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Tag: DUO stock

  • Strong Pre-Hour Gains For FangDD Network (DUO) Shares

    Strong Pre-Hour Gains For FangDD Network (DUO) Shares

    FangDD Network Group Ltd. (NASDAQ: DUO) has recently observed a notable increase in its stock prices, a development attributed to the successful execution of its substitution listing plan.

    As of the latest pre-market check, shares of DUO were trading at $4.39, reflecting a substantial rise of 29.50%. This follows a preceding gain of 9.35%, which concluded the previous session at $3.39, indicating a robust investor sentiment surrounding the company.

    Execution of Substitution Listing

    This week, FangDD Network (DUO) implemented its substitution listing plan, having previously announced its intention to delist its American depositary shares (ADSs) from The Nasdaq Capital Market.

    The Bank of New York Mellon has acted as the depositary for the company’s ADSs throughout this process. Following the delisting, FangDD listed its Class A ordinary shares, previously represented by the ADSs, for trading on Nasdaq on September 30, 2024. Each ADS corresponds to one Class A ordinary share, with a par value of $0.0005625.

    Details of the Exchange Process

    In preparation for the substitution listing, the Depositary mandated the surrender of all ADSs to facilitate their exchange into the company’s Class A ordinary shares. The exchange process commenced on the designated Exchange Date, marking the beginning of trading for FangDD’s Class A ordinary shares on Nasdaq, while trading of the ADSs was subsequently suspended.

    New Equity Offering

    In addition to the substitution listing, FangDD has engaged in a securities purchase agreement with select investors to issue and sell 1,612,902 Class A ordinary shares at a price of $1.55 per share through a registered direct offering. The Purchase Agreement encompasses standard representations, warranties, and other provisions typical for transactions of this nature.

    The offering is anticipated to close around October 2, 2024, contingent upon meeting customary closing conditions. FangDD intends to allocate the net proceeds from this offering for general corporate purposes, with MM Global Securities, Inc. appointed as the exclusive placement agent for the transaction.

  • Fangdd Network Group Ltd. (DUO) Soars After Hours Amid Wider Optimism

    Fangdd Network Group Ltd. (NASDAQ: DUO) surprised investors with a staggering 90% surge in its stock price during after-hours trading, catapulting its value to $1.15, almost doubling its worth. This impressive leap followed a solid trading day on Friday where DUO climbed by nearly 4.5%.

    Despite the lack of any apparent catalyst for this surge, market watchers are speculating about potential profit-taking dips looming on the horizon. However, amidst the uncertainty, bullish sentiments prevail as investors ride the wave of optimism.

    Seeking to Ambitiously Disrupt China’s Real Estate Space

    The company, known for its customer-centric approach in the property technology sector, is making strategic moves to tap into the burgeoning real estate stock asset services market in China. Fangdd’s recent unveiling of its 2024 strategic layout underscores its commitment to adapting to market shifts and seizing new opportunities.

    In a space where urbanization is slowing down and housing saturation is becoming more pronounced, Fangdd’s pivot towards real estate stock asset services appears timely. By leveraging its expertise in digitalization services for real estate transactions, the company aims to establish itself as a key player in this trillion-dollar market.

    Asset Revitalization and Challenges

    The strategic blueprint for 2024 focuses on enhancing asset revitalization capabilities and expanding service asset projects, particularly in high-potential sectors like apartments, commercial properties, and industries. This proactive approach reflects Fangdd’s intent to diversify its revenue streams and mitigate risks associated with traditional transaction commissions.

    However, amidst the optimism, Fangdd faces challenges related to compliance with Nasdaq’s minimum bid price requirement. While the company has been granted a grace period to rectify the situation, it underscores the importance of monitoring stock performance and exploring viable solutions.

    Conclusion

    In conclusion, Fangdd’s remarkable after-hours surge, coupled with its strategic foray into real estate stock asset services, highlights its resilience and adaptability in a dynamic market environment. As investors await further developments, Fangdd’s ability to navigate challenges while capitalizing on emerging opportunities will undoubtedly shape its trajectory in the days to come.

  • Fangdd Network Group Ltd. (DUO) Reach New Lows on 2021 Year-End Earnings Report

    On April 22, the real-estate services provider, Fangdd Network Group Ltd. (DUO) filed its annual report on Form 20-F for fiscal 2021 with the SEC. Disappointed in the year-end earnings, investors had the stock plunge down to new lows in the after-hours on Friday.

    Source: iStock

    Thus, while the stock closed the regular session in the green at a price of $0.2924, it plunged to a new low of $0.2400 in the after hours. Consequently, DUO declined by a huge 17.92% in the after-hours session as 346.88K shares exchanged hands.

    DUO’s 2021 Earnings Preview

    According to the annual report, the company’s consolidated total revenue was RMB942.38 million with a YOY decline of 61.6%. This figure declined from the year-ago revenue of RMB 2,451.29 million while the pre-pandemic revenue was RMB3,599.43 million in 2019. Thus, it shows that the company has still not reached its pre-pandemic levels amid increasing competition and the resurgence of Covid-19 in China.

    Moreover, DUO reported a net loss of RMB1,202.99 million for the year ended on December 31, 2021. Comparatively, the company had a net loss of RMB221.35 million a year ago and RMB510.38 million in 2019.

    Furthermore, the foregoing resulted in a gross profit decline of 74.3% in 2021 to RMB106.5 million. Hence, the gross margin for the year was 11.3% against 16.9% in 2020.

    At the end of the year, the company’s cash, cash equivalents, and restricted cash totaled RMB516.2 million while short-term investments were RMB6.2 million.

    What Does the Future Hold?

    The company does not see profitability in the future based on its history of losses and negative cash flows from operating activities. On top of the increasing losses, while the cash flow from operating activities was positive in 2019, it has been negative in both 2020 and 2021.

    As the company continues to face headwinds from the spiking inflation and increasing competition amid the resurgence of Covid-19, it is working on improving its financial position. DUO plans to continue taking new business initiatives for introducing more SaaS solutions in the market. Additionally, the company also plans to invest in developing its real estate transaction digitalization services.

    Conclusion

    With its diminishing financial position and continued headwinds from multiple sides, the company seems to be up for further losses in the near term. With the near-term outlook still remaining gloomy, DUO stock also plunged to new lows on Friday.

  • Fangdd Network Group Ltd. (DUO) stock Under Corrections After Hours. Here’s why?

    On March 16, Fangdd Network Group Ltd. (DUO) stock fell under corrections in the after-hours due to its huge gain during regular trading. The stock made some big gains in the prior session on reports of support from the Chinese government for keeping the markets stable.

    Thus, the stock gained a huge 53.44% during the regular trading session after fluctuating between $0.3790 and $0.5750. DUO closed the session at $0.4100 at a super active volume of 86.69 million shares. The session’s volume was a huge 4,208% of its average 2.06 million shares. Following this, the stock succumbed to corrections in the after-hours and lost 6.34%. Hence, the stock was trading at $0.3840 apiece in the after-hours on Wednesday.

    The China-based investment holding company, Fangdd Network Group Ltd. has a market capitalization of $21.34 million.

    What Happened?

    Most Chinese stocks have had a very rough time lately due to China’s relations with Russia. The speculations of China’s support for Russia as Russia invades Ukraine, had the investors under continuous fear of added sanctions and further market frenzy. Like most Chinese stocks, DUO had also been in a persistent downward spiral for the past few weeks.

    On Wednesday, reports emerged about the Chinese government’s promise for support towards market stability. According to a state-run media report, the country’s financial stability and development committee also had a meeting recently. Moreover, the Chinese government has promised to roll out support for the economy to keep markets stable. Consequently, Chinese stocks including DUO emerged in hefty seismic moves on Wednesday. But the huge upsurge of DUO ultimately led to its downfall in the after-hours due to corrections.

    DUO Company News

    Source: WAATAgNet

    On January 7, the company announced receiving a notice from Nasdaq, dated January 4, 2022. According to the notice, DUO is in non-compliance with Nasdaq Listing Rule 5450(a)(1) for the minimum bid price requirement. The non-compliance resulted due to the company’s shares closing below $1.00 for consecutive 30 days. Therefore, Nasdaq gave the company a grace period of 180 days to regain compliance with the listing requirements, till July 5, 2022.

    The company will regain compliance with Nasdaq if its closing bid price remains $1.00 or above for consecutive 10 days during the grace period. Additionally, if the company failed to regain compliance in the required time, it may be eligible for a further extension of 180 days.