The top Chinese property tech firm, Fangdd Network Group Ltd. (NASDAQ: DUO), today revealed its financial report for the third quarter ended September 30, 2020.
Revenue fell by 13.6 percent to US$120.6 million from US$144.06 million in the same period of 2019 in the third quarter of 2020.
Revenue expenses in the third quarter of 2020 fell by 16.3 percent from US$113.8 million in the same period in 2019 to US$92.3 million. This decline was largely attributed to a decrease in commission payments charged to agents for services provided as a result of the decrease in transaction commissions.
Gross profit fell by 3.3 percent to US$28.3 million in the third quarter of 2020 from US$30.21 million in the same span of 2019. In the third quarter of 2020, the operating margin rose from 21.0 percent in the same timeframe in 2019 to 23.5 percent.
Operating costs in the third quarter of 2020, comprising US$3.8 million in share-based compensation expenditures, grew by 38.4 percent from US$18.54 million in the same timeframe in 2019 to US$24.9 million.
In the third quarter of 2020, net income stood at US$3.2 million, compared to US$12.2 million in the same time frame in 2019.
In the third quarter of 2020, non-GAAP net income was US$7.1 million, compared with US$12.1 million in the same period in 2019.
Per American Depositary Share, basic and diluted net income was US$0.04 and US$0.04 respectively in the third quarter of 2020. In contrast, the basic and diluted net profits of the Company attributable to ordinary owners per ADS was US$0.30 and US$0.15, respectively, in the same period of 2019. Every ADS reflects the Company’s 25 ordinary shares in Class A.
The organization estimates its sales to be between US$91.1 million and US$106.3 million for the fourth quarter of 2020. This outlook only represents the Company’s present and tentative expectations, which are subject to adjustment, on the demand and operating conditions.