The long-rental apartment service provider “Qingke Apartment” officially submitted the F-1 prospectus to the US Securities and Exchange Commission on October 7th, and wanted to raise up to 100 million in the form of issuing ADS (American Depositary Shares). Dollar.
Editor’s note: This article is from WeChat public account “IPO knows early” (ID: ipozaozhidao), author Uncle C.
According to the IPO, I knew that the long-rental apartment service provider “Qingke Apartment” officially submitted the F-1 prospectus to the US Securities and Exchange Commission on October 7th, and wanted to issue ADS (US) Funds in the form of depository stocks are up to $100 million.
This also means that Tsing Ke Apartment has officially submitted a prospectus earlier than the eggshell apartment that was previously sent out to the US listing plan, or it will become a long-term rental apartment overseas. The first stock listed.
Qingke Apartment is expected to land on Nasdaq with “QK” as the transaction code, and Morgan Stanley and CICC will jointly act as the underwriters of this IPO.
The prospectus shows that the business model of Tsingk Apartment is not significantly different from other long-term rental apartments, that is, renting a house from the landlord and relocating it to a rented room by converting a relatively simple room into a standardized room with furniture. Demand for customers.
In addition to earning income through rent collection, Tsinghua Apartment also emphasizes in the prospectus that technology will be used in every step of the operation to improve operational efficiency and to pass professional and professional home service providers and e-commerce companies. As well as other types of third-party service companies, it provides users with a wide range of value-added services, and recently launched a member-based “Green Customer Preferred” platform.
As of June 30, 2019, Qingke Apartment has also entered into cooperation with 11 financial institutions. While providing tenants with instalment loans, they can also use the proceeds from instalment loans to purchase new apartments or conduct Renovation.
As of December 31, 2012, the first year of the establishment and operation of Qingke Apartment, the number of rooms available for rent was 940, all located in Shanghai; as of 2018On the 31st of the month, Qingke Apartment operated a total of 91,234 rooms covering 6 cities, with a compound annual growth rate of 114.4%.
According to the report of the consultation, the number of rooms and the total rental room is calculated. The Green Apartment is the third long-term rental apartment operator in China; the prospectus also quotes the data of the consultation, saying that about 80% of the domestic Tenants want to rent a room with a monthly rent of less than 2,000 yuan, and in the case of the number of such rooms, it is actually the first in the industry. In addition, the average monthly occupancy rate of Qingke Apartment in 2017 and 2018 was 91.6% and 92.4%, which was also the highest in the industry.
It is worth noting that Tsinghua Apartment also quoted the data of the consultation to indicate that the contract period between the contract and the landlord is the highest among the domestic mainstream long-term rental apartment operators. Among them, the average contract period between Qingke Apartment and the landlord is 63.3 months, the rental fee is fixed in the first three years, and the remaining time is increased by about 5% each year (excluding compound interest).
As of the nine months ended June 30, 2019, the average contract period between Tsinghua Apartment and tenants was 11.7 months, of which 68.3% were longer than 12 months. However, during the same period, 47.3% of tenants had already withdrawn their leases before the contract expired. If the contract was stopped after more than one week, the deposit would be deducted, and only 5.1% of the tenants chose to renew the lease. In 2018, the average length of stay for each tenant is 8.5 months. For the nine months ended June 30, 2019, the average length of stay for each tenant is 7.7 months.
Financial data shows that Qingke Apartment’s operating income in 2017 and 2018 was 523 million yuan and 890 million yuan, up 70.3% year-on-year; net loss was 245 million yuan and 498 million yuan respectively; adjusted EBITDA It is negative for 64.20 million yuan and negative for 221 million yuan.
As of June 30, 2019, the revenue of Qingke Apartment was 890 million yuan, a year-on-year increase of 51.4%; the net loss was 373 million yuan. Slightly higher than the 324 million yuan in the same period of 2018.
In terms of income structure, rental income accounted for 97.35% and 89.55% of 2017 and 2018, respectively; and for the nine months ended June 30, 2019, rental income accounted for 88.29% of total revenue. In other words, the proportion of value-added services is close to 12%. Value-added services include the broadband network described above, public affairs, green customer preferences, and landlord or tenant compensation.
In terms of operational data, as of June 30, 2019, Qingke Apartment operated a total of 96,854 rooms, an increase of more than 30% year-on-year; of which 93,331 were rented for 3,523 rentals, and the occupancy rate was also higher than the same period in 2018. .
In addition, because Tsingko Apartments prefer a decentralized mode of operation, and more choices to purchase apartments in relatively cheap and convenient locations (such as close to subway stations). Therefore, in terms of customer unit price, the average pre-tax monthly rent of Qingke Apartment was 1149 yuan as of June 30, 2019, which was slightly lower than the 1279 yuan in the same period of 2018.
In the current shareholder structure, Jin Kejie, founder and CEO of Qingke Apartment, directly holds 30.3% of the shares, and Kaixin Capital and its related entities hold a total of 28.1% of the shares, making it the largest institutional investor. In addition, Newport Ventures, Safford Investment Fund and Morgan Stanley-managed private equity funds hold 9.3%, 8.9% and 8.9% respectively.
It is worth noting that Dachen Venture Capital, as a past investor of Qingke Apartment, disclosed that it did not hold more than 5% of the shares, but Xiao Bing, the president of Dachen Ventures, is still a director of the company.The list. At the same time, CFO Chen Chen and former Shanghai Jiaotong University Antai College of Economics and Management Zhou Lin will also serve as independent directors of the company since the entry into force of the F-1 document.
Tsinger Apartment said in the prospectus that the funds raised by the IPO will be used to expand the number of apartments and rooms covered, the second is to invest in technology and infrastructure, and the third is for general operations. use.