Chinanews.com, March 30th. On March 27th, Qiyi Technology (1739.HK operating entity: Qijia.com), the first shareholder of the China National Installation Vertical Platform, announced its 2019 financial report. According to the financial report, the total revenue of Qijiawang's continuing operations in 2019 was RMB 771 million, an increase of 19.4% year-on-year; the adjusted net profit attributable to equity holders of the company exceeded 62 million yuan, an increase of 20% year-on-year, following 2018 Since turning losses into profits in 2015, it has continued to maintain profitability.
In fact, the market environment of the home improvement industry in 2019 is not ideal. Under the downward pressure of the environment, problems such as capital cooling, weak upstream real estate market, and tightening demand for home improvement have caused large-scale home improvement companies to run into trouble. Qijia.com's profitability Invaluable.
Under severe market conditions, profitability is commendable
In 2019, the home improvement industry encountered a cold winter. On the one hand, the downturn in the general environment, the weakness of the upstream real estate market, and the shrinking demand for residential home improvement made it more difficult for decoration companies to obtain customers. On the other hand, as consumers demanded more and more home improvement services, Refining and personalization, the original extensive decoration company could not satisfy and retain customers, and the sound of the company's dilemma was endless.
The online decoration platform is the core business of Qijiawang. As a two-way communication platform for decoration companies and users, Qijiawang seems to face double pressure. However, Qijia.com's financial report shows that all the data of Qijia.com's platform business are stable. In 2019, Qijia.com's platform business revenue reached 459 million yuan, a year-on-year increase of 42.9%, and gross profit reached 439 million yuan, a year-on-year increase of 44.1%. At the same time, the operating data of the platform also maintained a growth trend: the number of decoration companies on the platform reached 12,312, an increase of 27.0% year-on-year; the number of monthly unique visitors reached 59.4 million, an increase of 22.2%; the number of Qijiabao service sites reached 28,161, Up 48.8%.
The growth of business data has brought about an increase in profits. In 2019, the net profit of Qijiawang exceeded 62 million yuan, a year-on-year increase of 20%, which is commendable in the current market environment.
One of the important reasons for the improvement of user experience, the recognition of users on Jiajia, or the growth of Qijia. Qijia.com's financial report shows that in 2019 Qijia.com has done a lot of optimization in user experience: continuously strengthen data analysis and matching capabilities, and portray more accurate user portraits, realizing further precision between user needs and installation services. Match to meet the diversified needs of users; upgrade user protection products such as Qijiabao and Ping An to ensure the safety of user funds, property and personal safety, and monitor the construction period and construction quality; improve online quotation, online communication and consultation, online supervision of construction, and online financial loans Waiting for services to maximize the convenience of the user's renovation process ... Qijia.com said that according to multi-party monitoring data, Qijia.com has the lowest complaint rate in the industry in 2019.
In addition, the reporter reviewed several home improvement industry reports released by third-party data monitoring agencies and found that in 2019 Qijia.com ranked among the top in terms of new users, user satisfaction, and user stickiness.
Accumulate money and lay the foundation for future competition
Qijiawang's financial report also revealed that under the premise of maintaining profitability, Qijiawang also invested huge costs in 2019 to lay the foundation for the future development of various businesses. Qijiawang CEO Deng Huajin said at the results conference that in 2019 Qijiawang took the lead in opening the mode of technology and ecological competition. By empowering installation companies, creating a supply chain ecology, and building an industrial Internet, the home improvement industry is moving towards online, Digital transformation and upgrading.
In addition to the above-mentioned direct user-oriented experience reform, Qijia.com has also done a lot of empowerment work on the merchant side to continuously reduce or even eliminate the contradiction between the service of the decoration company and the needs of users, thereby changing the current dilemma facing the industry. In 2019, Qijia.com released a "torch upgrade plan" for platform merchants and built PaaS platform services to provide platform decoration companies with a comprehensive digital system from marketing, design, operation management to site management, helping decoration companies to improve Own supply chain system, and strengthen the screening, evaluation, training, and reward of decoration companies to enhance the ability of decoration companies to provide refined services and truly meet user needs.
Qijiawang said that Qijiawang has become the most important channel for customer acquisition and service of platform merchants. It is also based on the platform traffic advantage and various enabling measures that merchants have continuously joined the Qijiawang platform. Even in the shadow of the cold external environment, the number of Qijiawang platform decoration companies will remain 27.0% year-on-year in 2019. growth rate.
On the industry side, Qijiawang continued to strengthen its efforts to build an industrial Internet. Qijiawang believes that industrial interconnection is the development trend of the home improvement industry, and building the industrial Internet is an important part of Qijiawang's layout of future competition. In 2019, Qijia.com established a three-in-one supply chain strategy for building a superior product library, building warehouse capacity, and digital system empowerment.It will start with four major modules: main materials, auxiliary materials, customization, and soft installation. Development strategies such as establishing a main material supply chain alliance, strategically investing in small fat bears and supporting auxiliary material supply chains, and launching a custom home brand Nola with Holaike, continue to deepen a three-dimensional, rich-level supply chain ecosystem.
For a long time, the home improvement industry has been widely criticized for its complex industrial chain, low efficiency, low standardization, and lack of supervision. Under the circumstances of changes in the external environment, these shortcomings have seriously hampered the development of the industry. Judging from Qijiawang's 2019 financial report, Qijiawang's strategic vision is not limited to the development of the platform itself, but to enlarge to promote the improvement and upgrade of the entire industry. Does its strategic direction and development model work? Perhaps it can be predicted from its solid growth and profitability.