Le Habitat second quarter net profit 15.4 million dollars

Absrtact: August 20 le Habitat Holdings Limited (NYSE: LEJU, hereinafter referred to as Le Ju) released its unaudited earnings for the second quarter of fiscal year 2014 as at June 30. According to earnings, the second quarter's total revenue rose 63% to

August 20 Le Habitat Holdings Limited (NYSE: LEJU, hereinafter referred to as "Le Ju") released its unaudited earnings for the second quarter of fiscal year 2014 as at June 30. Earnings showed that total revenue rose 63% in the second quarter, to $117.4 million trillion, while the net profit attributable to Lohas shareholders rose to $15.4 million, up 170% per cent year-on-year.

2014 Second quarter results summary:

Revenue：

Total revenues reached $117.4 million trillion, up 63% from 71.9 million dollars a year earlier, mainly due to growth in e-commerce revenues.

E-commerce revenues amounted to $68.3 million trillion, up 159% from 26.4 million US dollars in the same period last year, largely because of the growth in the discount coupon business that the company has developed through its business expansion with other developers.

Online advertising revenue reached $44.8 million trillion, up 11% from $40.5 million a year earlier, mainly due to growth in new home and furniture channels; target list services revenue reached 4.2 million U.S. dollars, down 5 million from the same period last year, the decline is mainly due to the decline in second-hand housing sales.

Cost and Expense:

The revenue cost is 11.7 million dollars, down 36% from 18.4 million dollars a year earlier, this fall was mainly due to falling costs for third parties to the company's catalog list service and the fall in intangible asset amortization, while the company's exclusive rights agreement with Baidu was extended to March 2015 and the agreement did not increase costs. In addition, Le Habitat was originally signed in August 2009 with Sina Advertising agency agreement extended to March 2024, but the related costs did not increase.

Sales, general services and administrative expenses amounted to $88.5 million trillion, up 86% from 47.6 million dollars in the same period last year, mainly because of the growth in business-related marketing spending on e-commerce and the increase in wages and benefits caused by increased staff.

Profit：

Operating profits amounted to $18.5 million trillion, up 211% from $6 million a year earlier, while operating profits, not measured by US GAAP, amounted to $24.1 million trillion, up 13.2 million from the same period last year.

Net profits amounted to $15.6 million trillion, up 170% from $5.8 million a year earlier; the net profit, not measured by US GAAP, reached $20.8 million trillion, up 11.7 million from the same period last year.

The net profit attributable to shareholders amounted to $15.4 million, up 170% from $5.7 million a year earlier, and the US depository stock, which belonged to shareholders, had a diluted profit of $0.12 per share, with a diluted profit of $0.05 a year.

Not in accordance with the United States General accounting standards, in the second quarter, the net profit attributable to shareholders rose 78% to 20.5 million U.S. dollars, and the US depository shares diluted profits of 0.15 U.S. dollars; not in accordance with U.S. general accounting standards, the same period last year net profit of 11.5 million U.S. dollars per share of U.S. depository shares diluted profits of 0.10 U.S. dollars.

Performance summary for the first half of 2014:

Revenue：

Total revenue of 195.9 million U.S. dollars, compared with the same period last year, 111.7 million U.S. dollars increased by 75%, this growth is mainly due to e-commerce services revenue growth.

E-commerce revenues reached $118 million, up 188% from 41.1 million US dollars in the same period last year; online ad revenues reached 69.4 million dollars, up 62.2 million from the same period last year, mainly due to growth in new home and furniture channels; target list services revenue reaches 12% dollars, A slight increase from 8.4 million dollars in the same period last year, with slower growth mainly due to a slowdown in second-hand housing sales.

Cost and Expense:

The revenue cost is $23.9 million trillion, down 291% from $33.7 million a year earlier, mainly due to falling costs for third parties paid to the company's catalog list services and lower amortization spending on intangible assets. In addition, Le Habitat was originally signed in August 2009 with Sina Advertising agency agreement extended to March 2024, but the related costs did not increase.

Sales, general services and administrative expenses amounted to $153 million trillion, up 87% from 81.7 million dollars in the same period last year, mainly because of the growth in business-related marketing spending on e-commerce and the increase in wages and benefits caused by increased staff.

Profit：

Operating profit of 20.5 million U.S. dollars, the same period last year operating losses of 3.7 million U.S. dollars, not according to U.S. general accounting standards measured operating profit of 32.5 million U.S. dollars, compared with the same period last year, 10.6 million U.S. dollar growth of 208%.

Net profits amounted to $17.4 million trillion, a net loss of $4 million in the same period last year, and no net profit of $28 million from the US General accounting standards, up 276% from 7.4 million a year earlier.

The net profit attributable to Lohas shareholders amounted to $17.6 million, a net loss of $4.1 million over the same period last year, and a share of $0.14 trillion in US depository shares that belonged to shareholders, with a thin loss of $0.03 per share over the same period last year.

The net profit attributable to shareholders in the first half of this year rose 290% per cent to $28.1 million, according to General accounting standards in the United States, Each share of the United States depository shares diluted profits of 0.22 U.S. dollars, the same period last year not in accordance with the United States General accounting standards measured net profit of 7.2 million U.S. dollars, each share of the United States depository shares diluted profits of 0.06 U.S. dollars.

Cash Flow:

As at June 30, 2014, the total cash and cash equivalents held by Le Habitat amounted to USD 228.6 million. Le Habitat second quarter operating activities provided net cash to 18.5 million U.S. dollars, investment activities used net cash to 7 million U.S. dollars, financial activities to provide net cash to reach 117.8 million U.S. dollars, mainly thanks to the New York Stock Exchange IPO in April 2014 to provide a net income of 121.1 million dollars.

Performance Outlook:

Le Habitat is expected to be the total fiscal year 2014 between 500 million U.S. dollars to 520 million U.S. dollars, that is, 335.4 million U.S. dollars in 2013 to increase the 49% to 55%, this is expected to be based on the current situation of the initial development, may be adjusted in the future. (Yue Tong)