Leju Holdings Ltd (LEJU) 2021 Q4 法說會逐字稿

Hello and thank you for standing by for Leju Second Half and Full Year 2021 Earnings Conference Call. At this time, all participants are in listen-only mode. After management's prepared remarks, there will be a Q&A session. Please note that today's conference call is being recorded. If you have any objections, you may disconnect at any time. I would now turn the meeting over to your host for today's conference, Ms. Michelle Yuan, Leju's Deputy CFO.

您好，感謝您出席樂居2021年下半年及全年獲利電話會議。此時，所有參與者都處於只聽模式。管理階層準備好發言後，將舉行問答環節。請注意，今天的電話會議正在錄音。如果您有任何異議，可以隨時斷開連接。現在請今天開會的主持人，樂居副財務長袁女士。

Hello everyone and welcome to Leju's Second Half and Full Year 2021 Earnings Conference Call. Today, we will update you regarding our financial results for the second half and full year ended December 31, 2021. If you would like a copy of the earnings press release or would like to sign up for our e-mail distribution list, please go to our IR website at ir.leju.com. Leading the call today is Mr. Geoffrey He, our CEO, who will review our operational highlights for the second half and full year 2021. I will then discuss the financial results in more detail. Mr. Li-Lan Cheng, our acting CFO, along with Geoffrey, will then be available to answer your questions.

大家好，歡迎參加樂居2021年下半年及全年獲利電話會議。今天，我們將向您更新截至 2021 年 12 月 31 日的下半年和全年財務業績。如果您需要收益新聞稿的副本或想要註冊我們的電子郵件分發列表，請訪問訪問我們的投資者關係網址ir.leju.com。今天主持電話會議的是我們的執行長 Geoffrey He 先生，他將回顧我們 2021 年下半年和全年的營運亮點。然後我將更詳細地討論財務表現。我們的代理財務長鄭立蘭先生和傑弗裡將隨後回答您的問題。

Before we continue, please allow me to read you Leju's Safe Harbor Statement. Some of the statements during this conference call are forward-looking statements made under "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934, as amended.

在我們繼續之前，請允許我向您宣讀 Leju 的安全港聲明。本次電話會議期間的一些聲明是根據經修訂的 1934 年證券交易法第 21E 條「安全港」條款做出的前瞻性聲明。

Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. Potential risks and uncertainties include but are not limited to those outlined in our public filings with the SEC.

前瞻性陳述存在風險和不確定性，可能導致實際結果與我們目前的預期有重大差異。潛在風險和不確定性包括但不限於我們向 SEC 公開提交的文件中概述的風險和不確定性。

You are encouraged to review the "Forward-looking Statements" section of our annual report filed with the SEC for additional information concerning factors that could cause those differences. Leju does not undertake any obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

我們鼓勵您查看我們向美國證券交易委員會提交的年度報告的「前瞻性聲明」部分，以獲取有關可能導致這些差異的因素的更多資​​訊。樂居不承擔任何義務公開更新任何前瞻性陳述，無論是由於新資訊、未來事件或其他原因，除非適用法律要求。

Our earnings press release and this call include discussions of unaudited GAAP financial information as well as some unaudited non-GAAP financial measures. Our press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures.

我們的收益新聞稿和本次電話會議包括對未經審計的 GAAP 財務資訊以及一些未經審計的非 GAAP 財務指標的討論。我們的新聞稿包含未經審計的非公認會計準則衡量標準與未經審計的最直接可比較的公認會計準則衡量標準的調節表。

Please note that unless otherwise stated, all figures mentioned during this conference call are in US dollars. I will now turn the call over to Leju's CEO, Geoffrey He. He zong. Please go ahead.

請注意，除非另有說明，本次電話會議中提到的所有數字均以美元為單位。我現在將電話轉給樂居執行長何傑弗裡。何宗。請繼續。

Thanks Michelle, and thanks everyone for joining us on the today's call. In the second half of 2021, China's real estate industry experienced a steep downturn with many developers facing severe operational challenges. This had a direct and negative impact on Leju's online advertising and e-commerce businesses. As certain real estate developers faced a deterioration in their creditworthiness, our bad debt provision also continued to increase substantially in the second half of the year compared to 2020, resulting in further losses.

謝謝米歇爾，也謝謝大家參加今天的電話會議。 2021年下半年，中國房地產產業大幅下滑，不少開發商面臨嚴峻的經營挑戰。這對樂居的網路廣告和電子商務業務產生了直接的負面影響。由於部分房地產開發商信用狀況惡化，下半年我們的壞帳準備也較2020年持續大幅增加，虧損進一步擴大。

Rather than being discouraged by the current market downturn and uncertainties, the Leju team is rising to the challenges. In the second half of 2021, we held a series of successful marketing campaigns on our dual Tmall and Leju platforms, including our "916 Promotion", "Double 11 Festival", "Smile Angel Celebrity Festival" and "The 5th China Real Estate New Time Gala" which drove business development and strengthened our influence as an industry media.

樂居團隊並沒有因為當前的市場低迷和不確定性而氣餒，而是迎難而上。 2021年下半年，我們在天貓和樂居雙平台舉辦了一系列成功的行銷活動，包括「916大促」、「雙11」、「微笑天使名人節」和「第五屆中國房地產新《時代盛典》帶動了業務發展，增強了我們作為產業媒體的影響力。

In the second half of 2021, our parent company E-House deepened its strategic cooperation with Alibaba. E-House became the controlling shareholder of Tmall Haofang, and Tmall Haofang became the direct and controlling shareholder of Leju. Capitalizing on this opportunity, in 2022 Leju will accelerate the development and the integration of the two platforms, seize the opportunities presented by the digitization of the real estate industry and actively explore new business models and revenue growth areas while consolidating our online advertising and e-commerce services.

2021年下半年，母公司易居深化與阿里巴巴的策略合作。易居成為天貓好房控股股東，天貓好房成為樂居直接控股股東。以此為契機，2022年樂居將加速兩個平台的發展和融合，抓住房地產行業數位化帶來的機遇，在鞏固網路廣告和電商業務的同時，積極探索新的商業模式和收入成長領域。商務服務。

Amidst the new market situation, Leju will take a result-oriented approach, reinforce process management and further improve operational efficiency to achieve our goals as set at the beginning of this year.

面對新的市場情勢，樂居將堅持以成果為導向，強化流程管理，進一步提高營運效率，以實現年初確定的目標。

Now I'll turn the call to our Deputy CFO, Ms. Michelle Yuan, who will review our financial highlights for the second half and full year 2021.

現在我將把電話轉給我們的副財務長 Michelle Yuan 女士，她將回顧我們 2021 年下半年和全年的財務亮點。

Thank you He-zong. For the second half of 2021, we recorded total revenues of $233 million, a decrease of 47% from $439.8 million for the same period of 2020. Revenue from e-commerce services were $179.7 million, a decrease of 48% from $342.4 million for the same period of 2020, 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.

謝謝何總。 2021年下半年，我們的總收入為2.33億美元，比2020年同期的4.398億美元下降47%。電子商務服務收入為1.797億美元，比2020年同期的3.424億美元下降48%。與2020 年同期相比，主要是由於兌換的折扣券數量減少，但被兌換的每張折扣券平均價格的增加部分抵消。

Revenues from online advertising services were $53.2 million, a decrease of 45% from $96.9 million for the same period of 2020, primarily due to a decrease in [property] (corrected by the company after the call) developers' demand for online advertising. Revenues from listing services were $0.1 million, a decrease of 81% from $0.5 million for the same period of 2020, primarily due to a decrease in secondary real estate brokers' demand.

線上廣告服務收入為 5,320 萬美元，較 2020 年同期的 9,690 萬美元下降 45%，主要是由於開發商對線上廣告的需求減少（經公司電話會議後修正）。上市服務收入為 10 萬美元，比 2020 年同期的 50 萬美元下降 81%，主要是由於二級房地產經紀人的需求減少。

Cost of revenues was $24.1 million, a decrease of 26% from $32.6 million for the same period of 2020, primarily due to a decreased cost of advertising resources purchased from media platforms.

收入成本為2,410萬美元，較2020年同期的3,260萬美元下降26%，主要是因為從媒體平台購買廣告資源的成本下降。

SG&A expenses were $326.2 million, a decrease of 15% from $384.4 million for the same period of 2020, primarily due to a decreased marketing expenses related to the Company's e-commerce business, partially offset by increased bad debt provision. 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 some customers, whose credit quality has worsened.

SG&A 費用為 3.262 億美元，較 2020 年同期的 3.844 億美元下降 15%，主要是由於與公司電子商務業務相關的營銷費用減少，但部分被壞賬撥備增加所抵消。 2021年下半年提列的壞帳準備主要是由於公司未償還的部分客戶的網路廣告相關應收款項的預期信用損失確認了額外損失準備，而這些客戶的信用品質已經惡化。

Loss from operations was $116.9 million compared to income from operations of $23 million for the same period of 2020. Non-GAAP loss from operations was $111.2 million, compared to non-GAAP income from operations of $30 million for the same period of 2020.

營運虧損為 1.169 億美元，而 2020 年同期營運收入為 2,300 萬美元。非 GAAP 營運虧損為 1.112 億美元，而 2020 年同期非 GAAP 營運收入為 3,000 萬美元。

Net loss was $103 million, compared to net income of $19.1 million for the same period of 2020. Non-GAAP net loss was $98.6 million, compared to non-GAAP net income of $24.8 million for the same period of 2020.

淨虧損為 1.03 億美元，而 2020 年同期淨利為 1,910 萬美元。非 GAAP 淨虧損為 9,860 萬美元，而 2020 年同期非 GAAP 淨利潤為 2,480 萬美元。

Net loss attributable to Leju's shareholders was $103.2 million, or $0.75 loss per diluted ADS, compared to net income attributable to Leju's shareholders of $17.8 million, or $0.13 per diluted ADS, for the same period of 2020. Non-GAAP net loss attributable to Leju's shareholders was $98.7 million or $0.72 loss per diluted ADS, compared to non-GAAP net income attributable to Leju's shareholders of $23.5 million, or $0.17 per diluted ADS, for the same period of 2020.

樂居股東應佔淨虧損 1.032 億美元，或稀釋後美國存託憑證虧損 0.75 美元，而 2020 年同期樂居股東應佔淨利潤為 1780 萬美元，或稀釋後美國存託憑證虧損 0.13 美元。 2020 年同期，樂居股東應佔淨利為2,350 萬美元，即每稀釋後美國存託股虧損0.72 美元，即9,870 萬美元，即每稀釋後美國存託股虧損0.17 美元。

For the full year 2021, we recorded $534.1 million in total revenues, a decrease of 26% from $719.5 million for 2020. Revenues from e-commerce services were $411.1 million, a decrease of 25% from $547.9 million for 2020, primarily due to a decrease in the number of discount coupons redeemed.

2021 年全年，我們的總收入為 5.341 億美元，比 2020 年的 7.195 億美元下降 26%。電子商務服務收入為 4.111 億美元，比 2020 年的 5.479 億美元下降 25%，這主要是由於兌換折扣券數量減少。

Revenues from online advertising services were $122.5 million, a decrease of 28% from $170.8 million for 2020, primarily due to a decrease in property developers' demand for online advertising. Revenues from listing services were $0.5 million, a decrease of 41% from $0.8 million for 2020, primarily due to a decrease in secondary real estate brokers' demand.

線上廣告服務收入為 1.225 億美元，比 2020 年的 1.708 億美元下降 28%，主要是由於房地產開發商對線上廣告的需求減少。上市服務收入為 50 萬美元，比 2020 年的 80 萬美元下降 41%，主要是由於二級房地產經紀人的需求減少。

Cost of revenues was $55.8 million, a decrease of 24% from $73.8 million for 2020, primarily due to decreased cost of advertising resources purchased from media platforms.

收入成本為 5,580 萬美元，比 2020 年的 7,380 萬美元下降 24%，主要是由於從媒體平台購買廣告資源的成本下降。

SG&A expenses were $645.6 million, an increase of 4% from $622 million for 2020, primarily due to bad debt provision which increased by $106.4 million compared to 2020, partially offset by 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 some customers, whose credit quality has worsened.

SG&A 費用為 6.456 億美元，比 2020 年的 6.22 億美元增長 4%，主要是由於壞帳撥備比 2020 年增加了 1.064 億美元，部分被與公司電子商務業務相關的營銷費用減少所抵消。 2021年提列壞帳準備主要是由於本公司未償還的部分客戶的網路廣告相關應收款項的預期信用損失確認了額外損失準備，而這些客戶的信用品質已經惡化。

Loss from operations was $166.7 million, compared to income from operations of $24.1 million for 2020. Non-GAAP loss from operations was $154.5 million, compared to non-GAAP net income of $38.3 million for 2020. Net loss was $149.9 million, compared to net income of $21 million for 2020. Non-GAAP net loss was $140.3 million, compared to non-GAAP net income of $32.4 million for 2020.

營運虧損為1.667 億美元，而2020 年營運收入為2,410 萬美元。非GAAP 營運虧損為1.545 億美元，而2020 年非GAAP 淨利為3,830 萬美元。淨虧損為1.499 億美元，而2020 年淨虧損為1.499 億美元。2020 年營收為 2,100 萬美元。非 GAAP 淨虧損為 1.403 億美元，而 2020 年非 GAAP 淨收入為 3,240 萬美元。

Net loss attributable to Leju's shareholders was $150.9 million or $1.10 loss per diluted ADS, compared to net income attributable to Leju's shareholders of $19.3 million, or $0.14 per diluted ADS for 2020. Non-GAAP net loss attributable to Leju's shareholders was $141.4 million, or $1.03 loss per diluted ADS, compared to non-GAAP net income attributable to Leju's shareholders of $30.7 million, or $0.22 per diluted ADS for 2020.

樂居股東應佔淨虧損為1.509 億美元，或每攤薄美國存託股虧損1.10 美元，而2020 年樂居股東應佔淨利潤為1,930 萬美元，或每攤薄美國存託股票虧損0.14 美元。非公認會計原則歸屬樂居股東淨虧損為1.414 億美元，或每稀釋美國存託股票虧損1.10 美元。每稀釋後美國存託股虧損1.03 美元，而以非公認會計準則計算，樂居股東應佔淨利潤為3,070 萬美元，即2020 年每稀釋後美國存託股虧損0.22 美元。

As of December 31, 2021, the Company's cash and cash equivalents and restricted cash were $252.4 million. Second half 2021 net cash used in operating activities was $78.7 million, primarily comprised of non-GAAP net loss of $98.6 million, a decrease in other current liabilities and accrued expenses of $42 million, and an increase in deferred tax assets of $9.6 million, partially offset by provision for allowance for doubtful accounts of $59.6 million, and a decrease in accounts receivable of $15.4 million.

截至2021年12月31日，公司的現金和現金等價物以及限制性現金為2.524億美元。 2021 年下半年營運活動使用的現金淨額為 7,870 萬美元，主要包括非 GAAP 淨虧損 9,860 萬美元、其他流動負債和應計費用減少 4,200 萬美元以及遞延稅資產增加 960 萬美元，部分包括被呆帳準備金5,960 萬美元和應收帳款減少1,540 萬美元所抵銷。

This concludes our prepared remarks. We are now ready to take your questions. Operator, please go ahead.

我們準備好的演講到此結束。我們現在準備好回答您的問題。接線員，請繼續。

(Operator Instructions) There seems to be no questions at this time. I would like to hand the conference back to the speakers.

（操作員說明） 目前似乎沒有任何問題。我想將會議交還給發言人。

This concludes today's call. If you have any follow up questions, please contact us at the numbers or emails provided on our earnings release and on our website. Thank you.

今天的電話會議到此結束。如果您有任何後續問題，請透過我們的收益發布和網站上提供的電話號碼或電子郵件與我們聯絡。謝謝。

That does conclude our conference for today. Thank you for participating. You may all disconnect.

我們今天的會議到此結束。感謝您的參與。你們都可以斷開連線。