E-HOUSE ENT (02048) announced its decision regarding the company's acquisition of a majority stake in Leju Holdings Limited (Leju). Beijing Leju is primarily engaged in online advertising—services that allow clients to place ads on online media and platforms owned by the Leju Group and other independent publishers—as well as e-commerce operations within China's real estate sector. In recent years, the group's operations have been adversely affected by the persistent and unprecedented downturn in China's property market, leading to a substantial decline in Leju's contribution to the group's business. Specifically, Leju has largely ceased its e-commerce business of selling discount vouchers to potential property buyers, and its online advertising revenue has also decreased significantly, with these activities now primarily conducted by Beijing Jiaju. Consequently, Beijing Leju no longer makes a meaningful contribution to the business of either Leju or the group. In light of these circumstances, the company has determined that terminating the contractual arrangements related to Beijing Leju (the Beijing Leju Contractual Arrangements) is in the best interests of the company and its shareholders. Accordingly, the relevant contracting parties have entered into a termination agreement to end the Beijing Leju Contractual Arrangements. As of the date of this announcement, the Beijing Leju Contractual Arrangements have been terminated. As a result, Beijing Leju and Leju Haofang (a subsidiary of Beijing Leju primarily engaged in real estate e-commerce) are no longer consolidated affiliated entities of the group, and their respective financial results will no longer be consolidated into the group's financial statements. For the avoidance of doubt, the contractual arrangements concerning Beijing Jiaju remain in effect, and Leju continues to be a subsidiary of the company.
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