BEKE-KE Holdings Inc. Announces Fourth Quarter and Fiscal Year 2024 Unaudited Financial Results and a Final Cash Dividend

Core Viewpoint - KE Holdings Inc. ("Beike") reported its financial results for the fourth quarter and fiscal year 2024, highlighting a significant increase in net revenues and gross transaction value (GTV), despite a decrease in net income and adjusted net income year-over-year. The company emphasizes its commitment to technology-driven and human-centric services in the evolving real estate market in China [1][4][23]. Financial Highlights for Q4 and FY 2024 - In Q4 2024, net income was RMB577 million (US $79 million), a decrease of 13.9% year-over-year, while adjusted net income was RMB1,344 million (US$ 184 million), down 21.6% year-over-year [3][17]. - The total GTV for 2024 was RMB3,349.4 billion (US $458.9 billion), an increase of 6.6% year-over-year, with net revenues reaching RMB93.5 billion (US$ 12.8 billion), a 20.2% increase year-over-year [5][23]. - The number of active stores on the platform grew to nearly 49,700, an 18.3% increase year-over-year, and the number of active agents surpassed 445,000, a 12.1% increase year-over-year [4][5]. Revenue Breakdown - GTV of existing home transactions in 2024 was RMB2,246.5 billion (US $307.8 billion), up 10.8% year-over-year, while GTV of new home transactions decreased by 3.3% to RMB970.0 billion (US$ 132.9 billion) [5][25]. - Net revenues from home renovation and furnishing services increased by 36.1% to RMB14.8 billion (US $2.0 billion) in 2024, and net revenues from home rental services surged by 135.0% to RMB14.3 billion (US$ 2.0 billion) [23][25]. Cost and Profitability - Total cost of revenues increased by 25.8% to RMB70.5 billion (US $9.7 billion) in 2024, with gross profit rising by 5.6% to RMB22.9 billion (US$ 3.1 billion) [24][26]. - The gross margin for 2024 was 24.6%, down from 27.9% in 2023, primarily due to increased fixed compensation costs [26]. Shareholder Returns - The company repurchased shares totaling approximately US $716 million in 2024, representing about 3.9% of total issued shares at the end of 2023 [8]. - A final cash dividend of US$ 0.12 per ordinary share, or US $0.36 per ADS, was declared, amounting to approximately US$ 0.4 billion [37][38]. Strategic Outlook - The company aims to enhance its technology-driven and human-centric approach, leveraging AI to better understand customer needs and improve service efficiency [4][6].