<\/p>\n
KE Holdings Inc. Announces First Quarter 2023 Unaudited Financial Results<\/b><\/p>\n
BEIJING–(BUSINESS WIRE<\/a>)– Business and Financial Highlights for the First Quarter 2023<\/b><\/p>\n \nMr. Stanley Yongdong Peng, Chairman of the Board and Chief Executive Officer of Beike, commented, \u201cWe are pleased to see a strong rebound emerging in the real estate market in China along with improving macroeconomic conditions. During the market\u2019s recovery in the first quarter of 2023, we significantly outpaced the industry in GTV growth of both existing and new home transactions. Our outstanding performance was empowered by our hallmark advantages in ACN and our persistent support to service providers in good and tough times, as well as our efforts to transform to high-quality growth.\u201d<\/p>\n \n\u201cLooking to the future, we will unremittingly seek development and growth, fueled by our mission of \u2018Admirable Service, Joyful Living,\u2019 and driven by the unfilled needs of consumers in the residential services sector that we aspire to meet. Today, many consumers still yearn for higher quality homes and housing-related products and services. These needs are the mountain we set out to climb over the coming decade. We will continue to improve our capabilities to achieve development. We will strengthen our ACN to enhance collaboration and service quality and provide increased coverage of housing services. We will cultivate stronger brands while aiming to enhance the efficiency of our stores and service providers through better platform operations and technology advancement. Most importantly, we will never lose sight of our enduring commitment to doing the right thing and taking care of customers, which has rewarded us with positive feedback and will continue to inspire us to unceasingly move forward,\u201d concluded Mr. Peng.<\/p>\n \nMr. Tao Xu, Executive Director and Chief Financial Officer of Beike, added, \u201cFor the first quarter of this year, China\u2019s real estate market has staged a notable recovery, bolstered by favorable government policies coupled with the intensive release of pent-up housing demand from the pandemic. Benefiting from our better preservation of quality stores and agents during the market\u2019s profound downturn and the effective promotion of refined operations, we proactively capitalized on market recovery tailwinds and the seasonal boom at the beginning of the year. As a result, our GTV growth significantly outperformed the market and our net revenues reached RMB20.3 billion, a 61.6% increase year-over-year. Moreover, our more streamlined cost and expense structure has led to a significant increase in single-quarter profitability, bringing about the highest gross margin and operating margin since our listing at The New York Stock Exchange. Our net income reached RMB2,750 million for the first quarter, compared to net loss of RMB620 million in the same period in 2022, while non-GAAP net income jumped to RMB3,561 million in the first quarter, compared with RMB28 million in the same period in 2022, and an increase of 137% compared to the first quarter of 2021 with a similar revenue scale. As we look ahead, on the basis of optimized costs and expenses structure, we will reap profits from efficiency and continue to foster high-quality growth. In the long-run, we will be more proactive with our initiatives that contribute to long-term growth and greater vision. In the vast market of residential services, we will fortify our foundation with quality at our core, and make relentless efforts to improve the working environment of service providers and bring a better housing service experience to consumers.\u201d<\/p>\n First Quarter 2023 Financial Results<\/b><\/p>\n Net Revenues<\/span><\/b><\/p>\n Net revenues<\/b> increased by 61.6% to RMB20.3 billion (US$3.0 billion) in the first quarter of 2023 from RMB12.5 billion in the same period of 2022. The increase was primarily attributable to the increase in total GTV. Total GTV grew by 65.8% to RMB971.5 billion (US$141.5 billion) in the first quarter of 2023 from RMB586.0 billion in the same period of 2022, which was primarily attributable to the release of pent-up housing demand after the pandemic situation eased and the improved housing market expectations against the backdrop of the macroeconomic recovery and the successive introduction of supportive policies, as well as the expansion of the Company\u2019s home renovation and furnishing business.<\/p>\n Among that, (i) commission revenue <\/b>increased by 41.6% to RMB7.7 billion (US$1.1 billion) in the first quarter of 2023 from RMB5.5 billion in the same period of 2022, primarily due to an increase in GTV of existing home transactions served by Lianjia<\/i> stores of 43.2% to RMB288.8 billion (US$42.0 billion) in the first quarter of 2023 from RMB201.7 billion in the same period of 2022; and<\/p>\n (ii) revenues derived from platform service, franchise service and other value-added services, <\/b>which are mostly charged to connected stores and agents on the Company\u2019s platform, increased by 111.0% to RMB1.4 billion (US$0.2 billion) in the first quarter of 2023, from RMB0.7 billion in the same period of 2022, mainly due to a 117.9% increase of GTV of existing home transactions served by connected agents on the Company\u2019s platform to RMB375.5 billion (US$54.7 billion) in the first quarter of 2023 from RMB172.4 billion in the same period of 2022. Cost of Revenues<\/span><\/b><\/p>\n Total cost of revenues<\/b> increased by 34.9% to RMB13.9 billion (US$2.0 billion) in the first quarter of 2023 from RMB10.3 billion in the same period of 2022.<\/p>\n Gross Profit<\/span><\/b><\/p>\n Gross profit<\/b> increased by 186.1% to RMB6.3 billion (US$0.9 billion) in the first quarter of 2023 from RMB2.2 billion in the same period of 2022. Gross margin was 31.3% in the first quarter of 2023, compared to 17.7% in the same period of 2022. The increase in gross margin was primarily due to: a) a higher contribution margin for existing home transaction services led by the increased net revenues from existing home transaction services and the decreased fixed compensation costs for Lianjia<\/i> agents; b) a higher contribution margin for new home transaction services as a result of an increased number of projects with higher margins, and a relatively lower percentage of fixed compensation costs of net revenues from new home transaction services; c) a higher contribution margin for home renovation and furnishing business led by an increased contribution from products and services with higher margins; and d) a relatively lower percentage of costs related to stores and other costs of net revenues in the first quarter of 2023 compared to the same period of 2022.<\/p>\n Income (Loss) from Operations<\/span><\/b><\/p>\n Total operating expenses<\/b> increased by 7.5% to RMB3.4 billion (US$0.5 billion) in the first quarter of 2023 from RMB3.1 billion in the same period of 2022, mainly due to the increase of sales and marketing expenses along with the expansion of home renovation and furnishing business, which was partially offset by the decrease of research and development expenses.<\/p>\n Income from operations <\/b>was RMB2,978 million (US$434 million) in the first quarter of 2023, compared to loss from operations of RMB918 million in the same period of 2022. Operating margin <\/b>was 14.7% in the first quarter of 2023, compared to negative 7.3% in the same period of 2022, primarily due to: a) a relatively higher gross profit margin, and b) improved operating leverage as a result of personnel optimization and optimized resource utilization in the first quarter of 2023, compared to the same period of 2022.<\/p>\n Adjusted income from operations<\/b>6<\/sup> was RMB3,830 million (US$558 million) in the first quarter of 2023, compared to adjusted loss from operations of RMB450 million in the same period of 2022. Adjusted operating margin<\/b>7<\/sup>was 18.9% in the first quarter of 2023, compared to negative 3.6% in the same period of 2022. Adjusted EBITDA<\/b>8<\/sup> was RMB4,625 million (US$673 million) in the first quarter of 2023, compared to RMB341 million in the same period of 2022.<\/p>\n Net Income (Loss)<\/span><\/b><\/p>\n Net income<\/b> was RMB2,750 million (US$400 million) in the first quarter of 2023, compared to net loss of RMB620 million in the same period of 2022.<\/p>\n Adjusted net income <\/b>was RMB3,561 million (US$519 million) in the first quarter of 2023, compared to RMB28 million in the same period of 2022.<\/p>\n Net Income (Loss) attributable to KE Holdings Inc.\u2019s ordinary shareholders<\/span><\/b><\/p>\n Net income attributable to KE Holdings Inc.\u2019s ordinary shareholders<\/b> was RMB2,747 million (US$400 million) in the first quarter of 2023, compared to net loss attributable to KE Holdings Inc.\u2019s ordinary shareholders of RMB618 million in the same period of 2022.<\/p>\n Adjusted net income attributable to KE Holdings Inc.\u2019s ordinary shareholders<\/b>9<\/sup>was RMB3,558 million (US$518 million) in the first quarter of 2023, compared toRMB29 million in the same period of 2022.<\/p>\n Net Income (Loss) per ADS<\/span><\/b><\/p>\n Basic and diluted net income per ADS attributable to KE Holdings Inc.\u2019s ordinary shareholders<\/b>10<\/sup> were RMB2.32 (US$0.34) and RMB2.26 (US$0.33) in the first quarter of 2023, respectively, compared to RMB0.52 for both basic and diluted net loss per ADS attributable to KE Holdings Inc.\u2019s ordinary shareholders in the same period of 2022.<\/p>\n Adjusted basic and diluted net income per ADS attributable to KE Holdings Inc.\u2019s ordinary shareholders<\/b>11<\/sup> were RMB3.01 (US$0.44) and RMB2.92 (US$0.43) in the first quarter of 2023, respectively, compared to RMB0.02 for both adjusted basic and diluted net income per ADS attributable to KE Holdings Inc.\u2019s ordinary shareholders in the same period of 2022.<\/p>\n Cash, Cash Equivalents, Restricted Cash and Short-Term Investments<\/span><\/b><\/p>\n \nAs of March 31, 2023, the combined balance of the Company\u2019s cash, cash equivalents, restricted cash and short-term investments amounted to RMB66.6 billion (US$9.7 billion).<\/p>\n Business Outlook<\/b><\/p>\n \nFor the second quarter of 2023, the Company expects total net revenues to be between RMB18.5 billion (US$2.7 billion) and RMB19.0 billion (US$2.8 billion), representing an increase of approximately 34.3% to 37.9% from the same quarter of 2022. This forecast considers the potential impact of the recent real estate related policies and measures, all of which remain uncertain and may continue to affect the Company\u2019s operations. Therefore, the Company\u2019s ongoing and preliminary view are contingent on the business situation and market condition.<\/p>\n Share Repurchase Program<\/b><\/p>\n \nAs previously disclosed, the Company established a share repurchase program under which the Company may purchase up to US$1 billion of its Class A ordinary shares and\/or ADSs over a 12-month period. From the launch of the share repurchase program on September 1, 2022 to March 31, 2023, the Company in aggregate purchased approximately 16.2 million ADSs in the open market at a total consideration of approximately US$228.6 million pursuant to the share repurchase program, certain of which were settled in early April 2023.<\/p>\n Conference Call Information<\/b><\/p>\n \nThe Company will hold an earnings conference call at 8:00 A.M. U.S. Eastern Time on Thursday, May 18, 2023 (8:00 P.M. Beijing\/Hong Kong Time on Thursday, May 18, 2023) to discuss the financial results.<\/p>\n \nFor participants who wish to join the conference call using dial-in numbers, please complete online registration using the link provided below at least 20 minutes prior to the scheduled call start time. Dial-in numbers, passcode and unique access PIN would be provided upon registering.<\/p>\n \nParticipant Online Registration:https:\/\/s1.c-conf.com\/diamondpass\/10030661-ps8hfv.html<\/a><\/p>\n \nA replay of the conference call will be accessible through May 25, 2023, by dialing the following numbers:<\/p>\n \nUnited States:<\/p>\n<\/td>\n \n+1-855-883-1031<\/p>\n<\/td>\n<\/tr>\n \nMainland, China:<\/p>\n<\/td>\n \n400-1209-216<\/p>\n<\/td>\n<\/tr>\n \nHong Kong, China:<\/p>\n<\/td>\n \n800-930-639<\/p>\n<\/td>\n<\/tr>\n \nInternational:<\/p>\n<\/td>\n \n+61-7-3107-6325<\/p>\n<\/td>\n<\/tr>\n \nReplay PIN:<\/p>\n<\/td>\n \n10030661<\/p>\n<\/td>\n<\/tr>\n<\/table>\n
\nKE Holdings Inc. (\u201cBeike<\/b>\u201d or the \u201cCompany<\/b>\u201d) (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 first quarter ended March 31, 2023.<\/p>\n\n
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