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].
贝壳(02423) - 2022 - 中期财报