Amidst the wails of bankruptcy，Qingke Apartment is very likely to become the first long-term rental apartment brand in China to successfully IPO。

October 7th, Eastern Time，Qingke Apartment officially submitted a prospectus to the U.S. Securities and Exchange Commission，Plans to raise up to US$100 million in the form of issuance of ADS (American depositary shares)，Morgan Stanley and CICC will jointly serve as underwriters of this IPO。

According to its prospectus，The funds raised from this IPO will be used to expand the number of apartments and rooms covered，The second is to invest in technology and infrastructure，The third is for general operating purposes。

Compared to Danke Apartment and Ziroom, which were previously rumored to be listed in the United States，Qingke Apartment seems to be the first long-term rental apartment listed overseas。But at the same time，Yeru Apartment in Henan、Guochang Apartment in Hangzhou has been hit by thunderstorms recently。

For an industry that is in quagmire，The 188bet app download fact that Qingke Apartment submitted a prospectus may not bring more confidence to the market，On the contrary, it is still endless reflection。

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Based on public information，Qingke Apartment was established in 2007，Officially started apartment rental business in 2012。

Qingke received angel investment from Newcom Venture Capital，And successively obtained Dachen、Saif、Kaixin Capital、Investments from Morgan Stanley and other institutions。Completion of Series C financing as of 2018，The total scale of Qingke Apartment’s four rounds of equity financing exceeded US$100 million。

Source: Qixinbao

It is reported，Qingke Apartment mainly targets young urban tenants aged 20-35，Mainly distributed apartments，Provide unified decoration products between 1,000-2,000 yuan。As of December 31, 2018，Qingke Apartment operation covers Shanghai、Suzhou、Hangzhou、Nanjing、Wuhan、Beijing、6 cities in Jiaxing，has a total of 91234 rooms。

But judging from the proportion of houses，Shanghai is Qingke’s main market，Has more than 60,000 listings。

Qingke Apartment layout and housing availability in each city

Displayed in the prospectus submitted by Qingke Apartment，As of December 31, 2018，Qingke Apartment has a compound annual growth rate of 114.4%。Its revenue in fiscal year 2017 and 2018 was 5.2.2 billion yuan and 8.8.9 billion yuan，And in the first three quarters of fiscal year 2019，Revenue has exceeded the full year of 2018 and reached 8.9.8 billion yuan，A year-on-year increase of 51.435%。

actually，Compared with other dispersed long-term rental apartments，There 188bet Online Sports Betting and Casino is no difference in the model of Qingke Apartment。Despite good growth over the past few years，But Qingke failed to achieve profitability。

its prospectus shows，Qingke was at a loss in both fiscal years 2017 and 2018，Net profit is -2 respectively.4.5 billion yuan and -4.9.9 billion yuan，As of June 30, 2019，Qingke’s loss in the first three quarters of fiscal year 2019 was -3.7.3 billion yuan，16 year-on-year expansion.72%。

Just looking at this year’s data，Qingke’s operating loss in the second quarter of 2019 was 1.2.1 billion yuan (approximately 17.65 million US dollars)，Operating loss in the previous quarter 1.0.3 billion yuan，Operating loss in the same period last year 1.1.7 billion yuan。Operating profit margin is -39%，-51 for the same period last year.5%，-35% last quarter。

Obviously，Although they submitted the prospectus before Ziroom and Danke，But Qingke Apartment failed to solve the problem of continuous losses。

The long-term rental apartment market will be difficult to get out of the quagmire in the short term

actually，Although Qingke Apartment submitted the prospectus，But this does not mean that its road to IPO will be smooth sailing。

This can be seen from WeWork’s suspension of IPO，The capital market will no longer provide financial support to companies that have not achieved profitability。

To this，Morgan Stanley chief U.S. equity strategist Mike Wilson said，The failure of WeWork’s IPO marks the end of an era。Wilson said，"Investors have stated，They are no longer willing 188bet sports betting app download to pay for overinvestment”。Before this，U.S. stocks have been paying eye-popping valuations for IPOs that didn’t turn a profit。

The failure of WeWork’s initial public offering may affect the IPO path of Qingke Apartments, which also failed to achieve profitability。

Also，It can be seen from the prospectus submitted by Qingke Apartment，Qingke has not been able to get rid of the growth method of losing money in exchange for market，Lack of effective hematopoietic ability。In order to meet large capital needs，Most Qingke rely on financial leasing、Capital support provided by rental loans and credit lines granted by banks and other financial institutions。

2018，The long-term rental apartment market that has been booming for more than three years has encountered a "thunder wave"。Since most companies are eager to compete for market share and number of properties，Ignored the management and control of its own internal organizational structure and the polishing of its operating model，And there are generally problems in the capital chain。

Over the past year，Including Lejia、With love、Hangzhou Dingjia、Shanghai Yujian、Many long-term rental apartment brands, including Beijing Haoyuan Hengye, have had their capital chains broken、Declared bankruptcy due to rental loan and other issues。

The thunderstorm events in the past year or so have fully demonstrated，In the current era of relative absence of supervision and regulations，In the long-term rental apartment industry, which advocates economies of scale，Losing money and making money is the choice of most players。

Just before and after Qingke submitted the prospectus，Yeru Apartment in Henan、Guochang Apartment in Hangzhou is also experiencing thunderstorms，The haze over the industry is still there。How to balance scale and cost control，Still testing every player on the track。

*Source of this article: Titanium MediaTi, author: Gao Mengyang, original title: "Qingke Apartment will go to the United States for IPO，But it cannot boost the "stagflation" long-term rental apartment industry》.