BEKE(BEKE)2024-11-22 19:57Financial Data and Key Metrics Changes - In Q2 2024, total GTV reached RMB 839 billion, up 7.5% year-over-year, while net revenues were RMB 23.4 billion, representing a year-over-year increase of 19.9% [9][10] - Gross margin increased by 0.5 percentage points year-over-year to 27.9%, and GAAP net income reached RMB 1.9 billion, rising by 46.2% year-over-year [9][14] - Non-GAAP net income grew by 13.9% year-over-year to RMB 2.69 billion, exceeding market consensus [9][10] Business Line Data and Key Metrics Changes - Revenue from existing home transactions reached RMB 7.3 billion, up 14.3% year-over-year, with PTV at RMB 570.7 billion, increasing 25% year-over-year [10][11] - New home GTV reached RMB 235.3 billion, growing by 20.2% year-over-year and 55% quarter-over-quarter, despite a market downturn [10][11] - Revenue from home renovation and furnishings grew by 85.3% year-over-year, while home rental services revenue surged by 167.1% year-over-year [12][13] Market Data and Key Metrics Changes - The existing home market saw a notable recovery, with transaction volumes in first-tier cities increasing significantly, particularly in June [19][20] - The proportion of national GTV from existing home transactions increased from around 40% last year to approximately 44% in the first half of this year [18][19] - The new home market's year-over-year sales decline narrowed month by month in Q2, but overall performance remained subdued [21][22] Company Strategy and Development Direction - The company is focusing on enhancing operational capabilities, expanding store and agent networks, and improving customer acquisition strategies [4][5] - Emphasis is placed on community-based business models to better meet customer needs and differentiate from traditional residential industry practices [6][7] - The company aims to balance scale, quality, and efficiency while investing in infrastructure and technology to support growth [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted that supportive policies have contributed to market recovery, particularly in first-tier cities, and expressed optimism about the second half of the year [9][18] - The company anticipates challenges in the new home market but remains committed to improving operational efficiency and service quality [21][22] - Management highlighted the importance of adapting to changing customer needs and market dynamics to sustain growth [24][25] Other Important Information - The company has expanded its share repurchase program from US3 billion, reflecting a commitment to returning value to shareholders [15][16] - The number of active stores increased by over 2,400, or 6%, and the number of active agents rose by 40,000, indicating growth in operational capacity [3][4] Q&A Session Summary Question: Changes in the real estate market post-policy implementation - Management noted steady month-by-month improvement in the housing market, particularly in existing home transactions, with significant recovery in first-tier cities [18][19] Question: Performance of new home business compared to the industry - The new home business significantly outperformed the industry, with a notable increase in contracted transaction volume and revenue, indicating strong operational capabilities [23][24]