Qijia.com's 2020 performance bucked the trend, and the SaaS service of the installed company unleashed strong potential

On March 19, Qiyi Technology (1739.HK operator: Qijia.com), the first domestic vertical home improvement platform, released its 2020 performance report. According to the report, the total revenue from Qijia.com's operating business in 2020 was RMB9.2100 million yuan, year-on-year increase18.8%; Gross profit is RMB5.2100 million yuan, adjusted net profit is RMB4506Ten thousand yuanIt remains profitable. Under the pressure of the epidemic, Qijia.com's performance has been steady, moderate and positive, showing good resilience to risks. The SaaS-based installation service model has also shown strong development potential.

Revenue bucked the trend and grew 18.8%, showing strong development resilience

After the outbreak of the epidemic last year, the home improvement industry, which relies heavily on offline delivery, also inevitably fell into a “trough”. The downturn in the industry brought pressure on decoration service platforms such as Qijiawang. Under these circumstances, Qijia.com's total revenue in 20209.2100 million yuan, still implemented18.8%Contrary to the trend, net profit reached4506Ten thousand yuanIt continued to be profitable, showed full development resilience, and injected a “strong shot” into the industry.

The reason for its steady performance is that the main online tone in 2020 favors the digital business. Qijia.com further strengthened SaaS-based digital operation solutions for decoration companies during the pandemic to help equipment companies overcome the pandemic crisis with accurate marketing and efficient operation. Even some decoration companies grasped the demand for home improvement that broke out after the epidemic, and reached a new high in development in the second half of the year. The digital transformation is irreversible. In this year's financial report, Qijia.com even listed SaaS subscription fees as a single itemThe separate revenue portion was emphasized, and the strategic position was highlighted.

Second, the diversified revenue structure has further enhanced the resilience of enterprises to risks. According to public information, Qijia.com's business mainly includes two major sections: corporate services and interior design and decoration. Among them, the SaaS-based enterprise service business is divided into three parts: marketing services, supply chain collection, and innovative value-added business, which each contributed in 20204.5100 million yuan、5242Ten thousand yuan、1894Ten thousand yuanoperating income. Home improvement brands such as Borusen, Qijia Dianshang, and Qi Jiamei, which are operated by Qijia.com, also surrendered a year-on-year increase in 202041.3%, achieve revenue3.6100 million yuanGood results.

Third, financial stability and steady cash flow. Financial reports show that by the end of 2020, Qijia.com held cash and cash equivalent contracts9.0100 million yuan. Cash flow is the life/death valve of an enterprise. This has been strongly verified during the pandemic. Moreover, a sound financial structure can also provide a solid guarantee for subsequent high-quality development.

With strong business resilience and resilience to risks, Qijia.com quickly returned to the fast track of high-quality development after the pandemic, and its steady operating performance has also laid a solid foundation for future SaaS-based empowering enterprises.

Vertical home decorationSaaSContinue to unleash growth momentum

In the context of the country's policy of vigorously promoting “new infrastructure” and attaching great importance to the development of the digital economy, the “black swan” epidemic has further stimulated the huge potential of the digital economy. More and more companies are aware that only through deep digital transformation can they have the strength and ambition to resist the risks of force majeure such as the pandemic.

As the leading SaaS service platform for decoration companies in China, in 2020, Qijia.com accurately grasped the digital transformation opportunities for home improvement companies under the epidemic, vigorously promoted home improvement SaaS subscription services, and provided a complete set of solutions for digital operation for decoration companies based on this. According to financial data, Qijia.com's SaaS subscription service revenue in 2020 was achieved39.9%There was a sharp rise. The number of new paying merchants added to the platform in 20202,621Home, year-on-year growth34.2%, active paying merchants are4,904Home, it has also been realized32.6%The growth and development potential is strong.

In particular, its SaaS-based marketing services, such asInitiatives such as optimizing big data analysis tools, implementing star evaluation rankings, and upgrading Qi Jiabao,2020The year has achieved remarkable results in helping equipment companies accurately acquire customers, improve operations, and optimize word of mouth. Many assembly companies have achieved both growth in output value and word of mouth.

Deng Huajin, Chairman and CEO of Qijiawang, said, “Domestic construction companies are weak in terms of refined operation and digital marketing and customer acquisition capabilities. The original purpose of QijiaNet's SaaS was to provide services to these companies and help them better acquire and serve customers... SaaS is an important strategy and an important driving force for the company's growth.”

The industry usually divides SaaS products into general-purpose and industry-vertical ones, such as collaborative office OA software, ERP software, etc., which target various industries; while industry-vertical SaaS focuses on serving customers in a certain industry. Qijia.com provides a typical vertical SaaS service for home improvement. Similar to this, there are also various vertical SaaS services focusing on e-commerce, medical services, and financial institutions. Vertical SaaS focuses on solving the pain points of a certain industry, bringing about cost reduction and increased user stickiness in services. Related vertical SaaS companies have also shown great potential for development in their respective fields. Analysts also pointed out that with the increasing demand for Internet home improvement services from users, the backwardness of traditional home improvement companies in digital services will inevitably be in sharp conflict with it, and SaaS-based home improvement enterprise services have broad prospects for development.

According to information, in 2021, Qijia.com will rely on SaaS to provide more enabling measures for decoration companies to continue to promote digital upgrading, reduce costs and increase efficiency, and enhance the competitiveness of the industry. It can be said that the home improvement industry's SaaS journey is on the rise and has great potential.

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