FangDD Submits IPO Prospectus and is Poised to Become the First Publicly-Listed Industry Internet SaaS Company in China

SHENZHEN,China,Oct. 18,2019 -- Shenzhen Fangdd Network Group Ltd. ("FangDD") has officially submitted its prospectus on Oct. 9th to the US Securities and Exchange Commission (SEC) and plans to launch initial public offering (IPO) trading under the ticker symbol "DUO" on NASDAQ. If the IPO is approved,FangDD would become the first publicly-listed industry internet SaaS company in China.

In the industry internet era,B2B enterprises that harness technology and data to remove barriers and streamline operational efficiency represent the future of business. Established in 2011,FangDD has focused on exploring vertical market segments with an initial emphasis on real estate agents. With a mission centered around simplifying business for real estate agents and empowering them to achieve their dreams,FangDD has combined its innovative,technology-driven approach to B2B with forward-looking insights and keen observations on industry developments,to become a pioneer of internet technology within the residential property service market in China.

Creating an online marketplace based in industry SaaS platform to enable Real Estate agents to achieve more business

Powered by mobile internet technology,cloud technology and big data,FangDD has developed customized SaaS solutions designed for Chinese real estate agents. Through aggregating key real estate resources,including property listings,customer data,and fund and transaction data,FangDD's revolutionary intelligent system connects agents with the resources they need to succeed in business. An all-in-one real estate management platform,FangDD allows agents to easily manage their customers,housing inventory and historic transaction records online. FangDD also provides comprehensive business insight and intelligence tools to assist agents in analyzing data and optimizing the management process. In doing so,FangDD enables agents to easily conduct business online,improving their service efficiency and scope,and transforming their way of operation.

The success of FangDD's industry SaaS solutions lies in its extensive property database. According to data from Frost & Sullivan,FangDD's database is one of the largest of its kind in China,with over 131 million verified pieces of basic property data as of June 30,2019.

Harnessing the depth and breadth of this database,FangDD has built an independent and open SaaS-powered marketplace that targets the primary high-frequency actors in the residential service chain- real estate agents - designing an end-to-end ecosystem within which agents can complete transactions.Frost & Sullivan's insights reveal that,as of December 31,2018,FangDD operated the biggest SaaS-powered online real estate transaction marketplacein China. With a penetration rate of over 45% at the end of 2018,FangDD's platform was used by 911,000 of China's 2 million real estate agents,and its user base continues to grow with 1,071,000 registered agents as of June 30,2019.

Profitability and large-scale revenue through cost reduction,improved operational efficiency and closed-loop transactions

FangDD has transformed the way Chinese real estate agents operate by improving the operational efficiency and experience of real estate transactions. According to its prospectus data,FangDD's closed-loop gross merchandise volume (GMV) was RMB73.9 billion in 2017. In 2018,this figure increased by 53.9% to RMB113.7 billion (US$16.6 billion) and,in the first half of 2019 alone,FangDD's GMV reached RMB91.3 billion (US$13.3 billion)- doubling its GMV of RMB45.6 billion from the same period in 2018.

FangDD has not only seen rapid growth in scale- the company has also realized large-scale revenue and maintained profitability since 2017.

FangDD's prospectus reveals that,after reaching slight profitability in 2017,the company's profitability has rapidly grown from 2018 to present. In 2018,FangDD's net profit was RMB104 million (US$15.2 million). In the first six months of 2019,the company saw strong growth with net profit reaching RMB100.3 million (US$14.6 million),an increase of 166.6% compared with RMB37.6 million during the same period in 2018.

In 2017,FangDD's revenue was RMB1.8 billion. This figure grew to RMB2.3 billion (US$332.4 million) in 2018,resulting in a growth rate of 26.9%. In addition,in 2019 alone,FangDD's revenue increased by 55.4% compared with the same period in previous year with RMB1.6 billion (US$233.7 million) in revenue as of June 30,2019- a marked increase from its RMB1.0 billion revenue during the same period in 2018.

Pioneer of the property technology industry with the industry's leading labor efficiency ratio

FangDD is a leading internet technology company in China's residential service field in terms of operational efficiency. As outlined in its prospectus,the closed-loop GMV created by each employee of FangDD was RMB34.6 million in 2017. The annual closed-loop GMV grew to RMB84.5 million (US$12.2 million) in 2018 and,as of June 30,2019,has already reached RMB58.3 million (US$8.9 million)- almost doubling its previous GMV of RMB 34.6 million from the same period in 2018. Meanwhile,the revenue generated by each employee on average grew from RMB0.8 million in 2017 to RMB1.7 million (US$246 thousand) in 2018. As of June 30,this figure has reached RMB1.0 million (US$156 thousand),up from RMB784 thousand during the same period in 2018.

Moving forward,FangDD aims to maintain and strengthen its position as the largest online real estate marketplace in China by attracting and retaining more agents to the platform through its free and user-friendly SaaS infrastructure,expanding and deepening its property database and listings,continuing to attract property listings by empowering agents through SaaS services and diversifying and expanding value-added products and service offerings.

About FangDD

Launched in 2011,FangDD is a leading internet company that offers customized SaaS solutions for online real estate transaction management. Powered by mobile internet,big data and cloud-based technology,the all-in-one real estate management platform allows agents to easily and seamlessly centralize and manage all aspects of essential information including real estate listing,clients,commissions and transaction records with efficiency and security. It makes the entire transaction process a transparent and effortless experience,helping agencies and their teams organize businesses with maximum productivity.

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