Supported by Tencent, the annual revenue is 46 billion, but it still loses money! The intermediary giant is going public

 Supported by Tencent, the annual revenue is 46 billion, but it still loses money! The intermediary giant is going public

Through repeated high financing and valuation, the public had an incomparable curiosity about the playing methods and strength of shells. This time, all shells answered.

Whats your fortune?

The annual income is 46 billion yuan, and the loss is 3.1 billion yuan in three years

Founded in 2018, shell has installed the chain family and become the main character of this listing.

According to the prospectus, total shell income increased by 12.3% from 25.5 billion yuan in 2017 to 28.6 billion yuan in 2018 and 46 billion yuan in 2019.

In 2019, the second-hand housing transactions and services will achieve an income of 24.57 billion yuan.

According to the prospectus, in 2018, the gross transaction volume (GTV) reached RMB 1153.1 billion, and increased to RMB 2127.7 billion in 2019, with a year-on-year increase of 84.5%.

According to the data of the second quarter of this year, the GTV of shell reached 999.2 billion yuan in a single quarter, with revenue no less than 19.7 billion yuan, a year-on-year increase of 72.4%, and a net profit of no less than 2.7 billion yuan, a year-on-year increase of 589.3%.

As of June 30, 2020, shell has covered 103 cities in China, connecting more than 456000 brokers and 42000 brokerage stores with 265 new brokerage brands.

In terms of cash flow, the cash and cash equivalents of shell in 2017, 2018 and 2019 were 5.24 billion yuan, 9.12 billion yuan and 24.32 billion yuan respectively.

But the shell profit situation is not optimistic. In 2017, its net operating loss was 537 million yuan, which reached 428 million yuan in 2018 and 2.18 billion yuan in 2019.

In the first quarter of 2020, the impact of the epidemic is obvious. The shells revenue decreases by 12.7%, from 8.2 billion yuan in the first quarter of 2019 to 7.1 billion yuan, and the net operating loss reaches 1.23 billion yuan.

At present, Zuohui still firmly controls the shell. According to the prospectus, Zuohui shares 28.9%, and Zuohui and the shell management team still maintain independent decision-making power. Among shells institutional investors, Tencent held 12.3%, Softbank held 10.2%, Hillard capital held 5.3%, and others accounted for 34.8%.

Shell is extremely interested in its own technical capabilities, such as the ACN (agent cooperation network) system. Zuo Hui said in a letter to investors that ACN can analyze personal characteristics, and match their purchasing power and special relationship with appropriate housing resources, so that multiple agents can cooperate effectively in a single customer order.

According to the prospectus, shell will spend about 30% of the fund raised to improve the application of big data, artificial intelligence and virtual reality.

However, Shell did not disclose the specific funds raised this time.

Shell, on the other hand, will spend 30% to expand its new housing business.

As a matter of fact, chain family started with second-hand housing has already set foot in the new house business. At present, the new house business has occupied a higher and higher share in the shell business. The GTV of shell new house transaction increased from RMB 280.8 billion in 2018 to RMB 747.6 billion in 2019, and the revenue of new house transaction and service reached RMB 20.27 billion. It can be predicted that the new house will be the next starting point of shells.

Another 25% of the proceeds will be used to expand new business areas.

Listing or unrelated gambling

Shell IPO is a cliche. As early as 2018, news of its landing in the capital market has been reported, and the Hong Kong Stock Exchange and NASDAQ are the rumor sites. However, in the past, after the news of each listing, shells response was either denied or did not have a specific timetable.

Prior to the official announcement, on July 10, it was reported that shell planned to list in the US stock IPO within a few months, raising 2-3 billion US dollars. At that time, the shell side still said that there was no specific timetable.

In April 2018, shell house hunting was born, and seven months later, news of its listing broke out. In November of that year, Zhang Haiming, then the COO of large and medium-sized shellfish in South China, publicly disclosed that the main body of listing in the future is shell, not chain.

Shells capital operation is relatively low-key, but its financing ability is strong.

In 2016, chain B and B + rounds raised 6 billion yuan, and in January 2017, round C introduced rongchuang China 2.6 billion yuan. In the d-round financing of shell house search exposure in 2019, Tencent, as a strategic investor, led the investment of US $800 million, followed by Huaxing capital and Hillard capital, among which country garden was introduced. Subsequently, Softbank, Tencent, hillhood and Sequoia together invested more than $2.4 billion.

In November of the same year, shell housing confirmed that it had completed the D + round of more than $2.4 billion in financing, and continued to include top investors such as Tencent capital, hillhood capital, Sequoia Capital and Softbank. Softbank is said to have invested 1 billion US dollars. After the current round of financing, the value of shell to find a house has reached 14 billion US dollars.

In fact, in April 2016, when the chain family completed the round B financing, there was a market rumor that the chain family signed a bet agreement with the investors. The agreement roughly contains the commitment (chain) to complete the IPO within 5 years after the delivery of round B, otherwise the investor has the right to buy back the basic investment price + 8% per year (simple interest). That is to say, the listing plan of shell housing was actually launched at that time.

In 2019, the capital structure of Lianjia has changed. 22 investors have withdrawn their capital from the chain, and four famous directors have also withdrawn from the chain management. They are sun Hongbin, chairman of the board of directors of rongchuang China, Liu Xiao, vice president of Vanke Group, Bao fan, founder of Huaxing capital, and Zhang Minggui, President of new hope real estate. However, the shell side made a clear explanation: the purpose of the capital reduction is to meet the needs of the enterprise development, and the shares of the original investor in the chain family are translated to shell for housing through the agreement mirror image.

According to the previous gambling agreement time calculation, 2021 is the deadline. If it can not be listed at this time, shell will have to return 6 billion yuan of principal and interest to investors to find a house.

Now, shell successfully completed the most important IPO link in the bet agreement ahead of schedule. Shells housing search side told the daily economic news (micro signal: you put your) reporter: everything is subject to the prospectus.

However, a person close to the shell told the reporter: Im afraid that the listing of shell at this time has little to do with the gambling agreement. According to the 8% interest rate agreement at that time, the shells financing valuation has exceeded this rate of return, so shells current listing is more to seize the window period at this time.

Reporter Wang Jiafei editor Chen Mengyu he Xiaotao Du Hengfeng Xiao Yong

Source: Wang Fengzhi, editor in charge of daily economic news_ NT2541