Leju Reports Third Quarter 2019 Results and Issues Notice of Annual General Meeting

BEIJING,Nov. 25,2019 --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 fiscalquarter and nine months ended September 30,2019.

Third Quarter 2019 Financial Highlights

Total revenues increased by 39% year-on-year to $185.4 million.

- Revenues from e-commerce services increased by 58% year-on-year to $153.4 million.

- Revenues from online advertising services decreased by 13% year-on-year to $31.5 million.

Income from operations was $15.8 million,an increase of 40% from $11.3 million for the same quarter of 2018.

Non-GAAP[1] income from operations was $19.5 million,an increase of 25% from $15.6 million for the same quarter of 2018.

Net income attributable to Leju Holdings Limited shareholders was $11.2 million,or $0.08 per diluted American depositary share ("ADS"),an increase of 63% from $6.8 million,or $0.05 per diluted ADS,for the same quarter of 2018.

Non-GAAP net income attributable to Leju Holdings Limited shareholders was $14.1 million,or $0.10 per diluted ADS,an increase of 37% from $10.3 million,or $0.08 per diluted ADS,for the same quarter of 2018.

First Nine Month 2019 Financial Highlights

Total revenues increased by 38% year-on-year to $465.8 million.

- Revenues from e-commerce services increased by 52% year-on-year to $362.6 million.

- Revenues from online advertising services increased by 4% year-on-year to $101.8 million.

Income from operations was $8.7 million,compared to loss from operations of $10.2 million for the same period of 2018.

Non-GAAP income from operations was $19.9 million,an increase of 611% from $2.8 million for the same period of 2018.

Net income attributable to Leju Holdings Limited shareholders was $7.0 million,compared to net loss attributable to Leju Holdings Limited shareholders of $14.9 million,or $0.11 loss per diluted ADS for the same period of 2018.

Non-GAAP net income attributable to Leju Holdings Limited shareholders was $15.9 million,or $0.12 per diluted ADS,compared to non-GAAP net loss attributable to Leju Holdings Limited shareholders of $4.4 million,or $0.03 loss per diluted ADS for the same period of 2018.

[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,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.

"We are pleased that our revenue reached a record high in the third quarter," said Mr. Geoffrey He,Leju's chief executive officer. "Since the second half of this year,increasing demand for marketing services from developers as a result of added pressure to reduce inventories has driven significant growth in our new e-commerce business. Leju's top-down strategy has allowed us to seize market opportunities,expand our customer base and increase the average number of projects under cooperation per customer,all of which provide a solid foundation to grow our project pipelinefor the fourth quarter and next year. In addition,in the third quarter,our profit remained stable with continued positive cash inflow generated from operations. In the fourth quarter,Leju will hold our annual gala awards ceremony for China's property industry,which will help to further enhance our media influence and customer relationships. "

Third Quarter 2019 Results

Total revenueswere $185.4 million,an increase of 39% from $133.6 million for the same quarter of 2018,mainly due to an increase in revenues from e-commerce services.

Revenues from e-commerce serviceswere $153.4 million,an increase of 58% from $96.9 million for the same quarter of 2018,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 services were $31.5 million,a decrease of 13% from $36.0 million for the same quarter of 2018,primarily due to a decrease in property developers' demand for online advertising.

Revenues from listing serviceswere $0.5 million,a decrease of 34% from $0.8 million for the same quarter of 2018,primarily due to a decrease in secondary real estate brokers' demand.

Cost of revenueswas $13.2 million,a decrease of 22% from $16.9 million for the same quarter of 2018,primarily due to decreased cost of advertising resources purchased from media platforms related to the Company's online advertising business.

Selling,general and administrative expenseswere $157.0 million,an increase of 48% from $106.2 million for the same quarter of 2018,primarily due to increased marketing expenses related to the Company's e-commerce business.

Income from operationswas $15.8 million,an increase of 40% from $11.3 millionfor the same quarter of 2018. Non-GAAP income from operationswas $19.5 million,an increase of 25% from $15.6 million for the same quarter of 2018.

Net income was $11.3 million,an increase of 54% from $7.3million for the same quarter of 2018. Non-GAAP net income was $14.2 million,an increase of 32% from $10.8 millionfor the same quarter of 2018.

Net income attributable to Leju Holdings Limited shareholderswas $11.2 million,an increase of 63% from$6.8 million,for the same quarter of 2018. Non-GAAP net income attributable to Leju Holdings Limited shareholderswas $14.1 million,an increase of 37% from $10.3million,for the same quarter of 2018.

First Nine Month 2019 Results

Total revenueswere $465.8 million,an increase of 38% from $337.8 million for the same period of 2018,mainly due to an increase in revenues from e-commerce services.

Revenues from e-commerce serviceswere $362.6 million,an increase of 52% from $237.9 million for the same period of 2018,partially offset by a decrease in the average price per discount coupon redeemed.

Revenues from online advertising services were $101.8 million,an increase of 4% from $97.5 million for the same period of 2018,primarily due to an increase in property developers' demand for online advertising in the first half of 2019.

Revenues from listing serviceswere $1.4 million,a decrease of 44% from $2.4 million for the same period of 2018,primarily due to a decrease in secondary real estate brokers' demand.

Cost of revenueswas $55.1 million,an increase of 2% from $54.0 million for the same period of 2018,primarily due to increased cost of advertising resources purchased from media platforms related to the Company's online advertising business in the first half of 2019.

Selling,general and administrative expenseswere $403.0 million,an increase of 36% from $296.1 million for the same period of 2018,primarily due to increased marketing expenses related to the Company's e-commerce business.

Income from operationswas $8.7 million,compared to loss from operations of $10.2 million for the same period of 2018. Non-GAAP income from operationswas $19.9 million,an increase of 611% from $2.8 million for the same period of 2018.

Net income was $7.4 million,compared to net loss of $15.0 million for the same period of 2018. Non-GAAP net income was $16.2 million,compared to non-GAAP net loss of $4.4 million for the same period of 2018.

Net income attributable to Leju Holdings Limited shareholderswas $7.0 million,compared tonet loss attributable to Leju Holdings Limited shareholders of $14.9 million,or $0.11 loss per diluted ADS for the same period of 2018. Non-GAAP net income attributable to Leju Holdings Limited shareholderswas $15.9 million,or $0.03 loss per diluted ADS for the same period of 2018.

Cash Flow

As of September 30,2019,the Company's cash and cash equivalents balance was $171.0 million.

Third quarter 2019 net cash provided by operating activities was $10.9 million,primarily comprised of non-GAAP net income of $14.2 million,an increase in accrued marketing and advertising expenses and other current liabilities of $21.1 million,an increase in advance from customer of $6.0 million,and an increase in income tax payable and other tax payable of 4.7 million,partially offset by an increase in accounts receivable and contract assets of $18.4 million,and an increase in customer deposits of $18.2 million.

Business Outlook

The Company estimates that its total revenues for the fourth quarter of 2019 will be approximately $200 million to $210 million,which would represent an increase of approximately 61% to 69% from $124.2 million in the same quarter in 2018. This forecast reflects the Company's current and preliminary view,which is subject to change.

Leju to Hold Annual General Meeting on December 20,2019

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 20,2019 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 December 2,2019 (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 25,2019 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:

+1-845-675-0437

Hong Kong:

+852-3018-6771

Mainland China:

400-620-8038

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 December 3,2019:

U.S./International:

+1-855-452-5696

Hong Kong:

800-963-117

Mainland China:

400-632-2162

Passcode:

8377206

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 inChina'sreal estate market; the highly regulated nature of,and government measures affecting,the real estate and internet industries inChina; 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 limited operating history and lack of experience as a stand-alone public company,given its carve-out from E-House and prior reliance on E-House for various corporate services; 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; complexities resulting from its ongoing relationships with E-House,due to E-House's status as a principal shareholder of 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 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,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,

September 30,

2018

2019

ASSETS

Current assets

Cash and cash equivalents

147,263

171,014

Accounts receivable,net

102,697

134,034

Contract assets

2,137

8,400

Marketable securities

2,467

3,414

Prepaid expenses and other current assets

8,621

7,100

Customer deposits

10,672

27,610

Amounts due from related parties

6,695

9,483

Total current assets

280,552

361,055

Property and equipment,net

14,058

17,968

Intangible assets,net

57,401

48,503

Right-of-use assets[2]

—

27,624

Investment in affiliates

63

51

Deferred tax assets

62,356

60,507

Other non-current assets

2,297

2,051

Total assets

416,727

517,759

LIABILITIES AND EQUITY

Current liabilities

Accounts payable

803

1,715

Accrued payroll and welfare expenses

30,628

31,943

Income tax payable

58,030

58,329

Other tax payable

12,675

18,000

Amounts due to related parties

3,477

11,399

Advance from customers

26,873

40,710

Lease liabilities,current[2]

—

5,238

Customer deposit payable

—

7,069

Accrued marketing and advertising expenses

14,896

29,861

Other current liabilities

12,999

31,465

Total current liabilities

160,381

235,729

Lease liabilities,non-current[2]

—

22,725

Deferred tax liabilities

14,780

14,342

Total liabilities

175,161

272,796

Shareholders' Equity

Ordinary shares ($0.001 par value): 1,000,000 shares

authorized,135,763,962 and 135,770,628 shares issued and

outstanding,as of December 31,2018 and September 30,

2019,respectively

136

136

Additional paid-in capital

792,626

794,344

Accumulated deficit

(528,825)

(521,804)

Accumulated other comprehensive loss

(19,848)

(25,629)

Total Leju Holdings Limited shareholders' equity

244,089

247,047

Non-controlling interests

(2,523)

(2,084)

Total equity

241,566

244,963

TOTAL LIABILITIES AND EQUITY

416,759

[2] In February 2016,the FASB issued ASU 2016-02,Leases (Topic 842),which requires lessees to recognize a

right-of-use asset and lease liability on their balance sheet for all leases with a term of more than 12 months. The Group

adopted this ASU on January 1,2019 using the modified retrospective approach and the financial statements for the

comparative period has not been restated.

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,

2018

2019

2018

2019

Revenues

E-commerce

96,853

153,428

237,894

362,642

Online advertising services

35,968

31,466

97,459

101,798

Listing services

767

505

2,434

1,357

Total revenues

133,588

185,399

337,787

465,797

Cost of revenues

(16,935)

(13,237)

(54,015)

(55,068)

Selling,general and administrative expenses

(106,195)

(156,977)

(296,122)

(402,994)

Other operating income

850

590

2,158

958

Income (loss) from operations

11,308

15,775

(10,192)

8,693

Interest income

286

315

845

900

Interest expenses

—

(858)

—

(858)

Other income (loss),net

(3,897)

(191)

(6,269)

1,102

Income (loss) before taxes and loss from equity

in affiliates

7,697

15,041

(15,616)

9,837

Income tax benefits/(expenses)

(361)

(3,776)

732

(2,469)

Income (loss) before loss from equity in

affiliates

7,336

11,265

(14,884)

7,368

Income (loss) from equity in affiliates

(19)

15

(70)

(11)

Net income (loss)

7,317

11,280

(14,954)

7,357

Less: net income (loss) attributable to

non-controlling interests

473

121

(52)

337

Income (loss) attributable to Leju Holdings

Limited shareholders

6,844

11,159

(14,902)

7,020

Earnings (loss) per ADS:

Basic

0.05

0.08

(0.11)

0.05

Diluted

0.05

0.08

(0.11)

0.05

Shares used in computation of earnings (loss) per

ADS:

Basic

135,962

135,765,158

135,764,361

Diluted

135,769,998

135,767,912

The conversion of functional currency Renminbi ("RMB") amounts into reporting currency USD amounts

is based on the rate of USD1 = RMB7.0729 on September 30,2019 and USD1 = RMB6.8569 for the nine

months ended September 30,2019.

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,

2018

2019

2018

2019

Net income (loss)

7,357

Other comprehensive loss,net of tax of nil

Foreign currency translation adjustment

(3,243)

(5,310)

(4,016)

(5,781)

Comprehensive income (loss)

4,074

5,970

(18,970)

1,576

Less: Comprehensive income attributable to

non-controlling interest

551

161

71

377

Comprehensive income (loss) attributable to Leju

Holdings Limited shareholders

3,523

5,809

(19,041)

1,199

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,

2018

2019

2018

2019

GAAP income (loss) from operations

11,693

Share-based compensation expense

1,098

599

3,133

1,770

Amortization of intangible assets resulting from business

acquisitions

3,204

3,153

9,859

9,459

Non-GAAP income from operations

15,610

19,527

2,800

19,922

GAAP net income (loss)

7,357

Share-based compensation expense

1,770

Amortization of intangible assets resulting from

business acquisitions

3,459

Income tax benefit:

Current

—

—

—

—

Deferred[3]

(801)

(788)

(2,465)

(2,364)

Non-GAAP net income (loss)

10,818

14,244

(4,427)

16,222

Net income (loss) attributable to Leju Holdings Limited shareholder

6,020

Share-based compensation expense

(net of non-controlling interests)

1,094

599

3,113

1,770

Amortization of intangible assets resulting from business

acquisitions (net of non-controlling interests)

3,459

Income tax benefit:

Current

—

—

—

—

Deferred

(801)

(788)

(2,364)

Non-GAAP net income (loss) attributable to Leju

Holdings Limited shareholders

10,341

14,123

(4,395)

15,885

GAAP net income (loss) per ADS — basic

0.05

0.08

(0.11)

0.05

GAAP net income (loss) per ADS — diluted

0.05

0.08

(0.11)

0.05

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

0.08

0.10

(0.03)

0.12

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

0.08

0.10

(0.03)

0.12

Shares used in calculating basic GAAP / non-GAAP net

income (loss) attributable to shareholders per ADS

135,361

Shares used in calculating diluted GAAP / non-GAAP net

income (loss) attributable to shareholders per ADS

135,912

[3] 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

Three months ended

Nine months ended

September 30,

2018

2019

2018

2019

Operating data for e-commerce services

Number of discount coupons issued to

prospective purchasers (number of

transactions)

31,554

73,259

109,484

167,628

Number of discount coupons redeemed (number of

transactions)

30,807

51,400

65,494

107,194

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