Financial Data and Key Metrics Changes - Total revenue for the first half of 2021 was $301.1 million, an increase of 8% compared to the same period last year [10] - E-commerce revenue increased by 13% to $231.4 million, contributing 77% of total revenues [10] - Online advertising revenues decreased by 6% to $69.3 million, contributing 23% of total revenues [10] - Loss from operations was $49.9 million, compared to income from operations of $1.2 million in the same period last year [11] - Net loss attributable to Leju shareholders was $47.8 million, compared to net income of $1.5 million for the same period in 2020 [11] - Cash and cash equivalents balance as of June 30, 2021, was $328 million [12] Business Line Data and Key Metrics Changes - E-commerce services saw a revenue increase of 13%, driven by more discount coupons redeemed [10] - Online advertising revenue decreased due to reduced demand from property developers [10] - Listing revenues increased by 18% due to higher demand from secondary real estate brokers [10] Market Data and Key Metrics Changes - The overall real estate market in China faced tightening regulations, impacting developers' operations and sales [6] - The company noted that the credit status of one major real estate developer client deteriorated, leading to increased bad debt provisions [6][7] Company Strategy and Development Direction - The company aims to leverage digitalization opportunities in real estate marketing and deepen cooperation with developers [9] - Focus on platform construction, content creation, and improving user experience to enhance market influence [9] - Plans to expand advertising business and develop new e-commerce models [9] Management Comments on Operating Environment and Future Outlook - Management indicated that the tightening regulations in the real estate industry are likely to continue, which may create new opportunities for the company [22][23] - The company expects that the second half of 2021 total revenues will be approximately between $300 million and $310 million, indicating flat growth compared to the first half [13] Other Important Information - The company held online promotional events, including the 2nd Online Real Estate Fair, which performed satisfactorily and increased traffic through collaboration with Tmall [26] - Future promotional activities are planned around key dates in the real estate market, such as November 11 and December 12 [29] Q&A Session Summary Question: Can you elaborate on the bad debt provision taken this quarter? - Management explained that the provision was necessary due to the deterioration of credit status of a major client, with specific figures provided regarding receivables [16][17] Question: Are there other clients being monitored for credit quality? - Management stated that the client base is diversified and currently feels safe, with ongoing monitoring of other clients [18][19] Question: How do you see the evolving regulatory landscape impacting the company? - Management anticipates continued tightening of regulations, which may pressure developers but create opportunities for the company in digital marketing [22][23] Question: How did the recent online promotional events perform? - Management reported satisfactory performance from the online fairs, with increased traffic and developer participation [25][26] Question: What promotional activities are planned for the second half of 2021? - Management outlined plans for significant promotional events in November and December, aiming to encourage more developers to participate [29]
Leju(LEJU) - 2021 Q2 - Earnings Call Transcript