Climate Change Data

Environmental Metrics

ESG Focus Areas

• Employee well-being
• Environmental protection
• Social responsibility
• Corporate governance
• Supply chain management
• Anti-corruption

Environmental Achievements

• Reduced carbon dioxide equivalent emissions to approximately 10,500 tons in 2018.
• Implemented waste sorting and recycling programs.
• Maintained noise levels within regulatory limits.

Social Achievements

• Awarded various best employer titles in 2018.
• Maintained a diverse workforce with a male/female ratio of 1.04:1.
• Provided competitive remuneration and employee benefits.
• Implemented various employee wellbeing initiatives, including the E-House Sports Club and E-House Art Club.
• Conducted extensive employee training programs.

Governance Achievements

• Established a Board of Directors with a diverse composition.
• Complied with relevant laws and regulations.
• Implemented a Code of Business Conduct and Ethics.
• Established anti-fraud and anti-corruption measures.

Climate Goals & Targets

Environmental Challenges

• Fluctuations in the Chinese real estate market.
• Government measures aimed at China’s real estate industry.
• Concentration of revenue from a limited number of real estate developers.
• Limited operating history of real estate brokerage network services.
• Significant balances of trade receivables and customer deposits increasing credit risks.

Mitigation Strategies

• Effective growth management strategies.
• Maintaining accurate data in CRIC Systems.
• Diversified customer base.
• Continuous improvement of operational efficiency.

Supply Chain Management

Supplier Audits: Annual

Responsible Procurement

• Local sourcing
• Supplier assessments
• Code of Business Conduct and Ethics

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Hong Kong Stock Exchange’s Environmental, Social and Governance Reporting Guide

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2018 Extraordinary Employer Top 101
• 2018 Top 10 Employers on Enterprise Health Management in China
• 2018 Top Graduate Employers in China
• 2018 China Real Estate Annual Award for Contribution to Education Public Welfare
• 2018 Chinese Enterprise University Trends Leading Award
• 2018 Preferred Service Provider Brands of China’s Top 500 Real Estate Development Enterprises
• 2017 Top 200 Enterprises for Economic Contribution to Jing’an District of Shanghai

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Business disruptions caused by the COVID-19 pandemic, leading to a greater operating loss in the first quarter of 2020. Approximately 1,600 sales offices in mainland China were forced to shut down and ceased operations in the first quarter of 2020.
• Fluctuations in the Chinese real estate market.
• Government measures aimed at China’s real estate industry.
• Concentration of revenue from a limited number of real estate developers.
• Limited operating history of real estate brokerage network services under a new business model.
• Potential for ineffective growth management.
• Risk of losing competitive advantage due to inaccurate data or system disruptions in CRIC Systems.
• Significant balances of trade receivables and customer deposits increasing credit risk.
• Subsidiaries held through Contractual Arrangements, posing legal and operational risks.
• Potential penalties for non-compliance with foreign investment restrictions in the advertising and internet information service industries.
• Dependence on contractual arrangements with Beijing Leju, Shanghai Yi Xin, and Beijing Jiajujiu and their shareholders for operational control.
• Potential conflicts of interest with shareholders of consolidated variable interest entities.
• Limitations on enforcing equity pledge agreements with Beijing Leju, Shanghai Yi Xin, or Beijing Jiajujiu shareholders due to PRC laws and regulations.
• Scrutiny of contractual arrangements by PRC tax authorities, potentially leading to additional tax liabilities.
• Uncertainties in the PRC foreign investment legal regime impacting corporate structure and business operations.

Mitigation Strategies

• Established an outbreak emergency response taskforce to prevent the spread of COVID-19.
• Improved project quality and strengthened control over recoveries, leading to positive operating cash flows.
• Shifting towards high-quality growth by consolidating premium resources and projects.
• Developing digital marketing strategies and partnerships (e.g., with Alibaba) to mitigate the impact of market fluctuations.
• Expanding real estate big data services to non-residential areas.
• Building a full-chain platform for real estate digital marketing.
• Implementing core upgrades in real estate digital services, including PAAS middle platform technology, SaaS business application, and BI Smart Data Analysis.
• Constructing a leading data asset transaction platform using AI algorithms and blockchain technology.
• Actively managing Leju's operations and working towards compliance with foreign investment regulations to acquire full ownership of onshore holding companies.
• Maintaining appropriate insurance coverage for Directors and officers’ liabilities.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Overall downturn in the real estate market leading to a decline in the Group’s business scale.
• Deterioration in the credit quality of several real estate developer customers, resulting in additional loss allowance recognized for ECL on outstanding trade-related receivables.
• Impairment losses on other assets resulting from the overall real estate market downturn.

Mitigation Strategies

• Strictly limited expenditures and reorganized cost structure.
• Disposed of problematic projects in the existing real estate agency services in the primary market sector and adjusted the staffing in this business sector to optimize the direction and pace of resource investment.
• Actively recovered receivables and optimized the projects’ credit periods.
• Formulated a recovery plan, stepped up efforts in collection, prudently evaluated the cooperating developer customers, giving priority to high-quality projects with guaranteed collection and strictly controlling the credit period of collection.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Social Responsibility
• Employee Development
• Environmental Responsibility
• Supply Chain Management
• Business Ethics
• Climate Change Response

Environmental Achievements

• Reduced energy consumption density to 1.76 MWh/person and greenhouse gas emission intensity to 1.23 tonnes/person in 2022.
• Reduced water consumption density to 3.07 tonnes/person in 2022.

Social Achievements

• Won the first place in the “Top 500 Service Brands of Real Estate Development Enterprises in China: Marketing Agency Category” for the seventh consecutive year.
• Maintained leading position in the real estate brokerage network services sector.
• Launched the “Platform of Learning and Information”, which received the Award for Distinguished Contributions to Brand Building of “Digital Proposal” by the CPPCC Shanghai Committee.
• Launched the “Tmall Haofang” rental transaction platform.
• Launched the plan of “Star Anchor of Real Estate Industry”, leveraging livestreaming for marketing.
• Organized the 5th CIOC real estate digital summit.
• Successfully selected into Shanghai High-quality Big Data Service Suppliers Catalog in 2022.
• Launched the “online home sports season” event.
• Provided care packages to employees during the hot summer.
• Launched the “Yi Jia Ren Cai Xue Yuan” online learning platform.
• Donated RMB100,000 to the program of “Building a Home for Them” launched by Green Environment Development Foundation of Yunnan Province.

Governance Achievements

• Complied with all applicable principles and code provisions as set out in the CG Code during the Reporting Period.
• Established three Board committees: Audit Committee, Remuneration Committee, and Nomination Committee.
• Maintained the prescribed percentage of public float under the Listing Rules during the Reporting Period.

Climate Goals & Targets

Environmental Challenges

• Unprecedented challenges and turmoil in China’s real estate industry in 2022, leading to sharply decreased sales and serious liquidity constraints for many leading developers (including the majority of the Group’s clients).
• Substantial decline in the Group’s revenues, especially from real estate agency services in the primary market, and delays in collection of accounts receivables.
• Serious liquidity constraints caused by a large amount of unpaid accounts receivables.
• Inability to recover a substantial portion of outstanding accounts receivables.

Mitigation Strategies

• Effectively reduced the scale of its operation in real estate agency services and focused on cost control and collection of receivables.
• Continued prudent and stable operation in data and consulting services and continued to build and develop its online real estate marketing platform in cooperation with Alibaba.
• Implemented cost-saving measures to improve operating cash flows and financial position.
• Negotiated with creditors for debt restructuring.
• Sought opportunities for disposal of investment property.

Supply Chain Management

Supplier Audits: Regular assessments

Responsible Procurement

• Focus on business ethics, environmental impact, labor rights, occupational health and safety.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Reporting Standards

Frameworks Used: Hong Kong ESG Reporting Guide

Awards & Recognition

• Award for Distinguished Contributions to Brand Building of “Digital Proposal” by the CPPCC Shanghai Committee

Environmental Metrics

ESG Focus Areas

• Social Responsibility
• Employee Benefits and Development
• Environmental Protection
• Community Involvement
• Sustainable Growth
• Compliance with Relevant Laws and Regulations
• Risk Management
• Internal Control

Environmental Achievements

• Reduced energy consumption density to 3.42 MWh/person and greenhouse gas emission intensity to 1.94 tonnes/person in 2023.
• Reduced water consumption density to 5.71 tonnes/person in 2023.
• Implemented waste sorting and recycling programs.

Social Achievements

• Maintained a majority of female employees (57.09%).
• Provided various employee welfare programs, including a 24-hour psychological care hotline.
• Organized employee training programs, including anti-corruption training.
• Implemented a complete remuneration and benefits system.
• No cases of child labor, forced labor, or discrimination were identified in 2023.

Governance Achievements

• Complied with all applicable principles and code provisions of the CG Code.
• Established three Board committees: Audit Committee, Remuneration Committee, and Nomination Committee.
• Implemented a board diversity policy.

Climate Goals & Targets

Environmental Challenges

• Overall downturn in the real estate market in China due to poor buyer sentiment and slower economic growth.
• Significant balances of trade receivables and customer deposits, increasing credit risks.
• Continued and unprecedented industry downturn resulting in a 11.7% year-on-year decrease in total sales revenue.
• Debt restructuring challenges.

Mitigation Strategies

• Focused on cost reduction and cash flow, achieving a 69.3% year-on-year reduction in total net loss and a 60.2% year-on-year decrease in net cash used in operating activities.
• Actively working with financial advisors on an alternative restructuring proposal.

Supply Chain Management

Supplier Audits: Regular assessments

Responsible Procurement

• Suppliers Management System

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Reporting Standards

Frameworks Used: Appendix C2 of the Listing Rules issued by the Stock Exchange of Hong Kong Limited

Awards & Recognition

• First place in the “Top 500 Service Brands of Real Estate Development Enterprises in China – Marketing Agency Category” for consecutive years
• 2023 Excellent Case of Digital Economy Application for the Real Estate Digital Laboratory
• Shanghai Data Certificate for CRIC
• Data Management Capability Maturity Assessment Model (DCMM) Level-3 (Stable Class) Certificate for CRIC