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Qeeka Residence (1739.HK) reviews 1H 2022 income of RMB 432 million, with ample money move and strong enterprise fundamentals

Qeeka Residence (1739.HK) reviews 1H 2022 income of RMB 432 million, with ample money move and strong enterprise fundamentals

SHANGHAI, Sept. 7, 2022 /PRNewswire/ — On August 22, Qeeka Residence (01739.HK, home operator of Jia.com) introduced its interim outcomes for 2022, reporting complete income of RMB 432 million and gross revenue of RMB 245 million for the primary half of 2022, with gross margin remaining flat at 57% in comparison with the identical interval final 12 months and an adjusted web lack of RMB 20.68 million attributable to the dad or mum firm. The corporate had ample money reserves through the reporting interval, with RMB 720 million in financial funds as of June 30, 2022.

The inside design and development business was tremendously impacted by the pandemic within the second quarter, with person demand briefly suppressed and enterprise actions restricted. In opposition to this backdrop, Qeeka Residence’s enterprise was inevitably impacted by exterior components, however enterprise fundamentals remained strong whereas the agency’s SaaS-enabled options acted as an business “stabilizer”, enabling it and its companions to prevail.

Steady efficiency regardless of a number of shocks, backed by streamlined operations  

Qeeka Residence’s interim outcomes for 2022 confirmed that income from SaaS and advertising and marketing providers decreased by 14.6% to RMB 240 million within the first half of the reporting 12 months, whereas the variety of lively paying retailers decreased by 4% YoY to five,451, however had elevated by 29% in comparison with the primary half of 2020 simply because the pandemic was taking maintain. Shopper expectations when it comes to house enchancment had been briefly affected by pandemic prevention measures, with the variety of gross sales leads having decreased by 11% to 344,034 within the first half of the 12 months, but, up 4% in comparison with the identical interval in 2020. The conversion charge of gross sales results in really useful customers elevated to 85% within the first half of the 12 months, up from 82% a 12 months earlier. The corporate’s streamlined operations are cited as the important thing motive for the improved efficiency.

Qeeka Residence’s general gross revenue margin remained at 56.7%, mainly unchanged from 56.6% in the identical interval final 12 months. The margin of the SaaS and Prolonged Service Enterprise, the agency’s core income driver, maintained a secure degree at 91.1%, up 3.6 proportion factors from 87.5% in the identical interval final 12 months. Gross revenue margin remained at a persistently excessive degree, indicating that the pandemic didn’t have a cloth influence on the profitability of Qeeka Residence’s core enterprise. The Firm’s enterprise mannequin remained wholesome.

Because of the influence of macro coverage regulation over the upstream actual property business, home inside refurbishing tasks progressed slowly, with slower return of funds, an extended accounting interval and elevated danger of unhealthy money owed. Income for the primary half of the 12 months stood at RMB 145 million, down 19% in comparison with the identical interval final 12 months. The inside design and development enterprise, negatively affected by pandemic prevention measures, reported income of RMB 23 million, down 11% in comparison with the identical interval final 12 months, because the supply and acceptance of a number of tasks had been delayed.

Regardless of the strain, Qeeka Residence’s money reserves remained sturdy. As of June 30, 2022, Qeeka Residence had money or money equivalents available of RMB 720 million, a rise of 26.4% from the identical interval final 12 months. The ample money move reserve supplied sturdy backing for the corporate to stay on track when it comes to its core technique whereas actively exploring and planning new companies. Within the first half of 2022, Qeeka Residence nonetheless aggressively expanded into some new and novel companies together with sensible house, mushy furnishings and new retail to hedge in opposition to the hostile influence on the corporate because of the financial surroundings and the pandemic.

Analysts commented that the inside design and development business is below strain on account of a number of exterior components. Though Qeeka Residence’s efficiency has been affected to a sure extent, the precise influence continues to be inside a suitable vary. Total efficiency stays strong and all companies have returned to stability, demonstrating the corporate’s wonderful administration of danger.

Qeeka Residence does its greatest to stabilize its fundamentals and experience by the tough patches in live performance with its companions 

As a digital ecosystem that empowers and connects customers, retailers and makers of house enchancment items and supplies, all of Qeeka Residence’s stakeholders have been affected by the pandemic to various levels.

To stabilize the business and retailers, Qeeka Residence has launched the Ivy Program, a collection of empowerment initiatives for the platform’s retailers to enhance their operational capabilities and status amongst consumers, serving to them cut back prices and improve revenues in an surroundings stuffed with uncertainties. Qeeka Residence’s 2022 interim outcomes reported a 4.7% lower in common income per gross sales lead generated by SaaS and advertising and marketing providers to RMB 697 within the first half of 2022 from RMB 731 within the first half of 2021. In a typically tough interval for the business, concessions and help supplied to retailers has performed an vital function in facilitating the restoration of the business.

When it comes to the availability chain service enterprise, the Firm’s provide chain suffered a chronic logistics disruption because of the pandemic. Because of this, income from the enterprise declined to RMB 15.83 million within the first half of 2022. In the meantime, Qeeka Residence’s platform sourced house enchancment items and supplies from upstream constructing materials producers and factories by the mannequin of collective procurement, which helped companion retailers cut back prices and improve effectivity whereas guaranteeing the standard of supplies.

In the identical interval, along with the Qijia Bao client safety plan, Qeeka Residence has additional raised the edge of service provider auditing, strictly checking their {qualifications} and bettering the general service high quality of the platform. The corporate additionally enhanced the buying expertise by sharing high quality unique content material and actual house enchancment instances by a number of channels together with quick video platforms, social media networks and advice engines, the place they distributed house enchancment recommendation and helped consumers keep away from pitfalls, enhancing their belief within the platform.

For the inside design and development business, the influence of exterior components such because the pandemic is non permanent, and the difficulties it’s dealing with at the moment will quickly be over. There can be new alternatives regardless of the challenges. In the long term, the business nonetheless has nice potential for development, whereas client confidence will progressively recuperate. Because of this Qeeka Residence’s enterprise is predicted to quickly get again on monitor and progressively resume development.

“Sooner or later, we are going to additional strengthen our core enterprise, enhance our core competencies and leverage our advantageous sources, and make each effort to stabilize the basics of our enterprise,” stated Mr. Deng Huajin, Chairman and CEO of Qeeka Residence. “We’ll proceed to streamline operations, optimize our general operational effectivity, and work with our companions to deal with difficulties and challenges. On the identical time, we are going to adapt to adjustments and modify our enterprise methods in a well timed method, to actively search potential enterprise alternatives within the house enchancment sector and discover new development factors.”

About Qeeka Residence 

Qeeka Residence (01739.HK, home operator of Jia.com) is likely one of the largest SaaS enabled resolution platforms in Inside Design & Development (IDC) Business in China. The corporate supplies advertising and marketing service, provide chain service and different revolutionary value-added providers to 1000’s of IDC service suppliers by the SaaS platform. Qeeka additionally operates a number of well-known IDC manufacturers in China and supplies shoppers with capital safety and unbiased inspection providers. Qeeka Residence was based in 2007 and listed on the primary board of HKSE on 2018.

SOURCE Qeeka Residence

Qeeka Residence (1739.HK) reviews 1H 2022 income of RMB 432 million, with ample money move and strong enterprise fundamentals