FangDD Reports Third Quarter 2019 Unaudited Financial Results
Third Quarter 2019 Financial Highlights
- Revenue increased by 71.9% year over year to
RMB948.0 million (US$132.6 million ) driven by the robust growth in base commission from transactions.
- Net income grew by 204.9% year over year to
RMB80.3 million (US$11.2million ).
Third Quarter 2019 Operating Highlights
- The number of active agents1 in the Company’s marketplace reached 226.8 thousand, representing a 26.2% year-over-year increase from 179.7 thousand in the third quarter of 2018.
- The number of closed-loop agents2 increased by 135.2% year over year to 20.7 thousand from 8.8 thousand in the third quarter of 2018.
- Total closed-loop GMV3 facilitated on the Company’s platform increased by 74.8% year over year to
RMB51.12 billion (US$7.2 billion ). Closed-loop GMV for new property listings and secondary sales listings wereRMB39.27 billion (US$5.5 billion ) andRMB11.85 billion (US$1.7 billion ), respectively.
Mr. Yi Duan, Chairman and Chief Executive Officer of FangDD, commented, “In the third quarter of this year, we maintained strong growth momentum while delivering solid operating and financial results. Our strong performance was characterized with continued success in the optimization of our SaaS solutions for agents, expansion of our property listings, and the utilization of AI algorithms to embrace the growing market for real estate services. As a result, our revenue in the third quarter of 2019 increased by 71.9% year over year to
Going forward, we believe that as the market in
Third Quarter 2019 Financial Results
REVENUE
Revenue increased by 71.9% to
COST OF REVENUE
Cost of revenue in the third quarter of 2019 increased by 69.2% to
GROSS PROFIT
Gross profit in the third quarter of 2019 increased by 82.7 % to
OPERATING EXPENSES
Operating expenses increased by 39.6% to
- Sales and marketing expenses decreased by 71.4% to
RMB3.8 million (US$0.5 million ) in the third quarter of 2019 fromRMB13.3 million in the corresponding period of 2018. The decrease in the sales and marketing expenses was primarily due to the reduced spending on brand promotion and marketing activities to attract listings from real estate sellers to the Company’s marketplace.
- Product development expenses increased by 44.2% to
RMB73.4 million (US$10.3 million ) in the third quarter of 2019 fromRMB50.9 million in the corresponding period of 2018. The increase was mainly due to higher personnel-related expenses resulting from the increased average compensation during this period.
- General and administrative expenses increased by 93.1% to
RMB44.8 million (US$6.3 million ) in the third quarter of 2019 fromRMB23.2 million in the corresponding period of 2018. The increase was mainly attributable to an increase in personnel-related expenses resulting from an increase in the Company’s employee headcount as well as the average compensation during this period.
INCOME FROM OPERATIONS
Income from operations was
NET INCOME
Net income was
NET INCOME PER ADS
Basic and diluted net income per American Depositary Share (“ADS”) were
BALANCE SHEET AND CASH FLOWS
As of
Business Outlook
For the fourth quarter of 2019, the Company currently expects its revenue to be between
Conference Call Information
The Company will hold a conference call on
United States: | +1-845-675-0437 |
International: | +65-6713-5090 |
Mainland China: | 400-620-8038 |
Hong Kong, China: | +852-3018-6771 |
Conference ID: | #2686986 |
The replay will be accessible through
United States: | +1-646-254-3697 |
International: | +61-2-8199-0299 |
Conference ID: | #2686986 |
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 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
About FangDD
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
Investor Relations Contact
FangDD
Ms.
General Manager,
Tel: +86 (0755) 2699-8968
Email: ir@fangdd.com
Tel: +1 (646) 308-1649
Email: FangDD@icrinc.com
Fangdd Network Group Ltd. | |||||
SELECTED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS DATA | |||||
(All amounts in thousands, except for share and per share data) | |||||
As of December 31, |
As of September 30, |
||||
2018 | 2019 | ||||
RMB | RMB | ||||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | 443,586 | 487,927 | |||
Restricted cash | 350,632 | 233,424 | |||
Short-term investments | 71,483 | 42,600 | |||
Accounts receivable, net | 1,352,596 | 1,988,628 | |||
Prepayments and other current assets | 210,996 | 187,968 | |||
Total current assets | 2,429,293 | 2,940,547 | |||
Total assets | 2,879,284 | 3,552,776 | |||
LIABILITIES | |||||
Current liabilities | |||||
Short-term bank borrowings | 395,000 | 386,030 | |||
Accounts payable | 1,128,248 | 1,718,993 | |||
Customers’ refundable fees | 41,697 | 53,847 | |||
Accrued expenses and other payables | 425,470 | 319,024 | |||
Taxes payables | 369 | 37 | |||
Total current liabilities | 1,990,784 | 2,477,931 | |||
Total liabilities | 2,003,430 | 2,490,918 | |||
Total mezzanine equity | 2,743,144 | 2,978,744 | |||
Total deficit | (1,867,290 | ) | (1,916,886 | ) | |
Total liabilities, mezzanine equity and deficit | 2,879,284 | 3,552,776 | |||
Fangdd Network Group Ltd. | |||||
SELECTED UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) DATA | |||||
(All amounts in thousands, except for share and per share data) | |||||
Three Months Ended September 30, | |||||
2018 | 2019 | ||||
RMB | RMB | ||||
Revenue | 551,430 | 947,963 | |||
Cost of revenues | (442,627 | ) | (749,114 | ) | |
Gross profit | 108,803 | 198,849 | |||
Operating expenses: | |||||
Sales and marketing expenses | (13,273 | ) | (3,835 | ) | |
Product development expenses | (50,902 | ) | (73,399 | ) | |
General and administrative expenses | (23,180 | ) | (44,779 | ) | |
Total operating expenses | (87,355 | ) | (122,013 | ) | |
Income from operations | 21,448 | 76,836 | |||
Net income | 26,339 | 80,308 | |||
Accretion of Redeemable Convertible Preferred Shares | (64,378 | ) | (1,645 | ) | |
Net (loss) income attributable to ordinary shareholders | (38,039 | ) | 78,663 | ||
Net income | 26,339 | 80,308 | |||
Other comprehensive income | |||||
Foreign currency translation adjustment, net of nil income taxes | (61,960 | ) | 60,419 | ||
Total comprehensive (loss) / income, net of income taxes | (35,621 | ) | 140,727 | ||
Net (loss) income per share attributable to ordinary shareholders | |||||
- Basic | (0.04 | ) | 0.08 | ||
- diluted | (0.04 | ) | 0.04 | ||
Net (loss) income per ADS attributable to ordinary shareholders | |||||
- Basic | (1.00 | ) | 2.00 | ||
- diluted | (1.00 | ) | 1.00 | ||
Weighted average number of ordinary shares used in computing net (loss) / income per share, basic and diluted | |||||
- Basic | 945,712,030 | 945,712,030 | |||
- diluted | 945,712,030 | 1,833,965,173 | |||
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1 “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.
2 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.
3 “Closed-loop GMV” refers to the GMV of closed-loop transactions facilitated in the Company’s marketplace during the specified period. “GMV” refers to gross merchandise value, which is calculated as the total value of all transactions we facilitate on our marketplace, including the value of the primary property and secondary property sales transactions and the total rent of the rental property transactions.
Source: Fangdd Network Group Ltd