Leju Reports Second Half Year and Full Year 2022 Results

BEIJING,March 31,2023 -- Leju Holdings Limited ("Leju" or the "Company") (NYSE: LEJU),a leading e-commerce and online media platform for real estate and home furnishing industries in China,today announced its unaudited financial results for the second half and full year ended December 31,2022.

Second Half 2022 Financial Highlights

Total revenues decreased by 25% year on year to $173.7 million.

Revenues from e-commerce services decreased by 19% year on year to $145.8 million.

Revenues from online advertising services decreased by 48% year on year to $27.9 million.

Loss from operations was $40.9 million,compared to loss from operations of $116.9 million for the same period of 2021.

Non-GAAP[1] loss from operations was $34.7 million,compared to Non-GAAP loss from operations of $111.2 million for the same period of 2021.

Net loss attributable to Leju Holdings Limited shareholders was $36.8 million,or $2.69 loss per diluted American depositary share ("ADS"),compared to net loss attributable to Leju Holdings Limited shareholders of $103.2 million,or $7.54 loss per diluted ADS[2],for the same period of 2021.

Non-GAAP net loss attributable to Leju Holdings Limited shareholders was $32.0 million,or $2.33 loss per diluted ADS,compared to non-GAAP net loss attributable to Leju Holdings Limited shareholders of $98.7 million,or $7.22 loss per diluted ADS,for the same period of 2021.

[1] Leju uses in this press release the following non-GAAP financial measures: (1) income (loss) from operations,(2) net income (loss),(3) net income (loss) attributable to Leju shareholders,(4) net income (loss) attributable to Leju shareholders per basic ADS,and (5) net income (loss) attributable to Leju shareholders per diluted ADS,each of which excludes share-based compensation expense,amortization of intangible assets resulting from business acquisitions,and income tax impact on the share-based compensation expense and amortization of intangible assets resulting from business combinations. See "About Non-GAAP Financial Measures" and "Unaudited Reconciliation of GAAP and Non-GAAP Results" below for more information about the non-GAAP financial measures included in this press release.

[2] On May 10,2022,Leju announced that it would change its American depositary share ("ADS") to ordinary share ("Share") ratio from one (1) ADS representing one (1) Share to one (1) ADS representing ten (10) Shares. The change in the ADS ratio was effective on May 20,2022. For Leju's ADS holders,the change in the ADS ratio had the same effect as a one-for-ten reverse ADS split. The ADS ratio change has no impact on Leju's underlying Shares. Loss per ADS for 2021 had been retrospectively adjusted accordingly.

Full Year 2022 Financial Highlights

Total revenues decreased by 36% year on year to $343.2 million.

Revenues from e-commerce services decreased by 32% year on year to $278.5 million.

Revenues from online advertising services decreased by 47% year on year to $64.7 million.

Loss from operations was $105.6 million,compared to loss from operations of $166.7 million for 2021.

Non-GAAP loss from operations was $93.2 million,compared to non-GAAP loss from operations of $154.5 million for 2021.

Net loss attributable to Leju Holdings Limited shareholders was $89.7 million,or $6.54 loss per diluted ADS,compared to net loss attributable to Leju Holdings Limited shareholders of $150.9 million,or $11.05 loss per diluted ADS for 2021.

Non-GAAP net loss attributable to Leju Holdings Limited shareholders was $79.9 million,or $5.83 loss per diluted ADS,compared to non-GAAP net loss attributable to Leju Holdings Limited shareholders of $141.4 million,or $10.34 loss per diluted ADS for 2021.

"In the second half of 2022,China's real estate industry did not show significant improvement,while real estate developers continued to experience liquidity pressure and overall market sales continued to decline,all of which had negatively impacted Leju's online advertising and e-commerce businesses," said Mr. Geoffrey He,Leju's Chief Executive Officer.

"Although the central government and local governments introduced measures to support the real estate industry in the fourth quarter of 2022,it will take the market some time to absorb and respond. Looking ahead to 2023,real estate sales are anticipated to remain depressed as developers work to restore their financial fundamentals. Leju has made adaptive optimization and adjustment to our sales network and team structure based on these projections. Finally,in order to be ready to take advantage of the future market recovery,we will enhance our focus on brand building efforts and new product development."

Second Half 2022 Results

Total revenueswere $173.7 million,a decrease of 25% from $233.0 million for the same period of 2021.

Revenues from e-commerce serviceswere $145.8 million,a decrease of 19% from $179.7 million for the same period of 2021,primarily due to a decrease in the number of discount coupons redeemed,partially offset by an increase in the average price per discount coupon redeemed.

Revenues from online advertising services were $27.9 million,a decrease of 48% from $53.2 million for the same period of 2021,primarily due to a decrease in property developers' demand for online advertising.

Cost of revenueswas $16.1 million,a decrease of 33% from $24.1 million for the same period of 2021,primarily due to decreased cost of advertising resources purchased from media platforms,and decreased editorial personnel related costs.

Selling,general and administrative expenseswere $198.7 million,a decrease of 39% from $326.2 million for the same period of 2021,primarily due to the $63.7 million decrease in the bad debt provision,and decreased marketing expenses related to the Company's e-commerce business. The bad debt provision recorded in the second half of 2021 was mainly attributable to the recognition of additional loss allowance on expected credit loss of the Company's outstanding online advertising related receivables from certain customers,whose credit quality worsened.

Loss from operationswas $40.9 million,compared to loss from operations of $116.9 million for the same period of 2021.Non-GAAP loss from operationswas $34.7 million,compared to non-GAAP loss from operations of $111.2 million for the same period of 2021.

Net loss was $36.9 million,compared to net loss of $103.0million for the same period of 2021.Non-GAAP net loss was $32.0 million,compared to non-GAAP net loss of $98.6millionfor the same period of 2021.

Net loss attributable to Leju Holdings Limited shareholderswas $36.8 million,or $2.69 loss per diluted ADS,compared to net loss attributable to Leju Holdings Limited shareholdersof $103.2 million,or $7.54 lossper diluted ADS,for the same period of 2021. Non-GAAP net loss attributable to Leju Holdings Limited shareholderswas $32.0 million,for the same period of 2021.

Full year 2022 Results

Total revenueswere $343.2 million,a decrease of 36% from $534.1 million for 2021.

Revenues from e-commerce serviceswere $278.5 million,a decrease of 32% from $411.1 million for 2021,partially offset by an increase in the average price per discount coupon redeemed.

Revenues from online advertising services were $64.7 million,a decrease of 47% from $122.5 million for 2021,primarily due to a decrease in property developers' demand for online advertising.

Cost of revenueswas $30.6 million,a decrease of 45% from $55.8 million for 2021,general and administrative expenseswere $418.5 million,a decrease of 35% from $645.6 million for 2021,primarily due to the $97.5 million decrease in the bad debt provision,and decreased marketing expenses related to the Company's e-commerce business. The bad debt provision recorded in 2021 was mainly attributable to the recognition of additional loss allowance on expected credit loss of the Company's outstanding online advertising related receivables from certain customers,whose credit quality worsened.

Loss from operationswas $105.6 million,compared to loss from operations of $166.7 million for 2021.Non-GAAP loss from operationswas $93.2 million,compared to non-GAAP net loss of $154.5 million for 2021.

Net loss was $89.7 million,compared to net loss of $149.9 million for2021. Non-GAAP net loss was $79.9 million,compared to non-GAAP net loss of $140.3million for 2021.

Net loss attributable to Leju Holdings Limited shareholders was $89.7 million,or $11.05 loss per diluted ADS,for 2021. Non-GAAP net loss attributable to Leju Holdings Limited shareholderswas $79.9 million,or $10.34 loss per diluted ADS,for 2021.

Cash Flow

As of December 31,the Company's cash and cash equivalents and restricted cash were $127.6 million.

Second half 2022 net cash used in operating activities was $47.4 million,primarily comprised of non-GAAP net loss of $32.0 million and a decrease in other current liabilities and accrued expenses of $13.6 million.

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 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,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) 8474-1287

E-mail: ir@leju.com

LEJU HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. dollars)

December 31,

December 31,

2021

2022

ASSETS

Current assets

Cash and cash equivalents

250,314

123,378

Restricted cash

2,082

4,271

Accounts receivable,net

36,071

3,408

Contract assets,net

1,415

—

Marketable securities

1,186

—

Prepaid expenses and other current assets

25,110

6,111

Customer deposits

784

3,860

Amounts due from related parties

3,913

2,476

Total current assets

320,875

143,504

Property and equipment,net

16,667

14,204

Intangible assets,net

23,298

12,458

Right-of-use assets

23,409

18,943

Investment in affiliates

18

—

Deferred tax assets,net

51,605

25,457

Other non-current assets

1,376

1,545

Total assets

437,248

216,111

LIABILITIES AND EQUITY

Current liabilities

Short-term borrowings

784

718

Accounts payable

1,631

654

Accrued payroll and welfare expenses

21,517

12,728

Income tax payable

60,952

25,203

Other tax payable

18,046

9,695

Amounts due to related parties

7,632

4,805

Advances from customers

82,788

43,100

Lease liabilities,current

5,582

5,038

Accrued marketing and advertising expenses

43,272

29,988

Other current liabilities

18,504

12,265

Total current liabilities

260,708

144,194

Lease liabilities,non-current

19,438

15,439

Deferred tax liabilities

6,043

3,518

Total liabilities

286,189

163,151

Shareholders' Equity

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

authorized,136,822,601 and 137,172,601 shares issued and

outstanding,as of December 31,2021 and 2022,

respectively

137

137

Additional paid-in capital

801,477

803,301

Accumulated deficit

(648,935)

(738,602)

Accumulated other comprehensive loss

(1,424)

(11,601)

Total Leju Holdings Limited shareholders' equity

151,255

53,235

Non-controlling interests

(196)

(275)

Total equity

151,059

52,960

TOTAL LIABILITIES AND EQUITY

437,111

LEJU HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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

Six months ended

Year ended

December 31,

2021

2022

2021

2022

Revenues

E-commerce

179,696

145,810

411,097

278,464

Online advertising

53,232

27,924

122,522

64,707

Listing

97

—

498

11

Total net revenues

233,025

173,734

534,117

343,182

Cost of revenues

(24,130)

(16,130)

(55,801)

(30,604)

Selling,general and administrative expenses

(326,151)

(198,739)

(645,623)

(418,501)

Other operating income,net

361

273

560

298

Loss from operations

(116,895)

(40,862)

(166,747)

(105,625)

Interest income,555

820

3,130

2,335

Other income (loss),net

(1,919)

695

209

1,496

Loss before taxes and loss from equity in

affiliates

(117,259)

(39,347)

(163,408)

(101,794)

Income tax benefits

14,228

2,478

13,498

12,120

Loss before loss from equity in affiliates

(103,031)

(36,869)

(149,910)

(89,674)

Loss from equity in affiliates

(6)

(17)

(14)

(17)

Net loss

(103,037)

(36,886)

(149,924)

(89,691)

Less: net income (loss) attributable to non-controlling interests

125

(70)

1,010

(23)

Net loss attributable to Leju Holdings Limited

shareholders

(103,162)

(36,816)

(150,934)

(89,668)

Loss per ADS:

Basic

(7.54)

(2.69)

(11.05)

(6.54)

Diluted

(7.54)

(2.69)

(11.05)

(6.54)

ADS used in computation of loss per ADS:

Basic

13,681,898

13,708,716

13,665,216

13,704,238

Diluted

13,238

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

is based on the rate of USD1 = RMB6.9646 on December 31,2022 and USD1 = RMB6.6935 for the year

ended December 31,2022.

LEJU HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)

(In thousands of U.S. dollars)

Six months ended

Year ended

December 31,

2021

2022

2021

2022

Net loss

(103,691)

Other comprehensive income (loss),net of tax of nil

Foreign currency translation adjustments

1,882

(4,891)

4,282

(10,232)

Comprehensive loss

(101,155)

(41,777)

(145,642)

(99,923)

Less: Comprehensive income (loss) attributable to

non-controlling interests

129

(86)

1,021

(78)

Comprehensive loss attributable to Leju Holdings

Limited shareholders

(101,284)

(41,691)

(146,663)

(99,845)

LEJU HOLDINGS LIMITED

Unaudited Reconciliation of GAAP and Non-GAAP Results

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

Six months ended

Year ended

December 31,

2021

2022

2021

2022

GAAP loss from operations

(116,625)

Share-based compensation expense

463

895

1,657

1,824

Amortization of intangible assets resulting from business

acquisitions

5,279

5,279

10,558

10,558

Non-GAAP loss from operations

(111,153)

(34,688)

(154,532)

(93,243)

GAAP net loss

(103,691)

Share-based compensation expense

463

895

1,824

Amortization of intangible assets resulting from

business acquisitions

5,558

Income tax benefits:

Current

—

—

—

—

Deferred[3]

(1,320)

(1,320)

(2,640)

(2,640)

Non-GAAP net loss

(98,615)

(32,032)

(140,349)

(79,949)

Net loss attributable to Leju Holdings Limited shareholder

(103,668)

Share-based compensation expense

(net of non-controlling interests)

463

895

1,824

Amortization of intangible assets resulting from business

acquisitions (net of non-controlling interests)

5,558

Income tax benefits:

Current

—

—

—

—

Deferred

(1,640)

Non-GAAP net loss attributable to Leju Holdings

Limited shareholders

(98,740)

(31,962)

(141,359)

(79,926)

GAAP net loss per ADS — basic

(7.54)

(2.69)

(11.05)

(6.54)

GAAP net loss per ADS — diluted

(7.54)

(2.69)

(11.05)

(6.54)

Non-GAAP net loss per ADS — basic

(7.22)

(2.33)

(10.34)

(5.83)

Non-GAAP net loss per ADS — diluted

(7.22)

(2.33)

(10.34)

(5.83)

ADS used in calculating basic GAAP / non-GAAP net loss

attributable to shareholders per ADS

13,238

ADS used in calculating diluted GAAP / non-GAAP net

loss attributable to shareholders per ADS

13,238

[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

Six months ended

Year ended

December 31,

2021

2022

2021

2022

Operating data for e-commerce services

Number of discount coupons issued to

prospective purchasers (number of

transactions)

70,138

35,794

162,196

67,250

Number of discount coupons redeemed (number

of transactions)

60,852

35,214

138,230

70,476