ByteDance-owned real estate platform, "Xingfu Li", is making adjustments to its offline business, according to Chinese media Tech Planet. The company will no longer manage the offline property business "Xiaomai Real Estate", which focuses on vertical management of offline businesses. Instead, the company will focus on Xingfu Li's online operations, and the entire offline property business of Xiaomai Real Estate will be transferred to the property brokerage company Maitian.

Furthermore, the employees of Xiaomai Real Estate in Fuzhou will be transferred to Maitian, but those who do not wish to transfer can receive compensation and resign. A spokesperson for Xingfu Li confirmed the news, stating that the transfer of Xiaomai Real Estate to Maitian is true. Xingfu Li will continue to focus on its online operations and provide services to property users and practitioners.

In late 2021, Xingfu Li garnered significant attention from the public. On November 24th, it separated from ByteDance and on November 29th, acquired a 20% stake in Maitian. While the housing market in China was not at its peak, it still remained a significant industry with the sales of commercial housing alone exceeding 17 trillion yuan in 2020. Given its lucrative nature, it's no surprise that ByteDance wanted a share of the pie.

Beike, the largest housing transaction and service platform in China, recorded a new housing transaction volume of 1.38 trillion yuan in 2020, accounting for 7.97% of the market share, while the second-hand housing transaction volume was 1.94 trillion yuan, accounting for 26.6% of the market share. Despite this, Beike's overall market share was only 13.5%, leaving room for ByteDance to enter the market.

Unfortunately, despite its initial ambitions, Xingfu Li was unable to maintain its new home sales business due to the downturn in the real estate industry. As a result, it had to make layoffs and withdraw from certain cities, with only its new home sales business in Beijing remaining by 2022.

Xingfu Li’s recent adjustment comes as no surprise, and also marks the second time in recent days that ByteDance has had to trim its offline business. According to 21st Century Business, all official patient groups associated with Xiaohe Health, a telehealth platform under ByteDance, will cease operations on April 28th due to business adjustments.

Since February of this year, rumors have been circulating regarding the potential shutdown of ByteDance's telehealth platform, Xiaohe Health. Similar to Xingfuli's acquisition of Maitian, Xiaohe Health made headlines with its high-profile acquisition of the Chinese high-end private hospital chain, AM Care, in 2022. The deal was reported to be worth 10 billion yuan (roughly 1.5 billion USD) by Caixin. However, a memo disclosed by JQ Consultancy in June of 2021 showed that Meinian Onehealth's revenue was only slightly over 2 billion yuan (about 300 million USD) in 2020.

During ByteDance's 11th anniversary in March of this year, CEO Zhang Yiming emphasized the company's commitment to its main businesses, namely information platforms and e-commerce. He also stated that ByteDance would focus on investing in these two categories of businesses and "strengthening the basics" in the coming year.