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Fangdd Network Group Ltd. (DUO 9.60%)
Q1Â 2020 Earnings Call
Jun 10, 2020, 7:00 a.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Operator
Ladies and gentlemen, thank you for standing by, and welcome to Fangdd Network Group Limited First Quarter 2020 Earnings Call. [Operator Instructions] After management's prepared remarks, we will have question-and-answer session. Please note, this event is being recorded. I would now like to hand the conference over to your speaker host today, Mr. Warren Wen, Financial Controller of the company. Please go ahead, sir.
Huaxin Wen -- Financial Controller
Thank you, operator. Hello, everyone, and thank you all for joining us on today's call. Fangdd announced its first quarter 2020 results today. An earnings release is now available on the company's IR website. Today, you will hear from our Chairman and Co-CEO, Mr. Duan Yi, who will start the call with a review of our progress and the current industry dynamics in the first quarter. He will be followed by our Co-CEO, Mr. Zeng Xi, who will address our development strategies in more detail. Afterwards, our CFO Mr. Pan Jiaorong will go over our financials before we open up the call for questions. Our management team will deliver their remark in Chinese and I will provide the English translation.
Before we continue, I would like to refer you to our safe harbor statement in our earnings press release, which applies to this call as we will be making forward-looking statements. And please note that we will discuss non-GAAP measurement [Phonetic] today, which is more thoroughly explained and reconciled to the most comparable measure reported under the Generally Accepted Accounting Principles in our earnings release and filings with the SEC.
And with that, I will turn the call over to our Co-CEO, Mr. Duan Yi. And please go ahead, sir.
Yi Duan -- Co-Founder, Chairman of the Board of Directors and Chief Executive Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
Hello everyone, welcome to our earnings call.
Yi Duan -- Co-Founder, Chairman of the Board of Directors and Chief Executive Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
And this is the Co-CEO of Fangdd Network and Chairman of the Board Duan Yi.
Yi Duan -- Co-Founder, Chairman of the Board of Directors and Chief Executive Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
Okay. Let me translate for this. During the first quarter of 2020, the COVID-19 outbreak severely disrupted economic development both in China and around the world. In China, this disruption has not only adversely impacted the real estate industry, but also reduced the real estate agents' offline business hours to only a third of what -- of that industry in period of 2019. As a result, nearly 80% of all real estate agents in China were unable to work offline and leverage online platform to manage their business at an increasing rate in this period, and this market channel has brought [Phonetic] challenges and opportunities through the independent third-party agent-centric service platforms, such as us, Fangdd, and the following key metrics reflect some of the market trends that we experienced in the first quarter.
As of March 31, 2020, we have grown the number of registered agents on our platform by 35.4% to approximately 1.32 million from approximately 0.97 million as of 31st March 2019. And notably, active agents on our marketplace in the first quarter of 2020 grew by 42.8% year-over-year to 218,400. The number of agents who had completed transactions on our marketplace in the first quarter of 2020 decreased by 50.1% year-over-year to 6,700. Our total closed-loop transaction GMV in the first quarter of 2020 decreased by 46.5% year-over-year to RMB17.9 billion. As a result, our total revenue in the first quarter of 2020 decreased by 58.5% year-over-year to RMB270 million. And the decrease is largely attributable to the reduced working hours offline of our real estate agents in the first quarter of 2020.
Yi Duan -- Co-Founder, Chairman of the Board of Directors and Chief Executive Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
Okay. Let me translate for this. Before I turn the call over to Mr. Zeng to provide additional information on our strategies and response to the epidemic and our expectation going forward, and -- I would like to -- Mr. Duan would like to share an update on the current state of the real estate market in China from a broad perspective and the following macro trends will help to paint a clear picture of COVID-19's impact on the Chinese real estate market and -- as well as our development and implementation of business strategies.
Based on the data from the National Bureau of Statistics of China and other research institutions, we have reached the following understandings.
Yi Duan -- Co-Founder, Chairman of the Board of Directors and Chief Executive Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
First, the epidemic's impact on offline operations was particularly severe. The epidemic caused a large number of real estate sales office across China, offline shops, to shut their business -- shut down their business during the outbreak. And in fact, all the -- the entire industry that rely on offline interactions, including real estate and other business, experienced serious disruptions. According to our research data, less than 30% of the agents to operate offline following -- after the Chinese New Year holiday in the first quarter. In addition, during the first quarter, nearly 80% of all the real estate agents reported significantly less property viewing or touring sessions and less transactions as a result of the COVID-19 outbreak and related traveling restrictions.
Yi Duan -- Co-Founder, Chairman of the Board of Directors and Chief Executive Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
All right. Again, COVID-19 has also reduced the overall volume of the property transactions and based on the data from National Bureau of the Statistics, real estate industry GDP in the first quarter declined by 6.1% year-over-year. And however, we expect the impact of the COVID-19 to be temporary and largely an effect of delaying the transaction to a later time. After 20 years of development, the real estate market in China has now achieved a balance of sufficient property supply and general demand, so that we have observed -- it is our observation that the first quarter did have a great decline in the sales and the transaction volume that we have observed at the same time that -- during the first month of second quarter, that is April, and the recovery of the transaction is much better -- it's better than expected. And we have observed that starting from May the recovery has returned to a normal and the balanced level of normal transaction -- market transaction. So our expectation for the entire year remain optimistic and believe the entire year transaction volume is not going to be impacted significantly.
Yi Duan -- Co-Founder, Chairman of the Board of Directors and Chief Executive Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
Lastly, the COVID-19 outbreak has accelerated the digitalization process of China's real estate market as the real estate developers and the property sellers increasingly rely on online transaction platform to sell their properties, and additionally agents and buyers are becoming more accustomed to viewing the properties and conducting negotiations virtually online while agencies are increasingly reliant on various [Indecipherable] manage their service and business. As a result, the number of active agents on our marketplace in February of this year increased by 64.4% as compared to the same period of 2019.
Yi Duan -- Co-Founder, Chairman of the Board of Directors and Chief Executive Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
Now, Mr. Duan will turn the call to Mr. Zeng, who will provide more details concerning our results and strategies in the first quarter as well as our expectations for the second quarter.
Xi Zeng -- Co-Founder, Director and Chief Operating Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
In the first quarter, we promptly adjusted our business strategies based on our understanding of the market dynamics and the development of COVID-19, more specifically in order to maximize our competitive advantages as an independent third-party marketplace, further empowering our agents and bolster our matchmaking efficiency. We focus on upgrading our SaaS solutions. Meanwhile, we remain dedicated to driving product innovation and expanding our foothold in the secondary property market. And in response to the COVID-19 outbreak, we focused on the following three key initiatives in the first quarter.
Xi Zeng -- Co-Founder, Director and Chief Operating Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
First, we remain committed to the continued optimization of our SaaS offering. By upgrading our product features during the first quarter, we have also made our SaaS product available to all real estate agents in China free of charge in order to help agents to move their business from offline to online since the beginning of the outbreak. And moreover, we increased our investment in the research and development, specifically for SaaS solutions for the secondary property segment.
Xi Zeng -- Co-Founder, Director and Chief Operating Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
During the first quarter, we further upgraded our online agency management tools, recovered [Phonetic] our Duoduo Cloud Agency app, enabled the agency owners to analyze their customer communications, marketing efforts within their own existing connections and to manage their agents more effectively and transparently through analysis of their online broadcast, online acquisition of customers and external costs and the analysis of the call quality so that they can -- the owner of offline agencies can understand more thoroughly on the operation status of respective agents of their own -- on offline shops.
Xi Zeng -- Co-Founder, Director and Chief Operating Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
We also strengthened our online agency service system by making our online customer support available 24/7. The number of agencies that reached out to us with the inquiry in the first quarter increased by 261% year-over-year. Furthermore, we've developed over 100 online courses covering SaaS tools usage portfolios [Phonetic], online project management and more to help us establish a remote SaaS service and improve agency service capabilities, and this course is tailored for both agencies and owners at different growth stages and help all the parties to continuously improve their online business service capabilities.
Xi Zeng -- Co-Founder, Director and Chief Operating Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
Additionally, we also enhanced the SaaS function to assist agents in attracting and converting customers or buyers. We achieved this by enabling agents to share those marketing campaigns or information previously created for their online shops across various online social media platforms and video sharing platforms, such as WeChat, Weibo, TikTok and Kuaishou. As a result of this initiative, our agencies generated a record high of 1.4 million leads during this period.
Xi Zeng -- Co-Founder, Director and Chief Operating Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
And additionally, we strengthened our research and development efforts, especially for the secondary property segment in response to our agencies' needs for online secondary property business. We quickly upgraded our secondary property SaaS modules like total cloud agency CRM, for example, was designed to help agencies to assess more secondary property listings, as well as improve their matchmaking and the operation management efficiencies. And moreover, our Duoduo transaction, another CRM tool, is able to offer solutions that can assist agencies in managing the transaction process for secondary properties and streamlining their services process and optimize their efficiencies.
Xi Zeng -- Co-Founder, Director and Chief Operating Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
As we further enrich our SaaS offerings and fulfill the operation needs of real estate agencies throughout the COVID-19 outbreak, we continue to increase the stickiness of our platform in return. Consequently, our number of active agents grew by 43% year-over-year to 218,000 during this quarter. More specifically, the number of active agents in February of this year increased by 64.4% as compared to the same period of 2019 while the number of active agencies in March of this year broke our all-time record high for the period and reached 159,000.
Xi Zeng -- Co-Founder, Director and Chief Operating Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
Secondly, in response to the impact of COVID-19, we upgraded our SaaS products and enabled our agencies to sell new products and -- more effectively and efficiently and attract more property listings from developers to our platform. For the secondary segment, we launched our preferred agent alliance network and established a secondary property transaction service center, a certified property transaction service center to focus our efforts on the development of innovative business initiatives, and we have provided more products like car parking space services and property declaration services to our agents and agencies on our platform.
Xi Zeng -- Co-Founder, Director and Chief Operating Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
We also launched our online sales office during the Chinese New Year period to better empower our partnering developers. By leveraging our technology capabilities, we enable potential buyers to arrange via [Phonetic] touring and live streaming property touring and viewing. In addition, we also successfully enabled the service capability of our agencies by strengthening their online business operations, which helped to reduce some of the sales differential [Phonetic] experienced by developers during the epidemic. As a result of our online shop services, we increased total number of new primary housing property projects in the first quarter by 54.8% year-over-year to 2,400 projects.
Xi Zeng -- Co-Founder, Director and Chief Operating Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
Okay. At the same time, we launched our preferred agent alliance network project to better address the needs of agencies by identifying excellent and outperforming real estate and secondary housing service to agencies. In the first quarter, we have more than 1,000 offline shops and more than 10,000 real estate agents, who actively joined this alliances network. And we have -- also covering in the first-tier city like Shanghai and Hangzhou, we have offered our certified secondary transaction -- property transaction center and we have -- through our SaaS system, we have a control on the transaction scenario and we have digitalized both the transaction and the transaction scenario, so that we have the opportunity to provide more value-added services through the financial service.
Xi Zeng -- Co-Founder, Director and Chief Operating Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
Our platform focuses on providing car parking sales service to our agencies, in particular, the exclusive sales service to our agencies. In the first quarter, our exclusive car parking place sales service has strong foothold on Shanghai, Nanjing, Qingdao, Chengdu, Wuhan and literature [Phonetic] in total delivered seven cities across China and we have got approximately 10,000 car parking spaces across China to the platform, and all these are exclusive sales service available to the agencies and agents through our preferred agent alliance network project.
Xi Zeng -- Co-Founder, Director and Chief Operating Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
At the same time, our platform also provided the secondary housing declaration service and this is largely based on our strategy and positioning -- value proposition of brand name secondary house and this is based on those old and -- old secondary house and provides professional upgrading and renovation to this secondary housing. So therefore we can help the agencies to realize more transaction and gain more profit.
In the first quarter, our platform in Shanghai alone has more than 1,000 real estate agencies and more than a dozen [Phonetic] of secondary house owners have joined our secondary housing declaration service project and we have received a good rating from the agency and about the owners.
Xi Zeng -- Co-Founder, Director and Chief Operating Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
Against the [Technical Issues] macro uncertainties throughout the COVID-19 pandemic, we leveraged our agent base and property listing growth engine to maintain our persistent business growth; we call it a flywheel effect, and we continued to optimize our matchmaking algorithms during this pandemic by -- we have provided certain features like Guess Your Like [Phonetic] and daily recommendation literature to improve the operational efficiencies of the platform, and we were able to better utilize our analysis of both the user and the agency data to further refine our matchmaking efficiencies during this pandemic. And such assets help us to not only fortify our own capability in the -- our facilitation of real estate transactions, but also enabled us to augment the efficiency of agent transactions in the period.
Xi Zeng -- Co-Founder, Director and Chief Operating Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
Lastly, let me share an update on our expectations for the second quarter.
Xi Zeng -- Co-Founder, Director and Chief Operating Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
Currently, the global pandemic is still [Technical Issues] and we cannot become optimistic over this situation. And the China's traditional real estate sales model will continue to face challenges going forward under this situation. Based on the data from EH Consulting [Phonetic], China's total floor area of primary housing sold in April decreased by 25.6% year-over-year, but slightly increased by 3.7% compared to March. And the month-over-month increase in April was largely because the transaction was delayed from March and closed in April. So therefore, according to our own data, the total floor area of the primary real estate sold in May decreased by 5.5% year-over-year, but increased 11.6% from April. So we believe there is going to be a steady recovery in the months to come.
Xi Zeng -- Co-Founder, Director and Chief Operating Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
Our business model as an independent third-party platform is increasingly recognized and appreciated by our agents, in particular during this pandemic moment, where every participant has a serious difficult moment. Going forward, we will maintain this core commitment and enable agencies to operate effectively through our focus on developing our SaaS tools, refining our agency services and the matching algorithm and in innovating -- and innovation on our product offerings.
Xi Zeng -- Co-Founder, Director and Chief Operating Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
Yes. Firstly, we will continue to invest through the optimization of our SaaS infrastructure and the refinement of our SaaS product metrics. Specifically, our total property sales app will enable agencies to operate and manage their business remotely and online. Our total cloud agency CRM tool can efficiently match agencies with property listings, enhance the coordination within the agencies and execute multiple operation projects online simultaneously. Our total transaction CRM will assist agencies with secondary property transaction and various stages of their transaction and we can further provide value-added financial services to the process and digitalizing their agency operations. And we expect in the second quarter the active agents on our platform will continue to increase both in its size and in its depth.
Xi Zeng -- Co-Founder, Director and Chief Operating Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
Secondly, in terms of operation services, and we have established a dedicated service team for our preferred agent alliance network to better serve our top agencies on our platform. This initiative will further increase the loyalty of high-quality agency to our platform. At the same time, we will continue to optimize our platform's ability to provide all our agency service in order to improve our request response, efficiency and service quality. And the improvement of our operation service will help attract more new primary housing property listings from our partner developers and more agencies to complete their new property transactions on our platform. And doing so, we will significantly increase our agency base and the property listing. And this is a flywheel effect, and under this flywheel effect, we will be able to strengthen our competitiveness in our market.
Xi Zeng -- Co-Founder, Director and Chief Operating Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
And thirdly, leveraging our SaaS solutions and agent service system, we will continue to introduce innovative business initiatives to further empower our agencies' connection and develop our secondary property segment and we use this as a new driver for our profit growth.
Xi Zeng -- Co-Founder, Director and Chief Operating Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
With our nationwide coverage of our secondary property transactions, certified property transaction service center, we will be able to launch transaction service to our SaaS system and establish a transaction data collection process for secondary property transactions and in return gain control over this offline transaction scenario. And in addition, by using our SaaS system and connection with financial institutions, of banks and other large financial institutions, we will be able to diversify the revenue stream of our own [Phonetic] and our agencies through our various value-added financial service product offerings through our SaaS system.
Xi Zeng -- Co-Founder, Director and Chief Operating Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
Moreover, following the government's guideline for upgrading the urbanization and our platform in the tier city has been rolling out our secondary housing declaration service and the targeting -- largely targeting the urban area -- within the urban area those old and small and virtually broken secondary housing and target for their upgrading and renovation. We aim at -- to create a first brand name secondary housing business for this platform. Therefore, we will be able to help our agencies to increase the transaction efficiency by renovating and upgrading our secondary housing listings and get more real estate agencies involved and drive more profit growth.
Xi Zeng -- Co-Founder, Director and Chief Operating Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
And our platform will continue to provide our car parking services -- exclusive sales services for agencies and targeting the first- and second-tier city car parking space market. We believe there is more than 800 billion of car parking space market in the first- and second-tier cities, so that we can help our agencies, in particular in our preferred agent alliance network to develop their own car parking space sales service revenue and share the profit there on.
Xi Zeng -- Co-Founder, Director and Chief Operating Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
So that we remain confident in our independency and as a third-party platform to our agency network and we are also confident on our efficiency and our cost effectiveness and our asset-light Internet SaaS model. Therefore going forward, I expect that these competitive advantages will continue to help us expand our business operation in China's real estate transaction sector. And now, based on which, I would like to provide an update on our expectations for the second -- to the second quarter of 2020. Currently, we are expecting our revenue to be between RMB660 million and RMB720 million in the second quarter of 2020. And this forecast, of course, it's based on our current views of the market environment and situation and subject to change.
Xi Zeng -- Co-Founder, Director and Chief Operating Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
And this comes to the end of my speech, and I will turn the call over to our CFO, Mr. Pan Jiaorong to review our financial results in this quarter.
Jiaorong Pan -- Chief Financial Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
Thank you, Mr. Zeng Xi. Now, I will provide a closer look into our first -- in our first quarter financial results. And before I start, please note that all numbers are in RMB terms unless otherwise noted.
Jiaorong Pan -- Chief Financial Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
Revenue in the first quarter of 2020 decreased by 58.5% to RMB272.1 million from RMB656 million in the same period of 2019. The decrease was due to the outbreak of COVID-19 in China and the resulting restraints imposed on agents, which negatively impacted the ability of agents to carry out business during this period. The decrease in the business activities of agents resulted in the decrease in both the number of transactions and the GMV facilitated on the company's marketplace and that's significantly inhabited the company's revenue growth capabilities.
Jiaorong Pan -- Chief Financial Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
Cost of revenue in the first quarter of 2020 decreased by 58.3% to RMB222.7 million from RMB534.5 million in the same period of 2019, mainly attributable to the decrease in commission fees payable to the agents for the services they have rendered, which was largely in line with the decreased commission income from our transactions.
Jiaorong Pan -- Chief Financial Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
Gross profit in the first quarter of 2020 decreased by 59.3% to RMB49.4 million from RMB121.5 million in the same period of 2019. Gross margin in the first quarter of 2020 remained stable at approximately 18.2% compared to the same period of 2019.
Jiaorong Pan -- Chief Financial Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
Operating expenses in the first quarter of 2020, including share-based compensation expenses of RMB26.4 million, increased by 62.7% to RMB189.4 million from RMB116.4 million in the same period of 2019.
Jiaorong Pan -- Chief Financial Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
Now, let's take a look at the breakdown of operating expenses for the first quarter of 2020.
Jiaorong Pan -- Chief Financial Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
Sales and marketing expenses in the first quarter of 2020 decreased by 77% to RMB1.4 million from RMB6.1 million in the same period of 2019. The decrease in sales and marketing expenses were primarily due to reduction in spending on brand, promotion and marketing activities to attract property listings from real estate developers and from real estate developers to the company's marketplace.
Jiaorong Pan -- Chief Financial Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
Product development expenses in the first quarter of 2020 were RMB95 million compared to RMB65.7 million in the same period of 2019. The increase in product development expenses was mainly attributable to share-based compensation expenses of RMB17.2 million in the first quarter of 2020. The remaining increase of RMB12.1 million in product development expenses was mainly -- primarily due to higher personnel-related expenses, resulting from the increase in average compensation of our product development personnel in the first quarter of 2020 as the company sought to enhance its technological infrastructure to attract and retain more agents.
Jiaorong Pan -- Chief Financial Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
Our general and administrative expenses in the first quarter of 2020 were RMB93.1 million compared to RMB44.5 million in the same period of 2019. The increase in general and administrative expenses included share-based compensation expense of RMB9.3 million in the first quarter of 2020. The remaining increase of RMB39.3 million in general -- our G&A expenses was primarily attributable to: first, an increase in headcount to improve the company corporate governance and ensuring compliance in relation to the company's status as US listed company; and second, certain listing expenses relating to the listing of the company since last quarter of 2019; and third an increase in the account of provision for doubtful debtors, which was mainly due to the slowdown in settlements with developers as a result of the COVID-19 outbreak during the quarter and the increase of provision [Phonetic] by RMB32 million.
Jiaorong Pan -- Chief Financial Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
Okay. Loss from operations for the first quarter of 2020 was RMB140 million compared to income from operation of RMB5.1 million in the same period of 2019 and non-GAAP loss from operations in the first quarter of 2020 was RMB113.6 million compared to a non-GAAP income from operations of RMB5.1 million in the same period of 2019.
Jiaorong Pan -- Chief Financial Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
Our net loss in the first quarter of 2020 was RMB136.4 million compared to the net income of RMB14.8 million in the same period of 2019. Non-GAAP net loss in the first quarter of 2020 was RMB110 million compared to non-GAAP income of RMB14.8 million in the same period of 2019. And the loss is largely attributable to the following factors: the first, decrease in the sales volume, largely attributable to the outbreak of COVID-19; and the second, in order to support our real estate agencies to resume work, we have additional input and we have additional investment to our product offerings; and the third, we have increased our headcount on the compliance and we have increased the headcount to improve the company's corporate governance and ensure compliance in relation to the company's status as a US listed company; and the last one is there is an increase in the account receivable provision by RMB32 million, which was largely due to the slowdown in settlement with the developers as a result of the COVID-19 outbreak during this quarter.
Jiaorong Pan -- Chief Financial Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
Okay. The basic and diluted loss attributable to the ordinary shareholders per American Depositary Share, that is ADS, in the first quarter of 2020, were both RMB1.75. In comparison, the company's basic and diluted loss is attributable to the ordinary shareholders per ADS in the same period of 2019 were both RMB1.25. Each ADS represents 25 of the company's Class A ordinary shares.
And as of March 31, 2020, the company had cash and cash equivalents, restricted cash and short-term investments of RMB1 billion and short-term bank borrowing of RMB488 million as well as unutilized banking credit lines of RMB315 million. And for the first quarter of 2020, our net cash used in operating activities was RMB48.6 million.
Jiaorong Pan -- Chief Financial Officer
[Foreign Speech]
Huaxin Wen -- Financial Controller
Okay. That concludes our conversation and prepared remarks today, and because this is really -- it takes a lot of time on our prepared remarks today. So if there is any question, and welcome to contact our IR and for timely sharing of our information, and thank you all.
We will provide no Q&A section operator. And this is the end of our telephone conference today.
Operator
[Operator Closing Remarks]
Questions and Answers:
Duration: 65 minutes
Call participants:
Huaxin Wen -- Financial Controller
Yi Duan -- Co-Founder, Chairman of the Board of Directors and Chief Executive Officer
Xi Zeng -- Co-Founder, Director and Chief Operating Officer
Jiaorong Pan -- Chief Financial Officer
