As one of the leading pan-home furnishing companies, Easy Home decided to join forces with Alibaba to increase its capital and build an overseas financing framework platform for it, adding to the design ecological value platform of the large home furnishing industry.

The announcement on the evening of May 25th revealed that as a listed company’s shareholding company, Lie Flat Designer (Beijing) Technology Co., Ltd. (hereinafter referred to as "Lie Flat") is owned by Beijing Easyhome Investment Holding Group Co., Ltd., a wholly-owned subsidiary of the listed company 40%, and Alibaba (China) Network Technology Co., Ltd. (hereinafter referred to as "Alibaba Network") holds 60% of its shares. 

After this capital increase, Lie Flat' s registered capital is planned to increase from 1.2 billion yuan to nearly 1.5 billion yuan. Among them, Lie Flat or its related parties intend to subscribe for Lai Ping’s new registered capital of about 100 million yuan at a price of 176 million yuan. The new registered capital of RMB 154 million was subscribed for RMB 154 million, and ultimately the shareholding ratio of both parties remained unchanged.

At the same time, in order to build an overseas financing structure for Lie Flat, Alibaba Networks and its affiliates will set up companies overseas through related parties as Lie Flat' s overseas financing platform, and eventually Lie Flat' s overseas financing platform will indirectly hold Lie Flat 100% equity, and finally completed the establishment of the overseas financing structure of Lie Flat. At present, the matter has been approved by the board of directors.

The listed company disclosed that as of December 31, 2020, the total unaudited assets of Lie Flat Designer were 888 million yuan. Last year' s operating income was 8.43 million yuan and the net loss was 161 million yuan. The net loss in the first quarter of this year was 55.99 million yuan.

In the planning of Easy Home, the source of consumption in the home improvement and home furnishing industry is design services, and Lie Flat Designer is the platform responsible for expanding the self-operated and IP business track. As a home improvement and home digital design platform, the company takes the research and development of 3D design tools as the core to provide home designers and home furnishing companies with free professional tools and rendering services. 

At the same time, it relies on the Alibaba e-commerce ecosystem to help designers and companies get through the design and the entire product link provides consumers with a "what you see is what you get" design solution, and promotes the digitalization of the entire process of home design. At present, the total number of registered designers worldwide has reached 10 million, the number of real product models has reached 1 million, and the national house type library has reached 2.8 million.

According to the company' s executives, the company is now working with Lie Flat Designers to divert to home furnishing stores through designer operations, and through the complete combination of modelling, online and design schemes of the products on sale in the store, it is realizing the closed loop from design schemes to store purchases.

In terms of the construction of big data platform, the big data platform jointly created by Easy Home and Alibaba Cloud has completed the construction of platform capabilities, which is applied to marketing, investment promotion, chain expansion, internal decision-making, property management, etc., through Alibaba's mature big data platform. The data application ability revitalizes the data assets of Easy Home. At present, based on the basic capabilities of Ali's commercial operating system, a one-stop consumer-oriented home improvement service is built.

At present, the accumulative accumulative contracted stores of Easy Home has exceeded 700. Last year, the company's net profit fell by about 57% year-on-year to nearly 1.4 billion yuan. In the first quarter of this year, the company's net profit increased by 1.45 times year-on-year to 615 million yuan. However, the company's share price has fallen by about 28% since its peak in the enterprise and stage in August last year.