Leading online-to-offline Chinese real estate services provider Leju Holdings Limited has announced its un-audited financial results for the fiscal quarter ended March 31, 2017 - its revenues decreasing by 40% compared with the same period last year.
First Quarter 2017 Financial Highlights
The company's CEO Geoffrey He says the dip in revenue can be attributed to decreases in e-commerce service revenue and listing service revenue as a result of restrictions played by local governments.
"We continued to operate in a difficult environment during the first quarter of 2017," Mr He said.
"Tightening measures put in place in late 2016 by the PRC government in the real estate industry, such as price ceilings and required holdings periods, continued to affect market conditions and pose challenges for our businesses, in particular our e-commerce business and secondary listing business. We do not expect significant improvement in market conditions in the near future."
Mr He said that despite the shortfall in company revenue, the positive news was that Leju had increased its advertising income.
"Despite the challenging environment, we maintained our focus on product innovation and client services," Mr He said. "Our new marketing products launched late last year were well-received by our clients, and this in turn has helped to solidify many long-term client relationships. Moreover, we are encouraged to see an increase in our advertising revenue in the first quarter despite government policies restricting marketing activities by developers,"Mr He said.