According to the Nasdaq listing rules, listed companies must keep the minimum market value of public shares at least $5 million. If the shortage lasts for 30 working days, there is a situation that does not meet the market value requirements.
Accordingly, Nasdaq wrote that according to the market value of Fangduoduo for 30 consecutive working days from September 8, 2022 to June, 2022 10, the company no longer meets the minimum market value requirements.
According to the new media, the share price of Fangduoduo has been falling continuously since mid-August. On September 8th, Nasdaq informed in writing that Fangduoduo's closing price was $65,438+$0.42 per share. Based on the total share capital of 5,525,200 shares, the market value of that day was still $7,845,800. /kloc-in September of 0/9, the share price has fallen to $65,438 +0.07 per share, and the share price has continued to fall since then; By June 65438+1October 65438+September, the closing price was only $0.7 177 per share, and the total market value fell to $3,965,400.
Even on June 2 1 day, when the US stock market rose sharply, the closing price of Fangduoduo still fell by 6.08% to 0.683 USD/share, with a total market value of 3,773,700 USD.
Compared with the IPO price of1October11,the market value of Fangduo is 632 million dollars, and now the market value of Fangduo has dropped by about 99.4%. Small market value, few tradable shares, average performance and small trading volume make Fangduoduo increasingly become a "zombie stock" of Nasdaq Stock Exchange.
In fact, this stock price dilemma is not limited to many houses. American capital seems to be less interested in China stocks, not to mention real estate-related concept stocks. After the sharp decline in performance, even the shell of the "Star of China Stock Market" experienced a sharp rise in the initial stage of listing, and its share price went down all the way.
In the American stock market, low-priced stocks may not be unusual.
Many houses were listed on 20 1 9165438+10/October1. I don't know whether it was lucky or unlucky, because the real estate and capital markets were still good at that time. On the day of listing, the share price rose more than 8%, reaching a maximum of $65,438 +04.08.
But like most stocks, the stock price began to decline after rising in the initial stage of listing. In March 2020, when the COVID-19 epidemic broke out, Fangduoduo's share price began to fall.
Trapped by the double pressures of the COVID-19 epidemic and the adjustment of the real estate market, as a member of the intermediary industry, there are many houses, which are also affected by the overall downturn of the industry.
"Our ability to continue as a going concern depends on our ability to generate cash flow from operations and arrange adequate financing arrangements, which are affected by various factors, many of which are beyond our control." Fang Duoduo said in the 20021annual report.
The possible problems mentioned by Fang Duoduo include the changes in the overall economic situation and regulatory environment in China, the persistent downturn in the real estate market in China, and the rising credit risk caused by the COVID-19 epidemic and the thunder of developers. These problems are the common pain points of 202 1 domestic real estate industry participants.
In the report, Fang Duoduo specifically mentioned the sudden increase of bad debt reserve last year-2021year, and the bad debt reserve of Fang Duoduo increased from 68.6 million yuan (RMB, the same below) in 2020 to 6130,000 yuan.
There is another question that is often questioned about Fangduo: as a self-proclaimed SaaS platform service provider, it has always relied on the contradiction of commission income.
With the depression of the domestic real estate industry and the sharp drop in the sales of housing enterprises, the mode that most of the income of many houses comes from the commission income generated by housing transactions is naturally greatly affected.
According to the data, although Fangduoduo experienced rapid growth in 20 18 and 20 19, its total income increased from 2.3 billion yuan to 3.6 billion yuan. However, in 2020, the income of Fangduoduo began to decline to 2.5 billion yuan.
On the other hand, the net profit of Fangduoduo has been in a state of loss since its listing, and the situation of 202 1 has become even worse.
In 20 19 and 2020, Fangduoduo recorded a net loss of 5 10/00000 yuan and 220 million yuan respectively. Among them, in 20 19, the operating cash flow was positive1.1.90 billion yuan, but in the following year, the data plummeted to negative 325 million yuan.
In 20021year, its realized income was 942 million yuan, down 61.6% year-on-year; Gross profit/kloc-0.07 million yuan, gross profit/kloc-0.7%. At the same time, the net loss expanded to 654.38+203 million yuan, and the cash flow generated by operating activities was also negative 60.6 million yuan.
By 2022, the global economy is weakening and this situation will continue to deteriorate.
According to the interim report of Fangduoduo in 2022, its revenue in the first half of the year was RMB 65.438+0.45 billion (about USD 26.5438+0.6 million), which was 7.9 1% lower than RMB 693 million in the same period of last year. Gross profit was 4.7 million yuan, down 95. 1% year-on-year.
During the period, Fangduoduo recorded a net loss of 65.438+92 billion yuan, compared with 244 million yuan in the same period of last year; The net loss under non-GAAP was 65.438+0.83 billion yuan, while the net loss under non-GAAP was 22.65438+0 billion yuan in the same period last year.
Obviously, in today's environment, the performance of many houses is difficult to reverse, so it is not surprising that investors are bearish.
Fortunately, there is still a half-year buffer period for this delisting warning.
Fang Duoduo said that the delisting letter does not affect the company's listing in the Nasdaq global market at present. "In order to restore compliance, the market value of shares publicly held by the company must exceed $5 million for at least ten consecutive working days. If the company fails to restore compliance before April 18, 2023, the company may be eligible for additional time to restore compliance, or may face delisting. "
He also said that the company intends to monitor the market value of its publicly held shares from now until April 18, 2023, and intends to make up for this defect within the prescribed grace period. During this period, the company expects that American Depositary Shares representing the company's Class A common stock will continue to be listed and traded on the Nasdaq global market.
It is not known whether Fang Duoduo will eventually withdraw from the market, but most of the Chinese stocks are "unpopular" on Nasdaq. This is especially true for real estate-related intermediary enterprises. For example, the market value of the first shell of the residential service platform once exceeded 90 billion US dollars, exceeding the sum of real estate enterprises such as Vanke, Poly and Greenland. However, after the stock price fell in July and August last year, it has not improved for more than a year, and now its market value is about 654.38 US dollars+04.730 billion.
According to the statistics of investors, there have been dozens of cases of privatization of Chinese stocks in recent years, and it is expected that more and more Chinese stocks will be delisted in the future.
According to another data, 158 listed stocks (excluding special purpose acquisition companies) have been delisted in recent ten years, of which 22% were delisted and forced to delist, 50% were privatized, and 10% voluntarily delisted.
Among the companies delisted and forced to withdraw from the market, most of the reasons are that they do not meet the minimum market value listing standards, or the closing price for 30 consecutive working days is lower than $65,438 +0.00 yuan per share.
Some analysts pointed out that low valuation, low performance and partial preference effect are all reasons for the "sitting on the bench" of China Stock Exchange.
"These companies seem to be growing in size, but the return on equity of enterprises is declining year by year. Once the market and macroeconomic growth rate decline, enterprises will face choice and stall. " Someone once commented on those companies that were forced to withdraw from the market.