Fangdd(US:DUO)2025-09-29 12:12Revenue and Profitability - Revenue for the six months ended June 30, 2025, was RMB 203,394 thousand, representing a 45.4% increase from RMB 139,969 thousand in the same period of 2024[9] - Net loss attributable to Fangdd Network Group Ltd. for the six months ended June 30, 2025, was RMB 38,119 thousand, compared to a net income of RMB 17,385 thousand in the same period of 2024[9] - For the six months ended June 30, 2024, Fangdd Network Group Ltd. reported a net income of RMB 16,411, while for the same period in 2025, the company experienced a net loss of RMB 39,182[18] - Net income for the six months ended June 30, 2025, decreased significantly to RMB 8,403 from RMB 201,796 in the prior year, indicating a substantial decline in profitability[44] - The Group incurred a net loss of RMB 39,182 for the six months ended June 30, 2025, with cash outflows from operating activities amounting to RMB 21,235[58] Assets and Liabilities - Total current assets decreased to RMB 459,845 thousand as of June 30, 2025, down from RMB 548,618 thousand as of December 31, 2024, a decline of 16.2%[3] - Total liabilities decreased to RMB 297,792 thousand as of June 30, 2025, down from RMB 347,888 thousand as of December 31, 2024, a reduction of 14.4%[4] - Total assets decreased slightly to RMB 757,080 as of June 30, 2025, compared to RMB 766,919 as of December 31, 2024[44] - The total shareholders' equity decreased to RMB 381,210 thousand as of June 30, 2025, from RMB 383,301 thousand as of December 31, 2024, a decline of 0.5%[5] Cash Flow and Liquidity - Cash and cash equivalents as of June 30, 2025, were RMB 34,647 thousand, a significant decrease from RMB 75,351 thousand as of December 31, 2024, reflecting a decline of 54.9%[3] - The net cash used in operating activities for the first half of 2025 was RMB 21,235, a decline from RMB 5,866 in 2024[18] - Cash flows from investing activities showed a net cash outflow of RMB 70,684 in 2025, compared to a net inflow of RMB 2,771 in 2024[18] - The Group's cash, cash equivalents, and restricted cash at the end of the period were RMB 17,657, down from RMB 32,211 at the end of June 30, 2024[44] Expenses - Operating expenses for the six months ended June 30, 2025, totaled RMB 90,213 thousand, an increase of 4.9% from RMB 86,084 thousand in the same period of 2024[9] - The Group's employee social insurance benefits expenses amounted to RMB 4,605 thousand for the six months ended June 30, 2025, compared to RMB 3,930 thousand in 2024, indicating a rise of approximately 17.1%[117] - The Group's general and administrative expenses include provisions for credit losses and payroll costs, which are essential for corporate functions[111] Foreign Currency and Exchange - The company reported a foreign currency exchange gain of RMB 524 thousand for the six months ended June 30, 2025, compared to a gain of RMB 72 thousand in the prior year[9] - The Group's total foreign currency exchange differences were a gain of RMB72 and RMB524 for the six months ended June 30, 2024 and 2025, respectively[67] Investments and Impairments - Fangdd Network Group Ltd. had a significant impairment loss for property, plant, and equipment amounting to RMB 10,108 in 2025, compared to no such loss in 2024[18] - The Group's long-term equity investments recognized an impairment loss of RMB1,000 for the six months ended June 30, 2024, with no impairment for 2025[8][9] - The Group recognized an impairment loss of RMB 1,000 for equity investments in Haofangtong as of June 30, 2024, with no impairment loss recognized for the same period in 2025[189] Regulatory and Contractual Agreements - The company is subject to regulatory risks in the PRC, which could impact its ability to enforce VIE agreements and consolidate financial results[39][41] - The company has established a series of contractual agreements to maintain effective control over Shenzhen Fangdd, ensuring it bears the risks and enjoys the economic benefits[25] Shareholder Equity and Financing - The company received RMB 42,278 from the issuance of convertible promissory notes in 2025, indicating a new financing strategy[18] - Fangdd Network Group Ltd. reported a capital contribution from non-controlling shareholders of RMB 4,040 in 2025, up from RMB 1,238 in 2024[18] Taxation - The current income tax benefit for the six months ended June 30, 2024, was RMB (3,039), and for 2025, it was RMB (171)[199] - The gross deferred tax assets as of June 30, 2025, amounted to RMB 392,908, compared to RMB 383,153 as of December 31, 2024[200] Miscellaneous - The company has no current contractual arrangements that would require it to provide additional financial support to Shenzhen Fangdd[40] - The Group's reporting currency is Renminbi (RMB), while the functional currency for its entities in the Cayman Islands, BVI, and Hong Kong is US dollars (US$)[66]