UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of August 2023
Commission file number: 001-39109
Fangdd Network Group Ltd.
Room 4106, Building 12B1
Shenzhen Bay Ecological Technology Park
Nanshan District, Shenzhen, 518067
People’s Republic of China
Phone: +86 755 2699 8968
(Address and Telephone Number of Principal Executive
Offices)
Indicate
by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F x Form 40-F ¨
EXHIBIT INDEX
Signature
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
| |
Fangdd Network Group Ltd. |
| |
|
| |
By: |
/s/ Xi Zeng |
| |
|
Name: |
Xi Zeng |
| |
|
Title: |
Chief Executive Officer and Chairman of the Board of Directors |
Date: August 25, 2023
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 for the same period of 2022. |
| · | Net
income for the six months ended June 30, 2023 was RMB9.4 million (US$1.3 million), compared
to net loss of RMB192.1 million for the same period of 2022. |
| · | Non-GAAP
net income1 was 9.4 million (US$1.30 million) for the six months ended June 30,
2023, compared to non-GAAP net loss2 of RMB182.9 million for the same period
of 2022. |
First Half 2023
Operating Highlights
| · | The
number of closed-loop agents3 was 4.6 thousand for the six months ended
June 30, 2023, representing a decrease of 50.9% from 9.4 thousand for the same period
of 2022. |
| · | Total
closed-loop GMV4 facilitated on the Company’s platform decreased
by 25.5% to RMB8.3 billion (US$1.1 billion) for the six months ended June 30, 2023 from
RMB11.2 billion for the same period of 2022. New property and resale property contributed
RMB7.7 billion (US$1.1 billion) and RMB0.6 billion (US$0.1 billion), respectively, to the
total closed-loop GMV for the six months ended June 30, 2023. The decline in closed-loop
GMV was mainly due to the careful selection of new property projects for cooperation and
the clear-up of the continuous impact of resale property business by the Company under the
weak recovery of the real estate market for the six months ended June 30, 2023. |
1 Non-GAAP
net income is defined as net income excluding share-based compensation expenses. For more information on these non-GAAP financial measures,
please see the section captioned “Non-GAAP Financial Measures” and the tables captioned “Reconciliation of GAAP and
Non-GAAP Results” set forth at the end of this release.
2 Non-GAAP
net loss is defined as net loss excluding share-based compensation expenses. For more information on these non-GAAP financial measures,
please see the section captioned “Non-GAAP Financial Measures” and the tables captioned “Reconciliation of GAAP and
Non-GAAP Results” set forth at the end of this release.
3 Closed-loop
agents refer to real estate agents who have completed closed-loop transactions in the Company’s marketplace under the Company’s
monitoring and control. Closed-loop transactions refer to property transactions in which the major steps are completed or managed by
real estate agents in the Company’s marketplace.
4 “Closed-loop
GMV” refers to the GMV of closed-loop transactions facilitated in the Company’s marketplace during the specified period.
Closed-loop transactions refer to property transactions in which the major steps are completed or managed by real estate agents in the
Company’s marketplace.
Mr. Xi Zeng,
Chairman and Chief Executive Officer of FangDD, commented, “According to the National Bureau of Statistics of China, new property
sales in the first half of 2023 increased by 1.1% year-on-year compared to the low base in the same period of 2022. However, the real
estate market had experienced significant changes in the supply and demand dynamics, with a continuing trend of weakening. In the first
half of 2023, adhering to the principle of ensuring sustainable operations, the Company focused on the cash flow security and profitability
enhancement, and intensified its efforts in equity financing. As a result, the Company has achieved profitability for the first time
since the first half of 2021 and repaid short-term loans ahead of schedule. Additionally, the Company actively explored potential transformation
opportunities in the evolving industry landscape, with a particular emphasis on innovating products related to property asset services.”
First Half 2023
Financial Results
REVENUE
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 for the same
period of 2022. The slight increase was mainly attributed to a series of positive policies implemented by the PRC government to promote
the stable and healthy development of the real estate market.
COST OF REVENUE
Cost of revenue
for the six months ended June 30, 2023 slightly decreased by 4.6% to RMB133.7 million (US$18.4 million) from RMB140.1 million for
the same period of 2022. The slight decrease was primarily due to that: (i) the Company optimized the structure of its business
lines, and the PRC government has implemented a series of positive policies to promote the stable and healthy development of the real
estate market, which result in a slight increase of revenue with certain scale effect to some degree, and (ii) the Company carried
out continuous actions on the optimization of the costs to improve the operating efficiency.
GROSS PROFIT
AND GROSS MARGIN
Gross profit for
the six months ended June 30, 2023 increased by 321.1% to RMB19.8 million (US$2.7 million) from RMB4.7 million for the same period
of 2022. Gross margin for the six months ended June 30, 2023 increased to 12.9% from 3.2% for the same period of 2022. The increase
was mainly due to that: (i) the Company optimized the structure of its business lines, and the PRC government has implemented a
series of positive policies to promote the stable and healthy development of the real estate market, which result in a slight increase
of revenue with certain scale effect to some degree, and (ii) the Company carried out continuous actions on the optimization of
the costs to improve the operating efficiency.
OPERATING
EXPENSES
Operating expenses
for the six months ended June 30, 2023, which included share-based compensation expenses of RMB82 thousand (US$11 thousand), decreased
by 51.5% to RMB88.8 million (US$12.2 million) from RMB182.9 million for the same period of 2022, which included share-based compensation
expenses of RMB9.2 million for the same period of 2022.
| · | Sales
and marketing expenses for the six months ended June 30, 2023 decreased to RMB1.9 million
(US$0.3 million) from RMB8.8 million for the same period of 2022. The decrease was primarily
due to an optimized sales department composition, the reduced spending on marketing activities
related to new property transaction services, and the reduced scale of sales labor expenditure. |
| · | Product
development expenses for the six months ended June 30, 2023 decreased to RMB17.7 million
(US$2.4 million) from RMB39.8 million for the same period of 2022. This decrease was attributable
to the decreases in personnel-related expenses following the Company’s decision to
be more conservative on further investments in research and development. |
| · | General
and administrative expenses for the six months ended June 30, 2023 decreased to RMB69.2
million (US$9.5 million) from RMB134.3 million for the same period of 2022. This decrease
was mainly due to: (i) the decrease in provision of impairment of certain assets, such
as accounts receivable due from developers, other accounts receivable of project deposits
and short-term investments, and (ii) the actions that the Company has taken to improve
operating efficiency, including the action to reduce redundant positions. |
NET INCOME
Net income for
the six months ended June 30, 2023 was RMB9.4 million (US$1.3 million), compared to net loss of RMB192.1 million for the same period
of 2022.
Non-GAAP net income for the six months
ended June 30, 2023 was 9.4 million (US$1.3 million), compared to non-GAAP net loss of RMB182.9 million for the same period of 2022.
NET INCOME
PER ADS
Basic and diluted
net income per American Depositary Share (“ADS”) for the six months ended June 30, 2023 were both RMB0.26 (US$0.04).
In comparison, the Company’s basic and diluted net loss attributable to ordinary shareholders per ADS for the same period of 2022
were both RMB36.08. Each ADS represents 375 of our Class A ordinary shares as of June 30, 2023.
Liquidity
As of June 30,
2023, the Company had cash and cash equivalents, restricted cash, and short-term investments of RMB144.5 million (US$19.9 million). For
the six months ended June 30, 2023, net cash used in operating activities was RMB160.1 million (US$22.1 million).
Exchange Rate
This press release
contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless
otherwise noted, all translations from Renminbi to U.S. dollars, in this press release, were made at a rate of RMB7.2513 to US$1.00,
the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on June 30, 2023. The Company makes no
representation that the Renminbi or U.S. dollar amounts referred could be converted into U.S. dollar or Renminbi, as the case may be,
at any particular rate or at all.
Non-GAAP Financial
Measures
To supplement the
financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release
presents non-GAAP income (loss) from operations, non-GAAP operating margin, non-GAAP net income (loss) and non-GAAP net margin by excluding
share-based compensation expenses from income (loss) from operations and net income (loss). The non-GAAP financial measures are not defined
under U.S. GAAP and are not presented in accordance with U.S. GAAP. The Company believes these non-GAAP financial measures are important
to help investors understand the Company’s operating and financial performance, compare business trends among different reporting
periods on a consistent basis and assess the Company’s core operating results, as they exclude certain expenses that are not expected
to result in cash payments. Using the above non-GAAP financial measures has certain limitations. Share-based compensation expenses have
been and will continue to be incurred in the future and are not reflected in the presentation of the non-GAAP financial measures, but
should be considered in the overall evaluation of the Company’s results. These non-GAAP financial measures should be considered
in addition to financial measures prepared under GAAP, but should not be considered a substitute for, or superior to, financial measures
prepared under GAAP. The Company compensates for these limitations by reconciling these non-GAAP financial measures to the most directly
comparable U.S. GAAP measures, which should be considered when evaluating the Company’s performance. Reconciliation of each of
these non-GAAP financial measures to the most directly comparable GAAP financial measure is set forth at the end of this release.
About FangDD
Fangdd Network
Group Ltd. (Nasdaq: DUO) is a customer-oriented property technology company in China, focusing on providing real estate transaction digitalization
services. Through innovative use of mobile internet, cloud, big data, and artificial intelligence, among others, FangDD has fundamentally
revolutionized the way real estate transaction participants conduct their business through a suite of modular products and solutions
powered by SaaS tools, products, and technology. For more information, please visit http://ir.fangdd.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 “aim,” “anticipate,”
“believe,” “estimate,” “expect,” “hope,” “going forward,” “intend,”
“ought to,” “plan,” “project,” “potential,” “seek,” “may,” “might,”
“can,” “could,” “will,” “would,” “shall,” “should,” “is
likely to” and the negative form of these words and other similar expressions. Among other things, statements that are not historical
facts, including statements about FangDD’s beliefs and expectations, the business outlook and quotations from management in this
announcement, as well as FangDD’s strategic and operational plans, are or contain 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, including but not limited to the following. The general economic and business conditions in China may
deteriorate. The growth of Internet and mobile user population in China might not be as strong as expected. FangDD’s plan to attract
new and retain existing real estate agents, expand property listings, develop new products and increase service offerings might not be
carried out as expected. FangDD might not be able to implement all of its strategic plans as expected. Competition in China may intensify
further. All information provided in this press release is as of the date of this press release and are based on assumptions that the
Company believes to be reasonable as of this date, and FangDD undertakes no obligation to update any forward-looking statement, except
as required under applicable law.
Investor Relations
Contact
Ms. Linda
Li
Director, Capital
Markets Department
Phone: +86-0755-2699-8968
E-mail: ir@fangdd.com
Fangdd
Network Group Ltd.
SELECTED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS DATA
(All
amounts in thousands of Renminbi, except for share and per share data)
| | |
As of December 31, | | |
As of June 30, | |
| | |
2022 | | |
2023 | |
| Assets | |
| | | |
| | |
| Current assets | |
| | | |
| | |
| Cash and cash equivalents | |
| 143,934 | | |
| 130,735 | |
| Restricted cash | |
| 38,811 | | |
| 13,782 | |
| Short-term investments | |
| 2,000 | | |
| - | |
| Accounts receivable, net | |
| 470,997 | | |
| 380,536 | |
| Prepayments and other current assets | |
| 191,996 | | |
| 277,109 | |
| Inventory | |
| 11,157 | | |
| 12,650 | |
| Total current assets | |
| 858,895 | | |
| 814,812 | |
| | |
| | | |
| | |
| Total assets | |
| 1,076,679 | | |
| 972,547 | |
| | |
| | | |
| | |
| LIABILITIES | |
| | | |
| | |
| Current liabilities | |
| | | |
| | |
| Short-term bank borrowings | |
| 72,500 | | |
| - | |
| Accounts payable | |
| 659,215 | | |
| 534,823 | |
| Customers’ refundable fees | |
| 30,747 | | |
| 31,517 | |
| Accrued expenses and other payables | |
| 181,140 | | |
| 120,252 | |
| Income taxes payable | |
| 4,876 | | |
| 1,021 | |
| Operating lease liabilities-current | |
| 1,243 | | |
| 465 | |
| Total current liabilities | |
| 949,721 | | |
| 688,078 | |
| | |
| | | |
| | |
| Total liabilities | |
| 981,285 | | |
| 720,538 | |
| | |
| | | |
| | |
| Total Fangdd Network Group Ltd. shareholders' equity | |
| 100,116 | | |
| 256,252 | |
| Non-controlling interests | |
| (4,722 | ) | |
| (4,243 | ) |
| Total equity | |
| 95,394 | | |
| 252,009 | |
| | |
| | | |
| | |
| Total liabilities and equity | |
| 1,076,679 | | |
| 972,547 | |
Fangdd Network
Group Ltd.
SELECTED UNAUDITED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) DATA
(All amounts
in thousands, except for share and per share data)
| | |
For the Six Months Ended June 30, | |
| | |
2022 | | |
2023 | |
| Revenue | |
| 144,834 | | |
| 153,488 | |
| Cost of revenues | |
| (140,128 | ) | |
| (133,673 | ) |
| Gross profit | |
| 4,706 | | |
| 19,815 | |
| | |
| | | |
| | |
| Operating expenses: | |
| | | |
| | |
| Sales and marketing expenses | |
| (8,802 | ) | |
| (1,855 | ) |
| Product development expenses | |
| (39,797 | ) | |
| (17,725 | ) |
| General and administrative expenses | |
| (134,300 | ) | |
| (69,204 | ) |
| Total operating expenses | |
| (182,899 | ) | |
| (88,784 | ) |
| | |
| | | |
| | |
| Loss from operations | |
| (178,193 | ) | |
| (68,969 | ) |
| | |
| | | |
| | |
| Net (loss) income | |
| (192,100 | ) | |
| 9,361 | |
| Net(loss) income attributable to minority shareholders | |
| (4,745 | ) | |
| 97 | |
| Net (loss) income attributable to ordinary shareholders | |
| (196,845 | ) | |
| 9,458 | |
| | |
| | | |
| | |
| Net (loss) income | |
| (192,100 | ) | |
| 9,361 | |
| Other comprehensive (loss) income | |
| | | |
| | |
| Foreign currency translation adjustment, net of nil income taxes | |
| 9,159 | | |
| 1,267 | |
| Total comprehensive (loss) income , net of income taxes | |
| (182,941 | ) | |
| 10,628 | |
| Total comprehensive (loss) income
attributable to minority shareholders | |
| (4,745 | ) | |
| 97 | |
| Total comprehensive (loss) income
attributable to ordinary shareholders | |
| (187,686 | ) | |
| 10,725 | |
| | |
| | | |
| | |
| Net (loss) income per share | |
| | | |
| | |
| - Basic | |
| (0.10 | ) | |
| 0.001 | |
| - Diluted | |
| (0.10 | ) | |
| 0.001 | |
| Net (loss) income per ADS | |
| | | |
| | |
| - Basic | |
| (36.08 | ) | |
| 0.26 | |
| - Diluted | |
| (36.08 | ) | |
| 0.26 | |
| Weighted average number of ordinary shares used in computing net (loss) income per share, basic and diluted | |
| | | |
| | |
| - Basic | |
| 2,046,388,131 | | |
| 13,937,948,159 | |
| - Diluted | |
| 2,046,388,131 | | |
| 13,937,948,159 | |
Reconciliation
of GAAP and Non-GAAP Results
(All amounts
in thousands, except for share and per share data)
| | |
For the Six Months | |
| | |
Ended June 30, | |
| | |
2022 | | |
2023 | |
| GAAP loss from operations | |
| (178,193 | ) | |
| (68,969 | ) |
| Share-based compensation expenses | |
| 9,207 | | |
| 82 | |
| Non-GAAP loss from operations | |
| (168,986 | ) | |
| (68,887 | ) |
| | |
| | | |
| | |
| GAAP net (loss) income | |
| (192,100 | ) | |
| 9,361 | |
| Share-based compensation expenses | |
| 9,207 | | |
| 82 | |
| Non-GAAP net (loss) income | |
| (182,893 | ) | |
| 9,443 | |
| | |
| | | |
| | |
| GAAP operating margin | |
| (123.03 | )% | |
| (44.93 | )% |
| Share-based compensation expenses | |
| 6.36 | % | |
| 0.05 | % |
| Non-GAAP operating margin | |
| (116.68 | )% | |
| (44.88 | )% |
| | |
| | | |
| | |
| GAAP net margin | |
| (132.63 | )% | |
| 6.10 | % |
| Share-based compensation expenses | |
| 6.36 | % | |
| 0.05 | % |
| Non-GAAP net margin | |
| (126.28 | )% | |
| 6.15 | % |
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