KE Holdings Inc. (“
Beike” or the
“
Company”) (NYSE: BEKE and HKEX: 2423), a leading
integrated online and offline platform for housing transactions and
services, today announced its unaudited financial results for the
second quarter ended June 30, 2023, upsizing and extension of the
share repurchase program and a special cash dividend.
Business and Financial Highlights for the Second Quarter
2023
- Gross transaction value
(GTV)1 was RMB780.6 billion (US$107.6 billion), an
increase of 22.1% year-over-year. GTV of existing home
transactions was RMB456.5 billion (US$63.0 billion), an
increase of 16.0% year-over-year. GTV of new home
transactions was RMB295.0 billion (US$40.7 billion), an
increase of 32.4% year-over-year. GTV of home renovation
and furnishing was RMB3.4 billion (US$0.5 billion),
compared to RMB1.3 billion in the same period of 2022. GTV
of emerging and other services was RMB25.6 billion (US$3.5
billion), an increase of 16.6% year-over-year.
- Net revenues were
RMB19.5 billion (US$2.7 billion), an increase of 41.4%
year-over-year.
- Net income was
RMB1,300 million (US$179 million). Adjusted net
income2 was RMB2,364 million (US$326 million).
- Number of stores
was 43,000 as of June 30, 2023, stable as compared with one year
ago. Number of active stores3 was 41,076 as of
June 30, 2023, relatively flat as compared with one year ago.
- Number of agents
was 435,813 as of June 30, 2023, a 5.0% increase from one year ago.
Number of active agents4 was 409,054 as of June
30, 2023, a 7.6% increase from one year ago.
- Mobile monthly active users
(MAU)5 averaged 48.0 million in the second quarter of
2023, compared to 43.0 million in the same period of 2022.
Mr. Stanley Yongdong Peng, Chairman of the Board
and Chief Executive Officer of Beike, commented, “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 Chief
Financial Officer 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.”
Second Quarter 2023 Financial
Results
Net Revenues
Net revenues increased by 41.4%
to RMB19.5 billion (US$2.7 billion) in the second quarter of 2023
from RMB13.8 billion in the same period of 2022. The increase was
primarily attributable to the increase in total GTV. Total GTV grew
by 22.1% to RMB780.6 billion (US$107.6 billion) in the second
quarter of 2023 from RMB639.5 billion in the same period of 2022,
which was primarily attributable to the recovery of the
housing-related market due to the ease of COVID-19 containment
restrictions, and the Company’s continuously improving operational
capabilities which helped us capitalize on market recovery
tailwinds, as well as the expansion of the Company’s home
renovation and furnishing business.
- Net revenues from existing
home transaction services increased by 15.9% to RMB6.4
billion (US$0.9 billion) in the second quarter of 2023, compared to
RMB5.5 billion in the same period of 2022, primarily attributable
to the increase of the GTV of existing home transactions by 16.0%
to RMB456.5 billion (US$63.0 billion) in the second quarter of 2023
from RMB393.5 billion in the same period of 2022. Among that,
(i) commission revenue increased by 11.0% to
RMB5.1 billion (US$0.7 billion) in the second quarter of 2023 from
RMB4.6 billion in the same period of 2022, primarily due to an
increase in GTV of existing home transactions served by Lianjia
stores of 9.7% to RMB179.4 billion (US$24.7 billion) in the second
quarter of 2023 from RMB163.5 billion in the same period of 2022;
and (ii) revenues derived from platform service,
franchise service and other value-added services, which
are mostly charged to connected stores and agents on the Company’s
platform, increased by 40.4% to RMB1.3 billion (US$0.2 billion) in
the second quarter of 2023, from RMB0.9 billion in the same period
of 2022, mainly due to a 20.5% increase of GTV of existing home
transactions served by connected agents on the Company’s platform
to RMB277.1 billion (US$38.2 billion) in the second quarter of 2023
from RMB229.9 billion in the same period of 2022.
- Net revenues from new home
transaction services increased by 30.4% to RMB8.7 billion
(US$1.2 billion) in the second quarter of 2023 from RMB6.7 billion
in the same period of 2022, primarily due to the increase of GTV of
new home transactions of 32.4% to RMB295.0 billion (US$40.7
billion) in the second quarter of 2023 from RMB222.7 billion in the
same period of 2022. Among that, the GTV of new home transactions
completed on Beike platform through connected agents, dedicated
sales team with the expertise on new home transaction services and
other sales channels increased by 31.3% to RMB241.3 billion
(US$33.3 billion) in the second quarter of 2023 from RMB183.8
billion in the same period of 2022, while the GTV of new home
transactions served by Lianjia brand increased by 38.0% to RMB53.7
billion (US$7.4 billion) in the second quarter of 2023 from RMB38.9
billion in the same period of 2022.
- Net revenues from home
renovation and furnishing were RMB2.6 billion (US$0.4
billion) in the second quarter of 2023, compared to RMB1.0 billion
in the same period of 2022, primarily because the organic growth of
the GTV for home renovation and furnishing business driven by the
increase of orders and enhanced delivery capability.
- Net revenues from emerging
and other services increased by 213.9% to RMB1.7 billion
(US$0.2 billion) in the second quarter of 2023 from RMB557 million
in the same period of 2022, primarily attributable to the increase
of net revenues from rental property management services and
financial services.
Cost of Revenues
Total cost of revenues
increased by 27.8% to RMB14.1 billion (US$2.0 billion) in the
second quarter of 2023 from RMB11.1 billion in the same period of
2022.
- Commission –
split. The Company’s cost of revenues for commissions to
connected agents and other sales channels was RMB6.8 billion
(US$0.9 billion) in the second quarter of 2023, compared to RMB4.7
billion in the same period of 2022, primarily due to the increase
in GTV of new home transactions completed through connected agents
and other sales channels in the second quarter of 2023 compared
with the same period of 2022.
- Commission and compensation
– internal. The Company’s cost of revenues for internal
commission and compensation was RMB4.3 billion (US$0.6 billion) in
the second quarter of 2023, compared to RMB4.3 billion in the same
period of 2022, primarily due to the increase in variable
commission as a result of the increased GTV of existing home
transactions and new home transactions completed through Lianjia
agents, which was partially offset by the decrease in the fixed
compensation costs of Lianjia agents, dedicated sales team with the
expertise on new home transaction services, and other front-line
operational staff.
- Cost of home renovation and
furnishing. The Company’s cost of revenues for home
renovation and furnishing was RMB1.8 billion (US$0.3 billion) in
the second quarter of 2023, compared to RMB0.7 billion in the same
period of 2022, which was primarily attributable to the organic
growth of net revenues from home renovation and furnishing.
- Cost related to
stores. The Company’s cost related to stores decreased by
16.7% to RMB0.7 billion (US$0.1 billion) in the second quarter of
2023 compared to RMB0.9 billion in the same period of 2022, mainly
due to the decrease in the number of Lianjia stores in the second
quarter of 2023 compared to the same period of 2022.
- Other costs. The
Company’s other costs decreased to RMB0.4 billion (US$0.1 billion)
in the second quarter of 2023 from RMB0.5 billion in the same
period of 2022, mainly due to a decrease in human resources related
costs which were partially offset by the increase of business taxes
and surcharges along with the increase of net revenues.
Gross Profit
Gross profit increased by 97.3%
to RMB5.3 billion (US$0.7 billion) in the second quarter of 2023
from RMB2.7 billion in the same period of 2022. Gross margin was
27.4% in the second quarter of 2023, compared to 19.7% in the same
period of 2022. The increase in gross margin was primarily due to:
a) a higher contribution margin for existing home transaction
services led by the increased net revenues from existing home
transaction services and the decreased fixed compensation costs for
Lianjia agents; b) a higher contribution margin for new home
transaction services as a result of an increased number of projects
with higher margins, and a relatively lower percentage of fixed
compensation costs of net revenues from new home transaction
services; c) a higher contribution margin for home renovation and
furnishing business led by an increased contribution from products
and services with higher margins; and d) a relatively lower
percentage of costs related to stores and other costs of net
revenues in the second quarter of 2023 compared to the same period
of 2022.
Income (Loss) from
Operations
Total operating expenses were
RMB4.3 billion (US$0.6 billion) in the second quarter of 2023,
relatively flat as compared with the same period of 2022.
- General and administrative
expenses decreased by 6.4% to RMB2,105 million (US$290
million) in the second quarter of 2023 from RMB2,250 million in the
same period of 2022, mainly due to the decrease of provision for
credit loss along with the decreased accounts receivable balance,
and the decrease of personnel costs and overheads along with the
reduction of the headcount in the second quarter of 2023, which was
partially offset by the increase of share-based compensation
compared to the same period of 2022.
- Sales and marketing
expenses increased by 47.1% to RMB1,649 million (US$227
million) in the second quarter of 2023 from RMB1,122 million in the
same period of 2022, mainly due to the increase in sales and
marketing expenses for home renovation and furnishing services
along with the growth of net revenues from home renovation and
furnishing.
- Research and development
expenses decreased by 39.0% to RMB475 million (US$65
million) in the second quarter of 2023 from RMB779 million in the
same period of 2022, mainly due to the decreases in personnel costs
and share-based compensation as a result of decreased headcount in
research and development personnel in the second quarter of 2023
compared to the same period of 2022.
Income from operations was
RMB1,081 million (US$149 million) in the second quarter of 2023,
compared to loss from operations of RMB1,518 million in the same
period of 2022. Operating margin was 5.5% in the
second quarter of 2023, compared to negative 11.0% in the same
period of 2022, primarily due to: a) a relatively higher gross
profit margin, and b) improved operating leverage as a result of
optimization in personnel and optimized resource utilization in the
second quarter of 2023, compared to the same period of 2022.
Adjusted income from
operations6 was RMB2,148 million (US$296 million) in the
second quarter of 2023, compared to adjusted loss from operations
of RMB690 million in the same period of 2022. Adjusted
operating margin7 was 11.0% in the second quarter of 2023,
compared to negative 5.0% in the same period of 2022.
Adjusted EBITDA8 was RMB2,505 million (US$345
million) in the second quarter of 2023, compared to negative RMB104
million in the same period of 2022.
Net Income (Loss)
Net income was RMB1,300 million
(US$179 million) in the second quarter of 2023, compared to net
loss of RMB1,866 million in the same period of 2022.
Adjusted net income was
RMB2,364 million (US$326 million) in the second quarter of 2023,
compared to adjusted net loss of RMB619 million in the same period
of 2022.
Net Income (Loss) attributable to KE
Holdings Inc.’s Ordinary Shareholders
Net income attributable to KE Holdings
Inc.’s ordinary shareholders was RMB1,309 million (US$180
million) in the second quarter of 2023, compared to net loss
attributable to KE Holdings Inc.’s ordinary shareholders of
RMB1,868 million in the same period of 2022.
Adjusted net income attributable to KE
Holdings Inc.’s ordinary shareholders9 was RMB2,373
million (US$327 million) in the second quarter of 2023, compared to
adjusted net loss attributable to KE Holdings Inc.’s ordinary
shareholders of RMB622 million in the same period of 2022.
Net Income (Loss) per ADS
Basic and diluted net income per ADS
attributable to KE Holdings Inc.’s ordinary shareholders10
were RMB1.10 (US$0.15) and RMB1.08 (US$0.15) in the second quarter
of 2023, respectively, compared to RMB1.57 for both basic and
diluted net loss per ADS attributable to KE Holdings Inc.’s
ordinary shareholders in the same period of 2022.
Adjusted basic and diluted net income
per ADS attributable to KE Holdings Inc.’s ordinary
shareholders11 were RMB2.00 (US$0.28) and RMB1.96
(US$0.27) in the second quarter of 2023, respectively, compared to
RMB0.52 for both adjusted basic and diluted net loss per ADS
attributable to KE Holdings Inc.’s ordinary shareholders in the
same period of 2022.
Cash, Cash Equivalents, Restricted Cash
and Short-Term Investments
As of June 30, 2023, the combined balance of the
Company’s cash, cash equivalents, restricted cash and short-term
investments amounted to RMB60.8 billion (US$8.4 billion).
Business Outlook
For the third quarter of 2023, the Company
expects total net revenues to be between RMB15.5 billion (US$2.1
billion) and RMB16.0 billion (US$2.2 billion), representing a
decrease of approximately 9.1% to 11.9% from the same quarter of
2022. This forecast considers the potential impact of the recent
real estate related policies and measures, all of which remain
uncertain and may continue to affect the Company’s operations.
Therefore, the Company’s ongoing and preliminary view is contingent
on the business situation and market condition.
Upsizing and Extension of Share
Repurchase Program
As previously disclosed, in August 2022, the
Company established a share repurchase program under which the
Company may purchase up to US$1 billion of its Class A ordinary
shares and/or ADSs over a 12-month period. From the launch of the
share repurchase program in September 2022 to August 2023, the
Company in aggregate purchased approximately 41.0 million ADSs in
the open market at a total consideration of approximately US$605.0
million pursuant to the share repurchase program.
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 (the “Extended Share Repurchase
Program”). In the annual general meeting (the
“AGM”) held on June 15, 2023, the shareholders of
the Company have approved to grant the board of directors a general
unconditional mandate to purchase the Company’s own shares (the
“2023 Share Repurchase Mandate”) which covers the
repurchases under the Extended Share Repurchase Program until the
conclusion of the next AGM of the Company. After the expiry of the
2023 Share Repurchase Mandate, the Company will seek for another
general unconditional mandate for repurchase from the shareholders
of the Company at the next AGM to continue its share repurchase
under the Extended Share Repurchase Program.
Special Cash Dividend
The Company is pleased to announce that its
board of directors approved a special cash dividend (the
“Dividend”) of US$0.057 per ordinary share, or
US$0.171 per ADS, to holders of ordinary shares and holders of ADSs
of record as of the close of business on September 15, 2023,
Beijing/Hong Kong Time and New York Time, respectively, payable in
U.S. dollars. The aggregate amount of the Dividend to be paid will
be approximately US$0.2 billion, which will be funded by surplus
cash on the Company’s balance sheet.
For holders of ordinary shares, in order to
qualify for the Dividend, all valid documents for the transfer of
shares accompanied by the relevant share certificates must be
lodged for registration with the Company’s Hong Kong branch share
registrar, Computershare Hong Kong Investor Services Limited, at
Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen’s Road
East, Wanchai, Hong Kong no later than 4:30 p.m. on September 15,
2023 (Beijing/Hong Kong Time). Dividend to be paid to the Company’s
ADS holders through the depositary bank will be subject to the
terms of the deposit agreement. The payment date is expected to be
on or around September 27, 2023 for holders of ordinary shares and
on or around October 3, 2023 for holders of ADSs.
Conference Call Information
The Company will hold an earnings conference
call at 8:00 A.M. U.S. Eastern Time on Thursday, August 31,
2023 (8:00 P.M. Beijing/Hong Kong Time on Thursday, August 31,
2023) to discuss the financial results.
For participants who wish to join the conference
call using dial-in numbers, please complete online registration
using the link provided below at least 20 minutes prior to the
scheduled call start time. Dial-in numbers, passcode and unique
access PIN would be provided upon registering.
Participant Online Registration:
https://s1.c-conf.com/diamondpass/10032429-tc0qbm.html
A replay of the conference call will be accessible
through September 7, 2023, by dialing the following
numbers:
United States: |
+1-855-883-1031 |
Mainland, China: |
400-1209-216 |
Hong Kong, China: |
800-930-639 |
International: |
+61-7-3107-6325 |
Replay PIN: |
10032429 |
A live and archived webcast of the conference
call will also be available at the Company’s investor relations
website at https://investors.ke.com.
Exchange Rate
This press release contains translations of
certain RMB amounts into U.S. dollars (“US$”) at
specified rates solely for the convenience of the reader. Unless
otherwise stated, all translations from RMB to US$ were made at the
rate of RMB7.2513 to US$1.00, the noon buying rate in effect on
June 30, 2023, in the H.10 statistical release of the Federal
Reserve Board. The Company makes no representation that the RMB or
US$ amounts referred could be converted into US$ or RMB, as the
case may be, at any particular rate or at all. For analytical
presentation, all percentages are calculated using the numbers
presented in the financial statements contained in this earnings
release.
Non-GAAP Financial Measures
The Company uses adjusted income (loss) from
operations, adjusted net income (loss), adjusted net income (loss)
attributable to KE Holdings Inc.’s ordinary shareholders, adjusted
operating margin, adjusted EBITDA and adjusted net income (loss)
per ADS attributable to KE Holdings Inc.’s ordinary shareholders,
each a non-GAAP financial measure, in evaluating its operating
results and for financial and operational decision-making purposes.
Beike believes that these non-GAAP financial measures help identify
underlying trends in the Company’s business that could otherwise be
distorted by the effect of certain expenses that the Company
includes in its net income (loss). Beike also believes that these
non-GAAP financial measures provide useful information about its
results of operations, enhance the overall understanding of its
past performance and future prospects and allow for greater
visibility with respect to key metrics used by its management in
its financial and operational decision-making. A limitation of
using these non-GAAP financial measures is that these non-GAAP
financial measures exclude share-based compensation expenses that
have been, and will continue to be for the foreseeable future, a
significant recurring expense in the Company’s business.
The presentation of these non-GAAP financial
measures should not be considered in isolation or construed as an
alternative to gross profit, net income (loss) or any other measure
of performance or as an indicator of its operating performance.
Investors are encouraged to review these non-GAAP financial
measures and the reconciliation to the most directly comparable
GAAP measures. The non-GAAP financial measures presented here may
not be comparable to similarly titled measures presented by other
companies. Other companies may calculate similarly titled measures
differently, limiting their usefulness as comparative measures to
the Company’s data. Beike encourages investors and others to review
its financial information in its entirety and not rely on a single
financial measure. Adjusted income (loss) from
operations is defined as income (loss) from operations,
excluding (i) share-based compensation expenses, and (ii)
amortization of intangible assets resulting from acquisitions and
business cooperation agreement, (iii) impairment of goodwill,
intangible assets and other long-lived assets. Adjusted
operating margin is defined as adjusted income (loss) from
operations as a percentage of net revenues. Adjusted net
income (loss) is defined as net income (loss), excluding
(i) share-based compensation expenses, (ii) amortization of
intangible assets resulting from acquisitions and business
cooperation agreement, (iii) changes in fair value from long-term
investments, loan receivables measured at fair value and contingent
consideration, (iv) impairment of goodwill, intangible assets and
other long-lived assets, (v) impairment of investments, and (vi)
tax effects of the above non-GAAP adjustments. Adjusted net
income (loss) attributable to KE Holdings Inc.’s ordinary
shareholders is defined as net income (loss) attributable
to KE Holdings Inc.’s ordinary shareholders, excluding (i)
share-based compensation expenses, (ii) amortization of intangible
assets resulting from acquisitions and business cooperation
agreement, (iii) changes in fair value from long-term investments,
loan receivables measured at fair value and contingent
consideration, (iv) impairment of goodwill, intangible assets and
other long-lived assets, (v) impairment of investments, (vi) tax
effects of the above non-GAAP adjustments, and (vii) effects of
non-GAAP adjustments on net income (loss) attributable to
non-controlling interests shareholders. Adjusted
EBITDA is defined as net income (loss), excluding (i)
income tax expense, (ii) share-based compensation expenses, (iii)
amortization of intangible assets, (iv) depreciation of property,
plant and equipment, (v) interest income, net, (vi) changes in fair
value from long-term investments, loan receivables measured at fair
value and contingent consideration, (vii) impairment of goodwill,
intangible assets and other long-lived assets, and (viii)
impairment of investments. Adjusted net income (loss) per
ADS attributable to KE Holdings Inc.’s ordinary
shareholders is defined as adjusted net income (loss)
attributable to KE Holdings Inc.’s ordinary shareholders divided by
weighted average number of ADS outstanding during the periods used
in calculating adjusted net income (loss) per ADS, basic and
diluted.
Please see the “Unaudited reconciliation
of GAAP and non-GAAP results” included in this press
release for a full reconciliation of each non-GAAP measure to its
respective comparable GAAP measure.
About KE Holdings Inc.
KE Holdings Inc. is a leading integrated online
and offline platform for housing transactions and services. The
Company is a pioneer in building infrastructure and standards to
reinvent how service providers and customers efficiently navigate
and complete housing transactions and services in China, ranging
from existing and new home sales, home rentals, to home renovation
and furnishing, and other services. The Company owns and operates
Lianjia, China’s leading real estate brokerage brand and an
integral part of its Beike platform. With more than 21 years of
operating experience through Lianjia since its inception in 2001,
the Company believes the success and proven track record of Lianjia
pave the way for it to build its infrastructure and standards and
drive the rapid and sustainable growth of Beike.
Safe Harbor Statement
This press release contains statements that may
constitute “forward-looking” statements pursuant to the “safe
harbor” provisions of the U.S. Private Securities Litigation Reform
Act of 1995. These forward-looking statements can be identified by
terminology such as “will,” “expects,” “anticipates,” “aims,”
“future,” “intends,” “plans,” “believes,” “estimates,” “likely to,”
and similar statements. Among other things, the business outlook
and quotations from management in this press release, as well as
Beike’s strategic and operational plans, contain forward-looking
statements. Beike may also make written or oral forward-looking
statements in its periodic reports to the U.S. Securities and
Exchange Commission (the “SEC”) and The Stock
Exchange of Hong Kong Limited (the “Hong Kong Stock
Exchange”), in its annual report to shareholders, in press
releases and other written materials and in oral statements made by
its officers, directors or employees to third parties. Statements
that are not historical facts, including statements about KE
Holdings Inc.’s beliefs, plans, and expectations, are
forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: Beike’s goals and strategies; Beike’s future business
development, financial condition and results of operations;
expected changes in the Company’s revenues, costs or expenditures;
Beike’s ability to empower services and facilitate transactions on
Beike platform; competition in the industry in which Beike
operates; relevant government policies and regulations relating to
the industry; Beike’s ability to protect the Company’s systems and
infrastructures from cyber-attacks; Beike’s dependence on the
integrity of brokerage brands, stores and agents on the Company’s
platform; general economic and business conditions in China and
globally; and assumptions underlying or related to any of the
foregoing. Further information regarding these and other risks is
included in KE Holdings Inc.’s filings with the SEC and the Hong
Kong Stock Exchange. All information provided in this press release
is as of the date of this press release, and KE Holdings Inc. does
not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
For investor and media inquiries, please
contact:
In China:KE Holdings Inc.Investor
RelationsSiting LiE-mail: ir@ke.com
The Piacente Group, Inc.Yang SongTel:
+86-10-6508-0677E-mail: ke@tpg-ir.com
In the United States:The Piacente Group, Inc.
Brandi PiacenteTel: +1-212-481-2050E-mail: ke@tpg-ir.com
Source: KE Holdings Inc.
_______________________________________
1 GTV for a given period is calculated as the
total value of all transactions which the Company facilitated on
the Company’s platform and evidenced by signed contracts as of the
end of the period, including the value of the existing home
transactions, new home transactions, home renovation and furnishing
and emerging and other services, and including transactions that
are contracted but pending closing at the end of the relevant
period. For the avoidance of doubt, for transactions that failed to
close afterwards, the corresponding GTV represented by these
transactions will be deducted accordingly.2 Adjusted net income
(loss) is a non-GAAP financial measure, which is defined as net
income (loss), excluding (i) share-based compensation expenses,
(ii) amortization of intangible assets resulting from acquisitions
and business cooperation agreement, (iii) changes in fair value
from long-term investments, loan receivables measured at fair value
and contingent consideration, (iv) impairment of goodwill,
intangible assets and other long-lived assets, (v) impairment of
investments, and (vi) tax effects of the above non-GAAP
adjustments. Please refer to the section titled “Unaudited
reconciliation of GAAP and non-GAAP results” for details.3 Based on
our accumulated operational experience, we have introduced the
operating metrics of number of active stores and number of active
agents on our platform, which can better reflect the operational
activeness of stores and agents on our platform.“Active stores” as
of a given date is defined as stores on our platform excluding the
stores which (i) have not facilitated any housing transaction
during the preceding 60 days, (ii) do not have any agent who has
engaged in any critical steps in housing transactions (including
but not limited to introducing new properties, attracting new
customers and conducting property showings) during the preceding
seven days, or (iii) have not been visited by any agent during the
preceding 14 days. The number of active stores was 41,118 as of
June 30, 2022.4 “Active agents” as of a given date is defined as
agents on our platform excluding the agents who (i) delivered
notice to leave but have not yet completed the exit procedures,
(ii) have not engaged in any critical steps in housing transactions
(including but not limited to introducing new properties,
attracting new customers and conducting property showings) during
the preceding 30 days, or (iii) have not participated in
facilitating any housing transaction during the preceding three
months. The number of active agents was 380,284 as of June 30,
2022.5 “Mobile monthly active users” or “mobile MAU” are to the sum
of (i) the number of accounts that have accessed our platform
through our Beike or Lianjia mobile app (with duplication
eliminated) at least once during a month, and (ii) the number of
Weixin users that have accessed our platform through our Weixin
Mini Programs at least once during a month. Average mobile MAU for
any period is calculated by dividing (i) the sum of the Company’s
mobile MAUs for each month of such period, by (ii) the number of
months in such period. 6 Adjusted income (loss) from
operations is a non-GAAP financial measure, which is defined as
income (loss) from operations, excluding (i) share-based
compensation expenses, and (ii) amortization of intangible assets
resulting from acquisitions and business cooperation agreement.,
(iii) impairment of goodwill, intangible assets and other
long-lived assets. Please refer to the section titled “Unaudited
reconciliation of GAAP and non-GAAP results” for details. 7
Adjusted operating margin is adjusted income (loss) from operations
as a percentage of net revenues. 8 Adjusted EBITDA is a
non-GAAP financial measure, which is defined as net income (loss),
excluding (i) income tax expense, (ii) share-based compensation
expenses, (iii) amortization of intangible assets, (iv)
depreciation of property, plant and equipment, (v) interest income,
net, (vi) changes in fair value from long-term investments, loan
receivables measured at fair value and contingent consideration,
(vii) impairment of goodwill, intangible assets and other
long-lived assets, and (viii) impairment of investments. Please
refer to the section titled “Unaudited reconciliation of GAAP and
non-GAAP results” for details. 9 Adjusted net income (loss)
attributable to KE Holdings Inc.’s ordinary shareholders is a
non-GAAP financial measure and defined as net income (loss)
attributable to KE Holdings Inc.’s ordinary shareholders, excluding
(i) share-based compensation expenses, (ii) amortization of
intangible assets resulting from acquisitions and business
cooperation agreement, (iii) changes in fair value from long-term
investments, loan receivables measured at fair value and contingent
consideration, (iv) impairment of goodwill, intangible assets and
other long-lived assets, (v) impairment of investments, (vi) tax
effects of the above non-GAAP adjustments, and (vii) effects of
non-GAAP adjustments on net income (loss) attributable to
non-controlling interests shareholders. Please refer to the section
titled “Unaudited reconciliation of GAAP and non-GAAP results” for
details. 10 ADS refers to American Depositary Share. Each ADS
represents three Class A ordinary shares of the Company. Net income
(loss) per ADS attributable to KE Holdings Inc.’s ordinary
shareholders is net income (loss) attributable to ordinary
shareholders divided by weighted average number of ADS outstanding
during the periods used in calculating net income (loss) per ADS,
basic and diluted. 11 Adjusted net income (loss) per ADS
attributable to KE Holdings Inc.’s ordinary shareholders is a
non-GAAP financial measure, which is defined as adjusted net income
(loss) attributable to KE Holdings Inc.’s ordinary shareholders
divided by weighted average number of ADS outstanding during the
periods used in calculating adjusted net income (loss) per ADS,
basic and diluted. Please refer to the section titled “Unaudited
reconciliation of GAAP and non-GAAP results” for details.
KE Holdings Inc.UNAUDITED INTERIM
CONDENSED CONSOLIDATED BALANCE SHEETS(All amounts
in thousands, except for share, per share data) |
|
|
|
As ofDecember 31, |
|
As ofJune 30, |
|
|
2022 |
|
2023 |
|
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
19,413,202 |
|
31,750,204 |
|
4,378,553 |
Restricted cash |
|
6,181,057 |
|
6,061,888 |
|
835,973 |
Short-term investments |
|
35,485,908 |
|
22,952,267 |
|
3,165,262 |
Short-term financing
receivables, net of allowance for credit losses of RMB139,427 and
RMB139,562 as of December 31, 2022 and June 30, 2023,
respectively |
|
667,224 |
|
630,234 |
|
86,913 |
Accounts receivable and
contract assets, net of allowance for credit losses of RMB2,088,478
and RMB1,853,198 as of December 31, 2022 and June 30, 2023,
respectively |
|
4,163,022 |
|
3,597,692 |
|
496,144 |
Amounts due from and
prepayments to related parties |
|
405,956 |
|
425,958 |
|
58,742 |
Loan receivables from related
parties |
|
50,463 |
|
25,450 |
|
3,510 |
Prepayments, receivables and
other assets |
|
4,057,843 |
|
4,729,002 |
|
652,160 |
Total current
assets |
|
70,424,675 |
|
70,172,695 |
|
9,677,257 |
Non-current
assets |
|
|
|
|
|
|
Property, plant and equipment,
net |
|
2,036,553 |
|
1,913,526 |
|
263,887 |
Right-of-use assets |
|
11,284,070 |
|
13,962,540 |
|
1,925,522 |
Long-term investments,
net |
|
17,925,653 |
|
24,007,654 |
|
3,310,807 |
Intangible assets, net |
|
1,686,976 |
|
1,388,864 |
|
191,533 |
Goodwill |
|
4,934,235 |
|
4,907,023 |
|
676,709 |
Long-term loan receivables
from related parties |
|
22,934 |
|
35,040 |
|
4,832 |
Other non-current assets |
|
1,032,251 |
|
1,027,847 |
|
141,747 |
Total non-current
assets |
|
38,922,672 |
|
47,242,494 |
|
6,515,037 |
TOTAL
ASSETS |
|
109,347,347 |
|
117,415,189 |
|
16,192,294 |
KE Holdings Inc.UNAUDITED INTERIM
CONDENSED CONSOLIDATED BALANCE SHEETS
(Continued)(All amounts in thousands, except for
share, per share data) |
|
|
|
As ofDecember 31, |
|
As ofJune 30, |
|
|
2022 |
|
2023 |
|
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
Accounts payable |
|
5,843,321 |
|
5,810,440 |
|
801,296 |
Amounts due to related
parties |
|
425,685 |
|
411,976 |
|
56,814 |
Employee compensation and
welfare payable |
|
9,365,512 |
|
8,132,135 |
|
1,121,473 |
Customer deposits payable |
|
4,194,828 |
|
4,638,599 |
|
639,692 |
Income taxes payable |
|
542,290 |
|
747,411 |
|
103,073 |
Short-term borrowings |
|
619,000 |
|
497,500 |
|
68,608 |
Lease liabilities current
portion |
|
4,972,345 |
|
6,755,785 |
|
931,665 |
Contract liabilities |
|
3,260,269 |
|
4,734,486 |
|
652,915 |
Accrued expenses and other
current liabilities |
|
4,118,068 |
|
5,128,458 |
|
707,247 |
Total current
liabilities |
|
33,341,318 |
|
36,856,790 |
|
5,082,783 |
Non-current
liabilities |
|
|
|
|
|
|
Deferred tax liabilities |
|
351,186 |
|
351,186 |
|
48,431 |
Lease liabilities non-current
portion |
|
6,599,930 |
|
7,420,825 |
|
1,023,379 |
Other non-current
liabilities |
|
475 |
|
389 |
|
54 |
Total non-current
liabilities |
|
6,951,591 |
|
7,772,400 |
|
1,071,864 |
TOTAL
LIABILITIES |
|
40,292,909 |
|
44,629,190 |
|
6,154,647 |
KE Holdings Inc.UNAUDITED INTERIM
CONDENSED CONSOLIDATED BALANCE SHEETS
(Continued)(All amounts in thousands, except for
share, per share data) |
|
|
|
As ofDecember 31, |
|
As ofJune 30, |
|
|
2022 |
|
2023 |
|
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
SHAREHOLDERS’
EQUITY |
|
|
|
|
|
|
KE Holdings Inc.
shareholders’ equity |
|
|
|
|
|
|
Ordinary shares (US$0.00002 par value; 25,000,000,000 ordinary
shares authorized, comprising of 24,114,698,720 Class A ordinary
shares and 885,301,280 Class B ordinary shares. 3,601,547,279 and
3,592,373,828 Class A ordinary shares issued and outstanding as of
December 31, 2022 and June 30, 2023, respectively; and 156,426,896
and 154,481,300 Class B ordinary shares issued and outstanding as
of December 31, 2022 and June 30, 2023, respectively) |
|
487 |
|
|
489 |
|
|
67 |
|
Treasury shares |
|
(225,329 |
) |
|
(1,268,614 |
) |
|
(174,950 |
) |
Additional paid-in
capital |
|
80,302,956 |
|
|
80,181,114 |
|
|
11,057,481 |
|
Statutory reserves |
|
660,817 |
|
|
660,817 |
|
|
91,131 |
|
Accumulated other
comprehensive income/(loss) |
|
(412,721 |
) |
|
479,974 |
|
|
66,191 |
|
Accumulated deficit |
|
(11,405,850 |
) |
|
(7,350,273 |
) |
|
(1,013,649 |
) |
Total KE Holdings Inc.
shareholders' equity |
|
68,920,360 |
|
|
72,703,507 |
|
|
10,026,271 |
|
Non-controlling interests |
|
134,078 |
|
|
82,492 |
|
|
11,376 |
|
TOTAL SHAREHOLDERS'
EQUITY |
|
69,054,438 |
|
|
72,785,999 |
|
|
10,037,647 |
|
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
109,347,347 |
|
|
117,415,189 |
|
|
16,192,294 |
|
KE Holdings Inc.UNAUDITED CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS(All amounts
in thousands, except for share, per share data, ADS and per ADS
data) |
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
June 30,2022 |
|
|
June 30,2023 |
|
|
June 30,2023 |
|
|
June 30,2022 |
|
|
June 30,2023 |
|
|
June 30,2023 |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues |
|
|
|
|
|
|
|
|
|
|
|
Existing home transaction services |
5,534,809 |
|
|
6,415,888 |
|
|
884,791 |
|
|
11,686,265 |
|
|
15,597,087 |
|
|
2,150,937 |
|
New home transaction
services |
6,666,249 |
|
|
8,695,630 |
|
|
1,199,182 |
|
|
12,576,293 |
|
|
17,099,714 |
|
|
2,358,158 |
|
Home renovation and
furnishing |
1,019,410 |
|
|
2,624,899 |
|
|
361,990 |
|
|
1,106,916 |
|
|
4,032,830 |
|
|
556,153 |
|
Emerging and other
services |
556,622 |
|
|
1,747,504 |
|
|
240,992 |
|
|
955,583 |
|
|
3,032,370 |
|
|
418,183 |
|
Total net
revenues |
13,777,090 |
|
|
19,483,921 |
|
|
2,686,955 |
|
|
26,325,057 |
|
|
39,762,001 |
|
|
5,483,431 |
|
Cost of
revenues |
|
|
|
|
|
|
|
|
|
|
|
Commission-split |
(4,669,156 |
) |
|
(6,842,455 |
) |
|
(943,618 |
) |
|
(8,802,934 |
) |
|
(13,313,188 |
) |
|
(1,835,973 |
) |
Commission and
compensation-internal |
(4,256,545 |
) |
|
(4,289,598 |
) |
|
(591,563 |
) |
|
(8,983,795 |
) |
|
(9,660,032 |
) |
|
(1,332,179 |
) |
Cost of home renovation and
furnishing |
(724,347 |
) |
|
(1,848,140 |
) |
|
(254,870 |
) |
|
(791,046 |
) |
|
(2,825,059 |
) |
|
(389,593 |
) |
Cost related to stores |
(875,769 |
) |
|
(729,912 |
) |
|
(100,659 |
) |
|
(1,759,832 |
) |
|
(1,415,651 |
) |
|
(195,227 |
) |
Others |
(542,825 |
) |
|
(430,626 |
) |
|
(59,385 |
) |
|
(1,059,258 |
) |
|
(855,083 |
) |
|
(117,921 |
) |
Total cost of
revenues(1) |
(11,068,642 |
) |
|
(14,140,731 |
) |
|
(1,950,095 |
) |
|
(21,396,865 |
) |
|
(28,069,013 |
) |
|
(3,870,893 |
) |
Gross
profit |
2,708,448 |
|
|
5,343,190 |
|
|
736,860 |
|
|
4,928,192 |
|
|
11,692,988 |
|
|
1,612,538 |
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
expenses(1) |
(1,121,541 |
) |
|
(1,649,458 |
) |
|
(227,471 |
) |
|
(1,982,513 |
) |
|
(2,943,272 |
) |
|
(405,896 |
) |
General and administrative
expenses(1) |
(2,250,007 |
) |
|
(2,105,234 |
) |
|
(290,326 |
) |
|
(3,777,808 |
) |
|
(3,726,483 |
) |
|
(513,906 |
) |
Research and development
expenses(1) |
(778,645 |
) |
|
(474,789 |
) |
|
(65,476 |
) |
|
(1,527,590 |
) |
|
(931,529 |
) |
|
(128,464 |
) |
Impairment of goodwill,
intangible assets and other long-lived assets |
(76,244 |
) |
|
(32,775 |
) |
|
(4,520 |
) |
|
(76,244 |
) |
|
(32,775 |
) |
|
(4,520 |
) |
Total operating
expenses |
(4,226,437 |
) |
|
(4,262,256 |
) |
|
(587,793 |
) |
|
(7,364,155 |
) |
|
(7,634,059 |
) |
|
(1,052,786 |
) |
Income (loss) from
operations |
(1,517,989 |
) |
|
1,080,934 |
|
|
149,067 |
|
|
(2,435,963 |
) |
|
4,058,929 |
|
|
559,752 |
|
Interest income, net |
160,096 |
|
|
338,735 |
|
|
46,714 |
|
|
273,454 |
|
|
602,226 |
|
|
83,051 |
|
Share of results of equity
investees |
(28,920 |
) |
|
8,805 |
|
|
1,214 |
|
|
31,470 |
|
|
14,475 |
|
|
1,996 |
|
Fair value changes in
investments, net |
(230,766 |
) |
|
29,841 |
|
|
4,115 |
|
|
(339,952 |
) |
|
73,006 |
|
|
10,068 |
|
Impairment loss for equity
investments accounted for using Measurement Alternative |
(223,280 |
) |
|
(7,214 |
) |
|
(995 |
) |
|
(251,002 |
) |
|
(9,313 |
) |
|
(1,284 |
) |
Foreign currency exchange
loss |
(39,487 |
) |
|
(50,540 |
) |
|
(6,970 |
) |
|
(40,742 |
) |
|
(15,833 |
) |
|
(2,183 |
) |
Other income, net |
445,946 |
|
|
172,310 |
|
|
23,763 |
|
|
896,648 |
|
|
727,283 |
|
|
100,297 |
|
Income (loss) before
income tax expense |
(1,434,400 |
) |
|
1,572,871 |
|
|
216,908 |
|
|
(1,866,087 |
) |
|
5,450,773 |
|
|
751,697 |
|
Income tax expense |
(431,310 |
) |
|
(273,366 |
) |
|
(37,699 |
) |
|
(619,255 |
) |
|
(1,401,522 |
) |
|
(193,279 |
) |
Net income
(loss) |
(1,865,710 |
) |
|
1,299,505 |
|
|
179,209 |
|
|
(2,485,342 |
) |
|
4,049,251 |
|
|
558,418 |
|
KE Holdings Inc.UNAUDITED CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS
(Continued)(All amounts in thousands, except for
share, per share data, ADS and per ADS data) |
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
June 30,2022 |
|
|
June 30,2023 |
|
|
June 30,2023 |
|
|
June 30,2022 |
|
|
June 30,2023 |
|
|
June 30,2023 |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss (income) attributable to non-controlling interests
shareholders |
(2,607 |
) |
|
9,228 |
|
|
1,273 |
|
|
(952 |
) |
|
6,326 |
|
|
872 |
|
Net income (loss)
attributable to KE Holdings Inc. |
(1,868,317 |
) |
|
1,308,733 |
|
|
180,482 |
|
|
(2,486,294 |
) |
|
4,055,577 |
|
|
559,290 |
|
Net income (loss)
attributable to KE Holdings Inc.’s ordinary
shareholders |
(1,868,317 |
) |
|
1,308,733 |
|
|
180,482 |
|
|
(2,486,294 |
) |
|
4,055,577 |
|
|
559,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) |
(1,865,710 |
) |
|
1,299,505 |
|
|
179,209 |
|
|
(2,485,342 |
) |
|
4,049,251 |
|
|
558,418 |
|
Currency translation
adjustments |
1,525,663 |
|
|
1,233,419 |
|
|
170,096 |
|
|
1,398,895 |
|
|
893,719 |
|
|
123,249 |
|
Unrealized loss on
available-for-sale investments, net of reclassification |
(143,329 |
) |
|
(15,649 |
) |
|
(2,158 |
) |
|
(309,393 |
) |
|
(1,024 |
) |
|
(141 |
) |
Total comprehensive
income (loss) |
(483,376 |
) |
|
2,517,275 |
|
|
347,147 |
|
|
(1,395,840 |
) |
|
4,941,946 |
|
|
681,526 |
|
Comprehensive loss (income)
attributable to non-controlling interests shareholders |
(2,607 |
) |
|
9,228 |
|
|
1,273 |
|
|
(952 |
) |
|
6,326 |
|
|
872 |
|
Comprehensive income
(loss) attributable to KE Holdings Inc. |
(485,983 |
) |
|
2,526,503 |
|
|
348,420 |
|
|
(1,396,792 |
) |
|
4,948,272 |
|
|
682,398 |
|
Comprehensive income
(loss) attributable to KE Holdings Inc.’s ordinary
shareholders |
(485,983 |
) |
|
2,526,503 |
|
|
348,420 |
|
|
(1,396,792 |
) |
|
4,948,272 |
|
|
682,398 |
|
KE Holdings Inc.UNAUDITED CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS
(Continued) (All amounts in thousands, except
for share, per share data, ADS and per ADS data) |
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
June 30,2022 |
|
|
June 30,2023 |
|
June 30,2023 |
|
June 30,2022 |
|
|
June 30,2023 |
|
June 30,2023 |
|
RMB |
|
|
RMB |
|
US$ |
|
RMB |
|
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ordinary shares used in computing net income (loss) per
share, basic and diluted |
|
|
|
|
|
|
|
|
|
|
|
—Basic |
3,571,976,403 |
|
|
3,559,273,186 |
|
3,559,273,186 |
|
3,569,657,105 |
|
|
3,555,127,466 |
|
3,555,127,466 |
—Diluted |
3,571,976,403 |
|
|
3,632,443,288 |
|
3,632,443,288 |
|
3,569,657,105 |
|
|
3,643,230,834 |
|
3,643,230,834 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of ADS used in computing net income (loss) per ADS, basic
and diluted |
|
|
|
|
|
|
|
|
|
|
|
—Basic |
1,190,658,801 |
|
|
1,186,424,395 |
|
1,186,424,395 |
|
1,189,885,702 |
|
|
1,185,042,489 |
|
1,185,042,489 |
—Diluted |
1,190,658,801 |
|
|
1,210,814,429 |
|
1,210,814,429 |
|
1,189,885,702 |
|
|
1,214,410,278 |
|
1,214,410,278 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share attributable to KE Holdings Inc.'s ordinary
shareholders |
|
|
|
|
|
|
|
|
|
|
|
—Basic |
(0.52 |
) |
|
0.37 |
|
0.05 |
|
(0.70 |
) |
|
1.14 |
|
0.16 |
—Diluted |
(0.52 |
) |
|
0.36 |
|
0.05 |
|
(0.70 |
) |
|
1.11 |
|
0.15 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
ADS attributable to KE Holdings Inc.'s ordinary
shareholders |
|
|
|
|
|
|
|
|
|
|
|
—Basic |
(1.57 |
) |
|
1.10 |
|
0.15 |
|
(2.09 |
) |
|
3.42 |
|
0.47 |
—Diluted |
(1.57 |
) |
|
1.08 |
|
0.15 |
|
(2.09 |
) |
|
3.34 |
|
0.46 |
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes share-based compensation expenses as
follows: |
|
Cost of revenues |
89,860 |
|
|
132,570 |
|
18,282 |
|
175,385 |
|
|
226,566 |
|
31,245 |
Sales and marketing
expenses |
31,045 |
|
|
46,416 |
|
6,401 |
|
59,559 |
|
|
77,481 |
|
10,685 |
General and administrative
expenses |
408,143 |
|
|
655,554 |
|
90,405 |
|
548,032 |
|
|
1,188,897 |
|
163,956 |
Research and development
expenses |
76,136 |
|
|
46,687 |
|
6,438 |
|
174,483 |
|
|
90,038 |
|
12,417 |
|
|
|
|
|
|
|
|
|
|
|
|
KE Holdings Inc.UNAUDITED RECONCILIATION
OF GAAP AND NON-GAAP RESULTS(All amounts in
thousands, except for share, per share data, ADS and per ADS
data) |
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
June 30,2022 |
|
|
June 30,2023 |
|
|
June 30,2023 |
|
|
June 30,2022 |
|
|
|
June 30,2023 |
|
|
June 30,2023 |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
RMB |
|
|
|
RMB |
|
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations |
(1,517,989 |
) |
|
1,080,934 |
|
|
149,067 |
|
|
(2,435,963 |
) |
|
4,058,929 |
|
|
559,752 |
|
Share-based compensation
expenses |
605,184 |
|
|
881,227 |
|
|
121,526 |
|
|
957,459 |
|
|
1,582,982 |
|
|
218,303 |
|
Amortization of intangible
assets resulting from acquisitions and business cooperation
agreement |
146,366 |
|
|
152,640 |
|
|
21,050 |
|
|
262,459 |
|
|
302,773 |
|
|
41,754 |
|
Impairment of goodwill,
intangible assets and other long-lived assets |
76,244 |
|
|
32,775 |
|
|
4,520 |
|
|
76,244 |
|
|
32,775 |
|
|
4,520 |
|
Adjusted income (loss)
from operations |
(690,195 |
) |
|
2,147,576 |
|
|
296,163 |
|
|
(1,139,801 |
) |
|
5,977,459 |
|
|
824,329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) |
(1,865,710 |
) |
|
1,299,505 |
|
|
179,209 |
|
|
(2,485,342 |
) |
|
4,049,251 |
|
|
558,418 |
|
Share-based compensation
expenses |
605,184 |
|
|
881,227 |
|
|
121,526 |
|
|
957,459 |
|
|
1,582,982 |
|
|
218,303 |
|
Amortization of intangible
assets resulting from acquisitions and business cooperation
agreement |
146,366 |
|
|
152,640 |
|
|
21,050 |
|
|
262,459 |
|
|
302,773 |
|
|
41,754 |
|
Changes in fair value from
long-term investments, loan receivables measured at fair value and
contingent consideration |
200,961 |
|
|
(2,671 |
) |
|
(368 |
) |
|
352,223 |
|
|
(38,581 |
) |
|
(5,321 |
) |
Impairment of goodwill,
intangible assets and other long-lived assets |
76,244 |
|
|
32,775 |
|
|
4,520 |
|
|
76,244 |
|
|
32,775 |
|
|
4,520 |
|
Impairment of investments |
223,280 |
|
|
7,214 |
|
|
995 |
|
|
251,002 |
|
|
9,313 |
|
|
1,284 |
|
Tax effects on non-GAAP
adjustments |
(5,739 |
) |
|
(6,562 |
) |
|
(905 |
) |
|
(5,830 |
) |
|
(13,122 |
) |
|
(1,809 |
) |
Adjusted net income
(loss) |
(619,414 |
) |
|
2,364,128 |
|
|
326,027 |
|
|
(591,785 |
) |
|
5,925,391 |
|
|
817,149 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) |
(1,865,710 |
) |
|
1,299,505 |
|
|
179,209 |
|
|
(2,485,342 |
) |
|
4,049,251 |
|
|
558,418 |
|
Income tax expense |
431,310 |
|
|
273,366 |
|
|
37,699 |
|
|
619,255 |
|
|
1,401,522 |
|
|
193,279 |
|
Share-based compensation
expenses |
605,184 |
|
|
881,227 |
|
|
121,526 |
|
|
957,459 |
|
|
1,582,982 |
|
|
218,303 |
|
Amortization of intangible
assets |
150,940 |
|
|
156,994 |
|
|
21,650 |
|
|
271,506 |
|
|
309,914 |
|
|
42,739 |
|
Depreciation of property,
plant and equipment |
233,920 |
|
|
195,093 |
|
|
26,905 |
|
|
468,048 |
|
|
384,815 |
|
|
53,068 |
|
Interest income, net |
(160,096 |
) |
|
(338,735 |
) |
|
(46,714 |
) |
|
(273,454 |
) |
|
(602,226 |
) |
|
(83,051 |
) |
Changes in fair value from
long-term investments, loan receivables measured at fair value and
contingent consideration |
200,961 |
|
|
(2,671 |
) |
|
(368 |
) |
|
352,223 |
|
|
(38,581 |
) |
|
(5,321 |
) |
Impairment of goodwill,
intangible assets and other long-lived assets |
76,244 |
|
|
32,775 |
|
|
4,520 |
|
|
76,244 |
|
|
32,775 |
|
|
4,520 |
|
Impairment of investments |
223,280 |
|
|
7,214 |
|
|
995 |
|
|
251,002 |
|
|
9,313 |
|
|
1,284 |
|
Adjusted
EBITDA |
(103,967 |
) |
|
2,504,768 |
|
|
345,422 |
|
|
236,941 |
|
|
7,129,765 |
|
|
983,239 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to KE Holdings Inc.’s ordinary
shareholders |
(1,868,317 |
) |
|
1,308,733 |
|
|
180,482 |
|
|
(2,486,294 |
) |
|
4,055,577 |
|
|
559,290 |
|
Share-based compensation
expenses |
605,184 |
|
|
881,227 |
|
|
121,526 |
|
|
957,459 |
|
|
1,582,982 |
|
|
218,303 |
|
Amortization of intangible
assets resulting from acquisitions and business cooperation
agreement |
146,366 |
|
|
152,640 |
|
|
21,050 |
|
|
262,459 |
|
|
302,773 |
|
|
41,754 |
|
Changes in fair value from
long-term investments, loan receivables measured at fair value and
contingent consideration |
200,961 |
|
|
(2,671 |
) |
|
(368 |
) |
|
352,223 |
|
|
(38,581 |
) |
|
(5,321 |
) |
Impairment of goodwill,
intangible assets and other long-lived assets |
76,244 |
|
|
32,775 |
|
|
4,520 |
|
|
76,244 |
|
|
32,775 |
|
|
4,520 |
|
Impairment of investments |
223,280 |
|
|
7,214 |
|
|
995 |
|
|
251,002 |
|
|
9,313 |
|
|
1,284 |
|
Tax effects on non-GAAP
adjustments |
(5,739 |
) |
|
(6,562 |
) |
|
(905 |
) |
|
(5,830 |
) |
|
(13,122 |
) |
|
(1,809 |
) |
Effects of non-GAAP
adjustments on net income attributable to non-controlling interests
shareholders |
(7 |
) |
|
(7 |
) |
|
(1 |
) |
|
(14 |
) |
|
(14 |
) |
|
(2 |
) |
Adjusted net income
(loss) attributable to KE Holdings Inc.’s ordinary
shareholders |
(622,028 |
) |
|
2,373,349 |
|
|
327,299 |
|
|
(592,751 |
) |
|
5,931,703 |
|
|
818,019 |
|
KE Holdings Inc.UNAUDITED RECONCILIATION
OF GAAP AND NON-GAAP RESULTS (Continued)(All
amounts in thousands, except for share, per share data, ADS and per
ADS data) |
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
June 30,2022 |
|
|
June 30,2023 |
|
June 30,2023 |
|
June 30,2022 |
|
|
June 30,2023 |
|
June 30,2023 |
|
RMB |
|
|
RMB |
|
US$ |
|
RMB |
|
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of ADS used in computing net income (loss) per ADS, basic and
diluted |
|
|
|
|
|
|
|
|
|
|
|
—Basic |
1,190,658,801 |
|
|
1,186,424,395 |
|
1,186,424,395 |
|
1,189,885,702 |
|
|
1,185,042,489 |
|
1,185,042,489 |
—Diluted |
1,190,658,801 |
|
|
1,210,814,429 |
|
1,210,814,429 |
|
1,189,885,702 |
|
|
1,214,410,278 |
|
1,214,410,278 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of ADS used in calculating adjusted net income (loss) per ADS,
basic and diluted |
|
|
|
|
|
|
|
|
|
|
|
—Basic |
1,190,658,801 |
|
|
1,186,424,395 |
|
1,186,424,395 |
|
1,189,885,702 |
|
|
1,185,042,489 |
|
1,185,042,489 |
—Diluted |
1,190,658,801 |
|
|
1,210,814,429 |
|
1,210,814,429 |
|
1,189,885,702 |
|
|
1,214,410,278 |
|
1,214,410,278 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per ADS
attributable to KE Holdings Inc.'s ordinary
shareholders |
|
|
|
|
|
|
|
|
|
|
|
—Basic |
(1.57 |
) |
|
1.10 |
|
0.15 |
|
(2.09 |
) |
|
3.42 |
|
0.47 |
—Diluted |
(1.57 |
) |
|
1.08 |
|
0.15 |
|
(2.09 |
) |
|
3.34 |
|
0.46 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustments to
net income (loss) per ADS attributable to KE Holdings Inc.'s
ordinary shareholders |
|
|
|
|
|
|
|
|
|
|
|
—Basic |
1.05 |
|
|
0.90 |
|
0.13 |
|
1.59 |
|
|
1.59 |
|
0.22 |
—Diluted |
1.05 |
|
|
0.88 |
|
0.12 |
|
1.59 |
|
|
1.54 |
|
0.21 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
(loss) per ADS attributable to KE Holdings Inc.'s ordinary
shareholders |
|
|
|
|
|
|
|
|
|
|
|
—Basic |
(0.52 |
) |
|
2.00 |
|
0.28 |
|
(0.50 |
) |
|
5.01 |
|
0.69 |
—Diluted |
(0.52 |
) |
|
1.96 |
|
0.27 |
|
(0.50 |
) |
|
4.88 |
|
0.67 |
|
|
|
|
|
|
|
|
|
|
|
|
KE Holdings Inc.UNAUDITED CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS(All amounts
in thousands) |
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
June 30,2022 |
|
|
June 30,2023 |
|
|
June 30,2023 |
|
|
June 30,2022 |
|
|
June 30,2023 |
|
|
June 30,2023 |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in)
operating activities |
2,973,280 |
|
|
(196,144 |
) |
|
(27,049 |
) |
|
3,808,031 |
|
|
7,431,689 |
|
|
1,024,876 |
|
Net cash provided by (used in)
investing activities |
(7,081,027 |
) |
|
2,055,696 |
|
|
283,492 |
|
|
(11,338,319 |
) |
|
7,633,614 |
|
|
1,052,724 |
|
Net cash provided by (used in)
financing activities |
(93,099 |
) |
|
(2,537,964 |
) |
|
(350,001 |
) |
|
35,872 |
|
|
(2,869,607 |
) |
|
(395,737 |
) |
Effect of exchange rate change
on cash, cash equivalents and restricted cash |
170,973 |
|
|
36,149 |
|
|
4,985 |
|
|
142,610 |
|
|
22,137 |
|
|
3,053 |
|
Net increase
(decrease) in cash and cash equivalents and restricted
cash |
(4,029,873 |
) |
|
(642,263 |
) |
|
(88,573 |
) |
|
(7,351,806 |
) |
|
12,217,833 |
|
|
1,684,916 |
|
Cash, cash equivalents and
restricted cash at the beginning of the period |
23,410,276 |
|
|
38,454,355 |
|
|
5,303,099 |
|
|
26,732,209 |
|
|
25,594,259 |
|
|
3,529,610 |
|
Cash, cash equivalents
and restricted cash at the end of the period |
19,380,403 |
|
|
37,812,092 |
|
|
5,214,526 |
|
|
19,380,403 |
|
|
37,812,092 |
|
|
5,214,526 |
|
KE Holdings Inc.UNAUDITED SEGMENT
CONTRIBUTION MEASURE(All amounts in
thousands) |
|
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
|
|
June 30,2022 |
|
|
June 30,2023 |
|
|
June 30,2023 |
|
|
June 30,2022 |
|
|
June 30,2023 |
|
|
June 30,2023 |
|
|
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
RMB |
|
|
RMB |
|
|
US$ |
|
|
Existing home
transaction services |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
5,534,809 |
|
|
6,415,888 |
|
|
884,791 |
|
|
11,686,265 |
|
|
15,597,087 |
|
|
2,150,937 |
|
|
Less: Commission and
compensation |
|
(3,503,942 |
) |
|
(3,490,480 |
) |
|
(481,359 |
) |
|
(7,331,729 |
) |
|
(8,169,959 |
) |
|
(1,126,689 |
) |
|
Contribution |
|
2,030,867 |
|
|
2,925,408 |
|
|
403,432 |
|
|
4,354,536 |
|
|
7,427,128 |
|
|
1,024,248 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New home transaction
services |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
6,666,249 |
|
|
8,695,630 |
|
|
1,199,182 |
|
|
12,576,293 |
|
|
17,099,714 |
|
|
2,358,158 |
|
|
Less: Commission and
compensation |
|
(5,095,477 |
) |
|
(6,330,323 |
) |
|
(872,992 |
) |
|
(9,925,142 |
) |
|
(12,462,059 |
) |
|
(1,718,597 |
) |
|
Contribution |
|
1,570,772 |
|
|
2,365,307 |
|
|
326,190 |
|
|
2,651,151 |
|
|
4,637,655 |
|
|
639,561 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home renovation and
furnishing |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
1,019,410 |
|
|
2,624,899 |
|
|
361,990 |
|
|
1,106,916 |
|
|
4,032,830 |
|
|
556,153 |
|
|
Less: Material costs,
commission and compensation costs |
|
(724,347 |
) |
|
(1,848,140 |
) |
|
(254,870 |
) |
|
(791,046 |
) |
|
(2,825,059 |
) |
|
(389,593 |
) |
|
Contribution |
|
295,063 |
|
|
776,759 |
|
|
107,120 |
|
|
315,870 |
|
|
1,207,771 |
|
|
166,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emerging and other
services |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
556,622 |
|
|
1,747,504 |
|
|
240,992 |
|
|
955,583 |
|
|
3,032,370 |
|
|
418,183 |
|
|
Less: Commission and
compensation |
|
(326,282 |
) |
|
(1,311,250 |
) |
|
(180,830 |
) |
|
(529,858 |
) |
|
(2,341,202 |
) |
|
(322,866 |
) |
|
Contribution |
|
230,340 |
|
436,254 |
|
60,162 |
|
|
425,725 |
|
|
691,168 |
|
|
95,317 |
|
|
KE (NYSE:BEKE)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
KE (NYSE:BEKE)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024