Analyst Summary
- Fangdd Network Group Ltd., a Cayman Islands holding company, conducts operations in China through a VIE structure.
- Mr. Wei Zhang transferred his equity interests in the VIE to Mr. Xi Zeng, Chairman of the Board and CEO, for nominal consideration to simplify the shareholding structure.
- The currently effective Fangdd Network VIE Agreements include business operation agreement, powers of attorney, equity interest pledge agreements, operation maintenance service agreement, technology development and application service agreement, and option agreements.
- The WFOE has the right to direct the activities of the VIE, receive substantially all of the economic benefits, and has an exclusive option to purchase the equity interests in the VIE.
- The equity interest pledge agreements guarantee the performance by the VIE and its shareholders of their obligations under the master agreements.