On November 10, 2021, the 4th phase of the "Golden Stock Research" research program for 100 listed
companies, organized by WisdomTree Finance and co-sponsored by Guoyuan International, the Investment
Research Institute, the Value Investment West Lake Association and the Chamber of Hong Kong Listed
Companies, was officially opened.
This research activity was held in Shanghai for two days (November 10-11), and professional investors
visited five high-quality listed companies in Hong Kong: C&D International Group (1908.HK), Qeeka Home
(1739.HK), Greentown Management Holdings (9979.HK), Lanson Green Property (0106.HK) and Lanson Green
Life (1965.HK). We conducted field research and in-depth communication.
In the afternoon of November 10, more than ten professional investors from all over China came to Qeeka
Home (1739.HK) (the "Company") headquarters in Shanghai, where they had in-depth exchanges and
discussions with the management while gaining an in-depth understanding of the company, and the
atmosphere was hot.
I. Fundamentals and recent developments
Qeeka Home (1739.HK), officially established in 2007, is one of the largest SaaS service platforms for
decoration companies in China. The company provides marketing, supply chain gathering and innovative
value-added services to decoration companies through a total SaaS-based solution, and it also operates
several well-known interior design and decoration brands, and provides services such as decoration
capital protection and third-party supervision to users. The Company was listed on the Main Board of the
Hong Kong Stock Exchange on July 12, 2018, making it the No. 1 stock in the home improvement vertical
Since its establishment, the company has taken the responsibility of improving the efficiency of the
industry and user experience, continuously innovating and developing to create a new model of home
decoration that integrates online and offline, providing users with integrated online and offline,
full-process and high-efficiency quality home decoration services. According to the data, the online
transaction volume of Internet home decoration in China will be RMB 56.7 billion in 2020, and is
expected to reach RMB 142.6 billion by 2025, with huge market space. The company, as one of the head
enterprises of Internet home improvement services, is expected to benefit from it in the long term.
In the first half of 2021, the Company achieved total revenue of approximately RMB524 million,
representing an increase of approximately 66.5% year-on-year, and achieved adjusted net profit
attributable to the mother company of approximately RMB20.54 million, representing an increase of
approximately 286.3% year-on-year. Specifically, the Company's revenue from SaaS and extended services
was approximately RMB309 million, representing a year-over-year increase of approximately 38.4%, while
revenue from interior design and construction and other businesses was approximately RMB215 million,
representing a year-over-year increase of approximately 135.1%. During the period, the number of active
paid merchants reached 5,667, representing a year-on-year increase of approximately 33.8%; the number of
sales leads reached approximately 384,216, representing a year-on-year increase of approximately 16.4%;
and the average selling price per lead reached RMB691, representing a year-on-year increase of
The company has established a flourishing eco-system, cooperated with tens of thousands of paid
decoration enterprises, recommended millions of effective sales leads for decoration enterprises, and
successfully landed in more than 300 cities. It is the preferred platform for home improvement companies
seeking value-added services and users seeking home improvement services on the Internet.
Recently, the industry research institution Leadleo Research Institute released "How to achieve
industrial upgrading in the trillion market home decoration industry by relying on the Internet? As
mentioned in the report, with the gradual maturation of Internet home improvement, online full-process
home improvement services are favored by consumers, one-stop and customized consumption trends are
emerging, and providing a full set of home improvement service solutions will become the mainstream
development trend of the industry in the future, and Qeeka Home is recommended in the report.
II.Second, Q & A
1. What changes have been made to the way traditional decorators get customers?
The most common mode of customer acquisition is for salesmen to push to get customers, but this model is
gradually being eliminated, in Shanghai, for example, many companies have canceled this business,
because the demand for renovation in Shanghai urban areas to second-hand decoration, few new
neighborhoods can go to the ground, second-hand houses are too fragmented, it is difficult to push and
other ways to get customers through offline, even if there are many new properties open, but most of
them are relatively remote, easy to Beyond the service radius of the installation enterprises. There is
also a common method of customer acquisition is to invest in television advertising or outdoor media,
customer acquisition through brand advertising, but this way of customer acquisition on the one hand,
the cost of investment is relatively large, on the other hand, is more suitable for the larger revenue
scale of medium and large installed enterprises, now most of the installed enterprises will choose to
cooperate with home improvement platforms such as Qeeka Home, direct access to the platform's accurate
users, or use the platform's software system for sharing fission, etc. The way to get customers.
2. What is the distribution of the company's customers?Are the company's sales leads exclusively
recommended to a specific company or randomly?
Overall, the company's customers are distributed in more than 100 cities across China, but the overall
trend is that the larger the city, the higher the penetration rate. The company's four largest cities
are Beijing, Shanghai, Guangzhou and Shenzhen, because of the large population in these cities, but also
because we think the most important reason is that the enthusiasm of second-hand housing and renovation
companies in these cities to embrace the Internet and their cultural level are relatively higher, and
the customers' requirements and education level are also higher, which drives the industry to be more
First of all, the company will recommend each sales lead to 2~3 renovation companies on average, because
users actually want to compare them, which is a consideration from the user's standpoint. Secondly, the
sales leads are not randomly assigned, they are optimally matched according to the historical turnover
rate, professionalism, service radius, and capacity remaining of the decoration companies.
3. For the general consumer users, how many consumers have installed Qeeka Home App software? How does
the company promote it?
In the first half of this year, the company aggregated more than 384,000 sales leads, with a
year-on-year growth of about 16%, behind each sales lead is a highly effective potential customer. The
company's promotion is also omnichannel, including our own media, offline traffic, online traffic,
covering Baidu, Headline, Tencent, etc., of which Baidu is also the second largest shareholder of the
Despite the omni-channel promotion, people may have the feeling that Qeeka Home is not well known by the
majority of consumers. We think that this is mainly due to the fact that decoration is a low-frequency
thing, so consumers usually don't pay too much attention to the relevant information, so it is actually
a difficult thing to establish a pure user traffic platform in the low-frequency field. So for us, we
provide a service that is more efficient than the renovation company's own advertising to get customers.