Financial Performance - Total transaction value for the fiscal year 2022 was RMB 2,609.6 billion, a decrease of 32.3% from RMB 3,853.5 billion in 2021[1]. - Net income for the fiscal year 2022 was RMB 60.7 billion, down 24.9% from RMB 80.8 billion in 2021[1]. - Net loss for the fiscal year 2022 was RMB 13.97 billion, compared to a net loss of RMB 5.25 billion in 2021[2]. - In 2022, the company's net income decreased by 24.9% to RMB 60.7 billion from RMB 80.8 billion in 2021, primarily due to a 32.3% drop in total transaction volume from RMB 385.35 billion to RMB 260.96 billion[12]. - The net income from the existing home business fell by 24.5% to RMB 24.1 billion, with total transaction volume decreasing by 23.4% to RMB 157.65 billion[12]. - The new home business saw a significant decline, with net income dropping 38.3% to RMB 28.7 billion and total transaction volume falling 41.5% to RMB 94.05 billion[12]. - Total net revenue for the year ended December 31, 2022, was RMB 60,668,779, a decrease of 24.9% from RMB 80,752,439 in 2021[58]. - The net loss attributable to the shareholders of Beike Holdings Limited for the year ended December 31, 2022, was RMB 1,386,074, compared to a net loss of RMB 524,129 in 2021[59]. - Gross profit for the year ended December 31, 2022, was RMB 13,780,747, down from RMB 15,819,415 in 2021, reflecting a gross margin decrease[58]. - The basic and diluted loss per share for the year ended December 31, 2022, was RMB (0.39), compared to RMB (0.15) in 2021, reflecting increased losses per share[60]. Operational Metrics - The number of stores decreased by 20.6% to 40,516 as of December 31, 2022, from 51,038 a year earlier[2]. - Active agents decreased by 13.3% to 394,020 as of December 31, 2022, from 454,504 in 2021[2]. - Average monthly active users for mobile platforms was 36.6 million in Q4 2022, down from 37.4 million in the same period of 2021[2]. - Operating costs decreased from RMB 64.9 billion in 2021 to RMB 46.9 billion in 2022, a reduction of 27.8%[14]. - Sales and marketing expenses increased to RMB 4.6 billion in 2022 from RMB 4.3 billion in 2021, primarily due to the consolidation of Saint Decor's financial performance[18]. - General and administrative expenses decreased by 17.7% from RMB 8.9 billion in 2021 to RMB 7.3 billion in 2022[18]. - Research and development expenses decreased by 20.3% from RMB 3.2 billion in 2021 to RMB 2.5 billion in 2022[18]. Business Segments - The company has restructured its reporting segments into four divisions: existing home business, new home business, home decoration, and emerging businesses and others, following the acquisition of Shengdu Home Decoration Co., Ltd.[70]. - The home decoration and furnishing business generated RMB 5 billion in net income in 2022, significantly boosted by the acquisition of Shengdu Home Decoration[13]. - The company’s emerging business and other revenue segment generated RMB 2,848,075 for the year ended December 31, 2022, up from RMB 2,134,656 in 2021, showing growth in this area[58]. - The home rental business's "worry-free rental" model managed over 70,000 units by the end of 2022, with a 3.7 percentage point increase in occupancy rate from Q3 to Q4[10]. Cash Flow and Investments - Cash flow from operating activities increased from RMB 3.60 billion in 2021 to RMB 8.46 billion in 2022[26]. - Cash and cash equivalents increased from RMB 56.1 billion at the end of 2021 to RMB 61.1 billion at the end of 2022, primarily due to cash generated from operating activities of RMB 8.5 billion[19]. - The net cash used in investing activities in 2022 was RMB 85 billion, which included RMB 469 billion for purchasing short-term investments and RMB 134 billion for long-term investments[31]. - The company reported a significant increase in interest income, netting RMB 743,484 for the year ended December 31, 2022, compared to RMB 354,567 in 2021[59]. Acquisitions and Goodwill - The company completed the acquisition of Shengdu Home Decoration for a total consideration of RMB 3.92 billion and 44,315,854 restricted Class A ordinary shares, enhancing its service capabilities in the home decoration sector[37]. - Goodwill increased from RMB 18.06 billion as of December 31, 2021, to RMB 49.34 billion as of December 31, 2022, primarily due to goodwill recognized in the acquisition of Shengdu Home Decoration[23]. - The estimated fair value of identifiable intangible assets acquired was RMB 1,049.5 million, with a useful life of 10 years[96]. Compliance and Governance - The company has complied with all applicable principles and code provisions of the Corporate Governance Code since its listing date[47]. - The company has adopted a policy to manage material non-public information and prevent insider trading, confirming compliance with all relevant regulations since its listing date[48]. - The audit committee consists of independent non-executive directors with appropriate professional qualifications[50]. Future Outlook - The company plans to focus on optimizing business operations and balancing efficiency, risk control, and scale expansion in 2023[11]. - The company aims to enhance service quality and continue to drive industry development towards a more dignified service model and better living conditions[11]. - The company plans to enhance its market expansion strategies and invest in new product development to drive future growth[100].

Financial Performance - Total transaction value for 2022 was RMB 2.6096 trillion (USD 378.4 billion), a year-on-year decrease of 32.3%[1] - Net income for 2022 was RMB 60.7 billion (USD 8.8 billion), a year-on-year decrease of 24.9%[2] - In Q4 2022, net income was RMB 16.7 billion (USD 2.4 billion), a year-on-year decrease of 5.8%[2] - In 2022, the company recorded a net revenue of RMB 60.7 billion, a year-on-year decrease of 24.9%, which was less than the market decline[5] - In Q4 2022, net revenue decreased by 5.8% to RMB 16.7 billion (USD 2.4 billion) compared to RMB 17.8 billion in Q4 2021, with total transaction value dropping by 11.7% to RMB 647 billion (USD 93.8 billion)[6] - The net income from the existing housing business in Q4 2022 was RMB 5.3 billion (USD 800 million), down 11.8% from RMB 6 billion in Q4 2021, primarily due to a decrease in commission income[6] - The net income from new housing business in Q4 2022 was RMB 8.3 billion (USD 1.2 billion), a decline of 26.8% from RMB 11.3 billion in Q4 2021, with total transaction value dropping by 26.1% to RMB 263.5 billion (USD 38.2 billion)[7] - The company achieved a gross profit of RMB 4.1 billion (USD 600 million) in Q4 2022, representing a 40.4% increase from RMB 2.9 billion in Q4 2021, with a gross margin of 24.4%[10] - The company’s operating costs in Q4 2022 totaled RMB 12.7 billion (USD 1.8 billion), a decrease of 14.9% from RMB 14.9 billion in Q4 2021[8] - The company’s free cash flow showed significant strength, indicating a successful shift from high-speed growth to high-quality growth[5] - The net income from home decoration and furniture in Q4 2022 was RMB 2.1 billion (USD 300 million), significantly impacted by the acquisition of Shengdu Home Decoration[7] - Emerging businesses and other net income increased by 152.0% year-on-year to RMB 1.1 billion (USD 200 million) in Q4 2022, driven by growth in light custody leasing services and financial services[7] - Total net revenue for 2022 was RMB 16,747,140, a decrease from RMB 17,785,721 in 2021, representing a decline of approximately 5.8%[41] - The operating profit for 2022 was RMB 387,391, compared to a loss of RMB 1,184,071 in 2021, indicating a significant improvement[41] - The net loss for 2022 was RMB 13.97 billion (USD 2.03 billion), compared to a loss of RMB 5.25 billion in 2021, while adjusted net profit was RMB 2.84 billion (USD 0.41 billion)[22] User and Store Metrics - The number of active stores as of December 31, 2022, was 37,446, a decrease of 17.4% year-on-year[2] - The average monthly active users in Q4 2022 was 36.6 million, compared to 37.4 million in the same period of 2021[4] - The number of brokers as of December 31, 2022, was 394,020, a decrease of 13.3% year-on-year[2] Cost Management and Efficiency - The company aims to diversify revenue and reduce costs while enhancing operational efficiency in 2023[4] - Total operating expenses decreased by 9.6% from RMB 4.1 billion in Q4 2021 to RMB 3.7 billion (USD 500 million) in Q4 2022[11] - R&D expenses fell by 31.1% from RMB 738 million in Q4 2021 to RMB 509 million (USD 74 million) in Q4 2022, primarily due to a reduction in R&D personnel[12] - Operating costs decreased by 27.8% to RMB 46.9 billion (USD 6.8 billion), mainly due to reduced commissions and salaries for agents and sales channels[19] - The decrease in general and administrative expenses by 18.6% from RMB 2.202 billion in Q4 2021 to RMB 1.792 billion (USD 260 million) in Q4 2022 was mainly due to reduced accounts receivable and lower personnel costs[11] Strategic Initiatives - The company plans to drive diversified business development through its "one body, two wings" strategy in 2023, focusing on efficiency, risk control, and scale expansion[5] - The company aims to enhance its market position through strategic acquisitions and the integration of new services, particularly in the home decoration sector[18] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[44] Shareholder Information - The company has established a share repurchase plan allowing for the purchase of up to USD 1 billion of Class A ordinary shares and/or American Depositary Shares within 12 months[25] - As of December 31, 2022, the company repurchased approximately 14.2 million American Depositary Shares for a total consideration of approximately USD 191 million[25] - The basic and diluted earnings per American Depositary Share (ADS) for Q4 2022 were RMB 0.32 (USD 0.05) and RMB 0.31 (USD 0.04), respectively, compared to a loss of RMB 0.78 in Q4 2021[15] - Adjusted earnings per ADS for Q4 2022 were RMB 1.31 (USD 0.19) and RMB 1.29 (USD 0.18), compared to RMB 0.04 in Q4 2021[15] - The basic net loss per American Depositary Share (ADS) of (0.78) for Q4 2022, an improvement from (1.17) in Q4 2021, indicating a positive trend[43] Asset and Liability Overview - The total assets of Beike Holdings increased from RMB 100.32 billion in 2021 to RMB 109.35 billion in 2022, representing a growth of approximately 10.1%[36] - Cash and cash equivalents decreased from RMB 20.45 billion in 2021 to RMB 19.41 billion in 2022, a decline of about 5.1%[36] - Total current liabilities rose from RMB 28.94 billion in 2021 to RMB 33.34 billion in 2022, an increase of approximately 15.5%[38] - The company's non-current liabilities increased from RMB 4.33 billion in 2021 to RMB 6.95 billion in 2022, reflecting a growth of around 60.5%[38] - The total liabilities of the company increased from RMB 33.26 billion in 2021 to RMB 40.29 billion in 2022, which is an increase of approximately 21.1%[38] - The total equity attributable to shareholders increased from RMB 67,055,493 in 2021 to RMB 69,054,438 in 2022, an increase of approximately 3%[40] Future Outlook - The company expects total net revenue for Q1 2023 to be between RMB 18 billion (USD 2.6 billion) and RMB 18.5 billion (USD 2.7 billion), representing an increase of approximately 43.4% to 47.4% from the same quarter in 2022[24] - The company will hold an earnings conference call on March 16, 2023, to discuss financial performance[26]

Financial Performance - Total transaction value for Q3 2022 was RMB 737.1 billion (USD 103.6 billion), a year-on-year decrease of 11.3%[1] - Net revenue for Q3 2022 was RMB 17.6 billion (USD 2.5 billion), a year-on-year decrease of 2.8%[2] - Net profit for Q3 2022 was RMB 716 million (USD 101 million), compared to a net loss of RMB 1.766 billion in the same period of 2021[2] - In Q3 2022, net revenue decreased by 2.8% to RMB 17.6 billion ($2.5 billion) from RMB 18.1 billion in Q3 2021, primarily due to a decline in total transaction volume[6] - Total transaction volume in Q3 2022 was RMB 737.1 billion ($103.6 billion), down 11.3% from RMB 830.7 billion in Q3 2021, affected by COVID-19 disruptions and liquidity pressures on developers[6] - The company expects total net revenue for Q4 2022 to be between RMB 14.5 billion (USD 2.0 billion) and RMB 15.0 billion (USD 2.1 billion), representing a decline of approximately 15.7% to 18.5% year-over-year[20] User and Agent Metrics - The number of stores as of September 30, 2022, was 41,398, a decrease of 23.3% year-on-year[2] - The number of active agents as of September 30, 2022, was 402,630, a decrease of 21.9% year-on-year[2] - Average monthly active users for Q3 2022 was 42.4 million, down from 46.1 million in the same period of 2021[2] Profitability and Margins - Gross profit increased by 72.8% to RMB 4.8 billion ($0.7 billion) in Q3 2022, with a gross margin of 27.0%, up from 15.2% in Q3 2021[12] - Operating profit for Q3 2022 was RMB 1.2 billion ($0.2 billion), compared to an operating loss of RMB 2.3 billion in Q3 2021, with an operating margin of 6.9%[14] - Adjusted operating profit for Q3 2022 was RMB 2.1 billion ($0.3 billion), with an adjusted operating margin of 12.0%[14] - The net profit margin for the three months ended September 30, 2022, was 4.1% for the three months ended September 30, 2022, compared to a negative margin of 9.8% for the same period in 2021[36] Cash Flow and Liquidity - The company maintained strong cash flow and operational liquidity despite external challenges[5] - As of September 30, 2022, the company had cash, cash equivalents, restricted cash, and short-term investments totaling RMB 57.5 billion (USD 8.1 billion)[19] - Cash and cash equivalents decreased to RMB 18,953,504 thousand from RMB 20,446,104 thousand, a decline of about 7.3%[32] - The net cash generated from operating activities for the nine months ended September 30, 2022, was 5,813,559 RMB, a significant increase from 2,315,937 RMB in the same period of 2021[40] Business Segments - Net revenue from existing home business increased by 16.6% to RMB 7.2 billion ($1 billion) in Q3 2022, driven by an 18.7% rise in total transaction volume to RMB 449 billion ($63.1 billion)[6] - New home business net revenue fell by 31.3% to RMB 7.8 billion ($1.1 billion) in Q3 2022, with total transaction volume dropping 36.2% to RMB 261.5 billion ($36.8 billion)[8] - The home decoration and furnishing business is showing positive growth, with increasing order volumes and average selling prices[5] - The company’s emerging business and others segment generated RMB 801,189 in revenue for the three months ended September 30, 2022, up from RMB 549,572 in the same period of 2021, reflecting a growth of 45.7%[35] Shareholder Returns and Equity - The company initiated a share repurchase plan allowing for the purchase of up to USD 1 billion of Class A ordinary shares and/or ADSs within 12 months, having repurchased approximately 3.3 million ADSs by September 30, 2022[21] - Total equity attributable to shareholders reached RMB 69,107,883 thousand as of September 30, 2022, up from RMB 66,973,976 thousand, a growth of approximately 1.7%[34] Adjusted Metrics and Non-GAAP Measures - The company utilizes non-GAAP financial metrics to assess operational performance, including adjusted operating profit and adjusted net profit, which help identify potential business trends[25] - The adjusted net profit attributable to shareholders excludes similar items, providing a clearer view of the company's financial performance[26] - The adjusted EBITDA is defined as net profit excluding various expenses, including tax, stock-based compensation, and depreciation[16] - The company emphasizes the importance of adjusted EBITDA, which excludes various expenses to provide a clearer picture of profitability[26] Future Outlook and Risks - The company continues to face uncertainties due to recent real estate policies and COVID-19 cases, which may adversely affect operations[20] - Forward-looking statements regarding the company's strategic and operational plans are subject to inherent risks and uncertainties[29] - The company does not undertake any obligation to update forward-looking statements unless required by applicable law[29] Operational Efficiency - The company is focusing on enhancing operational efficiency and profitability amid a challenging macroeconomic environment[5] - The company aims to reshape service operation models to efficiently provide real estate transaction services, including second-hand and new housing transactions[28] - The company is committed to enhancing its platform infrastructure and standards to support rapid and sustainable growth[28]

Financial Performance - Total transaction value for the six months ended June 30, 2022, was RMB 1,225.5 billion, a decrease of 46.5% compared to RMB 2,290.4 billion for the same period in 2021[3]. - Net income for the six months ended June 30, 2022, was RMB 26.3 billion, down 41.3% from RMB 44.9 billion in the same period of 2021[3]. - The company reported a net loss of RMB 2,485 million for the six months ended June 30, 2022, compared to a net profit of RMB 2,174 million in the same period of 2021[3]. - For the first half of 2022, the company's net revenue decreased by 41.3% to RMB 26.3 billion from RMB 44.9 billion in the same period of 2021[13]. - The company's existing home business net revenue fell by 41.1% to RMB 11.7 billion, with total transaction value dropping by 42.1% to RMB 76.76 billion[13]. - The new home business net revenue decreased by 47.2% to RMB 12.6 billion, with total transaction value declining by 50.6% to RMB 41.54 billion[15]. - Gross profit for the six months ended June 30, 2022, was RMB 4.9 billion, down from RMB 10.1 billion in the same period of 2021, with a gross margin of 18.7% compared to 22.6% in 2021[19]. - Operating loss for the six months ended June 30, 2022, was RMB 2.4 billion, compared to an operating profit of RMB 2.1 billion in the same period of 2021, resulting in an operating margin of -9.3%[21]. - Net loss for the six months ended June 30, 2022, was RMB 2.5 billion, compared to a net profit of RMB 2.2 billion in the same period of 2021[22]. - Adjusted operating loss for the six months ended June 30, 2022, was RMB 1.1 billion, compared to an adjusted operating profit of RMB 3.2 billion in the same period of 2021[21]. - Adjusted EBITDA for the six months ended June 30, 2022, was RMB 237 million, compared to RMB 4.6 billion in the same period of 2021[21]. Operational Metrics - The number of stores as of June 30, 2022, was 42,831, a decrease of 19.0% from 52,868 stores as of June 30, 2021[4]. - The number of active agents as of June 30, 2022, was 414,915, down 24.4% from 548,600 agents as of June 30, 2021[4]. - The average monthly active users for the three months ended June 30, 2022, was 43 million, compared to 52.1 million for the same period in 2021[4]. Strategic Initiatives - The company emphasized the synergy between its real estate transaction business, home decoration services, and rental services, reinforcing confidence in its "one body, two wings" strategy[5]. - The company launched the "JiQian 2.0" signing system to enhance the signing experience for customers, including risk disclosure and transaction service processes[6]. - The company is focusing on optimizing inventory management and improving service quality through product upgrades and strong operations[6]. - The company is reducing fixed costs and lowering the breakeven point for its self-operated brand, Lianjia, by adjusting the organizational structure of regional operations teams[6]. - The strategic cooperation with preferred developers is enhancing sales project quality and efficiency, with a notable increase in channel penetration rates[8]. - The company is implementing a "prepaid commission" model to improve sales efficiency and accelerate transaction turnover[8]. Cost Management - Total operating costs decreased by 38.4% from RMB 34.7 billion in the same period of 2021 to RMB 21.4 billion for the six months ended June 30, 2022[17]. - Total operating expenses decreased by 8.2% from RMB 8 billion in the same period of 2021 to RMB 7.4 billion for the six months ended June 30, 2022[20]. - Internal commissions and salaries operating costs were RMB 9 billion for the six months ended June 30, 2022, down from RMB 15 billion in the same period of 2021[17]. - Other costs decreased by 35.8% from RMB 1.6 billion in the same period of 2021 to RMB 1.1 billion for the six months ended June 30, 2022[18]. Cash Flow and Liquidity - Cash and cash equivalents, restricted cash, and short-term investments totaled RMB 50 billion as of June 30, 2022, down from RMB 56.1 billion as of December 31, 2021[26]. - The net cash generated from operating activities for the six months ended June 30, 2022, was RMB 3,808,031 thousand, compared to RMB 3,474,372 thousand for the same period in 2021[26]. - The net cash used in investing activities for the six months ended June 30, 2022, was RMB (11,338,319) thousand, compared to RMB (10,396,836) thousand for the same period in 2021[26]. - The company reported cash outflows for short-term investments of RMB 24,977,548 thousand for the six months ended June 30, 2022, compared to RMB 23,537,416 thousand in the same period of 2021, reflecting an increase of approximately 6%[50]. - The cash inflow from the maturity of short-term investments was RMB 27,161,071 thousand for the six months ended June 30, 2022, compared to RMB 21,736,427 thousand in the same period of 2021, representing an increase of about 25%[50]. - The company had a net cash inflow from financing activities of RMB 35,872 thousand for the six months ended June 30, 2022, compared to a net cash outflow of RMB 943,174 thousand in the same period of 2021[50]. Assets and Liabilities - As of June 30, 2022, total assets amounted to RMB 104,366,182, an increase from RMB 100,318,865 as of December 31, 2021, representing a growth of approximately 4.1%[43]. - Current assets decreased to RMB 60,415,042 from RMB 69,926,354, a decline of about 13.5%[43]. - Non-current assets increased significantly to RMB 43,951,140 from RMB 30,392,511, reflecting a growth of approximately 44.6%[43]. - Total liabilities rose to RMB 37,710,696 from RMB 33,263,372, indicating an increase of around 13.8%[45]. - Current liabilities totaled RMB 32,299,308, up from RMB 28,936,137, marking an increase of approximately 8.8%[44]. - The asset-liability ratio as of June 30, 2022, was 36.1%, compared to 33.2% as of December 31, 2021[31]. Employee and Talent Management - The company employed a total of 102,803 employees as of June 30, 2022, with the largest group being brokers and support staff at 70,675[37]. - The company provides competitive compensation and encourages self-development to attract and retain talent[37]. - The company participates in various employee social security plans mandated by local regulations, including pension and medical insurance[38]. Regulatory and Compliance Risks - The company faces foreign exchange risk due to the fluctuation of the RMB against the USD, with a depreciation of approximately 5.0% noted in the six months ending June 30, 2022[32]. - Interest rate risk arises primarily from floating-rate borrowings, which could affect future cash flows due to changes in interest rates[33]. - The company has not identified any significant issues in its interim financial data that would suggest non-compliance with US GAAP[41]. Accounting and Reporting Changes - The company changed its accounting method for capitalizing contract acquisition costs, aligning the amortization method with revenue recognition for the newly acquired home decoration business[77]. - The company’s financial statements are prepared in accordance with U.S. GAAP, and significant estimates include revenue recognition and impairment assessments for long-term assets[82]. - The company has not made adjustments to prior period financial data due to the immaterial cumulative impact of the accounting policy change[78]. Investments and Acquisitions - The company completed the acquisition of Shengdu Home Decoration in late April 2022, contributing to a significant growth in its home decoration business[9]. - The company completed the acquisition of Shengdu Home Decoration for a total consideration of RMB 3.92 billion and 44,315,854 restricted Class A ordinary shares on April 20, 2022[28]. - The total consideration for the acquisition of Saintdo Home Decoration was capped at RMB 8 billion, with an initial 6% stake acquired for RMB 480 million and an additional 43% stake for RMB 3,440 million[187]. Credit and Risk Management - The expected credit loss rate for accounts receivable and contract assets increased to 28.92% as of June 30, 2022, compared to 18.75% as of December 31, 2021[149]. - The company reported a significant increase in expected credit loss rates for loans, rising to 20.53% as of June 30, 2022, from 15.61% as of December 31, 2021[149]. - The overdue rate as of June 30, 2022, was 27.76%, compared to 24.2% as of December 31, 2021, indicating a deterioration in credit quality[167].

Financial Performance - Total transaction value for Q1 2022 was RMB 586 billion (USD 92.4 billion), a year-on-year decrease of 45.2%[1] - Net revenue for Q1 2022 was RMB 12.5 billion (USD 2 billion), down 39.4% year-on-year[1] - Net loss for Q1 2022 was RMB 620 million (USD 98 million), with adjusted net profit of RMB 28 million (USD 4 million)[1] - In Q1 2022, net revenue decreased by 39.4% to RMB 12.5 billion (USD 2 billion) from RMB 20.7 billion in Q1 2021, primarily due to a decline in total transaction volume[4] - Total transaction volume in Q1 2022 was RMB 586 billion (USD 92.4 billion), down 45.2% from RMB 1,069.6 billion in Q1 2021, attributed to a continuous decline in both existing and new housing markets and COVID-19 restrictions[4] - Revenue from existing housing business fell 39.2% to RMB 6.2 billion (USD 1 billion) in Q1 2022, with total transaction volume dropping 44.5% to RMB 374.1 billion (USD 59 billion)[4] - New housing business revenue decreased by 40.5% to RMB 5.9 billion (USD 0.9 billion), with total transaction volume down 43.9% to RMB 192.7 billion (USD 30.4 billion)[5] - Gross profit for Q1 2022 was RMB 2.2 billion (USD 0.4 billion), with a gross margin of 17.7%, down from 23.3% in Q1 2021, mainly due to higher fixed salary costs and lower net revenue[7] - Operating loss for Q1 2022 was RMB 918 million (USD 145 million), compared to an operating profit of RMB 1,013 million in Q1 2021, resulting in an operating margin of -7.3%[8] - Adjusted operating loss for Q1 2022 was RMB 450 million (USD 71 million), with an adjusted operating margin of -3.6%, down from 7.6% in Q1 2021[8] - The company reported a decrease in other costs to RMB 500 million (USD 0.1 billion), down 35.9% from RMB 800 million in Q1 2021, primarily due to reduced tax and financial service costs[6] - In Q1 2022, the company reported a net loss of RMB 620 million (USD 98 million), compared to a net profit of RMB 1,059 million in Q1 2021, representing a significant decline[9] - Adjusted net profit for Q1 2022 was RMB 28 million (USD 4 million), down from RMB 1,502 million in the same period of 2021[9] - The diluted net loss per American Depositary Share (ADS) for Q1 2022 was RMB 0.52 (USD 0.08), compared to a diluted net profit of RMB 0.88 in Q1 2021[9] Operational Metrics - Number of stores as of March 31, 2022, was 45,777, a decrease of 6.0% year-on-year[2] - Active agents as of March 31, 2022, totaled 427,379, down 19.1% year-on-year[2] - Monthly active users averaged 39.7 million in Q1 2022, compared to 48.5 million in the same period of 2021[2] Strategic Developments - The company completed the acquisition of Saint Decor, which is expected to accelerate growth in the home decoration business[3] - The company successfully dual-listed on the Hong Kong Stock Exchange on May 11, 2022, to protect stakeholder interests[3] - The company remains optimistic about its "one body, two wings" strategy and aims to explore opportunities in the thriving housing market[3] - The company is focusing on enhancing collaboration with quality real estate developers to improve efficiency through data products[2] Future Outlook - For Q2 2022, the company expects total net revenue to be between RMB 10 billion (USD 1.6 billion) and RMB 10.5 billion (USD 1.7 billion), reflecting a decline of approximately 56.6% to 58.6% year-over-year[10] - The company announced a proposed share repurchase plan to buy back up to USD 1 billion of American Depositary Shares within 12 months, subject to shareholder approval[11] Non-GAAP Financial Metrics - The company utilizes non-GAAP financial metrics, including adjusted net profit, to assess operational performance and provide insights into business trends[14] - The company emphasizes that non-GAAP financial metrics should not be considered in isolation and encourages investors to review financial data comprehensively[15] - Adjusted operating profit is defined as operating profit excluding stock-based compensation and intangible asset amortization from acquisitions and business cooperation agreements[15] - Adjusted net profit is calculated by excluding stock-based compensation, intangible asset amortization, fair value changes of long-term investments, and other specified adjustments[15] Company Structure and Governance - The board of directors includes both executive and independent non-executive members, ensuring diverse governance[19] - The company has over 20 years of operational experience since the establishment of its leading real estate brokerage brand, Lianjia[17] Asset and Liability Overview - As of March 31, 2022, the company's cash and cash equivalents, restricted cash, and short-term investments totaled RMB 50.2 billion (USD 7.9 billion)[9] - As of March 31, 2022, the total assets of the company amounted to RMB 99,303,396, a decrease from RMB 100,318,865 as of December 31, 2021, representing a decline of approximately 1%[21] - The company's total liabilities decreased to RMB 32,773,436 as of March 31, 2022, down from RMB 33,263,372 as of December 31, 2021, reflecting a reduction of about 1.5%[22] - The total current assets as of March 31, 2022, were RMB 61,475,635, down from RMB 69,926,354 as of December 31, 2021, indicating a decrease of about 12%[21] - The company's cash and cash equivalents decreased to RMB 16,579,055 as of March 31, 2022, from RMB 20,446,104 as of December 31, 2021, a reduction of approximately 19%[21] - The company's long-term investments increased to RMB 24,467,116 as of March 31, 2022, from RMB 17,038,171 as of December 31, 2021, representing a growth of about 44%[21] - The total equity attributable to shareholders as of March 31, 2022, was RMB 66,529,960, a slight decrease from RMB 67,055,493 as of December 31, 2021, indicating a decline of approximately 0.8%[25] Cash Flow Analysis - For the three months ended March 31, 2022, the net cash generated from operating activities was RMB 834,751 thousand, a significant decrease from RMB 2,473,055 thousand in the same period of 2021[31] - The net cash used in investing activities for the same period was RMB (4,257,292) thousand, compared to RMB (11,514,061) thousand in Q1 2021, indicating a reduction in investment outflows[31] - The net cash generated from financing activities was RMB 128,971 thousand, a turnaround from a net cash used of RMB (930,975) thousand in Q1 2021[31] - The total cash and cash equivalents decreased by RMB 3,321,933 thousand, down from a decrease of RMB 9,773,380 thousand in the same quarter of the previous year[31] Contribution Profit Analysis - The contribution profit from the existing home business for Q1 2022 was RMB 2,323,669 thousand, down from RMB 4,079,850 thousand in Q1 2021, reflecting a decline of approximately 43%[32] - The new home business generated a contribution profit of RMB 1,080,379 thousand in Q1 2022, a decrease of about 44% from RMB 1,922,318 thousand in the same quarter of 2021[32] - The emerging business and others reported a contribution profit of RMB 216,192 thousand, down from RMB 465,790 thousand in Q1 2021, representing a decline of approximately 54%[32] - The net income from the existing home business for Q1 2022 was RMB 6,151,456 thousand, a decrease of about 40% compared to RMB 10,196,295 thousand in Q1 2021[32] - The net income from the new home business for Q1 2022 was RMB 5,910,044 thousand, down from RMB 9,928,347 thousand in the same period of 2021, indicating a decline of approximately 40%[32]