Fangdd Network Group Ltd. Stock Price, News & Analysis

FangDD Network Group (Nasdaq: DUO) has announced updates on its substitution listing plan. The company intends to terminate its American depositary receipts facility and list its Class A ordinary shares on Nasdaq in place of its American depositary shares (ADSs). Upon effectiveness, ADSs will cease trading, and Class A ordinary shares will trade under the symbol 'DUO'. VStock Transfer, has been appointed as the U.S. transfer agent.

The Bank of New York Mellon will oversee a mandatory exchange of ADSs for Class A ordinary shares. The previously announced September 4, 2024 date for this exchange has been postponed. FangDD is working with DTC, Nasdaq, and other parties to finalize the process. ADS holders need not take action and won't be charged fees for the exchange. However, uncertainty remains regarding Nasdaq clearance for the mandatory exchange and substitution listing.

FangDD Network Group (NASDAQ: DUO) reported its unaudited financial results for H1 2024. Revenue decreased by 8.8% to RMB140.0 million (US$19.3 million), while net income increased to RMB16.4 million (US$2.3 million). The company's total closed-loop GMV decreased by 24.9% to RMB6.2 billion due to market downturn. Despite challenges, FangDD focused on enhancing operational management, cost control, and developing innovative services. The company's gross profit decreased by 11.9% to RMB17.5 million, with a gross margin of 12.5%. Operating expenses decreased by 3.0% to RMB86.1 million. FangDD maintains a positive outlook, anticipating market stabilization in H2 2024.

FangDD Network Group (Nasdaq: DUO) has announced updates on its substitution listing plan. The company intends to terminate its ADR facility on September 4, 2024, and list its Class A ordinary shares on Nasdaq under the symbol 'DUO'. A mandatory exchange of ADSs for Class A ordinary shares will occur on the Exchange Date. The company plans to effect a share consolidation on August 12, 2024, consolidating each 5,625 ordinary shares into one share. This will change the ADS ratio from 1:5,625 to 1:1. FangDD faces uncertainty regarding Nasdaq clearance for the Mandatory Exchange and Substitution Listing, and Nasdaq may suspend ADS trading until these processes are completed.

Fangdd Network Group (Nasdaq: DUO) has announced its acquisition of patents related to cloud computer technology in China for $35 million. This move marks the company's expansion into technology-enabled real estate management, complementing its existing business. Additionally, the seller could receive earnouts up to $15 million based on revenue generated by the patents over the next three fiscal years. FangDD has three months to secure funding and complete the transaction, with a deadline set for September 21, 2024. If the deal is not finalized by then, either party can terminate the agreement without liability. Detailed terms of the agreement are filed with the U.S. SEC on Form 6-K.

On June 12, 2024, FangDD Network Group (Nasdaq: DUO) announced changes to its board of directors. Mr. Jun Luo has been appointed to multiple roles, including director, chairman of the Nominating and Corporate Governance Committee, and member of both the Compensation and Audit Committees, effective June 10, 2024. He succeeds Mr. Zhen Xie, who resigned for personal reasons. Mr. Luo brings extensive experience in operational planning and investment management. He currently serves as co-vice chairman and CEO of Kaisa Health Group. His appointment is expected to enhance FangDD's governance and management. The Board acknowledged Mr. Xie's contributions and welcomed Mr. Luo to the team.

FangDD Network Group announced the termination of its American Depositary Receipts (ADR) facility with The Bank of New York Mellon, effective September 4, 2024. The company plans to replace its ADRs with Class A ordinary shares on the Nasdaq under the symbol DUO. An Extraordinary General Meeting (EGM) will take place on July 11, 2024, for shareholders to vote on proposed resolutions. Nasdaq clearance for the new listing remains uncertain, and trading of ADRs may be suspended post-termination until the new listing is effective.