Qeeka Home Net Profit up over 20% to more than RMB 62 million in 2019

On March 27, Qeeka Home (1739.HK, subject of operation: Jia.com), first shares of IDC vertical platform in China, announced the annual results for the year ended December 31, 2019. Qeeka Home total revenues in 2019 grew 19.4% year on year to RMB 771 million, of which the revenues from the platform business reached RMB 459 million, up 42.9% year on year. Adjusted net profit from continuing operations attributable to equity holders of the company exceeded RMB 62 million, with a year-on-year growth of 20.5%. Qeeka Home still maintained profitable in 2019 since turning a loss into a profit in 2018.

Under the pressure of the IDC industry and many IDC service providers had operating difficulties, Qeeka Home gave a strong booster to the market with its steady performance and sustained profit in 2019. Data showed that Qeeka Home had turned into a profit and continued to perform well since its listing, with total revenues grew from RMB 646 million in 2018 to RMB 771 million in 2019, up 19.4% year-on-year.

As the core business of Qeeka Home, the platform business growth exceptionally. In 2019, the platform business revenues reached RMB 459 million, with a year-on-year growth of 42.9%, accounting for nearly 60% of the total revenues. The gross profit of the platform business reached RMB 439 million, with a year-on-year growth of 44.1%, and the gross profit rate increased to 96%, highlighting the gradual maturity of the platform business and the obvious effect of cost reduction and efficiency enhancement.

And Qeeka Home's appeal to users was steadily increasing due to its upgraded user experience reform. In 2019, Qeeka Home independent visitors per month reached 59.4 million, an increase of 22.2% year on year. The number of Qijiabao's site is up 48.8% to 28,161, more and more users chose services through Qeeka Home for home decoration, and chose Qijiabao for its free housekeeping and quality inspection throughout the process to ensure the construction period and quality. As of 31 December 2019, Qeeka Home user data and high-quality home improvement content included over 2.5 million articles and posts, 7.0 million photos and 2.7 million real-life case examples. In addition, according to the data of the third-party digital monitoring agency, Qeeka Home ranked among the top in terms of the number of new users, user satisfaction and user loyalty. User experience reform of Qeeka Home had obvious effects.

With the growth of platform users and followings, more and more IDC providers chose to join Qeeka Home. The total number of IDC service providers settled in the platform reached 12,312 in 2019, with a year-on-year growth of 27.0% with the scale effect. In response, Deng Huajin, CEO of Qeeka Home, said that "platform merchants had become more refined, high-quality and standardized. Jia.com Network had become the most important customer acquisition and service channel for IDC service providers. "