Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Document and Entity Information | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2022 |
Entity File Number | 001-36396 |
Entity Registrant Name | Leju Holdings Ltd |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | Level G, Building G, No.8 Dongfeng South Road |
Entity Address, Address Line Two | Chaoyang District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100016 |
Entity Address, Country | CN |
Entity Common Stock, Shares Outstanding | 137,172,601 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | No |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Central Index Key | 0001596856 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Auditor Name | Yu Certified Public Accountant, P.C. |
Auditor Firm ID | 5910 |
Auditor Location | New York |
ADSs | |
Document and Entity Information | |
Title of 12(b) Security | American Depositary Shares, each representing ten ordinary shares, par value $0.001 per share |
Trading Symbol | LEJU |
Security Exchange Name | NYSE |
Ordinary Shares | |
Document and Entity Information | |
Title of 12(b) Security | Ordinary shares, par value $0.001 per share |
Security Exchange Name | NYSE |
No Trading Symbol Flag | true |
Business Contact [Member] | |
Document and Entity Information | |
Entity Registrant Name | Leju Holdings Ltd |
Entity Address, Address Line One | Level G, Building G, No.8 Dongfeng South Road |
Entity Address, Address Line Two | Chaoyang District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100016 |
Entity Address, Country | CN |
Contact Personnel Name | Li Yuan |
City Area Code | 86 |
Local Phone Number | 21 6133 0754 |
Contact Personnel Email Address | michelleyuan@leju.com |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 123,378,034 | $ 250,313,799 |
Restricted cash | 4,270,695 | 2,082,103 |
Accounts receivable, net of allowance of $115,290,953 and $111,848,582 as of December 31, 2021 and 2022, respectively | 3,407,877 | 36,071,056 |
Contract assets, net of allowance of $83,678 and nil as of December 31, 2021 and 2022, respectively | 0 | 1,415,241 |
Marketable securities | 1,185,513 | |
Customer deposits, net of allowance of $10,259,195 and $3,878,996 as of December 31, 2021 and 2022, respectively | 3,860,127 | 783,995 |
Prepaid expenses and other current assets | 6,110,770 | 25,110,040 |
Amounts due from related parties | 2,475,800 | 3,913,385 |
Total current assets | 143,503,303 | 320,875,132 |
Property and equipment, net | 14,204,363 | 16,667,281 |
Intangible assets, net | 12,458,175 | 23,297,758 |
Right-of-use assets | 18,943,473 | 23,409,149 |
Investment in affiliates | 17,942 | |
Deferred tax assets, net | 25,457,487 | 51,605,404 |
Other non-current assets | 1,544,658 | 1,375,104 |
TOTAL ASSETS | 216,111,459 | 437,247,770 |
Current liabilities: | ||
Shortterm borrowings (including short-term borrowings of the consolidated VIEs without recourse to Leju of nil and nil as of December 31, 2021 and 2022, respectively) | 717,915 | 784,230 |
Accounts payable (including accounts payable of the consolidated VIEs without recourse to Leju of $1,631,401 and $653,700 as of December 31, 2021 and 2022, respectively) | 653,700 | 1,631,401 |
Accrued payroll and welfare expenses (including accrued payroll and welfare expenses of the consolidated VIEs without recourse to Leju of $19,962,938 and $10,717,186 as of December 31, 2021 and 2022, respectively) | 12,728,091 | 21,516,888 |
Income tax payable (including income tax payable of the consolidated VIEs without recourse to Leju of $31,400,562 and nil as of December 31, 2021 and 2022, respectively) | 25,202,771 | 60,951,790 |
Other tax payable (including other tax payable of the consolidated VIEs without recourse to Leju of $16,992,077 and $8,684,712 as of December 31, 2021 and 2022, respectively) | 9,695,893 | 18,046,289 |
Amounts due to related parties (including amounts due to related parties of the consolidated VIEs without recourse to Leju of $2,693,624 and $668,153 as of December 31, 2021 and 2022, respectively) | 4,804,591 | 7,631,923 |
Advances from customers (including advance from customers of the consolidated VIEs without recourse to Leju of $82,626,840 and $43,096,996 as of December 31, 2021 and 2022, respectively) | 43,100,136 | 82,787,409 |
Lease liabilities, current (including lease liabilities, current of the consolidated VIEs without recourse to Leju of $5,556,351 and $5,013,721 as of December 31, 2021 and 2022, respectively) | 5,037,796 | 5,581,648 |
Accrued marketing and advertising expenses (including accrued marketing and advertising expenses of the consolidated VIEs without recourse to Leju of $42,180,152 and $29,533,704 as of December 31, 2021 and 2022, respectively) | 29,988,108 | 43,272,270 |
Other current liabilities (including other current liabilities of the consolidated VIEs without recourse to Leju of $16,383,879 and $10,317,192 as of December 31, 2021 and 2022, respectively) | 12,264,895 | 18,504,471 |
Total current liabilities | 144,193,896 | 260,708,319 |
Deferred tax liabilities (including deferred tax liabilities of the consolidated VIEs without recourse to Leju of $314,763 and $435,848 as of December 31, 2021 and 2022, respectively) | 3,517,837 | 6,042,540 |
Lease liabilities, non-current (including lease liabilities, non-current of the consolidated VIEs without recourse to Leju of $19,437,887 and $15,400,328 as of December 31, 2021 and 2022, respectively) | 15,439,595 | 19,437,887 |
Total liabilities | 163,151,328 | 286,188,746 |
Commitments and contingencies (Note 14) | ||
Shareholders' Equity: | ||
Ordinary shares ($0.001 par value): 1,000,000,000 shares authorized, 136,822,601 and 137,172,601 shares issued and outstanding, as of December 31, 2021 and 2022, respectively | 137,173 | 136,823 |
Additional paid-in capital | 803,300,763 | 801,476,746 |
Accumulated deficit | (738,602,296) | (648,934,102) |
Accumulated other comprehensive loss | (11,601,054) | (1,424,302) |
Total Leju Holdings Limited Shareholders' Equity | 53,234,586 | 151,255,165 |
Non-controlling interests | (274,455) | (196,141) |
Total equity | 52,960,131 | 151,059,024 |
TOTAL LIABILITIES AND EQUITY | $ 216,111,459 | $ 437,247,770 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Shortterm borrowings | $ 717,915 | $ 784,230 |
Accounts receivable, allowance for doubtful accounts | 111,848,582 | 115,290,953 |
Contract assets, allowance for doubtful accounts | 0 | 83,678 |
Customer deposits, accumulated allowance | 3,878,996 | 10,259,195 |
Accounts payable | 653,700 | 1,631,401 |
Accrued payroll and welfare expenses | 12,728,091 | 21,516,888 |
Income tax payable | 25,202,771 | 60,951,790 |
Other tax payable | 9,695,893 | 18,046,289 |
Amounts due to related parties | 4,804,591 | 7,631,923 |
Advances from customers | 43,100,136 | 82,787,409 |
Lease liabilities, current | 5,037,796 | 5,581,648 |
Accrued marketing and advertising expenses | 29,988,108 | 43,272,270 |
Other current liabilities | 12,264,895 | 18,504,471 |
Deferred tax liabilities | 3,517,837 | 6,042,540 |
Lease liabilities, non-current | $ 15,439,595 | $ 19,437,887 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 137,172,601 | 136,822,601 |
Common stock, shares outstanding | 137,172,601 | 136,822,601 |
Consolidated VIEs without recourse | ||
Shortterm borrowings | $ 0 | $ 0 |
Accounts payable | 653,700 | 1,631,401 |
Accrued payroll and welfare expenses | 10,717,186 | 19,962,938 |
Income tax payable | 0 | 31,400,562 |
Other tax payable | 8,684,712 | 16,992,077 |
Amounts due to related parties | 668,153 | 2,693,624 |
Advances from customers | 43,096,996 | 82,626,840 |
Lease liabilities, current | 5,013,721 | 5,556,351 |
Accrued marketing and advertising expenses | 29,533,704 | 42,180,152 |
Other current liabilities | 10,317,192 | 16,383,879 |
Deferred tax liabilities | 435,848 | 314,763 |
Lease liabilities, non-current | $ 15,400,328 | $ 19,437,887 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | |||
Total net revenues | $ 343,182,184 | $ 534,116,970 | $ 719,525,983 |
Cost of revenues | (30,603,426) | (55,800,726) | (73,762,283) |
Selling, general and administrative expenses | (418,501,176) | (645,623,660) | (622,026,035) |
Other operating income, net | 297,663 | 560,394 | 380,849 |
Income (loss) from operations | (105,624,755) | (166,747,022) | 24,118,514 |
Interest income,net | 2,334,540 | 3,130,211 | 7,268,530 |
Other income, net | 1,496,392 | 208,875 | 300,056 |
Income (loss) before taxes and loss from equity in affiliates | (101,793,823) | (163,407,936) | 31,687,100 |
Income tax benefits (expenses) | 12,120,235 | 13,497,784 | (10,665,022) |
Income (loss) before loss from equity in affiliates | (89,673,588) | (149,910,152) | 21,022,078 |
Loss from equity in affiliates, net of tax of nil | (17,089) | (13,871) | (23,859) |
Net income (loss) | (89,690,677) | (149,924,023) | 20,998,219 |
Less: Net income (loss) attributable to non-controlling interests | (22,483) | 1,009,512 | 1,695,981 |
Net income (loss) attributable to Leju Holdings Limited shareholders | $ (89,668,194) | $ (150,933,535) | $ 19,302,238 |
Income (loss) per ADS1: | |||
Basic (in dollars per ADS) | $ (6.54) | $ (11.05) | $ 1.42 |
Diluted (in dollars per ADS) | $ (6.54) | $ (11.05) | $ 1.40 |
Shares used in computation of income (loss) per share | |||
Basic (in ADS) | 13,704,238 | 13,665,216 | 13,607,079 |
Diluted (in ADS) | 13,704,238 | 13,665,216 | 13,756,457 |
E-commerce | |||
Revenues | |||
Total net revenues | $ 278,463,695 | $ 411,097,123 | $ 547,895,262 |
Online advertising | |||
Revenues | |||
Total net revenues | 64,707,215 | 122,522,232 | 170,782,688 |
Listing | |||
Revenues | |||
Total net revenues | $ 11,274 | $ 497,615 | $ 848,033 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) | May 10, 2022 shares |
CONSOLIDATED STATEMENTS OF OPERATIONS | |
Number of American depositary share ("ADS") representing ordinary share ("Share") | 10 |
STATEMENTS OF COMPREHENSIVE INC
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
Net income (loss) | $ (89,690,677) | $ (149,924,023) | $ 20,998,219 |
Other comprehensive income (loss), net of tax of nil: | |||
Foreign currency translation adjustments | (10,232,583) | 4,282,498 | 17,938,007 |
Comprehensive income (loss) | (99,923,260) | (145,641,525) | 38,936,226 |
Less: Comprehensive income attributable to non-controlling interests | (78,314) | 1,021,108 | 1,703,442 |
Comprehensive income (loss) attributable to Leju Holdings Limited shareholders | $ (99,844,946) | $ (146,662,633) | $ 37,232,784 |
STATEMENTS OF COMPREHENSIVE I_2
STATEMENTS OF COMPREHENSIVE INCOME (LOSS)(Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
Other comprehensive income (loss), tax | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) | Total Leju Equity | Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (loss) | Subscription Receivable | Non-controlling Interest | Total |
Balance at Dec. 31, 2019 | $ 255,400,598 | $ 135,813 | $ 796,191,796 | $ (517,302,805) | $ (23,624,206) | $ (3,041,481) | $ 252,359,117 | |
Balance (in shares) at Dec. 31, 2019 | 135,812,719 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income (loss) | 19,302,238 | 19,302,238 | 1,695,981 | 20,998,219 | ||||
Share-based compensation | 2,978,026 | 2,978,026 | 2,978,026 | |||||
Vesting of restricted shares | $ 83 | (83) | ||||||
Vesting of restricted shares ( in shares) | 83,333 | |||||||
Exercise of share options | 561,448 | $ 430 | 611,304 | $ (50,286) | 561,448 | |||
Exercise of share options ( in shares) | 429,968 | |||||||
Acquisition of non-controlling interest | (245,980) | (244,436) | (1,544) | 196,123 | (49,857) | |||
Foreign currency translation adjustments | 17,930,546 | 17,930,546 | 7,461 | 17,938,007 | ||||
Balance at Dec. 31, 2020 | 295,926,876 | $ 136,326 | 799,536,607 | (498,000,567) | (5,695,204) | (50,286) | (1,141,916) | 294,784,960 |
Balance (in shares) at Dec. 31, 2020 | 136,326,020 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income (loss) | (150,933,535) | (150,933,535) | 1,009,512 | (149,924,023) | ||||
Share-based compensation | 1,657,278 | 1,657,278 | 1,657,278 | |||||
Vesting of restricted shares | $ 350 | (350) | ||||||
Vesting of restricted shares ( in shares) | 349,999 | |||||||
Exercise of share options | 258,311 | $ 147 | 207,878 | $ 50,286 | 258,311 | |||
Exercise of share options ( in shares) | 146,582 | |||||||
Disposal of non-controlling interest | 75,333 | 75,333 | (75,333) | |||||
Foreign currency translation adjustments | 4,270,902 | 4,270,902 | 11,596 | 4,282,498 | ||||
Balance at Dec. 31, 2021 | 151,255,165 | $ 136,823 | 801,476,746 | (648,934,102) | (1,424,302) | (196,141) | $ 151,059,024 | |
Balance (in shares) at Dec. 31, 2021 | 136,822,601 | 136,822,601 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income (loss) | (89,668,194) | (89,668,194) | (22,483) | $ (89,690,677) | ||||
Share-based compensation | 1,824,367 | 1,824,367 | 1,824,367 | |||||
Vesting of restricted shares | $ 350 | (350) | ||||||
Vesting of restricted shares ( in shares) | 350,000 | |||||||
Foreign currency translation adjustments | (10,176,752) | (10,176,752) | (55,831) | (10,232,583) | ||||
Balance at Dec. 31, 2022 | $ 53,234,586 | $ 137,173 | $ 803,300,763 | $ (738,602,296) | $ (11,601,054) | $ (274,455) | $ 52,960,131 | |
Balance (in shares) at Dec. 31, 2022 | 137,172,601 | 137,172,601 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities: | |||
Net income (loss) | $ (89,690,677) | $ (149,924,023) | $ 20,998,219 |
Adjustments to reconcile net income (loss) to net cash provided by/(used in) operating activities: | |||
Depreciation and amortization | 12,582,314 | 13,369,416 | 14,338,529 |
Loss from equity in affiliates | 17,089 | 13,871 | 23,859 |
Allowance for credit losses | 13,743,558 | 111,267,396 | 4,877,117 |
Share-based compensation | 1,824,367 | 1,657,278 | 2,978,026 |
Unrealized loss (gain) on marketable securities | 1,722,700 | (850,402) | |
Non-cash lease expenses | 4,519,231 | 4,860,980 | 4,471,324 |
Interest expenses | 51,972 | 9,147 | |
Others | 29,844 | 68,880 | 688,707 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 24,213,386 | 61,918,496 | (65,126,276) |
Contract assets | 1,603,704 | 458,775 | (1,074,573) |
Customer deposits | (6,614,821) | 469,505 | 44,750,151 |
Amounts due from related parties | 1,437,931 | 5,165,007 | 593,523 |
Marketable securities | 1,185,893 | 1,369,581 | |
Right-of-use assets | (53,555) | (2,604,610) | (3,360,748) |
Prepaid expenses and other current assets | 19,816,231 | (17,241,261) | 211,913 |
Other non-current assets | (258,462) | 64,497 | 30,398 |
Accounts payable | (909,353) | (1,228,688) | 1,285,916 |
Accrued payroll and welfare expenses | (8,174,397) | (7,872,273) | (3,632,710) |
Income tax payable | (33,249,906) | (2,134,475) | 6,228,894 |
Other tax payable | (7,783,636) | (3,271,899) | 1,035,107 |
Amounts due to related parties | (2,827,332) | 526,038 | 2,699,108 |
Lease liabilities, current | (543,852) | 120,414 | 271,983 |
Other current liabilities and accrued expenses | (55,071,737) | (44,291,642) | 70,262,381 |
Deferred tax assets | 22,666,371 | (9,569,781) | 11,132,101 |
Deferred tax liabilities | (2,491,596) | (2,522,902) | (3,198,793) |
Lease liabilities, non-current | (3,998,292) | (2,289,230) | (1,139,046) |
Net cash provided by/(used in) operating activities | (107,975,725) | (39,888,803) | 108,494,708 |
Investing activities: | |||
Deposits for and purchases of property and equipment and intangible assets | (139,795) | (1,115,482) | (1,553,067) |
Proceeds from disposal of property and equipment | 146,147 | 797,174 | 1,654,838 |
Net cash provided by/(used in) investing activities | 6,352 | (318,308) | 101,771 |
Financing activities: | |||
Proceeds from exercise of options | 258,311 | 561,448 | |
Proceeds from short-term borrowings | 746,990 | 784,230 | |
Repayment for short-term borrowings | (746,990) | ||
Payment for interests of short-term borrowings | (51,972) | (9,147) | |
Prepayment and payment for acquisition of non-controlling interest of subsidiary | (21,188) | ||
Net cash provided by/(used in) financing activities | (51,972) | 1,033,394 | 540,260 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (16,725,828) | 5,862,923 | 17,557,865 |
Net increase/(decrease) in cash, cash equivalents and restricted cash | (124,747,173) | (33,310,794) | 126,694,604 |
Cash, cash equivalents and restricted cash at the beginning of the year | 252,395,902 | 285,706,696 | 159,012,092 |
Cash, cash equivalents and restricted cash at the end of the year | 127,648,729 | 252,395,902 | 285,706,696 |
Supplemental disclosure of cash flow information: | |||
Income taxes paid/(refund) | 141,144 | 1,358,100 | (52,961) |
Interest expenses paid | 51,972 | 9,147 | |
Non-cash information on lease liabilities arising from obtaining right-of-use assets | 2,783,430 | 2,064,279 | 1,967,269 |
Non-cash investing and financing activities: | |||
Additional paid in capital increased/(decreased) in connection with business disposal | 75,333 | ||
Non-controlling interest recognized in connection with business disposal | (75,333) | ||
Reconciliation to amounts on consolidated balance sheets: | |||
Cash and cash equivalents | 123,378,034 | 250,313,799 | 284,489,282 |
Restricted cash | 4,270,695 | 2,082,103 | 1,217,414 |
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ 127,648,729 | $ 252,395,902 | $ 285,706,696 |
Organization and Principal Acti
Organization and Principal Activities | 12 Months Ended |
Dec. 31, 2022 | |
Organization and Principal Activities | |
Organization and Principal Activities | 1. Organization and Principal Activities Leju Holdings Limited (the “Company” or “Leju”) was incorporated on November 20, 2013 in the Cayman Islands as an exempted company with limited liability under the Companies Law of the Cayman Islands. The Company, through its subsidiaries and consolidated variable interest entities (“VIEs”), is principally engaged in providing online advertising, e-commerce services and listing services for the real estate and home furnishing industries in the People’s Republic of China (“PRC”). The Company, its subsidiaries and consolidated VIEs are collectively referred to as the “Group”. E-House (China) Holdings Limited (“E-House Holdings”) was the Company’s parent company from its incorporation to December 30, 2016. E-House Holdings, its subsidiaries and VIEs, excluding the Group, are collectively referred to as “E-House”. On December 30, 2016, E-House Holdings repurchased all its ordinary shares held by SINA Corporation (“SINA”) for a total consideration consisting of 40,651,187 ordinary shares of Leju and of $129,038,150 in cash. As a result of this transaction, E-House Holdings ceased to be Leju’s controlling shareholder but remains as the largest shareholder and SINA became a principal shareholder of Leju from December 30, 2016. E-House Holdings was ultimately controlled by Mr. Xin Zhou. On November 4, 2020, E-House (China) Enterprise Holdings Limited (“E-House Enterprise”) purchased (i) 51,925,996 ordinary shares of Leju from Mr. Xin Zhou and certain of his affiliated entities (the “Zhou Parties”) and (ii) 24,475,251 ordinary shares of Leju from the SINA. Upon completion of these transactions, E-House Enterprise acquired the beneficial ownership of 76,401,247 ordinary shares of Leju, and Leju became a subsidiary of E-House Enterprise. SINA remains to be a principal shareholder of Leju. On November 24, 2021, TM Home Limited (“TM Home”), a company incorporated in the Cayman Islands with limited liability and owned as to 70.23% and 29.77% by E-House Enterprise and Alibaba Investment Limited, respectively, completed the acquisition of the 76,401,247 ordinary shares of Leju from E-House Enterprise. Upon completion of these transactions, Leju has become a subsidiary of TM Home, which was also controlled by E-house Enterprise since then. SINA remained to be a principal shareholder of Leju. The following table lists major subsidiaries and the consolidated VIEs of the Company as of December 31, 2022: Date of Place of Percentage of Incorporation Incorporation Ownership Shanghai SINA Leju Information Technology Co., Ltd (“Shanghai SINA Leju”) 08-May-08 PRC 100 % E-House City Re-House Real Estate Agency (Shanghai) Co., Ltd (“City Re-House”) 04-Mar-10 PRC 100 % Shanghai Yi Yue Information Technology Co., Ltd (“Shanghai Yi Yue”) 16-Sep-11 PRC 100 % Beijing Maiteng Fengshun Science and Technology Co., Ltd (“Beijing Maiteng”) 04-Jan-12 PRC 84 % Beijing Yisheng Leju Information Services Co., Ltd. (“Beijing Leju”) 13-Feb-08 PRC VIE Shanghai Leju Hao Fang Information Service Co., Ltd. (“Leju Hao Fang”) (formerly known as Shanghai Yi Xin E-Commerce Co., Ltd.) 05-Dec-11 PRC VIE Beijing Jiajujiu E-Commerce Co., Ltd. (“Beijing Jiajujiu”) 22-Mar-12 PRC VIE |
Summary of Principal Accounting
Summary of Principal Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Principal Accounting Policies | |
Summary of Principal Accounting Policies | 2. Summary of Principal Accounting Policies (a) Basis of presentation The consolidated financial statements are prepared and presented in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). (b) Impact of COVID-19 Starting from early 2020, in response to intensifying efforts to contain the spread of COVID-19, the Chinese government took a number of actions, which included extending the Chinese New Year holiday, quarantining individuals infected with or suspected of having COVID-19, restricting residents from travel, encouraging employees of enterprises to work remotely from home and cancelling public activities, among others. The pandemic resulted in a significant reduction in real estate transaction volumes as many of the Group’s developer clients had to close their project sales centers and show rooms for an extended period, adversely affecting the Group’s e-commerce services. In 2022, there have been outbreaks of COVID-19 cases from time to time, including the COVID-19 Delta and Omicron variant cases, in multiple cities in China. The Group’s revenues declined compared to the prior period mainly due to weakness in demand as the customers in real estate industries are negatively impacted by COVID-19. The Group’s revenues declined compared to the prior period mainly due to weakness in demand as the customers in real estate industries are negatively impacted by COVID-19 for the year of 2022. (c) Basis of consolidation The consolidated financial statements include the financial statements of Leju, its majority owned subsidiaries and its VIEs, Beijing Leju, Leju Hao Fang and Beijing Jiajujiu. All inter-company transactions and balances have been eliminated in consolidation. The Group evaluates each of its interests in private companies to determine whether or not the investee is a VIE and, if so, whether the Group is the primary beneficiary of such VIE. In determining whether the Group is the primary beneficiary, the Group considers if the Group (1) has power to direct the activities that most significantly affects the economic performance of the VIE, and (2) receives the economic benefits of the VIE that could be significant to the VIE. If deemed the primary beneficiary, the Group consolidates the VIE. VIE arrangements PRC regulations currently prohibit or restrict foreign ownership of companies that provide internet content and advertising services. To comply with these regulations, the Group provides such activities through its VIEs and their subsidiaries. To provide the Group effective control over and the ability to receive substantially all of the economic benefits of its VIEs and their subsidiaries, certain of the Company’s subsidiaries, Shanghai SINA Leju, Shanghai Yi Yue and Beijing Maiteng (collectively, the “Foreign Owned Subsidiaries”) entered into a series of contractual arrangements with Beijing Leju, Leju Hao Fang and Beijing Jiajujiu (collectively the “VIEs”) and their respective shareholders, respectively, as summarized below: Foreign Owned Name of Foreign Subsidiaries’ Owned Economic Ownership Subsidiaries of VIES Name of VIEs Activities of VIEs Shanghai SINA Leju 100 % Beijing Leju Operate the online advertising and listing business Shanghai Yi Yue 100 % Leju Hao Fang Operate the e-commerce business Beijing Maiteng 100 % Beijing Jiajujiu Operate the online home furnishing business The VIEs hold the requisite licenses and permits necessary to conduct internet content and advertising services activities from which foreign ownership of companies are prohibited or restricted. In addition, the VIEs hold leases and other assets necessary to operate such business and generate a majority of the Group’s revenues. Agreements that Transfer Economic Benefits of the VIEs to the Group Exclusive Consulting and Technical Support Agreement. Agreements that Provide Effective Control over VIEs Exclusive Call Option Agreement. Loan Agreement. Shareholder Voting Right Proxy Agreement. Each shareholder voting right proxy agreement has a term of twenty years, unless it is early terminated by all parties in writing or pursuant to provision of this agreement. The term of the agreement will be automatically extended for one year upon the expiration, if the Foreign Owned Subsidiary gives the other parties written notice requiring the extension at least 30 days prior to expiration and the same mechanism will apply subsequently upon the expiration of each extended term. Equity Pledge Agreement. Risks in relation to the VIE structure The Company believes that the Foreign Owned Subsidiaries’ contractual arrangements with the VIEs are in compliance with PRC law and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements and the interests of the shareholders of the VIEs may diverge from that of the Company and that may potentially increase the risk that they would seek to act contrary to the contractual terms, for example by influencing the VIEs not to pay the service fees when required to do so. The Company’s ability to control the VIEs also depends on the power of attorney, the Foreign Owned Subsidiaries have to vote on all matters requiring shareholder approval in the VIEs. As noted above, the Company believes this power of attorney is legally enforceable but may not be as effective as direct equity ownership. In addition, if the legal structure and contractual arrangements were found to be in violation of any existing PRC laws and regulations, the Company may be subject to fines or other actions. The Company does not believe such actions would result in the liquidation or dissolution of the Company, the Foreign Owned Subsidiaries or the VIEs. The Company, through its subsidiaries and through the contractual arrangements, has (1) the power to direct the activities of the VIEs that most significantly affect the entity’s economic performance and (2) the right to receive benefits from the VIEs. Accordingly, the Company is the primary beneficiary of the VIEs and has consolidated the financial results of the VIEs. The following financial statement amounts and balances of the Group’s VIEs were included in the accompanying consolidated financial statements, after elimination of inter-company balances and transactions: As of December 31, 2021 2022 $ $ Cash and cash equivalents 199,808,985 90,795,643 Restricted cash 1,953,803 4,270,695 Accounts receivable, net 34,485,667 2,627,814 Contract assets, net 1,415,241 — Customer deposits, net 783,995 3,860,127 Amounts due from related parties, net 3,834,986 2,289,594 Other current assets, net 23,934,283 4,007,633 Total current assets 266,216,960 107,851,506 Total non-current assets 63,522,807 47,690,614 Total assets 329,739,767 155,542,120 Accounts payable 1,631,401 653,700 Accrued payroll and welfare expenses 19,962,938 10,717,186 Income tax payable 31,400,562 — Other tax payable 16,992,077 8,684,712 Amounts due to related parties 2,693,624 668,153 Advances from customers 82,626,840 43,096,996 Lease liabilities, current 5,556,351 5,013,721 Accrued marketing and advertising expenses 42,180,152 29,533,704 Other current liabilities 16,383,879 10,317,192 Total current liabilities 219,427,824 108,685,364 Deferred tax liabilities 314,763 435,848 Lease liabilities, non-current 19,437,887 15,400,328 Total liabilities 239,180,474 124,521,540 Year Ended December 31, 2020 2021 2022 $ $ $ Total revenues 718,861,490 533,619,355 343,170,910 Cost of revenues (65,612,576) (47,730,331) (24,394,266) Net income (loss) 14,278,316 (81,530,172) (10,882,414) Net cash provided by/ (used in) operating activities 100,460,964 (41,427,975) (93,191,543) Net cash provided by/ (used in) investing activities (1,068,664) 431,057 (73,872) Net cash provided by/ (used in) financing activities — — — There are no consolidated VIEs’ assets that are collateral for the VIEs’ obligations or are restricted solely to settle the VIEs’ obligations. The Company has not provided any financial support that it was not previously contractually required to provide to the VIEs. (d) Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from such estimates. Significant accounting estimates reflected in the Group’s financial statements include (i) revenue recognition, (ii) provision for credit losses of accounts receivable and contract assets, customer deposits, other receivables recorded in prepayments and other current assets and amounts due from related parties, (iii) assessment for impairment of long-lived assets, intangible assets and goodwill, (iv) fair value of financial instruments, (v) valuation and recognition of share-based compensation expenses, (vi) useful lives of property and equipment and intangible assets, (vii) and provision for income tax and valuation allowance for deferred tax assets. (e) Fair value of financial instruments The Group records its financial assets and liabilities at fair value on a recurring basis. Fair value reflects the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. The Group applies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. There are three levels of inputs that may be used to measure fair value: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Assets measured at fair value on a recurring basis are comprised of marketable securities. The Group uses quoted price in active markets (Level 1) to determine the fair value of marketable securities. There are no assets or liabilities measured at fair value on a nonrecurring basis in 2020, 2021 and 2022. For cash and cash equivalents, restricted cash, accounts receivable, contract assets, customer deposits, other receivables, accounts payable, other payables, and amounts due from/to related parties, the carrying value approximates its fair value due to its short-term nature. (f) Business combinations Business combinations are recorded using the purchase method of accounting and, accordingly, the acquired assets and liabilities are recorded at their fair market value at the date of acquisition. Any excess of acquisition cost over the fair value of the acquired assets and liabilities, including identifiable intangible assets, is recorded as goodwill. (g) Cash and cash equivalents Cash and cash equivalents consist of cash on hand and demand deposits, which are unrestricted as to withdrawal and use, and which have original maturities of three months or less. (h) Restricted cash Any cash that is legally restricted from use is classified as restricted cash. As of December 31, 2021 and 2022, the restricted cash balances represent (i) $1,708,478 and $130,745, which related to collection and payment as a service for real estate developers. The withdrawal of the cash in bank is required to be pre-approved by real estate developers. (ii) $373,625 and $4,139,950, which was the full dispute amount and maximum damages of certain law suits, was frozen by the courts for law suits related and accounted for as restricted bank balances (i) Marketable securities Marketable securities include securities that are classified as trading securities. Trading securities represent equity securities that are bought and held principally for the purpose of selling them in the near term, and they are reported at fair value, with both unrealized and realized gains and losses reported as other income (loss). The fair value of marketable securities is based upon the quoted price in an active market for identical instruments (Level 1). (j) Customer deposits The Group provides online real estate e-commerce services for its developer customers. Some real estate developers require the Group to pay an upfront and refundable deposit to obtain the exclusive right to provide e-commerce services for a real estate development project. These deposits are refunded to the Group subject to certain pre-determined criteria specified in the deposit agreement. Customer deposits are recorded as either current or non-current assets based on the Group’s estimate of the date of refund. As of December 31, 2021 and 2022, the Group recognized $10,259,195 and $3,878,996 for expected credit loss against customer deposits which is mainly attributable to overdue customer deposits of $10,258,960 and $3,158,826. (k) Investment in affiliates Affiliated companies are entities over which the Group has significant influence, but which it does not control. The Group generally considers an ownership interest of 20% in common stock or higher to represent a presumption that they are able to exert significant influence. Investments in affiliates are accounted for by the equity method of accounting. Under this method, the Group’s share of the post-acquisition profits or losses of affiliated companies is recognized in the income statement and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. Unrealized gains on transactions between the Group and its affiliated companies are eliminated to the extent of the Group’s interest in the affiliated companies; unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. When the Group’s share of losses in an affiliated company equals or exceeds its interest in the affiliated company, the Group does not recognize further losses, unless the Group has incurred obligations or made payments on behalf of the affiliated company. The Group is required to perform an impairment assessment of its investments whenever events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable. An impairment loss is recorded when there has been a loss in value of the investment that is other than temporary. As of December 31, 2020 and 2021, the Group determined that no such events were presented. The Group did not record any impairment losses in any of the periods reported. (l) Leases On January 1, 2019, the Group adopted ASU No. 2016-02, Leases (Topic 842), as amended, which supersedes the lease accounting guidance under Topic 840, and generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. The Group elected to apply practical expedients permitted under the transition method that allow the Group to use the beginning of the period of adoption as the date of initial application, to not recognize lease assets and lease liabilities for leases with a term of twelve months or less, to not separate non-lease components from lease components, and to not reassess lease classification, treatment of initial direct costs, or whether an existing or expired contract contains a lease. The Group used modified retrospective method and did not adjust the prior comparative periods. Under the new lease standard, the Group determines if an arrangement is or contains a lease at inception. Right-of-use assets and liabilities are recognized at lease commencement date based on the present value of remaining lease payments over the lease terms. The Group considers only payments that are fixed and determinable at the time of lease commencement. ASC 842 requires a lessee to discount its unpaid lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate. As most of the Group’s leases do not provide an implicit rate, the Group uses its incremental borrowing rate as the discount rate for the lease. The Group’s incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. The Group’s lease terms may include options to extend or terminate the lease. Renewal options are considered within the right-of-use assets and lease liability when it is reasonably certain that the Group will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. (m) Property and equipment, net Property and equipment is recorded at cost less accumulated depreciation. Depreciation is computed on a straight-line basis over the following estimated useful lives: Leasehold improvements Over the shorter of the lease term or their estimated useful lives Buildings 30 years Furniture, fixtures and equipment 3-5 years Motor vehicles 5 years Gains and losses from the disposal of property and equipment are included in income (loss) from operations. (n) Intangible assets, net Acquired intangible assets mainly consist of the advertising agency agreement and license agreements with SINA, customer relationships, and database license are recorded at fair value on the acquisition date. All intangible assets, with the exception of customer relationships, are amortized ratably over the contract period. Intangible assets resulting out of acquired customer relationships are amortized based on the timing of the revenue expected to be derived from the respective customer. (o) Impairment of long-lived assets The Group evaluates its long-lived assets, such as fixed assets and purchased or acquired intangible assets with finite lives, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with ASC subtopic 360-10, Property, Plant and Equipment: Overall (“ASC 360-10”). When these events occur, the Group assesses the recoverability of the long-lived assets by comparing the carrying amount of the assets to future undiscounted net cash flow expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group will recognize an impairment loss equal to the excess of the carrying amount over the fair value of the assets. Impairment of long-lived assets were nil and nil as of December 31, 2021 and 2022, respectively. (p) Income taxes Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities, and their reported amounts in the financial statements, net operating loss carry-forwards and credits by applying enacted statutory tax rates applicable to future years when the reported amounts of the asset or liability are expected to be recovered or settled, respectively. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. The Group only recognizes tax benefits related to uncertain tax positions when such positions are more likely than not of being sustained upon examination. For such positions, the amount of tax benefit that the Group recognizes is the largest amount of tax benefit that is more than fifty percent likely of being sustained upon the ultimate settlement of such uncertain position. The Group records interest and penalties as a component of income tax expense. (q) Share-based compensation Share-based compensation expense is measured on the grant date of the share award, based on the fair value of the award, and recognized as an expense over the requisite service period. Management has made an estimate of expected forfeitures and recognizes compensation cost only for those equity awards expected to vest. (r) Revenue recognition The Group generates real estate online revenues principally from e-commerce, online advertising, and listing services and enters into separate contracts with its customers under each revenue stream. Revenues are recorded, after considering reductions by estimates for refund allowances and sales related taxes. The Group has adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and all subsequent ASUs that modified ASC 606 on January 1, 2018 and has elected to apply it retrospectively for the year ended December 31, 2018. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the Group applies the following steps: ● Step 1: Identify the contract(s) with a customer ● Step 2: Identify the performance obligations in the contract ● Step 3: Determine the transaction price ● Step 4: Allocate the transaction price to the performance obligations in the contract ● Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation China’s real estate industry experienced a steep downturn since the second half of 2021 and many real estate developers faced severe operational challenges. This had a direct and negative impact on the Group’s online advertising and e-commerce businesses. Due to the continuous decline of the real estate industry, the recoverable amount and time of some customers’ transaction consideration cannot be reasonably expected. Since January 1, 2022, the Group has not recognized the revenue from such customers until the actual receipt of the transaction consideration. E-commerce of discount coupons The Group offers individual property buyers discount coupons that enable them to purchase specified properties from real estate developers at discounts greater than the face value of the fees charged by the Group. Discount coupons are collected initially upfront from the property buyers and are refundable at any time before they are used to purchase the specified properties. As such, these fees are recorded as advance from customers in the Group’s consolidated balance sheets. In this context, the Group determines its customers to be individual property buyers and has identified one single performance obligation to be the sale of discount coupons. The Group determines the sale of discount coupons to be satisfied at a point in time only when confirmation letters are obtained from its customers or developers that prove the use of the coupons. The transaction price is the discount coupon fees charged by the Group which is fixed in the contract with individual property buyers. E-commerce of commission coupons The Group issues commission coupons and provides an information platform to individual brokers on which they can refer potential individual property buyers to real estate developers with whom the Group works. As long as the potential buyers who were referred by individual brokers reach a specific sale with the real estate developer, the individual brokers would redeem the commission coupons for the successful referrals, the group could earn the commission from the developer for the successful referrals. In this case, the Group has identified its clients as real estate developers and has identified a single performance obligation to provide the developer with successful referrals of the property purchases. The Group will recognize service revenue at a certain point in time when the obligations were fulfilled which were confirmed by real estate developers. Any commissions and other payments received in advance will be deferred until the obligations are fulfilled. The transaction price is the commission charged by the Group and is fixed in the confirmation letter. The Group will pay commissions for the individual brokers’ successful referrals only after the redemption of the commission coupons and the confirmation of the successful referrals of properties from real estate developers. The Group has the discretion to determine the amount of commission paid for the individual brokers’ successful referrals. Set out below is the disaggregation of the Group’s revenue from E-commerce: Year Ended December 31, 2020 2021 2022 $ $ $ E-commerce of discount coupons 547,895,262 411,097,123 182,940,792 E-commerce of commission coupons — — 95,522,903 Total revenue from E-commerce 547,895,262 411,097,123 278,463,695 Online advertising In respect of the online advertising services, the Group mainly provides comprehensive advertisement placement services to the advertisers (i.e., property developers) through a packaged online cross-media and cross-platform product portfolio, including those owned by the Group and other independent outlets. Management considers the Group acts as principal in this arrangement when the Group is a contracting party to its advertisers and is primarily responsible for delivering the specified service to the advertisers. The Group controls the specified service before that service is transferred to an advertiser, because (i) the Group has the discretion to decide which media outlets to use and what type of the advertisements to be placed; (ii) the Group is subject to certain risk of loss to the extent that the cost paid to the media outlets, which is charged to the Group based on a number of methodology, including viewership (CPM) or click (CPC) or others, cannot be compensated by the total consideration obtained from the advertisers; and (iii) the Group has the discretion to determine the fee charged to the advertisers, which affects the Group’s margin as the costs incurred might vary. Therefore the Group reports revenue earned from the advertisers and costs paid to media outlets related to these transactions on a gross basis. In addition, management considers the Group acts as an agent for those arrangements that the Group only earns agreed rebates from certain media outlets and recognizes such rebates as revenue on a net basis. Media outlets grant the Group rebates in the form of prepayments for the media outlets’ services or cash, mainly based on the gross spending of the advertisers. In some circumstances, the Group will share with its advertisers certain amount of the rebates earned from the media outlets, which is accounted for as a reduction of the rebates, and the Group recognizes such net amount of rebates as revenue. Listing Listing services entitle real estate brokers to post and make changes to information for properties in a particular area on the website for a specified period of time, in exchange for a fixed fee. In this context, the Group determines its customers to be real estate brokers and has identified a single performance obligation that is recognized over time on a straight-line basis over the contract period of display and when collection is probable. The transaction price is the fixed fee outlined in the contract. No rebates are given to the real estate brokers. Contract balances The Group does not have unconditional right to the consideration for advertising or listing services until all promises have been fulfilled and therefore initially records a contract asset when recognizing revenue. Upon fulfillment of all advertising or listing services, contract assets will be reclassified as a receivable. Contract assets, net, recognized were $1,415,241 and nil as of December 31, 2021 and 2022 respectively. Disaggregation of revenue In accordance with ASC 606-10-50, the Group believes the disaggregation of revenue from contracts with customers by e-commerce, online advertising and listing to sufficiently achieve the disclosure objective of depicting how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Practical Expedients and Exemptions For the Group’s contracts that have an original duration of one Financing Component In determining the transaction price, the Group adjusts the promised amount of consideration to determine the cash selling price of the service to be delivered and reflect the time value of money if the contract has a significant financing component. As a result of the adjustment to the transaction price, the Group recognized interest income amounting to $4,454,077, nil and nil for the years ended December 31, 2020, 2021 and 2022, respectively. (s) Cost of revenue Cost of revenue consists of costs associated with the production of websites, which includes fees paid to third parties for internet connection, content and services, editorial personnel related costs, amortization of intangible assets, depreciation associated with website production equipment and fees paid to media outlets for advertising resources. (t) Marketing and advertising expenses Marketing and advertising expenses consist primarily of targeted online and offline marketing costs for promoting the Group’s e-commerce projects and the Group’s own brand building, such as Leju property visit, sponsored marketing campaigns, online or print advertising, public relations and sponsored events. The Group expenses all marketing advertising costs as incurred and record these costs within “Selling, general and administrative expenses” on the consolidated statements of operations when incurred. The nature of the Group’s direct marketing activities is such that they are intended to attract subscribers for the online advertising and potential property buyers to purchase the discount coupons. The Group incurred marketing and advertising expenses amounting to $523,315,406, $442,975,679 and $237,268,507 for the years ended December 31, 2020, 2021 and 2022, respectively. (u) Commissions under commission coupons business Commissions under commission coupons business are the fee paid for individual brokers’ successful referrals, upon the redemption of the commission coupons and confirmation from the real estate developer. The Group expenses all real estate agent commissions as incurred and records these costs within “Selling, general and administrative expenses” on the consolidated statements of operations when incurred. The Group incurred commissions amounting to nil, nil and $91,338,490 for the years ended December 31, 2020, 2021 and 2022, respectively. Any fee from the redemption of the commission coupons would be netted the commissions for individual brokers’ successful referrals on the consolidated statements of operations. (v) Foreign currency translation and transaction The functional currency of the Company is the United States dollar (“U.S. dollar”) and is used as the reporting cur |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Leases | 3. Leases The Group leases office under non-cancelable operating lease agreements, which expire at various dates from 2022 to 2028. As of December 31, 2021 and 2022, the Group’s operating leases had a weighted average remaining lease term of 5.8 and 4.9 years and a weighted average discount rate of 5.61% and 5.61%, respectively. Future lease payments under operating leases as of December 31, 2022 were as follows: As of December 31, 2022 $ 2023 5,194,655 2024 4,572,378 2025 4,344,044 2026 4,064,720 2027 4,205,218 Then thereafter 1,027,182 Total future lease payments 23,408,197 Impact of discounting remaining lease payments (2,930,806) Total lease liabilities 20,477,391 Lease liabilities, current 5,037,796 Lease liabilities, non-current 15,439,595 Operating lease expenses for the years ended December 31, 2020, 2021 and 2022 were $6,016,402, $6,331,194 and $5,746,967, respectively, which did not include short-term lease cost. Short-term lease costs for the years ended December 31, 2020, 2021 and 2022 were $2,306,983, $2,302,019 and $1,233,347, respectively. Cash paid for amounts included in the measurement of operating lease liabilities was $5,794,716, $6,287,094 and $5,698,668 for the years ended December 31, 2020, 2021 and 2022, respectively. Non-cash transaction amounts of lease liabilities arising from obtaining right-of-use assets were $1,967,269, $2,064,279 and $2,783,430 for the years ended December 31, 2020, 2021 and 2022, respectively. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2022 | |
Property and Equipment, Net | |
Property and Equipment, Net | 4. Property and Equipment, Net Property and equipment, net consists of the following: As of December 31, 2021 2022 $ $ Furniture, fixtures and equipment 11,119,445 9,160,115 Leasehold improvements 5,269,934 4,238,863 Buildings 12,085,843 11,742,004 Motor vehicles 1,120,551 806,712 Total 29,595,773 25,947,694 Accumulated depreciation (12,928,492) (11,743,331) Property and equipment, net 16,667,281 14,204,363 Depreciation expenses were $2,701,577, $2,374,493 and $1,743,030 for the years ended December 31, 2020, 2021 and 2022, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets, Net | |
Intangible Assets, Net | 5. Intangible Assets, Net Weighted Average Remaining Amortization As of December 31, Period in Years 2021 2022 $ $ Intangible assets subject to amortization are comprised of the following: Advertising agency agreement with SINA 106,790,000 106,790,000 1.25 License agreements with SINA 80,660,000 80,660,000 1.25 Computer software licenses 2,432,242 1,841,885 1.96 Total intangible assets, gross 189,882,242 189,291,885 1.26 Less: Accumulated amortization Advertising agency agreement with SINA 93,670,998 99,725,921 License agreements with SINA 70,902,383 75,405,899 Computer software licenses 2,011,103 1,701,890 Total accumulated amortization 166,584,484 176,833,710 Total intangible assets, net 23,297,758 12,458,175 The advertising agency agreement and license agreements with SINA (the “SINA Agreements”) were recognized in connection with the Group’s acquisition of China Online Housing Technology Corporation (“COHT”) in 2009, and provide the Group with exclusive rights to operate SINA’s real estate and home furnishing related channels and the exclusive right to sell advertising relating to real estate, home furnishing and construction materials on these channels as well as SINA’s other websites. If the Group sells advertising on SINA’s websites other than the above channels, it will pay SINA fees of approximately 15% of the revenues generated from these sales. The SINA Agreements had an original expiration date in 2019. In March 2014, the SINA Agreements were extended by five years to 2024 for no additional consideration. All other terms of the SINA Agreements remained the same. The acquisition cost was recognized as an intangible asset and amortized over the term of the agreement. Amortization expenses were $11,636,952, $10,994,923 and $10,839,284 for the years ended December 31, 2020, 2021 and 2022 respectively. The Group expects to record amortization expenses of $10,633,512, $1,813,828, $10,836 and nil for the years ending December 31, 2023, 2024, 2025 and 2026, respectively. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Borrowings | |
Borrowings | 6. Borrowings As of December 31, 2021 2022 $ $ Short‑term borrowings 784,230 717,915 In September 2021, the Group entered into a one-year RMB 5.0 million facility agreement with Shanghai Pudong Development Bank. The interest rate was set at 65 basis points over Loan Prime Rate (“LPR”). The bank borrowing was unguaranteed and unsecured. The loan was refunded in September 2022. In March 2022, the Group entered into a one-year RMB 5.0 million facility agreement with Shanghai Pudong Development Bank. The interest rate was priced at 80 basis points over LPR. The bank borrowing was unguaranteed and unsecured. For the years ended December 31, 2020, 2021 and 2022, the Group recognized interest expenses of nil, $9,147 and $51,972 which was recorded in interest income, net. |
Other Income (Loss), Net
Other Income (Loss), Net | 12 Months Ended |
Dec. 31, 2022 | |
Other Income (Loss), Net | |
Other Income (Loss), Net | 7. Other Income (Loss), Net Year Ended December 31, 2020 2021 2022 $ $ $ Realized gain on marketable securities — 2,127,985 31,891 Unrealized gain (loss) on marketable securities 850,402 (1,722,700) — Income (loss) from sales of properties held for sales 14,141 (17,430) 742 Foreign exchange gain (loss) (815,656) (431,686) 1,217,262 Others 251,169 252,706 246,497 Total 300,056 208,875 1,496,392 |
Income Tax
Income Tax | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax | |
Income Tax | 8. Income Tax The following table summarizes income (loss) before income taxes incurred in the PRC and outside of the PRC: Year Ended December 31, 2020 2021 2022 $ $ $ Income (loss) before income taxes: PRC 40,605,716 (148,696,060) (99,596,774) Outside of PRC (8,918,616) (14,711,876) (2,197,049) Total 31,687,100 (163,407,936) (101,793,823) Expenses (benefits) for income taxes are comprised of: Year Ended December 31, 2020 2021 2022 $ $ $ Current Tax PRC 2,725,114 (1,409,996) (32,295,286) Outside of PRC 6,600 4,895 276 2,731,714 (1,405,101) (32,295,010) Deferred Tax PRC 7,933,308 (12,092,683) 20,174,775 Outside of PRC — — — 7,933,308 (12,092,683) 20,174,775 Income tax expense (benefits) 10,665,022 (13,497,784) (12,120,235) The Company is incorporated in the Cayman Islands, which is exempted from tax. Enterprise Income Tax Law in China applies a statutory 25% enterprise income tax rate to both foreign invested enterprises and domestic enterprises. Shanghai SINA Leju was granted a high and new technology enterprise (“HNTE”) status. Shanghai SINA Leju renewed its qualification of “high and new technology enterprise” in 2018 and 2021, and was entitled to a favorable statutory tax rate of 15% from 2018 through 2023. The Group’s subsidiaries in Hong Kong are subject to a profit tax at the rate of 16.5% on assessable profit determined under relevant Hong Kong tax regulations. The Company’s subsidiaries incorporated in the BVI are not subject to taxation. The Group does not have uncertain tax positions in accordance with ASC740-10, nor does it anticipate any significant increase to its liability for unrecognized tax benefit within next 12 months. The Group will classify interest and penalties related to income tax matters, if any, as income tax expense. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to tax authority’s mistake or due to computational errors made by the taxpayer. The statute of limitations will be extended to five years under special circumstances, which are not clearly defined, but an underpayment of tax liability exceeding RMB100,000 ($14,358) is specifically listed as a special circumstance. In the case of a transfer pricing related adjustment, the statute of limitations is 10 years. There is no The principal components of the deferred income tax assets/liabilities are as follows: As of December 31, 2021 2022 $ $ Deferred tax assets: Accrued salary expenses 4,987,961 2,792,431 Bad debt provision 28,843,655 29,096,796 Net operating loss carry-forwards 40,000,359 24,801,075 Advertising expenses 1,441,682 1,013,274 Accrued expense 2,434,194 8,862,609 Others 629,598 508,950 Gross deferred tax assets 78,337,449 67,075,135 Valuation allowance (26,732,045) (41,617,648) Total deferred tax assets 51,605,404 25,457,487 Deferred tax liabilities: Intangible assets from acquisition and other assets 6,042,540 3,517,837 Total deferred tax liabilities 6,042,540 3,517,837 The majority of deferred tax liabilities were recognized for temporary differences between the tax basis of intangible assets recognized from acquisitions and their reported amounts in the financial statements. Movement of the valuation allowance is as follows: Year Ended December 31, 2020 2021 2022 $ $ $ Balance as of January 1 (5,634,684) (5,714,480) (26,732,045) Reversal/(Additions) 291,962 (20,905,451) (17,978,965) Write-offs — 393,251 138,479 Changes due to exchange rate translation (371,758) (505,365) 2,954,883 Balance as of December 31 (5,714,480) (26,732,045) (41,617,648) The Group recognized a valuation allowance against deferred tax assets on tax loss carry-forwards of $20,905,451 and $17,978,965 for the years ended December 31, 2021 and 2022, respectively. The Group reversed a valuation allowance against deferred tax assets on tax loss carry forwards of $291,962 for the year ended December 31, 2020. The Group assesses available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three On the basis of this evaluation, as of December 31, 2022, a valuation allowance of $41,617,648, of which $22,071,429 was for bad debt provision and $19,546,219 was for net operating loss carry-forwards, was recorded to reflect only the portion of the deferred tax assets that is not more likely than not to be realized. The amount of the deferred tax assets considered realizable, however, could be adjusted if estimates of future taxable income during the carry forwards period are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as the Group’s projections for growth. Reconciliation between the provision for income tax computed by applying the statutory tax rate to income before income taxes and the actual provision for income taxes is as follows: Year Ended December 31, 2020 2021 2022 PRC income tax rate 25.00 % 25.00 % 25.00 % Share based compensation expenses not deductible for tax purposes 2.35 % (0.25) % (0.45) % Other expenses not deductible for tax purposes (0.12) % 0.17 % 0.30 % Effect of tax holiday (0.27) % (5.29) % (5.15) % Effect of different tax rate of subsidiary operation in other jurisdiction 3.20 % (2.00) % (0.09) % Valuation allowance movement (0.82) % (12.37) % (8.17) % Withholding tax 4.32 % 3.01 % 0.48 % 33.66 % 8.27 % 11.92 % The aggregate amount and per share effect of the tax holiday are as follows: Year Ended December 31, 2020 2021 2022 $ $ $ The aggregate dollar effect 85,461 (8,646,324) (5,247,214) Per ADS effect—basic 0.01 (0.63) (0.38) Per ADS effect—diluted 0.01 (0.63) (0.38) As of December 31, 2021 and 2022, the Group had tax operating loss carry-forwards of $205,754,412, and $35,032,374, respectively. The tax operating losses of entities not qualified as HNTE are available for offset against future profits that may be carried forward until calendar years 2026 and 2027, respectively and further to 2031 and 2032, respectively for qualified HNTE according to the public announcement made by the State Administration of Taxation in China in 2022. Undistributed losses of the Company’s PRC subsidiaries of approximately $98,486,420 at December 31, 2022, no provision for PRC dividend withholding tax has been provided thereon. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Compensation | |
Share-Based Compensation | 9. Share-Based Compensation Leju Plan In November 2013, the Company adopted a share incentive plan (“Leju Plan”), which allows the Company to offer a variety of share-based incentive awards to employees, officers, directors and individual consultants who render services to the Group. Under the Leju Plan, the maximum number of shares that may be issued would be 8% of the total outstanding shares on an as-converted and fully diluted basis as of the effective date of the plan, and would be increased automatically by 5% of the then total outstanding shares on an as-converted fully diluted basis on each of the third, sixth and ninth anniversaries of the effective date of the Leju Plan. On December 1, 2016, the award pool under Leju plan was automatically increased by 7,553,422 ordinary shares. On December 1, 2019, the award pool under Leju plan was automatically increased by 7,833,224 ordinary shares. On December 1, 2022, the award pool under Leju plan was automatically increased by 8,020,119 ordinary shares. Options have a ten Share Options: During 2020 and 2022, there were no options granted under Leju Plan. During 2021, the Company granted 4,267,000 options to purchase its ordinary shares to certain of the Group’s employees at an exercise price from $0.10 to $1.00 per share, including 600,000 options granted to senior management team as part of 2020 bonus as described below. The options expire ten years from the date of grant and vest ratably at each grant date anniversary over a period of three years. The Company has used the binomial model to estimate the fair value of the options granted under the Leju Plan. The fair value per option was estimated at the date of grant using the following assumptions: 2021 Risk-free rate of return 1.56 % Contractual life of option 10 years Estimated volatility 72.06 % Dividend yield 0.00 % A summary of option activities under the Leju Plan during the year ended December 31, 2022 is presented below: Weighted Average Remaining Aggregate Weighted Contractual Intrinsic Number of Average Term Value of Options Exercise Price (in years) Options $ $ Outstanding, as of January 1, 2022 15,617,986 2.72 5.71 Granted — — Exercised — — — Forfeited (728,336) 3.19 Outstanding, as of December 31, 2022 14,889,650 2.70 4.74 Vested and expected to vest as of December 31, 2022 14,555,100 2.74 4.66 Exercisable as of December 31, 2022 12,146,984 3.11 3.94 The weighted average grant-date fair value of the options granted in 2021 was $1.74 per share. For the years ended December 31, 2020, 2021 and 2022, the Company recorded compensation expenses of $1,415,526, $1,519,778 and $1,789,992 for the share options granted to the Group’s employees, respectively. During the years ended December 31, 2020, 2021 and 2022, 429,968, 146,582 and nil options were exercised having a total intrinsic value of $471,610, $193,492 and nil, respectively. The proceeds from exercise of options were $611,734, $208,025 and nil for the years ended December 31, 2020, 2021 and 2022, respectively. As of December 31, 2022, there was $2,350,594 of total unrecognized compensation expense related to unvested share options granted under the Leju Plan. That cost is expected to be recognized over a weighted-average period of 1.31 years. Restricted Shares: Restricted shares are restricted from voting or receiving dividends until the shares are vested based on the stipulated service periods as set out in the award agreements. On March 15, 2019, the board of directors approved that portion of bonus for the senior management team would be paid in the form of restricted shares. For the year ended December 31, 2019, the Company recorded compensation expenses of $1,225,000 for 800,000 restricted shares that were granted to the senior management team in June, 2020. On May 28, 2020, the board of directors also approved that portion of bonus for the senior management team would be paid in the form of restricted shares. For the year ended December 31, 2020, the Company recorded compensation expenses of $1,425,000,and 600,000 options were granted to the senior management team at an exercise price of $0.10 per share on April 23, 2021. There were no restricted shares granted under Leju Plan in 2021 and 2022. A summary of restricted share activity under the Leju Plan during the year ended December 31, 2022 is presented below: Weighted Number of Average Restricted Grant-date Shares Fair Value $ Outstanding, as of January 1, 2022 616,668 1.52 Granted — — Vested 350,000 1.54 Forfeited — — Outstanding, as of December 31, 2022 266,668 1.50 The total grant-date fair value of restricted shares vested in 2020, 2021 and 2022 was 137,500, $537,498 and nil, respectively. For the years ended December 31, 2020, 2021 and 2022, the Company recorded compensation expenses of $137,500, $137,500 and $34,375 for the restricted shares granted to the Group’s employees which did not include the restricted shares granted as the bonus for the senior management team, respectively. As of December 31, 2022, there was no unrecognized compensation expense related to unvested restricted shares granted under the Leju Plan. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Employee Benefit Plans | |
Employee Benefit Plans | 10. Employee Benefit Plans The Group’s PRC subsidiaries and VIEs are required by law to contribute a certain percentage of applicable salaries for retirement benefits, medical insurance benefits, housing funds, unemployment and other statutory benefits. The PRC government is directly responsible for the payments of such benefits. The Group contributed $8,027,949, $14,677,938, and $12,357,772 for the years ended December 31, 2020, 2021 and 2022, respectively, for such benefits. |
Distribution of Profits
Distribution of Profits | 12 Months Ended |
Dec. 31, 2022 | |
Distribution of Profits | |
Distribution of Profits | 11. Distribution of Profits Relevant PRC statutory laws and regulations permit payment of dividends by the Group’s PRC subsidiaries and VIEs only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Under PRC law, each of the Group’s PRC subsidiaries and VIEs is required to set aside at least 10% of its after-tax profits each year, if any, to fund a statutory reserve until such reserve reaches 50% of its registered capital. Each of the Group’s subsidiaries with foreign investment is also required to further set aside a portion of its after-tax profits to fund the employee welfare fund at the discretion of the board. Although the statutory reserves can be used, among other ways, to increase the registered capital and eliminate future losses in excess of retained earnings of the respective companies, the reserve funds are not distributable as cash dividends, loans or advances except in the event of liquidation of these subsidiaries. The amounts of the reserve fund for the Group as of December 31, 2021 and 2022 were $10,059,628 and $10,125,676, respectively. As a result of these PRC laws and regulations, the Group’s PRC subsidiaries and VIEs are restricted in their ability to transfer a portion of their net assets, including general reserve and registered capital, either in the form of dividends, loans or advances. Such restricted portion amounted to $35,848,168 and $35,914,216, as of December 31, 2021 and 2022, respectively. The amount of $9,448,820 and $8,982,249 was attributed to general reserve and registered capital of the VIEs. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Information | |
Segment Information | 12. Segment Information The Group operates and manages its business as a single segment. The Group uses the management approach to determine operating segments. The management approach considers the internal organization and reporting used by the Group’s chief operating decision maker (“CODM”) for making decisions, allocating resources and assessing performance. The Group’s CODM has been identified as the chief executive officer, who reviews the consolidated results of the Group as a whole when making decisions about allocating resources and assessing performance. The following table summarizes the revenue information of the Group: Year Ended December 31, 2020 2021 2022 $ $ $ E-commerce of disount coupons 547,895,262 411,097,123 182,940,792 E-commerce of commission coupons — — 95,522,903 Online advertising 170,782,688 122,522,232 64,707,215 Listing 848,033 497,615 11,274 719,525,983 534,116,970 343,182,184 Geographic Substantially all of the Group’s revenues from external customers are located in the PRC. Major customers There were no customers from whom revenue accounted for 10% or more of total revenue for the years ended December 31, 2020, 2021 and 2022, respectively. |
Related Party Balances and Tran
Related Party Balances and Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Balances and Transactions | |
Related Party Balances and Transactions | 13. Related Party Balances and Transactions The table below sets forth major related parties and their relationships with the Group: Company Name Relationship with the Group E-House Enterprise Mr. Xin Zhou, executive chairman of Leju, is E-House Enterprise’s chairman. E-House Enterprise was a subsidiary of E-House before it became a listed company in Hong Kong in July, 2018.Leju became a subsidiary of E-House Enterprise as of November 4, 2020. E-House Under the common control of E-House Holdings until December 30, 2016, and E-House Holdings was the largest shareholder from December 31, 2016 to November 4, 2020. Mr. Xin Zhou, executive chairman of Leju, is E-House’s ultimate controller. (Note 1). SINA A shareholder with significant influence Tencent Holdings Ltd. or certain of its affiliates (“Tencent”) A shareholder with significant influence Alibaba Investment Ltd. or certain of its affiliates (“Alibaba”) A shareholder with significant influence on TM Home, the Company’s controlling shareholder, since November 4, 2021. (Note 1) Shanghai Tianji Network Services Ltd. (“Tianji Network”) (formerly known as Shanghai Yunchuang Information & Technology Ltd.) Mr. Xin Zhou, executive chairman of Leju, is Tianji Network’s ultimate controller by May 2021. Tianji Network became a subsidiary of E-House Enterprise since May 2021. Yunnan Huixiangju Information & Consultant Ltd. (“Huixiangju”) One of the Group’s investment affiliates and the Group owns 51% equity interest and has significant influence Suzhou Qianyisheng Information & Consultant Ltd. (“Qianyisheng”) One of the Group’s investment affiliates and the Group owns 19% equity interest and has significant influence Qianyisheng dissolved in July, 2022. Shanghai Quanzhuyi Home Furnishing Accessories Ltd. (“QuanZhuYi”) One of the Group’s investment affiliates and the Group owns 13.5% equity interest and has significant influence Jupai Holdings Ltd. (“Jupai”) Mr. Xin Zhou, executive chairman of Leju, is Jupai’s director. E-House Holdings has significant influence on Jupai and Leju Subsequent to Leju’s IPO, E-House began charging the Group corporate service fees pursuant to agreements entered into in March 2014 in connection with Leju’s IPO. Under these service arrangements, E-House provides various corporate support services to the Group, including general finance and accounting, human resource management, administrative, internal control and internal audit, operational management, legal and information technology. The termination provisions in the arrangements were amended on November 4, 2020 and E-House continues to provide such services under the amended services arrangements. E-House charges the Group a fee based on an estimate of the actual cost incurred to provide such services, which amounted to $1,910,204 and $1,352,382 for the years ended December 31, 2020 and 2021, respectively. Since 2022, E-House Enterprise provides such services to the Group. E-House Enterprise charges the Group a fee based on an estimate of the actual cost incurred to provide such services, which amounted to $1,335,164 for the years ended December 31, 2022. During the years ended December 31, 2020, 2021 and 2022, significant related party transactions were as follows: Year Ended December 31, 2020 2021 2022 $ $ $ Corporate service provided by E-House under service agreements 1,910,204 1,352,382 — Corporate service provided by E-House Enterprise — — 1,335,164 Online advertising resources fee recognized as cost of revenues purchased from SINA 29,322,241 10,078,875 110,464 Online advertising resources fee recognized as cost of revenues purchased from Tencent 17,790,501 18,671,019 14,787,449 Services purchased from/rental cost paid to E-House 764,952 886,866 700,726 Services purchased from E-House Enterprise 21,429,920 20,557,777 7,694,981 Services purchased from Alibaba (Note A) * 875,072 855,183 Services purchased from Jupai 34,160 — 24,372 Services purchased from Tianji Network (Note B) 493,176 69,762 — Total services purchased from related parties 71,745,154 52,491,753 25,508,339 Online advertising services provided to E-House — 484,185 — Services provided to E-House Enterprise 1,392,190 36,334 — Services provided to Investing affiliates 2,393,204 548,075 109,934 Total online advertising services provided to related parties 3,785,394 1,068,594 109,934 Fee paid to Tencent for advertising resources on behalf of customers (Note C) 43,083,548 2,502,309 1,798,079 Note A: Alibaba became the Company’s related party since 2021. Note B: The amount represents services purchased from Tianji Network from January to May, 2021 while the amount for the services purchased for the remaining period was included in the amount of E-House Enterprise. Note C: The Group has determined that it acts as an agent for those arrangements as the Group only earns agreed rebates from certain media outlets and recognizes such rebates as revenue on a net basis. Media outlets grant the Group rebates in the form of prepayments for the media outlets’ services or cash, mainly based on the gross spending of the advertisers. For performance obligations for which it acts as the agent, revenue is recorded net of the costs for advertising placements from suppliers, equal to the amount retained for its fee or commission. Fees paid to Tencent for advertising resources on behalf of customers represent costs paid to Tencent for such arrangements. The transactions are measured at the amount of consideration established and agreed to by the related parties. As of December 31, 2021 and 2022 amounts due from related parties were comprised of the following: As of December 31, 2021 2022 $ $ Investing affiliates (1) 708 — Tencent (2) 3,581,609 1,855,275 Alibaba(3) 332,243 498,258 E-House (4) — 123,010 Allowance for current expected credit losses (1,175) (743) Total 3,913,385 2,475,800 As of December 31, 2021 and 2022, amounts due to related parties were comprised of the following: As of December 31, 2021 2022 $ $ E-House (4) 2,201,127 — SINA (5) 1,479,957 1,382,173 Investing affiliates (1) — 124,208 E-House Enterprise (6) 3,950,839 3,298,210 Total 7,631,923 4,804,591 (1) The amounts due from affiliates as of December 31, 2021 represent the expense paid on behalf of Qianyisheng. The amounts due to affiliates as of December 31, 2022 represent the advance from Huixiangju. (2) The amounts due from Tencent as of December 31, 2021 and 2022 represent prepaid fees for online advertising resources. (3) The amounts due from Alibaba as of December 31 2022 and 2022 represent prepaid fees for online advertising resources and technical service. (4) The amount due to E-House as of December 31, 2021 was primarily for the payable for corporate service fees charged by E-House. The amount due from E-House as of December 31, 2022 was primarily for the prepayment for the service purchased from E-House. (5) The amounts due to SINA as of December 31, 2021 and 2022 represents payable for online advertising resources fee. (6) The amounts due to E-House Enterprise as of December 31, 2021 and 2022 represent net results for receivable for online advertising revenue from E-House Enterprise and payable for marketing service fees charged by E-House Enterprise. The roll forward of the payable to / (receivable from) E-House for the years ended December 31, 2020, 2021 and 2022 is as follows: Year Ended December 31, 2020 2021 2022 $ $ $ Balance at January 1 (555,652) 129,566 2,201,127 Corporate service provided by E-House under services agreements (A) 1,910,204 1,352,382 — Service provided to E-House (A) — (484,185) — Service purchased from/rental cost paid to E-House (A) 764,952 886,866 700,726 Net received/(payment) (B) (1,989,938) 316,498 (3,024,863) Balance at December 31 129,566 2,201,127 (123,010) As of December 31, 2021 2022 $ $ Net results for service fee (A and B) 2,201,127 (123,010) Amounts due/(from) to E-House 2,201,127 (123,010) (A) Represents the services provided by or to E-House. (B) Represents net cash flow for activities between the Company and E-House. The roll forward of the payable to E-House Enterprise for the years ended December 31, 2020, 2021 and 2022 is as follows: Year Ended December 31, 2020 2021 2022 $ $ $ Balance at January 1 (906,009) 2,238,543 3,950,839 Corporate service provided by E-House Enterprise (C) — — 1,335,164 Service provided to E-House Enterprise (C) (1,392,190) (36,334) — Service purchased from E-House Enterprise (C) 21,429,920 20,557,777 7,694,981 Net payment (D) (16,893,178) (18,809,147) (9,682,774) Balance at December 31 2,238,543 3,950,839 3,298,210 (C) Represents services provided by or to E-House Enterprise. (D) Represents net cash flow for the activities between the Company and E-House Enterprise. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | 14. Commitments and Contingencies The Group is subject to claims and legal proceedings that arise in the ordinary course of its business. Each of these matters is subject to various uncertainties, and it is possible that some of these matters may be decided unfavorably to the Group. The Group does not believe that any of these matters will have a material effect on its business, assets or operations. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events | |
Subsequent Events | 15. Subsequent Events E-House Enterprise announced its proposed restructuring of certain notes previously issued by E-House Enterprise (the “Restructuring”) on April 3, 2023. As a result of a series of steps in connection with the proposed Restructuring, a special purpose vehicle established for the holders of certain notes of E-House Enterprise (the “Creditor SPV”), and Alibaba Investment limited and its affiliate will hold approximately 54.2% and 10.8% of the shares of TM Home, respectively, which will result in E-House Enterprise ceasing to be a controlling beneficial owner of Leju. The remaining 35% of the shares of TM Home will be held by E-House Enterprise and its affiliates, of which 15% will be transferred to a special purpose vehicle held by the members of senior management of TM Home appointed by E-House Enterprise. E-House Enterprise will further use reasonable endeavors to sell or procure the sale of the shares of TM Home held by the Creditor SPV and Alibaba Investment, which will cause further changes in the beneficial ownership of the Group. The potential change in the Group’s controlling shareholders is subject to the effectiveness of the proposed Restructuring, including the approval of the proposed Restructuring by E-House Enterprise’s noteholders. |
Summary of Principal Accounti_2
Summary of Principal Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Principal Accounting Policies | |
Basis of presentation | (a) Basis of presentation The consolidated financial statements are prepared and presented in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). |
Impact of COVID-19 | (b) Impact of COVID-19 Starting from early 2020, in response to intensifying efforts to contain the spread of COVID-19, the Chinese government took a number of actions, which included extending the Chinese New Year holiday, quarantining individuals infected with or suspected of having COVID-19, restricting residents from travel, encouraging employees of enterprises to work remotely from home and cancelling public activities, among others. The pandemic resulted in a significant reduction in real estate transaction volumes as many of the Group’s developer clients had to close their project sales centers and show rooms for an extended period, adversely affecting the Group’s e-commerce services. In 2022, there have been outbreaks of COVID-19 cases from time to time, including the COVID-19 Delta and Omicron variant cases, in multiple cities in China. The Group’s revenues declined compared to the prior period mainly due to weakness in demand as the customers in real estate industries are negatively impacted by COVID-19. The Group’s revenues declined compared to the prior period mainly due to weakness in demand as the customers in real estate industries are negatively impacted by COVID-19 for the year of 2022. |
Basis of consolidation | (c) Basis of consolidation The consolidated financial statements include the financial statements of Leju, its majority owned subsidiaries and its VIEs, Beijing Leju, Leju Hao Fang and Beijing Jiajujiu. All inter-company transactions and balances have been eliminated in consolidation. The Group evaluates each of its interests in private companies to determine whether or not the investee is a VIE and, if so, whether the Group is the primary beneficiary of such VIE. In determining whether the Group is the primary beneficiary, the Group considers if the Group (1) has power to direct the activities that most significantly affects the economic performance of the VIE, and (2) receives the economic benefits of the VIE that could be significant to the VIE. If deemed the primary beneficiary, the Group consolidates the VIE. VIE arrangements PRC regulations currently prohibit or restrict foreign ownership of companies that provide internet content and advertising services. To comply with these regulations, the Group provides such activities through its VIEs and their subsidiaries. To provide the Group effective control over and the ability to receive substantially all of the economic benefits of its VIEs and their subsidiaries, certain of the Company’s subsidiaries, Shanghai SINA Leju, Shanghai Yi Yue and Beijing Maiteng (collectively, the “Foreign Owned Subsidiaries”) entered into a series of contractual arrangements with Beijing Leju, Leju Hao Fang and Beijing Jiajujiu (collectively the “VIEs”) and their respective shareholders, respectively, as summarized below: Foreign Owned Name of Foreign Subsidiaries’ Owned Economic Ownership Subsidiaries of VIES Name of VIEs Activities of VIEs Shanghai SINA Leju 100 % Beijing Leju Operate the online advertising and listing business Shanghai Yi Yue 100 % Leju Hao Fang Operate the e-commerce business Beijing Maiteng 100 % Beijing Jiajujiu Operate the online home furnishing business The VIEs hold the requisite licenses and permits necessary to conduct internet content and advertising services activities from which foreign ownership of companies are prohibited or restricted. In addition, the VIEs hold leases and other assets necessary to operate such business and generate a majority of the Group’s revenues. Agreements that Transfer Economic Benefits of the VIEs to the Group Exclusive Consulting and Technical Support Agreement. Agreements that Provide Effective Control over VIEs Exclusive Call Option Agreement. Loan Agreement. Shareholder Voting Right Proxy Agreement. Each shareholder voting right proxy agreement has a term of twenty years, unless it is early terminated by all parties in writing or pursuant to provision of this agreement. The term of the agreement will be automatically extended for one year upon the expiration, if the Foreign Owned Subsidiary gives the other parties written notice requiring the extension at least 30 days prior to expiration and the same mechanism will apply subsequently upon the expiration of each extended term. Equity Pledge Agreement. Risks in relation to the VIE structure The Company believes that the Foreign Owned Subsidiaries’ contractual arrangements with the VIEs are in compliance with PRC law and are legally enforceable. However, uncertainties in the PRC legal system could limit the Company’s ability to enforce these contractual arrangements and the interests of the shareholders of the VIEs may diverge from that of the Company and that may potentially increase the risk that they would seek to act contrary to the contractual terms, for example by influencing the VIEs not to pay the service fees when required to do so. The Company’s ability to control the VIEs also depends on the power of attorney, the Foreign Owned Subsidiaries have to vote on all matters requiring shareholder approval in the VIEs. As noted above, the Company believes this power of attorney is legally enforceable but may not be as effective as direct equity ownership. In addition, if the legal structure and contractual arrangements were found to be in violation of any existing PRC laws and regulations, the Company may be subject to fines or other actions. The Company does not believe such actions would result in the liquidation or dissolution of the Company, the Foreign Owned Subsidiaries or the VIEs. The Company, through its subsidiaries and through the contractual arrangements, has (1) the power to direct the activities of the VIEs that most significantly affect the entity’s economic performance and (2) the right to receive benefits from the VIEs. Accordingly, the Company is the primary beneficiary of the VIEs and has consolidated the financial results of the VIEs. The following financial statement amounts and balances of the Group’s VIEs were included in the accompanying consolidated financial statements, after elimination of inter-company balances and transactions: As of December 31, 2021 2022 $ $ Cash and cash equivalents 199,808,985 90,795,643 Restricted cash 1,953,803 4,270,695 Accounts receivable, net 34,485,667 2,627,814 Contract assets, net 1,415,241 — Customer deposits, net 783,995 3,860,127 Amounts due from related parties, net 3,834,986 2,289,594 Other current assets, net 23,934,283 4,007,633 Total current assets 266,216,960 107,851,506 Total non-current assets 63,522,807 47,690,614 Total assets 329,739,767 155,542,120 Accounts payable 1,631,401 653,700 Accrued payroll and welfare expenses 19,962,938 10,717,186 Income tax payable 31,400,562 — Other tax payable 16,992,077 8,684,712 Amounts due to related parties 2,693,624 668,153 Advances from customers 82,626,840 43,096,996 Lease liabilities, current 5,556,351 5,013,721 Accrued marketing and advertising expenses 42,180,152 29,533,704 Other current liabilities 16,383,879 10,317,192 Total current liabilities 219,427,824 108,685,364 Deferred tax liabilities 314,763 435,848 Lease liabilities, non-current 19,437,887 15,400,328 Total liabilities 239,180,474 124,521,540 Year Ended December 31, 2020 2021 2022 $ $ $ Total revenues 718,861,490 533,619,355 343,170,910 Cost of revenues (65,612,576) (47,730,331) (24,394,266) Net income (loss) 14,278,316 (81,530,172) (10,882,414) Net cash provided by/ (used in) operating activities 100,460,964 (41,427,975) (93,191,543) Net cash provided by/ (used in) investing activities (1,068,664) 431,057 (73,872) Net cash provided by/ (used in) financing activities — — — There are no consolidated VIEs’ assets that are collateral for the VIEs’ obligations or are restricted solely to settle the VIEs’ obligations. The Company has not provided any financial support that it was not previously contractually required to provide to the VIEs. |
Use of estimates | (d) Use of estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from such estimates. Significant accounting estimates reflected in the Group’s financial statements include (i) revenue recognition, (ii) provision for credit losses of accounts receivable and contract assets, customer deposits, other receivables recorded in prepayments and other current assets and amounts due from related parties, (iii) assessment for impairment of long-lived assets, intangible assets and goodwill, (iv) fair value of financial instruments, (v) valuation and recognition of share-based compensation expenses, (vi) useful lives of property and equipment and intangible assets, (vii) and provision for income tax and valuation allowance for deferred tax assets. |
Fair value of financial instruments | (e) Fair value of financial instruments The Group records its financial assets and liabilities at fair value on a recurring basis. Fair value reflects the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. The Group applies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. There are three levels of inputs that may be used to measure fair value: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Assets measured at fair value on a recurring basis are comprised of marketable securities. The Group uses quoted price in active markets (Level 1) to determine the fair value of marketable securities. There are no assets or liabilities measured at fair value on a nonrecurring basis in 2020, 2021 and 2022. For cash and cash equivalents, restricted cash, accounts receivable, contract assets, customer deposits, other receivables, accounts payable, other payables, and amounts due from/to related parties, the carrying value approximates its fair value due to its short-term nature. |
Business combinations | (f) Business combinations Business combinations are recorded using the purchase method of accounting and, accordingly, the acquired assets and liabilities are recorded at their fair market value at the date of acquisition. Any excess of acquisition cost over the fair value of the acquired assets and liabilities, including identifiable intangible assets, is recorded as goodwill. |
Cash and cash equivalents | (g) Cash and cash equivalents Cash and cash equivalents consist of cash on hand and demand deposits, which are unrestricted as to withdrawal and use, and which have original maturities of three months or less. |
Restricted cash | (h) Restricted cash Any cash that is legally restricted from use is classified as restricted cash. As of December 31, 2021 and 2022, the restricted cash balances represent (i) $1,708,478 and $130,745, which related to collection and payment as a service for real estate developers. The withdrawal of the cash in bank is required to be pre-approved by real estate developers. (ii) $373,625 and $4,139,950, which was the full dispute amount and maximum damages of certain law suits, was frozen by the courts for law suits related and accounted for as restricted bank balances |
Marketable securities | (i) Marketable securities Marketable securities include securities that are classified as trading securities. Trading securities represent equity securities that are bought and held principally for the purpose of selling them in the near term, and they are reported at fair value, with both unrealized and realized gains and losses reported as other income (loss). The fair value of marketable securities is based upon the quoted price in an active market for identical instruments (Level 1). |
Customer deposits | (j) Customer deposits The Group provides online real estate e-commerce services for its developer customers. Some real estate developers require the Group to pay an upfront and refundable deposit to obtain the exclusive right to provide e-commerce services for a real estate development project. These deposits are refunded to the Group subject to certain pre-determined criteria specified in the deposit agreement. Customer deposits are recorded as either current or non-current assets based on the Group’s estimate of the date of refund. As of December 31, 2021 and 2022, the Group recognized $10,259,195 and $3,878,996 for expected credit loss against customer deposits which is mainly attributable to overdue customer deposits of $10,258,960 and $3,158,826. |
Investment in affiliates | (k) Investment in affiliates Affiliated companies are entities over which the Group has significant influence, but which it does not control. The Group generally considers an ownership interest of 20% in common stock or higher to represent a presumption that they are able to exert significant influence. Investments in affiliates are accounted for by the equity method of accounting. Under this method, the Group’s share of the post-acquisition profits or losses of affiliated companies is recognized in the income statement and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. Unrealized gains on transactions between the Group and its affiliated companies are eliminated to the extent of the Group’s interest in the affiliated companies; unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. When the Group’s share of losses in an affiliated company equals or exceeds its interest in the affiliated company, the Group does not recognize further losses, unless the Group has incurred obligations or made payments on behalf of the affiliated company. The Group is required to perform an impairment assessment of its investments whenever events or changes in business circumstances indicate that the carrying value of the investment may not be fully recoverable. An impairment loss is recorded when there has been a loss in value of the investment that is other than temporary. As of December 31, 2020 and 2021, the Group determined that no such events were presented. The Group did not record any impairment losses in any of the periods reported. |
Leases | (l) Leases On January 1, 2019, the Group adopted ASU No. 2016-02, Leases (Topic 842), as amended, which supersedes the lease accounting guidance under Topic 840, and generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. The Group elected to apply practical expedients permitted under the transition method that allow the Group to use the beginning of the period of adoption as the date of initial application, to not recognize lease assets and lease liabilities for leases with a term of twelve months or less, to not separate non-lease components from lease components, and to not reassess lease classification, treatment of initial direct costs, or whether an existing or expired contract contains a lease. The Group used modified retrospective method and did not adjust the prior comparative periods. Under the new lease standard, the Group determines if an arrangement is or contains a lease at inception. Right-of-use assets and liabilities are recognized at lease commencement date based on the present value of remaining lease payments over the lease terms. The Group considers only payments that are fixed and determinable at the time of lease commencement. ASC 842 requires a lessee to discount its unpaid lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate. As most of the Group’s leases do not provide an implicit rate, the Group uses its incremental borrowing rate as the discount rate for the lease. The Group’s incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any initial direct costs incurred less any lease incentives received. The Group’s lease terms may include options to extend or terminate the lease. Renewal options are considered within the right-of-use assets and lease liability when it is reasonably certain that the Group will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. |
Property and equipment, net | (m) Property and equipment, net Property and equipment is recorded at cost less accumulated depreciation. Depreciation is computed on a straight-line basis over the following estimated useful lives: Leasehold improvements Over the shorter of the lease term or their estimated useful lives Buildings 30 years Furniture, fixtures and equipment 3-5 years Motor vehicles 5 years Gains and losses from the disposal of property and equipment are included in income (loss) from operations. |
Intangible assets, net | (n) Intangible assets, net Acquired intangible assets mainly consist of the advertising agency agreement and license agreements with SINA, customer relationships, and database license are recorded at fair value on the acquisition date. All intangible assets, with the exception of customer relationships, are amortized ratably over the contract period. Intangible assets resulting out of acquired customer relationships are amortized based on the timing of the revenue expected to be derived from the respective customer. |
Impairment of long-lived assets | (o) Impairment of long-lived assets The Group evaluates its long-lived assets, such as fixed assets and purchased or acquired intangible assets with finite lives, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with ASC subtopic 360-10, Property, Plant and Equipment: Overall (“ASC 360-10”). When these events occur, the Group assesses the recoverability of the long-lived assets by comparing the carrying amount of the assets to future undiscounted net cash flow expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group will recognize an impairment loss equal to the excess of the carrying amount over the fair value of the assets. Impairment of long-lived assets were nil and nil as of December 31, 2021 and 2022, respectively. |
Income taxes | (p) Income taxes Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities, and their reported amounts in the financial statements, net operating loss carry-forwards and credits by applying enacted statutory tax rates applicable to future years when the reported amounts of the asset or liability are expected to be recovered or settled, respectively. Deferred tax assets are reduced by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. The Group only recognizes tax benefits related to uncertain tax positions when such positions are more likely than not of being sustained upon examination. For such positions, the amount of tax benefit that the Group recognizes is the largest amount of tax benefit that is more than fifty percent likely of being sustained upon the ultimate settlement of such uncertain position. The Group records interest and penalties as a component of income tax expense. |
Share-based compensation | (q) Share-based compensation Share-based compensation expense is measured on the grant date of the share award, based on the fair value of the award, and recognized as an expense over the requisite service period. Management has made an estimate of expected forfeitures and recognizes compensation cost only for those equity awards expected to vest. |
Revenue recognition | (r) Revenue recognition The Group generates real estate online revenues principally from e-commerce, online advertising, and listing services and enters into separate contracts with its customers under each revenue stream. Revenues are recorded, after considering reductions by estimates for refund allowances and sales related taxes. The Group has adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and all subsequent ASUs that modified ASC 606 on January 1, 2018 and has elected to apply it retrospectively for the year ended December 31, 2018. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the Group applies the following steps: ● Step 1: Identify the contract(s) with a customer ● Step 2: Identify the performance obligations in the contract ● Step 3: Determine the transaction price ● Step 4: Allocate the transaction price to the performance obligations in the contract ● Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation China’s real estate industry experienced a steep downturn since the second half of 2021 and many real estate developers faced severe operational challenges. This had a direct and negative impact on the Group’s online advertising and e-commerce businesses. Due to the continuous decline of the real estate industry, the recoverable amount and time of some customers’ transaction consideration cannot be reasonably expected. Since January 1, 2022, the Group has not recognized the revenue from such customers until the actual receipt of the transaction consideration. E-commerce of discount coupons The Group offers individual property buyers discount coupons that enable them to purchase specified properties from real estate developers at discounts greater than the face value of the fees charged by the Group. Discount coupons are collected initially upfront from the property buyers and are refundable at any time before they are used to purchase the specified properties. As such, these fees are recorded as advance from customers in the Group’s consolidated balance sheets. In this context, the Group determines its customers to be individual property buyers and has identified one single performance obligation to be the sale of discount coupons. The Group determines the sale of discount coupons to be satisfied at a point in time only when confirmation letters are obtained from its customers or developers that prove the use of the coupons. The transaction price is the discount coupon fees charged by the Group which is fixed in the contract with individual property buyers. E-commerce of commission coupons The Group issues commission coupons and provides an information platform to individual brokers on which they can refer potential individual property buyers to real estate developers with whom the Group works. As long as the potential buyers who were referred by individual brokers reach a specific sale with the real estate developer, the individual brokers would redeem the commission coupons for the successful referrals, the group could earn the commission from the developer for the successful referrals. In this case, the Group has identified its clients as real estate developers and has identified a single performance obligation to provide the developer with successful referrals of the property purchases. The Group will recognize service revenue at a certain point in time when the obligations were fulfilled which were confirmed by real estate developers. Any commissions and other payments received in advance will be deferred until the obligations are fulfilled. The transaction price is the commission charged by the Group and is fixed in the confirmation letter. The Group will pay commissions for the individual brokers’ successful referrals only after the redemption of the commission coupons and the confirmation of the successful referrals of properties from real estate developers. The Group has the discretion to determine the amount of commission paid for the individual brokers’ successful referrals. Set out below is the disaggregation of the Group’s revenue from E-commerce: Year Ended December 31, 2020 2021 2022 $ $ $ E-commerce of discount coupons 547,895,262 411,097,123 182,940,792 E-commerce of commission coupons — — 95,522,903 Total revenue from E-commerce 547,895,262 411,097,123 278,463,695 Online advertising In respect of the online advertising services, the Group mainly provides comprehensive advertisement placement services to the advertisers (i.e., property developers) through a packaged online cross-media and cross-platform product portfolio, including those owned by the Group and other independent outlets. Management considers the Group acts as principal in this arrangement when the Group is a contracting party to its advertisers and is primarily responsible for delivering the specified service to the advertisers. The Group controls the specified service before that service is transferred to an advertiser, because (i) the Group has the discretion to decide which media outlets to use and what type of the advertisements to be placed; (ii) the Group is subject to certain risk of loss to the extent that the cost paid to the media outlets, which is charged to the Group based on a number of methodology, including viewership (CPM) or click (CPC) or others, cannot be compensated by the total consideration obtained from the advertisers; and (iii) the Group has the discretion to determine the fee charged to the advertisers, which affects the Group’s margin as the costs incurred might vary. Therefore the Group reports revenue earned from the advertisers and costs paid to media outlets related to these transactions on a gross basis. In addition, management considers the Group acts as an agent for those arrangements that the Group only earns agreed rebates from certain media outlets and recognizes such rebates as revenue on a net basis. Media outlets grant the Group rebates in the form of prepayments for the media outlets’ services or cash, mainly based on the gross spending of the advertisers. In some circumstances, the Group will share with its advertisers certain amount of the rebates earned from the media outlets, which is accounted for as a reduction of the rebates, and the Group recognizes such net amount of rebates as revenue. Listing Listing services entitle real estate brokers to post and make changes to information for properties in a particular area on the website for a specified period of time, in exchange for a fixed fee. In this context, the Group determines its customers to be real estate brokers and has identified a single performance obligation that is recognized over time on a straight-line basis over the contract period of display and when collection is probable. The transaction price is the fixed fee outlined in the contract. No rebates are given to the real estate brokers. Contract balances The Group does not have unconditional right to the consideration for advertising or listing services until all promises have been fulfilled and therefore initially records a contract asset when recognizing revenue. Upon fulfillment of all advertising or listing services, contract assets will be reclassified as a receivable. Contract assets, net, recognized were $1,415,241 and nil as of December 31, 2021 and 2022 respectively. Disaggregation of revenue In accordance with ASC 606-10-50, the Group believes the disaggregation of revenue from contracts with customers by e-commerce, online advertising and listing to sufficiently achieve the disclosure objective of depicting how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Practical Expedients and Exemptions For the Group’s contracts that have an original duration of one Financing Component In determining the transaction price, the Group adjusts the promised amount of consideration to determine the cash selling price of the service to be delivered and reflect the time value of money if the contract has a significant financing component. As a result of the adjustment to the transaction price, the Group recognized interest income amounting to $4,454,077, nil and nil for the years ended December 31, 2020, 2021 and 2022, respectively. |
Cost of revenue | (s) Cost of revenue Cost of revenue consists of costs associated with the production of websites, which includes fees paid to third parties for internet connection, content and services, editorial personnel related costs, amortization of intangible assets, depreciation associated with website production equipment and fees paid to media outlets for advertising resources. |
Marketing and advertising expenses | (t) Marketing and advertising expenses Marketing and advertising expenses consist primarily of targeted online and offline marketing costs for promoting the Group’s e-commerce projects and the Group’s own brand building, such as Leju property visit, sponsored marketing campaigns, online or print advertising, public relations and sponsored events. The Group expenses all marketing advertising costs as incurred and record these costs within “Selling, general and administrative expenses” on the consolidated statements of operations when incurred. The nature of the Group’s direct marketing activities is such that they are intended to attract subscribers for the online advertising and potential property buyers to purchase the discount coupons. The Group incurred marketing and advertising expenses amounting to $523,315,406, $442,975,679 and $237,268,507 for the years ended December 31, 2020, 2021 and 2022, respectively. |
Commissions under commission coupons business | (u) Commissions under commission coupons business Commissions under commission coupons business are the fee paid for individual brokers’ successful referrals, upon the redemption of the commission coupons and confirmation from the real estate developer. The Group expenses all real estate agent commissions as incurred and records these costs within “Selling, general and administrative expenses” on the consolidated statements of operations when incurred. The Group incurred commissions amounting to nil, nil and $91,338,490 for the years ended December 31, 2020, 2021 and 2022, respectively. Any fee from the redemption of the commission coupons would be netted the commissions for individual brokers’ successful referrals on the consolidated statements of operations. |
Foreign currency translation and transaction | (v) Foreign currency translation and transaction The functional currency of the Company is the United States dollar (“U.S. dollar”) and is used as the reporting currency of the Group. Monetary assets and liabilities denominated in currencies other than the U.S. dollar are translated into U.S. dollar at the rates of exchange ruling at the balance sheet date. Equity accounts are translated at historical exchange rates and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as foreign currency translation adjustment and are shown as a separate component of other comprehensive income (loss) in the consolidated statements of changes in equity and comprehensive income (loss). The financial records of certain of the Company’s subsidiaries are maintained in local currencies other than the U.S. dollar, such as Renminbi (“RMB”) and Hong Kong dollar (“HKD”), which are their functional currencies. Transactions in other currencies are recorded at the rates of exchange prevailing when the transactions occur. Transaction gains and losses are recognized in the consolidated statements of operations. The Group recorded exchange losses $815,656 and $431,686, exchange gain $1,217,262 for the years ended December 31, 2020, 2021 and 2022, respectively, as a component of other income (loss), net, in the consolidated statements of operations. |
Government subsidies | (w) Government subsidies Government subsidies include cash subsidies received by the Company’s subsidiaries and VIEs in the PRC from local governments. These subsidies are generally provided as incentives for conducting business in certain local districts and are typically granted based on the amount of value-added tax, and income tax generated by the Group in certain local districts. Such subsidies allow the Group full discretion in utilizing the funds and are used by the Group for general corporate purposes. The local governments have final discretion as to the amount of cash subsidies. Cash subsidies of $380,849, $560,394 and $297,663 were included in other operating income for the years ended December 31, 2020, 2021 and 2022, respectively. Subsidies are recognized when cash is received and when all the conditions for their receipt have been satisfied. |
Concentration of credit risk | (x) Concentration of credit risk Financial instruments that potentially expose the Group to concentrations of credit risk consist primarily of cash and cash equivalents, accounts receivable and customer deposits. The Group deposits its cash and cash equivalents in the reputable financial institutions. Prior to January 1, 2020, the Group regularly reviews the creditworthiness of its customers, and requires collateral or other security from its customers in certain circumstances when accounts receivables’ aging is over one year. The Group establishes an allowance for credit losses primarily based upon factors surrounding the credit risk of specific customers, including creditworthiness of the clients, aging of the receivables and other specific circumstances related to the accounts. Accounts receivable balances are written off after all collection efforts have been exhausted. The Group adopted Accounting Standard Update (ASU) 2016-13, Financial Instruments-Credit Losses (codified as Accounting Standard Codification Topic 326), since January 1, 2020, which requires measurement and recognition of current expected credit losses for financial instruments held at amortized cost. The Group’s accounts receivable and contract assets, customer deposits, other receivables recorded in prepayments and other current assets and amounts due from related parties are within the scope of ASC Topic 326. To estimate expected credit losses, the Group has identified the relevant risk characteristics of its customers and these receivables are assessed on an individual basis for customers with good credit rating (strategic type customers), with pledged credit risk (pledged type customers), with high credit risk (high risk type customers) and the remaining (normal risk type customers). For each customer, the Group considers historical settlement pattern, past default experience of the debtor, overall economic environment in which the debtors operate, and also the assessment of both current and future development of environment as of the date when this report issued. This is assessed at each quarter based on the Group’s specific facts and circumstances. Balances of the allowance for credit losses for accounts receivable and contract assets by each risk category are as follows: Year Ended December 31, 2021 2022 $ $ Balances of customers with good credit rating — — Balances of customers with pledged credit risk 1,126,119 2,354,182 Balances of customers with high credit risk 112,183,037 105,189,074 Balances of customers with normal risk 2,065,475 4,305,326 115,374,631 111,848,582 Movement of the allowance for credit losses for accounts receivable and contract assets is as follows: Year Ended December 31, 2020 2021 2022 $ $ $ Balance as of January 1 16,108,520 12,683,779 115,374,631 Provisions 4,535,063 101,172,959 9,148,173 Write-offs (8,809,126) (600,847) (2,665,754) Changes due to foreign exchange 849,322 2,118,740 (10,008,468) Balance as of December 31 12,683,779 115,374,631 111,848,582 Movement of the allowance for other receivables in prepaid expenses and other current assets, is as follows: Year Ended December 31, 2020 2021 2022 $ $ $ Balance as of January 1 — 335,386 150,770 Provisions/(reversal) 335,386 (190,200) 434,867 Write-offs — — — Changes due to foreign exchange — 5,584 (29,674) Balance as of December 31 335,386 150,770 555,963 Movement of the allowance for customer deposits, is as follows: Year Ended December 31, 2020 2021 2022 $ $ $ Balance as of January 1 — 3,480 10,259,195 Provisions 3,480 10,286,671 4,035,869 Write-offs — — (10,216,240) Changes due to foreign exchange — (30,956) (199,828) Balance as of December 31 3,480 10,259,195 3,878,996 Movement of the allowance for amount due from related parties, is as follows: Year Ended December 31, 2020 2021 2022 $ $ $ Balance as of January 1 — 3,188 1,175 Provisions/(reversal) 3,188 (2,034) (346) Write-offs — — — Changes due to foreign exchange — 21 (86) Balance as of December 31 3,188 1,175 743 Movement of the allowance for other non-current assets, is as follows: As of December 31, 2022 $ Balance as of January 1 — Provisions 124,995 Write-offs — Changes due to foreign exchange (4,865) Balance as of December 31 120,130 Details of the accounts receivable and contract assets from customers accounting for 10% or more of total accounts receivable and contract assets are as follows: As of December 31, 2021 2022 Customer A $ $ Accounts receivable, gross 96,510,078 88,285,716 Allowance for credit losses (96,510,078) (88,285,716) Accounts receivable, net — — |
Income (Loss) per share | (y) Income (Loss) per ADS Basic income (loss) per ADS is computed by dividing income (loss) attributable to holders of ADS by the weighted average number of ADS outstanding during the period. Diluted income (loss) per ADS reflects the potential dilution that could occur if securities or other contracts to issue ADS were exercised or converted into ADS. The following table sets forth the computation of basic and diluted income (loss) per ADS for the periods indicated: Year Ended December 31, 2020 2021 2022 Net income (loss) attributable to Leju ordinary shareholders—basic and diluted $ 19,302,238 $ (150,933,535) $ (89,668,194) Weighted average number of ADS outstanding—basic 13,607,079 13,665,216 13,704,238 Stock options and restricted shares 149,378 — — Weighted average number of ADS outstanding-diluted 13,756,457 13,665,216 13,704,238 Basic income (loss) per ADS $ 1.42 $ (11.05) $ (6.54) Diluted income (loss) per ADS $ 1.40 $ (11.05) $ (6.54) Diluted income (loss) per ADS reflects the potential dilution that could occur if securities or other contracts to issue ADS were exercised or converted into ADS. Diluted income (loss) per ADS does not include the following instruments as their inclusion would have been anti-dilutive: Year Ended December 31, 2020 2021 2022 Share options and restricted shares 7,207,045 15,617,986 15,156,318 |
Non-controlling interest | (z) Non-controlling interest Non-controlling interest classified as a separate line item in the equity section and disclosures in the Company’s consolidated financial statements have distinguished the interest of Leju from the interest of non-controlling interest holders. |
Comprehensive income (loss) | (aa) Comprehensive income (loss) Comprehensive income (loss) includes all changes in equity except those resulting from investments by owners and distributions to owners. For the years presented, total comprehensive income (loss) includes net income (loss) and foreign currency translation adjustments. |
Impact of newly adopted accounting pronouncement | (ab) Impact of newly adopted accounting pronouncement In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805) – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”, which requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606, as if it had originated the contracts. Prior to this ASU, an acquirer generally recognizes contract assets acquired and contract liabilities assumed that arose from contracts with customers at fair value on the acquisition date. The ASU is effective for fiscal years beginning after December 15, 2022, with early adoption permitted. The ASU is to be applied prospectively to business combinations occurring on or after the effective date of the amendment (or if adopted early as of an interim period, as of the beginning of the fiscal year that includes the interim period of early application). The Company adopted this guidance on January 1, 2022 with no material impact on its audited consolidated financial statements. |
Recent issued accounting pronouncements not yet adopted | (ac) Recent issued accounting pronouncements not yet adopted In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820) – Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”, which clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. This guidance also requires certain disclosures for equity securities subject to contractual sale restrictions. The new guidance is required to be applied prospectively with any adjustments from the adoption of the amendments recognized in earnings and disclosed on the date of adoption. This guidance is effective for the Group for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted. The ASU is currently not expected to have a material impact on the Company’s consolidated financial statements |
Organization and Principal Ac_2
Organization and Principal Activities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization and Principal Activities | |
Schedule of major subsidiaries and consolidated VIEs | Date of Place of Percentage of Incorporation Incorporation Ownership Shanghai SINA Leju Information Technology Co., Ltd (“Shanghai SINA Leju”) 08-May-08 PRC 100 % E-House City Re-House Real Estate Agency (Shanghai) Co., Ltd (“City Re-House”) 04-Mar-10 PRC 100 % Shanghai Yi Yue Information Technology Co., Ltd (“Shanghai Yi Yue”) 16-Sep-11 PRC 100 % Beijing Maiteng Fengshun Science and Technology Co., Ltd (“Beijing Maiteng”) 04-Jan-12 PRC 84 % Beijing Yisheng Leju Information Services Co., Ltd. (“Beijing Leju”) 13-Feb-08 PRC VIE Shanghai Leju Hao Fang Information Service Co., Ltd. (“Leju Hao Fang”) (formerly known as Shanghai Yi Xin E-Commerce Co., Ltd.) 05-Dec-11 PRC VIE Beijing Jiajujiu E-Commerce Co., Ltd. (“Beijing Jiajujiu”) 22-Mar-12 PRC VIE |
Summary of Principal Accounti_3
Summary of Principal Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Schedule of foreign owned subsidiaries economic ownership in variable interest entities | Foreign Owned Name of Foreign Subsidiaries’ Owned Economic Ownership Subsidiaries of VIES Name of VIEs Activities of VIEs Shanghai SINA Leju 100 % Beijing Leju Operate the online advertising and listing business Shanghai Yi Yue 100 % Leju Hao Fang Operate the e-commerce business Beijing Maiteng 100 % Beijing Jiajujiu Operate the online home furnishing business |
Schedule of financial statement amounts and balances of the Group's VIEs | As of December 31, 2021 2022 $ $ Cash and cash equivalents 199,808,985 90,795,643 Restricted cash 1,953,803 4,270,695 Accounts receivable, net 34,485,667 2,627,814 Contract assets, net 1,415,241 — Customer deposits, net 783,995 3,860,127 Amounts due from related parties, net 3,834,986 2,289,594 Other current assets, net 23,934,283 4,007,633 Total current assets 266,216,960 107,851,506 Total non-current assets 63,522,807 47,690,614 Total assets 329,739,767 155,542,120 Accounts payable 1,631,401 653,700 Accrued payroll and welfare expenses 19,962,938 10,717,186 Income tax payable 31,400,562 — Other tax payable 16,992,077 8,684,712 Amounts due to related parties 2,693,624 668,153 Advances from customers 82,626,840 43,096,996 Lease liabilities, current 5,556,351 5,013,721 Accrued marketing and advertising expenses 42,180,152 29,533,704 Other current liabilities 16,383,879 10,317,192 Total current liabilities 219,427,824 108,685,364 Deferred tax liabilities 314,763 435,848 Lease liabilities, non-current 19,437,887 15,400,328 Total liabilities 239,180,474 124,521,540 Year Ended December 31, 2020 2021 2022 $ $ $ Total revenues 718,861,490 533,619,355 343,170,910 Cost of revenues (65,612,576) (47,730,331) (24,394,266) Net income (loss) 14,278,316 (81,530,172) (10,882,414) Net cash provided by/ (used in) operating activities 100,460,964 (41,427,975) (93,191,543) Net cash provided by/ (used in) investing activities (1,068,664) 431,057 (73,872) Net cash provided by/ (used in) financing activities — — — |
Schedule of property, plant and equipment, useful life | Leasehold improvements Over the shorter of the lease term or their estimated useful lives Buildings 30 years Furniture, fixtures and equipment 3-5 years Motor vehicles 5 years |
Schedule of movement of the allowance for doubtful accounts for accounts receivable | Year Ended December 31, 2020 2021 2022 $ $ $ Balance as of January 1 16,108,520 12,683,779 115,374,631 Provisions 4,535,063 101,172,959 9,148,173 Write-offs (8,809,126) (600,847) (2,665,754) Changes due to foreign exchange 849,322 2,118,740 (10,008,468) Balance as of December 31 12,683,779 115,374,631 111,848,582 |
Schedule of allowances for other receivables | Year Ended December 31, 2020 2021 2022 $ $ $ Balance as of January 1 — 335,386 150,770 Provisions/(reversal) 335,386 (190,200) 434,867 Write-offs — — — Changes due to foreign exchange — 5,584 (29,674) Balance as of December 31 335,386 150,770 555,963 |
Schedule of allowance for customer deposits | Year Ended December 31, 2020 2021 2022 $ $ $ Balance as of January 1 — 3,480 10,259,195 Provisions 3,480 10,286,671 4,035,869 Write-offs — — (10,216,240) Changes due to foreign exchange — (30,956) (199,828) Balance as of December 31 3,480 10,259,195 3,878,996 |
Schedule of allowance for amount due from related parties | Year Ended December 31, 2020 2021 2022 $ $ $ Balance as of January 1 — 3,188 1,175 Provisions/(reversal) 3,188 (2,034) (346) Write-offs — — — Changes due to foreign exchange — 21 (86) Balance as of December 31 3,188 1,175 743 |
Schedule of the computation of basic and diluted income (loss) per ADS | Year Ended December 31, 2020 2021 2022 Net income (loss) attributable to Leju ordinary shareholders—basic and diluted $ 19,302,238 $ (150,933,535) $ (89,668,194) Weighted average number of ADS outstanding—basic 13,607,079 13,665,216 13,704,238 Stock options and restricted shares 149,378 — — Weighted average number of ADS outstanding-diluted 13,756,457 13,665,216 13,704,238 Basic income (loss) per ADS $ 1.42 $ (11.05) $ (6.54) Diluted income (loss) per ADS $ 1.40 $ (11.05) $ (6.54) |
Schedule of antidilutive securities excluded from computation of diluted income (loss) per share | Year Ended December 31, 2020 2021 2022 Share options and restricted shares 7,207,045 15,617,986 15,156,318 |
Schedule of disaggregation of the group's revenue from E-commerce | Year Ended December 31, 2020 2021 2022 $ $ $ E-commerce of discount coupons 547,895,262 411,097,123 182,940,792 E-commerce of commission coupons — — 95,522,903 Total revenue from E-commerce 547,895,262 411,097,123 278,463,695 |
Schedule of balances of allowance for credit losses for accounts receivable and contract assets by each risk category | Year Ended December 31, 2021 2022 $ $ Balances of customers with good credit rating — — Balances of customers with pledged credit risk 1,126,119 2,354,182 Balances of customers with high credit risk 112,183,037 105,189,074 Balances of customers with normal risk 2,065,475 4,305,326 115,374,631 111,848,582 |
Schedule of movement of allowance for other non-current assets | As of December 31, 2022 $ Balance as of January 1 — Provisions 124,995 Write-offs — Changes due to foreign exchange (4,865) Balance as of December 31 120,130 |
Customer risk | Accounts receivable | |
Schedule of concentration risk | As of December 31, 2021 2022 Customer A $ $ Accounts receivable, gross 96,510,078 88,285,716 Allowance for credit losses (96,510,078) (88,285,716) Accounts receivable, net — — |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Summary of future lease payments under operating leases | As of December 31, 2022 $ 2023 5,194,655 2024 4,572,378 2025 4,344,044 2026 4,064,720 2027 4,205,218 Then thereafter 1,027,182 Total future lease payments 23,408,197 Impact of discounting remaining lease payments (2,930,806) Total lease liabilities 20,477,391 Lease liabilities, current 5,037,796 Lease liabilities, non-current 15,439,595 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property and Equipment, Net | |
Schedule of property and equipment, net | As of December 31, 2021 2022 $ $ Furniture, fixtures and equipment 11,119,445 9,160,115 Leasehold improvements 5,269,934 4,238,863 Buildings 12,085,843 11,742,004 Motor vehicles 1,120,551 806,712 Total 29,595,773 25,947,694 Accumulated depreciation (12,928,492) (11,743,331) Property and equipment, net 16,667,281 14,204,363 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets, Net | |
Schedule of intangible assets, net | Weighted Average Remaining Amortization As of December 31, Period in Years 2021 2022 $ $ Intangible assets subject to amortization are comprised of the following: Advertising agency agreement with SINA 106,790,000 106,790,000 1.25 License agreements with SINA 80,660,000 80,660,000 1.25 Computer software licenses 2,432,242 1,841,885 1.96 Total intangible assets, gross 189,882,242 189,291,885 1.26 Less: Accumulated amortization Advertising agency agreement with SINA 93,670,998 99,725,921 License agreements with SINA 70,902,383 75,405,899 Computer software licenses 2,011,103 1,701,890 Total accumulated amortization 166,584,484 176,833,710 Total intangible assets, net 23,297,758 12,458,175 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Borrowings | |
Schedule of short term borrowings | As of December 31, 2021 2022 $ $ Short‑term borrowings 784,230 717,915 |
Other Income (Loss), Net (Table
Other Income (Loss), Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income (Loss), Net | |
Schedule of other income (loss), net | Year Ended December 31, 2020 2021 2022 $ $ $ Realized gain on marketable securities — 2,127,985 31,891 Unrealized gain (loss) on marketable securities 850,402 (1,722,700) — Income (loss) from sales of properties held for sales 14,141 (17,430) 742 Foreign exchange gain (loss) (815,656) (431,686) 1,217,262 Others 251,169 252,706 246,497 Total 300,056 208,875 1,496,392 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax | |
Schedule of components of income (loss) before income taxes | Year Ended December 31, 2020 2021 2022 $ $ $ Income (loss) before income taxes: PRC 40,605,716 (148,696,060) (99,596,774) Outside of PRC (8,918,616) (14,711,876) (2,197,049) Total 31,687,100 (163,407,936) (101,793,823) |
Schedule of expenses (benefits) for income taxes | Year Ended December 31, 2020 2021 2022 $ $ $ Current Tax PRC 2,725,114 (1,409,996) (32,295,286) Outside of PRC 6,600 4,895 276 2,731,714 (1,405,101) (32,295,010) Deferred Tax PRC 7,933,308 (12,092,683) 20,174,775 Outside of PRC — — — 7,933,308 (12,092,683) 20,174,775 Income tax expense (benefits) 10,665,022 (13,497,784) (12,120,235) |
Schedule of principal components of the deferred income tax assets/liabilities | As of December 31, 2021 2022 $ $ Deferred tax assets: Accrued salary expenses 4,987,961 2,792,431 Bad debt provision 28,843,655 29,096,796 Net operating loss carry-forwards 40,000,359 24,801,075 Advertising expenses 1,441,682 1,013,274 Accrued expense 2,434,194 8,862,609 Others 629,598 508,950 Gross deferred tax assets 78,337,449 67,075,135 Valuation allowance (26,732,045) (41,617,648) Total deferred tax assets 51,605,404 25,457,487 Deferred tax liabilities: Intangible assets from acquisition and other assets 6,042,540 3,517,837 Total deferred tax liabilities 6,042,540 3,517,837 |
Schedule of movement of the valuation allowance | Year Ended December 31, 2020 2021 2022 $ $ $ Balance as of January 1 (5,634,684) (5,714,480) (26,732,045) Reversal/(Additions) 291,962 (20,905,451) (17,978,965) Write-offs — 393,251 138,479 Changes due to exchange rate translation (371,758) (505,365) 2,954,883 Balance as of December 31 (5,714,480) (26,732,045) (41,617,648) |
Schedule of reconciliation between the provision for income tax computed by applying the statutory tax rate to income before income taxes and the actual provision for income taxes | Year Ended December 31, 2020 2021 2022 PRC income tax rate 25.00 % 25.00 % 25.00 % Share based compensation expenses not deductible for tax purposes 2.35 % (0.25) % (0.45) % Other expenses not deductible for tax purposes (0.12) % 0.17 % 0.30 % Effect of tax holiday (0.27) % (5.29) % (5.15) % Effect of different tax rate of subsidiary operation in other jurisdiction 3.20 % (2.00) % (0.09) % Valuation allowance movement (0.82) % (12.37) % (8.17) % Withholding tax 4.32 % 3.01 % 0.48 % 33.66 % 8.27 % 11.92 % |
Schedule of the aggregate amount and per share effect of the tax holiday | Year Ended December 31, 2020 2021 2022 $ $ $ The aggregate dollar effect 85,461 (8,646,324) (5,247,214) Per ADS effect—basic 0.01 (0.63) (0.38) Per ADS effect—diluted 0.01 (0.63) (0.38) |
Share-Based Compensation (Table
Share-Based Compensation (Tables) - Leju Plan | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Compensation | |
Schedule of assumptions used to estimate the fair value of share options granted | 2021 Risk-free rate of return 1.56 % Contractual life of option 10 years Estimated volatility 72.06 % Dividend yield 0.00 % |
Summary of option activities | Weighted Average Remaining Aggregate Weighted Contractual Intrinsic Number of Average Term Value of Options Exercise Price (in years) Options $ $ Outstanding, as of January 1, 2022 15,617,986 2.72 5.71 Granted — — Exercised — — — Forfeited (728,336) 3.19 Outstanding, as of December 31, 2022 14,889,650 2.70 4.74 Vested and expected to vest as of December 31, 2022 14,555,100 2.74 4.66 Exercisable as of December 31, 2022 12,146,984 3.11 3.94 |
Summary of restricted share activities | Weighted Number of Average Restricted Grant-date Shares Fair Value $ Outstanding, as of January 1, 2022 616,668 1.52 Granted — — Vested 350,000 1.54 Forfeited — — Outstanding, as of December 31, 2022 266,668 1.50 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Information | |
Schedule of the revenue information of the Group | Year Ended December 31, 2020 2021 2022 $ $ $ E-commerce of disount coupons 547,895,262 411,097,123 182,940,792 E-commerce of commission coupons — — 95,522,903 Online advertising 170,782,688 122,522,232 64,707,215 Listing 848,033 497,615 11,274 719,525,983 534,116,970 343,182,184 |
Related Party Balances and Tr_2
Related Party Balances and Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Schedule of major related parties and their relationships | Company Name Relationship with the Group E-House Enterprise Mr. Xin Zhou, executive chairman of Leju, is E-House Enterprise’s chairman. E-House Enterprise was a subsidiary of E-House before it became a listed company in Hong Kong in July, 2018.Leju became a subsidiary of E-House Enterprise as of November 4, 2020. E-House Under the common control of E-House Holdings until December 30, 2016, and E-House Holdings was the largest shareholder from December 31, 2016 to November 4, 2020. Mr. Xin Zhou, executive chairman of Leju, is E-House’s ultimate controller. (Note 1). SINA A shareholder with significant influence Tencent Holdings Ltd. or certain of its affiliates (“Tencent”) A shareholder with significant influence Alibaba Investment Ltd. or certain of its affiliates (“Alibaba”) A shareholder with significant influence on TM Home, the Company’s controlling shareholder, since November 4, 2021. (Note 1) Shanghai Tianji Network Services Ltd. (“Tianji Network”) (formerly known as Shanghai Yunchuang Information & Technology Ltd.) Mr. Xin Zhou, executive chairman of Leju, is Tianji Network’s ultimate controller by May 2021. Tianji Network became a subsidiary of E-House Enterprise since May 2021. Yunnan Huixiangju Information & Consultant Ltd. (“Huixiangju”) One of the Group’s investment affiliates and the Group owns 51% equity interest and has significant influence Suzhou Qianyisheng Information & Consultant Ltd. (“Qianyisheng”) One of the Group’s investment affiliates and the Group owns 19% equity interest and has significant influence Qianyisheng dissolved in July, 2022. Shanghai Quanzhuyi Home Furnishing Accessories Ltd. (“QuanZhuYi”) One of the Group’s investment affiliates and the Group owns 13.5% equity interest and has significant influence Jupai Holdings Ltd. (“Jupai”) Mr. Xin Zhou, executive chairman of Leju, is Jupai’s director. E-House Holdings has significant influence on Jupai and Leju |
Schedule of significant related party transactions | Year Ended December 31, 2020 2021 2022 $ $ $ Corporate service provided by E-House under service agreements 1,910,204 1,352,382 — Corporate service provided by E-House Enterprise — — 1,335,164 Online advertising resources fee recognized as cost of revenues purchased from SINA 29,322,241 10,078,875 110,464 Online advertising resources fee recognized as cost of revenues purchased from Tencent 17,790,501 18,671,019 14,787,449 Services purchased from/rental cost paid to E-House 764,952 886,866 700,726 Services purchased from E-House Enterprise 21,429,920 20,557,777 7,694,981 Services purchased from Alibaba (Note A) * 875,072 855,183 Services purchased from Jupai 34,160 — 24,372 Services purchased from Tianji Network (Note B) 493,176 69,762 — Total services purchased from related parties 71,745,154 52,491,753 25,508,339 Online advertising services provided to E-House — 484,185 — Services provided to E-House Enterprise 1,392,190 36,334 — Services provided to Investing affiliates 2,393,204 548,075 109,934 Total online advertising services provided to related parties 3,785,394 1,068,594 109,934 Fee paid to Tencent for advertising resources on behalf of customers (Note C) 43,083,548 2,502,309 1,798,079 |
Schedule of amounts due from related parties | As of December 31, 2021 2022 $ $ Investing affiliates (1) 708 — Tencent (2) 3,581,609 1,855,275 Alibaba(3) 332,243 498,258 E-House (4) — 123,010 Allowance for current expected credit losses (1,175) (743) Total 3,913,385 2,475,800 |
Schedule of amounts due to related parties | As of December 31, 2021 2022 $ $ E-House (4) 2,201,127 — SINA (5) 1,479,957 1,382,173 Investing affiliates (1) — 124,208 E-House Enterprise (6) 3,950,839 3,298,210 Total 7,631,923 4,804,591 (1) The amounts due from affiliates as of December 31, 2021 represent the expense paid on behalf of Qianyisheng. The amounts due to affiliates as of December 31, 2022 represent the advance from Huixiangju. (2) The amounts due from Tencent as of December 31, 2021 and 2022 represent prepaid fees for online advertising resources. (3) The amounts due from Alibaba as of December 31 2022 and 2022 represent prepaid fees for online advertising resources and technical service. (4) The amount due to E-House as of December 31, 2021 was primarily for the payable for corporate service fees charged by E-House. The amount due from E-House as of December 31, 2022 was primarily for the prepayment for the service purchased from E-House. (5) The amounts due to SINA as of December 31, 2021 and 2022 represents payable for online advertising resources fee. (6) The amounts due to E-House Enterprise as of December 31, 2021 and 2022 represent net results for receivable for online advertising revenue from E-House Enterprise and payable for marketing service fees charged by E-House Enterprise. |
E-House | |
Schedule of rollforward of the payable to / (receivable from) balance with related party | Year Ended December 31, 2020 2021 2022 $ $ $ Balance at January 1 (555,652) 129,566 2,201,127 Corporate service provided by E-House under services agreements (A) 1,910,204 1,352,382 — Service provided to E-House (A) — (484,185) — Service purchased from/rental cost paid to E-House (A) 764,952 886,866 700,726 Net received/(payment) (B) (1,989,938) 316,498 (3,024,863) Balance at December 31 129,566 2,201,127 (123,010) As of December 31, 2021 2022 $ $ Net results for service fee (A and B) 2,201,127 (123,010) Amounts due/(from) to E-House 2,201,127 (123,010) (A) Represents the services provided by or to E-House. (B) Represents net cash flow for activities between the Company and E-House. |
E-House Enterprise | |
Schedule of rollforward of the payable to / (receivable from) balance with related party | Year Ended December 31, 2020 2021 2022 $ $ $ Balance at January 1 (906,009) 2,238,543 3,950,839 Corporate service provided by E-House Enterprise (C) — — 1,335,164 Service provided to E-House Enterprise (C) (1,392,190) (36,334) — Service purchased from E-House Enterprise (C) 21,429,920 20,557,777 7,694,981 Net payment (D) (16,893,178) (18,809,147) (9,682,774) Balance at December 31 2,238,543 3,950,839 3,298,210 (C) Represents services provided by or to E-House Enterprise. (D) Represents net cash flow for the activities between the Company and E-House Enterprise. |
Organization and Principal Ac_3
Organization and Principal Activities (Details) | May 20, 2022 | Nov. 24, 2021 shares | Nov. 04, 2020 shares | Dec. 30, 2016 USD ($) shares | Dec. 31, 2022 |
Major subsidiaries and the consolidated VIEs | |||||
Share split ratio | 10 | ||||
SINA | Leju Holdings Limited | |||||
Major subsidiaries and the consolidated VIEs | |||||
Shares purchased from related party | 24,475,251 | ||||
Zhou Parties [Member] | Leju Holdings Limited | |||||
Major subsidiaries and the consolidated VIEs | |||||
Shares purchased from related party | 51,925,996 | ||||
E-House | Reportable Legal Entities | SINA | |||||
Major subsidiaries and the consolidated VIEs | |||||
Total ordinary shares repurchased, ordinary shares transferred (in shares) | 40,651,187 | ||||
Total cash consideration for repurchase of ordinary shares | $ | $ 129,038,150 | ||||
E-House Enterprise | Leju Holdings Limited | |||||
Major subsidiaries and the consolidated VIEs | |||||
Shares purchased from related party | 76,401,247 | ||||
Shanghai SINA Leju | |||||
Major subsidiaries and the consolidated VIEs | |||||
Ownership percentage | 100% | ||||
City RE-House | |||||
Major subsidiaries and the consolidated VIEs | |||||
Ownership percentage | 100% | ||||
Shanghai Yi Yue | |||||
Major subsidiaries and the consolidated VIEs | |||||
Ownership percentage | 100% | ||||
Beijing Maiteng | |||||
Major subsidiaries and the consolidated VIEs | |||||
Ownership percentage | 84% | ||||
E-House Enterprise | TM Home Limited | |||||
Major subsidiaries and the consolidated VIEs | |||||
Ownership percentage | 70.23% | ||||
Shares purchased from related party | 76,401,247 | ||||
Alibaba Investment Limited | TM Home Limited | |||||
Major subsidiaries and the consolidated VIEs | |||||
Ownership percentage | 29.77% |
Summary of Principal Accounti_4
Summary of Principal Accounting Policies - VIE Arrangements (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Foreign owned subsidiaries economic ownership in variable interest entities | |
Term of loan agreement | 20 years |
Term of each shareholder voting right proxy agreement | 20 years |
Automatic extended term of shareholder voting right proxy agreement | 1 year |
Minimum | |
Foreign owned subsidiaries economic ownership in variable interest entities | |
Written notice for extension prior to expiration under shareholder voting right proxy agreement period | 30 days |
Beijing Leju | Shanghai SINA Leju | |
Foreign owned subsidiaries economic ownership in variable interest entities | |
Ownership interest (as a percent) | 100% |
Leju Hao Fang | Shanghai Yi Yue | |
Foreign owned subsidiaries economic ownership in variable interest entities | |
Ownership interest (as a percent) | 100% |
Beijing Jiajujiu | Beijing Maiteng | |
Foreign owned subsidiaries economic ownership in variable interest entities | |
Ownership interest (as a percent) | 100% |
Summary of Principal Accounti_5
Summary of Principal Accounting Policies - VIE Amounts and Balances (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial statement amounts and balances of the Group's VIEs | |||
Cash and cash equivalents | $ 123,378,034 | $ 250,313,799 | $ 284,489,282 |
Restricted cash | 4,270,695 | 2,082,103 | 1,217,414 |
Accounts receivable, net | 3,407,877 | 36,071,056 | |
Contract assets, net | 0 | 1,415,241 | |
Customer deposits, net | 3,860,127 | 783,995 | |
Amounts due from related parties, net | 2,475,800 | 3,913,385 | |
Total current assets | 143,503,303 | 320,875,132 | |
TOTAL ASSETS | 216,111,459 | 437,247,770 | |
Accounts payable | 653,700 | 1,631,401 | |
Accrued payroll and welfare expenses | 12,728,091 | 21,516,888 | |
Income tax payable | 25,202,771 | 60,951,790 | |
Other tax payable | 9,695,893 | 18,046,289 | |
Amounts due to related parties | 4,804,591 | 7,631,923 | |
Advances from customers | 43,100,136 | 82,787,409 | |
Lease liabilities, current | 5,037,796 | 5,581,648 | |
Accrued marketing and advertising expenses | 29,988,108 | 43,272,270 | |
Other current liabilities | 12,264,895 | 18,504,471 | |
Total current liabilities | 144,193,896 | 260,708,319 | |
Deferred tax liabilities | 3,517,837 | 6,042,540 | |
Lease liabilities, non-current | 15,439,595 | 19,437,887 | |
Total liabilities | 163,151,328 | 286,188,746 | |
Total revenues | 343,182,184 | 534,116,970 | 719,525,983 |
Cost of revenues | (30,603,426) | (55,800,726) | (73,762,283) |
Net income (loss) | (89,690,677) | (149,924,023) | 20,998,219 |
Net cash provided by/ (used in) operating activities | (107,975,725) | (39,888,803) | 108,494,708 |
Net cash provided by/ (used in) investing activities | 6,352 | (318,308) | 101,771 |
Net cash provided by/ (used in) financing activities | (51,972) | 1,033,394 | 540,260 |
Consolidated VIEs without recourse | |||
Financial statement amounts and balances of the Group's VIEs | |||
Cash and cash equivalents | 90,795,643 | 199,808,985 | |
Restricted cash | 4,270,695 | 1,953,803 | |
Accounts receivable, net | 2,627,814 | 34,485,667 | |
Contract assets, net | 1,415,241 | ||
Customer deposits, net | 3,860,127 | 783,995 | |
Amounts due from related parties, net | 2,289,594 | 3,834,986 | |
Other current assets, net | 4,007,633 | 23,934,283 | |
Total current assets | 107,851,506 | 266,216,960 | |
Total non-current assets | 47,690,614 | 63,522,807 | |
TOTAL ASSETS | 155,542,120 | 329,739,767 | |
Accounts payable | 653,700 | 1,631,401 | |
Accrued payroll and welfare expenses | 10,717,186 | 19,962,938 | |
Income tax payable | 0 | 31,400,562 | |
Other tax payable | 8,684,712 | 16,992,077 | |
Amounts due to related parties | 668,153 | 2,693,624 | |
Advances from customers | 43,096,996 | 82,626,840 | |
Lease liabilities, current | 5,013,721 | 5,556,351 | |
Accrued marketing and advertising expenses | 29,533,704 | 42,180,152 | |
Other current liabilities | 10,317,192 | 16,383,879 | |
Total current liabilities | 108,685,364 | 219,427,824 | |
Deferred tax liabilities | 435,848 | 314,763 | |
Lease liabilities, non-current | 15,400,328 | 19,437,887 | |
Total liabilities | 124,521,540 | 239,180,474 | |
Total revenues | 343,170,910 | 533,619,355 | 718,861,490 |
Cost of revenues | (24,394,266) | (47,730,331) | (65,612,576) |
Net income (loss) | (10,882,414) | (81,530,172) | 14,278,316 |
Net cash provided by/ (used in) operating activities | (93,191,543) | (41,427,975) | 100,460,964 |
Net cash provided by/ (used in) investing activities | (73,872) | $ 431,057 | $ (1,068,664) |
Consolidated VIEs without recourse | Asset Pledged as Collateral | |||
Financial statement amounts and balances of the Group's VIEs | |||
Assets of VIE's held as collateral or restricted to settle obligations | $ 0 |
Summary of Principal Accounti_6
Summary of Principal Accounting Policies - Various Policies (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted cash | |||
Restricted cash | $ 4,270,695 | $ 2,082,103 | $ 1,217,414 |
Amount frozen by court | 4,139,950 | 373,625 | |
Customer deposits | |||
Expected credit loss attributable to customer deposits | 3,878,996 | 10,259,195 | |
Customer deposit | 3,158,826 | 10,258,960 | |
Allowance For Customer Deposits, Provisions | 4,035,869 | 10,286,671 | 3,480 |
Impairment of long-lived assets | |||
Impairment on long-lived assets | 0 | 0 | |
Revenue recognition | |||
Total net revenues | 343,182,184 | 534,116,970 | 719,525,983 |
Rebates given to real estate brokers | 0 | ||
Contract assets, net | $ 0 | 1,415,241 | |
Contracts of original duration of one year or less | false | ||
Marketing and advertising expenses | |||
Marketing and advertising expenses | $ 237,268,507 | 442,975,679 | 523,315,406 |
Commissions under commission coupons business | |||
Real Estate Agent Commission Incurred | 91,338,490 | 0 | 0 |
Foreign currency translation | |||
Foreign exchange gain | 1,217,262 | ||
Foreign exchange loss | 431,686 | 815,656 | |
Government subsidies | |||
Cash subsidies included in other operating income | 297,663 | 560,394 | 380,849 |
Allowance for credit losses for accounts receivable and contract assets by each risk category | |||
Allowance for credit losses for accounts receivable by risk category | 111,848,582 | 115,374,631 | |
Movement of the allowance for doubtful accounts for accounts receivable | |||
Balance at beginning of the year | 115,374,631 | 12,683,779 | 16,108,520 |
Provisions | 9,148,173 | 101,172,959 | 4,535,063 |
Write offs | (2,665,754) | (600,847) | (8,809,126) |
Changes due to foreign exchange | (10,008,468) | 2,118,740 | 849,322 |
Balance at end of the year | 111,848,582 | 115,374,631 | 12,683,779 |
Movement of the allowance for other receivables in prepaid expenses and other current assets | |||
Balance at beginning of the year | 150,770 | 335,386 | |
Provisions/(reversal) | 434,867 | (190,200) | 335,386 |
Changes due to foreign exchange | (29,674) | 5,584 | |
Balance at end of the year | 555,963 | 150,770 | 335,386 |
Movement of the allowance for customer deposits | |||
Balance at beginning of the year | 10,259,195 | 3,480 | |
Provisions | 4,035,869 | 10,286,671 | 3,480 |
Write-offs | (10,216,240) | ||
Changes due to foreign exchange | (199,828) | (30,956) | |
Balance at end of the year | 3,878,996 | 10,259,195 | 3,480 |
Movement of the allowance for amount due from related parties | |||
Balance at beginning of the year | 1,175 | 3,188 | |
Provisions/(reversal) | (346) | (2,034) | 3,188 |
Changes due to foreign exchange | (86) | 21 | |
Balance at end of the year | 743 | 1,175 | 3,188 |
Movement of the allowance for other non-current assets | |||
Balance at beginning of the year | 0 | ||
Provisions | 124,995 | ||
Changes due to foreign exchange | (4,865) | ||
Balance at end of the year | 120,130 | 0 | |
Details of the accounts receivable and contract assets | |||
Allowance for credit losses | (111,848,582) | (115,374,631) | (12,683,779) |
Pledged credit risk | |||
Allowance for credit losses for accounts receivable and contract assets by each risk category | |||
Allowance for credit losses for accounts receivable by risk category | 2,354,182 | 1,126,119 | |
High credit risk | |||
Allowance for credit losses for accounts receivable and contract assets by each risk category | |||
Allowance for credit losses for accounts receivable by risk category | 105,189,074 | 112,183,037 | |
Normal risk | |||
Allowance for credit losses for accounts receivable and contract assets by each risk category | |||
Allowance for credit losses for accounts receivable by risk category | 4,305,326 | 2,065,475 | |
Government subsidies | |||
Government subsidies | |||
Cash subsidies included in other operating income | 297,663 | 560,394 | 380,849 |
E-commerce of discount coupons | |||
Revenue recognition | |||
Total net revenues | 182,940,792 | 411,097,123 | 547,895,262 |
E-commerce of commission coupons | |||
Revenue recognition | |||
Total net revenues | 95,522,903 | ||
E-commerce | |||
Revenue recognition | |||
Total net revenues | 278,463,695 | 411,097,123 | 547,895,262 |
Financing Component | |||
Revenue recognition | |||
Interest Income | $ 0 | 0 | 4,454,077 |
Buildings | |||
Property and equipment, net | |||
Estimated useful lives | 30 years | ||
Motor vehicles | |||
Property and equipment, net | |||
Estimated useful lives | 5 years | ||
Real estate developers | |||
Restricted cash | |||
Restricted cash | $ 130,745 | 1,708,478 | |
Minimum | Furniture, fixtures and equipment | |||
Property and equipment, net | |||
Estimated useful lives | 3 years | ||
Maximum | Furniture, fixtures and equipment | |||
Property and equipment, net | |||
Estimated useful lives | 5 years | ||
Nonrecurring | |||
Fair value of financial instruments | |||
Fair value of assets | $ 0 | 0 | 0 |
Fair value of liabilities | 0 | 0 | $ 0 |
Customer A | |||
Movement of the allowance for doubtful accounts for accounts receivable | |||
Balance at beginning of the year | 96,510,078 | ||
Balance at end of the year | 88,285,716 | 96,510,078 | |
Details of the accounts receivable and contract assets | |||
Accounts receivable, gross | 88,285,716 | 96,510,078 | |
Allowance for credit losses | $ (88,285,716) | $ (96,510,078) |
Summary of Principal Accounti_7
Summary of Principal Accounting Policies - Income (Loss) per share (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income (loss) per share | |||
Net income (loss) attributable to Leju ordinary shareholders-basic and diluted | $ (89,668,194) | $ (150,933,535) | $ 19,302,238 |
Weighted average number of ordinary shares outstanding-basic (in shares) | 13,704,238 | 13,665,216 | 13,607,079 |
Stock options and restricted shares | 149,378 | ||
Weighted average number of ordinary shares outstanding-diluted (in shares) | 13,704,238 | 13,665,216 | 13,756,457 |
Basic income (loss) per share (in dollars per share) | $ (6.54) | $ (11.05) | $ 1.42 |
Diluted income (loss) per share (in dollars per share) | $ (6.54) | $ (11.05) | $ 1.40 |
Share options and restricted shares | |||
Income (loss) per share | |||
Stock options and restricted shares | 15,156,318 | 15,617,986 | 7,207,045 |
Leases (Details)
Leases (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Leases | ||
Weighted average remaining lease term | 4 years 10 months 24 days | 5 years 9 months 18 days |
Weighted average discount rate | 5.61% | 5.61% |
Leases - Future Lease Payments
Leases - Future Lease Payments under Operating Leases (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Future lease payments under operating leases | ||
2023 | $ 5,194,655 | |
2024 | 4,572,378 | |
2025 | 4,344,044 | |
2026 | 4,064,720 | |
2027 | 4,205,218 | |
Then thereafter | 1,027,182 | |
Total future lease payments | 23,408,197 | |
Impact of discounting remaining lease payments | (2,930,806) | |
Total lease liabilities | 20,477,391 | |
Lease liabilities, current | 5,037,796 | $ 5,581,648 |
Lease liabilities, non-current | $ 15,439,595 | $ 19,437,887 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases | |||
Rent expense under operating leases | $ 5,746,967 | $ 6,331,194 | $ 6,016,402 |
Short-term lease cost | 1,233,347 | 2,302,019 | 2,306,983 |
Cash paid for amounts included in the measurement of operating lease liabilities | 5,698,668 | 6,287,094 | 5,794,716 |
Non-cash transaction amount of lease liabilities arising from acquisition of right-of-use assets | $ 2,783,430 | $ 2,064,279 | $ 1,967,269 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property and equipment, net | |||
Property and equipment, gross | $ 25,947,694 | $ 29,595,773 | |
Accumulated depreciation | (11,743,331) | (12,928,492) | |
Property and equipment, net | 14,204,363 | 16,667,281 | |
Depreciation expenses | 1,743,030 | 2,374,493 | $ 2,701,577 |
Furniture, fixtures and equipment | |||
Property and equipment, net | |||
Property and equipment, gross | 9,160,115 | 11,119,445 | |
Leasehold improvements | |||
Property and equipment, net | |||
Property and equipment, gross | 4,238,863 | 5,269,934 | |
Buildings | |||
Property and equipment, net | |||
Property and equipment, gross | 11,742,004 | 12,085,843 | |
Motor vehicles | |||
Property and equipment, net | |||
Property and equipment, gross | $ 806,712 | $ 1,120,551 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Intangible Assets, Net | ||||
Intangible assets subject to amortization | $ 189,291,885 | $ 189,882,242 | ||
Less: Accumulated amortization | 176,833,710 | 166,584,484 | ||
Total intangible assets, net | $ 12,458,175 | 23,297,758 | ||
Weighted Average Remaining Amortization Period | 1 year 3 months 3 days | |||
Amortization expenses | $ 10,839,284 | 10,994,923 | $ 11,636,952 | |
Expected amortization expenses | ||||
2023 | 10,633,512 | |||
2024 | 1,813,828 | |||
2025 | 10,836 | |||
2026 | 0 | |||
SINA | Advertising agency agreement and license agreements | ||||
Intangible Assets, Net | ||||
Percentage of revenue fee on sales | 15% | |||
Additional consideration upon extension term of agreement | $ 0 | |||
Advertising agency agreement | SINA | ||||
Intangible Assets, Net | ||||
Intangible assets subject to amortization | 106,790,000 | 106,790,000 | ||
Less: Accumulated amortization | $ 99,725,921 | 93,670,998 | ||
Weighted Average Remaining Amortization Period | 1 year 3 months | |||
Extension term of agreement | 5 years | |||
License agreements | SINA | ||||
Intangible Assets, Net | ||||
Intangible assets subject to amortization | $ 80,660,000 | 80,660,000 | ||
Less: Accumulated amortization | $ 75,405,899 | 70,902,383 | ||
Weighted Average Remaining Amortization Period | 1 year 3 months | |||
Computer software licenses | ||||
Intangible Assets, Net | ||||
Intangible assets subject to amortization | $ 1,841,885 | 2,432,242 | ||
Less: Accumulated amortization | $ 1,701,890 | $ 2,011,103 | ||
Weighted Average Remaining Amortization Period | 1 year 11 months 15 days |
Borrowings (Details)
Borrowings (Details) ¥ in Millions | 1 Months Ended | ||||
Mar. 31, 2022 CNY (¥) | Sep. 30, 2021 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Line of Credit Facility [Line Items] | |||||
Shortterm borrowings | $ 717,915 | $ 784,230 | |||
SPD Bank | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument term | 1 year | 1 year | |||
Line of credit facility | ¥ | ¥ 5 | ¥ 5 | |||
SPD Bank | LIBOR | |||||
Line of Credit Facility [Line Items] | |||||
Basic points over LPR | 0.80% | 0.65% | |||
Interest expenses recorded in interest income, net | $ 51,972 | $ 9,147 | $ 0 |
Other Income (Loss), Net (Detai
Other Income (Loss), Net (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Income (Loss), Net | |||
Realized gain on marketable securities | $ 31,891 | $ 2,127,985 | |
Unrealized gain (loss) on marketable securities | (1,722,700) | $ 850,402 | |
Income (loss) from sales of properties held for sales | 742 | (17,430) | 14,141 |
Foreign exchange gain (loss) | 1,217,262 | (431,686) | (815,656) |
Others | 246,497 | 252,706 | 251,169 |
Total | $ 1,496,392 | $ 208,875 | $ 300,056 |
Income Tax - Income Tax and Def
Income Tax - Income Tax and Deferred Tax Asset and Liabilities Components (Details) | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Income Tax | |||||
PRC | $ (99,596,774) | $ (148,696,060) | $ 40,605,716 | ||
Outside of PRC | (2,197,049) | (14,711,876) | (8,918,616) | ||
Income (loss) before taxes and loss from equity in affiliates | (101,793,823) | (163,407,936) | 31,687,100 | ||
PRC | (32,295,286) | (1,409,996) | 2,725,114 | ||
Outside of PRC | 276 | 4,895 | 6,600 | ||
Current income taxes expenses (benefits) | (32,295,010) | (1,405,101) | 2,731,714 | ||
PRC | 20,174,775 | (12,092,683) | 7,933,308 | ||
Deferred income taxes expenses (benefits) | 20,174,775 | (12,092,683) | 7,933,308 | ||
Income tax expense (benefits) | $ (12,120,235) | $ (13,497,784) | $ 10,665,022 | ||
Statutory tax rate (as a percent) | 25% | 25% | 25% | 25% | |
Deferred tax assets: | |||||
Accrued salary expenses | $ 2,792,431 | $ 4,987,961 | |||
Bad debt provision | 29,096,796 | 28,843,655 | |||
Net operating loss carry forwards | 24,801,075 | 40,000,359 | |||
Advertising expenses | 1,013,274 | 1,441,682 | |||
Accrued expense | 8,862,609 | 2,434,194 | |||
Others | 508,950 | 629,598 | |||
Gross deferred tax assets | 67,075,135 | 78,337,449 | |||
Valuation allowance | (41,617,648) | (26,732,045) | $ (5,714,480) | $ (5,634,684) | |
Total deferred tax assets | 25,457,487 | 51,605,404 | |||
Deferred tax liabilities: | |||||
Intangible assets from acquisition and other assets | 3,517,837 | 6,042,540 | |||
Total deferred tax liabilities | $ 3,517,837 | $ 6,042,540 | |||
PRC | |||||
Income Tax | |||||
Period of statute of limitations | 3 years | 3 years | |||
Period of statute of limitations, if the underpayment is more than the specified amount | 5 years | 5 years | |||
Minimum amount of underpayment of taxes for statute of limitations to be extended to five years | $ 14,358 | ¥ 100,000 | |||
Period of statute of limitations for transfer pricing issues | 10 years | 10 years | |||
Period of statute of limitations, in case of tax evasion | 0 years | 0 years | |||
PRC | Shanghai SINA Leju | HNTE | Tax year 2018 through 2023 | |||||
Income Tax | |||||
Preferential tax rate (as a percent) | 15% | 15% | |||
Hong Kong | |||||
Income Tax | |||||
Tax rate (as a percent) | 16.50% | 16.50% |
Income Tax - Valuation Allowanc
Income Tax - Valuation Allowance, Tax Rate Reconciliation, Tax Holiday (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Movement of the valuation allowance | |||
Balance at beginning of the year | $ (26,732,045) | $ (5,714,480) | $ (5,634,684) |
Reversal/(Additions) | (17,978,965) | (20,905,451) | 291,962 |
Write-offs | 138,479 | 393,251 | |
Changes due to exchange rate translation | 2,954,883 | (505,365) | (371,758) |
Balance at end of the year | $ (41,617,648) | $ (26,732,045) | $ (5,714,480) |
Income Tax | |||
Cumulative loss incurred period as significant piece of objective negative evidence evaluated | 3 years | ||
Reconciliation between the provision for income tax computed by applying the statutory tax rate to income before income taxes and the actual provision for income taxes | |||
PRC income tax rate | 25% | 25% | 25% |
Share based compensation expenses not deductible for tax purposes | (0.45%) | (0.25%) | 2.35% |
Other expenses not deductible for tax purposes | 0.30% | 0.17% | (0.12%) |
Effect of tax holiday | (5.15%) | (5.29%) | (0.27%) |
Effect of different tax rate of subsidiary operation in other jurisdiction | (0.09%) | (2.00%) | 3.20% |
Valuation allowance movement | (8.17%) | (12.37%) | (0.82%) |
Withholding tax | 0.48% | 3.01% | 4.32% |
Income tax rate (as a percent) | 11.92% | 8.27% | 33.66% |
Aggregate amount and per share effect of the tax holiday | |||
The aggregate dollar effect | $ (5,247,214) | $ (8,646,324) | $ 85,461 |
Per ADS effect-basic | $ (0.38) | $ (0.63) | $ 0.01 |
Per ADS effect-diluted | $ (0.38) | $ (0.63) | $ 0.01 |
Income Tax - Tax carry forwards
Income Tax - Tax carry forwards, Unrecognized Deferred Tax Liabilities (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax | ||||
Tax operating loss carry forwards | $ 35,032,374 | $ 205,754,412 | ||
Valuation allowance | 41,617,648 | $ 26,732,045 | $ 5,714,480 | $ 5,634,684 |
Valuation allowance for bad debt provision | ||||
Income Tax | ||||
Valuation allowance | 22,071,429 | |||
Valuation allowance for net operating loss carryforwards | ||||
Income Tax | ||||
Valuation allowance | 19,546,219 | |||
PRC | ||||
Income Tax | ||||
Undistributed | 98,486,420 | |||
Provision for Chinese dividend withholding taxes | $ 0 |
Share-Based Compensation - Shar
Share-Based Compensation - Share Incentive Plan, Share Options, Binomial Model Assumptions (Details) - Leju Plan - $ / shares | 1 Months Ended | 12 Months Ended | |||||
Dec. 01, 2022 | Dec. 01, 2019 | Dec. 01, 2016 | Nov. 30, 2013 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Compensation | |||||||
Increase percentage of the then total outstanding shares on an as-converted fully diluted basis | 5% | ||||||
Number of ordinary shares increased | 8,020,119 | 7,833,224 | 7,553,422 | ||||
Expiration period | 10 years | ||||||
Maximum | |||||||
Share-Based Compensation | |||||||
Number of shares that may be issued as a percentage of total outstanding shares | 8% | ||||||
Share Options | |||||||
Assumptions used in the binomial model | |||||||
Risk-free rate of return (as a percent) | 1.56% | ||||||
Estimated volatility rate (as a percent) | 72.06% | ||||||
Dividend yield (as a percent) | 0% | ||||||
Share Options | Group's employees | |||||||
Share-Based Compensation | |||||||
Options granted for purchase of shares | 0 | 4,267,000 | 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 600,000 | ||||||
Expiration period | 10 years | ||||||
Award vesting period | 3 years | ||||||
Assumptions used in the binomial model | |||||||
Contractual life of option | 10 years | ||||||
Share Options | Minimum | Group's employees | |||||||
Share-Based Compensation | |||||||
Exercise price of shares granted (in dollars per share) | $ 0.10 | ||||||
Share Options | Maximum | Group's employees | |||||||
Share-Based Compensation | |||||||
Exercise price of shares granted (in dollars per share) | $ 1 | ||||||
Restricted Shares | |||||||
Share-Based Compensation | |||||||
Restricted shares granted | 0 | 0 |
Share-Based Compensation - Opti
Share-Based Compensation - Options (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Additional disclosure | |||
Proceeds from exercise of options | $ 258,311 | $ 561,448 | |
Leju Plan | Share Options | |||
Number of Options | |||
Outstanding at beginning of the year (in shares) | 15,617,986 | ||
Exercise of share options ( in shares) | 0 | 146,582 | 429,968 |
Forfeited (in shares) | (728,336) | ||
Outstanding at end of the year (in shares) | 14,889,650 | 15,617,986 | |
Vested and expected to vest at end of the year (in shares) | 14,555,100 | ||
Exercisable at end of the year (in shares) | 12,146,984 | ||
Weighted Average Exercise Price | |||
Outstanding at beginning of the year (in dollars per share) | $ 2.72 | ||
Forfeited (in dollars per share) | 3.19 | ||
Outstanding at end of the year (in dollars per share) | 2.70 | $ 2.72 | |
Vested and expected to vest at end of the year (in dollars per share) | 2.74 | ||
Exercisable at end of the year (in dollars per share) | $ 3.11 | ||
Weighted Average Remaining Contractual Term | |||
Outstanding at end of the year | 4 years 8 months 26 days | 5 years 8 months 15 days | |
Vested and expected to vest at end of the year | 4 years 7 months 28 days | ||
Exercisable at end of the year | 3 years 11 months 8 days | ||
Aggregate Intrinsic Value of Options | |||
Exercised | $ 0 | $ 193,492 | $ 471,610 |
Additional disclosure | |||
Weighted-average grant-date fair value of options granted (in dollars per share) | $ 1.74 | ||
Compensation expense | 1,789,992 | $ 1,519,778 | 1,415,526 |
Total unrecognized compensation expense | $ 2,350,594 | ||
Weighted-average period over which cost is expected to be recognized | 1 year 3 months 21 days | ||
Proceeds from exercise of options | $ 0 | $ 208,025 | $ 611,734 |
Exercise of share options | 0 | 146,582 | 429,968 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Shares (Details) - Leju Plan - Restricted Shares - USD ($) | 12 Months Ended | |||||
Apr. 23, 2021 | Jun. 17, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Summary of restricted share activity | ||||||
Outstanding at beginning of the year (in shares) | 616,668 | |||||
Granted (in shares) | 0 | 0 | ||||
Vested (in shares) | 350,000 | |||||
Forfeited (in shares) | 0 | |||||
Outstanding at end of the year (in shares) | 266,668 | 616,668 | ||||
Weighted Average Grant-date Fair Value | ||||||
Outstanding at beginning of the year (in dollars per share) | $ 1.52 | |||||
Vested (in dollars per share) | 1.54 | |||||
Forfeited (in dollars per share) | 0 | |||||
Outstanding at end of the year (in dollars per share) | $ 1.50 | $ 1.52 | ||||
Additional disclosure | ||||||
Restricted shares granted | 0 | 0 | ||||
Total grant date fair value of restricted shares vested | $ 0 | $ 537,498 | $ 137,500 | |||
Unrecognized compensation expense | 0 | |||||
Group's employees | ||||||
Additional disclosure | ||||||
Compensation expense | $ 34,375 | $ 137,500 | 137,500 | |||
Senior management Team | ||||||
Summary of restricted share activity | ||||||
Granted (in shares) | 800,000 | |||||
Additional disclosure | ||||||
Restricted shares granted | 800,000 | |||||
Compensation expense | $ 1,425,000 | $ 1,225,000 | ||||
Options granted for purchase of shares | 600,000 | |||||
Exercise price of shares granted (in dollars per share) | $ 0.10 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Benefit Plans | |||
Contribution by group | $ 12,357,772 | $ 14,677,938 | $ 8,027,949 |
Distribution of Profits (Detail
Distribution of Profits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Distribution of profits | ||
Restricted net assets of subsidiaries and VIEs attributed to general reserve and registered capital | $ 8,982,249 | $ 9,448,820 |
PRC | ||
Distribution of profits | ||
Minimum percentage of after-tax profit transferred by subsidiaries and VIEs to fund a statutory reserve | 10% | |
Threshold percentage of after-tax income required to be appropriated towards reserve until the reserve balance reaches a specified percentage of the registered capital | 50% | |
Reserve fund | $ 10,125,676 | 10,059,628 |
Restricted net assets | $ 35,914,216 | $ 35,848,168 |
Segment Information (Details)
Segment Information (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) customer | Dec. 31, 2021 USD ($) customer | Dec. 31, 2020 USD ($) customer | |
Revenue information of the Group | |||
Total revenues | $ 343,182,184 | $ 534,116,970 | $ 719,525,983 |
Revenue | Customer risk | |||
Revenue information of the Group | |||
Number of customers | customer | 0 | 0 | 0 |
E-commerce | |||
Revenue information of the Group | |||
Total revenues | $ 278,463,695 | $ 411,097,123 | $ 547,895,262 |
E-commerce of discount coupons | |||
Revenue information of the Group | |||
Total revenues | 182,940,792 | 411,097,123 | 547,895,262 |
E-commerce of commission coupons | |||
Revenue information of the Group | |||
Total revenues | 95,522,903 | ||
Online advertising | |||
Revenue information of the Group | |||
Total revenues | 64,707,215 | 122,522,232 | 170,782,688 |
Listing | |||
Revenue information of the Group | |||
Total revenues | $ 11,274 | $ 497,615 | $ 848,033 |
Related Party Balances and Tr_3
Related Party Balances and Transactions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Significant related party transactions | |||
Allowance for current expected credit losses | $ (743) | $ (1,175) | |
Amounts due from related parties | 2,475,800 | 3,913,385 | |
Amounts due to related parties | 4,804,591 | 7,631,923 | |
Alibaba Investment Limited | |||
Significant related party transactions | |||
Services purchased from/rental cost paid to related parties | 855,183 | 875,072 | |
Amounts due from related parties | 498,258 | 332,243 | |
E-House | |||
Significant related party transactions | |||
Corporate service provided by E-House under service agreements | 1,352,382 | $ 1,910,204 | |
Services purchased from/rental cost paid to related parties | 700,726 | 886,866 | 764,952 |
Total online advertising services provided to related parties | 484,185 | ||
Amounts due from related parties | 123,010 | ||
Amounts due to related parties | 2,201,127 | ||
Rollforward of the payable (receivable) balance | |||
Balance at beginning of the year | 2,201,127 | 129,566 | (555,652) |
Corporate service provided by E-House under service agreements | 1,352,382 | 1,910,204 | |
Service provided to related parties | (484,185) | ||
Net payment | (3,024,863) | 316,498 | (1,989,938) |
Balance at end of the year | (123,010) | 2,201,127 | 129,566 |
Amount due to/(from) E-House | |||
Net results for service fee and compensation from E-House | (123,010) | 2,201,127 | |
Amounts due/(from) to E-House | (123,010) | 2,201,127 | 129,566 |
SINA | |||
Significant related party transactions | |||
Online advertising resources fee recognized as cost of revenues purchased | 110,464 | 10,078,875 | 29,322,241 |
Amounts due to related parties | 1,382,173 | 1,479,957 | |
Tencent | |||
Significant related party transactions | |||
Online advertising resources fee recognized as cost of revenues purchased | 14,787,449 | 18,671,019 | 17,790,501 |
Fee paid to Tencent for advertising resources on behalf of customers | 1,798,079 | 2,502,309 | 43,083,548 |
Amounts due from related parties | 1,855,275 | 3,581,609 | |
E-House Enterprise | |||
Significant related party transactions | |||
Corporate service provided by E-House under service agreements | (36,334) | (1,392,190) | |
Corporate service provided by E-House Enterprise | 1,335,164 | ||
Services purchased from/rental cost paid to related parties | 7,694,981 | 20,557,777 | 21,429,920 |
Total online advertising services provided to related parties | 36,334 | 1,392,190 | |
Amounts due to related parties | 3,298,210 | 3,950,839 | |
Rollforward of the payable (receivable) balance | |||
Balance at beginning of the year | 3,950,839 | 2,238,543 | (906,009) |
Corporate service provided by E-House under service agreements | (36,334) | (1,392,190) | |
Corporate service provided by E-House Enterprise | 1,335,164 | ||
Service provided to related parties | (36,334) | (1,392,190) | |
Net payment | (9,682,774) | (18,809,147) | (16,893,178) |
Balance at end of the year | 3,298,210 | 3,950,839 | 2,238,543 |
Amount due to/(from) E-House | |||
Amounts due/(from) to E-House | 3,298,210 | 3,950,839 | 2,238,543 |
Jupai | |||
Significant related party transactions | |||
Services purchased from/rental cost paid to related parties | 24,372 | 34,160 | |
Investing affiliates | |||
Significant related party transactions | |||
Total online advertising services provided to related parties | 109,934 | 548,075 | 2,393,204 |
Amounts due from related parties | 708 | ||
Amounts due to related parties | 124,208 | ||
Rollforward of the payable (receivable) balance | |||
Service provided to related parties | (109,934) | (548,075) | (2,393,204) |
Tianji Network | |||
Significant related party transactions | |||
Services purchased from/rental cost paid to related parties | 69,762 | 493,176 | |
Total amount of transactions with related parties | |||
Significant related party transactions | |||
Services purchased from/rental cost paid to related parties | 25,508,339 | 52,491,753 | 71,745,154 |
Total online advertising services provided to related parties | 109,934 | 1,068,594 | 3,785,394 |
Rollforward of the payable (receivable) balance | |||
Service provided to related parties | $ (109,934) | $ (1,068,594) | $ (3,785,394) |
Huixiangju | |||
Related Party Balances and Transactions | |||
Equity interest (as a percent) | 51% | ||
Qianyisheng | |||
Related Party Balances and Transactions | |||
Equity interest (as a percent) | 19% | ||
QuanZhuYi | |||
Related Party Balances and Transactions | |||
Equity interest (as a percent) | 13.50% |
Subsequent Events (Details)
Subsequent Events (Details) - TM Home Limited | Apr. 03, 2023 | Nov. 24, 2021 |
E-House Enterprise | ||
Subsequent Events | ||
Ownership percentage | 70.23% | |
Alibaba Investment Limited | ||
Subsequent Events | ||
Ownership percentage | 29.77% | |
Subsequent Events | E-House Enterprise | ||
Subsequent Events | ||
Ownership percentage | 54.20% | |
Remaining ownership percentage | 35% | |
Transfer of ownership percentage | 15% | |
Subsequent Events | Alibaba Investment Limited | ||
Subsequent Events | ||
Ownership percentage | 10.80% |