BEKE(US:BEKE)2021-11-09 11:30Financial Performance - Gross transaction value (GTV) for Q3 2021 was RMB830.7 billion (US$128.9 billion), a decrease of 20.9% year-over-year[2] - Net revenues decreased by 11.9% to RMB18.1 billion (US$2.8 billion) in Q3 2021 from RMB20.5 billion in Q3 2020[12] - Net loss was RMB1,766 million (US$274 million), with an adjusted net loss of RMB888 million (US$138 million)[2] - Net revenues from existing home transaction services were RMB6.1 billion (US$0.9 billion), a decrease from RMB8.8 billion in Q3 2020[12] - Net revenues from new home transaction services increased by 2.5% to RMB11.3 billion (US$1.8 billion) in Q3 2021[15] - Total net revenues for the three months ended September 30, 2021, were RMB 18,096,140, a decrease of 12% compared to RMB 20,548,915 for the same period in 2020[58] - Existing home transaction services generated RMB 6,138,020 in revenue for the three months ended September 30, 2021, down 30% from RMB 8,849,706 in the same period of 2020[58] - New home transaction services revenue increased to RMB 11,348,472 for the three months ended September 30, 2021, up 2.5% from RMB 11,074,424 in the same period of 2020[58] - The overall net revenues for the nine months ended September 30, 2021, reached RMB 25,962,650, compared to RMB 21,404,907 for the same period in 2020, reflecting a growth of about 21.3%[75] Loss and Adjusted Metrics - Loss from operations was RMB2,300 million (US$357 million) in Q3 2021, compared to RMB81 million in Q3 2020[24] - Adjusted loss from operations was RMB1,435 million (US$223 million) in Q3 2021, compared to adjusted income from operations of RMB1,740 million in Q3 2020, resulting in an adjusted operating margin of negative 7.9%[26] - Net loss was RMB1,766 million (US$274 million) in Q3 2021, compared to net income of RMB75 million in Q3 2020[27] - Adjusted net loss attributable to KE Holdings Inc. was RMB887 million (US$138 million) in Q3 2021, compared to adjusted net income of RMB1,857 million in Q3 2020[28] - Diluted net loss per ADS attributable to KE Holdings Inc. was RMB1.50 (US$0.23) in Q3 2021, compared to RMB0.33 in Q3 2020[31] - Adjusted EBITDA was negative RMB550 million (US$85 million) in Q3 2021, compared to RMB2,248 million in Q3 2020[26] - The company reported a total comprehensive loss of RMB 1,652,458 for the three months ended September 30, 2021, compared to a comprehensive income of RMB 669,704 in the same period of 2020[58] - Net income for the three months ended September 30, 2021, was a loss of RMB 1,765,875, compared to a profit of RMB 75,341 for the same period in 2020[65] User and Agent Metrics - Number of active agents increased by 13.1% year-over-year to 468,014 as of September 30, 2021[6] - Mobile monthly active users (MAU) averaged 46.1 million, down from 47.9 million in the same period of 2020[6] Cash and Assets - As of September 30, 2021, the combined balance of cash, cash equivalents, restricted cash, and short-term investments amounted to RMB52.7 billion (US$8.2 billion)[32] - Total current assets decreased from RMB 87,539,101 as of December 31, 2020 to RMB 70,311,349 as of September 30, 2021, a decline of approximately 19.7%[51] - Total non-current assets increased significantly from RMB 16,756,435 as of December 31, 2020 to RMB 31,829,725 as of September 30, 2021, an increase of approximately 89.9%[51] - Total liabilities decreased from RMB 37,503,020 as of December 31, 2020 to RMB 33,985,421 as of September 30, 2021, a reduction of approximately 9.5%[53] - KE Holdings Inc. shareholders' equity increased from RMB 66,765,447 as of December 31, 2020 to RMB 68,102,505 as of September 30, 2021, an increase of approximately 2.0%[55] - Cash and cash equivalents decreased from RMB 40,969,979 as of December 31, 2020 to RMB 21,780,230 as of September 30, 2021, a decline of approximately 46.9%[51] - Accounts receivable decreased from RMB 13,183,559 as of December 31, 2020 to RMB 10,516,025 as of September 30, 2021, a decrease of approximately 20.2%[51] - Total assets decreased from RMB 104,295,536 as of December 31, 2020 to RMB 102,141,074 as of September 30, 2021, a decrease of approximately 2.1%[54] Operational Expenses - Operating expenses for the three months ended September 30, 2021, totaled RMB 5,054,455, an increase of 13% compared to RMB 4,464,246 for the same period in 2020[58] - Research and development expenses for the three months ended September 30, 2021, were RMB 1,042,906, an increase from RMB 789,089 in the same period of 2020[62] - Share-based compensation expenses for the three months ended September 30, 2021, were RMB 349,599, compared to RMB 1,668,195 in the same period of 2020[65] Future Outlook and Strategy - For Q4 2021, the company expects total net revenues to be between RMB14.5 billion (US$2.3 billion) and RMB15.5 billion (US$2.4 billion), representing a decrease of approximately 31.6% to 36.0% from the same quarter of 2020[33] - The company plans to enhance service quality and technological empowerment to adapt to new regulatory measures in the real estate market[11] - The company is focusing on expanding its market presence and enhancing its service offerings to drive future growth[75] - The financial performance indicates a need for strategic adjustments in the existing home transaction services segment to improve profitability[75]