Leju Announces Receipt of NYSE Non-Compliance Letter

Rhea-AI Summary

Leju Holdings Limited (NYSE: LEJU) has received a letter from the New York Stock Exchange, notifying the company that it is below compliance standards due to its total market capitalization and stockholders' equity. As of November 28, 2023, the company's 30 trading-day average market capitalization was approximately US$15.7 million, and its last reported stockholders' equity as of June 30, 2023, was approximately US$32.9 million. The company is required to respond within 90 days of the Letter with a business plan that demonstrates compliance with the continued listing standard within 18 months of receipt of the Letter.

Positive

• None.

Negative

• The company's total market capitalization and stockholders' equity are below compliance standards set by the NYSE, which may impact its continued listing on the exchange.

Insights

Financial Analyst

The notification received by Leju Holdings Limited from the NYSE represents a significant compliance issue, potentially affecting investor confidence and the company's financial stability. The market capitalization of approximately US$15.7 million is substantially below the NYSE's minimum requirement of US$50 million, which is an indicator of the company's valuation as perceived by the public market. Additionally, the reported stockholders' equity of US$32.9 million also falls short of the required threshold. The combination of these factors suggests a material decline in the company's financial health and market perception.

Investors should closely monitor Leju's ability to formulate and implement a viable business plan to regain compliance. The success of this plan is crucial for the company's continued listing and will likely influence its access to capital markets. A failure to regain compliance could result in delisting, which typically leads to lower liquidity and could negatively impact stock price. However, if Leju manages to successfully address the NYSE's concerns, it may restore investor confidence and stabilize its financial position.

Market Research Analyst

Leju Holdings Limited's current situation reflects broader trends in the real estate and home furnishing e-commerce sectors within China. The market capitalization is not only a reflection of the company's financial health but also of its growth prospects and competitive position in the industry. The company's performance must be analyzed in the context of the Chinese real estate market, which has been experiencing regulatory changes and economic pressures. These external factors can significantly impact companies like Leju that are heavily reliant on the health of the real estate sector.

As Leju explores strategic options to regain compliance, potential measures could include fundraising activities, restructuring, or strategic partnerships. The efficacy of these measures will depend on market conditions and investor sentiment towards the sector. Stakeholders should evaluate how Leju's response to this compliance issue aligns with broader industry trends and its potential to capitalize on the evolving digital real estate marketplace in China.

Legal Expert

The procedures outlined in Sections 801 and 802 of the NYSE Listed Company Manual are designed to ensure that companies meet certain financial standards to protect investors and maintain fair and orderly markets. Leju's requirement to submit a business plan within 90 days is a regulatory safeguard. The review process by the Listings Operations Committee will assess the company's potential for recovery and compliance with listing standards.

It is critical for stakeholders to understand that the NYSE's review process is rigorous and that the outcome is uncertain. The legal implications of delisting include reduced regulatory scrutiny but also potential loss of investor trust. The company's consideration of options to regain compliance will need to be legally sound and financially viable to meet the NYSE's standards and reassure shareholders of the company's governance and long-term viability.

BEIJING, Dec. 27, 2023 /PRNewswire/ -- Leju Holdings Limited ("Leju" or the "Company") (NYSE: LEJU), a leading e-commerce and online media platform for real estate and home furnishing industries in China, today announced that it has received a letter dated November 28, 2023 (the "Letter") from the New York Stock Exchange (the "NYSE"), notifying the Company that it is below compliance standards due to the Company's total market capitalization and stockholders' equity.

Pursuant to applicable NYSE continued listing standards, a company would be considered "below criteria" by the NYSE if its total market capitalization is less than US$50 million over a 30 trading-day period and its stockholders' equity is less than US$50 million. A review of the current financial condition of the Company by the NYSE shows that, as of November 28, 2023, the Company's 30 trading-day average market capitalization was approximately US$15.7 million and its last reported stockholders' equity as of June 30, 2023, was approximately US$32.9 million. Accordingly, the Company is now subject to the procedures as set forth in Sections 801 and 802 of the NYSE Listed Company Manual and is required to respond within 90 days of the Letter with a business plan that demonstrates compliance with the continued listing standard within 18 months of receipt of the Letter. The business plan will be reviewed for final disposition by the Listings Operations Committee of the NYSE.

To address this issue, the Company intends to comply with the applicable procedures and is considering its options to regain compliance.

About Leju

Leju Holdings Limited ("Leju") (NYSE: LEJU) is a leading e-commerce and online media platform for real estate and home furnishing industries in China, offering real estate e-commerce, online advertising and online listing services. Leju's integrated online platform comprises various mobile applications along with local websites covering more than 380 cities, enhanced by complementary offline services to facilitate residential property transactions. In addition to the Company's own websites, Leju operates the real estate and home furnishing websites of SINA Corporation, and maintains a strategic partnership with Tencent Holdings Limited. For more information about Leju, please visit http://ir.leju.com.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Statements that are not historical facts, including statements about Leju's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement All information provided in this press release is as of the date of this press release, and Leju does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

View original content:https://www.prnewswire.com/news-releases/leju-announces-receipt-of-nyse-non-compliance-letter-302022687.html

SOURCE Leju Holdings Limited

FAQ

What is the company name and ticker symbol for Leju Holdings Limited?

The company name is Leju Holdings Limited, and its ticker symbol is LEJU.

Why did Leju Holdings Limited receive a letter from the New York Stock Exchange?

Leju Holdings Limited received a letter from the New York Stock Exchange notifying the company that it is below compliance standards due to its total market capitalization and stockholders' equity.

What are the company's options to regain compliance with the NYSE standards?

The company intends to comply with the applicable procedures and is considering its options to regain compliance with the NYSE standards.

What is the deadline for the company to respond to the NYSE letter?

The company is required to respond within 90 days of the Letter with a business plan that demonstrates compliance with the continued listing standard within 18 months of receipt of the Letter.