BEKE(BEKE)2024-08-12 17:03Financial Data and Key Metrics - Total GTV reached RMB839 billion, up 7.5% YoY [20] - Net revenue was RMB23.4 billion, representing a YoY increase of 19.9% [20] - Gross margin improved by 0.5 percentage points YoY to 27.9% [20] - GAAP net income reached RMB1.9 billion, rising by 46.2% YoY [20] - Non-GAAP net income grew by 13.9% YoY to RMB2.69 billion [20] Business Line Data and Key Metrics - Revenue from existing home transactions reached RMB7.3 billion, up 14.3% YoY [21] - GTV for existing home transactions was RMB570.7 billion, increasing 25% YoY [21] - New home GTV reached RMB235.3 billion, growing by 28.2% YoY [22] - Revenue from home renovation and furnishing business grew by 53.9% YoY to RMB4 billion [24] - Home rental services revenue reached RMB3.2 billion, up 167.1% YoY [25] Market Data and Key Metrics - Existing home transactions on the platform grew by 40% YoY in Q2 2024 [8] - New home GTV contraction narrowed to 20% YoY in Q2 2024 [8] - Home renovation and furnishings business revenue grew close to 60% YoY in H1 2024 [10] - Home rental services revenue grew by 177% YoY in H1 2024 [10] Company Strategy and Industry Competition - The company is transforming into a technology-powered, one-stop residential services platform model [6] - Focus on community-based business to leverage in-depth community knowledge and understanding of residents' needs [14] - Expansion of store and agency networks, with a net increase of over 2,400 active stores and 40,000 active agents since the end of 2023 [9] Management Commentary on Operating Environment and Future Outlook - The external macro environment will continue to pose challenges in H2 2024 [16] - The company aims to build capabilities to keep the organization moving forward from one success to the next [16] - The company is committed to cost efficiency under refined operational measures [30] Other Important Information - The company repurchased around 2 billion to $3 billion, extended until August 31, 2025 [32] Q&A Session Question: Changes in the real estate market after supportive policies - The housing market showed steady month-by-month improvement in Q2 2024, with existing home transactions rebounding sharply, especially in first-tier cities [35] - The new home market remains subdued, with year-over-year sales decline narrowing month-by-month [35] Question: Performance of new home business - The new home business outperformed the industry, with GTV reaching RMB235.3 billion, up 55% QoQ [40] - The company expanded cooperation with top-tier developers, doubling the number of strategic collaborations to 25 [40] Question: Growth strategy for home transaction services - The company added 48 new major brands and over 6,500 new stores in H1 2024, with a six-month retention rate of 93% [43] - Lianjia explored innovative store formats, including low-cost convenience stores and flagship stores with home-related elements [44] Question: Focus on home renovation and rental business - The home renovation business focused on upgrading digitalized capabilities and optimizing construction delivery [47] - The home rental business improved unit economics by enhancing service quality and leasing efficiency, with revenue reaching RMB3.19 billion, up 167% YoY [48]