贝壳(02423) - 2024 Q2 - 季度业绩

Performance Summary and Management Commentary KE Holdings reported strong Q2 2024 performance, with GTV up 7.5% and net revenue up 19.9%, driven by existing home transactions and emerging businesses, alongside an expanded share repurchase program Key Business and Financial Highlights In Q2 2024, KE Holdings' total GTV reached RMB 839 billion, up 7.5%, primarily driven by a 25.0% increase in existing home transactions, partially offsetting a 20.2% decline in new home transactions, with net revenue growing 19.9% to RMB 23.4 billion and adjusted net profit at RMB 2.693 billion Q2 2024 Gross Transaction Value (GTV) Overview | Business Segment | GTV (RMB Billion) | YoY Change | | :--- | :--- | :--- | | Total GTV | 839.0 | +7.5% | | Existing Home Transactions | 570.7 | +25.0% | | New Home Transactions | 235.3 | -20.2% | | Home Renovation and Furnishing | 4.2 | +22.3% | | Emerging and Other Businesses | 28.8 | +12.2% | Q2 2024 Core Financial Metrics | Metric | Amount (RMB Million) | YoY Change | | :--- | :--- | :--- | | Net Revenue | 23,400 | +19.9% | | Net Profit | 1,900 | +46.2% | | Adjusted Net Profit | 2,693 | +13.9% | Q2 2024 End Operating Metrics | Metric | Quantity | YoY Change | | :--- | :--- | :--- | | Number of Stores | 45,948 | +6.9% | | Number of Active Stores | 44,423 | +8.1% | | Number of Agents | 458,690 | +5.2% | | Number of Active Agents | 411,478 | Relatively Stable | | Average Mobile Monthly Active Users | 49.7 Million | +3.5% | Management Commentary Management attributed the strong Q2 performance to deepened operations and scientific management, with the CEO emphasizing building a sustainable growth organization and the CFO highlighting improved profitability and an expanded share repurchase program - CEO Peng Yongdong stated that the company achieved market-outperforming results through deepened operations and scientific management, with the core goal for the future being to build an organization capable of sustained growth[2][4] - CFO Xu Tao emphasized excellent Q2 performance, significant improvement in existing home transaction contribution margin, rapid growth in non-real estate transaction services, and enhanced profitability[4] - The company announced an expanded and extended share repurchase program, increasing authorization from $2 billion to $3 billion and extending the term to August 31, 2025, to continuously return value to shareholders[4] Financial Results Analysis KE Holdings demonstrated robust financial performance in Q2 2024, with net revenue increasing 19.9% to RMB 23.4 billion, gross margin improving to 27.9%, and operating profit significantly growing to RMB 2.0 billion, reflecting strong profitability and cost control Net Revenue Q2 2024 net revenue increased 19.9% to RMB 23.4 billion, driven by growth in existing home, home renovation and furnishing, and home rental services, which offset a decline in new home business revenue Q2 2024 Net Revenue Composition (by Business Segment) | Business Segment | Net Revenue (RMB Billion) | YoY Change | | :--- | :--- | :--- | | Total Net Revenue | 23.4 | +19.9% | | Existing Home Business | 7.3 | +14.3% | | New Home Business | 7.9 | -8.8% | | Home Renovation and Furnishing | 4.0 | +53.9% | | Home Rental Services | 3.2 | +167.1% | | Emerging and Other Businesses | 0.9 | +57.8% | - Existing home business revenue growth was primarily due to a 25.0% YoY increase in GTV, partially offset by a lower commission rate for Beijing Lianjia[6] - New home business revenue decline was due to a 20.2% YoY decrease in GTV, partially offset by improved monetization capabilities[7] - Home renovation and furnishing revenue growth benefited from increased orders, greater new retail contributions, and improved delivery capabilities[7] - The surge in home rental services revenue was mainly due to an increase in the number of rental properties under the 'Carefree Rental' model[8] Cost of Revenue and Gross Profit Q2 2024 total cost of revenue increased 19.2% to RMB 16.9 billion, with gross profit growing 22.0% to RMB 6.5 billion and gross margin improving from 27.4% to 27.9%, driven by higher contribution margins from home renovation and home rental services Q2 2024 Cost of Revenue Composition | Cost Item | Amount (RMB Billion) | YoY Change | | :--- | :--- | :--- | | Total Cost of Revenue | 16.9 | +19.2% | | External Commissions | 5.4 | -6.9% | | Internal Commissions and Compensation | 4.4 | +7.9% | | Home Renovation and Furnishing Costs | 2.8 | +50.2% | | Home Rental Services Costs | 3.0 | +138.2% | | Store Costs | 0.681 | -6.7% | | Other Costs | 0.511 | +18.6% | - Gross margin improved from 27.4% in Q2 2023 to 27.9%, primarily driven by higher contribution margins from home renovation and furnishing and home rental services, and a decrease in store costs as a percentage of revenue[10] Operating Expenses and Profit Q2 2024 total operating expenses grew moderately by 5.6% to RMB 4.5 billion, while operating profit significantly increased to RMB 2.015 billion, with operating margin improving from 5.5% to 8.6%, reflecting effective cost control Q2 2024 Operating Expenses | Expense Item | Amount (RMB Million) | YoY Change | | :--- | :--- | :--- | | Total Operating Expenses | 4,500 | +5.6% | | Sales and Marketing Expenses | 1,882 | +14.1% | | General and Administrative Expenses | 2,079 | -1.2% | | Research and Development Expenses | 505 | +6.3% | Q2 2024 Operating Profit Performance | Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Operating Profit (RMB Million) | 2,015 | 1,081 | | Operating Margin | 8.6% | 5.5% | | Adjusted Operating Profit (RMB Million) | 2,813 | 2,148 | | Adjusted Operating Margin | 12.0% | 11.0% | Net Income and EPS In Q2 2024, net profit reached RMB 1.9 billion, a 46.2% increase YoY, with adjusted net profit at RMB 2.693 billion, and basic and diluted EPS for ADS both showing improvement over the prior year Q2 2024 Net Profit Performance | Metric | Q2 2024 (RMB Million) | Q2 2023 (RMB Million) | | :--- | :--- | :--- | | Net Profit | 1,900 | 1,300 | | Adjusted Net Profit | 2,693 | 2,364 | | Net Profit Attributable to Ordinary Shareholders | 1,892 | 1,309 | | Adjusted Net Profit Attributable to Ordinary Shareholders | 2,685 | 2,373 | Q2 2024 Net Earnings Per American Depositary Share (ADS) | Metric | Q2 2024 (RMB) | Q2 2023 (RMB) | | :--- | :--- | :--- | | Basic Net Earnings Per ADS | 1.67 | 1.10 | | Diluted Net Earnings Per ADS | 1.61 | 1.08 | | Adjusted Basic Net Earnings Per ADS | 2.36 | 2.00 | | Adjusted Diluted Net Earnings Per ADS | 2.28 | 1.96 | Capital Management and Shareholder Returns As of June 30, 2024, KE Holdings maintained a strong financial position with RMB 59.7 billion in cash and equivalents, and enhanced shareholder returns by expanding its share repurchase program to $3 billion Cash Position As of June 30, 2024, the company held substantial cash reserves totaling RMB 59.7 billion (approximately $8.2 billion) in cash, cash equivalents, restricted cash, and short-term investments - As of June 30, 2024, the company's total cash, cash equivalents, restricted cash, and short-term investments amounted to RMB 59.7 billion ($8.2 billion)[15] Share Repurchase Program The company announced an expansion and extension of its share repurchase program, increasing the authorization from $2 billion to $3 billion and extending its validity to August 31, 2025, having already repurchased approximately $1.39 billion in shares - Since the inception of the existing share repurchase program, the company has cumulatively repurchased approximately 95 million ADSs for a total consideration of approximately $1.39 billion as of the announcement date[15] - The board approved increasing the share repurchase authorization from $2 billion to $3 billion and extending the program's term to August 31, 2025[16] Appendix: Unaudited Financial Statements This section provides detailed unaudited financial statements for KE Holdings Inc., including consolidated balance sheets, statements of operations, cash flows, GAAP to non-GAAP reconciliations, and segment contribution profit metrics as of and for the three and six months ended June 30, 2024 Consolidated Balance Sheets The statement presents the company's assets, liabilities, and shareholders' equity as of June 30, 2024, and December 31, 2023, showing total assets of RMB 122.5 billion, total liabilities of RMB 51.8 billion, and total shareholders' equity of RMB 70.7 billion as of June 30, 2024 Balance Sheet Key Items (As of June 30, 2024) | Item | Amount (RMB Billion) | | :--- | :--- | | Total Assets | 122.5 | | Total Liabilities | 51.8 | | Total Shareholders' Equity | 70.7 | Consolidated Statements of Operations This statement details the company's revenue, costs, expenses, and profit for the three and six months ended June 30, 2024, providing the foundational data for the preceding financial analysis - This section provides detailed income statement data, including net revenue for each business line, detailed costs and expenses, ultimately leading to net profit and comprehensive income[28][29][30] Reconciliation of GAAP and Non-GAAP Results This section provides a detailed reconciliation process for adjusting GAAP operating profit and net profit to non-GAAP metrics, with key adjustments including share-based compensation expenses, intangible asset amortization, and fair value changes in investments - This section details the calculation process from GAAP net profit to Adjusted Net Profit and Adjusted EBITDA, excluding non-cash or non-operating items such as share-based compensation expenses[31][32] Consolidated Statements of Cash Flows The statement illustrates the company's cash inflows and outflows from operating, investing, and financing activities for the three and six months ended June 30, 2024, with Q2 2024 showing net cash inflow from operating activities of RMB 4.77 billion, net cash outflow from investing activities of RMB 8.13 billion, and net cash outflow from financing activities of RMB 3.93 billion Q2 2024 Cash Flow Overview | Activity Category | Net Cash (RMB Billion) | | :--- | :--- | | Net Cash Provided by Operating Activities | 4.773 | | Net Cash Used in Investing Activities | (8.134) | | Net Cash Used in Financing Activities | (3.931) | Segment Contribution Profit This section provides contribution profit metrics segmented by business (existing home, new home, home renovation and furnishing, home rental), showing Q2 2024 contribution profits of RMB 3.48 billion for existing home, RMB 1.99 billion for new home, RMB 1.26 billion for home renovation and furnishing, and RMB 0.186 billion for home rental services, which achieved positive contribution profit for the first time Q2 2024 Contribution Profit by Business Segment | Business Segment | Contribution Profit (RMB Billion) | | :--- | :--- | | Existing Home Business | 3.483 | | New Home Business | 1.986 | | Home Renovation and Furnishing Business | 1.264 | | Home Rental Services | 0.186 | Other Information This section provides details on the earnings conference call, company profile, a safe harbor statement regarding forward-looking statements, and investor relations contact information, offering avenues for further information and understanding potential risks Conference Call Information The company held its earnings conference call on August 12, 2024, Beijing time, with the announcement providing registration links for participation and details for accessing the replay - The announcement provided details for participating in the earnings conference call, including online registration links for English and Chinese simultaneous interpretation lines, and information for accessing the conference replay[17][18] About the Company & Safe Harbor Statement This section introduces KE Holdings as a leading online and offline integrated real estate transaction and service platform and includes a US-compliant 'Safe Harbor Statement' cautioning investors that forward-looking statements involve inherent risks and uncertainties - Company Profile: KE Holdings is a leading online and offline integrated real estate transaction and living services platform, owning and operating Lianjia, a leading real estate brokerage brand in China[22] - Safe Harbor Statement: The announcement contains forward-looking statements, and actual results may differ materially from expectations due to various risks and uncertainties[23]