Financial Performance - Total transaction value for the six months ended June 30, 2023, was RMB 1,752.1 billion, an increase of 43.0% compared to RMB 1,225.5 billion in the same period of 2022[1]. - Net income for the six months ended June 30, 2023, was RMB 39.8 billion, a 51.0% increase from RMB 26.3 billion in the same period of 2022[3]. - Adjusted net profit for the six months ended June 30, 2023, was RMB 59.25 billion, compared to an adjusted net loss of RMB 5.92 billion in the same period of 2022[3]. - The total transaction value for existing home sales was RMB 1,120.8 billion, a 46.0% increase from RMB 767.6 billion in the same period of 2022[1]. - The total transaction value for new home sales was RMB 572.9 billion, a 37.9% increase from RMB 415.4 billion in the same period of 2022[1]. - For the six months ended June 30, 2023, net income increased by 51.0% to RMB 39.8 billion, up from RMB 26.3 billion in the same period of 2022, primarily due to an increase in total transaction volume[13]. - Total transaction volume for the same period reached RMB 1.7521 trillion, a 43.0% increase from RMB 1.2255 trillion in 2022, driven by the recovery of the housing market post-COVID-19 restrictions[13]. - The net income from the existing home business rose by 33.5% to RMB 15.6 billion, with total transaction volume increasing by 46.0% to RMB 1.1208 trillion[13]. - The net income from the new home business grew by 36.0% to RMB 17.1 billion, with total transaction volume rising by 37.9% to RMB 572.9 billion[14]. - The net profit for the six months ended June 30, 2023, was RMB 4 billion, compared to a net loss of RMB 2.5 billion in the same period of 2022[20]. - The total net revenue for the six months ended June 30, 2023, was RMB 39,762,001, an increase of 51% compared to RMB 26,325,057 for the same period in 2022[61]. Operational Metrics - The number of active agents as of June 30, 2023, was 409,054, a 7.6% increase from 380,284 as of June 30, 2022[3]. - The average monthly active users for the three months ended June 30, 2023, reached 48 million, up from 43 million in the same period of 2022[3]. - The number of stores as of June 30, 2023, was 43,000, stable compared to 42,831 as of June 30, 2022[3]. - The company has focused on enhancing the operational efficiency of agents and stores, leading to a 16% year-on-year increase in the average number of agents per store in the second quarter[6]. - The rental housing management service managed over 120,000 units as of June 30, 2023, with an occupancy rate of 94.5%, up 1.1 percentage points from Q1 2023[11]. Revenue Segments - The home decoration and furnishing business achieved a total transaction value of RMB 6.1 billion, significantly up from RMB 1.5 billion in the same period of 2022[1]. - The net revenue for the home decoration and furnishing segment for the six months ended June 30, 2023, was RMB 4 billion, up from RMB 1.1 billion in the same period of 2022, primarily due to the acquisition of Shengdu Home Decoration Co., Ltd. and increased order volume[15]. - The net revenue from emerging businesses and others increased by 217.3% to RMB 3 billion for the six months ended June 30, 2023, compared to RMB 1 billion in the same period of 2022, mainly driven by growth in rental housing management services and financial services[15]. Cost and Profitability - Total operating costs rose by 31.2% to RMB 28.1 billion for the six months ended June 30, 2023, from RMB 21.4 billion in the same period of 2022[16]. - Gross profit increased by 137.3% to RMB 11.7 billion for the six months ended June 30, 2023, with a gross margin of 29.4%, compared to 18.7% in the same period of 2022[17]. - Operating profit for the six months ended June 30, 2023, was RMB 4.1 billion, compared to an operating loss of RMB 2.4 billion in the same period of 2022, resulting in an operating margin of 10.2%[18]. - Adjusted operating profit for the six months ended June 30, 2023, was RMB 6 billion, compared to an adjusted operating loss of RMB 1.1 billion in the same period of 2022, with an adjusted operating margin of 15.0%[19]. Cash Flow and Liquidity - As of June 30, 2023, the company's cash, cash equivalents, restricted cash, and short-term investments totaled RMB 60.8 billion, slightly down from RMB 61.1 billion as of December 31, 2022[21]. - As of June 30, 2023, the net cash generated from operating activities was RMB 7,431,689 thousand, compared to RMB 3,808,031 thousand for the same period in 2022, representing an increase of approximately 95.5%[22]. - The total cash and cash equivalents at the end of the period reached RMB 37,812,092 thousand, up from RMB 19,380,403 thousand year-over-year, indicating a growth of approximately 95.2%[22]. - The company's total liabilities as of June 30, 2023, amounted to RMB 14,674,110 thousand, an increase from RMB 12,191,275 thousand as of December 31, 2022, reflecting a rise of approximately 20.4%[22]. - The debt-to-asset ratio as of June 30, 2023, was 38.0%, compared to 36.8% as of December 31, 2022, indicating a slight increase in leverage[26]. Shareholder Returns - The board has approved a special cash dividend of $0.057 per ordinary share and $0.171 per American depositary share, totaling approximately $200 million to be paid from the company's cash reserves[39]. - To qualify for the dividend, ordinary shareholders must submit their share transfer documents by September 15, 2023, at 4:30 PM Beijing/Hong Kong time[39]. - The expected payment date for the dividend is around September 27, 2023, for ordinary shareholders and October 3, 2023, for American depositary shareholders[39]. - The company has initiated a share repurchase plan allowing for the buyback of up to $1 billion of Class A common stock and/or American Depositary Shares within 12 months, which has been extended to $2 billion until August 31, 2024[34]. - As of August 31, 2023, the company repurchased a total of 40,968,424 American Depositary Shares, equivalent to 122,905,272 Class A common shares, for a total consideration of $604,957,928[34]. Corporate Governance - The board has not separated the roles of Chairman and CEO, believing that this structure enhances unified leadership and effective strategic planning[38]. - The company has complied with all applicable principles and code provisions of the corporate governance code during the reporting period[38]. - The board of directors consists of executive and non-executive members, ensuring diverse oversight and governance[45]. Future Outlook - Forward-looking statements are made regarding the company's business outlook and strategic plans, which involve inherent risks and uncertainties[45]. - The company has no major future plans for significant investments or capital assets as of June 30, 2023[26]. Accounting Policies - The company uses non-GAAP financial metrics to assess its operating performance, including adjusted operating profit and adjusted net profit, to identify potential business trends[42]. - Adjusted operating profit is defined as operating profit excluding stock-based compensation, intangible asset amortization, and impairment of goodwill and other long-term assets[43]. - The company encourages investors to review non-GAAP financial metrics alongside GAAP metrics for a comprehensive understanding of its performance[43].

Financial Performance - Total transaction value for Q2 2023 reached RMB 780.6 billion (USD 107.6 billion), a year-on-year increase of 22.1%[1] - Net revenue for Q2 2023 was RMB 19.5 billion (USD 2.7 billion), reflecting a year-on-year growth of 41.4%[2] - Net profit for Q2 2023 was RMB 1.3 billion (USD 179 million), compared to a net loss of RMB 1.87 billion in the same period last year[2] - Adjusted net profit for Q2 2023 was RMB 2.36 billion (USD 326 million), compared to a net loss of RMB 619 million in Q2 2022[2] - Gross profit for Q2 2023 rose by 97.3% year-over-year to RMB 5.3 billion (USD 0.7 billion), with a gross margin of 27.4%, up from 19.7% in Q2 2022[9] - Operating profit for Q2 2023 was RMB 1.08 billion (USD 0.149 billion), compared to an operating loss of RMB 1.52 billion in Q2 2022, resulting in an operating margin of 5.5%[10] - Adjusted operating profit for Q2 2023 was RMB 2.15 billion (USD 0.296 billion), compared to an adjusted operating loss of RMB 690 million in Q2 2022, with an adjusted operating margin of 11.0%[11] - The company reported a significant increase in emerging business and other net revenue, which rose by 213.9% year-over-year to RMB 1.7 billion (USD 0.2 billion) in Q2 2023, mainly due to growth in rental housing management and financial services[7] - Total net revenue for the six months ended June 30, 2023, was RMB 39,762,001, an increase of 51% compared to RMB 26,325,057 for the same period in 2022[30] Business Segments - Existing home business net revenue increased by 15.9% year-over-year to RMB 6.4 billion (USD 0.9 billion) in Q2 2023, with total transaction volume rising by 16.0% to RMB 45.65 billion (USD 6.3 billion)[5] - New home business net revenue grew by 30.4% year-over-year to RMB 8.7 billion (USD 1.2 billion) in Q2 2023, with total transaction volume increasing by 32.4% to RMB 29.5 billion (USD 4.07 billion)[6] - Home decoration and furnishing net revenue surged to RMB 2.6 billion (USD 0.4 billion) in Q2 2023, up from RMB 1 billion in Q2 2022, driven by increased orders and improved delivery capabilities[6] - The revenue from the existing home business for the three months ended June 30, 2023, was RMB 6,415,888, an increase of 16% from RMB 5,534,809 in the same period of 2022[30] - The contribution profit from the new home business for the three months ended June 30, 2023, was RMB 2,365,307 thousand, up 50.5% from RMB 1,570,772 thousand in the same period of 2022[39] - The contribution profit from the home decoration and furnishing business for the three months ended June 30, 2023, was RMB 776,759 thousand, a significant increase from RMB 295,063 thousand in the same period of 2022[39] - The net income from emerging businesses and others for the three months ended June 30, 2023, was RMB 1,747,504 thousand, compared to RMB 556,622 thousand in the same period of 2022, marking a growth of 213.5%[39] Operational Metrics - The number of active stores as of June 30, 2023, was 41,076, remaining stable compared to the same period last year[2] - The number of active agents increased by 5.0% year-on-year to 435,813 as of June 30, 2023[2] - Average monthly active users reached 48 million in Q2 2023, up from 43 million in the same period last year[2] Strategic Initiatives - The company upgraded its corporate strategy to "One Body, Three Wings" in July 2023, introducing "Beihome" to enhance new housing supply[4] - The company aims to improve service quality and expand its offerings in the housing sector, including transactions, rentals, and home decoration[4] - The company is committed to maintaining a healthy balance sheet and efficient capital allocation to support growth in the housing services sector[4] - The company aims to enhance its platform capabilities and expand its market presence, focusing on strategic initiatives and potential acquisitions in the upcoming quarters[26] - The company is investing in new product development and technology advancements to drive future growth and improve operational efficiency[26] - The management anticipates continued growth in user engagement and transaction volume on its platform, supported by ongoing marketing efforts and service enhancements[26] Financial Position - As of June 30, 2023, the total cash, cash equivalents, restricted cash, and short-term investments amounted to RMB 60.8 billion (USD 8.4 billion)[15] - The total assets increased to RMB 117,415,189 thousand as of June 30, 2023, up from RMB 109,347,347 thousand as of December 31, 2022, reflecting a growth of about 7.5%[28] - Total liabilities rose to RMB 44,629,190 thousand as of June 30, 2023, compared to RMB 40,292,909 thousand as of December 31, 2022, indicating an increase of approximately 10.5%[28] - The total current liabilities increased to RMB 36,856,790 thousand as of June 30, 2023, from RMB 33,341,318 thousand as of December 31, 2022, marking a rise of about 15.1%[28] - The company reported a total non-current assets increase to RMB 47,242,494 thousand as of June 30, 2023, up from RMB 38,922,672 thousand as of December 31, 2022, which is an increase of approximately 21.4%[28] Shareholder Returns - The company has expanded its share repurchase program from USD 1 billion to USD 2 billion, extending it until August 31, 2024[17] - A special cash dividend of USD 0.057 per ordinary share or USD 0.171 per American depositary share has been approved, totaling approximately USD 200 million[18] Future Outlook - The company expects total net revenue for Q3 2023 to be between RMB 15.5 billion (USD 2.1 billion) and RMB 16 billion (USD 2.2 billion), representing a decline of approximately 9.1% to 11.9% year-over-year[16] Non-GAAP Metrics - The company utilizes non-GAAP financial metrics to assess operational performance, including adjusted operating profit and adjusted net profit[22] - Adjusted operating profit is defined as operating profit excluding stock-based compensation, intangible asset amortization, and impairment of goodwill and other long-term assets[23] - The company emphasizes that non-GAAP metrics should not be viewed in isolation and encourages investors to review financial data comprehensively[23]

KE Holdings Inc. (NYSE:BEKE) Q1 2023 Earnings Conference Call May 18, 2023 8:00 AM ET Company Participants Siting Li - Investor Relations Stanley Peng - Co-Founder, Chairman and Chief Executive Officer Tao Xu - Executive Director and Chief Financial Officer Conference Call Participants Harry Chen - Citigroup Eddy Wong - Morgan Stanley Timothy Zhao - Goldman Sachs Xiaodan Zhang - CICC Operator Hello ladies and gentlemen. Thank you for standing by for KE Holdings Inc’s First Quarter 2023 Earnings Conference Call. ...

[Business and Financial Highlights](index=1&type=section&id=Business%20and%20Financial%20Highlights) In the first quarter of 2023, KE Holdings experienced significant year-over-year growth, with total GTV increasing by 65.8% to RMB 971.5 billion and net revenues rising by 61.6% to RMB 20.3 billion. The company achieved a net income of RMB 2.75 billion, a substantial turnaround from a net loss in the prior year. While the number of stores and active stores saw a slight decrease, the number of agents and active agents increased, alongside a rise in mobile monthly active users Q1 2023 Key Financial and Operational Metrics | Metric | Q1 2023 | YoY Change | | :--- | :--- | :--- | | **Gross Transaction Value (GTV)** | **RMB 971.5 billion** | **+65.8%** | | - Existing Home Transactions | RMB 664.3 billion | +77.6% | | - New Home Transactions | RMB 277.9 billion | +44.2% | | - Home Renovation & Furnishing | RMB 2.7 billion | +1250% | | - Emerging & Other Services | RMB 26.7 billion | +40.6% | | **Net Revenues** | **RMB 20.3 billion** | **+61.6%** | | **Net Income** | **RMB 2.75 billion** | From Net Loss | | **Adjusted Net Income** | **RMB 3.56 billion** | +12618% | | Number of Stores | 41,275 | -9.8% | | Number of Agents | 435,780 | +2.0% | | Mobile MAU | 45.4 million | +14.4% | [Management Commentary](index=2&type=section&id=Management%20Commentary) Management attributed the strong Q1 performance to a rebound in China's real estate market, the release of pent-up demand, and the company's strategic advantages, including its ACN (Agent Cooperation Network) and focus on high-quality growth. The company significantly outpaced the industry's GTV growth. Looking forward, the focus remains on improving service quality, strengthening the ACN, enhancing brand and platform efficiency, and expanding into the broader residential services sector to meet consumer needs for higher quality homes and services - The company's GTV growth in both existing and new home transactions significantly outpaced the industry, driven by a market rebound and the company's ACN advantages[6](index=6&type=chunk) - Future strategy involves strengthening the ACN, enhancing brand and platform efficiency through technology, and expanding to meet consumer needs for higher quality housing-related products and services[6](index=6&type=chunk) - The CFO highlighted that a streamlined cost structure led to the highest gross and operating margins since the company's NYSE listing, with non-GAAP net income increasing by **137%** compared to Q1 2021, a period with similar revenue scale[7](index=7&type=chunk) [Financial Results Analysis](index=3&type=section&id=Financial%20Results%20Analysis) The company's financial performance in Q1 2023 showed a dramatic improvement. Net revenues surged 61.6% to RMB 20.3 billion, driven by strong GTV growth across all business lines. Gross profit more than doubled to RMB 6.3 billion, with gross margin expanding to 31.3% from 17.7%. The company swung from an operating loss to an operating income of RMB 3.0 billion and from a net loss to a net income of RMB 2.75 billion, reflecting both top-line recovery and effective cost management [Net Revenues](index=3&type=section&id=Net%20Revenues) Total net revenues grew 61.6% YoY to RMB 20.3 billion, primarily due to a 65.8% increase in total GTV. Existing home transaction services revenue rose 49.3% to RMB 9.2 billion. New home transaction services revenue increased 42.2% to RMB 8.4 billion. Home renovation and furnishing revenue saw a massive jump to RMB 1.4 billion, largely due to the Shengdu acquisition. Emerging and other services revenue grew 222.1% to RMB 1.3 billion Q1 2023 Net Revenues by Segment (in RMB billions) | Segment | Q1 2023 | Q1 2022 | YoY Change | | :--- | :--- | :--- | :--- | | Existing Home Transaction Services | 9.2 | 6.2 | +49.3% | | New Home Transaction Services | 8.4 | 5.9 | +42.2% | | Home Renovation and Furnishing | 1.4 | 0.09 | +1509% | | Emerging and Other Services | 1.3 | 0.4 | +222.1% | | **Total Net Revenues** | **20.3** | **12.5** | **+61.6%** | - The significant increase in home renovation and furnishing revenue was primarily due to the acquisition of Shengdu Home Renovation Co., Ltd. in Q2 2022[13](index=13&type=chunk) [Cost of Revenues and Gross Profit](index=5&type=section&id=Cost%20of%20Revenues%20and%20Gross%20Profit) Cost of revenues increased 34.9% to RMB 13.9 billion, a slower pace than revenue growth. The increase was mainly driven by higher commission splits and internal commissions due to increased GTV. However, costs related to stores decreased by 22.4% due to a reduction in Lianjia stores. Consequently, gross profit surged 186.1% to RMB 6.3 billion, and gross margin expanded significantly from 17.7% in Q1 2022 to 31.3% in Q1 2023 Q1 2023 Gross Profit and Margin | Metric | Q1 2023 | Q1 2022 | YoY Change | | :--- | :--- | :--- | :--- | | Gross Profit (RMB) | 6.3 billion | 2.2 billion | +186.1% | | Gross Margin | 31.3% | 17.7% | +13.6 p.p. | - The improvement in gross margin was driven by higher contribution margins across all segments and a relatively lower percentage of fixed costs like store-related expenses[20](index=20&type=chunk) - Cost related to stores decreased by **22.4%** to **RMB 0.7 billion**, mainly due to the decrease in the number of Lianjia stores[17](index=17&type=chunk) [Operating Expenses and Income](index=6&type=section&id=Operating%20Expenses%20and%20Income) Total operating expenses rose 7.5% to RMB 3.4 billion. Sales and marketing expenses increased 50.3% due to the consolidation of Shengdu, while R&D expenses decreased by 39.0% due to lower personnel costs. The company reported an income from operations of RMB 2,978 million, a significant turnaround from a loss of RMB 918 million in the prior-year period. The operating margin was 14.7%, compared to -7.3% in Q1 2022, reflecting higher gross profit and improved operating leverage Q1 2023 Operating Expenses (in RMB millions) | Expense Category | Q1 2023 | Q1 2022 | YoY Change | | :--- | :--- | :--- | :--- | | General & Administrative | 1,621 | 1,528 | +6.1% | | Sales & Marketing | 1,294 | 861 | +50.3% | | Research & Development | 457 | 749 | -39.0% | | **Total Operating Expenses** | **3,372** | **3,138** | **+7.5%** | Q1 2023 Operating Income and Margin | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Income (Loss) from Operations (RMB) | 2,978 million | (918 million) | | Operating Margin | 14.7% | -7.3% | | Adjusted Income from Operations (RMB) | 3,830 million | (450 million) | | Adjusted Operating Margin | 18.9% | -3.6% | [Net Income and Earnings Per Share (EPS)](index=8&type=section&id=Net%20Income%20and%20Earnings%20Per%20Share%20(EPS)) The company achieved a net income of RMB 2,750 million in Q1 2023, compared to a net loss of RMB 620 million in Q1 2022. Adjusted net income was RMB 3,561 million. This resulted in a diluted net income per ADS of RMB 2.26 (US$0.33), a stark contrast to the net loss per ADS of RMB 0.52 in the same period last year. Adjusted diluted net income per ADS was RMB 2.92 (US$0.43) Q1 2023 Net Income and EPS | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net Income (Loss) (RMB) | 2,750 million | (620 million) | | Adjusted Net Income (RMB) | 3,561 million | 28 million | | Diluted Net Income (Loss) per ADS (RMB) | 2.26 | (0.52) | | Adjusted Diluted Net Income per ADS (RMB) | 2.92 | 0.02 | [Liquidity](index=9&type=section&id=Liquidity) As of March 31, 2023, KE Holdings maintained a strong liquidity position with a combined balance of cash, cash equivalents, restricted cash, and short-term investments amounting to RMB 66.6 billion (US$9.7 billion) - The company's combined balance of cash, cash equivalents, restricted cash, and short-term investments was **RMB 66.6 billion (US$9.7 billion)** as of March 31, 2023[31](index=31&type=chunk) [Business Outlook and Corporate Actions](index=9&type=section&id=Business%20Outlook%20and%20Corporate%20Actions) The company provided a positive outlook for the second quarter of 2023, forecasting net revenues between RMB 18.5 billion and RMB 19.0 billion, representing a YoY increase of 34.3% to 37.9%. Additionally, the company continued its share repurchase program, having purchased approximately 16.2 million ADSs for US$228.6 million between September 1, 2022, and March 31, 2023 - For Q2 2023, the company expects total net revenues to be between **RMB 18.5 billion** and **RMB 19.0 billion**, an increase of **34.3% to 37.9%** year-over-year[32](index=32&type=chunk) - Under its US$1 billion share repurchase program, the company bought back approximately **16.2 million ADSs** for a total of **US$228.6 million** from September 1, 2022, to March 31, 2023[33](index=33&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=14&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The unaudited financial statements provide detailed figures for the company's financial position and performance. The balance sheet as of March 31, 2023, shows total assets of RMB 118.0 billion and total liabilities of RMB 46.0 billion. The statement of operations details the significant revenue growth and return to profitability in Q1 2023. The cash flow statement indicates strong net cash provided by operating activities at RMB 7.6 billion [Consolidated Balance Sheets](index=14&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2023, total assets increased to RMB 118.0 billion from RMB 109.3 billion at year-end 2022. This was driven by a significant increase in cash and cash equivalents. Total liabilities also increased to RMB 46.0 billion from RMB 40.3 billion, primarily due to higher customer deposits payable and contract liabilities. Total shareholders' equity rose to RMB 72.0 billion Key Balance Sheet Items (in RMB billions) | Account | March 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **118.0** | **109.3** | | Cash, Cash Equivalents, Restricted Cash & Short-term Investments | 66.6 | 61.1 | | **Total Liabilities** | **46.0** | **40.3** | | **Total Shareholders' Equity** | **72.0** | **69.1** | [Consolidated Statements of Operations](index=17&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended March 31, 2023, the company reported total net revenues of RMB 20.3 billion, a 61.6% increase from RMB 12.5 billion in Q1 2022. Gross profit was RMB 6.3 billion, up from RMB 2.2 billion. The company recorded an income from operations of RMB 3.0 billion, reversing a loss of RMB 0.9 billion, and achieved a net income of RMB 2.75 billion, reversing a net loss of RMB 0.62 billion in the prior-year period Q1 2023 vs Q1 2022 Income Statement Highlights (in RMB billions) | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Total Net Revenues | 20.3 | 12.5 | | Gross Profit | 6.3 | 2.2 | | Income (Loss) from Operations | 3.0 | (0.9) | | Net Income (Loss) | 2.75 | (0.62) | [Consolidated Statements of Cash Flows](index=22&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For Q1 2023, net cash provided by operating activities was robust at RMB 7.6 billion, a significant improvement from RMB 0.8 billion in Q1 2022. Net cash provided by investing activities was RMB 5.6 billion, a reversal from cash used in the prior year, while financing activities used RMB 0.3 billion. This resulted in a net increase in cash, cash equivalents, and restricted cash of RMB 12.9 billion for the quarter Q1 2023 vs Q1 2022 Cash Flow Highlights (in RMB billions) | Cash Flow Activity | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 7.6 | 0.8 | | Net Cash from (used in) Investing Activities | 5.6 | (4.3) | | Net Cash from (used in) Financing Activities | (0.3) | 0.1 | | **Net Increase (Decrease) in Cash** | **12.9** | **(3.3)** | [Reconciliation of GAAP and Non-GAAP Financial Measures](index=20&type=section&id=Reconciliation%20of%20GAAP%20and%20Non-GAAP%20Financial%20Measures) The company provides reconciliations for non-GAAP measures to their most comparable GAAP counterparts. For Q1 2023, adjusted income from operations was RMB 3.8 billion after excluding share-based compensation and amortization of certain intangible assets. Adjusted net income was RMB 3.6 billion, primarily adjusted for share-based compensation, amortization, changes in fair value of investments, and related tax effects. Adjusted EBITDA for the quarter was RMB 4.6 billion Q1 2023 GAAP to Non-GAAP Reconciliation (in RMB billions) | Metric | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | Income from Operations | 3.0 | +0.8 | 3.8 | | Net Income | 2.75 | +0.81 | 3.56 | - Major non-GAAP adjustments include share-based compensation expenses (**RMB 701.8 million**), amortization of intangible assets (**RMB 150.1 million**), and changes in fair value of investments[65](index=65&type=chunk)

Financial Performance - Total transaction value for Q1 2023 reached RMB 971.5 billion (USD 141.5 billion), a year-on-year increase of 65.8%[1] - Net revenue for Q1 2023 was RMB 20.3 billion (USD 3.0 billion), up 61.6% year-on-year[2] - Net profit for Q1 2023 was RMB 2.75 billion (USD 400 million), compared to a net loss of RMB 620 million in the same period of 2022[2] - Adjusted net profit for Q1 2023 was RMB 3.56 billion (USD 519 million), a significant increase from RMB 28 million in Q1 2022[2] - Gross profit surged by 186.1% to RMB 6.3 billion (USD 0.9 billion), with a gross margin of 31.3%, up from 17.7% in the same period last year[8] - Operating profit for Q1 2023 was RMB 2.98 billion (USD 0.43 billion), compared to an operating loss of RMB 918 million in Q1 2022, resulting in an operating margin of 14.7%[9] - Adjusted operating profit reached RMB 3.83 billion (USD 0.56 billion), with an adjusted operating margin of 18.9%, compared to an adjusted operating loss of RMB 450 million in Q1 2022[9] - The company reported a net profit of RMB 2,749,746 thousand in Q1 2023, a significant recovery from a net loss of RMB 619,632 thousand in Q1 2022[26] - The total comprehensive income for the three months ended March 31, 2023, was RMB 2,424,671, compared to a total comprehensive loss of RMB (912,464) for the same period in 2022[27] User and Market Metrics - The number of active stores as of March 31, 2023, was 39,622, a decrease of 7.8% year-on-year[2] - The number of active agents as of March 31, 2023, was 411,526, an increase of 7.8% year-on-year[3] - Average monthly active users for Q1 2023 reached 45.4 million, compared to 39.7 million in Q1 2022[2] - The company reported a significant increase in user data, with a notable rise in active users contributing to the improved financial performance[30] Revenue Breakdown - In Q1 2023, net revenue increased by 61.6% year-over-year to RMB 20.3 billion (USD 3 billion) from RMB 12.5 billion in Q1 2022, driven by a total transaction value increase of 65.8% to RMB 97.15 billion (USD 14.15 billion)[5] - The net revenue from existing home business rose by 49.3% to RMB 9.2 billion (USD 1.3 billion), with total transaction value increasing by 77.6% to RMB 66.43 billion (USD 9.67 billion)[5] - New home business net revenue increased by 42.2% to RMB 8.4 billion (USD 1.2 billion), with total transaction value rising by 44.2% to RMB 27.79 billion (USD 4.05 billion)[6] - Emerging business and other net revenue rose by 222.1% to RMB 1.3 billion (USD 0.2 billion), driven by growth in rental housing management and financial services[6] Cost and Expenses - The total operating costs increased by 34.9% to RMB 13.9 billion (USD 2 billion), primarily due to higher commission costs associated with increased transaction volumes[7] - The company’s operating expenses totaled RMB 3,371,803 thousand in Q1 2023, compared to RMB 3,137,718 thousand in Q1 2022, reflecting a year-over-year increase of 7.5%[26] Cash and Liquidity - The company reported cash, cash equivalents, restricted cash, and short-term investments totaling RMB 66.6 billion (USD 9.7 billion) as of March 31, 2023[11] - Cash and cash equivalents increased from RMB 19,413,202 thousand as of December 31, 2022, to RMB 30,594,718 thousand as of March 31, 2023, a rise of 57.7%[22] - The total cash and cash equivalents at the end of Q1 2023 amounted to RMB 38,454,355, an increase from RMB 23,410,276 at the end of Q1 2022[33] Future Outlook - For Q2 2023, the company expects total net revenue to be between RMB 18.5 billion (USD 2.7 billion) and RMB 19.0 billion (USD 2.8 billion), representing an increase of approximately 34.3% to 37.9% year-over-year[12] - The company is closely monitoring the impact of recent real estate policies and measures on its operations, indicating potential uncertainties ahead[12] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[30] Shareholder Actions - The company initiated a share repurchase program allowing for the purchase of up to USD 1 billion of Class A ordinary shares and/or American Depositary Shares within 12 months[13] - As of March 31, 2023, approximately 16.2 million American Depositary Shares were repurchased under the program for a total consideration of approximately USD 228.6 million[13] Non-GAAP Metrics - 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[17] - The adjusted EBITDA for Q1 2023 was not explicitly stated but is a key financial metric that excludes various expenses[11] - The adjusted EBITDA excludes items such as income tax expenses, stock-based compensation, and depreciation of property, plant, and equipment[18] - The company emphasizes that non-GAAP metrics should not be viewed in isolation and encourages investors to review financial data comprehensively[17] Strategic Initiatives - The company aims to enhance service quality and expand its coverage in the residential services market, driven by unmet consumer demands[4] - The company plans to optimize its cost structure to sustain high-quality growth and improve profitability in the long term[4] - The company aims to reshape service operation models to provide more efficient real estate transaction services[19] - The company has established a strong infrastructure and standards that support its rapid and sustainable development[19] Risks and Governance - Forward-looking statements in the announcement may involve risks and uncertainties that could lead to actual results differing significantly from those projected[20] - The company relies on the integrity of its brokerage brands and agents to facilitate transactions on its platform[20] - The announcement was made on May 18, 2023, and the board of directors includes several executive and independent members[21]

Financial Performance - Total transaction value for the year ended December 31, 2022, was RMB 2,609.6 billion, a decrease of 32.3% from RMB 3,853.5 billion in 2021[7] - Net revenue for the year ended December 31, 2022, was RMB 60.7 billion, down 24.9% from RMB 80.8 billion in 2021[7] - Net loss for the year ended December 31, 2022, was RMB 1,397 million, compared to a net loss of RMB 525 million in 2021[7] - The total transaction value for existing homes was RMB 1,576.5 billion, a decrease of 23.4% from RMB 2,058.2 billion in 2021[7] - The total transaction value for new homes was RMB 940.5 billion, down 41.5% from RMB 1,608.6 billion in 2021[7] - The total transaction value for emerging businesses and others was RMB 87.3 billion, a decrease of 53.2% from RMB 186.4 billion in 2021[7] - In 2022, the company's net revenue 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 to RMB 260.96 billion[58] - The net revenue from existing home business fell by 24.5% to RMB 24.1 billion, with total transaction volume declining by 23.4% to RMB 157.65 billion[58] - The new home business saw a significant decline, with net revenue dropping 38.3% to RMB 28.7 billion, as total transaction volume decreased by 41.5% to RMB 94.05 billion[58] - The home decoration and furnishing business generated net revenue of RMB 5 billion in 2022, down from RMB 19.7 billion in 2021, mainly due to the acquisition of Shengdu Home Decoration[59] Operational Metrics - The number of stores as of December 31, 2022, was 40,516, a decrease of 20.6% from 51,038 stores as of December 31, 2021[7] - The number of active agents as of December 31, 2022, was 394,020, down 13.3% from 454,504 agents as of December 31, 2021[7] - The average monthly active users for mobile in Q4 2022 was 36.6 million, compared to 37.4 million in the same period of 2021[7] - The platform completed approximately 3.8 million property transactions in 2022, with a total transaction value of RMB 2.6096 trillion[9] - As of December 31, 2022, the platform had over 394,000 active agents and approximately 40,500 active brokerage stores, representing 268 real estate brokerage brands[30] Service Offerings and Infrastructure - The company operates the leading real estate brokerage brand, Lianjia, which has over 21 years of operational experience, contributing to industry infrastructure and standards[9] - The company has established a comprehensive service offering for consumers, including brokerage services for second-hand and new property transactions, signing and transaction services, and home decoration services[12] - The ACN network serves as the foundation of the platform, facilitating collaboration among brokerage brands, stores, and agents, and streamlining the property transaction process[12] - The company aims to enhance its platform infrastructure by digitizing and standardizing key components such as technology, transaction processes, and service quality[10] - The platform provides comprehensive sales and marketing solutions to real estate developers, enhancing their ability to discover and interact with home buyers[13] - The platform's infrastructure supports various vertical services related to property ownership, aiming for a one-stop solution for customer needs[14] Revenue Sources and Business Segments - The company has four main revenue sources: existing home business, new home business, home decoration services, and emerging businesses[13] - Emerging businesses and others reported a 33.4% increase in net revenue to RMB 2.8 billion, driven by growth in rental housing management services[59] Cost Management and Financial Health - Operating costs decreased by 27.8% to RMB 46.9 billion in 2022, attributed to reduced commissions and salaries for agents and sales channels[60] - External commissions for agents and sales channels dropped by 35.2% to RMB 20.5 billion, reflecting a decline in new home transaction volumes[60] - Internal commissions and salaries decreased by 32.1% to RMB 17.9 billion, due to a reduction in the number of frontline operational staff[60] - Store costs fell by 12.2% to RMB 3.3 billion, as the number of chain stores decreased amid market downturns[60] Technology and Innovation - The company continuously innovates and builds various modules to support its platform participants, including SaaS systems for brokers and store managers, AI technology, and virtual reality applications[20] - The company has developed an AI-powered system called "Future Home" that can automatically generate home decoration plans and create interactive floor plans and 3D models within minutes[46] - The company has deployed the "Beike Good House" system, which uses a rating system based on property features and browsing history to recommend high-quality listings to consumers, resulting in higher exposure and faster transaction decisions[45] - The company utilizes advanced machine learning algorithms for intelligent search and prediction, improving the quality of search results and transaction probability forecasts[45] Management and Governance - The board of directors consists of eight members, including four executive directors and three independent non-executive directors[96] - The company has appointed experienced individuals in key management positions, including a CFO and COO, to enhance operational effectiveness[106] - The company has implemented a governance mechanism to encourage compliance with the ACN network and maintain high professional standards among agents[18] Risks and Challenges - The company has faced significant risks related to the macroeconomic environment in China and regulatory constraints affecting the real estate market, particularly in second-hand and new housing transactions[115] - The company is subject to evolving cybersecurity and data privacy laws in China, which could have significant reputational and financial consequences if not managed properly[115] - The company faces significant risks related to contractual arrangements, particularly if the Chinese government deems these agreements non-compliant with regulations, potentially affecting 22.2% of cash and cash equivalents and 9.9% of total assets as of December 31, 2022[153] Shareholder Information - As of December 31, 2022, the company had a total of 3,594,532,591 Class A ordinary shares and 156,122,226 Class B ordinary shares outstanding[122] - Founders Peng Yongdong and Shan Yigang hold 32.75% of the voting power through their Class B shares, despite owning only 7.56% of the total issued share capital[123] - The company’s dual-class share structure allows certain shareholders to exert greater control over corporate decisions, which may not align with the interests of other shareholders[121] Employee and Talent Management - The company employed a total of 98,540 employees as of December 31, 2022, with the majority located in mainland China[94] - The company has invested significantly in employee recruitment to support rapid business growth[95] - The company’s success relies on attracting, motivating, training, and retaining talent[95]

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, 2022 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 ...

Exhibit 99.2 Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. KE Holdings Inc. 貝殼控股有限公司 (A company controlled through weighted voting rights and incorporated in the Cayman Islands with limited ...

KE Holdings Inc. (NYSE:BEKE) Q4 2022 Results Conference Call March 16, 2023 8:00 AM ET Company Participants Siting Li - Investor Relations Stanley Peng - Co-Founder, Chairman and Chief Executive Officer Tao Xu - Executive Director and Chief Financial Officer Conference Call Participants Timothy Zhao - Goldman Sachs Jiong Shao - Barclays John Lam - UBS Operator Hello ladies and gentlemen. Thank you for standing by for KE Holdings Inc’s Fourth Quarter and Fiscal Year 2022 Earnings Conference Call. At this tim ...

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].