Financial Data and Key Metrics Changes - Revenue in Q2 2021 increased by 37.9% to RMB401.4 million from RMB291 million in Q1 2021 [16] - Gross profit in Q2 2021 increased by 87.5% to RMB62.5 million from RMB33.3 million in Q1 2021 [19] - Gross margin improved to 15.6% in Q2 2021 from 11.4% in Q1 2021 [19] - Net loss was RMB139 million in Q2 2021 compared to RMB104.8 million in Q1 2021 [22] Business Line Data and Key Metrics Changes - Net revenue from new property transaction services increased by 32.1% to RMB358.8 million in Q2 2021 from RMB271.6 million in Q1 2021 [17] - Net revenue from resale property transaction services increased by 114.4% to RMB40.3 million in Q2 2021 from RMB18.8 million in Q1 2021 [17] - Revenues from SaaS solutions increased by 268.4% to RMB2.3 million in Q2 2021 from RMB0.6 million in Q1 2021 [18] Market Data and Key Metrics Changes - Total volume of real estate transactions in China increased by 17.2% year-over-year to RMB5.4 trillion in Q2 2021 [4] - The real estate market growth rate in Q2 2021 slowed, dropping by 70 percentage points sequentially [4] Company Strategy and Development Direction - The company aims to improve real estate transaction efficiency and enhance digital marketing capabilities [8] - The focus is on developing three core business lines and improving gross margins while adhering to national regulations [7][8] - The company plans to build more collaborations with real estate developers and agencies, expand geographic coverage, and develop benchmark projects through SaaS solutions [14] Management's Comments on Operating Environment and Future Outlook - Management noted that the decline in income scale is due to strategic changes and market conditions, including the impact of COVID-19 [27] - The company expects revenue to be between RMB250 million to RMB300 million in Q3 2021, reflecting current market conditions [15] Other Important Information - The number of active agents on the platform reached 250,000, representing a quarter-over-quarter increase of 13% [9] - Cash, cash equivalents, and short-term investments totaled RMB749.4 million as of June 30, 2021 [23] Q&A Session Summary Question: Concerns about bad debt reserves - A participant inquired about the large bad debt reserve taken this quarter and whether there were bankrupt developers involved [25] - Management responded that the decline in income scale is due to strategic changes and market conditions, not necessarily linked to bankruptcies [27] - The participant further asked if there was hope of collecting any of the bad debt allowance [28] - Management indicated that recycling of accounts receivable is normal and they will closely monitor developers at risk [29]

[Financial & Operating Highlights](index=1&type=section&id=Financial%20%26%20Operating%20Highlights) Q2 2021 revenue increased 37.9% to RMB 401.4 million, but net loss widened to RMB 139.0 million, driven by a significant doubtful accounts provision Q2 2021 Key Financial Highlights (vs Q1 2021) | Financial Metric | Q2 2021 (RMB million) | Q1 2021 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 401.4 | 291.0 | +37.9% | | Net Loss | 139.0 | 104.8 | Widened | | Net Loss (ex-provision) | 59.9 | 84.8 | Narrowed | | Non-GAAP Net Loss | 127.9 | 93.0 | Widened | Q2 2021 Key Operating Highlights (vs Q1 2021) | Operating Metric | Q2 2021 | Q1 2021 | Change | | :--- | :--- | :--- | :--- | | Active Agents | 249.9 thousand | 221.1 thousand | +13.0% | | Closed-loop Agents | 19.0 thousand | 18.4 thousand | +3.3% | | Total Closed-loop GMV | RMB 29.6 billion | RMB 29.9 billion | -1.0% | [Management Commentary](index=2&type=section&id=Management%20Commentary) Management sees growth for asset-light platforms amid challenging regulations, committing to core business growth and strengthened financial management - Chairman Yi Duan commented that intensified government regulations, while creating cash flow difficulties for some developers, present growth opportunities for asset-light, efficiency-focused real estate transaction service platforms[6](index=6&type=chunk) - Co-CEO Xi Zeng stated the company's commitment to its growth strategy, focusing on improving new construction property sales, refining Property Cloud SaaS solutions, and enhancing the resale property business[6](index=6&type=chunk) - CFO Jiaorong Pan noted that the company has strengthened its accounts receivable management and is utilizing multi-channel funding solutions to support business development and maintain healthy cash flows[6](index=6&type=chunk) [Detailed Financial Results](index=2&type=section&id=Second%20Quarter%202021%20Financial%20Results) Revenue grew 37.9% to RMB 401.4 million, with strong SaaS growth, but operating expenses increased 46.2% due to higher product development and a significant doubtful accounts provision, resulting in a wider net loss [Revenue](index=2&type=section&id=REVENUE) Total revenue increased significantly quarter-over-quarter, driven by strong growth across all segments, particularly SaaS solutions Revenue Breakdown (Q2 2021 vs Q1 2021) | Revenue Source | Q2 2021 (RMB million) | Q1 2021 (RMB million) | QoQ Growth | | :--- | :--- | :--- | :--- | | **Total Revenue** | **401.4** | **291.0** | **+37.9%** | | New Property Transaction | 358.8 | 271.6 | +32.1% | | Resale Property Transaction | 40.3 | 18.8 | +114.4% | | SaaS Solutions | 2.3 | 0.6 | +268.4% | [Cost of Revenue and Gross Profit](index=3&type=section&id=COST%20OF%20REVENUE) Cost of revenue increased due to higher commission fees and service costs, while gross profit surged, improving the gross margin to 15.6% - Cost of revenue increased by **31.5%** to **RMB 338.9 million** from RMB 257.7 million in Q1 2021, primarily due to higher commission fees to agents and increased costs related to value-added services and SaaS solutions[9](index=9&type=chunk) Gross Profit and Margin (Q2 2021 vs Q1 2021) | Metric | Q2 2021 (RMB million) | Q1 2021 (RMB million) | | :--- | :--- | :--- | | Gross Profit | 62.5 | 33.3 | | Gross Margin | 15.6% | 11.4% | [Operating Expenses](index=3&type=section&id=OPERATING%20EXPENSES) Total operating expenses increased significantly, driven by higher general and administrative costs due to a doubtful accounts provision, despite reduced sales and marketing expenses Operating Expenses Breakdown (Q2 2021 vs Q1 2021) | Expense Category | Q2 2021 (RMB million) | Q1 2021 (RMB million) | Change | | :--- | :--- | :--- | :--- | | **Total Operating Expenses** | **205.1** | **140.3** | **+46.2%** | | Sales and Marketing | 13.1 | 37.9 | -65.4% | | Product Development | 64.5 | 37.3 | +72.9% | | General and Administrative | 127.5 | 65.2 | +95.5% | - The decrease in Sales and marketing expenses was due to optimizing staff and reducing marketing activities for new property services to focus on SaaS solutions[11](index=11&type=chunk) - The increase in General and administrative expenses was mainly due to a higher provision for doubtful accounts, which rose to **RMB 79.1 million** in Q2 from RMB 20.0 million in Q1[12](index=12&type=chunk) [Net Loss and Net Loss Per ADS](index=3&type=section&id=NET%20LOSS) Net loss widened to RMB 139.0 million in Q2 2021, with basic and diluted net loss per ADS increasing to RMB 1.64 Net Loss Summary (Q2 2021 vs Q1 2021) | Metric | Q2 2021 (RMB million) | Q1 2021 (RMB million) | | :--- | :--- | :--- | | Net Loss | (139.0) | (104.8) | | Net Loss (ex-provision) | (59.9) | (84.8) | | Non-GAAP Net Loss | (127.9) | (93.0) | - Basic and diluted net loss per ADS were both **RMB 1.64 (US$0.25)** in Q2 2021, compared to RMB 1.27 in Q1 2021[14](index=14&type=chunk) [Liquidity](index=4&type=section&id=Liquidity) As of June 30, 2021, the company maintained RMB 749.4 million in cash and equivalents, with net cash used in operating activities totaling RMB 53.0 million for the quarter - As of June 30, 2021, the Company had cash, cash equivalents, restricted cash, and short-term investments totaling **RMB 749.4 million (US$116.1 million)**[15](index=15&type=chunk) - Net cash used in operating activities for the second quarter of 2021 was **RMB 53.0 million (US$8.2 million)**[15](index=15&type=chunk) [Business Outlook](index=4&type=section&id=Business%20Outlook) The company forecasts Q3 2021 revenue between RMB 250 million and RMB 300 million, reflecting uncertainties from Covid-19 impacts in core markets - For the third quarter of 2021, the Company expects its revenue to be between **RMB 250 million and RMB 300 million**[16](index=16&type=chunk) - This forecast is subject to change and reflects the company's preliminary views on market and operational conditions, which are affected by the impact of Covid-19[16](index=16&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) Unaudited financial statements detail the company's financial position and performance, showing a net loss of RMB 139.0 million in Q2 2021 and reconciling GAAP to Non-GAAP results [Condensed Consolidated Balance Sheets](index=7&type=section&id=SELECTED%20UNAUDITED%20CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS%20DATA) The balance sheet as of June 30, 2021, shows total assets of RMB 3.38 billion, a decrease from year-end 2020, with corresponding changes in liabilities and equity Selected Balance Sheet Data (in thousands RMB) | Account | As of June 30, 2021 (RMB thousands) | As of Dec 31, 2020 (RMB thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | 674,920 | 843,448 | | Accounts receivable, net | 1,783,583 | 2,252,103 | | Total assets | 3,384,662 | 4,047,952 | | Total liabilities | 2,141,974 | 2,581,954 | | Total equity | 1,242,688 | 1,465,998 | [Consolidated Statements of Comprehensive Income (Loss)](index=8&type=section&id=SELECTED%20UNAUDITED%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME%20(LOSS)%20DATA) The income statement for Q2 2021 reports a net loss of RMB 139.0 million, significantly wider than Q2 2020, with a basic net loss per ADS of RMB 1.64 Selected Income Statement Data for Three Months Ended June 30 (in thousands RMB) | Account | 2021 (RMB thousands) | 2020 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 401,424 | 737,690 | | Gross profit | 62,486 | 120,953 | | Loss from operations | (142,607) | (32,954) | | Net loss | (139,023) | (13,987) | | Net loss per ADS (Basic) | (1.64) | (0.18) | [Reconciliation of GAAP and Non-GAAP Results](index=9&type=section&id=Reconciliation%20of%20GAAP%20and%20Non-GAAP%20Results) A reconciliation table clarifies adjustments from GAAP to Non-GAAP figures, primarily by excluding share-based compensation for a clearer view of core operating performance GAAP to Non-GAAP Reconciliation for Three Months Ended June 30 (in thousands RMB) | Metric | 2021 (RMB thousands) | 2020 (RMB thousands) | | :--- | :--- | :--- | | GAAP loss from operations | (142,607) | (32,954) | | Share-based compensation | 11,092 | 25,916 | | **Non-GAAP loss from operations** | **(131,515)** | **(7,038)** | | GAAP net loss | (139,023) | (13,987) | | Share-based compensation | 11,092 | 25,916 | | **Non-GAAP net (loss)/income** | **(127,931)** | **11,929** | [Supplementary Information](index=4&type=section&id=Supplementary%20Information) This section provides earnings call logistics, currency exchange rates, non-GAAP measure definitions, a corporate overview, and a standard safe harbor statement - The earnings conference call was scheduled for **August 13, 2021, at 8:00 A.M. Eastern Time**[17](index=17&type=chunk) - The press release uses an exchange rate of **RMB 6.4566 per US$1.00** for currency conversions, based on the Federal Reserve Board rate on June 30, 2021[21](index=21&type=chunk) - Non-GAAP financial measures presented exclude share-based compensation expenses to help investors better understand the company's core operating performance[22](index=22&type=chunk)

Financial Data and Key Metrics Changes - Revenue in Q1 2021 increased by 6.9% to RMB291 million from RMB272.1 million in Q1 2020 [26] - Gross profit decreased by 32.6% to RMB33.3 million from RMB49.4 million in the same period of 2020, with gross margin dropping to 11.4% from 18.2% [27] - Net loss in Q1 2021 was RMB104.8 million, an improvement from RMB136.4 million in Q1 2020 [30] Business Line Data and Key Metrics Changes - New construction property projects on the platform numbered 1,941, with distribution revenue reaching RMB270 million [16] - Resale property GMV reached RMB13.56 billion, representing an increase of 81.8% from Q1 2020, with revenue from the resale properties segment increasing by 183.6% sequentially [18] - Active agents on the platform increased by 1.2% to 221,000 compared to Q1 2020 [13] Market Data and Key Metrics Changes - The overall net profit margin in the real estate industry was 9.85% in 2020, down by 1.9 percentage points from the prior year [8] - Shanghai's resale property transaction volume was RMB1.2 trillion in 2020, accounting for 16.5% of the national total [11] Company Strategy and Development Direction - The company is focusing on transforming from real estate development to real estate services, emphasizing digitalization capabilities [9][10] - The strategy includes enhancing SaaS solutions and improving operational efficiencies to drive growth margins [28][22] Management's Comments on Operating Environment and Future Outlook - Management noted that the real estate market is facing challenges such as declining profit margins and increasing land costs, necessitating improved efficiencies [9] - For Q2 2021, the company expects new construction property business revenue to be between RMB314 million and RMB370 million, and resale property business revenue to be between RMB40 million and RMB50 million [22][24] Other Important Information - The company has established partnerships with 24 of the top 100 real estate developers in China, including major players like Country Garden and China Vanke [17] - Cash and cash equivalents as of March 31, 2021, totaled RMB872.3 million, with short-term bank borrowings of RMB374.5 million [30] Q&A Session Summary Question: Inquiry about supply chain financing and its impact - Management confirmed cooperation with seven banks for supply chain financing amounting to about RMB2 billion, indicating potential positive impacts on business [35][39] Question: Expectations for gross margins and net loss in Q2 - Management indicated expectations for increasing gross margins and improvements in profitability due to revenue growth from SaaS and resale property businesses [41][42] Question: Breakeven revenue levels and gross margin assumptions - Management did not provide specific figures but indicated that higher gross margins from SaaS solutions and resale properties would contribute positively to future revenue [43][45] Question: Confidence in SaaS business success - Management expressed confidence in the SaaS business despite market competition, emphasizing ongoing investments in R&D and market-oriented production [46][47]

Financial Data and Key Metrics Changes - Revenue in Q4 2020 decreased to RMB622.4 million, attributed to resource reallocation between lower-margin commission revenue and higher-margin value-added services [23][24] - Gross profit in Q4 2020 decreased to RMB51.8 million, with a gross margin of 8.3% [24] - Net loss in Q4 2020 was RMB92.8 million, compared to a net loss of RMB691 million in the same period of 2019 [27] - Full year 2020 revenue was RMB2,451.3 million, with a gross margin of 16.9% [28] Business Line Data and Key Metrics Changes - The number of active agents on the platform exceeded 283,000 in Q4 2020, a 19% increase year-over-year [10] - Closed-loop transaction GMV for new construction properties was RMB30.9 billion in Q4 2020, a sequential decrease of 6.25% [13] - Closed-loop resale property transaction GMV in Q4 2020 increased by 15.4% sequentially, reaching RMB73.1 billion for the full year [18] Market Data and Key Metrics Changes - The commission rate for ordinary residential property sales exceeded 3% in 2020, while the average commission rate for resale properties remained below 2% [6] - The number of cities covered by new construction property projects expanded by 22% year-over-year to 204 cities [12] Company Strategy and Development Direction - The company aims to enhance its SaaS solutions for agencies and developers, focusing on digital marketing and operational efficiency [21] - A strategic partnership with Centaline Property Agency was established to enhance closed-loop resale property transaction capabilities [18] - The company plans to invest more in the resale property segment and establish a leading retail property transaction service model [22] Management's Comments on Operating Environment and Future Outlook - The Chinese real estate market is reported to be back to normal, with anticipated transaction volumes remaining high [37] - The government is controlling selling prices, impacting developers' profit margins, which presents opportunities for the company's digitalization efforts [38] Other Important Information - The company established China's first digital registry for agencies, covering over 1 million agents [11] - The SaaS model for developers is expected to have a gross profit margin of 60% to 80% in the coming years [31] Q&A Session Summary Question: What do you expect gross margins to be going forward? - The company anticipates gross profit margins for new property sales commission revenue to remain at 15% to 20%, while SaaS solutions are expected to achieve margins of 60% to 80% [31] Question: What are your plans for spending on operating expenses? - Operating expenses are expected to increase minimally, within 10% for 2021 [33] Question: Describe the state of the Chinese real estate market now. - The market is back to normal, with high transaction volumes expected, but profit margins for developers are under pressure due to government price controls [37][38]

Fangdd Network Group Limited (NASDAQ:DUO) Q3 2020 Earnings Conference Call November 19, 2020 7:30 PM ET Company Participants Warren Wen - Financial Controller Zeng Xi - Co-CEO and Director Pan Jiaorong - Director & CFO Conference Call Participants Wei Xiong - UBS Operator Ladies and gentlemen, thank you for standing by, and welcome to Fangdd Network Group Limited's Third Quarter 2020 Earnings Call. [Operator Instructions] Please note, this event is being recorded. And I would now like to hand the conferenc ...

Fangdd Network Group Ltd (NASDAQ:DUO) Q2 2020 Earnings Conference Call August 13, 2020 8:30 PM ET Company Participants Warren Wen - Financial Controller Zeng Xi - Co-CEO Pan Jiaorong - CFO Conference Call Participants Wei Xiong - UBS Operator Ladies and gentlemen, thank you for standing by, and welcome to FangDD Network Group Limited Second Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. After management's prepared remarks, we will have a question-and-answer session. Pl ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) o REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR o SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ...