FangDD Sees Net Profitability For First Half of 2023 as Chinese Market Outlook Remains Gloomy

August 28, 2023
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The Chinese real estate marketplace and transaction platform company FangDD has reported on its performance for the first half of its 2023 financial year. Notable numbers from the company's year included:

  • Revenue increased by 6% to RMB 153.5 million (US$21.2 million).
  • Net income was RMB 9.4 million (US$ 1.3 million), compared to a net loss of RMB 192.1 million for 2022.
  • GMV for the company's transaction platform decreased 25.5% to RMB 8.3 billion (US$ 1.1 billion).

Like all Chinese real estate marketplace operators, Shenzen-based FangDD has suffered greatly over recent years from a huge drop in sales volumes exacerbated by restrictive government COVID-19 policy.

The company's latest set of results have bucked the trend of sustained losses thanks to cost-cutting measures enacted over the second half of 2022 and what a FangDD statement referred to as "a series of positive policies implemented by the PRC government to promote the stable and healthy development of the real estate market."

Mr. Xi Zeng, Chairman and Chief Executive Officer of FangDD, commented, “According to the National Bureau of Statistics of China, new property sales in the first half of 2023 increased by 1.1% year-on-year compared to the low base in the same period of 2022. However, the real estate market had experienced significant changes in the supply and demand dynamics, with a continuing trend of weakening."

"In the first half of 2023, adhering to the principle of ensuring sustainable operations, the Company focused on the cash flow security and profitability enhancement, and intensified its efforts in equity financing. As a result, the Company has achieved profitability for the first time since the first half of 2021 and repaid short-term loans ahead of schedule. Additionally, the Company actively explored potential transformation opportunities in the evolving industry landscape, with a particular emphasis on innovating products related to property asset services.”

In terms of operational metrics, FangDD saw the number of agents that rely on its closed-loop transaction platform fall more than 50% compared to the same period in 2022. Gross Merchandise Value also fell significantly over the period as the outlook for China's housing market continues to be gloomy.

FangDD (not to be confused with does not define itself as a portal and considers Beike rather than portal sites Anjuke and to be its biggest rival as more of an end-to-end transaction platform.

The uptick in the company's profitability hasn't helped its share price. Shares in FangDD (NASDAQ: DUO) continue to trade at around $1.39, 95% less than 12 months ago.

August 28, 2023
Since March 2020 Edmund's job has been to read about, write about, collect data on, analyse and generally know about real estate marketplaces and the companies that run them. Before that he worked at the aggregator Mitula Group (which became Lifull Connect) for five years.

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