FangDD Reports First Quarter 2021 Unaudited Financial Results
First Quarter 2021 Financial Highlights
- Revenue increased by 6.9% to
RMB291.0 million (US$44.4 million ) fromRMB272.1 million in the same period of 2020. - Net loss narrowed to
RMB104.8 million (US$16.0 million ) fromRMB136.4 million in the same period of 2020. - Non-GAAP net loss1 was
RMB93.0 million (US$14.2 million ) compared toRMB110.0 million in the same period of 2020.
First Quarter 2021 Operating Highlights
- The number of active agents2 in the Company’s marketplace was 221.1 thousand, representing an increase of 1.2% from 218.5 thousand in the same period of 2020.
- The number of closed-loop agents3 was 18.4 thousand, representing an increase of 174.6% from 6.7 thousand in the same period of 2020.
- Total closed-loop GMV4 facilitated on the Company’s platform increased by 67.0% to
RMB29.9 billion (US$4.6 billion ) fromRMB17.9 billion in the same period of 2020. New property and resale listings contributedRMB16.4 billion (US$2.5 billion ) andRMB13.5 billion (US$2.1 billion ), respectively, to the total closed-loop GMV in the first quarter of 2021.
Mr.
Mr.
Ms. Jiaorong Pan, Chief Financial Officer of FangDD, added, “Recognizing the current state of the fierce market competition, we will remain focused on optimizing products and improving efficiencies. With the increasing demand of advanced commission payments from agents, we are exploring technology-enabled solutions to address this need through supply chain financing products. Looking ahead, our top priorities in the near term will be the effective management of risks and continuous expansion of our profit margins.
First Quarter 2021 Financial Results
REVENUE
Revenue in the first quarter of 2021 increased by 6.9% to
COST OF REVENUE
Cost of revenue in the first quarter of 2021 increased by 15.7% to
GROSS PROFIT
Gross profit in the first quarter of 2021 decreased by 32.6% to
OPERATING EXPENSES
Operating expenses in the first quarter of 2021, which included share-based compensation expenses of
- Sales and marketing expenses in the first quarter of 2021 increased to
RMB37.9 million (US$5.8 million ) fromRMB1.4 million in the same period of 2020. This increase was primarily due to Company’s increased spending on brand promotion and marketing activities related to its new SaaS solutions offered to various platform participants in the first quarter of 2021. - Product development expenses in the first quarter of 2021 were
RMB37.3 million (US$5.7 million ) compared toRMB95.0 million in the same period of 2020. This decrease was attributable to the decreases in share-based compensation expenses and personnel-related expenses following the Company’s decision to shift its focus from expanding its product development team to optimizing its product development team’s operating efficiency and prioritizing the development of the Company’s SaaS solutions. - General and administrative expenses in the first quarter of 2021 were
RMB65.2 million (US$10.0 million ), compared toRMB93.1 million in the same period of 2020. This decrease was due to the decrease in share-based compensation expenses and the Company’s efforts to implement cost control initiatives in response to the impacts of fierce market competition.
NET LOSS
Net loss in the first quarter of 2021 was
Non-GAAP net loss in the first quarter of 2021 was
NET LOSS PER ADS
Basic and diluted net loss per American Depositary Share (“ADS”) in the first quarter of 2021 were both
Liquidity
As of
Business Outlook
For the second quarter of 2021 the Company expects its revenue to be between
Conference Call Information
The Company’s management team will hold a Direct Event conference call on
Event Title: | |
Conference ID: | #7668126 |
Registration Link: | http://apac.directeventreg.com/registration/event/7668126 |
Due to the global outbreak of the novel coronavirus, operator assisted conference calls are not available at the moment. All participants must use the link provided above to complete the online registration process before the conference call. Upon registering, each participant will receive a set of participant dial-in numbers, the Direct Event passcode, and a unique access PIN, which can be used to join the conference call.
A replay of the conference call will be accessible through
International: | +61-2-8199-0299 |
+1-646-254-3697 | |
+852-3051-2780 | |
Replay Code: | #7668126 |
A live and archived webcast of the conference call will also be available at the Company’s investor relations website at http://ir.fangdd.com/.
Exchange Rate
This press release contains translations of certain Renminbi amounts into
Non-GAAP Financial Measures
To supplement the financial measures prepared in accordance with generally accepted accounting principles in
About FangDD
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the
Investor Relations Contact
FangDD
Ms.
Director,
Phone: +86-0755-2699-8968
E-mail:ir@fangdd.com
Phone: +1(646) 308-1649
E-mail: FangDD@icrinc.com
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 March 31, | ||
2020 | 2021 | ||
Assets | |||
Current assets | |||
Cash and cash equivalents | 843,448 | 806,451 | |
Restricted cash | 92,582 | 54,847 | |
Short-term investments | 9,000 | 11,000 | |
Accounts receivable, net | 2,252,103 | 1,992,863 | |
Loans to equity method investees | 92,116 | - | |
Prepayments and other current assets | 185,960 | 260,919 | |
Total current assets | 3,475,209 | 3,126,080 | |
Total assets | 4,047,952 | 3,645,292 | |
LIABILITIES | |||
Current liabilities | |||
Short-term bank borrowings | 443,444 | 374,500 | |
Accounts payable | 1,796,304 | 1,582,032 | |
Customers’ refundable fees | 36,074 | 36,583 | |
Accrued expenses and other payables | 281,648 | 250,911 | |
Income tax payables | 510 | 622 | |
Total current liabilities | 2,557,980 | 2,244,648 | |
Total liabilities | 2,581,954 | 2,269,165 | |
1,443,463 | 1,356,687 | ||
Noncontrolling interests | 22,535 | 19,440 | |
Total equity | 1,465,998 | 1,376,127 | |
Total liabilities and equity | 4,047,952 | 3,645,292 | |
SELECTED UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) DATA
(All amounts in thousands of Renminbi, except for share and per share data)
For the Three Months Ended |
|||||
2020 | 2021 | ||||
Revenue | 272,108 | 291,036 | |||
Cost of revenue | (222,715 | ) | (257,717 | ) | |
Gross profit | 49,393 | 33,319 | |||
Operating expenses: | |||||
Sales and marketing expenses | (1,387 | ) | (37,856 | ) | |
Product development expenses | (94,979 | ) | (37,264 | ) | |
General and administrative expenses | (93,063 | ) | (65,202 | ) | |
Total operating expenses | (189,429 | ) | (140,322 | ) | |
Loss from operations | (140,036 | ) | (107,003 | ) | |
Net loss | (136,445 | ) | (104,844 | ) | |
Net loss attributable to noncontrolling interests | - | 3,095 | |||
Net loss attributable to |
(136,445 | ) | (101,749 | ) | |
Net loss | (136,445 | ) | (104,844 | ) | |
Other comprehensive income | |||||
Foreign currency translation adjustment, net of tax | 10,887 | 3,109 | |||
Total comprehensive loss, net of tax | (125,558 | ) | (101,735 | ) | |
Total comprehensive loss attributable to noncontrolling interests | - | 3,095 | |||
Total comprehensive loss attributable to ordinary shareholders | (125,558 | ) | (98,640 | ) | |
Net loss per share attributable to ordinary shareholders | |||||
- Basic | (0.07 | ) | (0.05 | ) | |
- diluted | (0.07 | ) | (0.05 | ) | |
Net loss per ADS attributable to ordinary shareholders | |||||
- Basic | (1.75 | ) | (1.27 | ) | |
- diluted | (1.75 | ) | (1.27 | ) | |
Weighted average number of ordinary shares used in computing net loss per share, basic and diluted | |||||
- Basic | 1,984,641,870 | 1,996,169,081 | |||
- diluted | 1,984,641,870 | 1,996,169,081 | |||
Reconciliation of GAAP and Non-GAAP Results
(All amounts in thousands of Renminbi, except for share and per share data)
For the Three Months Ended |
|||||
2020 | 2021 | ||||
GAAP loss from operations | (140,036 | ) | (107,003 | ) | |
Share-based compensation expenses | 26,431 | 11,864 | |||
Non-GAAP loss from operations | (113,605 | ) | (95,139 | ) | |
GAAP net loss | (136,445 | ) | (104,844 | ) | |
Share-based compensation expenses | 26,431 | 11,864 | |||
Non-GAAP net loss | (110,014 | ) | (92,980 | ) | |
GAAP operating margin | (51.5 | )% | (36.8 | %) | |
Share-based compensation expenses | 9.7 | % | 4.1 | % | |
Non-GAAP operating margin | (41.7 | )% | (32.7 | %) | |
GAAP net margin | (50.1 | )% | (36.0 | %) | |
Share-based compensation expenses | 9.7 | % | 4.1 | % | |
Non-GAAP net margin | (40.4 | )% | (31.9 | %) | |
_____________________
1 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.
2 “Active agents” refer to real estate agents who have visited the Company’s marketplace and used one or more of its functions within a period of time.
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.
Fangdd Network Group Ltd