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Qijia.com has a huge loss to go public in Hong Kong today. Is the Internet home decoration still in the air?

via:博客园     time:2018/7/12 9:01:41     readed:222


Focus · Internet company listed in Hong Kong

Editor's note: Following Xiaomi, today, two other Internet companies have landed on the Hong Kong Stock Exchange, namely Yingke and Qijia. Recently, the IPO of Hong Kong stocks has been broken, which has caused a lot of shadow for investors. I hope that Xiaomi’s low opening and high walking in the near future will make a good start for the follow-up “little brothers”.

Our reporter Liu Sihui

The companies that have recently been listed in Hong Kong are not too close. On July 12th, the Internet home improvement company Qijia.com entered the Hong Kong stock market.

Although from the prospectus, the company has been losing money for the past three years (2015 to 2017) and the cash flow is negative, but this does not stop the company's listing, after all, “the first share of the connected home improvement industry” This title is still attractive.

The first stock means a groundbreaking valuation, and it also provides a demonstration effect for the followers. According to the Securities Daily, there are still many latecomers. After all, the famous connected home improvement brand and the Tuban rabbit are currently on the market. There are live networks, building blocks, love space and so on.

Facing the status quo of the industry, some insiders admitted that the home improvement industry is in a state of online and offline integration. Although the current penetration rate of Internet home improvement is not high, this trend will be further strengthened.

Qijia Net shocked Hong Kong stocks

Qijiawang stock officially began trading on the Hong Kong Stock Exchange on July 12. The company's pricing is 4.85 Hong Kong dollars per share, which is lower than the offer range. It plans to raise HK$2.18 billion. According to the data, Qijia.com was originally scheduled to go on July 5th and was postponed until July 12.

For Qijia.com's practice of lowering the issue price, some senior Internet home improvement professionals said in exchanges with the "Securities Daily" reporters that this also reflects the fact that the capital market is not aligned with the home network, and the confidence of Qijia.com itself is also Not enough.

Qijia.com was established in 2005. In December 2010, it completed the A round of financing. The prospectus shows that this company has already been “station team”. At present, Baidu holds 14.393% of Qijia.com and is the second largest shareholder.

In fact, from the perspective of financial statements, Qijia’s performance is not very good. According to the data, the revenues of Qijia.com in 2015, 2016 and 2017 were 141 million yuan, 300 million yuan and 479 million yuan respectively. The annual losses were 348 million yuan, 410 million yuan, and 856 million yuan respectively. After adjustment, Qijiawang's losses from continuing operations in 2015, 2016 and 2017 were 163 million yuan, 152 million yuan and 89.391 million yuan respectively.

From 2015 to 2017, the net cash flow generated by Qijiawang's business activities during the same period was -95.602 million yuan, -101 million yuan, and -119 million yuan respectively.

According to the above-mentioned insiders, in fact, Qijia.com's large-scale business comes from the companies it acquired, its own self-operated business is not good, and the platform's ability to acquire customers is not strong.

Regardless of how the industry questioned, Qijia.com will eventually hit Hong Kong stocks. Deng Huajin, the founder of Qijia.com, issued an internal letter to all employees. In the internal letter, Deng Huajin said that in the future, Qijia.com will be integrated in the supply chain. More capital and more energy will be invested in product and technology upgrades, and more cities will be expanded to meet the needs of a wider range of users.

This statement is consistent with the judgment of people in the industry. “At present, many Internet home improvement companies are expanding very quickly. The big reason is that this industry is very good, the market is very large, and with the rising demand for old houses and partial renovations, the future big plates can still Larger, and the user just needs to be obvious, the customer unit price is high, and the cash flow is sufficient, which provides the driving company with the power and realization possibility of rapid expansion in the country. ”

However, the decoration is a slow industry after all, and the process is very long. Although it is very convenient to get customers at the front end through the Internet, it can't be lazy in the construction and delivery of the back end. It is necessary to test the operation, supply chain and delivery ability of each decoration company.

Internet home improvement racing continues

The so-called Internet home improvement is in the context of "Internet +", using Internet thinking and Internet tools to transform the problems in the decoration, through de-intermediation (decoration company), de-channelization (to achieve F2C collection) and standardization ( Partially personalized), optimize and integrate the decoration industry chain, improve operational and control efficiency, reduce product and service costs, and improve the user experience of traditional decoration.

In the interview with the "Securities Daily" reporter, the Internet home improvement industry began in 2008, and then ushered in the capital turmoil in 2015. After that, many companies began to try to do their own business, and then they ushered in losses as well. The wave of bankruptcies, the number of Internet home improvement companies that can survive and be positioned in the platform strategy are few.

In the case of Tuba rabbits, the company has been in a positive cash flow state from 2008 to 2018, so it does not rely on capital, nor is it optimistic about the mode of burning money. This is also the premise that it can be rooted in the industry for a long time, “ The Internet home improvement industry involves a wide range of industries, and the chain is long and the industry is deep. Every link lacks uniform standards. The location of the Tuba Rabbit is a platform, and strives to linearize, standardize, standardize and implement all processes. In the end, huge network collaboration will be promoted to promote industry iteration and upgrade. It is very difficult to achieve this goal, but once it is realized, it will form strong industry barriers. ” Yang Wei added.

For the term platformization, people in the industry also agreed with the reporters, “In the long run, the platform model may be more effective. After all, a few large-scale decoration companies can not meet the needs of users nationwide, and The larger the volume, the higher the requirements for operational control and control. The localization and regionalization of the decoration industry are irreversible. In the future, these localized and regionalized head decoration companies are connected with strong traffic capabilities and brand endorsement capabilities. There are also platform-type enterprises with strong management and control mechanisms that can reduce systemic risks. ”

In addition to the above-mentioned companies, today, the surviving Internet home improvement brands include live network, building blocks, and love space.

According to public information, there is a network affiliated to Qingdao Youli Information Technology Co., Ltd., a brand of Haier, which was established on July 19, 2014 and is headquartered in Qingdao.

The building block home was founded in early 2015 and is positioned to provide young people with Internet full-package repair services. At present, it has covered more than 50 cities across the country. It has set up branches in first- and second-tier cities such as Beijing, Chengdu, Wuhan, Xi'an and Shijiazhuang, and has opened more than 60 offline experience stores with more than 700 employees. According to the building block, the management and core business divisions are all from Tencent, Alibaba, OPPO, and American Home Depot.

Another love space was founded in 2014 by Chen Hao, who has more than 10 years of experience in home improvement. In 2016, Ai Space Branch covered 24 cities across the country and completed the lead by Gome Capital in June 2017. 216 million yuan C round of financing;

With so many up-and-coming talents, it seems that the competitive race in the Internet home improvement industry is far from over.

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