Fangdd(US:DUO)2021-08-14 02:55Financial 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]