Except for not cultivating feelings, everything is cultivated. ”
The company that put this elevator magic in your head is going to IPO.
On January 29, Woodpecker International Inc. submitted an application for listing on the main board of the Hong Kong Stock Exchange. This home repair platform in Chongqing has a revenue of 73.5 billion yuan, net profit of 10.2 billion, reversing the previous low profit situation.
Dating back to 2004, the predecessor of the company was an individual industrial and commercial household in Chongqing that repaired refrigeration equipment, which was operated by the founders Wang Guowei and Wang Yuhua. In 2014, the two and Zhu Hongkun, the publisher of Chongqing Times, formed Chongqing Woodpecker.
Initially, Wang Guowei, Zhangshangtong and Zhu Hongkun held % and 1% of the registered capital respectively. By 2024, the company will go to Hong Kong for an IPO after successively receiving investment from Yao Jinbo, the founder of 58.com, Lei Jun, the founder of Xiaomi and Shunwei Capital.
The average per order is 254 yuan.
According to the documents, Chongqing Woodpecker provides one-stop solutions for various home maintenance needs in more than 300 cities. Services include home appliance repair, home appliance cleaning, home appliance installation, water and electricity repair, pipe dredging, lock replacement, waterproof leak repair, wall renovation, kitchen and bathroom remodeling, tile floor repair, door and window maintenance, furniture repair, and electronic products (such as mobile phones and laptops) repair.
Chongqing Woodpecker cites data from CIC Consulting, saying the company is the largest home repair platform in China. In the nine months ended September 30, 2023, there were more than 700 million transactions on the Woodpecker platform, with a total transaction value of 17900 million yuan,This represents an increase of 57 compared to the same period in 20228% and 655%。
In 2022, there were more than 6 million transactions on the Woodpecker platform, with a total transaction value of about 1.5 billion yuan, an increase of 41 percent compared with 20211% and 482%。
The order book is large and growing rapidly, but as of September 30, 2023, Woodpecker had only 1,757 full-time employees and 66 part-time employees; Woodpeckers do business with a huge number of third-party skilled workers.
Woodpecker's statistics: The average number of monthly active engineers on the platform increased by 62 from 7,092 in 20218% to 1. in 2022150,000 people. In the first nine months of 2023, monthly active engineers reached 1840,000 people. Woodpecker has established more than 400 engineer stations across the country for professional training, technology and chain support.
With its self-developed digital system, Tiangong System, Woodpecker connects a large number of capable skilled workers with users across the country.
Users can place orders through a variety of channels, including the Woodpecker app, WeChat Mini Program, Live Chat, and third-party partner platforms such as Intracity. Once an order is received, Woodpecker's smart dispatch system matches the order with the engineer whose skill set, availability, and geographic location best match the needs. The engineer who gets the dispatch contacts the user to determine a time for the on-site service appointment that is convenient for both parties.
The number of service orders increased from approximately 4.3 million in 2021 to approximately 6 million in 2022 and further to approximately 7.1 million in the first nine months of 2023. The average transaction value per order increased from 231 in 20218 yuan increased to 243 in 2022$5 and as of the end ofIn the first nine months of 2023, it further increased to 254$4.
Among them, the average transaction price of orders for home repairs is higher, at 292$1; The average price of home appliance repair orders was 228$6.
Heavy money for traffic.
The above-mentioned order model has achieved the most important income of woodpeckers, accounting for about 9 percent.
Woodpecker charges the engineers it works with, treating them as customers of the platform's services. 2021, 2022 and the nine months ended September 30, 2023The revenue generated by the Company from the platform services was RMB35.8 billion yuan, 5$3 billion and $66.5 billion yuanrespectively accounted for the company's total revenue. 2% and 904%。
At the same time, Woodpecker also provides spare parts and materials to engineers, and a number of home appliances to users. This part of the income is not high, less than 10%. In 2021, 2022 and the first nine months ended 2023, the revenue generated from product sales was approximately 37.8 million yuan, 59.1 million yuan and 66.9 million yuan, respectively, accounting for the total revenue. 9% and 91%。
Woodpecker also provides corporate maintenance services to corporate clients, including property management companies. In 2021, 2022 and the first nine months of 2023, this part of the revenue will be 5.4 million yuan, 5.3 million yuan and 3.3 million yuan respectively, accounting for: 9% and 05%。
In terms of costs, Woodpecker's sales and marketing expenses mainly include: expenses incurred in acquiring user traffic from major Internet platforms; expenses incurred in general advertising and promotion of the brand; Salaries of relevant personnel.
In 2021, 2022 and the first nine months of 2023, Woodpecker's sales and marketing expenses were 1., respectively7.8 billion yuan, 29.1 billion yuan, 31.8 billion yuan, accounting for total revenue. 2%。
This means that 4-5% of the company's total annual revenue is used for traffic acquisition, platform services, and advertising expenses, such as the circular ** "Except for feelings, everything is repaired." ”
In the past 3 years, the top five suppliers of woodpeckers are all related to this, mainly including:Paying traffic acquisition fees to major internet platforms for service orders; Pay commissions to major internet platforms for orders to be referred to the Woodpecker platform for subsequent completion by partner engineers; and mainly collect advertising fees from offline channels such as elevator advertisements and LED billboards.
Taking the first nine months of 2023 as an example, the five major ** merchants received orders worth 56.8 million yuan, 44.3 million yuan, 24.5 million yuan, 20.8 million yuan and 19.3 million yuan from woodpecker respectively.
Such an investment made it difficult for Woodpecker to make a profit in the past few years. The company's net profit was 33.4 million yuan in 2021 and only 6.2 million yuan in 2022 (mainly due to the loss due to the change in the fair value of the paid-in capital with priority rights of Chongqing Woodpecker in 2022). In the first nine months of 2023, the situation reversed, with a net profit of 10.2 billion yuan.
Adjusted net profit (non-IFRS measure) increased significantly to $23.6 million in 2021, $42.8 million in 2022 and 14.8 billion yuan.
Business logic. The significance of the woodpecker business is to solve the problems that have always existed in the home maintenance industry through innovative ways, such as non-standardization, information asymmetry, and chaos.
About**, Woodpecker introduced: When users place service orders, they will choose services based on what they think exists. The co-engineer will carefully assess and verify the reported problem upon arrival at the user's residence. The pricing calculator on the Woodpecker platform then uses a digital pricing formula to automatically generate an all-inclusive**, eliminating the need for manual estimation and repeated communication. Once the user receives and confirms**, there will be no hidden fees or unexpected charges.
In practice, however, it is difficult to do without controversy. On the Black Cat complaint platform, there have been 166 complaints about woodpecker maintenance in the past 30 days, most of which are related to charges.
On the 58 cityLooking for waterproof leakage, accurate leak detection **2100 yuan, after the investigation of the market ** only 500 to 1000, woodpecker home maintenance is several times higher than the market, requiring a refund of the extra cost. ”
The woodpecker repairman replaced 3 ordinary LED ceiling lamps and charged 933 yuan! The details told by the other party are as follows: the working hours of the three lamps are 223*3, and the material cost of the bulb is 86*3, and I am puzzled by these three working hours, because it is completely less than an hour ......In the end, I received a refund of 400 yuan, but I need to make further complaints about the cost of materials and man-hours. ”
Consult Woodpecker customer service in Meituan,The maintenance master came to repair the faucet, and charged the old man a triangle valve worth more than a dozen yuan and the maintenance fee was 219 yuan without informing me, which was ridiculously expensive! ”
I bought a TV online and installed it in a hurry** There is a woodpecker installed underneathThe platform is selected. The merchant originally installed the package, but he couldn't find the master to use this platform, and after asking **, he told me that 268 one, two more than 500 ......Later, the TV merchant said that 150 had a master to install, only to know that the gap was very large! ”
For **, Woodpecker explained in the prospectus,"The strategy is designed to balance fairness and market competitiveness".:** decisions are based on a range of factors, including service fees charged by engineers, spare parts and material costs, and competition in the market; Company adoptionData-drivenBy closely evaluating business data, incorporating user feedback, and taking into account order acceptance rates, the aim is to continuously refine and adjust the service structure.
The number of orders on the woodpecker platform is huge, and the above 166 complaints may not represent the real overall satisfaction. The company cited a consumer survey conducted by CIC to prove that more than 90% of service orders were obtainedFive-star review；99 percent of consumers who participated in the survey and used the Woodpecker service6% of consumers would be willing to choose or recommend it to others again.
Snatch the new king
Home repair services are a huge market, but there is no new king yet.
From 2018 to 2022, China's home repair market grew at 7The CAGR of 8% compared to the CAGR of 9 for the home appliance repair market and the home repair market over the same period5% and 69%。According to CIC, China's home repair market was valued at RMB669.5 billion in 2022 and is expected to reach RMB984.9 billion in 2027The CAGR from 2022 to 2027 is 80%。
With the combination of the Internet and life services, various APPs emerge in an endless stream. In the field of maintenance, Woodpecker has many competitors, including Master Wan, which was established in Shenzhen in 2013, Luban Daojia in Shenzhen in 2015, 91 Chang Repair Warranty in Beijing in 2018, and "Jingdong Service +" launched by JD.com in 2018; As well as more focused on cleaning, nanny services of the swan to the home, light joy to the home.
Woodpecker cited the size of four of its competitors: in the first nine months of 2023, the two Beijing-based platforms traded about 1 billion yuan and 700 million yuan, respectively, and the two companies in Nanjing and Shenzhen were 600 million yuan and 200 million yuan. All four platforms were born between 2016-2018.
Financing helped Woodpecker lead the market. Since 2018, Woodpecker has gone through Series A, B, B+, and C rounds of financing, and the Series C financing will be completed on January 26, 2024. Lei Jun joined the ranks of woodpecker investors in 2017, and Suzhou Shunwei and Xiaomi's Tianjin Jinmi each held 178%；Yao Jinbo's 58.com Dreamlanding Holdings Limited holds 1189%, 58.com also holds 453%。
A group of controlling shareholders composed of the brothers and sisters of the founder of Woodpecker, the intermediate shareholding entity, and Chongqing Niuniao, etc., control a total of about 5532% interest.
The last financing information of 91 Changxiu Bao stayed in 2021, with the participation of Beijing Ruiqian Xinsheng Investment Management Center. In 2021, Swan Daojia, who was born in the 58.com system, also submitted a listing application to the New York Stock Exchange, but after continuous losses, there was no follow-up.
Regarding competition, Woodpecker warns that some competitors at present or in the future may have more adequate funds, better technology or market resources than they do. These competitors may invest heavily in promoting and marketing their services, expanding their product offerings, and providing more incentives to users and engineers, potentially impacting their market share.
Therefore, regarding the use and future of listed funds, Woodpecker plans to diversify service categories and expand the service network and service scope; further upgrading the platform and strengthening data analysis capabilities; Continue to recruit new co-engineers and provide training programs, technical support, and more to retain them.
At the same time, the company will also seek strategic partnerships, investments and mergers and acquisitions – while adhering to the organic growth strategy, it will actively focus on helpingConsolidationinvestment and M&A opportunities.