Not waiting for the property market to pick up, real estate intermediary Q real estate network announced that it planned to close all stores in Shanghai.
On March 8, surging news learned that Q room network issued a notice within the company, saying that in view of the current situation that Shanghai Yunfang Data Service Co., Ltd. continues to suffer losses and is unable to maintain normal operation, in order to prevent the further expansion of operating losses and maximize the protection of employees’ rights and interests, based on the preliminary communication with Shanghai Yunfang management team in the early stage, after careful research by the headquarters of the group, Prepare the implementation plan for the closure of Shanghai Yunfang Data Service Co., Ltd. (Draft).
The implementation plan shows that from now on, Shanghai Yunfang headquarters will urge other employees to go through the resignation procedures within a time limit, in addition to retaining the necessary backstage personnel and debt clearing specialists; All businesses of Shanghai Yunfang store will be suspended; The ongoing stock business can continue to be completed, or the contract can be terminated unconditionally after reaching an agreement with the customer.
Business information shows that Shanghai Yunfang Data Service Co., Ltd. is 100% owned by Shenzhen Yunfang Network Technology Co., Ltd. (Shenzhen Yunfang), and Shenzhen Yunfang owns the brand of “Q room network”.
According to the internal staff of q-room.com, q-room.com owed part of the commissions in 2021 and the commissions payable in 2022 to the management of Shanghai regional salesmen and district directors on the grounds of “no money in the account”. At present, some of the above-mentioned employees are defending their rights and asking for salary at the Shanghai headquarters.
In this case, q-room.com also proposed a solution in the above implementation plan, that is, to encourage the existing team of Shanghai Yunfang to participate in the operation of q-room.com brand in Shanghai in the mode of franchise.
In other words, it is OK to continue to open stores, but they are not direct stores. Q room network opens its franchise to the existing teams of Shanghai company to explore the franchise business model.
The scheme shows that the existing management and broker teams in Shanghai can freely form a cooperation team and form a new company as a franchisee, and a single individual can also act as a franchisee and freely choose stores that can join; Franchisees raise funds by themselves and renew store leases with existing store landlords freely selected; The franchisee signs the franchise agreement with the headquarters of the group; From the date of signing the franchise agreement, the franchisee shall carry out relevant businesses under the brand of q-room.com within the scope of authorization, independently operate the franchise stores, bear its own risks and assume its own profits and losses.
According to the internal staff of q-room.com, q-room.com previously had more than 40 stores in Shanghai, and more than 20 stores have been closed in recent half a month.
According to the official website, Q real estate is a real estate Internet platform with o2o mode as the core and real estate transactions as the main business. The business layout covers new houses, second-hand houses, rental and other modules. Headquartered in Shenzhen, it has previously been deployed in Beijing, Dongguan, Foshan, Guangzhou, Hangzhou, Hefei, Jiangmen, Nanjing, Qingdao, Shanghai, Huizhou, Suzhou, Wuhan, Yangzhou, Zhuhai, Zhongshan and other places.
However, it also announced its withdrawal from a city in September 2021. According to the notice issued by Jiangmen Q Housing Network on September 3, 2021, due to the relocation of the company’s business office, all stores of the company will stop business from September 3, 2021.
It is worth mentioning that the major shareholder behind q-room.com is the listed company Hubei Guochuang Hi-Tech Material Co.Ltd(002377) ( Hubei Guochuang Hi-Tech Material Co.Ltd(002377) Hubei Guochuang Hi-Tech Material Co.Ltd(002377) . SZ). On January 3, 2017, Hubei Guochuang Hi-Tech Material Co.Ltd(002377) announced that it planned to purchase 100% equity of Shenzhen Yunfang Network Technology Co., Ltd. at the price of 3.8 billion yuan. Therefore, Shenzhen Yunfang (Q room network) is a wholly-owned subsidiary of Hubei Guochuang Hi-Tech Material Co.Ltd(002377) . The company’s main business of R & D and intermediary services in 2027 is changed to that of real estate.
However, on January 29 this year, Hubei Guochuang Hi-Tech Material Co.Ltd(002377) released the performance forecast for 2021. The data show that the net profit attributable to the shareholders of the listed company is expected to lose about 900 million yuan to 1.3 billion yuan in 2021; The operating income is expected to be 3.8 billion yuan to 4 billion yuan, and the operating income in the same period in 2020 is 4.398 billion yuan.
Hubei Guochuang Hi-Tech Material Co.Ltd(002377) said that one of the main reasons for the decline of the company’s annual performance in 2021 compared with the same period last year was the serious loss of real estate intermediary service business. On the one hand, affected by policy regulation, the operating income of Shenzhen, the main source of profit, fell sharply; Second, the company continued the policy of increasing the proportion of broker’s Commission in the second half of 2020, and the relevant variable costs increased more year-on-year. Although the proportion of broker’s Commission was reduced in the fourth quarter of last year, it had little impact on the decline of variable costs throughout the year; Third, in the first half of 2021, the company added about 400 stores and closed some inefficient stores, resulting in a large increase in relevant costs.
In addition, in 2017, Hubei Guochuang Hi-Tech Material Co.Ltd(002377) acquired 100% equity of Shenzhen Yunfang Network Technology Co., Ltd. through major asset restructuring, resulting in goodwill of 3219772500 yuan and intangible assets (trademarks) of 12 Suzhou Medicalsystem Technology Co.Ltd(603990) 0 yuan. In 2020, goodwill impairment of 291635900 yuan and intangible assets (commercial standards) impairment of 47039900 yuan have been accrued, At the end of 2020, the book balances of goodwill and intangible assets (trademarks) were 303413500 yuan and 79 million yuan respectively (audited). However, Hubei Guochuang Hi-Tech Material Co.Ltd(002377) said that based on the company’s current operating conditions and the analysis and prediction of future operating conditions, and since the company’s annual revenue still showed a downward trend year-on-year in 2021, it is expected that the company’s intangible assets (trademarks) may be further impaired.
The announcement also pointed out that the provision for impairment of receivables of Shenzhen Yunfang, a wholly-owned subsidiary, increased significantly. Most of the receivables of Shenzhen Yunfang are real estate development enterprises, and some real estate development enterprises have incurred risks such as debt default. The management of the company has carefully analyzed and evaluated the recoverability of the company’s receivables and believes that there are great risks. It is expected that the provision for impairment of the company’s receivables will increase significantly.
