Core Insights - Beike's "One Body, Three Wings" strategy continues to show effectiveness, with solid performance in Q1 2025 [1][2] Financial Performance - Total Gross Transaction Value (GTV) reached 843.7 billion yuan, a year-on-year increase of 34% [2] - Net revenue was 23.3 billion yuan, up 42.4% year-on-year [2] - Net profit stood at 855 million yuan, with adjusted net profit at 1.393 billion yuan [1][2] - Existing home business net revenue grew by 20% to 6.9 billion yuan, while new home business net revenue surged by 64.2% to 8.1 billion yuan [2] - Non-real estate transaction service revenue increased by 46.2%, accounting for 35.9% of total net revenue [2] Business Segments - Home decoration and furnishing revenue reached 2.9 billion yuan, a 22.3% increase, with a profit margin of 32.6%, up 2 percentage points [2] - Rental service revenue grew by 93.8% to 5.1 billion yuan, supported by an increase in managed properties [2] - Managed properties exceeded 500,000, with "Worry-Free Rental" managing over 490,000 units [2] Innovation and Technology - Beike is actively integrating AI technology across its services, enhancing long-term development [4] - The AI housing assistant "Pudding" has been launched in 10 cities to assist users in the home-buying process [4] - The "Client" assistant for agents has been used by over 200,000 agents, improving client maintenance and transaction rates [5] Research and Development - R&D expenses increased from 467 million yuan in Q1 2024 to 584 million yuan in Q1 2025, a 24.9% rise [4][5] - The company plans to continue investing in AI applications, indicating sustained growth in R&D spending [5] - As of March 31, 2025, Beike's cash and cash equivalents totaled 54.8 billion yuan [5]

Core Viewpoint - Beike (NYSE: BEKE, 02423.HK) reported strong financial performance for Q1 2025, driven by positive market conditions and strategic focus on AI applications [2][3]. Financial Performance - Total Gross Transaction Value (GTV) reached 843.7 billion yuan, a year-on-year increase of 34.0% [2]. - Net revenue was 23.3 billion yuan, up 42.4% year-on-year [2]. - Net profit stood at 855 million yuan, reflecting a significant growth of 98% [2]. - The revenue from existing home business grew by 20.0%, while new home business revenue surged by 64.2% [2]. - Non-real estate transaction services revenue increased by 46.2%, accounting for 35.9% of total net revenue [2][8]. Market Trends - The real estate market continued to benefit from policies implemented in September 2024, with new home GTV increasing by 53% [4]. - Existing home GTV reached 580.3 billion yuan, a 28.1% increase year-on-year [4]. - The overall supply-demand relationship in the market improved, contributing to increased transaction volumes [4]. Strategic Focus - The company plans to balance growth and efficiency, with a strong emphasis on AI investments [3][5]. - Management aims to enhance collaboration with developers and improve service efficiency through various tools and platforms [5][6]. - AI tools such as "Buding" for consumers and various assistants for agents are being deployed to improve matching efficiency and service quality [6][7]. Non-Real Estate Business Growth - Non-real estate transaction services saw a net revenue increase of 46.2%, with home decoration and furniture services performing well [8]. - Home decoration services generated 2.9 billion yuan in revenue, a 22.3% increase, with a profit margin of 32.6% [8]. - Rental service revenue reached 5.1 billion yuan, a remarkable growth of 93.8% year-on-year, supported by an increase in managed properties [8].