Financial Performance - Revenue for the first half of 2024 decreased by 8.8% to RMB140.0 million (US$19.3 million) compared to RMB153.5 million in the same period of 2023 [2][5] - Net income for the first half of 2024 increased to RMB16.4 million (US$2.3 million) from RMB9.4 million in the same period of 2023 [2][11] - Gross profit decreased by 11.9% to RMB17.5 million (US$2.4 million) with a gross margin rate of 12.5%, down from 12.9% in the same period of 2023 [7] Operating Highlights - Total closed-loop GMV facilitated on the platform decreased by 24.9% to RMB6.2 billion (US$0.9 billion) due to the downturn in the real estate market and careful selection of new property projects [3] - Sales and marketing expenses decreased to RMB513 thousand (US$71 thousand) from RMB1.9 million due to optimized sales department structure and reduced marketing activities [9] - Product development expenses decreased to RMB12.0 million (US$1.6 million) from RMB17.7 million due to reduced personnel-related expenses and a conservative approach to R&D investments [10] Market and Industry Context - The total area of new property sales in China decreased by 19% year-on-year, and the total value of these sales decreased by 25% year-on-year in the first half of 2024 [4] - The real estate market is expected to stabilize in the second half of 2024 with policy support and a reduced high base effect, with annual sales remaining above 10 trillion yuan [4] Liquidity and Cash Flow - As of June 30, 2024, the company had cash and cash equivalents, restricted cash, and short-term investments of RMB154.2 million (US$21.2 million) [13] - Net cash used in operating activities for the first half of 2024 was RMB5.9 million (US$807.3 thousand) [13] Non-GAAP Financial Measures - Non-GAAP net income for the first half of 2024 was RMB16.4 million (US$2.3 million), the same as GAAP net income, as share-based compensation expenses were minimal [11][26] - Non-GAAP operating margin was (49.02)% compared to GAAP operating margin of (49.03)% [26]

SHENZHEN, China, June 24, 2024 (GLOBE NEWSWIRE) -- Fangdd Network Group Ltd. (NASDAQ:DUO) ("FangDD" or the "Company") today announced that it had entered into an agreement to purchase certain patents relating to cloud computer technology in China. The transaction is part of the Company's strategy to expand into technology-enabled real estate management as a supplement to its existing business. The purchase price for the patents is US$35,000,000. Additionally, the seller is entitled to receive an earnout pay ...

SHENZHEN, China, June 03, 2024 (GLOBE NEWSWIRE) -- Fangdd Network Group Ltd. (NASDAQ:DUO) ("FangDD" or the "Company") today announced that the Company and The Bank of New York Mellon intend to terminate the Deposit Agreement, dated October 31, 2019, among FangDD, The Bank of New York Mellon, as the depositary for the Company's American depositary shares (the "ADS"), and owners and holders of ADSs. As a result, the Company's existing American depositary receipts (the "ADR") facility is expected to be termina ...

Fangdd Network (NASDAQ:DUO) stock is rocketing higher on Friday alongside heavy pre-market trading of the investment holding company’s shares.This has more than 19.6 million shares of DUO stock changing hands as of this writing. That’s well above the company’s daily average trading volume of about 1.6 million shares.This heavy trading comes despite a lack of news from Fangdd Network. That includes no new press releases or filings with the Securities and Exchange Commission (SEC).However, this is a week of m ...

SHENZHEN, China, April 19, 2024 (GLOBE NEWSWIRE) -- Fangdd Network Group Ltd. (NASDAQ:DUO) ("FangDD" or the "Company"), a customer-oriented property technology company in China, today announced that it has filed its annual report on Form 20-F for the fiscal year ended December 31, 2023 with the U.S. Securities and Exchange Commission on April 19, 2024. The annual report can be accessed on the Company's website at http://ir.fangdd.com. The Company will provide a hard copy of the annual report containing its ...

Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 284,957 thousand, with revenue from other subsidiaries at RMB 20,574 thousand and from the VIE and its subsidiaries at RMB 265,658 thousand[58]. - Gross profit for the year was RMB 41,194 thousand, with a gross profit margin calculated at approximately 14.5%[58]. - Operating expenses totaled RMB 306,364 thousand, leading to an income from operations of RMB (265,170) thousand, indicating a significant operational loss[58]. - The net loss for the year was RMB 93,104 thousand, with a loss before income tax of RMB (94,993) thousand[58]. - Total revenue for the year ended December 31, 2022, was RMB 245,948 thousand, a significant decrease from RMB 942,380 thousand in 2021, representing a decline of approximately 74%[60]. - The net loss for the year ended December 31, 2022, was RMB 239,588 thousand, compared to a net loss of RMB 1,202,997 thousand in 2021, indicating an improvement in financial performance[60]. - The company reported a gross profit of RMB 24,735 thousand for the year ended December 31, 2022, compared to RMB 106,507 thousand in 2021, indicating a decline in profitability[60]. - The company incurred an equity loss of RMB 80,934 thousand from subsidiaries and the VIE and its subsidiaries[58]. - The company incurred an equity loss of RMB (244,039) thousand from subsidiaries and the VIE for the year ended December 31, 2022[69]. - The company reported a significant equity deficit of RMB 191,497 thousand as of December 31, 2023, compared to a deficit of RMB 95,394 thousand in 2022, indicating challenges in maintaining equity[62][64]. Cash Flow and Liquidity - Cash and cash equivalents at the end of 2022 were RMB 143,934 thousand, up from RMB 121,733 thousand at the end of 2023, reflecting a positive cash flow trend[62][66]. - The company experienced a net cash used in operating activities of RMB 186,118 thousand for the year ended December 31, 2023, compared to a net cash used of RMB 22,647 thousand in 2022, indicating increased operational cash outflows[66]. - The company’s cash flow from financing activities for the year ended December 31, 2023, was RMB 119,831 thousand, reflecting a positive financing environment despite operational challenges[66]. - As of December 31, 2023, cash and cash equivalents were RMB121.7 million (US$17.1 million), indicating liquidity constraints[100]. - The company has no current intention to pay dividends to shareholders and intends to retain all future earnings to finance operations and expand the business[75]. Corporate Structure and Regulatory Environment - The company has 12 wholly owned subsidiaries as of the date of the report, with Xi Zeng holding 46.62% equity interest in Fangdd Network[43]. - The Fangdd Network VIE Agreements allow the WFOE to direct the activities of the VIE and receive substantially all economic benefits, consolidating the VIE's financial results under U.S. GAAP[44]. - The company relies on contractual arrangements with the VIE and its shareholders, which may not be as effective as direct ownership in providing control over the VIE[54]. - The company has not received any inquiries or sanctions regarding its corporate structure from PRC government authorities as of the report date[54]. - The VIE's shareholders may have potential conflicts of interest, which could materially affect the company's business and financial condition[56]. - The company believes its corporate structure and contractual arrangements comply with current applicable PRC laws and regulations, but there are substantial uncertainties regarding the interpretation and application of these laws[215]. - The PRC tax authorities may audit related party transactions within ten years, and adjustments could lead to increased tax liabilities for the VIE[231]. - The company has a series of contractual arrangements with a Variable Interest Entity (VIE) to comply with PRC regulations, which could be subject to regulatory changes[212]. - The legal system in the PRC presents uncertainties that could limit the company's ability to enforce contractual arrangements[228]. Market Conditions and Competition - The real estate market in China is experiencing fluctuations due to government measures, with recent easing of restrictions aimed at stimulating growth[111]. - The company faces significant competition from both online and traditional real estate service providers, which may impact market share[113]. - The company relies heavily on real estate developers for revenue, and any reduction in engagement from these developers could materially affect its financial condition and results of operations[122]. - The company faces increasing competition in the online real estate services industry in China, which may weaken its brand and revenue due to competitors offering superior products and services[115]. - The company is focusing on developing real estate transaction digitalization services, which may increase operating costs without guaranteed revenue growth[100]. Operational Risks - The company has recognized an other-than-temporary impairment loss of RMB15.3 million (US$2.2 million) in 2023 related to investments in limited partnerships due to current real estate market conditions[126]. - The company faces challenges in attracting and retaining qualified personnel due to intense competition, which may require higher compensation and benefits[147]. - The company does not carry key person insurance for senior management, and the loss of key executives could disrupt business operations[148]. - The company may face material adverse effects if the VIE or its shareholders fail to perform their obligations under the contractual arrangements[226]. - The company is exposed to potential liabilities for third-party information in its marketplace, which could result in significant costs and reputational damage[174]. - The company has limited insurance coverage, exposing it to potential substantial costs and operational disruptions[205]. - The company may incur significant financial penalties and government sanctions if it fails to obtain or maintain necessary licenses and permits for its real estate services[168]. Internal Controls and Compliance - A material weakness in internal control over financial reporting was identified, which could lead to inaccuracies in financial statements and affect investor confidence[195]. - The company has identified a lack of sufficient financial reporting personnel knowledgeable in U.S. GAAP, contributing to the material weakness in internal controls[198]. - The company has adopted a rigorous listing verification process to guard against liability for third-party content, but cannot guarantee its effectiveness[175]. - User attitudes towards data privacy are evolving, and concerns may negatively impact the company's ability to access data[167]. - The company has not been involved in any cybersecurity investigations or received sanctions as of the report date, but compliance with data privacy laws remains a concern[164]. Future Outlook - The company plans to reinvest future earnings into business expansion and does not anticipate paying cash dividends in the foreseeable future[88]. - Revenue fluctuations are expected due to seasonal variations, with historically lower revenues in Q1 compared to Q3 and Q4, which contribute the majority of annual revenues[143]. - The company has invested significantly in advertising and marketing, which may impact profitability if these efforts do not yield successful results[121]. - The company has invested in R&D for new products and services, focusing on improving existing platforms, but there is no guarantee of commercial success[142]. - Future government grants are uncertain and may be significantly reduced or discontinued, impacting financial stability[194].

Fangdd Network (NASDAQ:DUO) stock is heading higher on Monday after the company announced plans to enter the real estate stock asset services sector.Fangdd Network notes that the traditional real estate industry in China is reaching a point where it’s switching from an incremental market to a stock market. This has the company shifting its plans to enter that stock market.The company intends to make these changes in 2024. That will see it focus on “improving asset revitalization capabilities,” and “increasi ...

SHENZHEN, China, March 08, 2024 (GLOBE NEWSWIRE) -- Due to urbanization slowdown and per capita housing saturation in China, the traditional real estate industry is constantly shrinking in development scale, and the Chinese real estate market is gradually shifting from an "incremental market" to a "stock market". In the long term, stock assets will be continuously accumulated in scale and value, and the operation of stock assets will become increasingly significant, which will inevitably replace incremental ...

Table of Contents FANGDD NETWORK GROUP LTD. INDEX TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | --- | --- | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------| | CONTENTS | PAGE(S) | | UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2022 AND JUNE 30, 2023 UNAUDITED INTERIM CONDENSED CONS ...

Exhibit 99.1 FangDD Reports First Half 2023 Unaudited Financial Results Shenzhen, China, August 25, 2023 (GlobeNewswire) - Fangdd Network Group Ltd. (NASDAQ: DUO) ("FangDD" or "the Company"), a customer-oriented property technology company in China, today announced its unaudited financial results for the six months ended June 30, 2023. First Half 2023 Financial Highlights · Revenue for the six months ended June 30, 2023 slightly increased by 6.0% to RMB153.5 million (US$21.2 million) from RMB144.8 million f ...