In 2021, wework pioneer in the co-working industry went public, but the valuation fell again and again; At the beginning of 2022, Ucommune, the leader of domestic office brands, was in a crisis of equity freezing. Not only that, the occupancy rate is a life-and-death disaster in front of small and medium-sized office brands... Co-working, an industry that has been sought after by capital, seems to have entered an awkward position.
When the outlet is no longer there, it is difficult to get the favor of the capital market by telling stories alone, and the sustained profitability of enterprises is increasingly valued. If the co-working industry wants to survive, it is most urgent to find sustainable means of profitability.
At a time when the office industry was once in a gloomy situation, the performance of Chuangfugang was in stark contrast.
In the 2021 semi-annual report, Chuangfugang achieved revenue of 311 million yuan and net profit of 15.29 million yuan, maintaining rapid profitability after the epidemic. Even under the impact of the epidemic in 2020, Chuangfugang has achieved operating income of 588 million yuan, operating cash flow of 120 million yuan and net profit of 40 million yuan.
As a rare brand in the co-working industry that has been profitable for many years, what is the secret of Chuangfugang? In addition to the extreme use of office space and the harsh choice of property, refined operation is the wealth code for the sustainable profitability of Chuangfugang.
Asset-light, heavy empowerment
Chuangfugang strives for digital services
Small and medium-sized enterprises are the source of living water for China's economy, and they are also a strong proof of the strong resilience of china's economy. According to the data of Tianyancha App, as of July 11, 2021, the number of new enterprises established nationwide in 2021 was 13.8986 million, an increase of 37.64% year-on-year, of which 9.393 million new individual industrial and commercial households were established, an increase of 1.849 million over the same period last year.
On the one hand, the increase in entrepreneurial enterprises, on the other hand, their dependence on digital services is gradually deepening. Limited by the limited operating budget and daily management challenges of start-ups, digital office can provide greater assistance to enterprises.
The products and services of most domestic parks and office spaces are relatively rough, and digital products are less involved.
This creates market opportunities for companies that have the ability to export value-added services such as digital products.
Unlike most brands in the industry, "value-added services" have been raised to a position of equal importance to "space operation" by Chuangfugang. Xue Chun, chairman of Chuangfugang, believes that in the office field, the needs of enterprises are far more than the rental of space, but also can extend a lot of content. "One of the things I've always wanted to do is to lengthen and make the service link long and lifelong."
Based on such strategic considerations, Chuangfugang established a "Digital Promotion Department" at the beginning of 2022.
First of all, on the basis of the original business, Chuangfugang launched digital software services such as Xiaodi Cloud and Fangyuanjian to solve the problem of office efficiency of small and micro enterprises, and also empower its own management and broaden the profit points of value-added services.
Generally speaking, the financial bookkeeping of enterprises needs to be responsible for by special personnel and has a certain threshold. Chuangfugang independently developed the Small Disc Cloud Fiscal and Tax Management Saas Platform, which integrates the traditional way of accounting and tax filing and management into IT processes. In addition to the general accounting voucher entry function, the small disk cloud financial software also realizes the automatic generation of vouchers, real-time viewing of reports, automatic data collection into accounts, automatic depreciation and carry-over of profit and loss, mobile terminal reading, progress statistics and other special functions, output to the financial and taxation company for accounting use, small and medium-sized enterprises for self-use, has opened 3w + enterprise account set.
In addition, on the data docking of banks and tax bureaus, clerks can directly import Excel tables and complete automatic data processing on the small disk cloud.
"IT is the future and must be embraced." This sentence has been emphasized by Xue Chun, chairman of Chuangfugang, and implemented in the ground. Compared with its peers, Chuangfugang has invested heavily in scientific research. According to the financial report, Chuangfugang invested 9.606 million yuan in research and development in 2020, an increase of 57.4% over the same period in 2019.
It is the continuous investment in IT technology that has led to the unique operational efficiency and profitability of Chuangfugang today.
Compared with the small disc cloud focusing on financial tax reporting, Fangyuan has opened up all aspects of the daily management of the enterprise. "Fangyuanjian" integrates one-stop services such as "cloud space, cloud services, cloud social, cloud office, cloud cashier, cloud finance and taxation", and is committed to creating a collaborative space and mutual assistance community with entrepreneurs to help enterprise customers achieve daily office better and faster.
On the "Fangyuanjian" platform, it can not only realize the real-time information communication of enterprise employees, but also skillfully combine the change of capital flow in the business process of the enterprise with the flow of office information.
It is reported that "Fangyuanjian" has fully opened up channel cooperation with China Merchants Bank, and is the first software in the co-working market to open up the bank's omni-channel services.
Registration, industry and commerce, finance and taxation, etc. are the most basic and just-needed functions needed by small and micro enterprises. Chuangfugang has made it the ultimate, solving the pain points of enterprises through "high efficiency and low cost", and winning the foundation for itself to be at the forefront of the industry.
Secondly, managing databases is an important and complex task for businesses like Chuangfugang, which has many customers and money transactions. Chuangfugang independently developed the BCMS platform of business management system, from site selection and store opening, to customer follow-up, membership management, contract management, account management, human resources, etc., to comprehensively improve the operational efficiency of enterprises. The platform has become the pillar of the entire management background of Chuangfugang, and has also provided management grips for other settled enterprises.
Chuang fu gang's digital services have been recognized by the market.
Recently, Chuangfugang and Juniu Venture Space officially signed a cooperation agreement. Chuangfugang will provide Juniu Venture Space with its own software system developed and owned by copyright and ownership, including the intelligent office system of BCMS Business Center, the enterprise service platform of Fangyuanjian, the intelligent financial and taxation Saas software of Xiaodiyun, as well as the marketing platform such as meeting room mini program and office rental mini program. Chuangfugang will also provide software technical services and maintenance services during the cooperation period according to the needs of Juniu's entrepreneurial space.
Explore asset-light models
Technology empowers industrial parks
In addition to software services based on IT technology, what empowerment can Chuangfugang bring to the industry? Xue Chun, chairman of Chuangfugang, focused his attention on industrial parks with widespread problems in operation and de-decentralization.
With a rare office project occupancy rate of more than 95% in the industry, Chuangfugang has sufficient reasons to export investment promotion and refined operation capabilities.
With the blessing of digital products such as bcMS platform, the refined operation ability of Chuangfugang is more prominent in the industry. The ITization of business processes not only effectively improves operational efficiency and reduces operating costs, but also greatly enhances the landing possibilities for trying to output products and management, especially in the dematerialization and operation of industrial parks.
The digital information system of the industrial park with the BCMS management platform as the core can help the industrial park complete the six core businesses such as expansion and transformation management and park sales control management.
Empower the "Chuangfugang +" business of industrial park marketing, and assist the industrial park to quickly dematerialize and achieve a high occupancy rate through an independent team and a full-staff marketing mechanism.
"For example, shenzhen has 7,000+ industrial parks, and there are hundreds of thousands of industrial parks across the country, the market space is huge, and the demand for our software is relatively large." After the resources of the industrial park enter the platform, Chuangfugang will take advantage of this to provide in-depth services to tenants and explore the co-working 3.0 model at a low cost and efficient rate.
At present, "ChuangfuGang +" has received the response of many industrial parks, and has signed contracts with local industrial parks in Guangzhou and Shenzhen.
Sprint IPO
Digitalization continues to increase the size of Chuangfugang
With a variety of new businesses, Chuangfugang is transforming into an all-round office service provider with a lighter model and wider empowerment, and in order to build brand differentiation competitiveness and explore more diversified profit growth points.
As a professional third-party institution in the office industry chain, Chuangfugang has a deeper understanding of the meaning of "empowerment". "Striking iron also needs to be hard", only if it is strong enough, can it have the strength to export to the outside world. For the industry of co-working, which is heavy on services and difficult to make a profit, it is especially important to cultivate their own internal strength and polish the details.
The way to deal with the details of Chuangfugang is to strengthen digital operations through the IT genes that have long been integrated into the blood of the enterprise. "Coworking is an extremely hard job, and you have to work on the details continuously." Xue Chun said frankly. Chuangfugang is precisely to empower space, empower management, empower services...
Thanks to the IT genes of Xue Chun, chairman of Chuangfugang, and the founding team, since its inception, IT technology has been regarded as the foundation of the enterprise, and has continued to deepen digitalization.
Recently, Shenzhen Chuangfujin Technology Co., Ltd., a wholly-owned subsidiary of Chuangfugang, has obtained the certificate of "high-tech enterprise" and become a national high-tech enterprise.
It is reported that Chuangfugang, which has been on the new third board in 2016, has now put the listing on the agenda. The capital market has always focused on the profitability and operational capabilities of enterprises. Capable people can't, the wealth creation port that masters the digital operation capabilities has undoubtedly gained more chips, and has also brought new enlightenment to the co-working industry.
epilogue
Compared with the hot capital market in previous years, the current office environment has been greatly different. But the market demand for co-working is real. Some insiders said, "The co-working industry needs to think calmly after the capital cools and the outlet recedes, and gradually transforms and iterates, enters a new stage, and tries more new models." ”
In fact, for the so-called "new model", at the beginning of its establishment, Chuangfugang envisaged the construction of a "Chuangfugang" (office space), "Chuangfu Network" (Internet of Things connects online and offline spaces, build a community ecology), "Chuangfu Card" (enterprise financial services) Trinity of entrepreneurial service platform, the current "Chuangfu Network" and "Chuangfu Card" have found a breakthrough from digital operations, and continue to deepen the creation of value for enterprise customers.
In the ever-changing and innovative office industry, Chuangfugang has been firmly aiming, concentrating firepower on attacking a goal, and focusing on the common growth of the industry, vowing to be the Huawei of the co-working world.