UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of May 2024
Commission File Number: 001-39436
KE Holdings Inc.
(Registrant's Name)
Oriental Electronic Technology Building,
No. 2 Chuangye Road, Haidian District,
Beijing 100086
People's Republic of China
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annualreports
under cover Form 20-F or Form 40-F.
Form 20-F
x
Form 40-F
..
EXHIBIT INDEX
Exhibit No. Description
99.1 Press Release-KE Holdings Inc. Announces First Quarter 2024 Unaudited Financial Results
SIGNATURES
Pursuant to the requirements of the SecuritiesExchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
KE Holdings Inc.
By : /s/ XU Tao
Name : XU Tao
Title : Chief Financial Officer
Date:
May 24,2024
Exhibit 99.1
Hong Kong Exchanges and ClearingLimited and The Stock Exchange of Hong Kong
Limited take no responsibility for the contents of this announcement, make no
representationas to its accuracy or completeness and expressly disclaim any
liability whatsoever for any loss howsoever arising from or in relianceupon
the whole or any part of the contents of this announcement.
KE Holdings Inc.
Pl
(A company controlled throughweighted voting rights and incorporated in the
Cayman Islands with limited liability)
(Stock Code: 2423)
INSIDE INFORMATION
KE HOLDINGS INC. ANNOUNCESFIRST QUARTER
2024 UNAUDITED FINANCIAL RESULTS
This announcement is issued pursuantto Rule 13.09 of the Rules Governing the
Listing of the Securities on The Stock Exchange of Hong Kong Limited and under
Part XIVAof the Securities and Futures Ordinance (Cap. 571).
BEIJING, China, May 23,2024 - KE Holdings Inc. ("
Beike
" or the "
Company
") (NYSE: BEKE and HKEX: 2423), a leadingintegrated online and offline
platform for housing transactions and services, today announced its unaudited
financial results for thefirst quarter ended March 31, 2024, which have been
prepared in accordance with U.S. Generally Accepted Accounting Principles ("
GAAP
"),which are different from the International Financial Accounting Standards.
Shareholders and potentialinvestors of the Company are advised to exercise
caution when dealing in the securities of the Company.
Business and Financial Highlightsfor the First Quarter 2024
. Gross transaction value (GTV)
1
was RMB629.9 billion (US$87.2 billion), a decrease of 35.2% year-over-year.
GTV of existing home transactions
was RMB453.2 billion (US$62.8 billion), a decrease of 31.8% year-over-year.
GTV of new home transactions
was RMB151.8 billion (US$21.0 billion), a decrease of 45.4% year-over-year.
GTV of home renovation and furnishing
was RMB3.4 billion (US$0.5 billion), an increase of 26.1% year-over-year.
GTV of emerging and other services
was RMB21.5 billion (US$3.0 billion), a decrease of 19.3% year-over-year.
1 GTV for a given period is calculated as the total value of all transactions
which the Company facilitated on the Company's platform and evidenced by signed
contracts as of the end of the period, including the value of the existing home
transactions, new home transactions, home renovation and furnishing and emerging
and other services (excluding home rental services), and including transactions
that are contracted but pending closing at the end of the relevant period. For
the avoidance of doubt, for transactions that failed to close afterwards, the
corresponding GTV represented by these transactions will be deducted accordingly.
1
. Net revenues
were RMB16.4 billion (US$2.3 billion), a decrease of 19.2% year-over-year.
. Net income
was RMB432 million (US$60 million).
Adjusted net income
2
was RMB1,392 million (US$193 million).
. Number of stores
was 44,216 as of March 31, 2024, a 7.1% increase from one year ago.
Number of active stores
3
was 42,593 as of March 31, 2024, a 7.5% increase from one year ago.
. Number of agents
was 442,705 as of March 31, 2024, a 1.6% increase from one year ago.
Number of active agents
4
was 399,159 as of March 31, 2024, a 3.0% decrease from one year ago.
. Mobile monthly active users (MAU)
5
averaged 47.7 million in the first quarter of 2024, compared to 45.4 million in the same period of 2023.
2 Adjusted net income (loss) is a non-GAAP financial measure, which is
defined as net income (loss), excluding (i) share-based compensation
expenses, (ii) amortization of intangible assets resulting from acquisitions
and business cooperation agreement, (iii) changes in fair value from
long-term investments, loan receivables measured at fair value and contingent
consideration, (iv) impairment of investments, and (v) tax effects
of the above non-GAAP adjustments. Please refer to the section titled
"Unaudited reconciliation of GAAP and non- GAAP results" for details.
3 Based on our accumulated operational
experience, we have introduced
the operating metrics of number of active stores and number
of active agents on our platform, which can better reflect the
operational activeness of stores and agents on our platform.
"Active stores" as of a given date is defined as stores on our platform
excluding the stores which (i) have not facilitated any housing
transaction during the preceding 60 days, (ii) do not have any agent who
has engaged in any critical steps in housing transactions (including
but not limited to introducing new properties, attracting new customers
and conducting property showings) during the preceding seven days,
or (iii) have not been visited by any agent during the preceding 14
days. The number of active stores was 39,622 as of March 31, 2023.
4 "Active agents" as of a given date is defined as agents on our platform
excluding the agents who (i) delivered notice to leave but have not yet
completed the exit procedures, (ii) have not engaged in any critical
steps in housing transactions (including but not limited to introducing
new properties, attracting new customers and conducting property
showings) during the preceding 30 days, or (iii) have not participated
in facilitating any housing transaction during the preceding three
months. The number of active agents was 411,526 as of March 31, 2023.
5 "Mobile monthly active users" or
"mobile MAU" are to the sum of (i)
the number of accounts that have accessed our platform through our
Beike
or
Lianjia
mobile app (with duplication eliminated) at least once during a month, and (ii) the number of
Weixin users that have accessed our platform through our Weixin Mini Programs at least once during
a month. Average mobile MAU for any period is calculated by dividing (i) the sum of the Company's
mobile MAUs for each month of such period, by (ii) the number of months in such period.
2
Mr. Stanley Yongdong Peng,Chairman of the Board and Chief Executive Officer of
Beike, commented, "As the existing housing market plays an increasingly
importantrole, China's real estate industry is accelerating its transformation
into a new era. We have prioritized quality and efficiency,making new strides
across multiple business lines. We actively connect with quality stores in the
industry and innovate the communitymini-store models under our self-owned brand
Lianjia
, significantly enhancing our community presence and service capabilities,gradua
lly establishing the infrastructure for a one-stop residential services
platform. We deeply explore customer needs and have madenumerous new attempts
to enhance our online and offline service capabilities in housing transactions
and our new initiatives. These includeinnovative ways of connecting with
customers through short videos and live streaming, and providing various
protections to address tenants'core concerns."
"In this era of transformation,we embrace new possibilities, focusing on
customer experience as we actively tackle challenges. We believe that these
efforts will helpthe Company achieve sustained growth," concluded Mr. Peng.
Mr. Tao Xu, Executive Directorand Chief Financial Officer of Beike, added,
"The housing market saw a year-over-year decline in the first quarter,
primarily dueto the high performance from early last year as a result of the
release of pent-up demands from the pandemic. However, if compared withthe
typical first quarter market performance, the existing home market was fairly
stable in the first quarter of this year.
For performance in the firstquarter, our net revenues reached RMB16.4 billion;
gross margin stood at 25.2%; net income reached RMB432 million; adjusted net
incomewas RMB1,392 million. In response to an evolving market environment, we
actively advance our "one body, three wings" strategy.Revenues of home
renovation and furnishing, home rental services, emerging and other services
grew by 112.9% year-over-year in the firstquarter, accounting for an
increasing portion of our total revenue at 35% and surging by 21.7 percentage
points from the same periodof 2023. Revenue from home renovation and
furnishing business reached RMB2.4 billion, rising by 71.1% year-over-year.
Revenue from homerental services reached RMB2.6 billion, up 189.3% year-over-
year. Our "one-stop residential services platform" model isfurther taking
shape.
We remained steadfast in enhancingshareholder returns, refining the Company's
capital structure, and optimizing capital operation efficiency. In the first
quarter,we allocated approximately US$220 million to share repurchases. We are
committed to providing our shareholders with sustained returns,navigating
through cycles together.
We will fully support our businessthrough optimizing financial resource
allocation. At the same time, we will maintain our high standards for risk
management and capitalallocation efficiency, contributing to the long-term
development of our business."
3
First Quarter 2024 Financial Results
Net Revenues
Net revenues
decreasedby 19.2% to RMB16.4 billion (US$2.3 billion) in the first quarter of
2024 from RMB20.3 billion in the same period of 2023. The decreasewas
primarily attributable to the decrease of net revenues from existing home
transaction services and new home transaction services,partially offset by the
increase of net revenues from home renovation and furnishing and home rental
services. Total GTV decreased by35.2% to RMB629.9 billion (US$87.2 billion) in
the first quarter of 2024 from RMB971.5 billion in the same period of 2023,
primarilyattributable to a) the high base effect on housing transaction market
in the first quarter of 2023 due to the release of pend-up demandafter the
ease of COVID-19 containment restrictions and the peak of transactions
concentrated in February and March of 2023,and b) the sluggish new home
transactions market due to weakness in both supply and demand in the first
quarter of 2024.
. Net revenues from existing home transaction services
decreased by 37.6% to RMB5.7 billion (US$0.8 billion) in the first quarter of 2024 from RMB9.2
billion in the same period of 2023, primarily attributable to the decrease of the GTV of existing
home transactions of 31.8% to RMB453.2 billion (US$62.8 billion) in the first quarter of 2024
from RMB664.3 billion in the same period of 2023. The difference in year-over-year change
rate between the GTV of existing home transaction services and that of net revenues was primarily
attributable to a higher contribution from GTV of existing home transaction services served
by connected agents on the Company's platform, for which revenue is recorded on a net basis from
platform service, franchise service and other value-added services, while for GTV served by
Lianjia
brand, the revenue is recorded on
a gross commission revenue basis.
Among that,
(i) commissionrevenue
decreased by 40.2% to RMB4.6 billion (US$0.6 billion) in the first quarter of
2024 from RMB7.7 billion in the same periodof 2023, primarily due to a
decrease in GTV of existing home transactions served by
Lianjia
stores of 37.9% to RMB179.2 billion(US$24.8 billion) in the first quarter of
2024 from RMB288.8 billion in the same period of 2023; and
(ii) revenuesderived from platform service, franchise service and other
value-added services,
which are mostly charged to connected stores andagents on the Company's
platform, decreased by 23.5% to RMB1.1 billion (US$0.2 billion) in the first
quarter of 2024 from RMB1.4billion in the same period of 2023, mainly due to a
decrease of GTV of existing home transactions served by connected agents on
the Company'splatform of 27.0% to RMB274.0 billion (US$37.9 billion) in the
first quarter of 2024 from RMB375.5 billion in the same period of 2023.
4
. Net revenues from new home transaction services
decreased by 41.5% to RMB4.9 billion (US$0.7 billion) in the first quarter of 2024 from RMB8.4
billion in the same period of 2023, primarily due to the decrease of GTV of new home transactions
of 45.4% to RMB151.8 billion (US$21.0 billion) in the first quarter of 2024 from RMB277.9
billion in the same period of 2023. Among that, the GTV of new home transactions completed on
Beike
platform through connected agents, dedicated sales team with the expertise on
new home transaction services and other sales channels decreased by 46.6% to
RMB121.3 billion (US$16.8 billion) in the first quarter of 2024 from RMB227.0
billion in the same period of 2023, and the GTV of new home transactions served by
Lianjia
brand decreased by 40.1% to RMB30.5
billion (US$4.2 billion) in the
first quarter of 2024 from RMB50.9
billion in the same period of 2023.
. Net revenues from home renovation and furnishing
increased by 71.1% to RMB2.4 billion (US$0.3 billion) in the first
quarter of 2024 from RMB1.4 billion in the same period of 2023,
primarily attributable to a) the increase of orders driven by the
synergetic effects from customer acquisition and conversion between
home transaction services and home renovation and furnishing business,
b) a larger contribution from furniture and home furnishing sales
(in categories such as customized furniture, soft furnishings, and
electrical appliances), and c) enhanced delivery capabilities.
. Net revenues from home rental services
increased by 189.3% to RMB2.6 billion (US$0.4 billion) in the first quarter of 2024 from RMB0.9 billion in
the same period of 2023, primarily attributable to the increase of the number of rental units under the
Carefree Rent
model.
. Net revenues from emerging and other services
were RMB0.7 billion (US$0.1 billion) in the first quarter of 2024, compared to RMB0.4 billion in the same period of 2023.
Cost of Revenues
Total cost of revenues
decreasedby 12.0% to RMB12.3 billion (US$1.7 billion) in the first quarter of
2024 from RMB13.9 billion in the same period of 2023.
. Commission - split.
The Company's cost of revenues for commissions to connected agents and other sales
channels was RMB3.4 billion (US$0.5 billion) in the first quarter of 2024, compared to
RMB5.6 billion in the same period of 2023, primarily due to the decrease in the GTV
of new home transactions completed through connected agents and other sales channels.
. Commission and compensation - internal.
The Company's cost of revenues for internal commission and compensation decreased
by 30.9% to RMB3.6 billion (US$0.5 billion) in the first quarter of 2024 from
RMB5.2 billion in the same period of 2023, primarily due to a decrease in the
GTV of existing home transactions and new home transactions completed through
Lianjia
agents.
5
. Cost of home renovation and furnishing.
The Company's cost of revenues for home renovation and furnishing increased
by 71.1% to RMB1.7 billion (US$0.2 billion) in the first quarter of 2024
from RMB1.0 billion in the same period of 2023, which was primarily
attributable to the growth of net revenues from home renovation and furnishing.
. Cost of home rental services.
The Company's cost of revenues for home rental services increased by
150.8% to RMB2.5 billion (US$0.3 billion) in the first quarter of 2024
from RMB1.0 billion in the same period of 2023, which was primarily
attributable to the growth of net revenues from home rental services.
. Cost related to stores.
The Company's cost related to stores was RMB685 million (US$95 million) in the first
quarter of 2024, relatively flat compared with RMB686 million in the same period of 2023.
. Other costs.
The Company's other costs decreased to RMB379 million (US$52 million) in the first quarter of 2024 from RMB424 million
in the same period of 2023, mainly due to the decreased tax and surcharges in line with the decreased net revenues.
Gross Profit
Gross profit
decreasedby 35.1% to RMB4.1 billion (US$0.6 billion) in the first quarter of
2024 from RMB6.3 billion in the same period of 2023. Gross marginwas 25.2% in
the first quarter of 2024, compared to 31.3% in the same period of 2023. The
decrease in gross margin was primarily dueto a) a higher contribution of net
revenues from home rental services with a relatively lower contribution margin
than other revenuestreams, b) a lower contribution margin for existing home
transaction services led by the decreased net revenues from existing home
transactionservices and relatively flat fixed compensation costs for
Lianjia
agents, c) a lower contribution margin for new home transactionservices led by
a higher commission-split as percentage of net revenues from new home
transaction services paid to connected agents andother channels, and the
decreased net revenues from new home transaction services with relatively flat
fixed costs, and d) partiallyoffset by a higher contribution of net revenues
from home renovation and furnishing in the first quarter of 2024 compared to
the sameperiod of 2023.
Income (Loss) from Operations
Total operating expenses
increased by 21.9%to RMB4.1 billion (US$0.6 billion) in the first quarter of
2024 from RMB3.4 billion in the same period of 2023.
. General and administrative expenses
increased by 24.5% to RMB2,019 million (US$280 million) in the first
quarter of 2024 from RMB1,621 million in the same period of 2023, mainly
due to the increase of personnel costs, provision for credit loss and
share-based compensation expenses compared to the same period of 2023.
. Sales and marketing expenses
increased by 25.5% to RMB1,624 million (US$225 million) in the first quarter of
2024 from RMB1,294 million in the same period of 2023, mainly due to the increase
in sales and marketing expenses for home renovation and furnishing business
in line with the growth of net revenues from home renovation and furnishing.
. Research and development expenses
were RMB467 million (US$65 million) in the first quarter of 2024 relatively flat with RMB457 million in the same period of 2023.
6
Income from operations
wasRMB12 million (US$2 million) in the first quarter of 2024, compared to
income from operations of RMB2,978 million in the same periodof 2023.
Operating margin
was 0.1% in the first quarter of 2024, compared to 14.7% in the same period of
2023, primarily due toa) a lower gross margin due to the decreased
contribution margins of existing and new home transaction services and the
change of revenuestructure and b) the increased contribution of net revenues
from home renovation and furnishing and home rental services, which was
stillin the ramp-up period with a relatively lower operating margin than that
of home transaction services in the first quarter of 2024, comparedto the same
period of 2023.
Adjustedincome from operations
6
was RMB960 million (US$133 million) in the first quarter of 2024, compared to
RMB3,830 millionin the same period of 2023.
Adjusted operating margin
7
was 5.9% in the first quarter of 2024, compared to 18.9% inthe same period of
2023.
Adjusted EBITDA
8
was RMB1,666 million (US$231 million) in the first quarter of 2024, comparedto
RMB4,625 million in the same period of 2023.
Net Income (Loss)
Net income
was RMB432million (US$60 million) in the first quarter of 2024, compared to
RMB2,750 million in the same period of 2023.
Adjusted net income
wasRMB1,392 million (US$193 million) in the first quarter of 2024, compared to
RMB3,561 million in the same period of 2023.
Net Income (Loss) attributableto KE Holdings Inc.'s Ordinary Shareholders
Net income attributable toKE Holdings Inc.'s ordinary shareholders
was RMB432 million (US$60 million) in the first quarter of 2024, compared to
RMB2,747million in the same period of 2023.
Adjusted net income attributableto KE Holdings Inc.'s ordinary shareholders
9
was RMB1,392 million (US$193 million) in the first quarter of 2024,compared to
RMB3,558 million in the same period of 2023.
6 Adjusted income (loss) from operations is a non-GAAP financial measure, which is defined as income
(loss) from operations, excluding (i) share-based compensation expenses, and (ii) amortization
of intangible assets resulting from acquisitions and business cooperation agreement. Please refer
to the section titled "Unaudited reconciliation of GAAP and non-GAAP results" for details.
7 Adjusted operating margin is adjusted income (loss) from operations as a percentage of net revenues.
8 Adjusted EBITDA is a non-GAAP financial measure, which is defined as
net income (loss), excluding (i) income tax expense, (ii) share-based
compensation expenses, (iii) amortization of intangible assets, (iv)
depreciation of property, plant and equipment, (v) interest income,
net, (vi) changes in fair value from long- term investments, loan
receivables measured at fair value and contingent consideration, and
(vii) impairment of investments. Please refer to the section titled
"Unaudited reconciliation of GAAP and non-GAAP results" for details.
9 Adjusted net income (loss) attributable to KE Holdings Inc.'s ordinary shareholders is a non-GAAP
financial measure and defined as net income (loss) attributable to KE Holdings Inc.'s ordinary
shareholders, excluding (i) share-based compensation expenses, (ii) amortization of intangible assets
resulting from acquisitions and business cooperation agreement, (iii) changes in fair value from
long-term investments, loan receivables measured at fair value and contingent consideration, (iv)
impairment of investments, (v) tax effects of the above non-GAAP adjustments, and (vi) effects of
non-GAAP adjustments on net income (loss) attributable to non-controlling interests shareholders.
Please refer to the section titled "Unaudited reconciliation of GAAP and non-GAAP results" for details.
7
Net Income (Loss) per ADS
Basic and diluted net incomeper ADS attributable to KE Holdings Inc.'s
ordinary shareholders
10
were RMB0.38 (US$0.05) and RMB0.37 (US$0.05)in the first quarter of 2024,
respectively, compared to RMB2.32 and RMB2.26 in the same period of 2023,
respectively.
Adjusted basic and diluted net income per ADS attributable to KEHoldings
Inc.'s ordinary shareholders
11
were RMB1.21 (US$0.17) and RMB1.18 (US$0.16) in the first quarter of
2024,respectively, compared to RMB3.01 and RMB2.92 in the same period of 2023,
respectively.
Cash, Cash Equivalents,Restricted Cash and Short-Term Investments
As of March 31, 2024, thecombined balance of the Company's cash, cash
equivalents, restricted cash and short-term investments amounted to RMB60.8
billion(US$8.4 billion).
Change in Business Line Presentation
In view of the increased scaleand business importance of the Company's home
rental services, the Company has decided to separately report the financials
of homerental services, to help investors better understand the Company's
revenue structure and margin trends, from the first quarterof 2024 onwards,
which is also in accordance with the way report to the Company's chief
operating decision maker. Prior periodresults have been recast to conform to
this updated presentation for the current year.
Home rental services involverental property management and operation services
with respect to dispersed and centralized properties, and other rental-related
servicesincluding monetization of platform traffic and online rental
management services, which were previously classified mainly under the
"emergingand other services" business line. For the avoidance of doubt,
brokerage services relating to home rentals continue to be a partof "existing
home transaction services" business line. Please see the "
Unaudited Segment Contribution Measure
"included in this announcement for the revised segment presentation. These
changes do not affect unaudited condensed consolidated balancesheets,
unaudited condensed consolidated statements of operations or unaudited
condensed consolidated statements of cash flows.
10 ADS refers to American Depositary Share. Each ADS represents three Class A ordinary shares of the
Company. Net income (loss) per ADS attributable to KE Holdings Inc.'s ordinary shareholders is
net income (loss) attributable to ordinary shareholders divided by weighted average number of ADS
outstanding during the periods used in calculating net income (loss) per ADS, basic and diluted.
11 Adjusted net income (loss) per ADS attributable to KE Holdings Inc.'s ordinary shareholders is a non- GAAP financial
measure, which is defined as adjusted net income (loss) attributable to KE Holdings Inc.'s ordinary shareholders divided by
weighted average number of ADS outstanding during the periods used in calculating adjusted net income (loss) per ADS, basic
and diluted. Please refer to the section titled "Unaudited reconciliation of GAAP and non-GAAP results" for details.
8
Share Repurchase Program
As previously disclosed, theCompany established a share repurchase program in
August 2022 and upsized and extended it in August 2023, under which the
Companymay purchase up to US$2 billion of its Class A ordinary shares and/or
ADSs until August 31, 2024, subject to obtaining anothergeneral unconditional
mandate for the repurchase from the shareholders of the Company at the next
annual general meeting to continueits share repurchase after the expiry of the
existing share repurchase mandate granted by the annual general meeting held
on June 15,2023. As of March 31, 2024, the Company in aggregate has purchased
approximately 76.6 million ADSs (representing approximately 229.8million Class
A ordinary shares) on the New York Stock Exchange with a total consideration
of approximately US$1,129.8 million underthis share repurchase program since
its launch.
Conference Call Information
The Company will hold an earningsconference call at 8:00 A.M. U.S. Eastern
Time on Thursday, May 23, 2024 (8:00 P.M. Beijing/Hong Kong Time on
Thursday,May 23, 2024) to discuss the financial results.
For participants who wish tojoin the conference call using dial-in numbers,
please complete online registration using the link provided below at least 20
minutesprior to the scheduled call start time. Dial-in numbers, passcode and
unique access PIN would be provided upon registering.
Participant Online Registration:
English Line:
https://s1.c-conf.com/diamondpass/10038355-ju0pgc.html
Chinese Simultaneous Interpretation Line (listen-onlymode):
https://s1.c-conf.com/diamondpass/10038354-7dw3bc.html
A replay of the conference call will be accessiblethrough May 30, 2024, by
dialing the following numbers:
United States: +1-855-883-1031
Mainland, China: 400-1209-216
Hong Kong, China: 800-930-639
International: +61-7-3107-6325
Replay PIN (English line): 10038355
Replay PIN (Chinese simultaneous interpretation line): 10038354
A live and archived webcast of the conference callwill also be available at
the Company's investor relations website at
https://investors.ke.com
.
9
Exchange Rate
This announcement contains translationsof certain RMB amounts into U.S.
dollars ("
US$
") at specified rates solely for the convenience of the reader. Unlessotherwise
stated, all translations from RMB to US$ were made at the rate of RMB7.2203 to
US$1.00, the noon buying rate in effect on March 29,2024, in the H.10
statistical release of the Federal Reserve Board. The Company makes no
representation that the RMB or US$ amounts referredcould be converted into US$
or RMB, as the case may be, at any particular rate or at all. For analytical
presentation, all percentagesare calculated using the numbers presented in the
financial statements contained in this announcement.
Non-GAAP Financial Measures
The Company uses adjusted income(loss) from operations, adjusted net income
(loss), adjusted net income (loss) attributable to KE Holdings Inc.'s ordinary
shareholders,adjusted operating margin, adjusted EBITDA and adjusted net
income (loss) per ADS attributable to KE Holdings Inc.'s ordinary
shareholders,each a non-GAAP financial measure, in evaluating its operating
results and for financial and operational decision-making purposes.
Beikebelieves that these non-GAAP financial measures help identify underlying
trends in the Company's business that could otherwisebe distorted by the
effect of certain expenses that the Company includes in its net income (loss).
Beike also believes that these non-GAAPfinancial measures provide useful
information about its results of operations, enhance the overall understanding
of its past performanceand future prospects and allow for greater visibility
with respect to key metrics used by its management in its financial and
operationaldecision-making. A limitation of using these non-GAAP financial
measures is that these non-GAAP financial measures exclude share-basedcompensati
on expenses that have been, and will continue to be for the foreseeable
future, a significant recurring expense in the Company'sbusiness.
The presentation of these non-GAAPfinancial measures should not be considered
in isolation or construed as an alternative to gross profit, net income (loss)
or any othermeasure of performance or as an indicator of its operating
performance. Investors are encouraged to review these non-GAAP financial
measuresand the reconciliation to the most directly comparable GAAP measures.
The non-GAAP financial measures presented here may not be comparableto
similarly titled measures presented by other companies. Other companies may
calculate similarly titled measures differently, limitingtheir usefulness as
comparative measures to the Company's data. Beike encourages investors and
others to review its financial informationin its entirety and not rely on a
single financial measure.
Adjusted income (loss) from operations
is defined as income (loss)from operations, excluding (i) share-based
compensation expenses, (ii) amortization of intangible assets resulting from
acquisitionsand business cooperation agreement.
Adjusted operating margin
is defined as adjusted income (loss) from operations as a percentageof net
revenues.
Adjusted net income (loss)
is defined as net income (loss), excluding (i) share-based compensation
expenses,(ii) amortization of intangible assets resulting from acquisitions
and business cooperation agreement, (iii) changes in fairvalue from long-term
investments, loan receivables measured at fair value and contingent
consideration, (iv) impairment of investments,and (v) tax effects of the above
non-GAAP adjustments.
Adjusted net income (loss) attributable to KE Holdings Inc.'s ordinaryshareholde
rs
is defined as net income (loss) attributable to KE Holdings Inc.'s ordinary
shareholders, excluding (i) share-basedcompensation expenses, (ii)
amortization of intangible assets resulting from acquisitions and business
cooperation agreement, (iii) changesin fair value from long-term investments,
loan receivables measured at fair value and contingent consideration, (iv)
impairmentof investments, (v) tax effects of the above non-GAAP adjustments,
and (vi) effects of non-GAAP adjustments on net income (loss)attributable to
non-controlling interests shareholders.
Adjusted EBITDA
is defined as net income (loss), excluding (i) incometax expense, (ii)
share-based compensation expenses, (iii) amortization of intangible assets,
(iv) depreciation of property,plant and equipment, (v) interest income, net,
(vi) changes in fair value from long-term investments, loan receivables
measuredat fair value and contingent consideration, and (vii) impairment of
investments.
Adjusted net income (loss) per ADS attributableto KE Holdings Inc.'s ordinary
shareholders
is defined as adjusted net income (loss) attributable to KE Holdings
Inc.'sordinary shareholders divided by weighted average number of ADS
outstanding during the periods used in calculating adjusted net income(loss)
per ADS, basic and diluted.
10
Please see the
"Unauditedreconciliation of GAAP and non-GAAP results"
included in this announcement for a full reconciliation of each non-GAAP
measureto its respective comparable GAAP measure.
About KE Holdings Inc.
KE Holdings Inc. is a leadingintegrated online and offline platform for
housing transactions and services. The Company is a pioneer in building
infrastructure andstandards to reinvent how service providers and customers
efficiently navigate and complete housing transactions and services in
China,ranging from existing and new home sales, home rentals, to home
renovation and furnishing, and other services. The Company owns and operates
Lianjia
, China's leading real estate brokerage brand and an integral part of its
Beike
platform. With more than22 years of operating experience through
Lianjia
since its inception in 2001, the Company believes the success and proven
trackrecord of
Lianjia
pave the way for it to build its infrastructure and standards and drive the
rapid and sustainable growth ofBeike.
Safe Harbor Statement
This announcement contains statementsthat may constitute "forward-looking"
statements pursuant to the "safe harbor" provisions of the U.S. PrivateSecuritie
s Litigation Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates," "aims,"
"future," "intends," "plans," "believes," "estimates," "likely to," and
similar statements. Among other things, the quotationsfrom management in this
announcement, as well as Beike's strategic and operational plans, contain
forward-looking statements. Beikemay also make written or oral forward-looking
statements in its periodic reports to the U.S. Securities and Exchange
Commission (the "
SEC
") and The Stock Exchange of Hong Kong Limited (the "
Hong Kong Stock Exchange
"), in its annualreport to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employeesto third parties. Statements that are not historical facts, including
statements about KE Holdings Inc.'s beliefs, plans, and expectations,are
forward-looking statements. Forward-looking statements involve inherent risks
and uncertainties. A number of factors could causeactual results to differ
materially from those contained in any forward-looking statement, including
but not limited to the following:Beike's goals and strategies; Beike's future
business development, financial condition and results of operations;
expectedchanges in the Company's revenues, costs or expenditures; Beike's
ability to empower services and facilitate transactionson
Beike
platform; competition in the industry in which Beike operates; relevant
government policies and regulations relatingto the industry;
11
Beike's ability to protectthe Company's systems and infrastructures from
cyber-attacks; Beike's dependence on the integrity of brokerage brands,
storesand agents on the Company's platform; general economic and business
conditions in China and globally; and assumptions underlyingor related to any
of the foregoing. Further information regarding these and other risks is
included in KE Holdings Inc.'s filingswith the SEC and the Hong Kong Stock
Exchange. All information provided in this announcement is as of the date of
this announcement,and KE Holdings Inc. does not undertake any obligation to
update any forward-looking statement, except as required under applicable law.
For investor and media inquiries, please contact:
In China:
KE Holdings Inc.
Investor Relations Siting Li
E-mail: ir@ke.com
Piacente Financial Communications
Jenny Cai
Tel: +86-10-6508-0677
E-mail: ke@tpg-ir.com
In the United States:
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: ke@tpg-ir.com
Source: KE Holdings Inc.
By Order of the Board of Directors
KE Holdings Inc.
Yongdong Peng
Chairman and Chief Executive Officer
Hong Kong, May 23, 2024
As at the date of this announcement,the board of directors of the Company
comprises Mr. Yongdong Peng, Mr. Yigang Shan, Mr. Wangang Xu and Mr. Tao Xuas
the executive directors, Mr. Jeffrey Zhaohui Li as the non-executive director,
and Ms. Xiaohong Chen, Mr. Hansong Zhuand Mr. Jun Wu as the independent
non-executive directors.
12
KE Holdings Inc.
UNAUDITED CONDENSED CONSOLIDATEDBALANCE SHEETS
(All amounts in thousands,except for share, per share data)
As of As of
December 31, March 31,
2023 2024
RMB RMB US$
ASSETS
Current
assets
Cash and cash 19,634,716 17,845,299 2,471,545
equivalents
Restricted 6,222,745 6,938,013 960,904
cash
Short-term 34,257,958 36,034,979 4,990,787
investments
Short-term financing receivables, net of allowance for credit losses of RMB122,482 1,347,759 1,096,151 151,815
and RMB121,344 as of December 31, 2023 and March 31, 2024, respectively
Accounts receivable and contract assets, net of allowance for credit losses of 3,176,169 3,196,811 442,753
RMB1,681,127 and RMB1,686,209 as of December 31, 2023 and March 31, 2024, respectively
Amounts due from and 419,270 415,842 57,593
prepayments to related parties
Loan receivables 28,030 27,140 3,759
from related parties
Prepayments, receivables 4,666,976 4,989,290 691,008
and other assets
Total current 69,753,623 70,543,525 9,770,164
assets
Non-current
assets
Property, plant and 1,965,098 2,003,296 277,453
equipment, net
Right-of-use 17,617,915 18,295,315 2,533,872
assets
Long-term 23,570,988 20,658,437 2,861,160
investments, net
Intangible 1,067,459 962,680 133,330
assets, net
Goodwill 4,856,807 4,888,626 677,067
Long-term loan receivables 27,000 23,950 3,317
from related parties
Other non-current 1,473,041 1,645,607 227,914
assets
Total non-current 50,578,308 48,477,911 6,714,113
assets
TOTAL 120,331,931 119,021,436 16,484,277
ASSETS
13
KE Holdings Inc.
UNAUDITED CONDENSED CONSOLIDATEDBALANCE SHEETS (Continued)
(All amounts in thousands,except for share, per share data)
As of As of
December 31, March 31,
2023 2024
RMB RMB US$
LIABILITIES
Current liabilities
Accounts payable 6,328,516 5,651,089 782,667
Amounts due to related parties 430,350 368,473 51,033
Employee compensation and welfare payable 8,145,779 5,561,697 770,286
Customer deposits payable 3,900,564 5,129,030 710,362
Income taxes payable 698,568 558,938 77,412
Short-term borrowings 290,450 408,420 56,566
Lease liabilities current portion 9,368,607 10,328,887 1,430,534
Contract liabilities 4,665,201 4,989,855 691,087
Accrued expenses and other current liabilities 5,695,948 8,759,046 1,213,114
Total current liabilities 39,523,983 41,755,435 5,783,061
Non-current liabilities
Deferred tax liabilities 279,341 279,341 38,688
Lease liabilities non-current portion 8,327,113 7,858,493 1,088,389
Other non-current liabilities 389 3,191 442
Total non-current liabilities 8,606,843 8,141,025 1,127,519
TOTAL LIABILITIES 48,130,826 49,896,460 6,910,580
14
KE Holdings Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)
(All amounts in thousands, except for share, per share data)
As of As of
December 31, March 31,
2023 2024
RMB RMB US$
SHAREHOLDERS'
EQUITY KE Holdings
Inc. shareholders'
equity
Ordinary shares (US$0.00002 par value; 25,000,000,000 ordinary shares 475 472 65
authorized, comprising of 24,114,698,720 Class A ordinary shares and
885,301,280 Class B ordinary shares. 3,571,960,220 Class A ordinary
shares issued and 3,443,860,844 Class A ordinary shares outstanding
(1)
as of December 31, 2023; 3,577,284,062
Class A ordinary shares
issued and 3,421,605,845 Class
A ordinary shares outstanding
(1)
as of March 31, 2024; and 151,354,549
and 149,494,964 Class B ordinary
shares issued and outstanding as of
December 31, 2023 and March 31, 2024,
respectively.)
Treasury (866,198 ) (819,971 ) (113,565 )
shares
Additional 77,583,054 73,937,340 10,240,203
paid-in
capital
Statutory 811,107 811,107 112,337
reserves
Accumulated 244,302 305,968 42,376
other
comprehensive
income
Accumulated (5,672,916 ) (5,241,142 ) (725,890 )
deficit
Total KE 72,099,824 68,993,774 9,555,526
Holdings Inc.
shareholders'
equity
Non-controlling 101,281 131,202 18,171
interests
TOTAL 72,201,105 69,124,976 9,573,697
SHAREHOLDERS'
EQUITY
TOTAL 120,331,931 119,021,436 16,484,277
LIABILITIES AND
SHAREHOLDERS'
EQUITY
(1) Excluding the Class A ordinary shares registered in the name of the
depositary bank for future issuance of ADSs upon the exercise or vesting
of awards granted under our share incentive plans and the Class A
ordinary shares repurchased but not cancelled in the form of ADSs.
15
KE Holdings Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(All amounts in thousands, except for share, per share data, ADS and per ADS
data)
For the Three Months Ended
March 31, March 31, March 31,
2023 2024 2024
RMB RMB US$
Net revenues
Existing home transaction services 9,181,199 5,77,030 793,184
New home transaction services 8,404,084 4,916,515 680,929
Home renovation and furnishing 1,407,931 2,408,848 333,622
Home rental services 907,354 2,625,203 363,586
Emerging and other services 377,512 699,718 96,910
Total net revenues 20,278,080 16,377,314 2,268,231
Cost of revenues
Commission-split (5,610,387 ) (3,418,179 ) (473,412 )
Commission and compensation-internal (5,241,936 ) (3,620,949 ) (501,496 )
Cost of home renovation and furnishing (976,919 ) (1,671,718 ) (231,530 )
Cost of home rental services (988,844 ) (2,480,497 ) (343,545 )
Cost related to stores (685,739 ) (685,047 ) (94,878 )
Others (424,457 ) (378,838 ) (52,469 )
Total cost of revenues (13,928,282 ) (12,255,228 ) (1,697,330 )
(1)
Gross profit 6,349,798 4,122,086 570,901
Operating expenses
Sales and marketing expenses (1,293,814 ) (1,623,737 ) (224,885 )
(1)
General and administrative expenses (1,621,249 ) (2,019,195 ) (279,655 )
(1)
Research and development expenses (456,740 ) (467,300 ) (64,720 )
(1)
Total operating expenses (3,371,803 ) (4,110,232 ) (569,260 )
Income from operations 2,977,995 11,854 1,641
Interest income, net 263,491 309,675 42,889
Share of results of equity investees 5,670 (4,086 ) (566 )
Fair value changes in investments, net 43,165 7,765 1,075
Impairment loss for equity investments accounted for using Measurement Alternative (2,099 ) (6,147 ) (851 )
Foreign currency exchange gain (loss) 34,707 (17,748 ) (2,458 )
Other income, net 554,973 537,638 74,462
Income before income tax expense 3,877,902 838,951 116,192
Income tax expense (1,128,156 ) (406,829 ) (56,345 )
Net income 2,749,746 432,122 59,847
16
KE Holdings Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Continued)
(All amounts in thousands, except for share, per share data, ADS and per ADS
data)
For the Three MonthsEnded
March 31, March 31, March 31,
2023 2024 2024
RMB RMB US$
Net income attributable to non-controllinginterests shareholders (2,902 ) (348 ) (48 )
Net income attributable to KE HoldingsInc. 2,746,844 431,774 59,799
Net income attributable to KE HoldingsInc.'s ordinary shareholders 2,746,844 431,774 59,799
Net income 2,749,746 432,122 59,847
Currency translation adjustments (339,700 ) 36,335 5,032
Unrealized gains on available-for-sale investments, net of reclassification 14,625 25,331 3,508
Total comprehensive income 2,424,671 493,788 68,387
Comprehensive income attributable to non-controllinginterests shareholders (2,902 ) (348 ) (48 )
Comprehensive income attributableto KE Holdings Inc. 2,421,769 493,440 68,339
Comprehensive income attributable toKE Holdings Inc.'s ordinary shareholders 2,421,769 493,440 68,339
17
KE Holdings Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Continued)
(All amounts in thousands, except for share, per share data, ADS and per ADS
data)
For the Three Months Ended
March 31, March 31, March 31,
2023 2024 2024
RMB RMB US$
Weighted average number of ordinary shares used in
computing net income per share, basic and diluted
- Basic 3,548,742,572 3,439,606,429 3,439,606,429
- Diluted 3,651,779,206 3,541,861,506 3,541,861,506
Weighted average number of ADS used in computing
net income per ADS, basic and diluted
- Basic 1,182,914,191 1,146,535,476 1,146,535,476
- Diluted 1,217,259,735 1,180,620,502 1,180,620,502
Net income per share attributable to
KE Holdings Inc.'s ordinary shareholders
- Basic 0.77 0.13 0.02
- Diluted 0.75 0.12 0.02
Net income per ADS attributable to
KE Holdings Inc.'s ordinary shareholders
- Basic 2.32 0.38 0.05
- Diluted 2.26 0.37 0.05
(1) Includes share-based compensation expenses as follows:
Cost of revenues 93,996 124,433 17,234
Sales and marketing expenses 31,065 47,303 6,551
General and administrative expenses 533,343 577,134 79,932
Research and development expenses 43,351 44,510 6,165
18
KE Holdings Inc.
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands, except for share, per share data, ADS and per ADS
data)
For the Three Months Ended
March 31, March 31, March 31,
2023 2024 2024
RMB RMB US$
Income from 2,977,995 11,854 1,641
operations
Share-based 701,755 793,380 109,882
compensation expenses
Amortization of intangible assets resulting from 150,133 154,293 21,369
acquisitions and business cooperation agreement
Adjusted income 3,829,883 959,527 132,892
from operations
Net income 2,749,746 432,122 59,847
Share-based 701,755 793,380 109,882
compensation expenses
Amortization of intangible assets resulting from 150,133 154,293 21,369
acquisitions and business cooperation agreement
Changes in fair value from long-term investments, loan (35,910 ) 13,191 1,827
receivables measured at fair value and contingent consideration
Impairment of 2,099 6,147 851
investments
Tax effects on (6,560 ) (6,916 ) (958 )
non-GAAP adjustments
Adjusted 3,561,263 1,392,217 192,818
net income
Net income 2,749,746 432,122 59,847
Income tax 1,128,156 406,829 56,345
expense
Share-based 701,755 793,380 109,882
compensation expenses
Amortization of 152,920 158,506 21,953
intangible assets
Depreciation of property, 189,722 165,169 22,876
plant and equipment
Interest (263,491 ) (309,675 ) (42,889 )
income, net
Changes in fair value from long-term investments, loan (35,910 ) 13,191 1,827
receivables measured at fair value and contingent consideration
Impairment of 2,099 6,147 851
investments
Adjusted 4,624,997 1,665,669 230,692
EBITDA
Net income attributable to KE 2,746,844 431,774 59,799
Holdings Inc.'s ordinary shareholders
Share-based 701,755 793,380 109,882
compensation expenses
Amortization of intangible assets resulting from 150,133 154,293 21,369
acquisitions and business cooperation agreement
Changes in fair value from long-term investments, loan (35,910 ) 13,191 1,827
receivables measured at fair value and contingent consideration
Impairment of 2,099 6,147 851
investments
Tax effects on (6,560 ) (6,916 ) (958 )
non-GAAP adjustments
Effects of non-GAAP adjustments on net income (7 ) (7 ) (1 )
attributable to non-controlling interests shareholders
Adjusted net income attributable to KE 3,558,354 1,391,862 192,769
Holdings Inc.'s ordinary shareholders
19
KE Holdings Inc.
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (Continued)
(All amounts in thousands, except for share, per share data, ADS and per ADS
data)
For the Three Months Ended
March 31, March 31, March 31,
2023 2024 2024
RMB RMB US$
Weighted average number of ADS used in computing
net income per ADS, basic and diluted
- Basic 1,182,914,191 1,146,535,476 1,146,535,476
- Diluted 1,217,259,735 1,180,620,502 1,180,620,502
Weighted average number of ADS used in calculating
adjusted net income per ADS, basic and diluted
- Basic 1,182,914,191 1,146,535,476 1,146,535,476
- Diluted 1,217,259,735 1,180,620,502 1,180,620,502
Net income per ADS attributable to KE Holdings Inc.'s ordinary shareholders
- Basic 2.32 0.38 0.05
- Diluted 2.26 0.37 0.05
Non-GAAP adjustments to net income per ADS
attributable to KE Holdings Inc.'s ordinary shareholders
- Basic 0.69 0.83 0.12
- Diluted 0.66 0.81 0.11
Adjusted net income per ADS attributable to
KE Holdings Inc.'s ordinary shareholders
- Basic 3.01 1.21 0.17
- Diluted 2.92 1.18 0.16
20
KE Holdings Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(All amounts in thousands)
For the Three Months Ended
March 31, March 31, March 31,
2023 2024 2024
RMB RMB US$
Net cash provided by (used in) operating activities 7,627,833 (915,276 ) (126,767 )
Net cash provided by investing activities 5,577,918 1,290,426 178,722
Net cash used in financing activities (331,643 ) (1,445,794 ) (200,239 )
Effect of exchange rate change on cash, cash equivalents and restricted cash (14,012 ) (3,505 ) (484 )
Net increase (decrease) in cash and cash equivalents and restricted cash 12,860,096 (1,074,149 ) (148,768 )
Cash, cash equivalents and restricted cash at the/beginning of the period 25,594,259 25,857,461 3,581,217
Cash, cash equivalents and restricted cash at the end of the period 38,454,355 24,783,312 3,432,449
21
KE Holdings Inc.
UNAUDITED SEGMENT CONTRIBUTION MEASURE
(All amounts in thousands)
For the Three Months Ended
March 31, March 31, March 31,
2023 2024 2024
RMB RMB US$
Existing home transaction services
Net revenues 9,181,199 5,727,030 793,184
Less: Commission and compensation (4,679,479 ) (3,180,925 ) (440,553 )
Contribution 4,501,720 2,546,105 352,631
New home transaction services
Net revenues 8,404,084 4,916,515 680,929
Less: Commission and compensation (6,131,736 ) (3,821,103 ) (529,217 )
Contribution 2,272,348 1,095,412 151,712
Home renovation and furnishing
Net revenues 1,407,931 2,408,848 333,622
Less: Material costs, commission and compensation (976,919 ) (1,671,718 ) (231,530 )
Contribution 431,012 737,130 102,092
Home rental services
Net revenues 907,354 2,625,203 363,586
Less: Property leasing costs, commission and compensation (988,844 ) (2,480,497 ) (343,545 )
Contribution (81,490 ) 144,706 20,041
Emerging and other services
Net revenues 377,512 699,718 96,910
Less: Commission and compensation (41,108 ) (37,100 ) (5,138 )
Contribution 336,404 662,618 91,772
22
{graphic omitted}