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| | | | 60 | | |
| | |
For the Year Ended December 31,
|
| |||||||||||||||
| | |
2019
|
| |
2020
|
| |
2021
|
| |||||||||
| | |
(in US$ millions)
|
| |||||||||||||||
Cash received by Fangdd Network Group Ltd. as equity investment
|
| | | | 71.1 | | | | | | 80.2 | | | | | | — | | |
Cash paid by Fangdd Network Group Ltd. to Fangdd Network Holding Ltd.
(Hong Kong) to invest in WFOE, Shenzhen Fangdd Information Technology Co., Ltd(1) |
| | | | 10.5 | | | | | | 95.6 | | | | | | 21.5 | | |
Cash paid by Fangdd Network Holding Ltd. (Hong Kong) to contribute to the payment to WFOE as paid-in capital
|
| | | | 12.0 | | | | | | 113.2 | | | | | | 12.8 | | |
Cash paid by WFOE to VIE, Shenzhen Fangdd Network Technology Co., Ltd., through bank entrusted loan(2)
|
| | | | 35.9 | | | | | | 118.5 | | | | | | 69.0 | | |
| | |
For the Six Months Ended June 30,
|
| |||||||||
| | |
2021
|
| |
2022
|
| ||||||
| | |
(in US$ millions)
|
| |||||||||
Cash received by Fangdd Network Group Ltd. as equity investment
|
| | | | — | | | | | | — | | |
Cash paid by Fangdd Network Group Ltd. to Fangdd Network Holding Ltd. (Hong Kong) to invest in WFOE, Shenzhen Fangdd Information Technology Co., Ltd.(1)
|
| | | | 8.7 | | | | | | — | | |
Cash paid by Fangdd Network Holding Ltd. (Hong Kong) to contribute to the payment to WFOE as paid-in capital
|
| | | | 7.3 | | | | | | — | | |
Cash paid by WFOE to VIE, Shenzhen Fangdd Network Technology Co., Ltd., through bank entrusted loan(2)
|
| | | | 39.5 | | | | | | 6.0 | | |
|
Hypothetical pre-tax earnings(1)
|
| | | | 100.00 | | |
|
Tax on earnings at statutory rate of 25% at Shenzhen Fangdd level
|
| | | | (25.00) | | |
|
Amount to be distributed as dividend from Shenzhen Fangdd to Hong Kong subsidiary(2)
|
| | | | 75.00 | | |
|
Withholding tax at tax treaty rate of 5%
|
| | | | (3.75) | | |
|
Amount to be distributed as dividend at Hong Kong subsidiary level and net distribution to Fangdd Network Group Ltd.
|
| | | | 71.25 | | |
| | |
For the Year Ended December 31,
|
| |
For the Six Months Ended June 30,
|
| ||||||||||||||||||||||||||||||
| | |
2019
|
| |
2020
|
| |
2021
|
| |
2021
|
| |
2022
|
| |||||||||||||||||||||
| | |
RMB
|
| |
RMB
|
| |
RMB
|
| |
RMB
|
| |
RMB
|
| |
US$
|
| ||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
(unaudited)
|
| |||||||||||||||
Revenue
|
| | | | 3,599,436 | | | | | | 2,451,287 | | | | | | 942,380 | | | | | | 692,460 | | | | | | 144,834 | | | | | | 21,623 | | |
Cost of revenue
|
| | | | (2,842,394) | | | | | | (2,036,821) | | | | | | (835,873) | | | | | | (596,655) | | | | | | (140,128) | | | | | | (20,920) | | |
Gross profit
|
| | | | 757,042 | | | | | | 414,466 | | | | | | 106,507 | | | | | | 95,805 | | | | | | 4,706 | | | | | | 703 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sales and marketing expenses
|
| | | | (48,395) | | | | | | (38,020) | | | | | | (64,914) | | | | | | (50,995) | | | | | | (8,802) | | | | | | (1,314) | | |
Product development expenses
|
| | | | (724,983) | | | | | | (301,401) | | | | | | (167,530) | | | | | | (101,743) | | | | | | (39,797) | | | | | | (5,942) | | |
General and administrative expenses
|
| | | | (520,421) | | | | | | (301,065) | | | | | | (831,358) | | | | | | (192,677) | | | | | | (134,300) | | | | | | (20,050) | | |
Total operating expenses
|
| | | | (1,293,799) | | | | | | (640,486) | | | | | | (1,063,802) | | | | | | (345,415) | | | | | | (182,899) | | | | | | (27,306) | | |
Loss from operations
|
| | | | (536,757) | | | | | | (226,020) | | | | | | (957,295) | | | | | | (249,610) | | | | | | (178,193) | | | | | | (26,603) | | |
Other income (expenses): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense, net
|
| | | | (8,719) | | | | | | (12,989) | | | | | | (8,317) | | | | | | (6,956) | | | | | | (1,797) | | | | | | (268) | | |
Foreign currency exchange gain (loss), net
|
| | | | 237 | | | | | | (4,084) | | | | | | (394) | | | | | | (268) | | | | | | 441 | | | | | | 66 | | |
Gain on short-term investments
|
| | | | 2,771 | | | | | | 321 | | | | | | 112 | | | | | | 279 | | | | | | 153 | | | | | | 23 | | |
Impairment loss for long-term equity investment
|
| | | | (16,000) | | | | | | — | | | | | | (26,000) | | | | | | — | | | | | | — | | | | | | — | | |
Impairment loss for equity method investment
|
| | | | — | | | | | | — | | | | | | (187,329) | | | | | | — | | | | | | (62,623) | | | | | | (9,349) | | |
Impairment loss for non-current
assets |
| | | | — | | | | | | — | | | | | | (11,543) | | | | | | — | | | | | | (7,642) | | | | | | (1,141) | | |
Goodwill impairment
|
| | | | — | | | | | | — | | | | | | (31,188) | | | | | | — | | | | | | — | | | | | | — | | |
Government grants
|
| | | | 22,351 | | | | | | 22,885 | | | | | | 22,293 | | | | | | 8,206 | | | | | | 12,270 | | | | | | 1,832 | | |
Other income, net
|
| | | | 7,724 | | | | | | 9,207 | | | | | | 5,618 | | | | | | 5,100 | | | | | | 50,880 | | | | | | 7,596 | | |
| | |
For the Year Ended December 31,
|
| |
For the Six Months Ended June 30,
|
| | ||||||||||||||||||||||||||||||||
| | |
2019
|
| |
2020
|
| |
2021
|
| |
2021
|
| |
2022
|
| | |||||||||||||||||||||||
| | |
RMB
|
| |
RMB
|
| |
RMB
|
| |
RMB
|
| |
RMB
|
| |
US$
|
| | ||||||||||||||||||||
| | |
(in thousands)
|
| | |||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
(unaudited)
|
| | |||||||||||||||||
Share of profit (loss) from equity method investees, net of income tax
|
| | | | 21,772 | | | | | | 3,970 | | | | | | (47) | | | | | | 33 | | | | | | (115) | | | | | | (17) | | | | | |
Loss before income tax
|
| | | | (506,621) | | | | | | (206,710) | | | | | | (1,194,090) | | | | | | (243,216) | | | | | | (186,626) | | | | | | (27,861) | | | | ||
Income tax expense
|
| | | | (3,766) | | | | | | (14,665) | | | | | | (8,907) | | | | | | (651) | | | | | | (5,474) | | | | | | (817) | | | | ||
Net loss
|
| | | | (510,387) | | | | | | (221,375) | | | | | | (1,202,997) | | | | | | (243,867) | | | | | | (192,100) | | | | | | (28,678) | | | | ||
Net (profit)/loss attributable to noncontrolling interests
|
| | | | — | | | | | | 1,087 | | | | | | 31,832 | | | | | | 9,650 | | | | | | (4,745) | | | | | | (708) | | | | ||
Net loss attributable to Fangdd Network Group Ltd.
|
| | | | (510,387) | | | | | | (220,288) | | | | | | (1,171,165) | | | | | | (234,217) | | | | | | (196,845) | | | | | | (29,386) | | | | ||
Accretion of redeemable convertible preferred shares
|
| | | | (116,308) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | ||
Deemed dividend to preferred shareholders
|
| | | | (642,174) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | ||
Net loss attributable to ordinary shareholders
|
| | | | (1,268,869) | | | | | | (220,288) | | | | | | (1,171,165) | | | | | | (234,217) | | | | | | (196,845) | | | | | | (29,386) | | | | ||
Net loss
|
| | | | (510,387) | | | | | | (221,375) | | | | | | (1,202,997) | | | | | | (243,867) | | | | | | (192,100) | | | | | | (28,678) | | | | ||
|
| | |
As of December 31,
|
| |
As of June 30,
2022 |
| ||||||||||||||||||
| | |
2020
|
| |
2021
|
| ||||||||||||||||||
| | |
RMB
|
| |
RMB
|
| |
RMB
|
| |
US$
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
| | | | | | | | | | | | | | |
(unaudited)
|
| |||||||||
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | | 843,448 | | | | | | 492,107 | | | | | | 239,231 | | | | | | 35,716 | | |
Restricted cash
|
| | | | 92,582 | | | | | | 24,131 | | | | | | 34,709 | | | | | | 5,182 | | |
Short-term investments
|
| | | | 9,000 | | | | | | 6,150 | | | | | | 4,150 | | | | | | 620 | | |
Accounts receivable, net
|
| | | | 2,252,103 | | | | | | 884,740 | | | | | | 677,902 | | | | | | 101,208 | | |
Loans to equity method investees, net
|
| | | | 92,116 | | | | | | — | | | | | | — | | | | | | — | | |
Prepayments and other assets, net
|
| | | | 185,960 | | | | | | 220,171 | | | | | | 178,680 | | | | | | 26,676 | | |
Inventory
|
| | | | — | | | | | | — | | | | | | 10,969 | | | | | | 1,638 | | |
Total current assets
|
| | | | 3,475,209 | | | | | | 1,627,299 | | | | | | 1,145,641 | | | | | | 171,040 | | |
Non-current assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Property, equipment and software, net
|
| | | | 14,493 | | | | | | 14,562 | | | | | | 4,844 | | | | | | 723 | | |
Intangible assets, net
|
| | | | 7,418 | | | | | | — | | | | | | — | | | | | | — | | |
Equity method investments, net
|
| | | | 468,598 | | | | | | 257,122 | | | | | | 207,427 | | | | | | 30,968 | | |
Long-term equity investment, net
|
| | | | 40,000 | | | | | | 14,000 | | | | | | 14,000 | | | | | | 2,090 | | |
Deferred tax assets, net
|
| | | | 3,558 | | | | | | — | | | | | | — | | | | | | — | | |
Goodwill, net
|
| | | | 31,188 | | | | | | — | | | | | | 454 | | | | | | 68 | | |
Other non-current assets
|
| | | | 7,488 | | | | | | — | | | | | | — | | | | | | — | | |
Total non-current assets
|
| | | | 572,743 | | | | | | 285,684 | | | | | | 226,725 | | | | | | 33,849 | | |
Total assets
|
| | | | 4,047,952 | | | | | | 1,912,983 | | | | | | 1,372,366 | | | | | | 204,889 | | |
| | |
As of December 31,
|
| |
As of June 30,
2022 |
| ||||||||||||||||||
| | |
2020
|
| |
2021
|
| ||||||||||||||||||
| | |
RMB
|
| |
RMB
|
| |
RMB
|
| |
US$
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
| | | | | | | | | | | | | | |
(unaudited)
|
| |||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Short-term bank borrowings
|
| | | | 443,444 | | | | | | 134,780 | | | | | | 84,780 | | | | | | 12,657 | | |
Accounts payable
|
| | | | 1,796,304 | | | | | | 1,175,943 | | | | | | 913,109 | | | | | | 136,324 | | |
Customers’ refundable fees
|
| | | | 36,074 | | | | | | 30,997 | | | | | | 40,430 | | | | | | 6,036 | | |
Accrued expenses and other payables
|
| | | | 281,648 | | | | | | 238,198 | | | | | | 170,094 | | | | | | 25,394 | | |
Income tax payables
|
| | | | 510 | | | | | | 813 | | | | | | 4,721 | | | | | | 705 | | |
Total current liabilities
|
| | | | 2,557,980 | | | | | | 1,580,731 | | | | | | 1,213,134 | | | | | | 181,116 | | |
Non-current liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Income tax payables
|
| | | | 23,840 | | | | | | 28,575 | | | | | | 28,913 | | | | | | 4,317 | | |
Deferred tax liabilities
|
| | | | 134 | | | | | | — | | | | | | — | | | | | | — | | |
Total non-current liabilities
|
| | | | 23,974 | | | | | | 28,575 | | | | | | 28,913 | | | | | | 4,317 | | |
Total liabilities
|
| | | | 2,581,954 | | | | | | 1,609,306 | | | | | | 1,242,047 | | | | | | 185,433 | | |
Commitments and contingencies | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity: | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Ordinary shares (US$0.0000001 par value,
5,000,000,000 shares authorized including Class A and Class B ordinary shares, 1,376,231,023 and 1,426,450,073 shares issued and outstanding as of December 31, 2020 and 2021 and June 30, 2022, respectively) |
| | | | 1 | | | | | | 1 | | | | | | 1 | | | | | | — | | |
Class B Ordinary shares (US$0.0000001 par value, 5,000,000,000 shares authorized including Class A and Class B ordinary shares, 619,938,058 shares issued and outstanding as of December 31, 2020 and 2021 and June 30, 2022, respectively)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Additional paid-in capital
|
| | | | 4,982,885 | | | | | | 5,031,772 | | | | | | 5,040,979 | | | | | | 752,598 | | |
Accumulated other comprehensive loss
|
| | | | (396,951) | | | | | | (404,877) | | | | | | (395,718) | | | | | | (59,079) | | |
Accumulated deficit
|
| | | | (3,142,472) | | | | | | (4,313,637) | | | | | | (4,510,482) | | | | | | (673,397) | | |
Total Fangdd Network Group Ltd. shareholders’ equity
|
| | | | 1,443,463 | | | | | | 313,259 | | | | | | 134,780 | | | | | | 20,122 | | |
Non-controlling interests
|
| | | | 22,535 | | | | | | (9,582) | | | | | | (4,461) | | | | | | (666) | | |
Total equity
|
| | | | 1,465,998 | | | | | | 303,677 | | | | | | 130,319 | | | | | | 19,456 | | |
Total liabilities and equity
|
| | | | 4,047,952 | | | | | | 1,912,983 | | | | | | 1,372,366 | | | | | | 204,889 | | |
|
| | |
For the Year Ended December 31,
|
| |
For the Six Months Ended June 30,
|
| ||||||||||||||||||||||||||||||
| | |
2019
|
| |
2020
|
| |
2021
|
| |
2021
|
| |
2022
|
| |||||||||||||||||||||
| | |
RMB
|
| |
RMB
|
| |
RMB
|
| |
RMB
|
| |
RMB
|
| |
US$
|
| ||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
(unaudited)
|
| |||||||||||||||
Cash flows from operating activities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | | (510,387) | | | | | | (221,375) | | | | | | (1,202,997) | | | | | | (243,867) | | | | | | (192,100) | | | | | | (28,678) | | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 4,842 | | | | | | 3,781 | | | | | | 7,695 | | | | | | 4,185 | | | | | | 2,081 | | | | | | 311 | | |
Share-based compensation expenses
|
| | | | 745,873 | | | | | | 102,750 | | | | | | 47,067 | | | | | | 22,956 | | | | | | 9,207 | | | | | | 1,375 | | |
Gain on short-term investments
|
| | | | (2,771) | | | | | | (321) | | | | | | (112) | | | | | | (279) | | | | | | (153) | | | | | | (23) | | |
Impairment loss for non-current assets
|
| | | | — | | | | | | — | | | | | | 11,543 | | | | | | — | | | | | | 7,642 | | | | | | 1,141 | | |
Goodwill impairment
|
| | | | — | | | | | | — | | | | | | 31,188 | | | | | | — | | | | | | — | | | | | | — | | |
Impairment loss for long-term equity
investment |
| | | | 16,000 | | | | | | — | | | | | | 26,000 | | | | | | — | | | | | | — | | | | | | — | | |
Impairment loss for short-term equity investment
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 144,027 | | | | | | 21,503 | | |
Impairment loss for equity method
investment |
| | | | — | | | | | | — | | | | | | 187,329 | | | | | | — | | | | | | 62,623 | | | | | | 9,349 | | |
Share of loss (profit) from equity method investments, net of income tax
|
| | | | (21,772) | | | | | | (3,970) | | | | | | 47 | | | | | | (33) | | | | | | 115 | | | | | | 17 | | |
Other income, net
|
| | | | (8,321) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Dividend received from equity method investments
|
| | | | 9,602 | | | | | | 644 | | | | | | — | | | | | | 236 | | | | | | — | | | | | | — | | |
Allowance (Reversal) for doubtful
accounts |
| | | | 58,981 | | | | | | 68,581 | | | | | | 612,653 | | | | | | 99,134 | | | | | | (81,004) | | | | | | (12,094) | | |
Loss (Gain) on disposal of property and equipment
|
| | | | 439 | | | | | | 51 | | | | | | 322 | | | | | | (8) | | | | | | 175 | | | | | | 26 | | |
Foreign currency exchange loss (gain), net
|
| | | | (237) | | | | | | 4,084 | | | | | | 394 | | | | | | 268 | | | | | | (441) | | | | | | (66) | | |
Deferred income tax expenses
|
| | | | 1,178 | | | | | | 1,912 | | | | | | 3,424 | | | | | | (638) | | | | | | — | | | | | | — | | |
Changes in operating assets and liabilities, net of
effects of acquisition |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts receivables
|
| | | | (893,223) | | | | | | (130,045) | | | | | | 867,027 | | | | | | 369,386 | | | | | | 299,277 | | | | | | 44,681 | | |
Prepayments and other assets
|
| | | | 29,846 | | | | | | 8,596 | | | | | | 98,000 | | | | | | 64,458 | | | | | | 21,664 | | | | | | 3,234 | | |
Accounts payables
|
| | | | 769,363 | | | | | | (101,264) | | | | | | (620,361) | | | | | | (280,136) | | | | | | (262,834) | | | | | | (39,240) | | |
Customers’ refundable fees
|
| | | | 3,219 | | | | | | (8,842) | | | | | | (8,286) | | | | | | 1,109 | | | | | | 9,433 | | | | | | 1,408 | | |
Accrued expenses and other payables
|
| | | | (84,943) | | | | | | (62,010) | | | | | | (126,563) | | | | | | (95,354) | | | | | | (70,588) | | | | | | (10,540) | | |
Income tax payables
|
| | | | 822 | | | | | | 12,433 | | | | | | 5,012 | | | | | | 819 | | | | | | 4,246 | | | | | | 634 | | |
Net cash provided by (used in) operating
activities |
| | | | 118,511 | | | | | | (324,995) | | | | | | (60,618) | | | | | | (57,764) | | | | | | (46,630) | | | | | | (6,962) | | |
| | |
For the Year Ended December 31,
|
| |
For the Six Months Ended
June 30, |
| ||||||||||||||||||||||||||||||
| | |
2019
|
| |
2020
|
| |
2021
|
| |
2021
|
| |
2022
|
| |||||||||||||||||||||
| | |
RMB
|
| |
RMB
|
| |
RMB
|
| |
RMB
|
| |
RMB
|
| |
US$
|
| ||||||||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
(unaudited)
|
| |||||||||||||||
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Purchase of property, equipment and
software |
| | | | (1,695) | | | | | | (10,248) | | | | | | (12,461) | | | | | | (11,067) | | | | | | (194) | | | | | | (29) | | |
Proceeds from disposal of property, equipment and software
|
| | | | 3,566 | | | | | | 52 | | | | | | 252 | | | | | | 39 | | | | | | — | | | | | | — | | |
Investment in equity method investments
|
| | | | (579,492) | | | | | | (1,458) | | | | | | (84,566) | | | | | | (490) | | | | | | (32,354) | | | | | | (4,830) | | |
Return of capital from equity method
investees |
| | | | 358,558 | | | | | | 115,449 | | | | | | 50,088 | | | | | | 26,652 | | | | | | 19,311 | | | | | | 2,883 | | |
Cash proceeds from (paid for) business combination, net of cash acquired
|
| | | | — | | | | | | (8,652) | | | | | | — | | | | | | 3,595 | | | | | | (648) | | | | | | (97) | | |
Proceeds from disposal of an equity method investment
|
| | | | 4,500 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Loans to equity method investees
|
| | | | — | | | | | | (92,116) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Cash paid for short-term investments
|
| | | | (456,167) | | | | | | (1,266,273) | | | | | | (104,139) | | | | | | (71,139) | | | | | | (262,896) | | | | | | (39,249) | | |
Proceeds from disposal of short-term investments
|
| | | | 518,921 | | | | | | 1,269,094 | | | | | | 107,101 | | | | | | 69,269 | | | | | | 121,022 | | | | | | 18,068 | | |
Net cash provided by (used in) investing
activities |
| | | | (151,809) | | | | | | 5,848 | | | | | | (43,725) | | | | | | 16,859 | | | | | | (155,759) | | | | | | (23,254) | | |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Proceeds from initial public offering, net of offering cost
|
| | | | 498,436 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Contribution from noncontrolling
shareholder |
| | | | — | | | | | | — | | | | | | 1,535 | | | | | | 78 | | | | | | 490 | | | | | | 73 | | |
Cash proceeds from short-term bank borrowings
|
| | | | 540,030 | | | | | | 540,943 | | | | | | 154,180 | | | | | | 54,180 | | | | | | — | | | | | | — | | |
Repayment for short-term bank
borrowings |
| | | | (445,030) | | | | | | (587,500) | | | | | | (462,844) | | | | | | (206,944) | | | | | | (50,000) | | | | | | (7,465) | | |
Net cash provided by (used in) financing
activities |
| | | | 593,436 | | | | | | (46,557) | | | | | | (307,129) | | | | | | (152,686) | | | | | | (49,510) | | | | | | (7,392) | | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
| | | | (20,484) | | | | | | (32,138) | | | | | | (8,320) | | | | | | (4,182) | | | | | | 9,601 | | | | | | 1,434 | | |
Net increase (decrease) in cash, cash equivalents and restricted cash
|
| | | | 539,654 | | | | | | (397,842) | | | | | | (419,792) | | | | | | (197,773) | | | | | | (242,298) | | | | | | (36,174) | | |
Cash, cash equivalents and restricted cash at the
beginning of the year |
| | | | 794,218 | | | | | | 1,333,872 | | | | | | 936,030 | | | | | | 936,030 | | | | | | 516,238 | | | | | | 77,072 | | |
Cash, cash equivalents and restricted cash at the end of the year
|
| | | | 1,333,872 | | | | | | 936,030 | | | | | | 516,238 | | | | | | 738,257 | | | | | | 273,940 | | | | | | 40,898 | | |
Supplemental information | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest paid
|
| | | | (18,411) | | | | | | (23,980) | | | | | | (18,277) | | | | | | (11,456) | | | | | | (3,233) | | | | | | (483) | | |
Income tax paid
|
| | | | (1,717) | | | | | | (320) | | | | | | (445) | | | | | | (445) | | | | | | (812) | | | | | | (121) | | |
Disposal of a subsidiary with net liability
|
| | | | (1,900) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | |
For the Year Ended December 31,
|
| |
For the Six Months Ended June 30,
|
| ||||||||||||||||||||||||||||||
| | |
2019
|
| |
2020
|
| |
2021
|
| |
2021
|
| |
2022
|
| |||||||||||||||||||||
| | |
RMB
|
| |
RMB
|
| |
RMB
|
| |
RMB
|
| |
RMB
|
| |
US$
|
| ||||||||||||||||||
| | |
(in thousands, except for percentages)
|
| |||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
(unaudited)
|
| |||||||||||||||
GAAP loss from operations
|
| | | | (536,757) | | | | | | (226,020) | | | | | | (957,295) | | | | | | (249,610) | | | | | | (178,193) | | | | | | (26,604) | | |
Share-based compensation expenses
|
| | | | 745,873 | | | | | | 102,750 | | | | | | 47,067 | | | | | | 22,956 | | | | | | 9,207 | | | | | | 1,375 | | |
Non-GAAP loss from operations
|
| | | | 209,116 | | | | | | (123,270) | | | | | | (910,228) | | | | | | (226,654) | | | | | | (168,986) | | | | | | (25,229) | | |
GAAP net loss
|
| | | | (510,387) | | | | | | (221,375) | | | | | | (1,202,997) | | | | | | (243,867) | | | | | | (192,100) | | | | | | (28,680) | | |
Share-based compensation expenses
|
| | | | 745,873 | | | | | | 102,750 | | | | | | 47,067 | | | | | | 22,956 | | | | | | 9,207 | | | | | | 1,375 | | |
Non-GAAP net loss
|
| | | | 235,486 | | | | | | (118,625) | | | | | | (1,155,930) | | | | | | (220,911) | | | | | | (182,893) | | | | | | (27,305) | | |
GAAP operating margin (%)
|
| | | | (14.9) | | | | | | (9.2) | | | | | | (101.6) | | | | | | (36.1) | | | | | | (123.0) | | | | | | (123.0) | | |
Share-based compensation expenses (%)
|
| | | | 20.7 | | | | | | 4.2 | | | | | | 5.0 | | | | | | 3.3 | | | | | | 6.4 | | | | | | 6.4 | | |
Non-GAAP operating margin (%)
|
| | | | 5.8 | | | | | | (5.0) | | | | | | (96.6) | | | | | | (32.7) | | | | | | (116.7) | | | | | | (116.7) | | |
GAAP net margin (%)
|
| | | | (14.2) | | | | | | (9.0) | | | | | | (127.7) | | | | | | (35.2) | | | | | | (132.6) | | | | | | (132.6) | | |
Share-based compensation expenses (%)
|
| | | | 20.7 | | | | | | 4.2 | | | | | | 5.0 | | | | | | 3.3 | | | | | | 6.4 | | | | | | 6.4 | | |
Non-GAAP net margin (%)
|
| | | | 6.5 | | | | | | (4.8) | | | | | | (122.7) | | | | | | (31.9) | | | | | | (126.3) | | | | | | (126.3) | | |
| | |
As of June 30, 2022
|
| |||||||||||||||||||||||||||||||||
| | |
Actual
|
| |
As Adjusted
|
| |
As Further Adjusted
|
| |||||||||||||||||||||||||||
| | |
RMB
|
| |
US$
|
| |
RMB
|
| |
US$
|
| |
RMB
|
| |
US$
|
| ||||||||||||||||||
Cash and cash equivalents
|
| | | | 239,231 | | | | | | 35,716 | | | | | | 242,384 | | | | | | 36,187 | | | | | | 245,600 | | | | | | 36,667 | | |
Restricted cash
|
| | | | 34,709 | | | | | | 5,182 | | | | | | 34,709 | | | | | | 5,182 | | | | | | 34,709 | | | | | | 5,182 | | |
Shareholders’ equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A ordinary shares
(US$0.0000001 par value, 5,000,000,000 shares authorized including Class A and Class B ordinary shares, 1,426,450,073 shares issued and outstanding as of June 30, 2022) |
| | | | 1 | | | | | | — | | | | | | 1 | | | | | | — | | | | | | 1 | | | | | | — | | |
Class B ordinary shares
(US$0.0000001 par value, 5,000,000,000 shares authorized including Class A and Class B ordinary shares, 619,938,058 shares issued and outstanding as of June 30, 2022) |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Additional paid-in capital
|
| | | | 5,040,979 | | | | | | 752,598 | | | | | | 5,044,132 | | | | | | 753,069 | | | | | | 5,047,348 | | | | | | 753,549 | | |
Accumulated other comprehensive income
|
| | | | (395,718) | | | | | | (59,079) | | | | | | (395,718) | | | | | | (59,079) | | | | | | (395,718) | | | | | | (59,079) | | |
Accumulated deficit
|
| | | | (4,510,482) | | | | | | (673,397) | | | | | | (4,510,482) | | | | | | (673,397) | | | | | | (4,510,482) | | | | | | (673,397) | | |
Total shareholders’ equity
|
| | | | 134,780 | | | | | | 20,122 | | | | | | 137,933 | | | | | | 20,593 | | | | | | 141,149 | | | | | | 21,073 | | |
Total capitalization
|
| | | | 134,780 | | | | | | 20,122 | | | | | | 137,933 | | | | | | 20,593 | | | | | | 141,149 | | | | | | 21,073 | | |
|
Registered direct offering price per ADS
|
| | | US$ | 0.6208 | | |
|
Historical net tangible book value per ADS as of June 30, 2022
|
| | | US$ | 3.6545 | | |
|
Decrease in net tangible book value per ADS attributable to this offering (after giving effect to the issuance of 1,000,000 ADSs on December 9, 2022)
|
| | | US$ | 0.8033 | | |
|
As adjusted net tangible book value per ADS after giving effect to this offering (as well as the issuance of 1,000,000 ADSs on December 9, 2022)
|
| | | US$ | 2.8511 | | |
|
Dilution per ADS to the new investors purchasing ADSs in this offering
|
| | | US$ | 0.8033 | | |
| | |
Ordinary Shares Beneficially Owned Prior to This Offering
|
| |
Ordinary Shares Beneficially
Owned After This Offering |
| ||||||||||||||||||||||||||||||||||||||||||
| | |
Class A
Ordinary Shares Beneficially Owned |
| |
Class B
Ordinary Shares Beneficially Owned |
| |
Class C
Ordinary Shares Beneficially Owned |
| |
Total
Ordinary Shares Beneficially Owned |
| |
% of
Total Ordinary Shares† |
| |
% of
Aggregate Voting Power†† |
| |
% of
Total Ordinary Shares† |
| |
% of
Aggregate Voting Power†† |
| ||||||||||||||||||||||||
Directors and Executive
Officers:** |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Xi Zeng(1)
|
| | | | — | | | | | | 161,396,567 | | | | | | 75,000 | | | | | | 161,471,567 | | | | | | 6.5 | | | | | | 30.9 | | | | | | 5.7 | | | | | | 29.5 | | |
Jiaorong Pan(2)
|
| | | | 29,249,399 | | | | | | — | | | | | | — | | | | | | 29,249,399 | | | | | | 1.2 | | | | | | 0.4 | | | | | | 1.0 | | | | | | 0.4 | | |
Li Xiao
|
| | | | * | | | | | | — | | | | | | — | | | | | | * | | | | | | * | | | | | | * | | | | | | * | | | | | | * | | |
Yi Duan(3)
|
| | | | — | | | | | | 329,021,793 | | | | | | — | | | | | | 329,021,793 | | | | | | 13.3 | | | | | | 43.1 | | | | | | 11.5 | | | | | | 41.1 | | |
Yang Li
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Senlin Peng
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Zhen Xie
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Shuiying Chen
|
| | | | * | | | | | | — | | | | | | — | | | | | | * | | | | | | * | | | | | | * | | | | | | * | | | | | | * | | |
All Directors and Executive Officers
as a Group |
| | | | 48,412,680 | | | | | | 490,418,360 | | | | | | 75,000 | | | | | | 538,906,040 | | | | | | 21.8 | | | | | | 74.6 | | | | | | 18.9 | | | | | | 71.1 | | |
Principal Shareholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
CC NETWORK INTERNATIONAL LTD(3)
|
| | | | — | | | | | | 329,021,793 | | | | | | — | | | | | | 329,021,793 | | | | | | 13.3 | | | | | | 43.1 | | | | | | 11.5 | | | | | | 41.1 | | |
ZX INTERNATIONAL LTD(1)
|
| | | | — | | | | | | 161,396,567 | | | | | | 75,000 | | | | | | 161,471,567 | | | | | | 6.5 | | | | | | 30.9 | | | | | | 5.7 | | | | | | 29.5 | | |
FANGDD DECENT INTERNATIONAL LTD. and its affiliate(4)
|
| | | | 138,698,218 | | | | | | — | | | | | | — | | | | | | 138,698,218 | | | | | | 5.6 | | | | | | 1.8 | | | | | | 4.9 | | | | | | 1.7 | | |
TIANYU NETWORK INTERNATIONAL LTD(5)
|
| | | | 129,519,698 | | | | | | — | | | | | | — | | | | | | 129,519,698 | | | | | | 5.2 | | | | | | 1.7 | | | | | | 4.5 | | | | | | 1.6 | | |
Persons depositing or withdrawing Class A ordinary shares or
ADS holders must pay: |
| |
For:
|
|
US$5.00 (or less) per 100 ADSs (or portion of 100 ADSs) | | | Issuance of ADSs, including issuances resulting from a distribution of Class A ordinary shares or rights or other property | |
| | | Cancellation of ADSs for the purpose of withdrawal, including if the deposit agreement terminates | |
US$.05 (or less) per ADS | | | Any cash distribution to ADS holders | |
A fee equivalent to the fee that would be payable if securities distributed to you had been Class A ordinary shares and the Class A ordinary shares had been deposited for issuance of ADSs | | | Distribution of securities distributed to holders of deposited securities (including rights) that are distributed by the depositary to ADS holders | |
US$.05 (or less) per ADS per calendar year | | | Depositary services | |
Registration or transfer fees | | | Transfer and registration of Class A ordinary shares on our share register to or from the name of the depositary or its agent when you deposit or withdraw Class A ordinary shares | |
Expenses of the depositary | | | Cable (including SWIFT) and facsimile transmissions (when expressly provided in the deposit agreement) | |
| | | Converting foreign currency to U.S. dollars | |
Taxes and other governmental charges the depositary or the custodian has to pay on any ADSs or Class A ordinary shares underlying ADSs, such as stock transfer taxes, stamp duty or withholding taxes | | | As necessary | |
Any charges incurred by the depositary or its agents for servicing the deposited securities | | | As necessary | |
| | |
Page
|
| |||
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| | | | 27 | | | |
| | | | 33 | | | |
| | | | 36 | | | |
| | | | 38 | | | |
| | | | 47 | | | |
| | | | 49 | | | |
| | | | 51 | | | |
| | | | 52 | | | |
| | | | 53 | | | |
| | | | 54 | | | |
| | | | 55 | | | |
| | | | 56 | | | |
| | | | 57 | | | |
| | | | 59 | | | |
| | | | 60 | | |
| | |
For the Year Ended December 31,
|
| |||||||||||||||
| | |
2019
|
| |
2020
|
| |
2021
|
| |||||||||
| | |
(in US$ millions)
|
| |||||||||||||||
Cash received by Fangdd Network Group Ltd. as equity investment
|
| | | | 71.1 | | | | | | 80.2 | | | | | | — | | |
Cash paid by Fangdd Network Group Ltd. to Fangdd Network Holding Ltd.
(Hong Kong) to invest in WFOE, Shenzhen Fangdd Information Technology Co., Ltd(1) |
| | | | 10.5 | | | | | | 95.6 | | | | | | 21.5 | | |
Cash paid by Fangdd Network Holding Ltd. (Hong Kong) to contribute to the payment to WFOE as paid-in capital
|
| | | | 12.0 | | | | | | 113.2 | | | | | | 12.8 | | |
Cash paid by WFOE to VIE, Shenzhen Fangdd Network Technology Co., Ltd., through bank entrusted loan(2)
|
| | | | 35.9 | | | | | | 118.5 | | | | | | 69.0 | | |
|
Hypothetical pre-tax earnings(1)
|
| | | | 100.00 | | |
|
Tax on earnings at statutory rate of 25% at Shenzhen Fangdd level
|
| | | | (25.00) | | |
|
Amount to be distributed as dividend from Shenzhen Fangdd to Hong Kong subsidiary(2)
|
| | | | 75.00 | | |
|
Withholding tax at tax treaty rate of 5%
|
| | | | (3.75) | | |
|
Amount to be distributed as dividend at Hong Kong subsidiary level and net distribution to Fangdd Network Group Ltd.
|
| | | | 71.25 | | |
Directors and Executive
Officers |
| |
Age
|
| |
Position/Title
|
|
Xi Zeng | | |
40
|
| |
Co-Founder, Chairman of the Board of Directors and Chief Executive Officer
|
|
Jiaorong Pan | | |
43
|
| | Director and Chief Operating Officer | |
Li Xiao | | |
58
|
| | Director and Vice President | |
Yi Duan | | |
45
|
| | Co-Founder, Director | |
Weiru Chen | | |
52
|
| | Independent Director | |
Yang Li | | |
46
|
| | Independent Director | |
Senlin Peng | | |
48
|
| | Independent Director | |
Shuiying Chen | | |
37
|
| | Financial Controller | |
|
Board Diversity Matrix (As of the date of this prospectus)
|
| |||
| Country of Principal Executive Offices: | | |
People’s Republic of China
|
|
| Foreign Private Issuer | | |
YES
|
|
| Disclosure Prohibited Under Home Country Law | | |
NO
|
|
| Total Number of Directors | | |
7
|
|
| | |
Female
|
| |
Male
|
| |
Non-Binary
|
| |
Did Not
Disclose Gender |
| ||||||||||||
Part I: Gender Identity | | | | | | | | | | | | | | | | | | | | | | | | | |
Directors
|
| | | | 2 | | | | | | 5 | | | | | | 0 | | | | | | 0 | | |
Part II: Demographic Background | | | | | | | | | | | | | | | | | | | | | | | | | |
Underrepresented Individual in Home Country Jurisdiction
|
| | | | | | | | | | | | | | | | 0 | | | | | | | | |
LGBTQ+
|
| | | | | | | | | | | | | | | | 0 | | | | | | | | |
Name
|
| |
Class A Ordinary
Shares underlying Options Awarded |
| |
Exercise Price
(US$/share) |
| |
Date of Grant
|
| |
Date of Expiration
|
| ||||||
Li Xiao
|
| | | | * | | | | | | 0.0000001 | | | |
December 21, 2018
|
| |
December 21, 2023
|
|
Jiaorong Pan
|
| | | | * | | | | | | 0.0000001 | | | |
December 21, 2018
|
| |
December 21, 2023
|
|
Shuiying Chen
|
| | | | * | | | | | | 0.0000001 | | | |
November 15, 2021
|
| |
November 14, 2026
|
|
Other grantees
|
| | | | 92,812,250 | | | | | | 0.0000001 | | | |
December 21, 2018
through November 15, 2021 |
| |
December 21, 2023
through November 15, 2026 |
|
| | |
Ordinary Shares Beneficially Owned (As of the date of this prospectus)
|
| |||||||||||||||||||||||||||
| | |
Class A
Ordinary Shares Beneficially Owned |
| |
Class B
Ordinary Shares Beneficially Owned |
| |
Total
Ordinary Shares Beneficially Owned |
| |
Percentage
of Total Ordinary Shares† |
| |
Percentage
of Aggregate Voting Power†† |
| |||||||||||||||
Directors and Executive Officers:** | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Xi Zeng(1)
|
| | | | — | | | | | | 161,396,567 | | | | | | 161,396,567 | | | | | | 7.8 | | | | | | 21.1 | | |
Jiaorong Pan(2)
|
| | | | 29,249,399 | | | | | | — | | | | | | 29,249,399 | | | | | | 1.4 | | | | | | 0.4 | | |
Li Xiao
|
| | | | * | | | | | | — | | | | | | * | | | | | | * | | | | | | * | | |
Yi Duan(3)
|
| | | | — | | | | | | 329,021,793 | | | | | | 329,021,793 | | | | | | 15.9 | | | | | | 43.0 | | |
Weiru Chen
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Yang Li
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Senlin Peng
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Shuiying Chen
|
| | | | * | | | | | | — | | | | | | * | | | | | | * | | | | | | * | | |
All Directors and Executive Officers as a Group
|
| | | | 48,412,680 | | | | | | 490,418,360 | | | | | | 538,831,040 | | | | | | 26.0 | | | | | | 64.7 | | |
Principal Shareholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
CC NETWORK INTERNATIONAL
LTD(3) |
| | | | — | | | | | | 329,021,793 | | | | | | 329,021,793 | | | | | | 15.9 | | | | | | 43.0 | | |
ZX INTERNATIONAL LTD(1)
|
| | | | — | | | | | | 161,396,567 | | | | | | 161,396,567 | | | | | | 7.8 | | | | | | 21.1 | | |
FANGDD DECENT INTERNATIONAL LTD. and its affiliate(4)
|
| | | | 138,698,218 | | | | | | — | | | | | | 138,698,218 | | | | | | 6.7 | | | | | | 1.8 | | |
TIANYU NETWORK INTERNATIONAL LTD(5)
|
| | | | — | | | | | | 129,519,698 | | | | | | 129,519,698 | | | | | | 6.3 | | | | | | 16.9 | | |
Greyhound Investment Ltd.(6)
|
| | | | 109,375,012 | | | | | | — | | | | | | 109,375,012 | | | | | | 5.3 | | | | | | 1.4 | | |