Digital And Platform Advantages Show, Shell Listed In The First Year Profit Growth

The figures show that the operating revenue of shell in the fourth quarter of 2020 is 22.7 billion yuan, with a year-on-year increase of 57.6%; the annual operating income is 70.5 billion yuan, with a year-on-year increase of 53.2%. The fourth quarter net profit reached 1.096 billion yuan, after adjustment, the net profit reached 2.001 billion yuan; the annual net profit reached 2.778 billion yuan, which was the first time to realize the full year profit under American accounting standards.

Among them, the fourth quarter and the whole year's revenue and profit data exceeded the previous market expectations.

Peng Yongdong, co-founder and CEO of shell, said, "massive scale, efficient operation and high-quality service, combined with strong network effect, have formed a positive cycle, driving GTV growth of 64.5% year-on-year, reaching RMB 3.5 trillion."

"By the end of 2020, the proportion of stores with annual GTV exceeding 50 million yuan of food and clothing line has exceeded 30%, compared with 19% in 2019," said Xu Tao, CFO of shell. In the past two years since the establishment of shell, GTV has increased to 3.0 times, revenue has increased to 2.5 times, and the adjusted net profit has increased to 43.7 times. As we continue to develop our ACN network, expand our user base and innovate AI technologies, we are confident in achieving sustainable growth. "

All three sectors are growing at a high speed

As one of the largest residential service platforms in China, as of December 31, 2020, the number of brokers connected by shell platform exceeded 490000, with a year-on-year increase of 37.9%; the number of broker stores connected by shell platform exceeded 46900, with a year-on-year increase of 25.1%. The continuous expansion of online and offline networks, combined with the network effect of ACN and the platform effect of people store mode, has driven the rapid rise of various business sectors.

According to the financial report, in 2020, the GTV of shell stock housing business was RMB 1.94 trillion, with a year-on-year growth of 49.5%; the annual operating revenue of shell stock housing was RMB 30.6 billion, with a year-on-year growth of 24.4%.

In 2020, the GTV of shell new house business will be 1.38 trillion, with a year-on-year increase of 85%; the annual operating revenue will increase by 87.1% to RMB 37.9 billion. Among them, the GTV of new house transactions contributed by chain family increased by 37.2% to 276.7 billion yuan (about 42.4 billion US dollars), and the GTV of new house transactions completed through non chain stores and other sales channels increased by 102.7% to RMB 1.11 trillion yuan (about US $169.5 billion).

At the time of unexpected growth in stock housing and new housing, shell also carried out comprehensive exploration in the field of new housing. According to the financial report, in 2020, the revenue of shell decoration and other emerging businesses will reach RMB 2 billion, with a year-on-year increase of 68.7%, and the synergy effect with other main businesses is gradually emerging.

In the past two years, the rapid development of China's real estate market has become an important driving force for shell to go public and become popular. In 2019 and 2020, the sales volume of commercial housing in China will reach 16 trillion yuan and 17 trillion yuan respectively, setting a record high continuously. Founded in April 2019, shell house hunting has developed rapidly and landed on the New York Stock Exchange in August 2020.

Digital transformation of industrial Internet

Behind the growth of stock housing, new housing and emerging business, shell continued to carry out in-depth digital transformation of the housing industry internet. In the past year, the epidemic has played an obvious catalytic role in the online process of the residential service industry. At the beginning of the epidemic, the platform launched online training for brokers, VR guided viewing and online sales of real estate. With the large-scale mature application of VR, AI and other technologies, shell further optimizes the user's experience and efficiency of looking for, seeing and buying a house.

By the end of 2020, shell real estate dictionary has collected the dynamic data of 240 million houses in China, and has collected more than 9 million VR housing models. At the end of the year, the proportion of second-hand houses on sale was more than 73%. In 2020, the number of VRS launched exceeded 66 million, compared with 3.9 million in 2019.

According to the financial report, shell's R & D expenditure in 2020 will be 2.478 billion yuan. The continuous technological investment and innovation will promote the standardization, digitization and intellectualization of human, material and process, and at the same time, it will win the recognition and trust of more users: in the fourth quarter of 2020, the mobile Mau of shell will reach 48.18 million yuan, with a year-on-year increase of 88%.

At the server side, with the help of a variety of digital tools, the efficiency of ACN cooperation network has been rapidly improved. ACN (agent cooperative network) refers to a cooperation mode in which brokers of the same brand or cross brand participate in a transaction with different roles under the premise of complying with the rules of full sharing of housing information. After the transaction, the Commission is divided according to the actual contribution of each role. It is the first landing mode of symbiotic economy in the field of residential services.

Under the effect of ACN cooperation network, the second-hand real estate brokerage service industry is evolving towards "ideal state": real estate brokerage brands, stores and brokers begin to improve efficiency and service quality through open cooperation. At present, the shell platform has a considerable proportion of cross store and cross brand transactions, reflecting the value of ACN cooperation network.

Value and quality pursuit of service providers

In the past year, better service providers, as the quality supply side, have brought better services to consumers. Shell constructs a perfect service provider growth system in the industry, and makes efforts in recruitment, education and retention to promote the professional and professional development of service providers and create lifelong ambition.

Shell has built a system that runs through the whole career of brokers, such as the fire plan and the university entrance examination. It has set up Huaqiao school, which helps the development of the store owners. It has also created a position for brand owners to exchange and learn, and has discussed with many universities across the country to set up professional courses for brokers' professional education. Shell, together with industry associations, professional colleges and well-known enterprises in the industry, worked out the standard to develop the vocational skill level certificate of "digital brokerage service for new residence", which was selected into the fourth batch of "1 + X certificate" project of the Ministry of education, and became the first landing case of residential service industry in China.

In the context of the normalization of the epidemic situation, shell plays a role of "stabilizer" for employment in the residential service industry. In February this year, the "Chunwang plan" was released, which planned to recruit brokers from the whole society in 2021 in conjunction with new brokerage brands.

As of December 31, 2020, the proportion of highly educated brokers retained on shell platform has exceeded 30%.

The evolution of platform service commitment leads to the iteration of industry quality standards. By the end of 2020, the 8 core promises of shell platform's second-hand housing service had reached 84% of the stores in top 30 cities; the promise of "no reason to check out" of new houses had covered 100 cities in China; the coverage rate of funds custody exceeded 80%, which effectively helped consumers avoid transaction risks and enjoy more secure service guarantee. More new brokerage brands have realized the consensus and practice of industry quality service relying on the platform in this year.

"In 2021, shell will focus on five areas: good for consumers, helping service providers to be good for consumers, cultivating emerging businesses, creating social value, and strengthening the key role of technology in broad market opportunities. We are full of confidence in the future, and shell will continue to work hard for the vision of a new residential service platform serving 300 million families in China. " Peng Yongdong said.