NEW YORK, August 28, 2026, 15:20 (EDT) – Shares of Fangdd (DUO.O) rose sharply by 51.9% as the company managed to trim its losses through cost-cutting measures, even though revenue fell 43%.
- Fangdd stock jumped 51.9% to $1.06 as of 14:58 EDT.
- Revenue dropped by 43.1% in the first half, but gross margin increased by 410 basis points.
- Operating expenses fell by 54.3%, leading to a 63.9% reduction in operating loss.
- Trading activity totaled 54.4 million shares, surpassing the weighted-average number of shares.
Fangdd Network Group Ltd. (NASDAQ: DUO) shares climbed 51.9% on Friday, following the Chinese property-technology firm’s announcement of a reduced loss for the first half.
The surge was driven by cost reductions rather than expansion. Both revenue and transaction volume saw steep declines as China’s property slump persisted.
Revenue declined by 43.1% to RMB115.7 million ($17.1 million). Closed-loop gross merchandise value slid 30.8% to RMB5.5 billion. Fangdd attributed the declines to subdued property demand and the company’s withdrawal from higher-risk developers first-half results.
Gross margin rose to 13.2%, up from 9.1%. The increase was partly driven by higher-margin asset-management services, which helped counterbalance the reduced transaction base.
Operating expenses declined by 54.3% to RMB41.2 million. General and administrative expenses were reduced by about two-thirds, supported by decreased impairment charges and further cost-cutting measures.
Operating loss decreased to RMB25.9 million, down from RMB71.8 million. Net loss was reduced by 12.0% to RMB34.5 million.
| First-half metric | 2025 | 2026 | Change |
|---|---|---|---|
| Revenue | RMB203.4m | RMB115.7m | -43.1% |
| Closed-loop GMV | RMB8.0bn | RMB5.5bn | -30.8% |
| Gross margin | 9.1% | 13.2% | +410 bps |
| Operating expenses | RMB90.2m | RMB41.2m | -54.3% |
| Net loss | RMB39.2m | RMB34.5m | -12.0% |
Liquidity continues to present more challenges. Cash, restricted cash, and short-term investments amounted to RMB107.2 million. Operating cash consumed in the half was RMB36.7 million.
The liquidity pool was approximately 2.9 times the operating cash usage for six months. It fell from RMB147.5 million at the end of the year.
By 14:58 EDT, Fangdd was trading at $1.06, compared to its previous close of $0.698 on Thursday. Trading volume stood at 54.4 million shares market data.
The implied equity value at that price stood at approximately $40.9 million. The advance on Friday increased that by about $14.0 million, based on the 38.55 million weighted-average shares.
The number of shares plays a key balancing role. The weighted average rose from 3.01 million in the prior year, indicating significant dilution. Data now indicates there are 38.55 million shares currently outstanding share and valuation data.
The market value stands at approximately 2.4 times revenue for the first half. When annualized, the revenue reduces the multiple to around 1.2 times, prior to cash and liability adjustments.
A current analyst consensus could not be confirmed. Fangdd’s analyst-coverage page does not offer any actionable recommendations.
Chairman Xi Zeng stated that stabilization in the national property sector “still take some time.” Management intends to expand the application of artificial intelligence, but did not provide specific quantitative projections.
Risks: Revenue is declining at a quicker rate than GMV, cash outflows are ongoing, and dilution is still significant. The July Nasdaq minimum-bid notice also means the company must maintain price compliance.
Friday’s gains reflect expectations for reduced costs. Sustained growth depends on steady transaction volumes, ongoing positive cash flow, and evidence that improved margins are resilient amid the property slowdown in China.
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