmall Haofang became the direct and controlling shareholder of Leju. Capitalizing on this opportunity, in 2022 Leju will accelerate the development and integration of the two platforms, seize the opportunities presented by the digitization of the real estate industry, and actively explore new business models and revenue growth areas while consolidating our online advertising and e-commerce services. Amidst the new market situation, Leju will take a result-oriented approach, reinforce process management and further improve operational efficiency to achieve our goals as set at the beginning of this year."

Second Half 2021 Results

Total revenues were $233.0 million, a decrease of 47% from $439.8 million for the same period of 2020.

Revenues from e-commerce services were $179.7 million, a decrease of 48% from $342.4 million for the same period of 2020, 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 $53.2 million, a decrease of 45% from $96.9 million for the same period of 2020, primarily due to a decrease in property developers' demand for online advertising. 

Revenues from listing services were $0.1 million, a decrease of 81% from $0.5 million for the same period of 2020, primarily due to a decrease in secondary real estate brokers' demand.

Cost of revenues was $24.1 million, a decrease of 26% from $32.6 million for the same period of 2020, primarily due to decreased cost of advertising resources purchased from media platforms.

Selling, general and administrative expenses were $326.2 million, a decrease of 15% from $384.4 million for the same period of 2020, primarily due to decreased marketing expenses related to the Company's e-commerce business, partially offset by increased bad debt provision. The bad debt provision recorded in the second 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 some customers, whose credit quality has worsened.

Loss from operations was $116.9 million, compared to income from operations of $23.0 million for the same period of 2020. Non-GAAP loss from operations was $111.2 million, compared to non-GAAP income from operations of $30.0 million for the same period of 2020.

Net loss was $103.0 million, compared to net income of $19.1 million for the same period of 2020. Non-GAAP net loss was $98.6 million, compared to non-GAAP net income of $24.8 million for the same period of 2020.

Net loss attributable to Leju Holdings Limited shareholders was $103.2 million, or $0.75 loss per diluted ADS, compared to net income attributable to Leju Holdings Limited shareholders of $17.8 million, or $0.13 per diluted ADS, for the same period of 2020. Non-GAAP net loss attributable to Leju Holdings Limited shareholders was $98.7 million, or $0.72 loss per diluted ADS, compared to non-GAAP net income attributable to Leju Holdings Limited shareholders of $23.5 million, or $0.17 per diluted ADS, for the same period of 2020.

Full year 2021 Results

Total revenues were $534.1 million, a decrease of 26% from $719.5 million for 2020.

Revenues from e-commerce services were $411.1 million, a decrease of 25% from $547.9 million for 2020, primarily due to a decrease in the number of discount coupons redeemed.

Revenues from online advertising services were $122.5 million, a decrease of 28% from $170.8 million for 2020, primarily due to a decrease in property developers' demand for online advertising. 

Revenues from listing services were $0.5 million, a decrease of 41% from $0.8 million for 2020, primarily due to a decrease in secondary real estate brokers' demand.

Cost of revenues was $55.8 million, a decrease of 24% from $73.8 million for 2020, primarily due to decreased cost of advertising resources purchased from media platforms.

Selling, general and administrative expenses were $645.6 million, an increase of 4% from $622.0 million for 2020, primarily due to bad debt provision which increased by $106.4 million compared to 2020, partially offset by decreased marketing expenses related to the Company's e-commerce business. The bad debt provision recorded in 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 some customers, whose credit quality has worsened.

Loss from operations was $166.7 million, compared to income from operations of $24.1 million for 2020. Non-GAAP loss from operations was $154.5 million, compared to non-GAAP net income of $38.3 million for 2020.

Net loss was $149.9 million, compared to net income of $21.0 million for 2020. Non-GAAP net loss was $140.3 million, compared to non-GAAP net income of $32.4 million for 2020.

Net loss attributable to Leju Holdings Limited shareholders was $150.9 million, or $1.10 loss per diluted ADS, compared to net income attributable to Leju Holdings Limited shareholders of $19.3 million, or $0.14 per diluted ADS, for 2020. Non-GAAP net loss attributable to Leju Holdings Limited shareholders was $141.4 million, or $1.03 loss per diluted ADS, compared to non-GAAP net income attributable to Leju Holdings Limited shareholders of $30.7 million, or $0.22 per diluted ADS, for 2020.

Cash Flow

As of December 31, 2021, the Company's cash and cash equivalents and restricted cash were $252.4 million.

Second half 2021 net cash used in operating activities was $78.7 million, primarily comprised of non-GAAP net loss of $98.6 million, a decrease in other current liabilities and accrued expenses of $42.0 million, and an increase in deferred tax assets of $9.6 million, partially offset by provision for allowance for doubtful accounts of $59.6 million, and a decrease in accounts receivable of $15.4 million.

Conference Call Information

Leju's management will host an earnings conference call on March 31, 2022 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/2294606

CONFERENCE ID: 2294606

A replay of the conference call may be accessed by phone at the following number until April 8, 2022:

U.S.:

+1-855-452-5696

International:

+61-2-9003-4211

Hong Kong:

+800-963-117

Mainland China:    

800-988-0601

Passcode:

2294606

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 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
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,


December 31,


2020


2021

ASSETS




Current assets




Cash and cash equivalents

284,489


250,314

Restricted cash

1,217


2,082

Accounts receivable, net

202,702


36,071

Contract assets, net

1,884


1,415

Marketable securities

4,304


1,186

Prepaid expenses and other current assets

7,484


25,110

Customer deposits

11,551


784

Amounts due from related parties

9,076


3,913

Total current assets

522,707


320,875

Property and equipment, net

17,002


16,667

Intangible assets, net

34,213


23,298

Right-of-use assets

25,666


23,409

Investment in affiliates

31


18

Deferred tax assets, net

40,905


51,605

Other non-current assets

1,437


1,376

Total assets

641,961


437,248





LIABILITIES AND EQUITY




Current liabilities




Short-term borrowings


784

Accounts payable

2,834


1,631

Accrued payroll and welfare expenses

29,222


21,517

Income tax payable

63,041


60,952

Other tax payable

21,204


18,046

Amounts due to related parties

7,106


7,632

Advances from customers

95,340


82,788

Lease liabilities, current

5,461


5,582

Accrued marketing and advertising expenses

70,086


43,272

Other current liabilities

22,596


18,504

Total current liabilities

316,890


260,708

Lease liabilities, non-current

21,727


19,438

Deferred tax liabilities

8,559


6,043

Total liabilities

347,176


286,189

Shareholders' Equity




Ordinary shares ($0.001 par value): 1,000,000,000 shares
   authorized, 136,326,020 and 136,822,601 shares issued and
   outstanding, as of December 31, 2020 and 2021,
   respectively

136


137

Additional paid-in capital

799,537


801,477

Accumulated deficit

(498,001)


(648,935)

Subscription receivables

(50)


Accumulated other comprehensive loss

(5,695)


(1,424)

Total Leju Holdings Limited shareholders' equity

295,927


151,255

Non-controlling interests

(1,142)


(196)

Total equity

294,785


151,059

TOTAL LIABILITIES AND EQUITY

641,961


437,248


 

 

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


Year ended


December 31,


December 31,


2020


2021


2020


2021









Revenues








E-commerce

342,447


179,696


547,895


411,097

Online advertising

96,854


53,232


170,783


122,522

Listing

509


97


848


498

Total net revenues

439,810


233,025


719,526


534,117

Cost of revenues

(32,624)


(24,130)


(73,762)


(55,801)

Selling, general and administrative expenses

(384,356)


(326,151)


(622,026)


(645,623)

Other operating income, net

136


361


381


560

Income (loss) from operations

22,966


(116,895)


24,119


(166,747)









Interest income, net

6,569


1,555


7,268


3,130

Other income (loss), net

(413)


(1,919)


300


209

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

29,122


(117,259)


31,687


(163,408)

Income tax benefits (expenses)

(10,047)


14,228


(10,665)


13,498

Income (loss) before loss from equity in
affiliates

19,075


(103,031)


21,022


(149,910)









Loss from equity in affiliates, net of tax of nil

(2)


(6)


(24)


(14)

Net income (loss)

19,073


(103,037)


20,998


(149,924)

Less: net income attributable to non-controlling
   interests

1,263


125


1,696


1,010

Net income (loss) attributable to Leju
   Holdings Limited shareholders

17,810


(103,162)


19,302


(150,934)









Earnings (loss) per ADS:








Basic

0.13


(0.75)


0.14


(1.10)

Diluted

0.13


(0.75)


0.14


(1.10)

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








Basic

136,249,954


136,818,984


136,070,785


136,652,162

Diluted

138,342,674


136,818,984


137,564,567


136,652,162


The conversion of functional currency Renminbi ("RMB") amounts into reporting currency USD amounts
is based on the rate of USD1 = RMB6.3757 on December 31, 2021 and USD1 = RMB6.4912 for the year
ended December 31, 2021.

 

 

LEJU HOLDINGS LIMITED 

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)

(In thousands of U.S. dollars)



Six months ended


Year ended


December 31,


December 31,


2020


2021


2020


2021









Net income (loss)

19,073


(103,037)


20,998


(149,924)

Other comprehensive income, net of tax of nil








Foreign currency translation adjustments

21,217


1,882


17,938


4,282


Comprehensive income (loss)

40,290


(101,155)


38,936


(145,642)









Less: Comprehensive income attributable to
   non-controlling interests

1,239


129


1,703


1,021


Comprehensive income (loss) attributable to Leju
Holdings Limited shareholders

39,051


(101,284)


37,233


(146,663)

 

 

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


Year ended


December 31,


December 31,


2020


2021


2020


2021









GAAP income (loss) from operations

22,966


(116,895)


24,119


(166,747)

Share-based compensation expense

1,742


463


2,978


1,657

Amortization of intangible assets resulting from business
   acquisitions

5,279


5,279


11,180


10,558

Non-GAAP income (loss) from operations

29,987


(111,153)


38,277


(154,532)









GAAP net income (loss)

19,073


(103,037)


20,998


(149,924)

Share-based compensation expense

1,742


463


2,978


1,657

Amortization of intangible assets resulting from
  
business acquisitions

5,279


5,279


11,180


10,558

Income tax benefits:








   Current




   Deferred[2]

(1,319)


(1,320)


(2,795)


(2,640)

Non-GAAP net income (loss)

24,775


(98,615)


32,361


(140,349)









Net income (loss) attributable to Leju Holdings Limited
   shareholder

17,810


(103,162)


19,302


(150,934)

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

1,742


463


2,978


1,657

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

5,279


5,279


11,180


10,558

Income tax benefits:








   Current




   Deferred

(1,319)


(1,320)


(2,795)


(2,640)

Non-GAAP net income (loss) attributable to Leju
   Holdings Limited shareholders

 

23,512


(98,740)


30,665


(141,359)









GAAP net income (loss) per ADS — basic

0.13


(0.75)


0.14


(1.10)









GAAP net income (loss) per ADS — diluted

0.13


(0.75)


0.14


(1.10)









Non-GAAP net income (loss) per ADS — basic

0.17


(0.72)


0.23


(1.03)









Non-GAAP net income (loss) per ADS — diluted

0.17


(0.72)


0.22


(1.03)









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

136,249,954


136,818,984


136,070,785


136,652,162









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

138,342,674


136,818,984


137,564,567


136,652,162


[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


Year ended


December 31,


December 31,


2020


2021


2020


2021









Operating data for e-commerce services








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

149,621


70,138


243,836


162,196

Number of discount coupons redeemed (number
   of transactions)

125,448


60,852


192,716


138,230

 

Cision View original content:https://www.prnewswire.com/news-releases/leju-reports-second-half-and-full-year-2021-results-301514639.html

SOURCE Leju Holdings Limited

Copyright 2022 PR Newswire

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