Can the two Internet giants bless the "first share of real estate" to solve the pain points in the industry?

Pan Jun finally determined his "network overlord".

Recently, Color Life Service Group Co., Ltd. (1778, HK; According to the announcement, the company has reached a comprehensive strategic cooperation agreement with JD.COM Group and its subsidiaries Jingdong Logistics Group and JD.COM Digital Technology Group (collectively referred to as "JD.COM"). COM) and 360 Security Technology Co., Ltd. (hereinafter referred to as "360 Company") in terms of capital and business.

According to the announcement, Color Life will issue 765,438+065,438+05,000 shares and 22.96 million new shares to JD.COM and 360 respectively at HK$ 5.22 per share, involving HK$ 37,654,380+02 billion and HK$ 65,438+02 billion respectively. The transaction is expected to be completed before the end of August. After the transaction is completed, JD.COM will hold 5.00% of the enlarged share capital of Color Life, and the shareholding ratio of 360 Company will increase from 65,438+0.54% to 3.05%.

The reporter of China Business Daily noticed that as the first property company in the Mainland and the largest property company under management, the current valuation of Color Life is still lower than that of most of its peers, which is an insurmountable hurdle. At the same time, the real "pain point" of the property management industry is the rising rigid cost of property and the property fee that is difficult to rise. Then, with the blessing of the two Internet giants, can color life solve the pain points of the industry and get out of the predicament of low valuation?

Source: Annual Report of the Company in 20 18. Unit: 100 million square meters.

"It will not fully develop into e-commerce"

Pan Jun, Chairman of the Board of Directors of Color Life, said earlier that 70% of offline users of Color Life have not become online users, so it is necessary for the Internet to develop just-needed applications (such as opening doors and parking). ) and highly interact with offline owners. "Property community service will definitely be a bigger industry than real estate in the future, and it is naturally connected with the Internet. So now Internet companies are coming to cooperate with us. When we think about it clearly, there is a great possibility of cooperation. "

In the end, Color Life chose JD.COM. Pan Jun thinks that JD.COM. COM's strategic layout in logistics, technology and ecology, as well as 360' s long-term accumulation in safety and technology, can be combined with color life, thus enhancing the platform service capability, accelerating scale expansion and increasing value-added service income.

In recent years, Cai Life has always wanted to run on the track according to the thinking of the Internet. JD.COM, the retail giant. COM's shareholding and 360' s increase in holdings also made Color Life officially show its Internet effect to the outside world. At the same time, color life has also slowed down the M&A activities that the market has been worried about, but it will take time to test whether all this can be truly recognized and let the capital market have a new understanding of the valuation of color life.

It is worth noting that with the development of smart cities and smart communities, the combination of community scenes and technology applications has become a trend.

The community scene can be said to be a treasure trove of feng shui that e-commerce giants began to compete for. JD。 Choose colorful life, but also value the trading flow behind it. Based on the expansion of color life property management scale, its online platform Caiyun reached165438+22 million square meters by the end of 2065438, ranking first in the industry.

Constantly expanding the area of offline property management is the first step to realize the internet effect of color life. The National Business Daily reporter learned that Tang, CEO of Color Life, had previously said that color life almost completely deconstructed the property industry and reconstructed it according to Internet thinking. The community service ecosystem built by Color Life includes online and offline platforms, with an offline service area of 2.5 billion square meters in 2020. The logic of this goal is that if the platform wants to achieve the Internet effect, it must be on such a large scale. "Otherwise, our platform will be killed sooner or later, so doing the Internet is a terrible thing."

"If a platform wants to achieve the Internet effect, it generally accounts for more than 15% of the users in the whole market. At present, the effective area of property management in China is nearly 654.38+05 billion square meters, so the color life must reach 2.5 billion square meters. " Don thinks so.

The National Business Daily reporter noted that the online value-added business of Color Life has included the e-commerce sector. In the early days of Cai's life, we also tried to get through a part with him-the "Cai Hui Life" APP, which mainly purchased platform products or services through the mobile APP.

The management of Color Life said that in the future, the company will launch JD.COM Home, 7Fresh and other products on Caiyun platform to explore the mode of "community shopping". "At the same time, it should be emphasized that color life will not fully develop into an e-commerce, but only help e-commerce to do better in the community."

A senior person who specializes in property management companies told the reporter of National Business Daily that the introduction of color life into JD.COM, a retail platform, has also subtly changed its role. It used to be the platform itself, but now it has become a "platform of the platform". There should be more than just advertising revenue in the cooperation between the two parties. However, the cooperation model is still in the initial stage of exploration, and may not have generated substantial income at this stage.

This person said that from the perspective of 360 and JD.COM, because the concept of community O2O was very popular in the past, it was actually implemented very little. After years of rational development, JD.COM is still mainly online, and it is urgent to find an offline platform.

The profit model is still unclear.

Building Internet thinking and introducing retail giants will increase traffic and improve user stickiness for both parties, but as a business model, profit is also a question that must be asked.

According to the management of Color Life, in fact, the cooperation with JD.COM or other e-commerce companies is mainly to help owners get better products and services, and on this basis, get preferential treatment for property fee reduction.

The so-called "getting preferential treatment to reduce the property fee" means that the property fee is not paid in the traditional way (that is, the property company requires the owner to collect it), but through the owner's consumption on the living platform in Cai Hui, and the merchant rebates the owner and then pays the property fee, which becomes the online saying that "the wool is on the pig".

Tang believes that the real "pain point" of the property management industry is the rising rigid cost of property and the difficulty in collecting property fees, and the "Cai Hui Life" platform can well solve the "pain point" of these industries.

However, in an interview with the Business Daily reporter, Tang said that Cai Life will not make money on the platform of life insurance for at least the next three years. The purpose of "Pratt & Whitney Owners" is to establish a flow platform for "Cai Hui Life".

Due to the high gross profit margin and huge business space, most property companies have carried out value-added services at present, but Tang said that most of the profits of many peer value-added services are not from the platform, but from the entity operation, and almost all the profits of Color Life are contributed by the profits of the platform.

In addition, Color Life said that the cooperation with JD.COM will not make substantial profit contribution except for increasing part of the revenue from social media advertising. What they value now is that after the car owners connect with the Cai Zhiyun platform, they can use it as the entrance of data traffic in the future.

The capital market is good at telling stories. Whether the market buys it or not, sometimes the story is wonderful or not, and sometimes it is real money. Whether the colorful life with low valuation can be turned over by the internet effect may require more catalysts.

Galaxy Securities Research Report pointed out that PE is relatively backward in the industry because it has the highest debt in the industry after a series of mergers and acquisitions. The introduction of two internet giants should partially eliminate this part of the impact and may provide opportunities for re-rating.