On October 11, Housing industry digital service platform Shell Holdings Co., LTD. (NYSE: BEKE; 02423.HK) announced that Shell and Love Space signed an equity acquisition agreement, Love Space will become its wholly-owned subsidiary after the completion of the acquisition, and the transaction consideration will not exceed about 1.55 billion yuan. Subject to completion of closing conditions, the transaction is expected to close in the first half of 2024.
The announcement shows that Love space is a leading enterprise in the standardized one-stop assembly service in the industry, and is one of the most recognized home improvement enterprises in the country represented by Beijing. The acquisition will further enrich Shell's home improvement brand and product matrix, meet the needs of a broader user base, improve customer conversion, and enhance supply chain and delivery capabilities, achieving accelerated breakthroughs in the Company's home improvement business.
Public information shows that Shell in 2021 to carry out the "one and two wings" strategic upgrade, in-depth home improvement home circuit, in July this year to upgrade to the "one and three wings" strategy, around the user "live well" continued to strengthen the ability to layout.
According to the data disclosed by Shell, in the first half of this year, shell achieved GTV1.75 trillion yuan, an increase of 43%, net income of 39.8 billion yuan, an increase of 51%, and adjusted net profit of 5.93 billion yuan in the first half of this year.
From the perspective of home improvement business performance, the contract amount of home improvement in the first half of the year exceeded 6 billion yuan, with a year-on-year increase of 107%; Revenue of 4 billion yuan, a year-on-year increase of 76%.
Shell believes that through the full practice of its brand bedding assembly and Suncapital assembly, Shell's methodology in the field of home improvement has been verified, making the acquisition more long-term strategic certainty.