PR Newswire | Mar 26, 2021 05:24AM EDT

03/26 04:23 CDT

Leju Reports Fourth Quarter and Full Year 2020 Results BEIJING, March 26, 2021

BEIJING, March 26, 2021 /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 fiscal quarter and full year ended December 31, 2020.

Fourth Quarter 2020 Financial Highlights

* Total revenues increased by 2% year-on-year to $230.4 million. - Revenues from online advertising services increased by 43% year-on-year to $60.1 million. - Revenues from e-commerce services decreased by 8% year-on-year to $170.1 million. * Income from operations was $10.1 million, an increase of 12% from $9.0 million for the same quarter of 2019. * Non-GAAP income from operations was $13.4 million, a decrease of 4% from $14.0 million for the same quarter of 2019. * Net income attributable to Leju Holdings Limited shareholders was $6.1 million, or $0.04 per diluted American depositary share ("ADS"), an increase of 36% from $4.5 million, or $0.03 per diluted ADS, for the same quarter of 2019. * Non-GAAP[1] net income attributable to Leju Holdings Limited shareholders was $8.8 million, or $0.06 per diluted ADS, compared to $8.7 million, or $0.06 per diluted ADS, for the same quarter of 2019.

Full Year 2020 Financial Highlights

* Total revenues increased by 4% year-on-year to $719.5 million. - Revenues from online advertising services increased by 19% year-on-year to $170.8 million.- Revenues from e-commerce services was $547.9 million, a slight increase from $547.2 million for 2019. * Income from operations was $24.1 million, an increase of 36% from $17.7 million for 2019. * Non-GAAP income from operations was $38.3 million, an increase of 13% from $33.9 million for 2019. * Net income attributable to Leju Holdings Limited shareholders was $19.3 million, or $0.14 per diluted ADS, an increase of 68% from $11.5 million, or $0.08 per diluted ADS for 2019. * Non-GAAP net income attributable to Leju Holdings Limited shareholders was $30.7 million, or $0.22 per diluted ADS, an increase of 25% from $24.6 million, or $0.18 per diluted ADS for 2019.

[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 Lejushareholders per basic ADS, and (5) net income (loss) attributable to Lejushareholders per diluted ADS, each of which excludes share-based compensationexpense, amortization of intangible assets resulting from business acquisitionsand income tax impact on the share-based compensation expense, amortization ofintangible assets resulting from business combinations. See "About Non-GAAPFinancial Measures" and "Unaudited Reconciliation of GAAP and Non-GAAPResults" below for more information about the non-GAAP financial measuresincluded in this press release.

"China's new housing market experienced mild growth in transactions for the full year 2020, as a sharp decline at the beginning of the year due to the Covid-19 epidemic was followed by a substantial recovery later in the year," said Mr. Geoffrey He, Leju's Chief Executive Officer. "As developers increasingly recognized the importance of digital marketing, Leju's online advertising services saw strong growth, while our e-commerce services turned in a steady performance. In the fourth quarter of 2020, Leju held a series of successful online promotions that further enhanced our brand recognition and boosted our media influence. In 2020, we held a total of eight well-received promotional events, kicking off with our 'Online Sales Office' during the Chinese Spring Festival. These activities helped to take our advertising services to the next level, supported steady growth for our e-commerce services, and significantly improved our industry coverage and overall service level."

"In 2021, leveraging our strategic cooperation between Alibaba and E-House, Leju will seize new opportunities in digital marketing, roll out new advertising and e-commerce services, and ramp up our business scale. We will continue to optimize our operations and management, increase our efforts in attracting top talent, improve management and operational efficiency, and increase profit margins to provide a solid foundation for Leju's future growth."

Four Quarter 2020 Results

Total revenues were $230.4 million, an increase of 2% from $226.8 million for the same quarter of 2019, mainly due to an increase in revenues from online advertising services, partially offset by a decrease in revenues from e-commerce services.

Revenues from e-commerce services were $170.1 million, a decrease of 8% from $184.5 million for the same quarter of 2019, primarily due to a decrease in the number of discount coupons redeemed and a decrease in the average price per discount coupons redeemed.

Revenues from online advertising serviceswere $60.1 million, an increase of 43% from $42.0 million for the same quarter of 2019, primarily due to an increase in property developers' demand for online advertising.

Revenues from listing services were $0.2 million, a decrease of 19% from $0.3 million for the same quarter of 2019, primarily due to a decrease in demand from secondary real estate brokers.

Cost of revenues was $17.8 million, an increase of 34% from $13.2 million for the same quarter of 2019, primarily due to increased cost of advertising resources purchased from media platforms related to the Company's online advertising business.

Selling, general and administrative expenses were $202.6 million, a decrease of 1% from $204.2 million for the same quarter of 2019, primarily due to decreased labor cost, partially offset by increased advertising expenses relating to promotion activities for the same period of 2020.

Income from operations was $10.1 million, an increase of 12% from $9.0 million for the same quarter of 2019. Non-GAAP income from operations was $13.4 million, a decrease of 4% from $14.0 million for the same quarter of 2019.

Net incomewas $7.2 million, an increase of 105% from $3.5 million for the same quarter of 2019. Non-GAAP net incomewas $9.9 million, an increase of 28% from $7.7 million for the same quarter of 2019.

Net income attributable to Leju Holdings Limited shareholders was $6.1 million, or $0.04 per diluted ADS, an increase of 36% from $4.5 million, or $0.03 per diluted ADS, for the same quarter of 2019. Non-GAAP net income attributable to Leju Holdings Limited shareholders was $8.8 million, or $0.06 per diluted ADS, compared to $8.7 million, or $0.06 per diluted ADS, for the same quarter of 2019.

Full year 2020 Results

Total revenues were $719.5 million, an increase of 4% from $692.6 million for 2019, mainly due to an increase in revenues from online advertising services.

Revenues from e-commerce services were $547.9 million, a slightly increase from $547.2 million for 2019, primarily due to an increase in the number of discount coupons redeemed, partially offset by a decrease in the average price per discount coupon redeemed.

Revenues from online advertising serviceswere $170.8 million, an increase of 19% from $143.8 million for 2019, primarily due to an increase in property developers' demand for online advertising.

Revenues from listing services were $0.8 million, a decrease of 48% from $1.6 million for 2019, primarily due to a decrease in demand from secondary real estate brokers.

Cost of revenues was $73.8 million, an increase of 8% from $68.3 million for 2019, primarily due to increased cost of advertising resources purchased from media platforms related to the Company's online advertising business.

Selling, general and administrative expenses were $622.0 million, an increase of 2% from $607.2 million for 2019, primarily due to increased advertising expenses relating to promotion activities for 2020, partially offset by decreased labor cost.

Income from operations was $24.1 million, an increase of 36% from $17.7 million for 2019. Non-GAAP income from operations was $38.3 million, an increase of 13% from $33.9 million for 2019.

Net incomewas $21.0 million, an increase of 93% from $10.9 million for 2019. Non-GAAP net incomewas $32.4 million, an increase of 35% from $23.9 million for 2019.

Net income attributable to Leju Holdings Limited shareholders was $19.3 million, or $0.14 per diluted ADS, an increase of 68% from $11.5 million, or $0.08 per diluted ADS for 2019. Non-GAAP net income attributable to Leju Holdings Limited shareholders was $30.7 million, or $0.22 per diluted ADS, an increase of 25% from $24.6 million, or $0.18 per diluted ADS for 2019.

Cash Flow

As of December 31, 2020, the Company's cash and cash equivalents and restricted cash were $285.7 million.

Fourth quarter 2020 net cash provided in operating activities was $11.8 million, primarily comprised of non-GAAP net income of $9.9 million, a decrease in amounts due from related parties of $8.6 million, a decrease in deferred tax assets of $11.1 million, partially offset by a decrease in amounts due to related parties of $16.3 million.

Business Outlook

The Company estimates that its total revenues of 2021 will be approximately $755 million to $790 million, which would represent an increase of approximately 5% to 10% from $719.5 million for 2020. This forecast reflects the Company's current and preliminary view, which is subject to change.

Changes in Board and Committee Composition

The Company also announced that Mr. Zhe Wei has resigned as a director of the Company's Board of Directors (the "Board") and the chairperson of the audit committee. The Board has appointed Mr. Winston Li as the new chairperson of the audit committee to replace Mr. Zhe Wei, appointed Mr. Hongchao Zhu as a member of the nominating and corporate governance committee, and appointed Mr. Jian Sun as a member of the audit committee, effective March 26, 2021. Mr. Jian Sun has concurrently resigned as a member of Leju's nominating and corporate governance committee.

"We would like to express our sincere gratitude to Mr. Zhe Wei for his dedication and valuable contributions over the past few years," said Mr. Xin Zhou, Leju's Executive Chairman. "We also look forward to continuing working with Mr. Winston Li, Mr. Jian Sun and Mr. Hongchao Zhu as members of the board. We are confident that Leju will benefit from their valuable insights and extensive experience."

Conference Call Information

Leju's management will host an earnings conference call on March 26, 2021 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/9117658

CONFERENCE ID: 9117658

A replay of the conference call may be accessed by phone at the following number until April 3, 2021:

U.S./International: +1-855-452-5696

Hong Kong: +800-963-117

Mainland China: 400-632-2162

Passcode: 9117658

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 WuLeju Holdings LimitedPhone: +86 (10) 5895-1062E-mail: ir@leju.com

Philip LisioFoote GroupPhone: +86 135-0116-6560E-mail: phil@thefootegroup.com

LEJU HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars)

December December 31, 31,

2019 2020

ASSETS

Current assets

Cash and cash equivalents 159,012 284,489

Restricted cash - 1,217

Accounts receivable, net 147,638 202,702

Contract assets 830 1,884

Marketable securities 3,438 4,304

Prepaid expenses and other current assets 5,436 7,484

Customer deposits 57,174 11,551

Amounts due from related parties 9,673 9,076

Total current assets 383,201 522,707

Property and equipment, net 18,108 17,002

Intangible assets, net 45,581 34,213

Right-of-use assets 26,776 25,666

Investment in affiliates 53 31

Deferred tax assets 49,311 40,905

Other non-current assets 1,450 1,437

Total assets 524,480 641,961

LIABILITIES AND EQUITY

Current liabilities

Accounts payable 1,523 2,834

Accrued payroll and welfare expenses 32,787 29,222

Income tax payable 56,691 63,041

Other tax payable 20,056 21,204

Amounts due to related parties 4,407 7,106

Advance from customers 34,246 95,340

Lease liabilities, current 5,189 5,461

Accrued marketing and advertising expenses 49,830 70,086

Other current liabilities 32,784 22,596

Total current liabilities 237,513 316,890

Lease liabilities, non-current 22,866 21,727

Deferred tax liabilities 11,742 8,559

Total liabilities 272,121 347,176

Shareholders' Equity

Ordinary shares ($0.001 par value): 1,000,000,000shares authorized, 135,812,719 and 136,326,020 shares 136 136issued and outstanding, as of December 31, 2019 and 2020, respectively

Additional paid-in capital 796,192 799,537

Accumulated deficit (517,303) (498,001)

Subscription receivables - (50)

Accumulated other comprehensive loss (23,624) (5,695)

Total Leju Holdings Limited shareholders' equity 255,401 295,927

Non-controlling interests (3,042) (1,142)

Total equity 252,359 294,785

TOTAL LIABILITIES AND EQUITY 524,480 641,961

LEJU HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

Three months ended Year ended

December 31, December 31,

2019 2020 2019 2020

Revenues

E-commerce 184,542 170,062 547,184 547,895

Online advertising 41,981 60,125 143,779 170,783

Listing 285 230 1,642 848

Total net revenues 226,808 230,417 692,605 719,526

Cost of revenues (13,230) (17,792) (68,298) (73,762)

Selling, general andadministrative (204,171) (202,575) (607,165) (622,026)expenses

Other operating (360) 49 598 381income (loss), net

Income from 9,047 10,099 17,740 24,119operations

Interest income, net 110 4,718 152 7,268

Other income (loss), 877 (1,320) 1,979 300net

Income before taxesand income from 10,034 13,497 19,871 31,687equity in affiliates

Income tax expenses (6,521) (6,284) (8,990) (10,665)

Income before incomefrom equity in 3,513 7,213 10,881 21,022affiliates

Income (loss) fromequity inaffiliates, net of 2 7 (9) (24)tax of nil

Net income 3,515 7,220 10,872 20,998

Less: net income(loss) attributableto (987) 1,102 (650) 1,696 non-controllinginterests

Net incomeattributable to LejuHoldings 4,502 6,118 11,522 19,302 Limitedshareholders

Earnings per share:

Basic 0.03 0.04 0.08 0.14

Diluted 0.03 0.04 0.08 0.14

Shares used incomputation ofearnings per ADS:

Basic 135,790,091 136,308,496 135,770,793 136,070,785

Diluted 135,943,267 138,318,826 135,811,751 137,564,567

The conversion of functional currency Renminbi ("RMB") amounts into reportingcurrency USD amountsis based on the rate of USD1 = RMB6.5249 on December 31, 2020 and USD1 =RMB6.9260 for the yearended December 31, 2020.

LEJU HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)

(In thousands of U.S. dollars)

Three months Year ended ended

December 31, December 31,

2019 2020 2019 2020

Net income 3,515 7,220 10,872 20,998

Other comprehensive income (loss), netof tax of nil

Foreign currency translation adjustments 2,036 12,576 (3,745) 17,898

Comprehensive income 5,551 19,796 7,127 38,896

Less: Comprehensive income (loss)attributable to (996) 1,096 (619) 1,664 non-controlling interests

Comprehensive income attributable toLeju 6,547 18,700 7,746 37,232Holdings Limited shareholders

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 Year ended

December 31, December 31,

2019 2020 2019 2020

GAAP income from operations 9,047 10,099 17,740 24,119

Share-based compensation expense 1,827 696 3,597 2,978

Amortization of intangible assets resulting from business 3,152 2,639 12,611 11,180 acquisitions

Non-GAAP income from operations 14,026 13,434 33,948 38,277

GAAP net income 3,515 7,220 10,872 20,998

Share-based compensation expense 1,827 696 3,597 2,978

Amortization of intangible assets resulting from 3,152 2,639 12,611 11,180 business acquisitions

Income tax benefits:

Current - - - -

Deferred^[2] (789) (659) (3,153) (2,795)

Non-GAAP net income 7,705 9,896 23,927 32,361

Net income attributable to Leju Holdings Limited 4,502 6,118 11,522 19,302 shareholder

Share-based compensation expense 1,827 696 3,597 2,978 (net of non-controlling interests)

Amortization of intangible assets resulting from business 3,152 2,639 12,611 11,180 acquisitions (net of non-controlling interests)

Income tax benefits:

Current - - - -

Deferred (789) (659) (3,153) (2,795)

Non-GAAP net income attributable to Leju Holdings 8,692 8,794 24,577 30,665 Limited shareholders

GAAP net income per ADS - basic 0.03 0.04 0.08 0.14

GAAP net income per ADS - diluted 0.03 0.04 0.08 0.14

Non-GAAP net income per ADS - basic 0.06 0.06 0.18 0.23

Non-GAAP net income per ADS - diluted 0.06 0.06 0.18 0.22

Shares used in calculating basic GAAP / non-GAAP net 135,790,091 136,308,496 135,770,793 136,070,785 income attributable to shareholders per ADS

Shares used in calculating diluted GAAP / non-GAAP net 135,943,267 138,318,826 135,811,751 137,564,567 income attributable to shareholders per ADS



[2] Amount represents the realization of deferred tax liabilities recognizedfor the temporary difference between the taxbasis of intangible assets recognized from acquisitions and their reportedamounts in the financial statements. Theincome tax impact on the share-based compensation expense is nil.



LEJU HOLDINGS LIMITED

SELECTED OPERATING DATA

Three months ended Year ended

December 31, December 31,

2019 2020 2019 2020

Operating data for e-commerce services

Number of discount coupons issued to prospective purchasers (number of 84,891 83,206 252,519 243,836 transactions)

Number of discount coupons redeemed(number 70,007 67,514 177,201 192,716 of transactions)

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SOURCE Leju Holdings Limited