Beike Announces Forecast-beating Third Quarter 2023 Unaudited Financial Results; Shares Rise Pre-market

BEIJING, Nov. 08, 2023 — KE Holdings Inc. (Beike), a leading integrated online and offline platform for housing transactions and services, today announced its unaudited financial results for the third quarter ended September 30, 2023.

Business and Financial Highlights for the Third Quarter of 2023
• Gross transaction value (GTV) was RMB655.2 billion (US$89.8 billion), a decrease of 11.1% year-over-year. GTV of existing home transactions was RMB439.0 billion (US$60.2 billion), a decrease of 2.2% year-over-year. GTV of new home transactions was RMB192.1 billion (US$26.3 billion), a decrease of 26.5% year-over-year. GTV of home renovation and furnishing was RMB3.3 billion (US$0.4 billion), an increase of 65.6% year-over-year. GTV of emerging and other services was RMB20.7 billion (US$2.8 billion), a decrease of 16.0% year-over-year.
• Net revenues were RMB17.8 billion (US$2.4 billion), an increase of 1.2% year-over-year.
• Net income was RMB1,170 million (US$160 million). Adjusted net income was RMB2,159 million (US$296 million).
• Number of stores was 43,013 as of September 30, 2023, a 3.9% increase from one year ago. Number of active stores was 40,903 as of September 30, 2023, a 3.0% increase from one year ago.
• Number of agents was 429,352 as of September 30, 2023, a 6.6% increase from one year ago. Number of active agents was 399,048 as of September 30, 2023, a 7.1% increase from one year ago.
• Mobile monthly active users (MAU) averaged 49.2 million in the third quarter of 2023, compared to 42.4 million in the same period of 2022.

Mr. Stanley Yongdong Peng, Chairman of the Board and Chief Executive Officer of Beike, commented, “During the third quarter of 2023, China’s real estate market saw meaningful monthly rebound supported by a wave of government favorable policies, such as lowering down payment ratio. We achieved resilient top-line performance, which is a powerful testament to our across-the-board efforts for business growth and efficiency improvement.”

“As we see a horizon with prospects centered on ‘better living’, and are eager to fulfill the tremendous needs from consumers, we have upgraded our corporate strategy to ‘One Body, Three Wings’, a significant step in our roadmap to become the leading one-stop platform of residential services. Through prudent execution and efficiency improvement, we’ve reinforced the agility and resilience of our ‘One Body’ business, and are excited to connect to a broader range of industry participants to drive the sector’s high-quality advancement. We also aim to deepen our insights and ramp up our service capabilities by actively pursuing the rapid scale expansion of our new businesses, including home renovation and furnishing. We will always strive to uplift the industry standards, while forging lasting and synergistic relationships with all industry stakeholders. Our technology-empowered infrastructure, extensive datasets, strong customer traffic, and expansive store and agent network will position us well for the future, delivering unparalleled value to both our customers and the whole residential industry,” concluded Mr. Peng.

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Mr. Tao Xu, Executive Director and Chief Financial Officer of Beike, added, “In the third quarter of this year, China’s real estate market gradually picked up from the bottom with higher-tier cities leading the month-on-month recovery in September following the introduction of supportive polices. Our net revenues grew by 1.2% year-over-year to RMB17.8 billion in the third quarter. As we actively advanced our ‘One body, Three wings’ growth strategy, we achieved a resilient revenue performance for housing transaction services in the quarter, while our home renovation and furnishing services revenue saw a 72.1% of year-on-year jump, reaching RMB3.2 billion. Notably, our enhanced operational capability and careful cost discipline generated a gross margin of 27.4%, ticking up from 27.0% in same period last year. Our net income in the third quarter saw a 63.4% year-over-year increase, reaching RMB1,170 million, while adjusted net income grew by 14.4% to RMB2,159 million, showcasing stronger profitability. Our solid cash reserves and prudent financial management have allowed us to return to shareholders in the form of share repurchases and special cash dividend issued during the third quarter. Looking forward, we will continue to execute a strategic and disciplined approach, enhance capital allocation efficiency, and prioritize our investments in business areas that bring key value, while remaining dedicated to shareholder returns. We believe this will enable us to achieve sustainable and organic growth, and create long-term value for our shareholders.”