On March 10, Shell announced its financial results for the fourth quarter and full year of 2021.
The last quarter of 2021 lost all the profits of the first three quarters, and also posted more than 500 million, what happened to the shell?
The past year has been a heavy year for shells, which died in May, and at the end of the year, shells were shorted by muddy waters.
Entering the home improvement market and advancing into the "long-term rental" industry... Faced with various challenges in the internal and external environment, there are all indications that the shell is beginning to seek a new way of survival.
Revenue of 80 billion yuan but net loss of 500 million Shells increased revenue and anti-lossAccording to the financial report, in the fourth quarter of 2021, the total transaction volume of shells was 732.4 billion yuan, down 34.6% year-on-year; operating income was 17.8 billion yuan, down 21.5% year-on-year; net loss was 933 million yuan, and adjusted net profit was 42 million yuan. In 2021, shell's total transaction volume for the whole year reached 3.85 trillion yuan, an increase of 10.1% year-on-year; operating income was 80.8 billion yuan, an increase of 14.6% year-on-year; net loss was 525 million yuan, year-on-year from profit to loss; adjusted net profit was 2.294 billion yuan, down nearly 60% year-on-year.
That is to say, the entire profit of Shell in the first three quarters of 2021 has not been able to block the loss of the last quarter, and it has also posted more than 500 million, what is the matter?
Judging from the financial report, the real estate industry has entered an unprecedented period of adjustment and shock, in addition to housing enterprises, it also has a huge impact on the shell of real estate intermediaries.
Due to the market downturn, the total transaction volume in the fourth quarter of 2021 was 732.4 billion yuan, down 34.6% from 1120 billion yuan in the same period. In the fourth quarter of last year, the scale of shell existing housing transactions fell by 39.4% year-on-year, and the total amount of new housing transactions fell by 24.0% year-on-year. Shell's fourth-quarter operating income also fell sharply due to the size of transactions, falling by 21.5% from 22.7 billion yuan in 2020 to 17.8 billion yuan in 2021.
Nonetheless, Shell's total transaction volume and operating income in the fourth quarter of 2021 exceeded the company's previous revenue guidance and market consensus expectations, and the net loss amount was much better than market expectations.
Wind shows that Shell was established in 2018 and listed on the main board of the New York Stock Exchange in 2020, belonging to the concept of Chinese concept stocks, belonging to the Wind industry for real estate operating companies, the main business is new housing transaction services, existing housing transaction services and emerging businesses.
The founder died It was shorted at the end of the yearZuo Hui started from a real estate agent and founded the chain home in 2001, so it began to be well known to the public, and the subsequent shells were all built by his own hands. On August 13, 2020, Shell House was officially listed on the New York Stock Exchange in the United States, becoming the first share of China's residential service platform. Backed by the "first share of domestic real estate agents", Zuo Hui also successfully landed on the 2021 Forbes Global Rich List, ranking 128th, with a wealth of 15.5 billion US dollars. On May 20 last year, Shell issued an obituary saying, "Today, I am very sad, And Zuo Hui, the founder and chairman of Shell, left us due to illness. ”
At that time, affected by this news, Shell's stock price fluctuated, and Shell's stock price plummeted by more than 10% before market hours on the same day.
Unfortunately, in mid-December last year, the well-known short-selling company Muddy Waters released a short-selling report on shells, and Muddy Water said, "This is a huge scam, just like Luckin Coffee." Muddy Waters estimates that Shell's revenue figures for the second and third quarters of last year were exaggerated by 77%-96%, the total transaction value of new homes (GTV) was exaggerated by 126%, and the transaction volume of existing housing was exaggerated by 33%.
Subsequently, Shell responded that Shell ensured the authenticity and standardization of the financial report data, and Muddy Water lacked the basic understanding of the shell business and the correct interpretation of the report because it did not understand the Chinese real estate market. Following December, Shell responded again on January 28 with the "Independent Audit Committee Shorting Internal Audit Report on Muddy Waters", saying that based on the internal investigation, the Audit Committee concluded that the allegations in the Muddy Waters report were not substantiated.
According to public information, Muddy Water has shorted 40 listed companies since 2010, and a number of Chinese-listed companies such as Anta Sports, Luckin Coffee, Focus Media, and New Oriental have been shorted by Muddy Water.
Source: Wind
In the past year, Shell's stock price has fallen sharply, starting from July 2021 to fall off a cliff, since july last year, Shell's stock price has plummeted by 69.67%, with an annualized yield of -81.99%, as of March 10, Shell's latest total market value was $17.2 billion, compared with the all-time high, the total market value has fallen by nearly $70 billion.
Entered the furniture and long-term rental market Can the Shell Rebellion save the crisis?Faced with various challenges in the internal and external environment, there are all indications that the shell is beginning to seek a new way of survival.
Peng Yongdong, chairman and CEO of Shell, said, "In 2021, the internal and external environment facing the company has changed one after another, and Shell has chosen to face difficulties and change in the change. At the end of 2021, Shell released the strategic upgrade of 'one body and two wings', 'one body' that is, the second-hand and new housing transaction service track, and the 'two wings' are the whole decoration of the large home business group and the inclusive housing business group. The "whole large home furnishing business group and the inclusive living business group" mentioned by Peng Yongdong are the two new "grasps" of Shell's "survival in difficulties".
On July 6, 2021, Shell announced that it will acquire 100% of the equity of Shengdu Home Improvement with a total consideration of no more than RMB8 billion, and is expected to complete the delivery in the first half of 2022. Peng Yongdong is full of confidence in the home improvement business, he mentioned in the third quarter of 2021, "The Shengdu we intend to acquire maintains rapid growth in the East China market, and its future potential integration with the company will further enhance our competitiveness in the refurbishment business." ”
In fact, shell home improvement has been started as early as 7 years ago, in 2015, Chain Home and Vanke established "Ten Thousand Chain Home Improvement", and in June 2020, Beijing Vanke withdrew from Wanchain, and Shell took over. In addition, In April 2020, Shell also announced the launch of a home service platform "Quilt Home Decoration".
Source: Shell to find a house official website
In addition to the home improvement market, Shell has also put a lot of effort into the "cake" of long-term rental apartments.
At the end of 2021, Shell established the Shell Huiju Business Group, and "Shell Rental" came into being. Last month, Shell held a signing ceremony for cooperation with Lewan Apartment in Shanghai, and its first youth apartment project landed in Xuhui District, Shanghai, covering an area of nearly 40,000 square meters, transformed from an old factory building, with a total project volume of 2,978 units, and will provide rental services for new youth and new citizens.
However, it should be noted that the same chain family is one of the leaders in the "long-term rental" industry, and its layout leasing business has been as long as 10 years. Whether Shell's move will form a competitive situation with the same industry in the future is a question worth exploring.
From the expansion of real estate agency and brokerage platforms to the rental business and home improvement field, whether Shell can rely on these two new business lines to find the second growth curve is also a question worthy of further investigation.
However, from the current financial data, the contribution of emerging businesses to Shell revenue is still very small. The latest financial report shows that the revenue of Emerging and other businesses in the fourth quarter of 2021 was about 500 million yuan, less than 3% of the total revenue. Judging from this data, the shell still has a long way to go.