Original title: Market News | The stock price has doubled 200 times and is there still a shortage of money? Shell's search for a house is in a profit dilemma Source: 36Krypton
It has been less than 100 days since the listing, and the stock price of Shell Housing Search has increased by a cumulative total of 196.75%. But that may not be enough; Shell House Search has begun seeking a new round of financing.
On November 19, Shell House Search announced that it would sell 35.4 million shares of American Depositary Shares (ADS)Additional issuanceThe price is set at 58 US dollars per share. Underwriters have the right to purchase up to 5.31 million additional ADS shares within the next 30 days. It is expected that this additional offering will be completed on November 23, 2020.
In other words, the Shell House Search Program raised nearly 2.1 billion US dollars in this deal.
According to the third quarter earnings report released by Shell on Tuesday,net profitThe sharp decline has become the focus of attention. During the reporting period, the company's net revenue was RMB 20.5 billion, up 70.9% year on year, but net profit was RMB 75 million, down 80% year on year.
All along, in order to speed up market occupation, shell housing search has implemented a strategy of losing money and burning money in exchange for scale.
Financial reports show that the company's internal commission and remuneration costs for the third quarter were 6.6 billion yuan, an increase of 36.2% over the previous year, while costs split between agents and other channels increased to 7.7 billion yuan from 3.2 billion yuan last year.
By the end of September, the number of stores linked to the Shell platform had exceeded 44,000, an increase of 41.7% over the previous year, and the number of platform brokers increased 50.7% year on year.The increase in the number of brokers within the platform has led to a significant increase in costs and expenses relating to platform commissions.
Apart from the cash flow pressure that Shell Searches itself faces, its subsidiaries are not very peaceful at ease.
Recently, the eggshell apartment crisis has continued, causing the market to show pessimism about the long-term rental apartment circuit. As a leading company on the racetrack, Ziru has also fallen into “defaulting on contract” incidents many times.
According to Shell's official approach to housing, the additional proceeds will mainly be used to expand the company's service products, expand into new growth areas, invest in infrastructure to track potential strategic business opportunities, and be used for working capital and general corporate purposes.