Presentation Title

O c t o b e r 2 0 1 9

1Q20 Results PresentationJune 2020

1

Disclaimer

This presentation has been prepared by Phoenix Tree Holdings Limited (the “Company”) solely for informational purposes. This presentation does not constitute anoffer to sell or an invitation to purchase or subscribe for any securities of the Company for sale in the United States or anywhere else. No part of this presentation

shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Specifically, these materials do not constitute a “prospectus”within the meaning of the U.S. Securities Act of 1933, as amended, and the regulations enacted thereunder.

This presentation does not contain all relevant information relating to the Company or its securities, particularly with respect to the risks and special considerations

involved with an investment in the securities of the Company. Nothing contained in this presentation shall be relied upon as a promise or representation as to thepast or future performance of the Company. Past performance does not guarantee or predict future performance.

You acknowledge that any assessment of the Company that may be made by you will be independent of this presentation and that you will be solely responsible

for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for formingyour own view of the potential future performance of the business of the Company.

This presentation contains statements that reflect the Company’s intent, beliefs or current expectations about the future. These statements can be recognized bythe use of words such as “expects,” “plans,” “will,” “estimates,” “projects,” “intends,” or words of similar meaning. Any statement in this presentation that is not a

statement of historical fact is a forward-looking statement and involves known and unknown risks, uncertainties and other factors which may cause the Company'sactual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by such

forward-looking statements. There can be no assurance that the results and events contemplated by the forward looking statements contained herein will in factoccur. None of the future projections, expectations, estimates or prospects in this presentation should be taken as forecasts or promises nor should they be taken as

implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared

are correct or exhaustive or, in the case of assumptions, fully stated in the presentation. The Company also cautions that forward-looking statements are subject to

numerous assumptions, risks and uncertainties, which change over time and which may be beyond the Company’s control. The Company assumes no duty to and

does not undertake to update any forward-looking statements to reflect actual results, changes in assumptions or changes in factors affecting these statements.

In evaluating its business, the Company uses certain non-GAAP measures as supplemental measures to review and assess its operating and financial performance.

These non-GAAP financial measures have limitations as analytical tools, and when assessing the Company’s operating and financial performances, you should not

consider them in isolation, or as a substitute for any consolidated statement of operations data prepared in accordance with U.S. GAAP. In addition, theCompany’s calculation of these non-GAAP financial measures may be different from the calculation used by other companies, and therefore the comparability ofthese measures may be limited. The reconciliation of those measures to the most comparable GAAP measures is contained within this presentation or available at

our website http://ir.danke.com.

This presentation speaks as of March 31, 2020. Neither the delivery of this presentation nor any further discussions of the Company with any of the recipients shall,under any circumstances, create any implication that there has been no change in the affairs of the Company since that date.

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Danke is one of the largest co-living platforms in

China with the fastest growth1

We are redefining the residential rental market through

technology

Comfortable

yet affordable homes for young people

China’s residential rental market is one of the last

conventional markets to be touched by technology

with

RMB3.0 tn

market size by 20231

Our mission is

to help people

live better

Note:1. According to iResearch

3

Our footprint

Notes:

1. As of March 31, 2020.

2. Represent apartment units that are within the pre-opening period (i.e., the period between the effective date of the lease with the property owners and the date when the relevant

apartment units achieve ready-to-move-in status)

3. Represent apartment units that achieve ready-to-move-in status, including those rented out and to be rented out

Number of apartments – by status

Number of apartments – by city category

2 3

176,746 192,268 213,866 223,753 207,046

108,603 154,105

192,880 214,556 211,984 285,349

346,373

406,746 438,309

419,030

3/31/2019 6/30/2019 9/30/2019 12/31/2019 3/31/2020

Beijing, Shanghai and

Shenzhen

Other cities

(as of period end)

(as of period end)

15,012 5,160 14,835 7,081 3,571

270,337 341,213

391,911 431,228 415,459

285,349

346,373

406,746 438,309

3/31/2019 6/30/2019 9/30/2019 12/31/2019 3/31/2020

Pre-Opening Units Opened Units

419,030

Established operations in 13 cities

with 419,030 apartment units operated1

BeijingBeijing

ShenzhenShenzhen

ShanghaiShanghai

HangzhouHangzhouWuhanWuhan

TianjinTianjin

NanjingNanjing

GuangzhouGuangzhou

ChengduChengduSuzhouSuzhou

WuxiWuxi

Xi’anXi’an

ChongqingChongqing

Beijing

Shenzhen

Shanghai

HangzhouWuhan

Tianjin

Nanjing

Guangzhou

ChengduSuzhou

Wuxi

Xi’an

Chongqing

4

What we offer

o Dormitory-style apartments for employee housing

o Serves corporate clients

o Introduced in November 2018

Danke Apartment

Dream Apartment

Note:1. Offered to Dream Apartment residents only

o Private rooms and entire apartments

o Serves individual residents

o Primary business focus since inception

Value-added Services

24/7 onsite management & security1Wi-Fi

Cleaning Repair & maintenance

Laundry room1

5

Single point-of-contact platform

Supply Demand

0 physical storefront

▪Centralization

▪Standardization

▪Online

Supply Intermediaries Demand

Traditional model “New rental” model

Disruptive “new rental” model solving pain points

on both sides

x Upgrade costsx Maintenance burdenx Inefficient rental processx Vacancy riskx Renter credit risk

x Affordabilityx High search costsx Poor housing conditionsx Counterparty riskx Lack of services

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Big data platform

Elimination of physical storefront

Effective replication and quality control

No reliance on individual

judgement

Centralized, unbiased decision making engine

Efficiency

Comprehensiveness

Accuracy

Replicability

Adaptability

Self-learning

Digital City

System

Intelligent

Pricing

System

Targeted

Sales

System

Intelligent

Renovation

System

…Danke Brain

Deeply-rooted technology DNATechnology powers every step of our business process

7

Well positioned to capture enormous market

opportunities

2019E1 2023E1

1 Serviceable addressable market

Residential rental market

in tier 1 and tier 2 cities in China

2 Total addressable market

China’s residential rental market3 Enormous incremental opportunity

Value-added services

RMB

2.0tnRMB

3.0tn

RMB

2.0tn

RMB

1.4tn

Note:1. According to iResearch

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Distribution of unit day status is key to group level

profitability

Unit level loss D&A

Incentives

for

apartment

sourcing Leasing cost

Revenues Leasing cost D&A Incentives

for

apartment

sourcing

Incentives

for

apartment

renting

Cost of

services

Unit level

profit

A rented-out apartment unit

A vacant apartment unit7

Unit level profit for a rented-out unit

Unit level loss for a vacant unit

3

1 2 3 4 5 6

Notes:

1. Defined as revenues divided by rented-out unit days which are defined as the simple sum of the number of days we had held each apartment unit in rented-out status during a

particular period

2. Defined as leasing cost divided by total unit days. Leasing cost represents the sum of rental cost and pre-opening expense. Total unit days are defined as the simple sum of the number of

days we had held each apartment unit during a particular period

3. Defined as D&A divided by total rentable unit days. D&A only applicable for apartment units achieve ready-to-move-in status. Total rentable unit days are defined as the simple sum of

the number of days we had held each apartment unit that has achieved ready-to-move-in status during a particular period

4. Defined as incentives for apartment sourcing divided by total unit days

5. Defined as incentives for apartment renting divided by total rented-out unit days

6. Defined as cost of services divided by total rented-out unit days

7. Defined as apartment units that are not rented-out including pre-opening or to be rented-out

Illustrative daily economics for an apartment unit

Gro

up

leve

l loss m

ak

ing

Gro

up

leve

l pro

fit ma

kin

g

vs

vs

Rapid expansion stage

Developed stage

Illustrative purpose only, solely based on management‘s expectation, no

guarantee of future performance and involving risks and uncertainties, and not

indicative for actual scale or proportion

Illustrative purpose only, solely based on management‘s expectation, no

guarantee of future performance and involving risks and uncertainties, and not

indicative for actual scale or proportion

2

4

9

373

1,138

197

328

2018 2019 1Q2019 1Q2020

1Q20: Solid growth in revenues despite the

challenges of the COVID-19 pandemic

Note:

1. Leasing cost represents the sum of rental cost and pre-opening expense. Leasing cost incurred before an apartment unit achieves ready-to-move-in status is recorded in pre-opening

expense while leasing cost incurred thereafter is recorded in rental cost

▪ Solid revenue growth driven by increase inopened apartment units

▪ Rental cost increased as a result of anincrease in the number of openedapartment units

▪ Pre-opening expense decreased primarilydue to a significantly lower number of pre-opening apartment units. The Companyslowed down the rate of sourcing newapartments in response to the COVID-19outbreak

Depreciation and Amortization

as % of Revenues

▪ D&A cost increased due to an increase inthe number of apartment units renovatedand opened

2,675

7,129

1,194

1,940

2018 2019 1Q2019 1Q2020

81.2%

89.8%

97.8%100.8%

10.1%

3.1%

7.0%

0.5%

2,442

6,624

1,251

1,965

2018 2019 1Q2019 1Q2020

Rental Cost Pre-opening Expense

Revenues

166.5%2018-2019

62.5%1Q2019-1Q2020

Leasing Cost1 Depreciation and Amortization

14.0% 16.0% 16.5% 16.9%

(RMB million) (RMB million, as % of revenues) (RMB million)

10

62 136 13 32 31

8516 30105

171

3742

97

366

577671

295

758

122

251

2018 2019 1Q2019 1Q2020

Other Expenses Incentives for Apartment Sourcing

Payroll Cost Cost of Services

Loss on Disposals of Long-lived Assets

19 66 10 775

209 37

56

176

256

59 68

201

506

120 73

471

1,038

226 204

2018 2019 1Q2019 1Q2020

Advertising Expenses Payroll Cost

Incentives for Apartment Renting Other Expenses

1Q20: Strong control over operating expenses

▪ Other operating expensed increased as a result of: (i) a loss onearly termination of rental agreements due to the earlytermination of certain leases with property owners primarily due tothe COVID-19 pandemic, (ii) an increase in cost of services asmore apartment units were operated, and (iii) an increase inincentives for apartment sourcing as the Company had moreopened apartment units and recorded more amortizedcommissions and lead generation fees for sourcing suchapartments in 1Q2020

Other operating expenses not directly related to operation of our

apartment units as % of revenues2

Notes:

1. See the table entitled “Share-based compensation expenses breakdown” for the amount of SBC expenses allocated hereinto.

2. Including payroll cost and other expenses

3. Including advertising expenses, payroll cost and other expenses

▪ Sales and marketing expenses decreased due to decreases inadvertising expenses, a result of proactive control of costs andexpenses

▪ Partially offset by: (i) an increase in incentives for apartmentrenting, and (ii) an increase in payroll cost as a result of therecognition of the share-based compensation (“SBC”) expensesupon the completion of the Company’s IPO (“IPO”) in January2020

Sales and marketing expenses not directly related to operation of

our apartment units as % of revenues3

Other Operating Expenses Sales and Marketing Expenses

105.6%1Q2019-1Q2020

120.4%2018-2019

9.7%1Q2019-1Q2020

14.8% 11.6% 7.6%15.8%6.3% 4.3% 3.9%4.2%

156.9%2018-2019

(RMB million) (RMB million)

Loss on Early Termination of Rental Agreements

1

1

11

204

527

113

274

2018 2019 1Q2019 1Q2020

111

194

49

61

2018 2019 1Q2019 1Q2020

4.1% 2.7% 1.5%4.1%7.4% 7.3% 6.8%9.4%

1Q20: Strong control over operating expenses

(cont’d)

▪ The increase was primarily due to the recognition of a substantialamount of SBC1 expenses upon the completion of the Company’sIPO in January 2020.

▪ In 1Q2020, RMB140.9 million of SBC expenses was allocated toG&A expenses. Without the effect of SBC expenses, G&A expensesas a % of revenues would decrease by 2.6 percentage points dueto proactive control of costs and expenses and operatingefficiency

▪ The increase was due to SBC expenses, partially offset byproactive cost and expense controls

▪ In 1Q2020, RMB32.3 million of SBC expenses was allocated toTechnology & Product Development expenses. Without the effectof SBC expenses, the above expenses as a % of revenues woulddecrease by 2.6 percentage points due to proactive control ofcosts and expenses

Excluding SBC expenses, general and

administrative expenses as % of revenues

158.8%2018-2019

142.0%1Q2019-1Q2020

Excluding SBC expenses, technology and product

development expenses as % of revenues

74.6%2018-2019

25.6%1Q2019-1Q2020

Notes:

1. SBC expenses: because the exercisability of the share options granted by the Company was conditional upon the completion of its IPO, the Company did not recognize any SBC expenses

related to the share options granted beforehand. Upon the completion of its IPO, the Company immediately recognized a substantial amount of SBC expenses associated with vested

option awards in the first quarter of 2020. See the table entitled “Share-based compensation expenses breakdown” for more information

General and Administrative Expenses Technology and Product Development Expenses

(RMB million) (RMB million)

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Appendix

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Condensed Statement of Comprehensive Loss

(RMB’000) 1Q2019 1Q2020

Revenues 1,193,770 1,939,589

Operating expenses:

Rental cost (1,167,613) (1,955,717)

Depreciation and amortization (196,513) (328,264)

Other operating expenses (121,884) (250,578)

Pre-opening expense (83,321) (9,198)

Sales and marketing expenses (225,920) (203,962)

General and administrative expenses (113,109) (273,749)

Technology and product development expenses (48,608) (61,037)

Impairment of long-lived assets – (19,144)

Operating loss (763,198) (1,162,060)

Interest expenses (73,520) (84,729)

Interest income 20,477 10,251

Loss before income taxes (816,241) (1,236,538)

Income tax benefit – 2,167

Net loss (816,241) (1,234,371)

Income/(Loss) attributable to non-controlling interest 59 (4,431)

Net loss attributable to Phoenix Tree Holdings Limited (816,300) (1,229,940)

Accretion and modification of redeemable convertible preferred shares (79,168) (28,692)

Net loss attributable to ordinary shareholders of Phoenix Tree Holdings Limited (895,468) (1,258,632)

Net loss (816,241) (1,234,371)

Other comprehensive loss:

Foreign currency translation adjustment 7,853 140,976

Comprehensive loss (808,388) (1,093,395)

Comprehensive income/(loss) attributable to non-controlling interest 59 (4,431)

Comprehensive loss attributable to ordinary shareholders of Phoenix Tree Holdings Limited (808,447) (1,088,964)

Net loss per share

—Basic and diluted (3.95) (0.87)

Weighted average number of shares outstanding used in computing net loss per share

—Basic and diluted 226,458,958 1,453,806,974

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(RMB’000) As of December 31, 2019 As of March 31, 2020ASSETSCurrent assets

Cash 685,277 826,396 Restricted cash 1,417,245 1,384,255 Accounts receivable, net 2,837 2,984 Advance to landlords 223,146 130,147 Prepayments and other current assets 636,618 625,712

Total current assets 2,965,123 2,969,494 Non-current assets

Restricted cash 1,353,376 2,015,704 Property and equipment, net 3,167,537 2,881,057 Intangible asset, net 152,846 138,128 Goodwill 347,455 347,455 Deposits to landlords 608,475 577,093 Other non-current assets 410,703 371,436

Total non-current assets 6,040,392 6,330,873 Total assets 9,005,515 9,300,367 LIABILITIESCurrent liabilities

Short-term borrowings and current portion of long-term borrowings 4,554,362 4,654,298 Accounts payable 726,455 651,639 Rental payable 553,410 978,020 Advance from residents 976,348 906,061 Amount due to related parties 11,343 46,060 Deposits from residents 605,356 569,772 Accrued expenses and other current liabilities 495,484 544,820

Total current liabilities 7,922,758 8,350,670 Non-current liabilities

Long -term borrowings, excluding current portion 669,250 665,250 Deferred income tax liabilities 7,042 4,875Other non-current liabilities 27,419 6,074

Total non-current liabilities 703,711 676,199 Total liabilities 8,626,469 9,026,869 MEZZANINE EQUITYTotal mezzanine equity 6,106,203 –SHAREHOLDERS’ (DEFICIT)/EQUITY

Ordinary shares 35 248 Additional paid-in capital – 7,122,529Accumulated other comprehensive (loss)/income (57,852) 83,124 Accumulated deficit (5,663,670) (6,922,302)

Total shareholders’ (deficit)/equity attributable to ordinary shareholders (5,721,487) 283,599 Non-controlling interest (5,670) (10,101)

Total shareholders' (deficit)/equity (5,727,157) 273,498 Total liabilities, mezzanine equity and shareholders’ (deficit)/equity 9,005,515 9,300,367

Condensed Balance Sheet

15

Condensed Cash Flow Statement

(RMB’000) 1Q2019 1Q2020

Net cash used in operating activities (633,130) (121,440)

Net cash used in investing activities (641,692) (178,196)

Net cash provided by financing activities 2,475,836 1,017,506

Effect of foreign currency exchange rate changes on cash and restricted cash (71,886) 52,587

Net increase in cash and restricted cash 1,129,128 770,457

Cash and restricted cash at the beginning of the period 2,465,534 3,455,898

Cash and restricted cash at the end of the period 3,594,662 4,226,355

16

Non-GAAP Reconciliation

(RMB’000) 1Q2019 1Q2020

Net Loss (816,241) (1,234,371)

Add:

Depreciation and amortization 196,513 328,264

Interest expenses 73,520 84,729

Income tax benefit – (2,167)

Subtract:

Interest income 20,477 10,251

EBITDA (566,685) (833,796)

Add:

Incentives for apartment sourcing 15,628 30,008

Share-based compensation 1,481 206,301

Impairment of long-lived assets – 19,144

Adjusted EBITDA (549,576) (578,343)

Net Loss (816,241) (1,234,371)

Add:

Incentives for apartment sourcing 15,628 30,008

Share-based compensation 1,481 206,301

Impairment of long-lived assets – 19,144

Adjusted Net Loss (799,132) (978,918)

17

Non-GAAP Reconciliation (Cont’d)

(RMB’000) 1Q2019 1Q2020

Net loss attributable to ordinary shareholders of Phoenix Tree Holdings Limited (895,468) (1,258,632)

Add:

Incentives for apartment sourcing 15,628 30,008

Share-based compensation 1,481 206,301

Impairment of long-lived assets – 19,144

Adjusted net loss attributable to ordinary shareholders of Phoenix Tree Holdings Limited (878,359) (1,003,179)

Adjusted net loss per share

—Basic and diluted (3.88) (0.69)

Weighted average number of shares outstanding used in computing adjusted net loss per share

—Basic and diluted 226,458,958 1,453,806,974

18

Share-based compensation expenses breakdown:

(RMB’000) 1Q2019 1Q2020

Other operating expenses – 14,320

Sales and marketing expenses – 18,771

General and administrative expenses 1,481 140,943

Technology and product development expenses – 32,267

Total 1,481 206,301

Thank you