2020 “Yinhua Fund Cup” Sina bank financial planner competition, hot registration. From now on to September 7, you will receive free gift packages worth more than 700 yuan from Guan Qingyou, Luo Yuanshang and Chen Kaifeng.
China’s online and offline integrated real estate trading service platform shell Xiaofang (Stock Code: BEKE) was listed on the New York Stock Exchange of the United States tonight with an offering price of $20.
in this transaction, shell will issue 106 million ADSS and exercise 15.9 million ADSS. The IPO raised about US $2.44 billion, with a total market value of US $23.3 billion after dilution.
in the listing process, Tencent has subscribed for at least US $200 million, Hillhead and Sequoia have respectively subscribed for us $100 million; fidelity has subscribed for at least US $200 million, and entities associated with fidelity intend to subscribe for us $200 million.
Liu Xing, partner of Sequoia China fund, said that shell listing was a milestone. Shell is the first company to digitize and restructure complex transactions that rely on heavy services. What’s more, it also realizes platform.
“the success of seashells is not only the best practice of enabling science and technology, but also the victory of Zuo Hui’s value of” doing the difficult and right thing “. The practice of such values requires long-term belief, perseverance and toughness in implementation.”
Liu Xing said, “Sequoia China is optimistic about the development prospect of shells. When the company went public, we participated in the subscription at the IPO price and made additional investment.”
it is reported that the financing amount of shell house will be used for R & D investment, expansion of new house transaction services, development of diversified service products and general enterprise purposes.
shell house search is a combination of a real estate brokerage brand “Lianjia” with a history of more than 18 years and a comprehensive online + offline real estate transaction and service platform “shell” with a history of 2 years.
the chain family completed the b-round financing in 2016. The investors include Huaxing capital, Baidu, Tencent, new hope group, Taiwan asset, source capital, Jingwei China, Zhiyi capital, etc.
in April 2018, lianjia.com was upgraded to shell house search, positioning itself as a technology driven quality living service platform, opening up high-quality resources and online capabilities, aggregating and empowering high-quality service providers in the industry, creating a quality living service ecosystem and providing consumers with all-round residential services including second-hand housing, new housing and leasing.
Huang Xuan’s image of “warm man” has been deeply rooted in the hearts of the people, which is very consistent with the brand positioning of shell house search. After that, a large number of targeted building advertisements were launched, which had an impact on the mainstream cities in China.
real houses on shell housing platform should meet the following requirements: real existence. The real estate should exist in the real estate Dictionary of shell house search, and meet the various requirements of verification on the platform of shell house search.
truly available for sale or rental. The intention of the owner can be verified by an effective agency agreement with clear brokerage service terms, or through online and offline communication with the owner.
according to the prospectus, in the first half of 2020, the sales revenue of shell house hunting was 27.26 billion yuan, an increase of 39% compared with 19.61 billion yuan in the same period of last year; the net profit was 1.61 billion yuan, an increase of 188.6% compared with 560 million yuan in the same period of last year.
affected by the epidemic situation, in the first half of 2020, the trading income of shell house inventory was 12.56 billion yuan, which was basically the same as that of 12.64 billion yuan in the same period of last year.
the impact of the new house transaction was small, with revenue of 13.98 billion yuan, an increase of 115.7% compared with 6.48 billion yuan of the same period of last year; the income of other new businesses was 730 million yuan, an increase of 49% compared with 490 million yuan in the same period of last year.
in terms of marginal contribution, in the first half of 2020, the marginal contribution of shell’s housing stock transaction was 4.85 billion, which was the same as that of the same period of last year; the marginal contribution of new housing transaction was 3.5 billion, 74.1% higher than that of 2.01 billion yuan in the same period of last year; the marginal contribution of other emerging businesses was 620 million yuan, an increase of 55% compared with 400 million yuan in the same period of last year. It can be seen that the stock of housing transactions is still the basic shell Market, while the contribution of new housing and other emerging businesses is increasing.
in the second quarter of 2020, the revenue of shell house hunting was 20.14 billion yuan, 76% higher than that of 11.45 billion yuan in the same period of last year, and 183% higher than that of 7.119 billion yuan in the previous quarter.
the net profit of shell looking for houses in the second quarter of 2020 is 2.839 billion yuan, an increase of 626% compared with 390 million yuan in the same period of last year, and a loss of 1.23 billion yuan in the last quarter.
in a letter to shareholders, Zuo Hui, chairman of shell house, said that the real estate service industry, as a “pre industrial” industry, has a lot of opportunities and space to be deeply reconstructed by the Internet and big data.
it is this combination that has enabled Zuohui team to thoroughly transform the industry from standardization to online in the past 18 years, and formed today’s business model shell.
1. The so-called “pre industrialization” refers to the lack of basic norms and standards in the industry, the lack of infrastructure to support the development of the industry, the nonstandard behavior of employees and the massive loss of consumers. Through the construction of a large number of basic data standards and basic service specifications, we have basically completed the transformation of “material” standardization, “human” professionalization and “service” standardization.
2. The second spindle is online. Because of the good data base, shell house search was first proposed in China, and it can display real and high-density information online, which helps shellfish to gain online entrance advantages through data quality in this extremely low-frequency industry.
at the same time, shell’s house finding has made the disordered offline data electronic, so as to promote the online process of the whole process. This online process not only covers the transaction process, but also penetrates into the mortgage and property rights. At the same time, in the face of the new online operation mode, the traditional brokers will be at a loss. Through a large number of education and training, as well as the recruitment of college graduates, the supply chain of the industry “people” is reconstructed.
3. Online has created a large number of interaction scenarios, interaction has brought valuable data, data has brought efficiency and experience improvement to consumers and brokers, thus creating more meaningful interaction and forming a virtuous circle. And the company through the data to bring rapid iteration of knowledge, creating more value.
Zuo Hui said that the uniqueness of his team lies in the firm choice of long-term interests, the choice to do the “right” thing rather than the quick success, and has a natural aversion to taking shortcuts. We also realize that the “right” things are often difficult and need to transform the industry infrastructure for a long time, so as to improve efficiency and consumer experience, and then obtain long-term business returns.
doing difficult and correct things is the way to success that we understand and believe in. The most difficult thing is that a “right” decision often leads to a decline rather than an increase in revenue. Of course, this decline is periodic. After this stage, it will naturally enter a long-term growth channel. However, it is this stage of decline that makes organizations face a lot of tests, which is called “no output period”.
Zuo Hui pointed out that she especially hopes to communicate with investors about Shell’s belief in housing search. Shell’s housing search not only has confidence in the short-term financial performance of enterprises, but also pays more attention to the cultivation and construction of long-term capabilities, even if the financial returns of these capabilities are very long, and even more interested in the more difficult and long-term returns.
prior to this, Tencent, as a strategic investor, led the investment of $800 million in the d-round financing of shell’s housing search exposure, and shell naturally settled in the “Jiugongge” of wechat.
before IPO, Zuohui held 28.9% shares (class B common shares). In addition, some shareholders granted the voting rights of class a common shares held by them to Zuohui agent, so the voting equity of Zuohui accounted for 46.8%.
Huaxing new economic fund under Huaxing capital is also an investor. In 2016, Huaxing new economic fund became the leading investor of chain family B, and continued to raise money in chain family round C and shell D. in addition, Huaxing investment bank team also acted as the lead underwriter in the shell IPO.
Bao fan, a shell investor, chairman of Huaxing capital and founding partner of the fund, said today that in order to be a leader in the industry, three core conditions should be met in essence:
1. Although the investment logic of traditional industries changed by the Internet was prevailing at that time, offline residential service companies with a large number of housing resources and data had more reform power. With the popularization of big data, VR and other new technologies, such companies will usher in the best window period of building a super platform.
2. The real estate industry is bound to switch from “driven by manufacturing” to “driven by downstream services”. This means that those who can reach the end users first, understand their needs and provide good services are likely to occupy more market shares.
3. In China, the growth contradictions of many industries are mainly concentrated on two issues productivity and production relations. We firmly believe that the new technological change can improve the productivity of the residential service industry, but as an organization that can not do without “people”, how to protect the interests of consumers, service providers and platforms is very important.
Bao Fan said that Zuo Hui and his first meeting were in a cafe in Shunyi. Zuo Hui didn’t speak much, and his thinking was extremely meticulous. He answered all the questions that Bao fan put forward. He thought about the future of the industry very thoroughly at that time. Combined with the huge strength of the chain family at that time, Bao fan basically determined that the chain master was the “super platform” we were looking for.
after IPO, Zuohui held shares (class B common shares) In addition, some shareholders granted the voting rights of class a common shares held by them to Zuohui agent, so Zuohui’s voting equity accounted for 42.4%, with 82.8% of the voting rights;
yesterday morning, after counting all the subscription data, friends of the investment bank told us that shell IPO project has set a number of records in terms of quantity and quality, which is a very rare successful case Very happy and very proud. Combined with more than 100 recent water test and road show meetings, as well as more than 10 years of experience in this organization and industry, I have some thoughts and feelings to communicate with you:
1. To persist in doing difficult and correct things, the reflection arc is generally relatively long, so we need to take five or even ten years as the time span to realize the joy and blow a little calf!
and we’ll make the time scale longer. Although it is only two years and four months since the birth of the shell, the mother chain that it has transformed has a history of nearly 19 years. This kind of old and new organization superposition is not the key. The most important thing is that we fully understand the difficult choices made in the past ten years and the significance of those insistences.
from “no price difference”, to the construction of “real estate dictionary”, to the implementation of “reassuring service commitment”, to the recruitment and training of a new generation of brokers, to platform operation, to VR house viewing, to the establishment of Huaqiao school and the cultivation of China’s first generation of professional brokers, etc.
we don’t believe that there is any shortcut. All the achievements made today, big or small, are the biggest praise for the previous choice of “doing the difficult and right thing”!
2. Vertical and horizontal may not be the only path of industrial Internet