On December 24th, the board of directors of Beike-W (HK02423, stock price HKD 47.9, market value HKD 173.6 billion) announced that the company has terminated its equity acquisition agreement with Space Intelligence and all existing shareholders through Beike Meijia in accordance with the provisions of the relevant equity acquisition agreement.
Beike's acquisition of Space Intelligence began in October last year. The latter is the main body of the Beijing home decoration brand Love Space and provides standardized home decoration services in 14 cities across the country. This transaction was originally planned to be completed in the first half of this year, with a consideration of no more than approximately 1.55 billion yuan.
According to the financial report, in the first half of this year, Beike's net income was 39.7 billion yuan, with a net profit of 2.333 billion yuan. Among them, the net income of home decoration and home furnishing business was 6.449 billion yuan, a year-on-year increase of 59.9%.
According to public information, AiSpace brand has completed at least eight rounds of financing, and has received support from Gome Capital, Nature Home, Hongxi Investment, etc., known as "the first Internet home decoration company in China".
However, according to the previously disclosed announcement by Beike, in 2021, Love Space achieved a total revenue of 1.376 billion yuan and a post tax loss of approximately 25 million yuan; In 2022, the total revenue was 1.385 billion yuan, with a post tax loss of approximately 93 million yuan. The total loss amount for two years is about 118 million yuan. In 2022, the revenue growth rate of Love Space is less than 1%.
Regarding the reason for the termination of this acquisition, Beike only stated that after careful consideration, they believe there are uncertain factors in achieving the delivery conditions. As of the date of this announcement, the company has not paid or paid any consideration for the proposed acquisition.