KE Holdings Inc. Announces Second Quarter 2024 Unaudited Financial Results and Upsizing and Extension of Share Repurchase Program

Core Viewpoint - KE Holdings Inc. reported strong financial results for the second quarter of 2024, with significant growth in net revenues and net income, driven by operational enhancements and market recovery in existing home transactions [1][3][4]. Financial Performance - Gross transaction value (GTV) reached RMB839.0 billion (US$115.5 billion), a 7.5% increase year-over-year, with existing home transactions growing by 25.0% to RMB570.7 billion (US$78.5 billion) [2][8]. - Net revenues increased by 19.9% to RMB23.4 billion (US$3.2 billion) compared to RMB19.5 billion in the same period of 2023 [8][21]. - Net income rose by 46.2% year-over-year to RMB1,900 million (US$262 million), while adjusted net income grew by 13.9% to RMB2,693 million (US$371 million) [5][21]. Business Segments - Revenues from existing home transaction services increased by 14.3% to RMB7.3 billion (US$1.0 billion), supported by a 25.0% rise in GTV [9][11]. - New home transaction services saw a decline of 8.8% in revenues to RMB7.9 billion (US$1.1 billion), with GTV decreasing by 20.2% [11][12]. - Home renovation and furnishing revenues surged by 53.9% to RMB4.0 billion (US$0.6 billion), driven by increased orders and enhanced delivery capabilities [12][13]. - Home rental services revenues increased significantly by 167.1% to RMB3.2 billion (US$0.4 billion) due to a rise in rental units under the Carefree Rent model [12][13]. Operational Metrics - The number of stores increased by 6.9% year-over-year to 45,948, while active stores rose by 8.1% to 44,423 [2][5]. - The number of agents reached 458,690, marking a 5.2% increase, although the number of active agents remained relatively flat [2][5]. - Mobile monthly active users averaged 49.7 million, up from 48.0 million in the same period of 2023 [2][5]. Shareholder Returns - The company has repurchased shares totaling approximately US$480 million in 2024, representing about 2.75% of total issued shares at the end of 2023 [6][27]. - The share repurchase program has been upsized from US$2 billion to US$3 billion and extended until August 31, 2025 [6][27]. Cash Position - As of June 30, 2024, the company reported a combined balance of cash, cash equivalents, restricted cash, and short-term investments amounting to RMB59.7 billion (US$8.2 billion) [25].