While quarterly revenue fell 26% year on year (y-o-y) to RMB60 million ($8.7 million), China-based real estate marketplace operator FangDD reduced its net loss by 95% y-o-y in the fourth quarter of 2022 amid a significant reduction in operating expenses and an increase in gross profit.

In Q4 2022, its net loss narrowed to RMB32.7 million ($4.7 million U.S.) from RMB604 million for the year-earlier quarter, according to a news release.

In a weak market environment, FangDD reduced its sales, marketing, product development, and general and administrative expenses.

Publicly listed in 2019, FangDD (Nasdaq: DUO) operates one of the largest real estate marketplaces in China.

In 2022, Fang DD’s net loss shrank 80.1% y-o-y to RMB240 million ($34.7 million), while annual revenue plunged 74% y-o-y to RMB246 million ($35.7 million).

“In 2022, new property sales decreased by 26.7% y-o-y in China, which represents the largest decline on record, leading to the outbreak of real estate developer liquidity risk. In 2022, the company continued to control risks and losses to survive the market downturn,” said Xi Zeng, CEO of FangDD.

“Going forward, the company will proactively shrink the transaction size on our marketplace for new property business and improve the account-receivable management to control the operation risk caused by developer credit risk outbreak. The company plans to strengthen cooperation with high-quality developers and carry out new projects with caution. [It] will continue to explore the second growth curve in combination with the company’s existing strengths and the industry’s new trajectory.”

Related Articles