香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 KE Holdings Inc. 貝殼控股有限公司 （於開曼群島註冊成立以不同投票權控制的有限責任公司） （股份代號：2423） 董事會會議召開日期 中文同聲傳譯專線（僅供聆聽）：https://s1.c-conf.com/diamondpass/10042787-mwq6c3.html 通過撥打以下號碼，可在2024年11月28日之前收聽電話會議的重播： | 美國： | +1-855-883-1031 | | --- | --- | | 中國大陸： | 400-1209-216 | | 中國香港： | 800-930-639 | | 國際： | +61-7-3107-6325 | | 重播個人識別碼（英文專線）： | 10042784 | | 重播個人識別碼（中文同聲傳譯專線）： | 10042787 | 1 本次電話會議的網上直播及錄音也將在本公司的投資者關係網站 ( https://investo ...

FF305 翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) 表格類別： 股票 狀態： 新提交 公司名稱： 貝殼控股有限公司 呈交日期： 2024年11月7日 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | 第一章節 | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 1. 股份分類 | | 不同投票權架構公司普通股 | 股份類別 | A | | | | 於香港聯交所上市 | 是 | | | | | 證券代號 (如上市) | 02423 | | 說明 | | | | | | | | | | | A. 已發行股份或庫存股份變動 | | | | | | | | | | | | | | ...

Financial Performance - Total transaction value for the six months ended June 30, 2024, was RMB 1,468.9 billion, a decrease of 16.2% compared to RMB 1,752.1 billion in the same period of 2023[4] - Net income for the six months ended June 30, 2024, was RMB 39.7 billion, relatively flat compared to RMB 39.8 billion in the same period of 2023[4] - Adjusted net profit for the six months ended June 30, 2024, was RMB 40.9 billion, down from RMB 59.3 billion in the same period of 2023[4] - Total net income for the six months ended June 30, 2024, was RMB 39.7 billion, remaining stable compared to RMB 39.8 billion in the same period of 2023[15] - The total transaction volume for the company's existing housing business decreased by 16.3% year-on-year to RMB 131 billion for the six months ended June 30, 2024[15] - Net income from new housing business decreased by 24.9% to RMB 12.9 billion for the six months ended June 30, 2024, compared to RMB 17.1 billion in the same period of 2023, driven by a 32.4% decline in total transaction value to RMB 387.1 billion[16] - Net profit for the six months ended June 30, 2024, was RMB 2,332,526, a decrease of 42.4% compared to RMB 4,049,251 for the same period in 2023[49] - Total comprehensive income for the period was RMB 2,485,589, down 49.8% from RMB 4,941,946 in the previous year[49] Revenue and Income Sources - Non-property transaction service revenue accounted for 34.8% of total net income, a significant increase of 17 percentage points compared to the same period last year[6] - The home decoration and furnishing business saw a total transaction volume growth of 24.0% year-on-year and revenue growth of 59.9% in the first half of 2024, with a profit margin of 31.0%[11] - Net income from home decoration and furniture increased by 59.9% to RMB 6.4 billion for the six months ended June 30, 2024, compared to RMB 4 billion in the same period of 2023, due to synergies between property transaction and home decoration businesses[17] - Net income from housing rental services surged by 176.7% to RMB 5.8 billion for the six months ended June 30, 2024, compared to RMB 2.1 billion in the same period of 2023, primarily due to an increase in managed rental properties[17] Operational Metrics - The number of active stores as of June 30, 2024, was 44,423, an increase of 8.1% from 41,076 stores as of June 30, 2023[4] - The number of active agents as of June 30, 2024, was 411,478, stable compared to 409,054 agents as of June 30, 2023[4] - The company is advancing towards a "one-stop living service platform" model, enhancing shareholder returns and optimizing capital structure[6] - The company is implementing refined operations and technology products to improve agent efficiency and operational capabilities[7] - The company is exploring different store formats to increase community coverage and enhance the one-stop living service experience[8] Cash Flow and Financial Position - The net cash generated from operating activities for the six months ended June 30, 2024, was RMB 3.86 billion, down from RMB 7.43 billion for the same period in 2023, representing a decline of approximately 48.0%[27] - The net cash used in investing activities for the six months ended June 30, 2024, was RMB 6.84 billion, compared to a net cash inflow of RMB 7.63 billion in the same period of 2023[27] - The company reported a net cash decrease of RMB 8.33 billion for the six months ended June 30, 2024, compared to an increase of RMB 12.22 billion in the same period of 2023[27] - As of June 30, 2024, the company's cash, cash equivalents, restricted cash, and short-term investments totaled RMB 59.7 billion, a slight decrease from RMB 60.1 billion as of December 31, 2023[26] - The company reported capital expenditures of RMB 462 million for the six months ended June 30, 2024, aimed at supporting anticipated business growth[33] Debt and Liabilities - The total financial debt as of June 30, 2024, was RMB 20.21 billion, an increase from RMB 17.99 billion as of December 31, 2023, reflecting a rise of approximately 12.9%[28] - The company's debt-to-asset ratio is 42.3%, an increase from 40.0% as of December 31, 2023[31] - The total liabilities increased to RMB 51,794,889 as of June 30, 2024, from RMB 48,130,826 as of December 31, 2023[45] - The total amount of accounts payable reached RMB 6,684,706 thousand, an increase of 5.6% from RMB 6,328,516 thousand as of December 31, 2023[44] Shareholder Returns and Repurchase - The company has repurchased approximately 3.15% of its total shares as of the last feasible date in 2024, with a total expenditure of about USD 5.53 billion for the share repurchase plan[14] - The company plans to expand its existing share repurchase program from USD 2 billion to USD 3 billion, extending the repurchase authorization until August 31, 2025[14] Employee and Operational Costs - The company employs a total of 122,599 employees, with the majority (96,440) in brokerage and support roles[38] - Total operating costs for the six months ended June 30, 2024, were RMB 29.1 billion, slightly up from RMB 28.1 billion in the same period of 2023[18] - The company maintained stable store costs at RMB 1.4 billion for the six months ended June 30, 2024, consistent with the same period in 2023[19] Research and Development - Research and development expenses increased slightly to RMB 92,926 from RMB 90,038, representing a growth of 3.2%[49] - The company recognizes research and development expenses as incurred, which include employee-related compensation and costs associated with R&D functions[120] Accounting and Compliance - The company has not identified any significant issues that would lead to a belief that the interim financial data is not prepared in accordance with US GAAP[42] - The company is currently evaluating the impact of new accounting standards issued in November 2023 and December 2023, but does not expect significant effects on its financial statements[63] - Significant accounting estimates impacting the financial data include revenue recognition, credit loss provisions, and impairment assessments for long-term assets[67] Investments and Subsidiaries - The company operates through various subsidiaries, including 德佑房地產經紀有限公司 and 貝殼找房科技有限公司, all of which are 100% owned and primarily engaged in real estate services in China[56] - The company has expanded its service offerings to include home decoration services through subsidiaries like 北京被窩裝飾有限公司 and 聖都家居裝飾有限公司, both fully owned[56] - The company has established a strong presence in the Chinese market with multiple subsidiaries dedicated to various aspects of real estate transactions and services[56] Market and Economic Conditions - The RMB depreciated approximately 2.4% against the USD for the six months ended June 30, 2024[131] - The company has not faced any significant foreign exchange risk, as most of its income and expenses are denominated in RMB[31]

KE Holdings Inc. Announces Second Quarter 2024 Unaudited Financial Results and Upsizing and Extension of Share Repurchase Program BEIJING, China, August 12, 2024 - KE Holdings Inc. ("Beike" or the "Company") (NYSE: BEKE and HKEX: 2423), a leading integrated online and offline platform for housing transactions and services, today announced its unaudited financial results for the second quarter ended June 30, 2024 and upsizing and extension of the share repurchase program. Business and Financial Highlights fo ...

Financial Performance - Total transaction volume for the first half of 2024 was RMB 1,468.9 billion, a decrease of 16.2% compared to RMB 1,752.1 billion in the same period of 2023[3] - Net income for the first half of 2024 was RMB 39.7 billion, remaining relatively flat compared to RMB 39.8 billion in the same period of 2023[3] - Net profit for the first half of 2024 was RMB 2,333 million, a decrease from RMB 4,049 million in the same period of 2023[4] - Adjusted net profit for the first half of 2024 was RMB 4,086 million, down from RMB 5,925 million in the same period of 2023[4] - Gross profit decreased by 9.0% to RMB 10.6 billion in the first half of 2024, with the gross margin declining to 26.8% from 29.4% in the same period of 2023[17] - Operating profit decreased to RMB 2.0 billion in the first half of 2024, with the operating profit margin dropping to 5.1% from 10.2% in the same period of 2023[19] - Adjusted operating profit declined to RMB 3.8 billion in the first half of 2024, with the adjusted operating profit margin falling to 9.5% from 15.0% in the same period of 2023[19] - Net profit decreased to RMB 2.3 billion in the first half of 2024, compared to RMB 4.0 billion in the same period of 2023[20] - Net revenue for the first half of 2024 was RMB 39.75 billion, a slight decrease of 0.04% compared to RMB 39.76 billion in the same period of 2023[45] - Gross profit for the first half of 2024 was RMB 10.64 billion, down 9.0% from RMB 11.69 billion in the first half of 2023[45] - Operating profit for the first half of 2024 was RMB 2.03 billion, a significant decrease of 50.1% compared to RMB 4.06 billion in the same period of 2023[46] - Net profit attributable to KE Holdings Inc. for the first half of 2024 was RMB 2.32 billion, down 42.7% from RMB 4.06 billion in the first half of 2023[46] - Basic earnings per share for the first half of 2024 was RMB 0.68, a decrease of 40.4% compared to RMB 1.14 in the same period of 2023[47] - Operating profit for the six months ended June 30, 2024, was RMB 2,026,973 thousand, a decrease from RMB 4,058,929 thousand in the same period in 2023[48] - Adjusted operating profit for the six months ended June 30, 2024, was RMB 3,772,085 thousand, compared to RMB 5,977,459 thousand in the same period in 2023[48] - Net profit for the six months ended June 30, 2024, was RMB 2,332,526 thousand, down from RMB 4,049,251 thousand in the same period in 2023[48] - Adjusted net profit for the six months ended June 30, 2024, was RMB 4,085,555 thousand, compared to RMB 5,925,391 thousand in the same period in 2023[48] - Adjusted EBITDA for the six months ended June 30, 2024, was RMB 5,037,594 thousand, down from RMB 7,129,765 thousand in the same period in 2023[48] - Net profit for the six months ended June 30, 2024, was RMB 2,332,526 thousand, compared to RMB 4,049,251 thousand for the same period in 2023[53] - Pre-tax profit for the six months ended June 30, 2024, was RMB 3,588,315 thousand, down from RMB 5,450,773 thousand in the same period in 2023[68] - Net profit attributable to Beike Holdings Ltd. was RMB 2,323,835 thousand for the six months ended June 30, 2024, compared to RMB 4,055,577 thousand in the same period in 2023[74] - Basic earnings per share decreased to RMB 0.68 for the six months ended June 30, 2024, from RMB 1.14 in the same period in 2023[75] - Diluted earnings per share decreased to RMB 0.66 for the six months ended June 30, 2024, from RMB 1.11 in the same period in 2023[75] - Net profit attributable to Beike Holdings Limited reached RMB 3,053,390, showing a strong financial performance[78] - Net profit before tax was RMB 4,346,929, indicating strong pre-tax profitability[78] - Net profit attributable to ordinary shareholders of Beike Holdings Limited was RMB 3,053,390, showing strong returns for shareholders[78] Business Segments Performance - The company's home renovation and furnishing business saw a total transaction volume of RMB 7.6 billion in the first half of 2024, an increase of 24.0% compared to RMB 6.1 billion in the same period of 2023[3] - The company's new business and other segments had a total transaction volume of RMB 50.3 billion in the first half of 2024, a decrease of 3.9% compared to RMB 52.3 billion in the same period of 2023[3] - New home business achieved strong performance with a 49% net income contribution from the "fast commission" projects and increased state-owned enterprise developer commission income from 47% in Q2 2023 to 55% in Q2 2024[8] - Home decoration and furnishing business saw a 24.0% YoY increase in total transaction volume and a 59.9% YoY increase in revenue, with a profit margin of 31.0% in H1 2024[9] - Rental housing service expanded rapidly with over 300,000 units under management for decentralized rental housing and over 14,000 units for centralized long-term rental apartments by Q2 2024[10] - Existing home business net revenue decreased by 16.3% YoY to RMB 13.1 billion in H1 2024, with a 8.7% decrease in total transaction volume to RMB 1,023.8 billion[13] - Commission income from existing home business decreased by 17.5% YoY to RMB 10.6 billion in H1 2024, driven by a 11.9% decrease in transaction volume through Lianjia stores[13] - Platform services, franchise services, and other value-added services revenue decreased by 10.5% to RMB 2.5 billion in the first half of 2024, compared to RMB 2.7 billion in the same period of 2023, primarily due to a 6.3% decline in the total transaction value of existing home transactions facilitated by Beike-linked agents to RMB 611.5 billion[14] - New home business net revenue decreased by 24.9% to RMB 12.9 billion in the first half of 2024, driven by a 32.4% decline in the total transaction value of new home transactions to RMB 387.1 billion[14] - Home renovation and furnishing net revenue increased by 59.9% to RMB 6.4 billion in the first half of 2024, driven by increased order volume, higher contributions from new retail, and improved delivery capabilities[14] - Rental services net revenue surged by 176.7% to RMB 5.8 billion in the first half of 2024, primarily due to the expansion of the managed rental property portfolio under the "Worry-Free Rent" model[14] - Home renovation and furnishing revenue grew by 59.9% year-over-year to RMB 6.45 billion in the first half of 2024[45] - Rental services revenue increased by 176.7% year-over-year to RMB 5.81 billion in the first half of 2024[45] - Emerging businesses and other revenue grew by 69.0% year-over-year to RMB 1.57 billion in the first half of 2024[45] - Net revenue for the existing home business decreased to RMB 13,061,919 in the first half of 2024, down from RMB 15,597,087 in the same period of 2023[62] - Net revenue for the new home business declined to RMB 12,850,320 in the first half of 2024, compared to RMB 17,099,714 in the first half of 2023[62] - Home renovation and furnishing business revenue increased significantly to RMB 6,449,072 in the first half of 2024, up from RMB 4,032,830 in the same period of 2023[62] - Housing rental services revenue more than doubled to RMB 5,812,743 in the first half of 2024, compared to RMB 2,100,888 in the first half of 2023[62] - Emerging businesses and others revenue grew to RMB 1,573,690 in the first half of 2024, up from RMB 931,482 in the same period of 2023[62] - Total net revenue remained stable at approximately RMB 39.7 billion in the first half of both 2024 and 2023[62] - Contribution profit for the housing rental services turned positive at RMB 330,921 in the first half of 2024, compared to a loss of RMB 147,997 in the same period of 2023[62] - Revenue from housing rental services increased to RMB 3,650,300, up from RMB 1,617,200 in the previous period, reflecting significant growth in this segment[78][79] Operational Metrics - The number of active stores as of June 30, 2024, was 44,423, an increase of 8.1% compared to 41,076 as of June 30, 2023[4] - The number of active agents as of June 30, 2024, was 411,478, showing a slight increase of 0.6% compared to 409,054 as of June 30, 2023[4] - The average monthly active users for the three months ending June 30, 2024, was 49.7 million, up from 48.0 million in the same period of 2023[4] - Non-real estate transaction service revenue accounted for 34.8% of total net revenue in the first half of 2024, a significant increase of 17 percentage points compared to the same period in 2023[6] - Home SaaS 2.5 version was launched, improving BIM shared service center and material fulfillment integration, enhancing designer efficiency and reducing error rates[9] - The company has 122,599 employees as of June 30, 2024, with 96,440 in brokerage and support roles and 1,992 in R&D[32] - The company has reorganized its reporting segments, with housing rental services now reported as a separate segment due to its increased scale and business importance[58] Share Repurchase and Dividends - The company repurchased approximately $4.8 billion worth of ADS in 2024, representing about 2.75% of the total shares outstanding at the end of 2023[12] - The company expanded its share repurchase program from $2 billion to $3 billion and extended the program until August 31, 2025[12] - The company has repurchased 95,012,729 American Depositary Shares (ADS) for a total consideration of $1,389,782,786.29 under its share repurchase program[34] - In the reporting period, the company repurchased 26,995,560 ADS for a total consideration of $380,000,306.80[34] - The company's share repurchase program has been expanded to $3 billion and extended to August 31, 2025[34] - A total of 80,986,680 Class A ordinary shares represented by repurchased ADS were canceled during the reporting period[36] - 3,248,679 Class B ordinary shares were converted to Class A ordinary shares to comply with dual-class share structure regulations[36] - The company has not recommended an interim dividend for the six months ended June 30, 2024[40] - The company declared a final cash dividend of USD 0.117 per ordinary share, totaling approximately USD 400 million[76] Financial Position and Cash Flow - The company's cash, cash equivalents, restricted funds, and short-term investments totaled RMB 59.7 billion as of June 30, 2024, compared to RMB 60.1 billion as of December 31, 2023[21] - Operating cash flow for the six months ended June 30, 2024, was RMB 3.86 billion, a decrease from RMB 7.43 billion in the same period in 2023[22] - Net cash used in investing activities for the six months ended June 30, 2024, was RMB 6.84 billion, compared to net cash generated of RMB 7.63 billion in the same period in 2023[22] - The company's debt-to-asset ratio increased to 42.3% as of June 30, 2024, from 40.0% as of December 31, 2023[25] - The company held RMB 55.6 billion in cash, cash equivalents, restricted funds, and short-term investments denominated in RMB, and USD 600 million in USD-denominated equivalents as of June 30, 2024[27] - Capital expenditures for the six months ended June 30, 2024, amounted to RMB 462 million[29] - The company's total financial debt as of June 30, 2024, was RMB 20.21 billion, up from RMB 17.99 billion as of December 31, 2023[22] - The RMB depreciated approximately 2.4% against the USD during the six months ended June 30, 2024[26] - The company's short-term investments included RMB 2.3 billion in wealth management products as of June 30, 2024, exposing it to interest rate risk[28] - The company's cash, cash equivalents, and restricted funds decreased by RMB 8.33 billion during the six months ended June 30, 2024[22] - Total contractual obligations as of June 30, 2024, amount to RMB 20,575,485 thousand, with RMB 6,642,671 thousand due in the remainder of 2024 and RMB 8,577,458 thousand due in 2025[31] - Operating lease and other commitments as of June 30, 2024, total RMB 1,119,600 thousand, including RMB 734.4 million in operating lease commitments and RMB 301.7 million in capital commitments[31] - Cash and cash equivalents as of June 30, 2024, were RMB 9,409,071 thousand, a decrease from RMB 19,634,716 thousand as of December 31, 2023[50] - Short-term investments as of June 30, 2024, were RMB 42,222,652 thousand, up from RMB 34,257,958 thousand as of December 31, 2023[50] - Total assets as of June 30, 2024, were RMB 122,497,997 thousand, compared to RMB 120,331,931 thousand as of December 31, 2023[50] - Total liabilities as of June 30, 2024, were RMB 51,794,889 thousand, up from RMB 48,130,826 thousand as of December 31, 2023[51] - Current liabilities as of June 30, 2024, were RMB 43,376,360 thousand, compared to RMB 39,523,983 thousand as of December 31, 2023[51] - Operating cash flow for the six months ended June 30, 2024, was RMB 3,857,678 thousand, down from RMB 7,431,689 thousand in the same period in 2023[53] - Total cash, cash equivalents, and restricted funds decreased by RMB 8,330,808 thousand in the six months ended June 30, 2024, compared to an increase of RMB 12,217,833 thousand in the same period in 2023[54] - Total equity attributable to shareholders of KE Holdings Inc. was RMB 70,569,240 thousand as of June 30, 2024, down from RMB 72,099,824 thousand as of December 31, 2023[52] - The company repurchased ordinary shares worth RMB 2,701,210 thousand in the six months ended June 30, 2024[54] - Total liabilities and equity increased to RMB 122,497,997 thousand as of June 30, 2024, from RMB 120,331,931 thousand as of December 31, 2023[52] - The company issued 3,529,562,630 Class A ordinary shares as of June 30, 2024, compared to 3,571,960,220 as of December 31, 2023[52] - Accumulated deficit decreased to RMB 3,349,081 thousand as of June 30, 2024, from RMB 5,672,916 thousand as of December 31, 2023[52] - The company's total cash and cash equivalents were RMB 9,409,071 thousand as of June 30, 2024, down from RMB 19,634,716 thousand as of the beginning of the period[55] - Restricted funds decreased to RMB 8,117,582 thousand as of June 30, 2024, from RMB 6,222,745 thousand as of the beginning of the period[55] - Total assets increased to RMB 123,013,087 thousand as of June 30, 2024, up from RMB 120,221,596 thousand at the end of 2023[80][81] - Total liabilities decreased slightly to RMB 51,792,333 thousand as of June 30, 2024, compared to RMB 48,023,046 thousand at the end of 2023[80][81] - Shareholders' equity rose to RMB 71,220,754 thousand as of June 30, 2024, from RMB

[Performance Summary and Management Commentary](index=1&type=section&id=Performance%20Summary%20%26%20Management%20Commentary) KE Holdings reported strong Q2 2024 performance, with GTV up 7.5% and net revenue up 19.9%, driven by existing home transactions and emerging businesses, alongside an expanded share repurchase program [Key Business and Financial Highlights](index=1&type=section&id=Key%20Business%20and%20Financial%20Highlights) In Q2 2024, KE Holdings' total GTV reached RMB 839 billion, up 7.5%, primarily driven by a 25.0% increase in existing home transactions, partially offsetting a 20.2% decline in new home transactions, with net revenue growing 19.9% to RMB 23.4 billion and adjusted net profit at RMB 2.693 billion Q2 2024 Gross Transaction Value (GTV) Overview | Business Segment | GTV (RMB Billion) | YoY Change | | :--- | :--- | :--- | | **Total GTV** | **839.0** | **+7.5%** | | Existing Home Transactions | 570.7 | +25.0% | | New Home Transactions | 235.3 | -20.2% | | Home Renovation and Furnishing | 4.2 | +22.3% | | Emerging and Other Businesses | 28.8 | +12.2% | Q2 2024 Core Financial Metrics | Metric | Amount (RMB Million) | YoY Change | | :--- | :--- | :--- | | Net Revenue | 23,400 | +19.9% | | Net Profit | 1,900 | +46.2% | | Adjusted Net Profit | 2,693 | +13.9% | Q2 2024 End Operating Metrics | Metric | Quantity | YoY Change | | :--- | :--- | :--- | | Number of Stores | 45,948 | +6.9% | | Number of Active Stores | 44,423 | +8.1% | | Number of Agents | 458,690 | +5.2% | | Number of Active Agents | 411,478 | Relatively Stable | | Average Mobile Monthly Active Users | 49.7 Million | +3.5% | [Management Commentary](index=2&type=section&id=Management%20Commentary) Management attributed the strong Q2 performance to deepened operations and scientific management, with the CEO emphasizing building a sustainable growth organization and the CFO highlighting improved profitability and an expanded share repurchase program - CEO Peng Yongdong stated that the company achieved market-outperforming results through deepened operations and scientific management, with the core goal for the future being to build an organization capable of sustained growth[2](index=2&type=chunk)[4](index=4&type=chunk) - CFO Xu Tao emphasized excellent Q2 performance, significant improvement in existing home transaction contribution margin, rapid growth in non-real estate transaction services, and enhanced profitability[4](index=4&type=chunk) - The company announced an expanded and extended share repurchase program, increasing authorization from **$2 billion to $3 billion** and extending the term to August 31, 2025, to continuously return value to shareholders[4](index=4&type=chunk) [Financial Results Analysis](index=3&type=section&id=Financial%20Results%20Analysis) KE Holdings demonstrated robust financial performance in Q2 2024, with net revenue increasing 19.9% to RMB 23.4 billion, gross margin improving to 27.9%, and operating profit significantly growing to RMB 2.0 billion, reflecting strong profitability and cost control [Net Revenue](index=3&type=section&id=Net%20Revenue) Q2 2024 net revenue increased 19.9% to RMB 23.4 billion, driven by growth in existing home, home renovation and furnishing, and home rental services, which offset a decline in new home business revenue Q2 2024 Net Revenue Composition (by Business Segment) | Business Segment | Net Revenue (RMB Billion) | YoY Change | | :--- | :--- | :--- | | **Total Net Revenue** | **23.4** | **+19.9%** | | Existing Home Business | 7.3 | +14.3% | | New Home Business | 7.9 | -8.8% | | Home Renovation and Furnishing | 4.0 | +53.9% | | Home Rental Services | 3.2 | +167.1% | | Emerging and Other Businesses | 0.9 | +57.8% | - Existing home business revenue growth was primarily due to a **25.0% YoY increase in GTV**, partially offset by a lower commission rate for Beijing Lianjia[6](index=6&type=chunk) - New home business revenue decline was due to a **20.2% YoY decrease in GTV**, partially offset by improved monetization capabilities[7](index=7&type=chunk) - Home renovation and furnishing revenue growth benefited from increased orders, greater new retail contributions, and improved delivery capabilities[7](index=7&type=chunk) - The surge in home rental services revenue was mainly due to an increase in the number of rental properties under the 'Carefree Rental' model[8](index=8&type=chunk) [Cost of Revenue and Gross Profit](index=5&type=section&id=Cost%20of%20Revenue%20and%20Gross%20Profit) Q2 2024 total cost of revenue increased 19.2% to RMB 16.9 billion, with gross profit growing 22.0% to RMB 6.5 billion and gross margin improving from 27.4% to 27.9%, driven by higher contribution margins from home renovation and home rental services Q2 2024 Cost of Revenue Composition | Cost Item | Amount (RMB Billion) | YoY Change | | :--- | :--- | :--- | | **Total Cost of Revenue** | **16.9** | **+19.2%** | | External Commissions | 5.4 | -6.9% | | Internal Commissions and Compensation | 4.4 | +7.9% | | Home Renovation and Furnishing Costs | 2.8 | +50.2% | | Home Rental Services Costs | 3.0 | +138.2% | | Store Costs | 0.681 | -6.7% | | Other Costs | 0.511 | +18.6% | - Gross margin improved from **27.4% in Q2 2023 to 27.9%**, primarily driven by higher contribution margins from home renovation and furnishing and home rental services, and a decrease in store costs as a percentage of revenue[10](index=10&type=chunk) [Operating Expenses and Profit](index=6&type=section&id=Operating%20Expenses%20and%20Profit) Q2 2024 total operating expenses grew moderately by 5.6% to RMB 4.5 billion, while operating profit significantly increased to RMB 2.015 billion, with operating margin improving from 5.5% to 8.6%, reflecting effective cost control Q2 2024 Operating Expenses | Expense Item | Amount (RMB Million) | YoY Change | | :--- | :--- | :--- | | **Total Operating Expenses** | **4,500** | **+5.6%** | | Sales and Marketing Expenses | 1,882 | +14.1% | | General and Administrative Expenses | 2,079 | -1.2% | | Research and Development Expenses | 505 | +6.3% | Q2 2024 Operating Profit Performance | Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Operating Profit (RMB Million) | 2,015 | 1,081 | | Operating Margin | 8.6% | 5.5% | | Adjusted Operating Profit (RMB Million) | 2,813 | 2,148 | | Adjusted Operating Margin | 12.0% | 11.0% | [Net Income and EPS](index=7&type=section&id=Net%20Income%20and%20EPS) In Q2 2024, net profit reached RMB 1.9 billion, a 46.2% increase YoY, with adjusted net profit at RMB 2.693 billion, and basic and diluted EPS for ADS both showing improvement over the prior year Q2 2024 Net Profit Performance | Metric | Q2 2024 (RMB Million) | Q2 2023 (RMB Million) | | :--- | :--- | :--- | | Net Profit | 1,900 | 1,300 | | Adjusted Net Profit | 2,693 | 2,364 | | Net Profit Attributable to Ordinary Shareholders | 1,892 | 1,309 | | Adjusted Net Profit Attributable to Ordinary Shareholders | 2,685 | 2,373 | Q2 2024 Net Earnings Per American Depositary Share (ADS) | Metric | Q2 2024 (RMB) | Q2 2023 (RMB) | | :--- | :--- | :--- | | Basic Net Earnings Per ADS | 1.67 | 1.10 | | Diluted Net Earnings Per ADS | 1.61 | 1.08 | | Adjusted Basic Net Earnings Per ADS | 2.36 | 2.00 | | Adjusted Diluted Net Earnings Per ADS | 2.28 | 1.96 | [Capital Management and Shareholder Returns](index=8&type=section&id=Capital%20Management%20and%20Shareholder%20Returns) As of June 30, 2024, KE Holdings maintained a strong financial position with RMB 59.7 billion in cash and equivalents, and enhanced shareholder returns by expanding its share repurchase program to $3 billion [Cash Position](index=8&type=section&id=Cash%20Position) As of June 30, 2024, the company held substantial cash reserves totaling RMB 59.7 billion (approximately $8.2 billion) in cash, cash equivalents, restricted cash, and short-term investments - As of June 30, 2024, the company's total cash, cash equivalents, restricted cash, and short-term investments amounted to **RMB 59.7 billion ($8.2 billion)**[15](index=15&type=chunk) [Share Repurchase Program](index=8&type=section&id=Share%20Repurchase%20Program) The company announced an expansion and extension of its share repurchase program, increasing the authorization from $2 billion to $3 billion and extending its validity to August 31, 2025, having already repurchased approximately $1.39 billion in shares - Since the inception of the existing share repurchase program, the company has cumulatively repurchased approximately **95 million ADSs** for a total consideration of approximately **$1.39 billion** as of the announcement date[15](index=15&type=chunk) - The board approved increasing the share repurchase authorization from **$2 billion to $3 billion** and extending the program's term to August 31, 2025[16](index=16&type=chunk) [Appendix: Unaudited Financial Statements](index=14&type=section&id=Appendix%3A%20Unaudited%20Financial%20Statements) This section provides detailed unaudited financial statements for KE Holdings Inc., including consolidated balance sheets, statements of operations, cash flows, GAAP to non-GAAP reconciliations, and segment contribution profit metrics as of and for the three and six months ended June 30, 2024 [Consolidated Balance Sheets](index=14&type=section&id=Consolidated%20Balance%20Sheets) The statement presents the company's assets, liabilities, and shareholders' equity as of June 30, 2024, and December 31, 2023, showing total assets of RMB 122.5 billion, total liabilities of RMB 51.8 billion, and total shareholders' equity of RMB 70.7 billion as of June 30, 2024 Balance Sheet Key Items (As of June 30, 2024) | Item | Amount (RMB Billion) | | :--- | :--- | | Total Assets | 122.5 | | Total Liabilities | 51.8 | | Total Shareholders' Equity | 70.7 | [Consolidated Statements of Operations](index=17&type=section&id=Consolidated%20Statements%20of%20Operations) This statement details the company's revenue, costs, expenses, and profit for the three and six months ended June 30, 2024, providing the foundational data for the preceding financial analysis - This section provides detailed income statement data, including net revenue for each business line, detailed costs and expenses, ultimately leading to net profit and comprehensive income[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk) [Reconciliation of GAAP and Non-GAAP Results](index=20&type=section&id=Reconciliation%20of%20GAAP%20and%20Non-GAAP%20Results) This section provides a detailed reconciliation process for adjusting GAAP operating profit and net profit to non-GAAP metrics, with key adjustments including share-based compensation expenses, intangible asset amortization, and fair value changes in investments - This section details the calculation process from GAAP net profit to Adjusted Net Profit and Adjusted EBITDA, excluding non-cash or non-operating items such as share-based compensation expenses[31](index=31&type=chunk)[32](index=32&type=chunk) [Consolidated Statements of Cash Flows](index=22&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The statement illustrates the company's cash inflows and outflows from operating, investing, and financing activities for the three and six months ended June 30, 2024, with Q2 2024 showing net cash inflow from operating activities of RMB 4.77 billion, net cash outflow from investing activities of RMB 8.13 billion, and net cash outflow from financing activities of RMB 3.93 billion Q2 2024 Cash Flow Overview | Activity Category | Net Cash (RMB Billion) | | :--- | :--- | | Net Cash Provided by Operating Activities | 4.773 | | Net Cash Used in Investing Activities | (8.134) | | Net Cash Used in Financing Activities | (3.931) | [Segment Contribution Profit](index=23&type=section&id=Segment%20Contribution%20Profit) This section provides contribution profit metrics segmented by business (existing home, new home, home renovation and furnishing, home rental), showing Q2 2024 contribution profits of RMB 3.48 billion for existing home, RMB 1.99 billion for new home, RMB 1.26 billion for home renovation and furnishing, and RMB 0.186 billion for home rental services, which achieved positive contribution profit for the first time Q2 2024 Contribution Profit by Business Segment | Business Segment | Contribution Profit (RMB Billion) | | :--- | :--- | | Existing Home Business | 3.483 | | New Home Business | 1.986 | | Home Renovation and Furnishing Business | 1.264 | | Home Rental Services | 0.186 | [Other Information](index=9&type=section&id=Other%20Information) This section provides details on the earnings conference call, company profile, a safe harbor statement regarding forward-looking statements, and investor relations contact information, offering avenues for further information and understanding potential risks [Conference Call Information](index=9&type=section&id=Conference%20Call%20Information) The company held its earnings conference call on August 12, 2024, Beijing time, with the announcement providing registration links for participation and details for accessing the replay - The announcement provided details for participating in the earnings conference call, including online registration links for English and Chinese simultaneous interpretation lines, and information for accessing the conference replay[17](index=17&type=chunk)[18](index=18&type=chunk) [About the Company & Safe Harbor Statement](index=11&type=section&id=About%20the%20Company%20%26%20Safe%20Harbor%20Statement) This section introduces KE Holdings as a leading online and offline integrated real estate transaction and service platform and includes a US-compliant 'Safe Harbor Statement' cautioning investors that forward-looking statements involve inherent risks and uncertainties - Company Profile: KE Holdings is a leading online and offline integrated real estate transaction and living services platform, owning and operating Lianjia, a leading real estate brokerage brand in China[22](index=22&type=chunk) - Safe Harbor Statement: The announcement contains forward-looking statements, and actual results may differ materially from expectations due to various risks and uncertainties[23](index=23&type=chunk)

Financial Performance - Gross transaction value (GTV) decreased by 35.2% year-over-year to RMB629.9 billion (US$87.2 billion) in Q1 2024, with existing home transactions down 31.8% and new home transactions down 45.4%[2]. - Net revenues fell by 19.2% year-over-year to RMB16.4 billion (US$2.3 billion) in Q1 2024, primarily due to declines in existing and new home transaction services[9]. - Net income was RMB432 million (US$60 million) in Q1 2024, with adjusted net income at RMB1,392 million (US$193 million)[2]. - Total net revenues for the three months ended March 31, 2024, were RMB 16,377,314, down from RMB 20,278,080 for the same period in 2023, representing a decline of approximately 19%[51]. - The gross profit for the three months ended March 31, 2024, was RMB 4,122,086, compared to RMB 6,349,798 for the same period in 2023, indicating a decrease of about 35%[51]. - KE Holdings Inc. reported a net income of RMB 432,122 for the three months ended March 31, 2024, compared to RMB 2,749,746 for the same period in 2023, reflecting a significant decline[51]. - Adjusted net income for the three months ended March 31, 2024, was RMB 3,561,263 thousand (approximately US$ 192,818 thousand), compared to RMB 2,749,746 thousand in the same period of 2023[59]. Revenue Breakdown - Revenue from home renovation and furnishing increased by 71.1% year-over-year to RMB2.4 billion (US$0.3 billion), driven by synergies with home transaction services[13]. - Revenue from home rental services surged by 189.3% year-over-year to RMB2.6 billion (US$0.4 billion), attributed to the growth of rental units under the Carefree Rent model[14]. - Net revenues from existing home transaction services for the three months ended March 31, 2024, were RMB 9,181,199 thousand, with a contribution of RMB 4,501,720 thousand[66]. - New home transaction services generated net revenues of RMB 8,404,084 thousand, contributing RMB 2,272,348 thousand for the same period[66]. - Home renovation and furnishing services reported net revenues of RMB 1,407,931 thousand, with a contribution of RMB 431,012 thousand[66]. - Home rental services generated net revenues of RMB 907,354 thousand, with a contribution of RMB (81,490) thousand, indicating a loss in this segment[66]. Operating Expenses - Total operating expenses increased by 21.9% to RMB4.1 billion (US$0.6 billion) in Q1 2024 from RMB3.4 billion in Q1 2023[19]. - General and administrative expenses rose by 24.5% to RMB2,019 million (US$280 million) in Q1 2024 compared to RMB1,621 million in Q1 2023[20]. - Sales and marketing expenses increased by 25.5% to RMB1,624 million (US$225 million) in Q1 2024 from RMB1,294 million in Q1 2023[20]. Cash and Investments - As of March 31, 2024, the combined balance of cash, cash equivalents, restricted cash, and short-term investments was RMB60.8 billion (US$8.4 billion)[26]. - Cash and cash equivalents decreased to RMB 17,845,299 as of March 31, 2024, from RMB 19,634,716 as of December 31, 2023[45]. - The company’s long-term investments decreased to RMB 20,658,437 as of March 31, 2024, from RMB 23,570,988 as of December 31, 2023[45]. - The company reported a net increase in cash and cash equivalents of RMB 12,860,096 thousand for the three months ended March 31, 2024[64]. Shareholder Returns - The company allocated approximately US$220 million to share repurchases in Q1 2024, aiming to enhance shareholder returns[7]. - The company has established a share repurchase program allowing for the purchase of up to US$2 billion of its Class A ordinary shares and/or ADSs until August 31, 2024[29]. - Approximately 76.6 million ADSs (representing about 229.8 million Class A ordinary shares) have been purchased under the share repurchase program for a total consideration of approximately US$1,129.8 million[30]. Strategic Initiatives - The "one body, three wings" strategy is being actively advanced to adapt to the evolving market environment[6]. - The company will separately report the financials of home rental services starting Q1 2024 to enhance understanding of revenue structure and margin trends[27]. Assets and Liabilities - As of March 31, 2024, KE Holdings Inc. reported total assets of RMB 119,021,436, a decrease from RMB 120,331,931 as of December 31, 2023[45]. - Total current liabilities increased to RMB 41,755,435 as of March 31, 2024, from RMB 39,523,983 as of December 31, 2023, representing an increase of approximately 6%[46]. - The company’s total shareholders' equity decreased to RMB 69,124,976 as of March 31, 2024, from RMB 72,201,105 as of December 31, 2023[50].

Financial Data and Key Metrics Changes - In Q1 2024, revenue reached RMB 16.4 billion, down from RMB 20.3 billion in the same period last year, representing a year-over-year decline of 19.2% [18] - Gross margin decreased to 25.2% from 31.3% year-over-year [18] - GAAP net income was RMB 432 million, a significant drop from RMB 2.75 billion in Q1 2023 [28] - Non-GAAP net income also fell to RMB 1.39 billion from RMB 3.56 billion year-over-year [28] Business Line Data and Key Metrics Changes - Revenue from existing home transactions was RMB 5.7 billion, down 37.6% year-over-year, with GTV at RMB 453.2 billion, down 31.8% [19] - New home transaction revenue was RMB 4.9 billion, a decline of 41.5% year-over-year, with GTV at RMB 151.8 billion, down 45.4% [21] - Home renovation and furniture business revenue grew by 71.1% year-over-year to RMB 2.4 billion, with contracted sales reaching RMB 3.4 billion, up 26.1% [22] - Home rental services revenue surged by 189.3% year-over-year to RMB 2.6 billion, with over 250,000 units managed [25][63] Market Data and Key Metrics Changes - The overall housing market saw a year-over-year decline in Q1, but some cities experienced transaction volume increases compared to the same period last year [17] - The new home market remains sluggish, with sales from the top 100 developers down nearly 50% year-over-year [21] - Existing home transaction volume on the platform increased by 14% year-over-year in April, indicating a recovery trend [35] Company Strategy and Development Direction - The company is focusing on enhancing the quality and efficiency of its housing transaction business, actively connecting with high-quality brands and agents [46] - A strategic expansion of connected stores is underway, with over 1,000 new stores added, maintaining a high retention rate [46] - The company aims to improve customer acquisition through innovative online content and service models, including live streaming and short videos [40][42] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the existing home market, while acknowledging the ongoing challenges in the new home market [33] - Positive government policies aimed at stimulating demand and reducing inventory are expected to support market recovery [34][56] - The company anticipates improved liquidity in the new home market and a gradual recovery in market confidence [33] Other Important Information - The company has allocated USD 220 million towards share repurchase in Q1 2024, with total cash liquidity reaching RMB 75.6 billion [29] - The company is committed to enhancing shareholder returns and optimizing capital operations despite challenging market conditions [30] Q&A Session Summary Question: Views on recent policies and market outlook - Management noted that despite price adjustments, transaction volumes in the existing home market remain stable, with some cities exceeding expectations [33] - The new home market is sluggish, but policies aimed at inventory reduction are expected to improve liquidity and market sentiment [34] Question: Customer acquisition channels and online traffic efficiency - The company is focusing on building online infrastructure and enhancing customer connection methods through live streaming and short videos [40] - New service models are being developed to better understand and meet customer needs [40] Question: Investments in core home transition business - The company is focused on growth with enhanced quality and efficiency, connecting with more high-quality brands and agents [46] - The number of active stores increased by 1.4% compared to the previous quarter, with a high retention rate for newly connected stores [46] Question: Outlook for new home sales - The new home market remains tough, but the company believes it will show resilience due to improved channel service capabilities and strategic partnerships with developers [50][51] Question: Home replacement policies and overall housing demand - Management views the government’s destocking policies as positive for market sentiment and liquidity, with Beike actively promoting old-for-new models [56][58] Question: Progress in decoration and window home services - The home renovation and furniture business achieved strong growth, with significant improvements in customer acquisition and delivery capabilities [60][62]

Financial Performance - Total transaction value for Q1 2024 was RMB 629.9 billion (USD 87.2 billion), a year-on-year decrease of 35.2%[1] - Net revenue for Q1 2024 was RMB 16.4 billion (USD 2.3 billion), down 19.2% year-on-year[2] - Adjusted net profit for Q1 2024 reached RMB 1.392 billion (USD 193 million)[2] - In Q1 2024, net revenue decreased by 19.2% to RMB 16.4 billion ($2.3 billion) from RMB 20.3 billion in Q1 2023, primarily due to declines in existing and new housing business revenues[5] - Total transaction value in Q1 2024 fell by 35.2% to RMB 629.9 billion ($87.2 billion) compared to RMB 971.5 billion in Q1 2023, attributed to a high base effect from Q1 2023 and weakened supply and demand[5] - Revenue from existing housing business dropped by 37.6% to RMB 5.7 billion ($0.8 billion), with total transaction value decreasing by 31.8% to RMB 453.2 billion ($62.8 billion)[5] - New housing business revenue fell by 41.5% to RMB 4.9 billion ($0.7 billion), with total transaction value down 45.4% to RMB 151.8 billion ($21.0 billion)[6] - Gross profit in Q1 2024 decreased by 35.1% to RMB 4.1 billion ($0.6 billion), with a gross margin of 25.2%, down from 31.3% in Q1 2023[9] - Operating profit for Q1 2024 was RMB 12 million ($2 million), a significant drop from RMB 2.978 billion in Q1 2023, with an operating margin of 0.1%[11] - Adjusted operating profit for Q1 2024 was RMB 960 million ($133 million), down from RMB 3.83 billion in Q1 2023, with an adjusted operating margin of 5.9%[11] - In Q1 2024, the net profit was RMB 432 million (USD 60 million), a significant decrease from RMB 2,750 million in Q1 2023, representing a decline of approximately 84.3%[12] - Adjusted net profit for Q1 2024 was RMB 1,392 million (USD 193 million), down from RMB 3,561 million in Q1 2023, indicating a decrease of about 61.0%[12] - Basic and diluted earnings per American Depositary Share (ADS) for Q1 2024 were RMB 0.38 (USD 0.05) and RMB 0.37 (USD 0.05), respectively, compared to RMB 2.32 and RMB 2.26 in Q1 2023, reflecting a decline of approximately 83.7% and 83.7%[13] Revenue Breakdown - Revenue from home decoration and furnishing reached RMB 2.4 billion, a year-on-year increase of 71.1%[4] - Revenue from housing rental services was RMB 2.6 billion, up 189.3% year-on-year[4] - The revenue from emerging businesses and others increased by 112.9% year-on-year, contributing to 35% of total revenue, up 21.7 percentage points from the same period in 2023[4] - Home decoration and furnishing revenue increased by 71.1% to RMB 2.4 billion ($0.3 billion), driven by synergies between property transactions and home decoration services[6] - Rental services revenue surged by 189.3% to RMB 2.6 billion ($0.4 billion), mainly due to an increase in rental listings under the "worry-free rental" model[6] Cash and Assets - As of March 31, 2024, the total cash, cash equivalents, restricted cash, and short-term investments amounted to RMB 60.8 billion (USD 8.4 billion)[14] - The company's cash and cash equivalents decreased from RMB 19,634,716,000 as of December 31, 2023, to RMB 17,845,299,000 as of March 31, 2024, a decline of about 9.1%[25] - The total equity attributable to shareholders decreased from RMB 72,099,824,000 as of December 31, 2023, to RMB 68,993,774,000 as of March 31, 2024, a reduction of approximately 4.4%[27] - The company's short-term investments increased from RMB 34,257,958,000 as of December 31, 2023, to RMB 36,034,979,000 as of March 31, 2024, representing a growth of about 5.2%[25] Share Repurchase and Governance - The company repurchased approximately USD 220 million worth of shares in Q1 2024[4] - The share repurchase program allows the company to buy back up to USD 2 billion of Class A common stock and/or ADSs by August 31, 2024, with approximately 76.6 million ADSs repurchased for a total consideration of about USD 1,129.8 million as of March 31, 2024[15] - The board of directors includes experienced executives, ensuring strong governance and strategic oversight[23] Operational Insights - The company utilizes non-GAAP financial metrics to assess operational performance, including adjusted operating profit and adjusted net profit, which help identify underlying business trends[19] - The company emphasizes that non-GAAP metrics should not be viewed in isolation and encourages investors to review financial data comprehensively[19] - The company aims to reshape service operation models to provide more efficient real estate transaction and living services[21] - The management's forward-looking statements involve inherent risks and uncertainties that could lead to significant differences in actual performance[22] - The company is committed to protecting its systems and infrastructure from cyberattacks, which is crucial for maintaining trust in its brokerage brands[22] - The company has established a strong online and offline integrated real estate transaction and service platform[21] Asset and Liability Changes - As of December 31, 2023, total assets amounted to RMB 120,331,931,000, while total assets as of March 31, 2024, decreased to RMB 119,021,436,000, representing a decline of approximately 1.1%[25] - Total current assets increased from RMB 69,753,623,000 as of December 31, 2023, to RMB 70,543,525,000 as of March 31, 2024, reflecting a growth of about 1.1%[25] - Total liabilities rose from RMB 48,130,826,000 as of December 31, 2023, to RMB 49,896,460,000 as of March 31, 2024, indicating an increase of approximately 3.7%[26] - The total non-current assets decreased from RMB 50,578,308,000 as of December 31, 2023, to RMB 48,477,911,000 as of March 31, 2024, reflecting a decline of about 4.1%[25] - The company's total current liabilities increased from RMB 39,523,983,000 as of December 31, 2023, to RMB 41,755,435,000 as of March 31, 2024, an increase of approximately 5.7%[26] - The total non-current liabilities decreased from RMB 8,606,843,000 as of December 31, 2023, to RMB 8,141,025,000 as of March 31, 2024, a reduction of about 5.4%[26]

Financial Performance - Total transaction volume for 2023 reached RMB 3,142.9 billion, a 20.4% increase from RMB 2,609.6 billion in 2022[5] - Net revenue for 2023 was RMB 77.8 billion, a 28.2% increase from RMB 60.7 billion in 2022[5] - Net profit for 2023 was RMB 5,890 million, compared to a net loss of RMB 1,397 million in 2022[5] - Adjusted net profit for 2023 was RMB 9,798 million, compared to RMB 2,843 million in 2022[5] - Gross profit grew 57.6% to RMB 21.7 billion in 2023 from RMB 13.8 billion in 2022, with gross margin rising to 27.9% from 22.7%[60] - Operating profit for 2023 was RMB 4.8 billion, compared to an operating loss of RMB 833 million in 2022, with an operating profit margin of 6.2%[61] - Adjusted operating profit for 2023 was RMB 8,719.3 million, compared to RMB 2,307.3 million in 2022[65] - Adjusted EBITDA for 2023 was RMB 11,344.7 million, compared to RMB 4,743.6 million in 2022[65] - Adjusted net profit attributable to Ke Holdings Inc. ordinary shareholders was RMB 9,792.1 million in 2023, compared to RMB 2,853.9 million in 2022[66] - Net cash provided by operating activities increased from RMB 8,460,754 thousand in 2022 to RMB 11,157,625 thousand in 2023[76] - Net cash used in investing activities decreased from RMB 8,472,355 thousand in 2022 to RMB 3,977,440 thousand in 2023[76] - Net cash used in financing activities in 2023 was RMB 6.962 billion, mainly due to repurchase of ordinary shares (RMB 5.151 billion) and dividend payments (RMB 1.431 billion)[81] - Capital expenditures were RMB 793 million and RMB 874 million in 2022 and 2023, respectively[82] - The company paid a special cash dividend of $0.057 per ordinary share or $0.171 per ADS, totaling approximately $200 million on August 31, 2023[128] - The company paid a final cash dividend of $0.117 per ordinary share or $0.351 per ADS, totaling approximately $400 million on March 14, 2024[128] Business Operations and Growth - Number of stores as of December 31, 2023, was 43,817, an 8.1% increase from 40,516 in 2022[5] - Number of active stores as of December 31, 2023, was 42,021, a 12.2% increase from 37,446 in 2022[5] - Number of agents as of December 31, 2023, was 427,656, an 8.5% increase from 394,020 in 2022[5] - Number of active agents as of December 31, 2023, was 397,135, a 13.6% increase from 349,681 in 2022[5] - Average monthly active users on mobile in Q4 2023 was 43.2 million, compared to 36.6 million in Q4 2022[5] - The company's platform completed approximately 4.4 million property transactions in 2023, with a total transaction value of RMB 3,142.9 billion (USD 442.7 billion)[7] - The company operates Lianjia, a leading real estate brokerage brand in China, which has accumulated over 22 years of operational experience since its establishment in 2001[7] - The company launched its platform in 2018, which has become a leading online and offline integrated property transaction and service platform in China[8] - The company's ACN network facilitates collaboration among brokerage brands, stores, and agents, streamlining the entire property transaction process[9] - The company provides a comprehensive range of services to consumers, including brokerage services for second-hand and new property transactions, leasing services, and home decoration services[10] - The company offers platform services to brokerage brands, stores, and agents, enabling role-based automatic commission distribution and access to infrastructure modules such as SaaS and training[10] - The company serves as a powerful sales channel for real estate developers, offering comprehensive sales and marketing solutions, including channel marketing and innovative tools[10] - The company is digitizing and standardizing workflows for home decoration and other service providers, aiming to improve operational efficiency and industry practices[10] - The company's platform infrastructure includes SaaS systems, client applications, community networks, and transaction service centers, benefiting ecosystem participants[9] - The company's platform hosts the largest database of authentic property listings in China, providing professional and efficient services throughout the property lifecycle[10] - The company has four main revenue sources: existing home business, new home business, home renovation and furnishing, and emerging businesses and others[11] - In 2023, approximately 74% of second-hand home transactions completed on the platform involved cross-store collaboration under the ACN network[13] - The company has verified approximately 5.69 million real listings for second-hand home transactions as of December 31, 2023[15] - The ACN network promotes collaboration and commission sharing among agents, enhancing service efficiency and customer experience[12] - The company provides SaaS systems to ecosystem participants, including A+ SaaS for affiliated brokerages and Link SaaS for internal operations[17] - The platform governance mechanism includes incentives like the "Shell Score" to encourage compliance with ACN network rules and high professional standards[14] - The company's infrastructure includes modules such as AI technology, virtual reality, and payment solutions to support various stages of property transactions and living services[16] - The company focuses on expanding service categories to enhance the network effect of its ecosystem and provide a one-stop solution for customer needs throughout the living cycle[11] - The company encourages agents to specialize in specific geographic areas and become experts in nearby properties, fostering community engagement[13] - The company's platform governance mechanism aims to create a safer environment for agents by addressing issues like private deals and client information leaks[14] - The company's platform provides a wide range of real estate resources, including second-hand homes, new homes, and rental properties, with detailed visual presentations and community information[18] - The platform offers tools for home decoration services, including quick quote calculations, design case references, and style effect previews, enhancing customer decision-making efficiency[19] - The company has established a deep community network, leveraging local insights and offline touchpoints to improve service accessibility and efficiency[20] - The platform integrates online and offline transaction services, including the "Ji Qian" signing system and NTS (Online Transaction Support System), streamlining property transfer and management processes[23] - The company has set up offline signing service centers in multiple cities, collaborating with banks, guarantors, and government agencies to simplify transaction procedures[23] - The platform provides comprehensive training and support for brokers, combining online courses, offline training, and practical tasks to enhance service quality[22] - The company is expanding its services to include home decoration recommendations at signing centers, offering a one-stop solution for post-transaction needs[23] - The platform showcases broker profiles, including transaction records, ratings, and rankings, to help customers evaluate service quality[19] - The company is transitioning brokers into "living" consultants, enabling them to provide insights across various residential services beyond real estate transactions[21] - The platform facilitates frequent community interactions, such as free printing and charging services, to generate real estate leads and prepare for additional residential services[21] - Lijia has approximately 97,500 active agents and 5,320 active offline brokerage stores as of December 31, 2023[26] - Lijia operates in 25 cities across China, with over 25,100 active agents in Beijing and 26,100 in Shanghai as of December 31, 2023[26] - The platform has over 397,000 active agents and 42,000 active brokerage stores representing 256 brokerage brands as of December 31, 2023[25] - Approximately 86% of second-hand housing listings on the platform are posted by agents from Beilian stores (including Deyou franchise stores) as of December 31, 2023[29] - Around 66% of the total transaction value for existing and new homes on the platform in 2023 was generated by Beilian stores and the company's new home sales channels[29] - The platform is associated with 255 brokerage brands (excluding Lijia), operating approximately 36,000 active brokerage stores with 299,500 active agents as of December 31, 2023[29] - Lijia pioneered the three-party agreement in property transactions, enhancing transparency and trust[26] - Lijia launched the "Property Dictionary" in 2008 and its Link SaaS system in 2010, leading the industry in transitioning from offline to online operations[26] - Lijia established the prototype of ACN in 2011, which was later tested, improved, and launched on the Beike platform[26] - Lijia has developed a comprehensive agent development program, including campus recruitment, regular exams, offline training, and online courses[26] - Total transaction value of new home transactions facilitated through the platform in 2023 was RMB 1,003 billion[30] - Accounts receivable turnover days for new home business improved to 43 days in Q4 2023, compared to 64 days in the same period of 2022[30] - The "prepaid commission" model accounted for approximately 53% of the net revenue from new home business in Q4 2023, up from 44% in the same period of 2022[30] - Home SaaS 2.5 system was fully upgraded and implemented in Beijing in the second half of 2023, focusing on improving the quality and efficiency of home furnishing services[34] - AI展厅 and smart construction sites were developed to enhance customer experience and construction management through AI design, online inspections, and project timeline management[35] - The company has built and continuously optimized a self-operated logistics system for customized furniture, improving storage and delivery efficiency nationwide[36] - The company provides comprehensive training and incentive mechanisms for home furnishing service providers, including post-training certification and performance-based resource allocation[37] - The number of managed properties under the "省心租" service increased from approximately 70,000 units at the end of 2022 to over 200,000 units by the end of 2023, with an occupancy rate rising by 6.0 percentage points to 95.1%[38] - The company's centralized apartment business managed over 10,000 units by the end of 2023[38] - The "楼盘字典" database covered approximately 277 million housing units as of December 31, 2023[40] - The company's AI applications include intelligent search and prediction, smart opportunity allocation, and property promotion systems, leveraging machine learning and deep learning algorithms[41] - The "贝壳好房" system uses a rating system based on property characteristics, browsing history, and display records to recommend high-quality properties to consumers, leading to higher exposure and faster transaction decisions[42] - The company developed AI assistants like "小贝" for real-time interaction and training for agents, and a property maintenance assistant for owners, which has shown effectiveness in improving service quality and transaction conversion rates[42] - The AI-powered home design product "设牛" allows designers and users to quickly generate and switch between multiple styles of renovation renderings, reducing trial-and-error costs in actual renovations[43] - The company invested RMB 2,546 million in R&D in 2022 and RMB 1,937 million in 2023, focusing on improving technology and developing new products[45] - The company relies on six data center facilities and third-party cloud services like Tencent Cloud for computing, storage, bandwidth, and other services, ensuring operational flexibility and disaster recovery capabilities[46] - Net revenue increased by 28.2% from RMB 60.7 billion in 2022 to RMB 77.8 billion in 2023, driven by a 20.4% increase in total transaction volume from RMB 2,609.6 billion to RMB 3,142.9 billion[54] - Existing home business net revenue grew by 15.9% from RMB 24.1 billion in 2022 to RMB 28.0 billion in 2023, with total transaction volume increasing by 28.6% from RMB 1,576.5 billion to RMB 2,028.0 billion[54] - New home business net revenue rose by 6.7% from RMB 28.7 billion in 2022 to RMB 30.6 billion in 2023, with total transaction volume increasing by 6.7% from RMB 940.5 billion to RMB 1,003.0 billion[54] - Commission income from existing home transactions increased by 10.8% from RMB 20.6 billion in 2022 to RMB 22.9 billion in 2023, with total transaction volume growing by 13.6% from RMB 746.4 billion to RMB 847.6 billion[54] - Platform services, franchise services, and other value-added services revenue increased by 45.8% from RMB 3.5 billion in 2022 to RMB 5.1 billion in 2023, driven by a 42.2% increase in total transaction volume from RMB 830.1 billion to RMB 1,180.4 billion[54] - Home furnishing business net revenue increased to RMB 10.9 billion in 2023 from RMB 5.0 billion in 2022, driven by increased orders from synergy between housing transactions and home furnishing, growth in new retail contributions, and improved delivery capabilities[55] - Emerging businesses and others net revenue surged 194.8% to RMB 8.4 billion in 2023 from RMB 2.8 billion in 2022, primarily due to increased rental housing management services under the worry-free rental model[55] - Total operating costs rose to RMB 56.1 billion in 2023 from RMB 46.9 billion in 2022, with external commissions and rental housing costs increasing to RMB 25.7 billion from RMB 20.5 billion[56] - Home furnishing operating costs jumped 116.3% to RMB 7.7 billion in 2023 from RMB 3.6 billion in 2022, reflecting the growth in net revenue[56] - Contribution margin for existing home business improved to 47.2% in 2023 from 39.8% in 2022, driven by reduced fixed salary costs[57][59] - Contribution margin for new home business increased to 26.6% in 2023 from 23.6% in 2022, supported by higher net revenue and lower fixed salary costs[57][59] Technology and Innovation - The company's platform infrastructure includes SaaS systems, client applications, community networks, and transaction service centers, benefiting ecosystem participants[9] - The company's platform hosts the largest database of authentic property listings in China, providing professional and efficient services throughout the property lifecycle[10] - The company's infrastructure includes modules such as AI technology, virtual reality, and payment solutions to support various stages of property transactions and living services[16] - The company's AI applications include intelligent search and prediction, smart opportunity allocation, and property promotion systems, leveraging machine learning and deep learning algorithms[41] - The "贝壳好房" system uses a rating system based on property characteristics, browsing history, and display records to recommend high-quality properties to consumers, leading to higher exposure and faster transaction decisions[42] - The company developed AI assistants like "小贝" for real-time interaction and training for agents, and a property maintenance assistant for owners, which has shown effectiveness in improving service quality and transaction conversion rates[42] - The AI-powered home design product "设牛" allows designers and users to quickly generate and switch between multiple styles of renovation renderings, reducing trial-and-error costs in actual renovations[43] - The company invested RMB 2,546 million in R&D in 2022 and RMB 1,937 million in 2023, focusing on improving technology and developing new products[45] - The company relies on six data center facilities and third-party cloud services like Tencent Cloud for computing, storage, bandwidth, and other services, ensuring operational flexibility and disaster recovery capabilities[46] - The company's VR technology, introduced in 2015, has been integrated into real estate transactions and services, allowing virtual property tours and real-time agent interactions[47] - The company's financial technology includes an electronic wallet developed by Li Fang Tong, enabling high-frequency and high-value monetary transactions within its ecosystem[48] Corporate Governance and Leadership - The company's board consists of 8 directors, including 4 executive directors, 1 non-executive director, and 3 independent non-executive directors[93] - Zuo Hui, the founder and honorary chairman, has been a visionary leader in China's real estate transaction and service industry, contributing to the company's growth and success over 20 years[94] - Peng Yongdong, aged 44, is the co-founder, chairman, executive director, and CEO, with extensive experience in technology and strategic consulting[95] - Shan Yigang, aged 51, is a co-founder and executive director, with deep expertise in the real estate brokerage industry[95] - Xu Wangang, aged 58, serves as the vice chairman and executive director, with a background in operations management and real estate brokerage[96] - Xu Tao, aged 50, is the executive director and CFO, with a strong financial background and experience in various tech companies[97] - Li Zhaohui, aged 48, is a non-executive director and currently serves as the vice president and head of investment at Tencent[98] - Li Chaohui has served as a director of Kuaishou Technology (listed on HKEX, stock code: 1024) since March 2017 and as a director of Zhihu (listed on NYSE and HKEX, stock codes: ZH and 2390) since September 2015[99] - Li Chaohui held director positions at Fenbi Limited (listed on HKEX, stock code: 2469) from December 2020 to March 2023 and at Howbuy Wealth Management Co., Ltd. (listed on NEEQ, stock code: 834418) from December 2013 to August 2022[99] - Chen Xiaohong has been an independent non-executive director of the company since August 2020 and was re-designated as such in May 2022[100] - Zhu Hansong founded Jiangyin Xiake Private Fund Management Co., Ltd. in March 2022 and serves as its chairman and general manager[101] - Wu Jun has been an independent non