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 November 2014
Commission File Number: 001-36396
LEJU HOLDINGS LIMITED
15/F Floor, Shoudong International Plaza, No. 5 Building, Guangqu Home
Dongcheng District, Beijing 100022
Peoples 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.
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Leju Holdings Limited | ||||
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By |
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/s/ Min Chen |
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Name: |
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Min Chen |
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Title: |
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Chief Financial Officer |
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Date: November 20, 2014 |
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Exhibit 99.1
Leju Reports Third Quarter 2014 Results
BEIJING, November 19, 2014 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 September 30, 2014.
Third Quarter 2014 Financial Highlights
· Total revenues increased by 32% year-on-year to $128.3 million
· Revenues from e-commerce services increased by 63% year-on-year to $84.2 million
· Revenues from online advertising services increased by 4% year-on-year to $41.8 million
· Non-GAAP1 income from operations increased by 28% year-on-year to $37.7 million
· Non-GAAP net income attributable to Leju shareholders increased by 12% year-on-year to $31.3 million or $0.23 per diluted American depositary share (ADS)
First Nine Months 2014 Financial Highlights
· Total revenues increased by 55% year-on-year to $324.2 million
· Revenues from e-commerce services increased by 118% year-on-year to $202.2 million
· Revenues from online advertising services increased by 9% year-on-year to $111.2 million
· Non-GAAP income from operations increased by 75% year-on-year to $70.2 million
· Non-GAAP net income attributable to Leju shareholders increased by 69% year-on-year to $59.4 million, or $0.45 per diluted ADS
We are pleased to deliver strong operating and financial results, especially in our e-commerce services business, despite extended soft market conditions during the third quarter, said Mr. Geoffrey He, Lejus chief executive officer. Leju continued to focus on e-commerce services execution with the help of ongoing product innovations. In addition to further deepening our penetration of the e-commerce market during the third quarter, we were also able to construct an integrated mobile marketing eco-system leveraging all of our mobile resources. We received overwhelming responses from both mobile users and developer clients for our mobile market solutions and believe that the online and mobile resources at our disposal uniquely position Leju to be a leading product innovator in the real estate services area.
The secondary market has experienced significant challenges this year, which has had a negative impact on our listing services revenue, Mr. He continued. However, these market dynamics have afforded us an opportunity to expand our national network for listing services. We remain committed to building an online informational platform featuring authentic secondary housing information, and will continue to work with our partners in the secondary market to promote the long-term development of the industry through further innovations.
We delivered another quarter of strong top line growth as a result of our increasing scale, brand awareness and product innovation, said Ms. Min Chen, Lejus chief financial officer. We also maintained steady profitability and healthy operating cash flow due to our improved operating
1Leju 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 and amortization of intangible assets resulting from business acquisitions. 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.
efficiency and solid execution.
Third Quarter 2014 Results
Total revenues were $128.3 million, an increase of 32% from $97.4 million for the same quarter of 2013, mainly driven by growth of revenues from e-commerce services.
Revenues from e-commerce services were $84.2 million, an increase of 63% from $51.7 million for the same quarter of 2013, primarily due to a 51% increase in discount coupons redeemed,2 as a result of the expansion of the Companys e-commerce business through partnerships with property developers.
Revenues from online advertising services were $41.8 million, an increase of 4% from $40.0 million for the same quarter of 2013, primarily due to revenue growth in both the Companys new home and home furnishing channels.
Revenues from listing services were $2.3 million, a decrease of 60% from $5.7 million for the same quarter of 2013, primarily due to the slowdown in secondary home sales.
Cost of revenues was $12.9 million, a decrease of 20% from $16.1 million for the same quarter of 2013, primarily due to decreased fees paid to third parties for services in connection with the Companys listing business and decreased amortization expenses of intangible assets as the Companys exclusive rights with Baidu were extended to March 2015 at no additional cost and the Companys advertising agency agreement with SINA was extended to March 2024 at no additional cost.
Selling, general and administrative expenses were $84.6 million, an increase of 42% from $59.6 million for the same quarter of 2013, primarily due to increased marketing expenses related to the growth of the Companys e-commerce business, along with increased staff costs and bonuses resulting from increased headcount and improved profit.
Income from operations was $31.5 million in the third quarter of 2014, an increase of 44% from $21.9 million for the same quarter of 2013. Non-GAAP income from operations was $37.7 million, an increase of 28% from $29.5 million for the same quarter of 2013.
Net income was $26.4 million, an increase of 19% from $22.1 million for the same quarter of 2013. Non-GAAP net income was $32.0 million, an increase of 13% from $28.2 million for the same quarter of 2013.
Net income attributable to Leju shareholders was $25.7 million, or $0.19 per diluted ADS, an increase of 17% from $21.9 million, or $0.18 per diluted ADS, for the same quarter of 2013. Non-GAAP net income attributable to Leju shareholders was $31.3 million, or $0.23 per diluted ADS, an increase of 12% from $28.0 million, or $0.23 per diluted ADS, for the same quarter of 2013.
First Nine Months 2014 Results
Total revenues were $324.2 million, an increase of 55% from $209.1 million for the same period of 2013, mainly driven by growth of revenues from e-commerce services.
Revenues from e-commerce services were $202.2 million, an increase of 118% from $92.7 million for the same period of 2013, primarily due to an 88% increase in discount coupons redeemed, as a result of the expansion of the Companys e-commerce business through partnerships with property developers.
Revenues from online advertising services were $111.2 million, an increase of 9% from $102.2
2See Selected Operating Data below for more details on the discount coupons sold and redeemed.
million for the same period of 2013, primarily due to revenue growth in both the Companys new home and home furnishing channels.
Revenues from listing services were $10.8 million, a decrease of 24% from $14.1 million for the same period of 2013, primarily due to the slowdown in secondary home sales.
Cost of revenues was $36.8 million, a decrease of 26% from $49.9 million for the same period of 2013, primarily due to decreased fees paid to third parties for services in connection with the Companys listing business and decreased amortization expenses of intangible assets as the Companys exclusive rights with Baidu were extended to March 2015 at no additional cost and the Companys advertising agency agreement with SINA was extended to March 2024 at no additional cost.
Selling, general and administrative expenses were $237.5 million, an increase of 68% from $141.3 million for the same period of 2013, primarily due to increased marketing expenses related to the growth of the Companys e-commerce business, along with increased staff costs and bonuses resulting from increased headcount and improved profit.
Income from operations was $52.0 million in the first nine months of 2014, an increase of 184% from $18.3 million for the same period of 2013. Non-GAAP income from operations was $70.2 million, an increase of 75% from $40.0 million for the same period of 2013.
Net income was $43.7 million, an increase of 142% from $18.1 million for the same period of 2013. Non-GAAP net income was $59.9 million, an increase of 68% from $35.7 million for the same period of 2013.
Net income attributable to Leju shareholders was $43.3 million, or $0.33 per diluted ADS, an increase of 143% from $17.8 million, or $0.15 per diluted ADS, for the same period of 2013. Non-GAAP net income attributable to Leju shareholders was $59.4 million, or $0.45 per diluted ADS, an increase of 69% from $35.2 million, or $0.29 per diluted ADS, for the same period of 2013.
Cash Flow
As of September 30, 2014, the Companys cash and cash equivalents balance was $263.4 million.
Third quarter 2014 net cash provided by operating activities was $40.2 million, mainly attributable to non-GAAP net income of $32.0 million. Net cash used in investing activities was $1.1 million, mainly comprised of a payment of $1.1 million for property and equipment. Net cash used in financing activities was $4.1 million, and mainly comprised of a payment of $4.1 million to acquire non-controlling interests.
Business Outlook
The Company revises its fiscal year 2014 total revenue guidance to $470 million to $490 million from the previous range of $500 million to $520 million, primarily as a result of the lower-than-expected listing services revenue. The revised revenue guidance represents an increase of approximately 40% to 46% from $335.4 million in 2013. This forecast reflects the Companys current and preliminary view, which is subject to change.
Conference Call Information
Lejus management will host an earnings conference call on November 19, 2014 at 7 a.m. U.S. Eastern Time (8 p.m. Beijing/Hong Kong time).
Dial-in details for the earnings conference call are as follows:
U.S./International: |
+1-631-514-2526 |
Hong Kong: |
+852-5808-3202 |
Mainland China: |
+86-10-4001-200-539 |
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 November 26, 2014:
International: |
+1-866-846-0868 |
Passcode: |
9551989 |
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. Lejus integrated online platform comprises various mobile applications along with local websites covering more than 250 cities, enhanced by complementary offline services to facilitate residential property transactions. In addition to the Companys own websites, Leju operates the real estate and home furnishing websites of leading internet companies such as SINA Corporation and Baidu Inc., 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 Lejus 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 Chinas real estate market; the highly regulated nature of, and government measures affecting, the real estate and internet industries in China; Lejus 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 recent carve-out from E-House and prior reliance on E-House for various corporate services; its reliance on SINA, Baidu 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-Houses controlling interest in 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 Companys 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 Lejus 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 and amortization of intangible assets resulting from business acquisitions. 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 Lejus operating performance. These non-GAAP financial measures also facilitate managements internal comparisons to Lejus 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 Lejus 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:
In China:
Ms. Melody Liu
Leju Holdings Limited
Phone: +86 (10) 5895-1062
E-mail: ir@leju.com
Mr. Derek Mitchell
Ogilvy Financial, Beijing
Phone: +86 (10) 8520-6139
E-mail: leju@ogilvy.com
In the United States:
Mr. Justin Knapp
Ogilvy Financial, U.S.
Phone: +1 (616) 551-9714
E-mail: leju@ogilvy.com
LEJU HOLDINGS LIMITED
UNAUDITED CONSOLIDATED BALANCE SHEET
(In thousands of U.S. dollars)
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December 31, |
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September 30, |
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2013 |
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2014 |
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ASSETS |
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Current assets |
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Cash and cash equivalents |
|
98,730 |
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263,434 |
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Accounts receivable, net |
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87,316 |
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122,264 |
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Deferred tax assets, net |
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27,714 |
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27,464 |
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Prepaid expenses and other current assets |
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5,556 |
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10,165 |
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Amounts due from related parties |
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3,472 |
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1,415 |
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Total current assets |
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222,788 |
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424,742 |
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Property and equipment, net |
|
7,028 |
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7,273 |
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Intangible assets, net |
|
128,530 |
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110,787 |
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Investment in affiliates |
|
251 |
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90 |
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Goodwill |
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40,611 |
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40,492 |
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Other non-current assets |
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3,730 |
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5,866 |
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Total assets |
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402,938 |
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589,250 |
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LIABILITIES AND EQUITY |
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Current liabilities |
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|
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Accounts payable |
|
1,423 |
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137 |
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Accrued payroll and welfare expenses |
|
30,504 |
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38,909 |
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Income tax payable |
|
41,437 |
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49,929 |
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Other tax payable |
|
18,514 |
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24,978 |
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Amounts due to related parties |
|
4,501 |
|
4,871 |
|
Advance from customers and deferred revenue |
|
7,163 |
|
6,053 |
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Liability for exclusive rights, current |
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8,968 |
|
3,251 |
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Other current liabilities |
|
11,074 |
|
42,705 |
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Total current liabilities |
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123,584 |
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170,833 |
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Deferred tax liabilities |
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27,564 |
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27,559 |
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Other non-current liability |
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|
|
5,903 |
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Total liabilities |
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151,148 |
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204,295 |
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Equity |
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|
|
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|
Ordinary shares ($0.001 par value): 500,000,000 shares authorized, 120,000,000 and 133,529,420 shares issued and outstanding, as of December 31, 2013 and September 30, 2014, respectively |
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120 |
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134 |
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Additional paid-in capital |
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686,378 |
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780,535 |
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Accumulated deficit |
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(443,294 |
) |
(400,825 |
) |
Subscription receivables |
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(120 |
) |
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Accumulated other comprehensive income |
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5,622 |
|
4,818 |
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Total Leju equity |
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248,706 |
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384,662 |
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Non-controlling interests |
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3,084 |
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293 |
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Total equity |
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251,790 |
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384,955 |
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TOTAL LIABILITIES AND EQUITY |
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402,938 |
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589,250 |
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LEJU HOLDINGS LIMITED
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands of U.S. dollars, except share data and per share data)
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Three months ended |
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Nine months ended |
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September 30, |
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September 30, |
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2013 |
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2014 |
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2013 |
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2014 |
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Revenues |
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E-commerce |
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51,664 |
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84,159 |
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92,719 |
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202,191 |
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Online advertising services |
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40,003 |
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41,802 |
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102,223 |
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111,218 |
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Listing services |
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5,727 |
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2,313 |
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14,128 |
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10,769 |
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Total revenues |
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97,394 |
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128,274 |
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209,070 |
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324,178 |
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Cost of revenues |
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(16,147 |
) |
(12,929 |
) |
(49,889 |
) |
(36,791 |
) |
Selling, general and administrative expenses |
|
(59,574 |
) |
(84,562 |
) |
(141,299 |
) |
(237,514 |
) |
Other operating income |
|
273 |
|
761 |
|
414 |
|
2,139 |
|
Income from operations |
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21,946 |
|
31,544 |
|
18,296 |
|
52,012 |
|
Interest income |
|
365 |
|
377 |
|
799 |
|
806 |
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Other income (expenses), net |
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(235 |
) |
(20 |
) |
(1,036 |
) |
43 |
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Income before taxes and equity in affiliates |
|
22,076 |
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31,901 |
|
18,059 |
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52,861 |
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Income tax benefit (expense) |
|
30 |
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(5,502 |
) |
25 |
|
(8,960 |
) |
Income before equity in affiliates |
|
22,106 |
|
26,399 |
|
18,084 |
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43,901 |
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Loss from equity in affiliates |
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(13 |
) |
(46 |
) |
(13 |
) |
(160 |
) |
Net income |
|
22,093 |
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26,353 |
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18,071 |
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43,741 |
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Less: net income attributable to non-controlling interests |
|
173 |
|
670 |
|
269 |
|
445 |
|
Net income attributable to Leju shareholders |
|
21,920 |
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25,683 |
|
17,802 |
|
43,296 |
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Earnings per share: |
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Basic |
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0.18 |
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0.19 |
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0.15 |
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0.34 |
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Diluted |
|
0.18 |
|
0.19 |
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0.15 |
|
0.33 |
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Shares used in computation: |
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Basic |
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120,000,000 |
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133,529,420 |
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120,000,000 |
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127,885,374 |
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Diluted |
|
120,000,000 |
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137,596,250 |
|
120,000,000 |
|
130,834,223 |
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Note 1 |
The conversion of Renminbi (RMB) amounts into USD amounts is based on the rate of USD1 = RMB6.1525 on September 30, 2014 and USD1 = RMB6.1594 for the three months ended September 30, 2014 |
LEJU HOLDINGS LIMITED
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(In thousands of U.S. dollars)
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Three months ended |
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Nine months ended |
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September 30, |
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September 30, |
| ||||
|
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2013 |
|
2014 |
|
2013 |
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
22,093 |
|
26,353 |
|
18,071 |
|
43,741 |
|
Other comprehensive income (loss), net of tax of nil |
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment |
|
588 |
|
(187 |
) |
2,182 |
|
(841 |
) |
|
|
|
|
|
|
|
|
|
|
Comprehensive income |
|
22,681 |
|
26,166 |
|
20,253 |
|
42,900 |
|
|
|
|
|
|
|
|
|
|
|
Less: Comprehensive income attributable to non-controlling interest |
|
195 |
|
747 |
|
352 |
|
412 |
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income attributable to Leju shareholders |
|
22,486 |
|
25,419 |
|
19,901 |
|
42,488 |
|
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 |
|
Nine months ended |
| ||||
|
|
September 30, |
|
September 30, |
| ||||
|
|
2013 |
|
2014 |
|
2013 |
|
2014 |
|
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
GAAP income from operations |
|
21,946 |
|
31,544 |
|
18,296 |
|
52,012 |
|
Share-based compensation expense |
|
2,027 |
|
2,844 |
|
5,237 |
|
6,882 |
|
Amortization of intangible assets resulting from business acquisitions |
|
5,501 |
|
3,273 |
|
16,508 |
|
11,294 |
|
Non-GAAP income from operations |
|
29,474 |
|
37,661 |
|
40,041 |
|
70,188 |
|
|
|
|
|
|
|
|
|
|
|
GAAP net income |
|
22,093 |
|
26,353 |
|
18,071 |
|
43,741 |
|
Share-based compensation expense (net of tax) |
|
2,027 |
|
2,844 |
|
5,237 |
|
6,882 |
|
Amortization of intangible assets resulting from business acquisitions (net of tax) |
|
4,127 |
|
2,763 |
|
12,381 |
|
9,313 |
|
Non-GAAP net income |
|
28,247 |
|
31,960 |
|
35,689 |
|
59,936 |
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Leju shareholders |
|
21,920 |
|
25,683 |
|
17,802 |
|
43,296 |
|
Share-based compensation expense (net of tax and non-controlling interests) |
|
2,027 |
|
2,844 |
|
5,237 |
|
6,882 |
|
Amortization of intangible assets resulting from business acquisitions (net of tax and non-controlling interests) |
|
4,056 |
|
2,734 |
|
12,168 |
|
9,198 |
|
Non-GAAP net income attributable to Leju shareholders |
|
28,003 |
|
31,261 |
|
35,207 |
|
59,376 |
|
|
|
|
|
|
|
|
|
|
|
GAAP earnings per ADS basic |
|
0.18 |
|
0.19 |
|
0.15 |
|
0.34 |
|
|
|
|
|
|
|
|
|
|
|
GAAP earnings per ADS diluted |
|
0.18 |
|
0.19 |
|
0.15 |
|
0.33 |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings per ADS basic |
|
0.23 |
|
0.23 |
|
0.29 |
|
0.46 |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP earnings per ADS diluted |
|
0.23 |
|
0.23 |
|
0.29 |
|
0.45 |
|
|
|
|
|
|
|
|
|
|
|
Shares used in calculating basic GAAP / non-GAAP net income attributable to shareholders per ADS |
|
120,000,000 |
|
133,529,420 |
|
120,000,000 |
|
127,885,374 |
|
|
|
|
|
|
|
|
|
|
|
Shares used in calculating diluted GAAP / non-GAAP net income attributable to shareholders per ADS |
|
120,000,000 |
|
137,596,250 |
|
120,000,000 |
|
130,834,223 |
|
LEJU HOLDINGS LIMITED
SELECTED OPERATING DATA
|
|
Three months ended |
|
Nine months ended |
| ||||
|
|
September 30, |
|
September 30, |
| ||||
|
|
2013 |
|
2014 |
|
2013 |
|
2014 |
|
|
|
|
|
|
|
|
|
|
|
Operating data for e-commerce services |
|
|
|
|
|
|
|
|
|
Number of discount coupons issued to prospective purchasers (number of transactions) |
|
75,082 |
|
85,843 |
|
138,481 |
|
223,807 |
|
Number of discount coupons redeemed (number of transactions) |
|
39,654 |
|
59,811 |
|
76,422 |
|
143,407 |
|