Focus on the main business resilience management! I love my family’s net profit attributable to the parent in the third quarter of 165 million turned around a substantial loss|Company Exchange

According to the data of the third quarterly report, the accumulated revenue of I Love My Home in the first three quarters was 8.885 billion yuan. Among them, the third quarter recorded revenue of 2.8 billion yuan and net profit attributable to the parent of 165 million yuan, turning losses into profits, which is inseparable from the company’s strategic focus on the main business and stable operation

“Investment Times” reporter Yin Yujia

Those who have the same desires up and down will win, and those who are in the same boat through wind and rain will prosper.

On October 27, the third quarter report of I Love My Home Holding Group Co., Ltd. (hereinafter referred to as I Love My Home, 000560.SZ) was released. According to the financial report, in the first three quarters of 2022, the company’s cumulative revenue was 8.885 billion yuan, of which the third quarter recorded revenue of 2.8 billion yuan, net profit attributable to the parent was 165 million yuan, and net profit attributable to the parent after deduction was 163 million yuan. Turn losses into profits.

In the first three quarters of this year, the residential service industry faced dual pressures from industrial adjustment and upgrading and external environmental challenges. I love my family relying on an unswerving and stable business strategy, focusing on the core of the business, concentrating more resources to strengthen the core high-quality market, and supporting the direct sales system with continuously strong digital capabilities. High-quality management characterized by “high flexibility”.

With the continuous improvement of the housing market policy environment in the third quarter, the high-quality market of I Love My Home quickly showed vitality and accelerated the recovery of performance. The challenges of the external environment have also strengthened my strategic determination to pursue quality development and digital transformation. In the face of the severe challenges of the epidemic and the bottoming out of the industry market, I love my family to maintain strategic focus, practice internal management skills, adhere to the promotion of digital upgrade and quality development strategies, and continuously improve the service value and operational efficiency of the business, so that business operations can survive Risk capability and core competitiveness have been further consolidated and enhanced.

Looking forward to the fourth quarter, as the policy environment of the residential transaction market continues to accelerate and improve, I Love My Home will continue to forge ahead bravely under the mission of “beautiful living” entrusted by the times, and continue to strive for the development of Chinese-style modernization.

Focus on the quality development of the main business

Housing asset management business and housing transaction service business are the two main businesses of I Love My Home. Among them, the house asset management business brand “Xiangyu” cultivated by the company continued to maintain healthy and stable growth in the first three quarters, which is the mainstay of the company’s overall operation. Stability played an important supporting role.

“Xiangyu” is an important business growth engine and breakwater of I Love My Family in the residential service industry. “Xiangyu” is committed to building “China’s first technology platform for safe rental housing for ‘new citizens and young people'”. In recent years, through the completion of the “quality-oriented” strategic adjustment, it has realized the Internet digitalization of full-scale business relying on the “Xiangyu” APP Operation, successfully crossing the market cycle, winning with steady growth and professionalism, and taking the lead in the industry in terms of operation scale and operation efficiency.

As of September 30, the company’s housing asset management business had a stock of 259,000 houses under management, an increase of 2.8% compared with the same period last year; the average number of days out of the house in the first three quarters was 9.3 days, a decrease of 0.3 days compared with the first half of the year. The average number of days out of the house in the third quarter was shortened to 8.6 days, a decrease of 6.4% from the previous quarter; the average occupancy rate in the first three quarters was 95.2%, and the cumulative rental transaction volume reached 12.75 billion yuan.

In the two major areas of second-hand residential brokerage and new home sales, with the gradual improvement of the market environment in the third quarter, I Love My Home has successfully pushed the brokerage business out of the trough. As of September 30, the company’s second-hand residential brokerage business contributed a 32.8% increase in monthly revenue compared to the first half of the year.

On the whole, the scale of the company’s direct business system in key cities has remained basically stable, and the volume of second-hand residential brokerage business has generally shown a rebound, providing a solid foundation for the company’s performance recovery. As of September 30, the company had 2,439 directly-operated city stores and 31,200 first-line brokers. Among them, the scale of stores in Beijing and the scale of brokers in Shanghai and Tianjin increased compared with the end of the second quarter. In the third quarter, the second-hand brokerage business GTV from the direct business system increased by 19.6% from the second quarter.

A healthy financial position is an important cornerstone to support a company’s long-term growth. As of September 30, the net cash flow generated by I Love Wojia’s operating activities was 3.325 billion yuan, and the balance of cash and cash equivalents at the end of the period was 3.277 billion yuan. The liquidity risk of the company’s operations is low. At the same time, the company strictly controlled the risk of bad debts, the scale of accounts receivable was small, and the book value of accounts receivable at the end of the period was 1.107 billion yuan, and the provision ratio for bad debts was increased according to the principle of prudence, and the overall risk of accounts receivable was controllable.

I love my family’s main performance indicators in the third quarter

Data source: company financial report

Digital transformation lays the foundation for the future

The reporter of “Investment Times” noticed that since this year, I Love My Family has continued to accelerate the deployment and commissioning of digital infrastructure, achieving a balanced development of scale expansion, quality service and operational efficiency. By accelerating the construction of business digitalization capabilities and quality upgrades represented by the “Three Ones” project, the company has enhanced its anti-risk capabilities, further laying a solid foundation for the company to enhance its competitive advantages in the process of industrial upgrading and changes in the market structure.

The CBS/AMS core business system developed by the company has built a cooperation network covering the entire chain of residential services, realizing resource sharing, fine division of labor, standard operations, and scientific distribution, and effectively solves the problem of housing, customers, people, stores, and business lines. The problem of linkage and coordination between them. And on the basis of standardization, through online, digital and intelligent, the cooperative network can automatically and efficiently operate and continuously iteratively optimize.

The CBS/AMS core business system, as the digital operation base of the company’s housing transaction service and apartment business, supports a variety of digital professional function modules and SaaS systems, providing training, operations, insights, Decision-making, etc. provide digital intelligence empowerment. With the CBS/AMS business system as the core, the company has realized the three-network integration of online consumer Internet, industrial Internet and offline store network, forming a complete digital infrastructure of digital intelligence middle platform + Internet entrance + digital intelligent products.

In the first three quarters, I Love My Home continued to focus on the core customer value and online interactive experience of digital products in house search and house selection, and carried out quality improvement work. In the third quarter, the average monthly active users of the official website exceeded 18.77 million, an increase of 23.1% compared with the first half of the year. The click-through rate and lead conversion rate of the official website APP also increased significantly. , Internet platform operation level and online competitiveness have been further improved.

Starway plans to build a talent echelon

On the basis of good business development, I Love My Family insists on empowering organizations with digitalization in organizational management. On the one hand, the company has consolidated the foundation of digital technical talents. The proportion of digital technical staff on the headquarters platform exceeded 75%, and it continued to run towards a technology-driven digital organization. On the other hand, through intensive training, the digital literacy of managers and employees has been comprehensively improved. In the third quarter, the number of online courses of the company reached 3,157, an increase of 58.2% compared with the same period last year. The average school hours in the first three quarters reached 13.05 hours, an increase of 14.9% compared with the same period last year.

The reserve talent reserve is an important guarantee for the sufficiency of a company’s development potential. The management pain point of the real estate brokerage industry is that the “billing cycle” is long, and it is difficult for many people to survive the accumulation period at the beginning of their employment. In order to help new employees go through the accumulation period, I Love My Family has launched a self-developed digital training system, namely the “Starway Plan”. Training is one of the most effective means of “retaining people” for new employees after they join the company. Through the explanation of corporate culture and the improvement of professional skills, it can bring employees a sense of belonging. In 2021, the company launched the “Starway Plan” 2.0, which is designed with the underlying logic of the game, so that the newly recruited brokers can help the brokers effectively master the knowledge they should know and the process of absorbing knowledge. Fun.

On this basis, I Love My Family continued to launch the “On-the-job Starway Program 2.0”, an exclusive digital training system designed for mature brokers, focusing on the improvement of the core capabilities of professional brokers, using level-breaking learning, modular training, and interesting arrangement Systematize a wealth of knowledge.

Through the strengthening of quality, professionalism, service and other contents, we will continuously improve the business proficiency of brokers, strengthen the improvement of laws and regulations, quality control rules and service levels of brokers, and help brokers to build knowledge and skills from “Tao” to “Skill”. Behavioural framework to enhance the specialisation and professionalisation of brokers. By cultivating high-quality professionals in the industry, it will further empower the company’s overall service quality.

Guarding the green responsibility and walking side by side with the community

From April to May 2022, the epidemic occurred in Beijing, Shanghai and other places. I love my family actively fulfilling social responsibilities and participating in the fight against the epidemic in various places. During the epidemic, I Love My Family established an anti-epidemic volunteer service team of more than 8,000 people, participated in 18,760 volunteer services in the community, and the cumulative service time exceeded 84,000 hours, serving nearly 1,000 communities, and won the honorary title of “Beijing Model”.

During the epidemic, in order to assist Chaoyang District of Beijing in regulating the supply of living materials and stabilizing the shopping environment, I Love My Family set up a “special class for supply guarantee” volunteer service. 5,800 brokers have invested in the front lines of various communities in Beijing to conduct resident nucleic acid detection scan code guidance and order. Maintenance, providing food for isolated residents at home, express delivery, throwing garbage, distributing nucleic acid test kits, etc. The company has also donated N95 masks, mineral water and other materials to support territories such as Chaoyang District and Daxing District.

In addition, I Love My Family has launched the “Guardian Plan” around the five aspects of environmental protection, life protection, health protection, emergency protection and real estate protection, and has effectively undertaken the important task of “community guardian”. , community safety and other areas play an important role. Focusing on the public interests of community residents, the company promotes the integration of various resources such as community residents’ mutual assistance, public services, and commercial services, and promotes the integration and development of various elements such as people, places, things, feelings, affairs, and organizations in the community.

It can be said that I Love My Home has played an indispensable role in ensuring the safety of real estate transactions, improving people’s living conditions, and optimizing resource allocation. Under the background that innovation promotes the coordinated development of enterprises, the continuous emergence of new consumption scenarios also continuously promotes companies to fulfill their social responsibilities with more warmth and responsibility. By continuing to adhere to law-abiding operations and honest services, I Love My Home will effectively improve the quality of transaction services, provide consumers with more authentic housing information, more efficient transaction services, and more standardized operating procedures, so as to fulfill the mission of “settling home” entrusted by the times. Do your best to take responsibility for your business.