Financial Performance - Total transaction value for Q1 2022 was RMB 586 billion (USD 92.4 billion), a year-on-year decrease of 45.2%[1] - Net revenue for Q1 2022 was RMB 12.5 billion (USD 2 billion), down 39.4% year-on-year[1] - Net loss for Q1 2022 was RMB 620 million (USD 98 million), with adjusted net profit of RMB 28 million (USD 4 million)[1] - In Q1 2022, net revenue decreased by 39.4% to RMB 12.5 billion (USD 2 billion) from RMB 20.7 billion in Q1 2021, primarily due to a decline in total transaction volume[4] - Total transaction volume in Q1 2022 was RMB 586 billion (USD 92.4 billion), down 45.2% from RMB 1,069.6 billion in Q1 2021, attributed to a continuous decline in both existing and new housing markets and COVID-19 restrictions[4] - Revenue from existing housing business fell 39.2% to RMB 6.2 billion (USD 1 billion) in Q1 2022, with total transaction volume dropping 44.5% to RMB 374.1 billion (USD 59 billion)[4] - New housing business revenue decreased by 40.5% to RMB 5.9 billion (USD 0.9 billion), with total transaction volume down 43.9% to RMB 192.7 billion (USD 30.4 billion)[5] - Gross profit for Q1 2022 was RMB 2.2 billion (USD 0.4 billion), with a gross margin of 17.7%, down from 23.3% in Q1 2021, mainly due to higher fixed salary costs and lower net revenue[7] - Operating loss for Q1 2022 was RMB 918 million (USD 145 million), compared to an operating profit of RMB 1,013 million in Q1 2021, resulting in an operating margin of -7.3%[8] - Adjusted operating loss for Q1 2022 was RMB 450 million (USD 71 million), with an adjusted operating margin of -3.6%, down from 7.6% in Q1 2021[8] - The company reported a decrease in other costs to RMB 500 million (USD 0.1 billion), down 35.9% from RMB 800 million in Q1 2021, primarily due to reduced tax and financial service costs[6] - In Q1 2022, the company reported a net loss of RMB 620 million (USD 98 million), compared to a net profit of RMB 1,059 million in Q1 2021, representing a significant decline[9] - Adjusted net profit for Q1 2022 was RMB 28 million (USD 4 million), down from RMB 1,502 million in the same period of 2021[9] - The diluted net loss per American Depositary Share (ADS) for Q1 2022 was RMB 0.52 (USD 0.08), compared to a diluted net profit of RMB 0.88 in Q1 2021[9] Operational Metrics - Number of stores as of March 31, 2022, was 45,777, a decrease of 6.0% year-on-year[2] - Active agents as of March 31, 2022, totaled 427,379, down 19.1% year-on-year[2] - Monthly active users averaged 39.7 million in Q1 2022, compared to 48.5 million in the same period of 2021[2] Strategic Developments - The company completed the acquisition of Saint Decor, which is expected to accelerate growth in the home decoration business[3] - The company successfully dual-listed on the Hong Kong Stock Exchange on May 11, 2022, to protect stakeholder interests[3] - The company remains optimistic about its "one body, two wings" strategy and aims to explore opportunities in the thriving housing market[3] - The company is focusing on enhancing collaboration with quality real estate developers to improve efficiency through data products[2] Future Outlook - For Q2 2022, the company expects total net revenue to be between RMB 10 billion (USD 1.6 billion) and RMB 10.5 billion (USD 1.7 billion), reflecting a decline of approximately 56.6% to 58.6% year-over-year[10] - The company announced a proposed share repurchase plan to buy back up to USD 1 billion of American Depositary Shares within 12 months, subject to shareholder approval[11] Non-GAAP Financial Metrics - The company utilizes non-GAAP financial metrics, including adjusted net profit, to assess operational performance and provide insights into business trends[14] - The company emphasizes that non-GAAP financial metrics should not be considered in isolation and encourages investors to review financial data comprehensively[15] - Adjusted operating profit is defined as operating profit excluding stock-based compensation and intangible asset amortization from acquisitions and business cooperation agreements[15] - Adjusted net profit is calculated by excluding stock-based compensation, intangible asset amortization, fair value changes of long-term investments, and other specified adjustments[15] Company Structure and Governance - The board of directors includes both executive and independent non-executive members, ensuring diverse governance[19] - The company has over 20 years of operational experience since the establishment of its leading real estate brokerage brand, Lianjia[17] Asset and Liability Overview - As of March 31, 2022, the company's cash and cash equivalents, restricted cash, and short-term investments totaled RMB 50.2 billion (USD 7.9 billion)[9] - As of March 31, 2022, the total assets of the company amounted to RMB 99,303,396, a decrease from RMB 100,318,865 as of December 31, 2021, representing a decline of approximately 1%[21] - The company's total liabilities decreased to RMB 32,773,436 as of March 31, 2022, down from RMB 33,263,372 as of December 31, 2021, reflecting a reduction of about 1.5%[22] - The total current assets as of March 31, 2022, were RMB 61,475,635, down from RMB 69,926,354 as of December 31, 2021, indicating a decrease of about 12%[21] - The company's cash and cash equivalents decreased to RMB 16,579,055 as of March 31, 2022, from RMB 20,446,104 as of December 31, 2021, a reduction of approximately 19%[21] - The company's long-term investments increased to RMB 24,467,116 as of March 31, 2022, from RMB 17,038,171 as of December 31, 2021, representing a growth of about 44%[21] - The total equity attributable to shareholders as of March 31, 2022, was RMB 66,529,960, a slight decrease from RMB 67,055,493 as of December 31, 2021, indicating a decline of approximately 0.8%[25] Cash Flow Analysis - For the three months ended March 31, 2022, the net cash generated from operating activities was RMB 834,751 thousand, a significant decrease from RMB 2,473,055 thousand in the same period of 2021[31] - The net cash used in investing activities for the same period was RMB (4,257,292) thousand, compared to RMB (11,514,061) thousand in Q1 2021, indicating a reduction in investment outflows[31] - The net cash generated from financing activities was RMB 128,971 thousand, a turnaround from a net cash used of RMB (930,975) thousand in Q1 2021[31] - The total cash and cash equivalents decreased by RMB 3,321,933 thousand, down from a decrease of RMB 9,773,380 thousand in the same quarter of the previous year[31] Contribution Profit Analysis - The contribution profit from the existing home business for Q1 2022 was RMB 2,323,669 thousand, down from RMB 4,079,850 thousand in Q1 2021, reflecting a decline of approximately 43%[32] - The new home business generated a contribution profit of RMB 1,080,379 thousand in Q1 2022, a decrease of about 44% from RMB 1,922,318 thousand in the same quarter of 2021[32] - The emerging business and others reported a contribution profit of RMB 216,192 thousand, down from RMB 465,790 thousand in Q1 2021, representing a decline of approximately 54%[32] - The net income from the existing home business for Q1 2022 was RMB 6,151,456 thousand, a decrease of about 40% compared to RMB 10,196,295 thousand in Q1 2021[32] - The net income from the new home business for Q1 2022 was RMB 5,910,044 thousand, down from RMB 9,928,347 thousand in the same period of 2021, indicating a decline of approximately 40%[32]
贝壳-W(02423) - 2022 Q1 - 季度财报