Fangdd Network Group Ltd. (DUO), a Chinese online real estate marketplace, may be forced to delist from Nasdaq as the company’s ADS closed below $1 per share for 30 consecutive business days, according to the company’s filing on Jan. 7.
In the filing, FangDD notes that it received notice from Nasdaq on Jan. 4 that it was not compliant with the minimum bid price requirement under Nasdaq listing rules. The company has been granted a grace period of 180 calendar days, which expires on July 5, to regain compliance.
FangDD’s 3Q2021 results, released in November, reveal that the company’s revenue was down by 57.8% while its net loss widened to $55.1 million. Since then, its share price has almost halved. Its ADS closed at $0.372 per share on Jan. 7.
Real estate marketplaces in China have taken a hit as the property market has been going through a difficult time amid the government’s intervention to stabilize housing prices and curb speculation. It remains a challenge for FangDD to regain compliance in the coming months.