Fangdd (NASDAQ: DUO) hosted a large press conference in Shanghai celebrating an important strategic cooperation agreement with Shanghai Yuancui, a subsidiary of Centaline Group. Headquartered in Hong Kong, Centaline Group is one of the largest property agencies in Asia.
“Our joint venture with Shanghai Yuancui will focus on creating a new technology- and service-oriented real estate agent service model to further empower those highly capable agents in our Preferred Agent Alliance Network via an innovative and technology-enabled franchising system,” said Yi Duan, the chairman and co-CEO of Fangdd.
Shanghai Yuancui provides technology-enabled solutions, franchise branding, and operational efficiency improvements for agents and agencies in the real estate brokerage industry. It operates more than 400 offline stores. Centaline (China) Property Agency Ltd. is a shareholder of Shanghai Yuancui.
Upon the closing of the investment deal, Fangdd will hold 51% of the equity interest in Shanghai Yuancui.
An Essential Strategic Move
Under the partnership, Fangdd and Centaline Group aim to jointly develop a leading technology-enabled franchising system designed to empower real estate agencies in China. Additionally, the partnership will enable Fangdd to combine Centaline Group’s extensive offline operation experience with Fangdd’s technologically innovative digital capabilities. Fangdd’s expertise in data collection, SAAS empowerment and real estate transaction chain digitization will be critical to unlocking the growth of its service offerings and improve its technology-enabled franchising system. Together, each company’s offline and online capabilities are expected to create a powerful force in China’s booming real estate marketplace.
In a recent earnings report, Fangdd Network Group Ltd. (Nasdaq: DUO) posted another quarter of growth in the number of active agents, representing an increase of 22% compared to the same period last year.
The number of active agents in the company’s marketplace exceeded 276,000 and the number of closed-loop agents hit 26,500, representing an increase of 22% and 28%, respectively, compared to the same period in 2019.
Fangdd also reported that its closed-loop GMV (transactions carried out from beginning to end on Fangdd’s platform) was $8.2 billion – a jump of 9.4% from the same period last year.
Over the past three months, Fangdd built an additional 10 self-owned transaction service centers and interfaced its systems with both the Industrial and Commercial Bank of China and the Bank of Communications to fully digitize the transaction of commission payments.
“Going forward, we remain committed to further cultivating our agent base and developing more best-in-class SaaS and service solutions to fortify our industry leadership,” Duan said in the statement.
Further, the number of new construction property projects on Fangdd’s platform reached 3,479 as of September 30, 2020, representing an increase of 19.2% quarter over quarter.
For the fourth quarter of 2020, the company expects revenue to be between 600 million yuan and 700 million yuan.
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