BEKE(BEKE) - 2024 Q3 - Quarterly Report

Financial Performance - Gross transaction value (GTV) reached RMB736.8 billion (US$105.0 billion), a 12.5$3.2 billion) compared to RMB17.8 billion in the same period of 2023[5][15] - Net income was RMB1,168 million (US$167 million), with adjusted net income at RMB1,782 million (US$254 million)[6] - Total net revenues for the three months ended September 30, 2024, increased to RMB 22,584,647, representing a 27.5% growth compared to RMB 17,810,705 for the same period in 2023[68] - Net income attributable to KE Holdings Inc. for the three months ended September 30, 2024, was RMB 1,171,073, compared to RMB 1,158,042 for the same period in 2023, reflecting a 1.1% increase[70] - The company reported a total comprehensive income of RMB 1,049,224 for the three months ended September 30, 2024, up from RMB 927,825 in the same quarter of 2023[70] - The net income for the nine months ended September 30, 2024, was RMB 3,500,932, representing a decrease of 32.9% from RMB 5,219,541 in the same period of 2023[75] Revenue Breakdown - Net revenues from home renovation and furnishing grew by 32.6% to RMB4.2 billion (US$0.6 billion) year-over-year[21] - Net revenues from home rental services surged by 118.4$0.6 billion) compared to RMB1.8 billion in the same period of 2023[22] - Contribution from new home transaction services net revenues increased to RMB 7,726,316 for the three months ended September 30, 2024, compared to RMB 5,901,966 in the same period of 2023, representing a growth of approximately 30.9%[84] - Home renovation and furnishing net revenues for the nine months ended September 30, 2024, reached RMB 10,662,113, up from RMB 7,209,569 in the same period of 2023, indicating a growth of about 48.5%[84] - Home rental services net revenues for the three months ended September 30, 2024, were RMB 3,941,234, significantly higher than RMB 1,804,374 for the same period in 2023, reflecting an increase of approximately 118.5%[84] - Total contribution from existing home transaction services for the three months ended September 30, 2024, was RMB 2,549,227, down from RMB 3,069,848 in the same period of 2023, indicating a decline of approximately 17%[84] Expenses and Costs - Total cost of revenues increased by 35.0% to RMB17.4 billion (US$2.5 billion) in Q3 2024[23] - Gross profit increased by 5.2$0.7 billion) in Q3 2024, with a gross margin of 22.7%, down from 27.4% in Q3 2023[30] - Total operating expenses rose by 11.0% to RMB4.4 billion (US$0.6 billion) in Q3 2024, with sales and marketing expenses increasing by 18.6$0.3 billion)[32][33] - Research and development expenses increased by 21.5% to RMB573 million (US$82 million) in Q3 2024, driven by higher headcount and technical service costs[34] - Operating expenses for the three months ended September 30, 2024, totaled RMB 4,407,769, an increase from RMB 3,969,722 in the same period last year[68] Cash and Assets - As of September 30, 2024, the combined balance of cash, cash equivalents, restricted cash, and short-term investments was RMB59.5 billion (US$8.5 billion)[45] - Cash and cash equivalents were reported at RMB 9,576,948 as of September 30, 2024, a decrease from RMB 19,634,716 as of December 31, 2023[64] - Short-term investments increased significantly to RMB 43,654,035 as of September 30, 2024, up from RMB 34,257,958 as of December 31, 2023, representing a growth of approximately 27%[64] - The company reported a net decrease in cash and cash equivalents of RMB 1,706,229 for the three months ended September 30, 2024[82] Shareholder Information - The company allocated approximately US$200 million to share repurchases in Q3 2024[14] - The company has repurchased approximately 102.2 million ADSs (representing approximately 306.5 million Class A ordinary shares) for a total consideration of approximately US$1,493.4 million under its share repurchase program[46] - Basic and diluted net income per ADS attributable to KE Holdings Inc.'s ordinary shareholders were RMB1.04 (US$0.15) and RMB1.00 (US$0.14) in Q3 2024, compared to RMB0.99 and RMB0.97 in Q3 2023[41] - The weighted average number of ADS used in computing net income per ADS, diluted, for the three months ended September 30, 2024, was 1,167,050,588[72] Liabilities and Equity - Current liabilities increased to RMB 43,147,206 as of September 30, 2024, compared to RMB 39,523,983 as of December 31, 2023, reflecting a growth of approximately 6.5%[65] - Total shareholders' equity decreased to RMB 70,893,663 as of September 30, 2024, down from RMB 72,201,105 as of December 31, 2023, indicating a decline of about 1.8%[66] - Total non-current liabilities increased to RMB 8,754,843 as of September 30, 2024, from RMB 8,606,843 as of December 31, 2023, marking an increase of approximately 1.7%[65] - The company’s accumulated deficit improved to RMB (2,178,008) as of September 30, 2024, from RMB (5,672,916) as of December 31, 2023, showing a significant reduction in losses[66]