PR Newswire | Nov 23, 2020 04:21AM EST

Meeting

11/23 03:20 CST

Leju Reports Third Quarter 2020 Results and Issues Notice of Annual General Meeting BEIJING, Nov. 23, 2020

BEIJING, Nov. 23, 2020 /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 nine months ended September 30, 2020.

Third Quarter 2020 Financial Highlights

* Total revenues increased by 13% year-on-year to $209.4 million. - Revenues from e-commerce services increased by 12% year-on-year to $172.4 million. - Revenues from online advertising services increased by 17% year-on-year to $36.7 million. * Net income attributable to Leju Holdings Limited shareholders was $11.7 million, or $0.08 per diluted American depositary share ("ADS"), an increase of 5% from $11.2 million, or $0.08 per diluted ADS, for the same quarter of 2019. * Non-GAAP[1] net income attributable to Leju Holdings Limited shareholders was $14.7 million, or $0.11 per diluted ADS, an increase of 4% from $14.1 million, or $0.10 per diluted ADS, for the same quarter of 2019.

First Nine Months 2020 Financial Highlights

* Total revenues increased by 5% year-on-year to $489.1 million. - Revenues from e-commerce services increased by 4% year-on-year to $377.8 million. - Revenues from online advertising services increased by 9% year-on-year to $110.7 million. * Income from operations was $14.0 million, an increase of 61% from $8.7 million for the same period of 2019. * Non-GAAP income from operations was $24.8 million, an increase of 25% from $19.9 million for the same period of 2019. * Net income attributable to Leju Holdings Limited shareholders was $13.2 million, or $0.10 per diluted ADS, an increase of 88% from $7.0 million, or $0.05 per diluted ADS for the same period of 2019. * Non-GAAP net income attributable to Leju Holdings Limited shareholders was $21.9 million, or $0.16 per diluted ADS, an increase of 38% from $15.9 million, or $0.12 per diluted ADS for the same period of 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.

"We maintained strong momentum for our business development in the third quarter as we realized healthy growth in our advertising and e-commerce business," said Mr. Geoffrey He, Leju's chief executive officer. "During the third quarter we successfully held our 'Suning & Leju 818 Summer Storm' sale. In September, our affiliate company E-House and Alibaba jointly launched the Tmall Housing platform and the real estate transaction cooperation mechanism or ETC. As part of this, Leju, together with Tmall Housing, Suning e-buy and E-House, jointly launched the 'Double 11 - Tmall Housing 10 Billion Subsidy' promotion during the Double 11 period. These activities have received strong industry recognition, especially the "Double 11" promotion, which involved 302 brands and over 2,000 real estate projects. The success of these activities further highlights Leju's multi-channel digital marketing capabilities, takes the development of our advertising and e-commerce business to the next level and further solidifies Leju's position in the real-estate marketing industry as the leader in providing comprehensive solutions throughout the value chain."

"In the fourth quarter, Leju will hold a series of influential annual events marking Double 12. We look forward to building on the momentum of Double 11, further enhancing our influence in the industry, increasing product innovation, and significantly improving the client coverage and service level as we end the year on a strong note and begin to prepare for 2021."

Third Quarter 2020 Results

Total revenues were $209.4 million, an increase of 13% from $185.4 million for the same quarter of 2019, mainly due to an increase in revenues from e-commerce services and online advertisingservices.

Revenues from e-commerce services were $172.4 million, an increase of 12% from $153.4 million for the same quarter of 2019, primarily due to an increase in the number of discount coupons redeemed.

Revenues from online advertising serviceswere $36.7 million, an increase of 17% from $31.5 million for the same quarter of 2019, primarily due to an increase in property developers' demand for online advertising.

Revenues from listing services were $0.3 million, a decrease of 45% from $0.5 million for the same quarter of 2019, primarily due to a decrease in secondary real estate brokers' demand.

Cost of revenues was $14.8 million, an increase of 12% 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 $181.8 million, an increase of 16% from $157.0 million for the same quarter of 2019, primarily due to increased marketing expenses related to the Company's e-commerce business.

Income from operations was $12.9 million, a decrease of 18% from $15.8 million for the same quarter of 2019. Non-GAAP income from operations was $16.6 million, a decrease of 15% from $19.5 million for the same quarter of 2019.

Net incomewas $11.9 million, an increase of 5% from $11.3 million for the same quarter of 2019. Non-GAAP net incomewas $14.9 million, an increase of 4% from $14.2 million for the same quarter of 2019.

Net income attributable to Leju Holdings Limited shareholders was $11.7 million, or $0.08 per diluted ADS, an increase of 5% from $11.2 million, or $0.08 per diluted ADS, for the same quarter of 2019. Non-GAAP net income attributable to Leju Holdings Limited shareholders was $14.7 million, or $0.11 per diluted ADS, an increase of 4% from $14.1 million, or $0.10 per diluted ADS, for the same quarter of 2019.

First Nine Months 2020 Results

Total revenues were $489.1 million, an increase of 5% from $465.8 million for the same period of 2019, mainly due to an increase in revenues from e-commerce services and online advertising services.

Revenues from e-commerce services were $377.8 million, an increase of 4% from $362.6 million for the same period of 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 $110.7 million, an increase of 9% from $101.8 million for the same period of 2019, primarily due to an increase in property developers' demand for online advertising.

Revenues from listing services were $0.6 million, a decrease of 54% from $1.4 million for the same period of 2019, primarily due to a decrease in secondary real estate brokers' demand.

Cost of revenues was $56.0 million, an increase of 2% from $55.1 million for the same period 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 $419.5 million, an increase of 4% from $403.0 million for the same period of 2019, primarily due to increased marketing expenses related to the Company's e-commerce business.

Income from operations was $14.0 million, an increase of 61% from $8.7 million for the same period of 2019. Non-GAAP income from operations was $24.8 million, an increase of 25% from $19.9 million for the same period of 2019.

Net incomewas $13.8 million, an increase of 87% from $7.4 million for the same period of 2019. Non-GAAP net incomewas $22.5 million, an increase of 38% from $16.2 million for the same period of 2019.

Net income attributable to Leju Holdings Limited shareholders was $13.2 million, or $0.10 per diluted ADS, an increase of 88% from $7.0 million, or $0.05 per diluted ADS for the same period of 2019. Non-GAAP net income attributable to Leju Holdings Limited shareholders was $21.9 million, or $0.16 per diluted ADS, an increase of 38% from $15.9 million, or $0.12 per diluted ADS for the same period of 2019.

Cash Flow

As of September 30, 2020, the Company's cash and cash equivalents and restricted cash were $273.8 million.

Third quarter 2020 net cash used in operating activities was $4.4 million, primarily comprised of a decrease in amounts due to related parties of $30.7 million, an increase in amounts due from related parties of $16.3 million and an increase in accounts receivable of $15.3 million, partially offset by non-GAAP net income of $14.9 million, an increase in other current liabilities and accrued expenses of $23.1 million, an increase in income tax payable and other tax payable of $7.7 million, and a decrease in customer deposits of $12.0 million.

Business Outlook

The Company estimates that its total revenues for the fourth quarter of 2020 will be approximately $230million to $250 million, which would represent an increase of approximately 1% to 10% from $226.8 million in the same quarter in 2019. This forecast reflects the Company's current and preliminary view, which is subject to change.

Leju to Hold Annual General Meeting on December 21, 2020

Leju announced that it will hold its annual general meeting of shareholders (the "AGM") at Room 1120, 11/F, Yinli Building, No. 383 Guangyan Road, Shanghai, the People's Republic of China on December 21, 2020 at 10:00AM (local time). No proposal will be submitted to shareholders for approval at the AGM. Instead, the AGM will serve as an open forum for shareholders and holders of the Company's ADSs to discuss Company affairs with management.

Holders of record of the Company's ordinary shares at the close of business on November 30, 2020 (Eastern Daylight Time) are entitled to receive notice of and attend the annual general meeting or any adjournment or postponement thereof. Holders of the Company's ADSs are welcome to attend the AGM in person.

The notice of the annual general meeting is available on the Company's website at http://ir.leju.com.

Conference Call Information

Leju's management will host an earnings conference call on November 23, 2020 at 6 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/4452418

CONFERENCE ID: 4452418

A replay of the conference call may be accessed by phone at the following number until December 1, 2020:

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

Hong Kong: +800-963-117

Mainland China: 400-632-2162

Passcode: 4452418

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 31, September 30,

2019 2020

ASSETS

Current assets

Cash and cash equivalents 159,012 270,840

Restricted cash - 2,993

Accounts receivable, net 147,638 202,824

Contract assets 830 604

Marketable securities 3,438 4,406

Prepaid expenses and other current assets 5,436 6,285

Customer deposits 57,174 11,107

Amounts due from related parties 9,673 17,653

Total current assets 383,201 516,712

Property and equipment, net 18,108 16,813

Intangible assets, net 45,581 36,926

Right-of-use assets 26,776 25,651

Investment in affiliates 53 22

Deferred tax assets 49,311 50,513

Other non-current assets 1,450 1,339

Total assets 524,480 647,976

LIABILITIES AND EQUITY

Current liabilities

Accounts payable 1,523 4,141

Accrued payroll and welfare expenses 32,787 29,766

Income tax payable 56,691 62,473

Other tax payable 20,056 23,068

Amounts due to related parties 4,407 23,401

Advance from customers 34,246 104,512

Lease liabilities, current 5,189 5,390

Accrued marketing and advertising expenses 49,830 61,486

Other current liabilities 32,784 25,778

Total current liabilities 237,513 340,015

Lease liabilities, non-current 22,866 21,659

Deferred tax liabilities 11,742 12,028

Total liabilities 272,121 373,702

Shareholders' Equity

Ordinary shares ($0.001 par value): 1,000,000,000shares authorized, 135,812,719 and 136,290,356 sharesissued and 136 136 outstanding, as of December 31, 2019 and September30, 2020, respectively

Additional paid-in capital 796,192 798,791

Accumulated deficit (517,303) (504,119)

Subscription receivables - (19)

Accumulated other comprehensive loss (23,624) (18,276)

Total Leju Holdings Limited shareholders' equity 255,401 276,513

Non-controlling interests (3,042) (2,239)

Total equity 252,359 274,274

TOTAL LIABILITIES AND EQUITY 524,480 647,976

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 Nine months ended

September 30, September 30,

2019 2020 2019 2020

Revenues

E-commerce 153,428 172,385 362,642 377,833

Online advertising 31,466 36,729 101,798 110,658

Listing 505 279 1,357 618

Total net revenues 185,399 209,393 465,797 489,109

Cost of revenues (13,237) (14,832) (55,068) (55,970)

Selling, general and (156,977) (181,781) (402,994) (419,451)administrative expenses

Other operating income, 590 87 958 332net

Income from operations 15,775 12,867 8,693 14,020

Interest income (543) 1,851 42 2,550(expenses), net

Other income (loss), (191) 907 1,102 1,620net

Income before taxes andincome (loss) from 15,041 15,625 9,837 18,190 equity in affiliates

Income tax expenses (3,776) (3,763) (2,469) (4,381)

Income before income(loss) from equity in 11,265 11,862 7,368 13,809affiliates

Income (loss) fromequity in affiliates, 15 (9) (11) (31)net of taxof nil

Net income 11,280 11,853 7,357 13,778

Less: net incomeattributable to 121 161 337 594non-controlling interests

Net income attributableto Leju Holdings 11,159 11,692 7,020 13,184 Limited shareholders

Earnings per share:

Basic 0.08 0.09 0.05 0.10

Diluted 0.08 0.08 0.05 0.10

Shares used incomputation of earningsper ADS:

Basic 135,765,158 136,191,411 135,764,361 135,991,548

Diluted 135,769,998 138,366,523 135,767,912 136,815,220

The conversion of functional currency Renminbi ("RMB") amounts intoreporting currency USD amounts is based on the rate of USD1 = RMB6.8101 on September 30, 2020 andUSD1 = RMB7.0177 for the nine months ended September 30, 2020.

LEJU HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)

(In thousands of U.S. dollars)

Three months ended Nine months ended

September 30, September 30,

2019 2020 2019 2020

Net income 11,280 11,853 7,357 13,778

Other comprehensive income (loss), netof tax of nil

Foreign currency translation (5,310) 8,601 (5,781) 5,322adjustments

Comprehensive income 5,970 20,454 1,576 19,100

Less: Comprehensive income attributableto 161 104 377 568 non-controlling interests

Comprehensive income attributable toLeju 5,809 20,350 1,199 18,532

Holdings 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 Nine months ended

September 30, September 30,

2019 2020 2019 2020

GAAP income from 15,775 12,867 8,693 14,020operations

Share-based 599 1,046 1,770 2,282compensation expense

Amortization ofintangible assetsresulting from 3,153 2,640 9,459 8,541business acquisitions

Non-GAAP income from 19,527 16,553 19,922 24,843operations

GAAP net income 11,280 11,853 7,357 13,778

Share-based 599 1,046 1,770 2,282compensation expense

Amortization ofintangible assetsresulting from 3,153 2,640 9,459 8,541 businessacquisitions

Income tax benefits:

Current - - - -

Deferred^[2] (788) (660) (2,364) (2,136)

Non-GAAP net income 14,244 14,879 16,222 22,465

Net incomeattributable to Leju 11,159 11,692 7,020 13,184Holdings Limited shareholder

Share-basedcompensation expense (net of 599 1,046 1,770 2,282non-controllinginterests)

Amortization ofintangible assetsresulting frombusiness 3,153 2,640 9,459 8,541 acquisitions (netof non-controllinginterests)

Income tax benefits:

Current - - - -

Deferred (788) (660) (2,364) (2,136)

Non-GAAP net incomeattributable to LejuHoldings 14,123 14,718 15,885 21,871 Limitedshareholders

GAAP net income per 0.08 0.09 0.05 0.10ADS - basic

GAAP net income per 0.08 0.08 0.05 0.10ADS - diluted

Non-GAAP net income 0.10 0.11 0.12 0.16per ADS - basic

Non-GAAP net income 0.10 0.11 0.12 0.16per ADS - diluted

Shares used incalculating basicGAAP / non-GAAP net 135,765,158 136,191,411 135,764,361 135,991,548 incomeattributable toshareholders per ADS

Shares used incalculating dilutedGAAP / non-GAAP net 135,769,998 138,366,523 135,767,912 136,815,220 incomeattributable toshareholders 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 Nine months ended

September 30, September 30,

2019 2020 2019 2020

Operating data for e-commerce services

Number of discount coupons issued to prospective purchasers (number of 73,259 66,415 167,628 160,630 transactions)

Number of discount coupons redeemed(number 51,400 57,934 107,194 125,202 of transactions)

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SOURCE Leju Holdings Limited