Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIE ...

BEIJING, April 26, 2024 (GLOBE NEWSWIRE) -- KE Holdings Inc. ("Beike" or the "Company") (NYSE:BEKE), a leading integrated online and offline platform for housing transactions and services, today released its 2023 Environmental, Social and Governance report (the "2023 ESG report"), highlighting Beike's commitment to sustainability under its corporate mission of "admirable service, joyful living," and the guiding principle of "being virtuous while seeking growth." Mr. Stanley Yongdong Peng, Co-founder, Chairm ...

BEIJING, April 26, 2024 (GLOBE NEWSWIRE) -- KE Holdings Inc. ("Beike" or the "Company") (NYSE:BEKE, HKEX: 2423))), a leading integrated online and offline platform for housing transactions and services, today announced that it will hold an annual general meeting of the Company's shareholders (the "AGM") at 10:00 a.m. Beijing time on Friday, June 14, 2024 at Oriental Electronic Technology Building, No. 2 Chuangye Road, Haidian District, Beijing, PRC, for the purposes of considering and, if thought fit, passi ...

The Zacks Real Estate Operations industry continues to face persistent hurdles, including high interest rates, macroeconomic uncertainty and geopolitical tensions. Stricter lending norms limit access to credit, increasing borrowing costs and slowing transaction activity. Clients are adopting cautious behavior due to high rates, delaying transactions and seeking thorough price discovery.Nevertheless, the industry sees growth prospects in the increasing adoption of outsourced real estate services and other em ...

Investors looking for stocks in the Real Estate - Operations sector might want to consider either KE Holdings Inc. Sponsored ADR (BEKE) or Zillow (Z) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estima ...

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 63.2 / USD 24.6, indicating a potential upside of 75% from the current price [1][2]. Core Insights - The company demonstrated resilient performance in Q4 2023, with adjusted net profit increasing by 10.8% year-on-year, reaching CNY 17.1 billion. The total transaction value for the quarter was CNY 735.6 billion, a 13.7% increase year-on-year [1]. - The company reported a total revenue of CNY 202 billion in Q4 2023, reflecting a year-on-year growth of 13.5% and a quarter-on-quarter growth of 20.6%. The gross margin improved to 25.5%, up 1.1 percentage points year-on-year [1]. - The company has a strong cash reserve and solid financial management, having repurchased over USD 1 billion in shares and declared a total dividend of approximately USD 600 million, with a payout ratio of about 74% [1]. Summary by Sections Financial Performance - In Q4 2023, the company recorded a total transaction value of CNY 735.6 billion, with net income of CNY 202 billion, marking a 13.5% year-on-year increase. The adjusted net profit for the year reached CNY 9.8 billion, a significant increase of 245% year-on-year [1][3]. - The company’s revenue for the full year 2023 was CNY 77.8 billion, up 28.2% year-on-year, with adjusted net profit showing substantial growth [2][3]. Business Segments - The existing home business saw a transaction value of CNY 468.1 billion in Q4 2023, a 30.1% increase year-on-year, while the new home business experienced a transaction value of CNY 238 billion, down 9.7% year-on-year [1]. - The home decoration and furniture business achieved a transaction value of CNY 3.9 billion, a remarkable growth of 99.7% year-on-year, driven by increased orders and improved delivery capabilities [1]. Future Outlook - The report forecasts adjusted net profits for the next three years to be CNY 8.3 billion, CNY 8.7 billion, and CNY 8.9 billion respectively, applying a PE ratio of 16 times for 2024 [1][2]. - The company is expected to continue benefiting from its leading position in the residential services sector and the integration of its business lines, enhancing its resilience in the post-real estate cycle [1].

Investment Rating - The investment rating for the company is "Buy" with a target price of HKD 53.67, maintaining the rating [7]. Core Views - The company achieved a revenue of RMB 77.78 billion in 2023, representing a year-on-year growth of 28.2%. The gross margin increased to 27.9%, up by 5.2 percentage points. The net profit attributable to shareholders was RMB 5.88 billion, marking a turnaround from a loss [2]. - The existing housing business showed steady growth with a total transaction volume of RMB 2.028 trillion, up 28.6%, generating revenue of RMB 28 billion, a 15.9% increase. The new housing business also saw a total transaction volume of RMB 1.003 trillion, growing by 6.7% [2]. - The home decoration and rental management business is expected to bring new growth, with revenue from home decoration reaching RMB 10.9 billion, a 115% increase, and rental management revenue at RMB 8.4 billion, up 194.8% [3]. Financial Performance Summary - The company reported a profit margin of 47.2% for the existing housing business and 26.6% for the new housing business, both showing improvements year-on-year [4]. - Active stores increased to 42,000, a 12.2% rise, and active agents reached 397,000, up 13.6%. The average GTV per store grew by 29%, while the average GTV per agent increased by 25% [4]. - Revenue forecasts for 2024-2026 are projected at RMB 89.13 billion, RMB 99.90 billion, and RMB 108.74 billion, with year-on-year growth rates of 14.6%, 12.08%, and 8.85% respectively [5]. Valuation Metrics - The estimated EPS for 2024, 2025, and 2026 are RMB 1.63, RMB 1.90, and RMB 2.06, respectively, with a three-year CAGR of 9.29% [5]. - The company is valued at a 30x PE ratio for 2024, with a target price of HKD 53.67, indicating a strong market position and growth potential [5].

Investment Rating - The investment rating for the company is "Buy" (maintained) [2][5] Core Views - The company's operating performance significantly improved in 2023, achieving a total GTV transaction amount of 3.1 trillion yuan, a year-on-year increase of 20%, and operating revenue of 778 billion yuan, a year-on-year increase of 28% [3][6] - Profit indicators reached new highs, with a net profit attributable to shareholders of 5.9 billion yuan, turning from loss to profit, and an adjusted net profit of 9.8 billion yuan, a year-on-year increase of 245% [3][17] - The company has successfully recovered its existing housing business, with a GTV of 2.0 trillion yuan, a year-on-year increase of 29%, and revenue of 28 billion yuan, a year-on-year increase of 16% [3][28] - The new housing business outperformed the industry, achieving a GTV transaction amount of 1.0 trillion yuan, a year-on-year increase of 7%, while the national commodity residential sales decreased by 6% [3][43] - The "two wings" business, including home decoration and emerging businesses, showed robust growth, with home decoration revenue of 10.9 billion yuan, a year-on-year increase of 115%, and emerging business revenue of 8.4 billion yuan, a year-on-year increase of 195% [3][58] Financial Forecasts and Metrics - The company is expected to achieve adjusted net profits of 9.8 billion yuan and 9.9 billion yuan for 2024 and 2025, respectively, with earnings per share of 2.63 yuan and 2.65 yuan [3][72] - The price-to-earnings (P/E) ratio is projected to be 12.2 for 2024 and 12.1 for 2025 [3][72] - The company's gross profit margin improved to 27.9%, a year-on-year increase of 5 percentage points, and the adjusted net profit margin reached 12.6%, a year-on-year increase of 8 percentage points [3][17]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported a total revenue of 77.8 billion yuan for 2023, representing a year-on-year increase of 28.2%, with adjusted net profit reaching 9.8 billion yuan, up 244.7%, slightly exceeding market expectations [3] - The recovery in second-hand housing transaction volume and an increase in market share for new housing have driven steady revenue growth [3] - The company has effectively reduced costs and improved efficiency, leading to a significant increase in profit margins [3] - Emerging businesses, particularly home decoration and rental services, have shown rapid growth, with home decoration GTV increasing by 93% to 13.3 billion yuan [3] Summary by Sections Financial Performance - Total GTV for 2023 was 31,429 billion yuan, up 20.4% year-on-year, with revenue from existing homes, new homes, home decoration, and emerging businesses reaching 280 billion yuan (+15.9%), 306 billion yuan (+6.7%), 109 billion yuan (+74.3%), and 84 billion yuan (+194.8%) respectively [3] - The company expanded its active store count to 42,021 (+12.2%) and active agents to 397,000 (+13.6%) by the end of 2023 [3] Profitability - The company achieved a gross margin of 27.9%, an increase of 5.2 percentage points year-on-year, driven by improved profit margins in existing and new home businesses [3] - The average store efficiency and employee efficiency increased by 29% and 25% year-on-year, respectively [3] Future Outlook - The report maintains the adjusted net profit forecasts for 2024 and 2025 at 10.91 billion yuan and 12.18 billion yuan, respectively, with a projected adjusted net profit of 13.35 billion yuan for 2026 [4] - The expected EPS for 2024, 2025, and 2026 is 2.93 yuan, 3.27 yuan, and 3.58 yuan, respectively, with corresponding adjusted PE ratios of 11.5X, 10.3X, and 9.4X [4]

Financial Data and Key Metrics - Full year 2023 revenue reached RMB77.8 billion, up 28% year-over-year, with over 20% attributable to new initiatives [7] - GTV on the platform was RMB3.14 trillion, up 20% year-over-year, with existing home transactions growing by 29% and new home transactions rising by 7% [7] - Adjusted net margin increased by 7.9 percentage points to 12.6%, with adjusted net income of RMB9.8 billion [25] - Q4 2023 revenue increased by 20.6% year-over-year to RMB28.2 billion, with GAAP net income rising by 80.2% to RMB670 million [26] Business Line Performance - Existing home transaction services revenue grew by 15.9% year-over-year, with GTV reaching RMB468.1 billion in Q4, up 30.1% [28] - New home transaction services revenue grew by 6.7% year-over-year, with GTV reaching RMB238 billion in Q4, down 9.7% year-over-year but up 23.9% sequentially [29] - Home renovation and furnishing services revenue grew by 74.3% year-over-year to RMB10.9 billion, with contracted sales up 93% year-over-year [24][44] - Beike Rental Services managed over 210,000 units, up from 70,000 in 2022, with Carefree Rental model managing over 200,000 units [11][66] Market Performance - Existing home market GTV increased significantly, driven by lower base effects and increased activity in second and third-tier cities [27] - New home market remained sluggish, with CRIC data showing a 32% year-over-year decline in sales from top 100 developers in Q4 [29] - Homebuyers showed a preference for existing homes, with existing home GTV nationwide rising by 20-30% year-over-year [55] Strategic Direction and Industry Competition - The company is focusing on a technology-driven one-stop residential services platform, with a strategy of "One Body, Three Wings" to foster synergies [6][19] - Emphasis on quality and efficiency, with plans to enhance customer trust and drive future growth in home renovation and furnishing services [19][46] - Expansion of store and agent networks, with 42,000 active stores and 397,000 active agents by the end of 2023 [8][49] Management Commentary on Operating Environment and Future Outlook - The company aims for growth with stability in 2024, focusing on quality and efficiency while maintaining a strong balance between growth and risk control [13] - The real estate market is undergoing deep adjustments, with a shift towards existing homes and a focus on home upgrades [55][57] - The company plans to enhance digitalization and technology-driven initiatives to improve long-term efficiency [20] Other Important Information - The company repurchased approximately US$718.7 million worth of shares in 2023 and announced a final cash dividend of US$0.351 per ADS [37][38] - Total shareholder return for 2023 significantly exceeded net income, accounting for around 159% of net income [38] Q&A Session Summary Question: Drivers behind the strong growth in home renovation and furnishing business [43] - The growth was driven by high-efficiency synergies between core and emerging businesses, a diversified product portfolio, and higher delivery capabilities [45] - In 2024, the focus will be on quality, with measures to shorten construction timelines and establish quality control roles [46] Question: Penetration rate in the existing home market and expansion plans [47] - The company achieved significant improvement in scale, efficiency, and profitability in the existing home market, with a 29% year-over-year increase in GTV [48] - Plans for 2024 include expanding the store network, improving agent expertise, and fostering collaboration with store owners [49][53] Question: Outlook on the real estate market and differentiation between new and existing home markets [54] - The existing home market is expected to remain stable, while the new home market will continue to fluctuate as it bottoms out [63][64] - Demand for home upgrades is dominant, making up 60% of total housing demand [56] Question: Accomplishments and risks in the home rental business [65] - The company expanded its Carefree Rental model to over 200,000 units and improved operational efficiency and service quality [66] - For 2024, the focus will be on achieving operational breakeven in core cities and enhancing service quality [68] Question: Strategy and outlook for the new home business [71] - The company outperformed the industry with a 7% growth in new home GTV, driven by proactive strategies and innovative services [72][73] - Plans for 2024 include promoting strategic collaborations with developers and enhancing infrastructure for new home sales [76]