FangDD Reports First Half 2024 Unaudited Financial Results

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$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]