Thousands of layoffs in three years.
Editor’s note: This article is from WeChat public account “Wild Horse Finance” (ID: YMCJ8686 ), author Lei Chen. The original topic “The house is more than the first shell to find a house to go to the US IPO, the former Vanke star Xiao Li holding less than 1%”
Rolling the Yangtze River to the east, the waves are exhausted. The real estate brokerage industry is now a few happy.
Since 2019, Aiwuji, once known as the Internet property “unicorn”, has quietly stopped its foreign business; Pingan has a good house to stop the business of buying and selling houses; Anju has a 58-city backing and has always been the leader; The shells are looking for a fast-growing house, and it seems to be preparing for the listing.
October 9, a three-year-old company in the industry, Fang Duoduo officially submitted a listing prospectus to the US Securities and Exchange Commission under the code “DUO”, which will become the Chinese industry Internet SaaS (software service) One share.
Before the industry giant went public in the US, is the card that is displayed this time hard enough?
Before the giants go public in the US
There was a substantial step in the preparation of the housing for many years.
After the C round of financing in 2015, the room will no longer be financed. After that, it will be released several times soon. It has also been established in 2014 to build a VIE structure for overseas listing.
At the end of June last year, Fang Duoduo gave a plan to pay the balance on the Hong Kong Stock Exchange three months later. It is expected to be listed in Hong Kong in early 2019, raising up to 800 million US dollars. In July, he suddenly decided to go to the US to go public. The timetable was to apply for a US IPO in a confidential manner in August, with a valuation of 4 billion US dollars, and the US stock market was officially listed in December. Until the first two days, the listing plan of the house was finally settled.
This listing, the company plans to raise $150 million to strengthen research and development capabilities, invest in technology, sales, marketing and branding, working capital, and include potential investments and acquisitions for complementary businesses, assets and technologies. Other general corporate uses.
In the industry, there are many competitors in the real estate brokerage market, but the business model similar to the multi-storey business model is mainly the security of 58 cities.The shells of the guest and the chain house, especially the latter, are very similar to the business of the house.
In terms of market sentiment, the room is far less than the two rivals. The Yiguan Qianfan Index shows that August 2019, Anjuke’s monthly activity index was 19.28 million, and the monthly index of shell-to-house search was 8.061 million, while the monthly living index of the house was only 218,000. It can be seen that the competition faced by the house is very intense.
On July 18 this year, Shell found a room to complete the D round of financing, the transaction amount of more than 1.2 billion US dollars, the value of over 10 billion yuan.
The rumor of listing of shells to find a house is getting more and more fierce. However, after all, there is a lot of room to “get ahead”, can it become the first listed company in China’s real estate brokerage industry? How is the strength?
Lack of high debt ratio
In the first half of this year, the revenue of Fang Duodu was 1.6 billion yuan, a year-on-year increase of 55.4%; in 2017 and 2018, the revenue was 1.8 billion yuan and 2.3 billion yuan respectively. In terms of profit, Family has started to achieve small profits in 2017. The net profit in 2018 was 104 million yuan, and the net profit in the first half of this year reached 100 million yuan.
At present, the majority of the income comes from the commission income from the housing transaction and innovation and other value-added services. It has two major products, mobile real estate APP and website (www.fangdd.com), which are bought for real estate agents and real estate. The company provides data on products and services, property lists and more.
Among them, trading commissions are the most important source of income for a large number of rooms, and the commission rate is higher than the market average. According to Frost & Sullivan data, the commission rate for the 2018 room is 2% to 4%, while the industry average is 1.6% to 1.7%.
In terms of housing, according to Frost & Sullivan, Fang Duodu has become China’s largest online real estate trading platform empowered by SaaS. As of June 30 this year, the company’s property database contains 131 million verified sales, rentals, and basic information about houses that are not currently listed on the market.
As of the end of last year, there were nearly 2 million real estate brokers in China, and the number of registered brokers in Fangduo was over 910,000, the penetration rate reached 45%, and the scale of merchants continued to grow. By June 30 this year, the house A lot has already had more than 1.07 million registered brokers.
With such achievements, more than 1,000 employees have contributed to the room. According to the prospectus, between 2016-2018 and the first half of 2019 (hereinafter referred to as the “Reporting Period”), the company has 2,754 employees, 1,402, 1,353 and 1,655 employees.
As an e-commerce platform, GMV (transactionTotal) is a core indicator of the competitiveness of the platform. In 2017, the closed-loop GMV created by each employee in the room was 34.6 million yuan, 84.5 million yuan in 2018, and 58.3 million yuan in the first half of 2019.
While the performance has grown steadily, it has also brought about high debt ratios and high receivables. During the reporting period, the asset-liability ratio of Houses was 57.92%, 73.52%, 70.51% and 70.3%, respectively. In the first half of 2019, the accounts receivable of the house was 1.852 billion yuan, accounting for 68.72% of the current assets, which was not improved compared with the previous year.
If the company’s ability to return money can be improved, you need to draw a question mark.
The founder clasps the “scepter”
In addition to a lot of financial indicators, Mustang Finance (WeChat public: ymcj8686) noticed that the room used a different form of the same shares, the voting rights of the unit B common stock is the unit A common stock 10 times.
At present, the three co-founders of the house hold all Class B shares, of which Chairman and CEO Duan Yi holds 19.8%, Chief Operating Officer Zeng Xi holds 9.7%, Chief Technology Officer Li Jiancheng holds 7.8% of the shares.
Duan Yi graduated from Suzhou University of Science and Technology in 2001 with a real estate professional, and co-founded a real estate marketing agency, Bo Sitang, and called Tongxi’s younger brother Zeng Xi to come to help. In 2008, Duan Yi went to the China Europe Business School for further study, and met with Li Jiancheng, then the general manager of Tencent Shenzhen R&D Center.
In 2011, Duan Yi and Zeng Xi left Bositang. After many exchanges with Li Jiancheng, they felt that the Internet and the traditional real estate industry combined with a broad market, so they created a lot of houses in a private house in Shenzhen. Make a “Taobao” in the real estate industry.
The room was built on the air, and there was almost no need to worry about money. From 2012 to 2015, there were a total of four rounds of financing, and the last was a $223 million Series C financing in September 2015, when the company’s valuation exceeded $1 billion.
In addition to the company’s three founders and several senior executives, Fangyuan Capital holds 8.2%, CDH Investment holds 7.7%, and Shanying Investment holds 5.2%.
It is worth noting that, at the invitation of Duan Yi, on November 11, 2014, Xiao Li, then vice president of Vanke, joined the room and bluntly asked for its listing, which made a sensation in the real estate circle. You should know that Xiao Li joined Vanke at the age of 30. He has served as the director of the General Manager’s Office, the director of the board of directors, and the executive vice president of Vanke. He is a well-known figure in the real estate industry.