Predators behind the fast expansion of the chain home 368 million valuation

Predators behind the fast expansion of the chain home |368 million valuation: transactions this year will reach a trillion

Currently HomeLink is the b + and b round of financing, raising funds totaling 7 billion yuan. Oriental IC data

Complete with b round of financing, in the past two years to a predator like a fierce trend sweeping the country real estate industry chain, first clear disclosures of its business model and internal data.

Surging News (www.thepaper.CN) project investment plan from the chain saw, chain the latest valuations reached 36.85 billion yuan.

As of market close on April 18, the current a-share listed companies in similar lines of market value of 18.74 billion yuan. This means that the chain home market value after this round of fundraising approaching seiren twice times. In fact, the HomeLink expansion is almost all done in one year, in 2015, just over a year, compared to the HomeLink operating income surge in 2014, nearly four times.

According to the investment plan, chain will be completed within 5 years listed. At present, the company has been set up listing, led by the Vice President for assets and mergers Dan Yigang, an accounting firm has selected UOB, law firm has also been confirmed that broker selection is ongoing and is expected to be released at the end of April.

Burning money expansion war

Despite the earlier chain home frequently in announced mergers and acquisitions across the country, investment plans disclosure of information display, HomeLink expansion cost is very low, only spent 200 million yuan in cash, including a 2015 bid Shanghai ranked second in market share of the real estate cost of 60 million Yuan, much of the rest through equity exchange completed.

Business information displayed, chain home group currently registered capital 15,915,065, statutory representative human Zuo Hui, shareholders including natural shareholders Zuo Hui, and single just, and Xu Wangang, natural, and institutions shareholders including Beijing collection Cheng create voted investment partnership enterprise, and Shang haiyurui Investment Management Center, and Shanghai Yu Yang Investment Management Center, and Shanghai Ding Cong Investment Management Center, and Shanghai station this investment management center, and Shanghai Yu thought Investment Management Center, and Shanghai Bo June Investment Management Center, institutions.

Even so, the chain home after such a large expansion, partner of ownership nor exceed around 20%.

In front of the b round of financing, in the company’s ownership structure, Zuo Hui, Chairman of chain home ownership 61.2%, Executive Director Dan Yigang’s stake is 3%, employee equity incentive 18.1%, has established the employee option pool, merger shareholders ‘ stake to 16%.

Predators behind the fast expansion of the chain home |368 million valuation: transactions this year will reach a trillion

After completing the national distribution, chain home nearly all resources to grab market share.

By March 2016, in line with the national chain home stores nearly 6,300, Beijing 1400 and 1300 in Shanghai. Interview with Mayor of Shenyang how to find in

Currently chain’s market share in Beijing and Chengdu to 63% and 50% became absolute leader. And other areas are also becoming market leader.

Predators behind the fast expansion of the chain home |368 million valuation: transactions this year will reach a trillion

As you can see, chain-2015 years of extreme expansion is almost exclusively supported by money.

In 2014, the chain in the case of 3.93 billion yuan recorded operating income of 410 million yuan in net profit, net profit margins of more than 10%, and by the year 2015, expansion case, costs increased significantly, although annual sales income was 15.52 billion yuan, close to 400% from the previous year, but the actual net profit of 550 million Yuan, profit margins are reduced to 3.5%.

Penetrate individual housing consumption the entire value chain

The project investment plan clearly for the first time revealed the chain operating model.

Surging news found that the chain has now been completed from rental to purchase the entire consumption chain.

Predators behind the fast expansion of the chain home |368 million valuation: transactions this year will reach a trillion

However, the plan shows that chain currently manages about 100,000 of its guest rooms comfortable and Tintin rental business is not within the scope of the financing, this part of the business will be split according to the timetable set by the company.

In part of the planned listing, chain home income mainly includes three parts, second-hand House brokerage account for a major position, in addition to including new home sales, as well as financial services.

Data show that chain 2015 volume is 700 billion yuan. Traditional second-hand sale and lease transactions in the 2015 to reach 550 billion yuan, income of 11.8 billion yuan, compared to about 75.9%; home sales, turnover of 150 billion yuan, 2.5 billion yuan of income, compared to about 16.1%; financial services industry 2015 annual income of 1.2 billion yuan, compared to about 7.9%.

Predators behind the fast expansion of the chain home |368 million valuation: transactions this year will reach a trillion

Chains for 2016, turnover reached 1 trillion and revenue of 28 billion, net income of $ 2 billion. 2017 turnover of 1.5 trillion and revenue of 40 billion, net income of $ 5 billion.

This means that more than 10% of the real estate transaction will be done through the chain home, such a large market share, hardly find competitors in China’s real estate industry.

According to the plan, chain home new home sales will be part of the future strengthened.

In 2015, the chain acquired a wholly marketing company high-policy institutions, previously, the company also launched in 2014 the O2O marketing platform “Lakes”.

Finance next stop

Mentioned in the plan, housing finance is the potential development of chain business.

HomeLink said the housing finance industry is still in its infancy, “Internet financial + real estate” will be very promising. With annual turnover of 6 trillion of new homes, financial services penetration 1%, second-hand House annual turnover of 4 trillion, financial services penetration rate of 20%, national housing finance in turnover potential space of about 860 billion yuan.

Now the business is concentrated in the Beijing market, beginning in 2016 to the country. HomeLink is currently actively applying for small loans and consumer finance Internet licences, as own funds micro-credit lending needs the Internet license.

Surging news found that chain in terms of short-term lending in the housing finance mentioned in three ways.

One is the revolving loan, which for buyers at the Bank between lenders and loan programs provide short-term Fund, charge a service fee of 1.5%. Second is the foreclosure property loan, namely for sellers, when sold by the Housing Authority has yet to discharge of mortgage, provide short-term bridge loans 2% of the monthly average for about 50 days.

Last is previous attracted market attention down-payment loans. For buyers, providing bank loans (own funds, mortgage/credit). At present, there are around more than 40 billion yuan down payment loan, one of the largest is China’s ping an, the line has more than 3 billion yuan.

Displayed in the chain disclosed data, in 2015 the company finance total turnover of about 20 billion yuan, down payment and loan of 260 million Yuan and it has 140 million Yuan to repay, outstanding 120 million Yuan. Chain home, after assessment, that part of the balance there is no repayment risk. Chain home stressed, HomeLink real estate has active stop-payment loan, this limited impact on the company’s profitability and business development.

However, the chain of the current financial model clearly does not meet.

In accordance with the vision and future direction of the company is development and realization of assets securitization of financial business.

Predators behind the fast expansion of the chain home |368 million valuation: transactions this year will reach a trillion

Listings: five years listed

Currently HomeLink is the b + and b round of financing, raising funds totaling 7 billion yuan. Series b 4.35 billion yuan, B+ rounds of 2.65 billion yuan, invest 3.85 billion yuan new shares (55% per cent), old stock transfer of 3.15 billion yuan (45% per cent). Investors include huasheng capital, Baidu, Tencent, h Capital, working capital, Shenzhen Straits asset management Ltd, United investment joint stock company of Zhejiang private enterprises, the original blue assets, source of capital, capital, matrix partners China and other high water jar.

Chain home complete b and b + round valuations will rise from 33 billion yuan and 36.85 billion yuan.

If companies can list in 2019, to calculate the forecasted data, the company was 25 times times PE, which means before the company went public in may not to further financing.

In addition, the project also revealed a buy-back clause in the investment plan.

Plan content, if the chain fails to series b delivery within 5 years after completion of qualifying initial public offering (that is, in Shanghai and Shenzhen, United States NASDAQ and the New York and Hong Kong-listed, including, but not limited to through a backdoor way, or in the possession of 1/2 or more series b shares and B+ round of equity investor recognition of other publicly traded securities exchange) ; More than half are no longer as core management management for the company’s services and the series b share transfer and corporate governance programme under the capital increase agreement failed to 12-18 months after the series b delivery date complete and effective implementation. The three types of condition occurs, the investor has the right at any time after the occurrence of the above three categories require buy-backs.

Repurchase price for the investment price + 8% (simple interest) in return. For the repurchase of priorities, or B+ round of investors and b investors equally, ahead of a round of investment and other existing shareholders.

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