Qeeka Home 2020 Revenue Growth of 18.8% SaaS Services Become the Core Driver

Recently, Qeeka Home (01739.HK) released its 2020 earnings report, showing that although the home improvement industry was hit hard by the epidemic, the company achieved operating business revenue of RMB 920 million in 2020, up 18.8% year-on-year; adjusted net profit attributable to equity holders of the company was RMB 45.06 million, continuing to remain profitable.

The home improvement industry has been one of the industries hit hardest by the epidemic because of its high reliance on offline delivery. As a result of the epidemic, a large number of home improvement companies lost revenue in the first and second quarters, which should have been the industry's peak season. In addition, the home improvement industry is in a period of deep adjustment. Home improvement companies that have not yet fully adapted to the transformation and upgrade are caught in a dilemma of stagnant growth or even negative growth.

Qeeka Home introduced that in such a market environment, the company's 2020 results grew steadily, reflecting strong risk resistance and growth momentum. In particular, in the second half of 2020, the company's performance recovered strongly and grew at a more pronounced rate, with operating business revenue increasing by 48.7% year-on-year. Meanwhile, as of December 31, 2020, the company's net operating cash flow was RMB 80.72 million, up 85% year-on-year.

Qeeka Home introduced that this was mainly driven by the enhanced refinement of operations of JIA.com (the operating arm of Qeeka Home) and the deepening of SaaS services to empower home improvement companies. The company has included SaaS product subscription fees as a separate revenue in 2020, considering SaaS services as an important strategic and growth driver, and the revenue from this segment in 2020 is RMB 29.8 million, up 39.9% year-on-year.

The current domestic home improvement companies are generally small in scale, low in concentration, lacking advanced management capabilities, and the refinement of home improvement companies' operational capabilities and digital marketing customer acquisition capabilities are weak, resulting in their inability to adapt to the deep adjustment of the industry. The original purpose of Qeeka Home 's SaaS platform is to provide services to these companies and help domestic home improvement companies to better acquire and serve users.

Qeeka Home has launched a mature SaaS solution for decoration companies, which is based on SaaS product subscription service, overlapping with marketing service, supply chain service and innovation service, enabling home decoration companies to transform and upgrade in a multi-directional and three-dimensional way.