FangDD Reports Second Quarter 2021 Unaudited Financial Results
Second Quarter 2021 Financial Highlights
- Revenue in the second quarter of 2021 increased by 37.9% to
RMB401.4 million (US$62.2 million ) fromRMB291.0 million in the first quarter of 2021. - Net loss was
RMB139.0 million (US$21.5 million ) in the second quarter of 2021, which included provision of allowance for doubtful accounts on accounts receivable from certain real estate developers ofRMB79.1 million (US$12.2 million ) in response to their tighter financial conditions, compared to a net loss ofRMB104.8 million in the first quarter of 2021, which included provision of allowance for doubtful accounts ofRMB20.0 million . If taking the provision of allowance for doubtful accounts effect out of consideration, the net loss would be narrowed toRMB59.9 million (US$9.3 million ) in the second quarter of 2021, compared toRMB84.8 million in the first quarter of 2021. - Non-GAAP net loss1 was
RMB127.9 million (US$19.8 million ) compared to non-GAAP net loss ofRMB93.0 million in the first quarter of 2021. If taking the provision of allowance for doubtful accounts effect out of consideration, the non-GAAP net loss would be narrowed toRMB48.8 million (US$7.6 million ) in the second quarter of 2021, compared toRMB72.9 million in the first quarter of 2021.
Second Quarter 2021 Operating Highlights
- The number of active agents2 in the Company’s marketplace was 249.9 thousand, representing an increase of 13.0% from 221.1 thousand in the first quarter of 2021.
- The number of closed-loop agents3 was 19.0 thousand, representing an increase of 3.3% from 18.4 thousand in the first quarter of 2021.
- Total closed-loop GMV4 facilitated on the Company’s platform decreased by 1.0% to
RMB29.6 billion (US$4.6 billion ) fromRMB29.9 billion in the first quarter of 2021. New property and resale property contributedRMB18.9 billion (US$2.9 billion ) andRMB10.6 billion (US$1.6 billion ), respectively, to the total closed-loop GMV in the second quarter of 2021. The decline in GMV was mainly due to change of fee structures of resale property.
Mr.
Mr.
Ms. Jiaorong Pan, Chief Financial Officer of FangDD, added, “In response to the uncertainties surrounding cash collection from certain developers, we further strengthened our accounts receivable management and utilized our resources in multi-channel funding solutions to support our business development and maintain healthy cash flows.”
Second Quarter 2021 Financial Results
REVENUE
Revenue in the second quarter of 2021 increased by 37.9% to
- Revenue from new property transaction services increased by 32.1% to
RMB358.8 million (US$55.6 million ) in the second quarter of 2021 fromRMB271.6 million in the first quarter of 2021, primarily attributable to an increase of 15.7% in the GMV of new property transactions toRMB18.9 billion (US$2.9 billion ) in the second quarter of 2021 fromRMB16.4 billion in the first quarter of 2021. - Revenue from resale property transaction services increased by 114.4% to
RMB40.3 million (US$6.2 million ) in the second quarter of 2021 fromRMB18.8 million in the first quarter of 2021, primarily attributable to the provision of more comprehensive platform services under our franchise business model Yuancui and the offering of home renovation services under our Tinghaozhu business, despite a 21.7% decrease in GMV of resale property transactions toRMB10.6 billion (US$1.6 billion ) in the second quarter of 2021 fromRMB13.6 billion in the first quarter of 2021. The decline in GMV was mainly due to change of fee structures of resale property. - Revenue from SaaS solutions increased by 268.4% to
RMB2.3 million (US$0.4 million ) in the second quarter of 2021 fromRMB0.6 million in the first quarter of 2021. The increase was primarily attributable to an increase in the number of projects.
COST OF REVENUE
Cost of revenue in the second quarter of 2021 increased by 31.5% to
GROSS PROFIT
Gross profit in the second quarter of 2021 increased by 87.5% to
OPERATING EXPENSES
Operating expenses in the second quarter of 2021, which included
- Sales and marketing expenses in the second quarter of 2021 decreased to
RMB13.1 million (US$2.0 million ) fromRMB37.9 million in the first quarter of 2021. The decrease was primarily due to optimization the composition of its staff members of sales department by reducing the spending on marketing activities related to new property transaction services in order to be more focused on its new SaaS solutions and other value-added services offered to various platform participants in the second quarter of 2021. - Product development expenses in the second quarter of 2021 were
RMB64.5 million (US$10.0 million ) compared toRMB37.3 million in the first quarter of 2021. This increase was attributable to the increases in personnel-related expenses following the Company’s decision to be more focused on the research and development of its value-added services and SaaS solutions. - General and administrative expenses in the second quarter of 2021 were
RMB127.5 million (US$19.7 million ) compared toRMB65.2 million in the first quarter of 2021. This increase was mainly due to the increase in provision of allowance for doubtful accounts on accounts receivable due from certain real estate developers toRMB79.1 million (US$12.2 million ) in the second quarter of 2021 fromRMB20.0 million in the first quarter of 2021, in response to their tighter financial conditions.
NET LOSS
Net loss was
Non-GAAP net loss was
NET LOSS PER ADS
Basic and diluted net loss per American Depositary Share (“ADS”) in the second quarter of 2021 were both
Liquidity
As of
Business Outlook
Due to the impact of Covid-19 on certain core markets and the resulted uncertainty in the company's business performance in the near term, 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: | #4497723 |
Registration Link: | http://apac.directeventreg.com/registration/event/4497723 |
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 |
+1-855-452-5696 | |
+800963117 | |
Replay Code: | #4497723 |
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 |
As of |
||
2020 | 2021 | ||
Assets | |||
Current assets | |||
Cash and cash equivalents | 843,448 | 674,920 | |
Restricted cash | 92,582 | 63,334 | |
Short-term investments | 9,000 | 11,150 | |
Accounts receivable, net | 2,252,103 | 1,783,583 | |
Loans to equity method investees | 92,116 | - | |
Prepayments and other current assets | 185,960 | 357,171 | |
Total current assets | 3,475,209 | 2,890,158 | |
Total assets | 4,047,952 | 3,384,662 | |
LIABILITIES | |||
Current liabilities | |||
Short-term bank borrowings | 443,444 | 290,680 | |
Accounts payable | 1,796,304 | 1,516,168 | |
Customers’ refundable fees | 36,074 | 40,392 | |
Accrued expenses and other payables | 281,648 | 269,405 | |
Income taxes payable | 510 | 658 | |
Total current liabilities | 2,557,980 | 2,117,303 | |
Total liabilities | 2,581,954 | 2,141,974 | |
1,443,463 | 1,230,108 | ||
Non-controlling interests | 22,535 | 12,580 | |
Total equity | 1,465,998 | 1,242,688 | |
Total liabilities and equity | 4,047,952 | 3,384,662 |
SELECTED UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) DATA
(All amounts in thousands, except for share and per share data)
For the Three Months Ended |
For the Six Months Ended |
|||||||||||
2020 | 2021 | 2020 | 2021 | |||||||||
Revenue | 737,690 | 401,424 | 1,009,798 | 692,460 | ||||||||
Cost of revenues | (616,737 | ) | (338,938 | ) | (839,452 | ) | (596,655 | ) | ||||
Gross profit | 120,953 | 62,486 | 170,346 | 95,805 | ||||||||
Operating expenses: | ||||||||||||
Sales and marketing expenses | (2,895 | ) | (13,139 | ) | (4,282 | ) | (50,995 | ) | ||||
Product development expenses | (70,495 | ) | (64,479 | ) | (165,474 | ) | (101,743 | ) | ||||
General and administrative expenses | (80,517 | ) | (127,475 | ) | (173,580 | ) | (192,677 | ) | ||||
Total operating expenses | (153,907 | ) | (205,093 | ) | (343,336 | ) | (345,415 | ) | ||||
Loss from operations | (32,954 | ) | (142,607 | ) | (172,990 | ) | (249,610 | ) | ||||
Net loss | (13,987 | ) | (139,023 | ) | (150,432 | ) | (243,867 | ) | ||||
Net loss attributable to minority shareholders | - | 6,555 | - | 9,650 | ||||||||
Net loss attributable to ordinary shareholders | (13,987 | ) | (132,468 | ) | (150,432 | ) | (234,217 | ) | ||||
Net loss | (13,987 | ) | (139,023 | ) | (150,432 | ) | (243,867 | ) | ||||
Other comprehensive (loss) income | ||||||||||||
Foreign currency translation adjustment, net of nil income taxes | (1,107 | ) | (7,024 | ) | 9,780 | (3,915 | ) | |||||
Total comprehensive loss, net of income taxes | (15,094 | ) | (146,047 | ) | (140,652 | ) | (247,782 | ) | ||||
Total comprehensive loss attributable to minority shareholders | - | 6,555 | - | 9,650 | ||||||||
Total comprehensive loss attributable to ordinary shareholders | (15,094 | ) | (139,492 | ) | (140,652 | ) | (238,132 | ) | ||||
Net loss per share | ||||||||||||
- Basic | (0.01 | ) | (0.07 | ) | (0.08 | ) | (0.12 | ) | ||||
- Diluted | (0.01 | ) | (0.07 | ) | (0.08 | ) | (0.12 | ) | ||||
Net loss per ADS | ||||||||||||
- Basic | (0.18 | ) | (1.64 | ) | (1.89 | ) | (2.92 | ) | ||||
- Diluted | (0.18 | ) | (1.64 | ) | (1.89 | ) | (2.92 | ) | ||||
Weighted average number of ordinary shares used in computing net loss per share, basic and diluted | ||||||||||||
- Basic | 1,996,169,104 | 2,015,321,966 | 1,990,437,318 | 2,005,851,928 | ||||||||
- Diluted | 1,996,169,104 | 2,015,321,966 | 1,990,437,318 | 2,005,851,928 |
Reconciliation of GAAP and Non-GAAP Results
(All amounts in thousands, except for share and per share data)
For the Three Months Ended |
For the Six Months Ended |
||||||||||
2020 |
2021 | 2020 | 2021 | ||||||||
GAAP loss from operations | (32,954 | ) | (142,607 | ) | (172,990 | ) | (249,610 | ) | |||
Share-based compensation expenses | 25,916 | 11,092 | 52,347 | 22,956 | |||||||
Non-GAAP loss from operations | (7,038 | ) | (131,515 | ) | (120,643 | ) | (226,654 | ) | |||
GAAP net loss | (13,987 | ) | (139,023 | ) | (150,432 | ) | (243,867 | ) | |||
Share-based compensation expenses | 25,916 | 11,092 | 52,347 | 22,956 | |||||||
Non-GAAP net income/(loss) | 11,929 | (127,931 | ) | (98,085 | ) | (220,911 | ) | ||||
GAAP operating margin | (4.5 | %) | (35.5 | %) | (17.1 | %) | (36.0 | %) | |||
Share-based compensation expenses | 3.5 | % | 2.8 | % | 5.2 | % | 3.3 | % | |||
Non-GAAP operating margin | (1.0 | %) | (32.8 | %) | (11.9 | %) | (32.7 | %) | |||
GAAP net margin | (1.9 | %) | (34.6 | %) | (14.9 | %) | (35.2 | %) | |||
Share-based compensation expenses | 3.5 | % | 2.8 | % | 5.2 | % | 3.3 | % | |||
Non-GAAP net margin | 1.6 | % | (31.9 | %) | (9.7 | %) | (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 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