FangDD Acquires Patents for US$35 Million to Enter Real Estate Management

SHENZHEN, China, June 24, 2024 — Fangdd Network Group Ltd. (Nasdaq: DUO) (“FangDD” or the “Company”) today announced an agreement to acquire certain patents related to cloud computing technology in China. This acquisition aligns with the Company’s strategic move to expand into technology-driven real estate management, supplementing its existing operations.

The patents will be acquired for US$35,000,000. The seller is also eligible for an earnout payment, calculated as US$15,000,000 multiplied by the ratio of the revenue generated by the patents in each fiscal year ending on December 31, 2024, December 31, 2025 and December 31, 2026, to RMB108,450,000. The total earnout payments for all three years will not exceed US$15,000,000.

The Company has a three-month timeframe to secure the necessary funding and finalize the transaction. If the transaction is not completed by September 21, 2024, either party has the right to terminate the agreement via written notice without incurring any liability to the other party. The purchase agreement includes standard representations, warranties, and other provisions common to transactions of this nature. The complete details of the agreement are available in its full text, which will be filed with the U.S. Securities and Exchange Commission on a current report on Form 6-K.

About FangDD
Fangdd Network Group Ltd. (Nasdaq: DUO) is a customer-focused property technology company in China. It specializes in providing digitalization services for real estate transactions. By leveraging mobile internet, cloud computing, big data, artificial intelligence, and other technologies, FangDD has fundamentally transformed the way real estate transaction participants operate, offering a range of modular products and solutions powered by SaaS tools, products, and technology. For more information, visit http://ir.fangdd.com.

Safe Harbor Statement

This announcement includes forward-looking statements. These statements fall under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by words such as “aim,” “anticipate,” “believe,” “estimate,” “expect,” “hope,” “going forward,” “intend,” “ought to,” “plan,” “project,” “potential,” “seek,” “may,” “might,” “can,” “could,” “will,” “would,” “shall,” “should,” “is likely to,” and the negative forms of these words along with other similar expressions. Any statements that are not historical facts, including statements about the Company’s beliefs and expectations, constitute forward-looking statements. Forward-looking statements inherently carry risks and uncertainties. Several factors could cause actual results to differ significantly from those expressed in any forward-looking statement. All information provided in this press release is current as of the date of this release and is based on assumptions that the Company considers reasonable as of this date. The Company does not assume any obligation to update any forward-looking statement, except as required by applicable law.

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