BEIJING, Aug. 31, 2023 – KE Holdings Inc. (“Beike”) (NYSE: BEKE and HKEX: 2423), a premier online and offline platform for housing transactions and services, has unveiled its unaudited financial results for the second quarter of 2023. The company also announced an extension and upsizing of the share repurchase program at a total consideration of approximately US$605.0 million, alongside a special cash dividend of US$0.057 per ordinary share, or US$0.171 per ADS, to holders of ordinary shares and holders of ADSs.
In the second quarter of 2023, the company reported strong financial growth across multiple metrics. The Gross Transaction Value (GTV) surged to RMB780.6 billion (US$107.6 billion), marking a 22.1% year-over-year increase. This was driven by a 16.0% rise in GTV for existing home transactions, reaching RMB456.5 billion (US$63.0 billion), and a 32.4% boost in GTV for new home transactions, which totaled RMB295.0 billion (US$40.7 billion). The GTV for home renovation and furnishing experienced significant growth, hitting RMB3.4 billion (US$0.5 billion) compared to RMB1.3 billion in the same period last year. Furthermore, GTV for emerging and other services increased by 16.6% to RMB25.6 billion (US$3.5 billion).
Net revenues for the quarter stood at RMB19.5 billion (US$2.7 billion), representing a 41.4% year-over-year increase. The company also posted a net income of RMB1,300 million (US$179 million), while the adjusted net income was RMB2,364 million (US$326 million).
On the operational front, the company maintained stability in its physical footprint, with the number of stores remaining constant at 43,000 as of June 30, 2023. The number of active stores was relatively flat year-over-year at 41,076. Employee strength also grew, with the number of agents increasing by 5.0% to 435,813, and the number of active agents rising by 7.6% to 409,054.
The Company, which initiated a share repurchase program in August 2022, has purchased approximately 41.0 million ADSs worth about US605.0million in the open market from September 2022 to August 2023. On August 31, 2023, the Company’s board of directors approved modifications to the existing share repurchase program, pursuant to which the repurchase authorization has been increased from US$1 billion of its Class A ordinary shares and/or ADSs to US$2 billion of its Class A ordinary shares and/or ADSs and extended until August 31, 2024. In addition to the share repurchase program, the board of directors approved a special cash dividend of US 0.057 per ordinary share,or US 0.171 per ADS, for holders as of the close of business on September 15, 2023. The total dividend payout will be approximately US$0.2 billion, funded by the Company’s surplus cash.
Mr. Stanley Yongdong Peng, Chairman and CEO of Beike, remarked, “With the recovery of China’s real estate and residential markets, in the first half of 2023, our operational and financial results have meaningful improvement compared to the same period of last year. Our results were also boosted by our focus on retaining service providers during the market correction, effective cost reductions and our ability to raise efficiencies companywide. At the same time, we rapidly expanded our emerging businesses, achieving breakthroughs in quality, scale and economic performance in our home renovation and furnishing services, as well as robust development and efficiency gains in our rental services. The combination of these initiatives placed us in a strong position to seize the expanding opportunity during market recovery and facilitated our ability to, once again, outperform the market.”
“Consumer demand in the residential services sector has largely pivoted from ‘home purchase’ to ‘better living.’ In response to evolving consumer needs, in July, we upgraded our corporate strategy to ‘One Body, Three Wings,’ adding Beihaojia as a third wing to facilitate supply-side upgrades for new homes. Our revised strategy targets better alignment of our products and services with consumers’ underserved needs. We are now covering a broader spectrum of residential industry that spans the areas of a house itself, housing transactions, rental properties, and home renovation and furnishing. The quality premium we provide in each of these service categories will create additional growth opportunities while prompting sustained and healthy development of the industry. We will also further empower our service providers to serve as bridges to better livings within communities and help them find their career fulfillments. We are in the foothills of the next mountain on our quest to advance our mission of ‘Admirable Service, Joyful Living,’ and we look forward to the exciting road ahead,” concluded Mr. Peng.
Mr. Tao Xu, Executive Director and CFO of Beike, added, “During the second quarter of this year, China’s housing market sustained its recovery momentum, although the pace was more moderate compared to the surge in the first quarter, which was mostly fueled by pent-up demand. We successfully leveraged the market recovery, owing to our consistent dedication to enhancing the capabilities of our service providers, optimizing operational efficiency, and nurturing the growth of our emerging businesses. Our GTV grew by 22.1% year-over-year to RMB780.6 billion, while net revenues increased by 41.4% to RMB19.5 billion. Moreover, the strategic refinement of our cost and expense structure also contributed to the enhancement of our profitability. Our net income for the second quarter stood at RMB1,300 million, compared to net loss of RMB1,866 million in the same period of 2022, while non-GAAP net income was RMB2,364 million in this quarter, compared with net loss of RMB619 million in the corresponding period of 2022. As we ascend to the next mountain, we are determined to maintain a healthy and robust balance sheet and ensure efficient capital allocation, propelling the Company forward in the vast residential services sector toward greater growth. Our strong cash reserves and prudent financial management enabled us to proactively pursue shareholder return initiatives. As a company focused on creating long-term value for our shareholders, we remain dedicated to enhancing shareholder value, and hope to provide continuous shareholder returns as we strive for future success.”