KE Holdings Inc. (“Beike” or the “Company”) (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 fourth quarter and fiscal year
ended December 31, 2022.
Business and Financial Highlights for the Fourth Quarter and
Fiscal Year 2022
- Gross transaction value (GTV)1 in 2022 was
RMB2,609.6 billion (US$378.4 billion), a decrease of 32.3%
year-over-year. GTV of existing home transactions was
RMB1,576.5 billion (US$228.6 billion), a decrease of 23.4%
year-over-year. GTV of new home transactions was RMB940.5
billion (US$136.4 billion), a decrease of 41.5% year-over-year.
GTV of home renovation and furnishing was RMB5.4 billion
(US$0.8 billion), compared to RMB213 million in 2021. GTV of
emerging and other services was RMB87.3 billion (US$12.7
billion), a decrease of 53.2% year-over-year. In the fourth
quarter of 2022, GTV was RMB647.0 billion (US$93.8 billion), a
decrease of 11.7% year-over-year. GTV of existing home
transactions was RMB359.9 billion (US$52.2 billion), an
increase of 1.5% year-over-year. GTV of new home
transactions was RMB263.5 billion (US$38.2 billion), a decrease
of 26.1% year-over-year. GTV of home renovation and
furnishing was RMB2.0 billion (US$0.3 billion), compared to
RMB61 million in the same period of 2021. GTV of emerging and
other services was RMB21.7 billion (US$3.1 billion), an
increase of 3.5% year-over-year.
- Net revenues in 2022 were RMB60.7 billion (US$8.8
billion), a decrease of 24.9% year-over-year. In the fourth
quarter of 2022, net revenues were RMB16.7 billion
(US$2.4 billion), a decrease of 5.8% year-over-year.
- Net loss in 2022 was RMB1,397 million (US$203 million),
compared to net loss of RMB525 million in 2021. Adjusted net
income2 in 2022 was RMB2,843million (US$412 million),
compared to adjusted net income of RMB2,294 million in 2021. In
the fourth quarter of 2022, net income was RMB372 million
(US$54 million), compared to net loss of RMB933 million in the same
period of 2021. Adjusted net income was RMB1,547 million
(US$224 million), compared to adjusted net income of RMB42 million
in the same period of 2021.
- Number of stores was 40,516 as of December 31, 2022, a
20.6% decrease from one year ago. Number of active stores3
was 37,446 as of December 31, 2022, a 17.4% decrease from one year
ago.
- Number of agents was 394,020 as of December 31, 2022, a
13.3% decrease from one year ago. Number of active agents4
was 349,681 as of December 31, 2022, a 14.0% decrease from one year
ago.
- Mobile monthly active users (MAU)5 averaged 36.6
million in the fourth quarter of 2022, compared to 37.4 million in
the same period of 2021.
Mr. Stanley Yongdong Peng, Chairman of the Board and Chief
Executive Officer of Beike, commented, “Amid the challenging
housing market in 2022, we underwent a strategic transformation
from high-speed to high-quality growth, which not only enabled us
to continue outperforming the market in GTV growth and cultivate
new growth engines, such as home renovation and furnishing, but
also delivered contribution margin expansion in both our existing
and new home transaction services in 2022.”
“In the fourth quarter, our GTV of existing home transactions
increased year-over-year against the prevailing market decline, as
we drove more value for users through our effective ACN and
fostered the development of high-quality stores and agents by
providing effective tools such as better lead allocation and
stringent ecosystem governance. In the new home market, alongside
our successful “Commission in Advance” program, we actively
promoted sales conversions while increasing the contribution from
our collaborations with state-owned developers. The combined effect
of these initiatives drove strong results without sacrificing
operational and financial safety in exchange for growth. Our home
renovation and furnishing business also outpaced the industry, led
by the strength of our full-service model, strong traffic referrals
from our core business, rapid increase in home furnishing sales,
and solid improvement in the infrastructure that we built to
support quality delivery.”
“The measures that we enacted in 2022 have expanded our revenue
streams, lowered our expenses and reduced our risks, enabling us to
be more efficient, more diversified, and healthier. With active
real estate policy support and signs of market recovery, we are
poised to bring further value to our customers, service providers,
and China’s broader housing industry in 2023. In the meantime, we
will adhere to our long-term approach and a market-neutral view,
striving to transcend the short-term fluctuations and grow
inclusively and sustainably,” concluded Mr. Peng.
Mr. Tao Xu, Executive Director and Chief Financial Officer of
Beike, added, “For the whole year of 2022, the market and our
business experienced a wide range of challenges from the COVID-19
pandemic to spillover risks of developers. Facing the predicament,
we took forceful actions to prioritize cost management and
efficiency optimization, maximizing the value of our platform to
improve the retention and acquisition of high-quality service
providers. We achieved net revenues of RMB60.7 billion, down by
24.9% year-over-year, a smaller contraction compared with the
decline of the market. Moreover, we reported notable improvements
in multiple financial metrics, including contribution margin for
both existing and new home transaction services, gross margin and
adjusted net income, as well as a stronger free cash flow,
demonstrating our successful shift of focus from high-speed to
high-quality growth, and further strengthening our leading position
in the market. As we look ahead into 2023, the advancement of our
“One body, two wings” strategy will drive more diversified
development and have higher requirements for operational stability
and profitability. As such, with the optimized costs and expenses
structure that we built in 2022, we will aim to maintain a dynamic
balance among efficiency, risk management and scale expansion, to
support our sustained business growth and improvement of service
quality.”
Fourth Quarter 2022 Financial Results
Net Revenues
Net revenues decreased by 5.8% to RMB16.7 billion (US$2.4
billion) in the fourth quarter of 2022 from RMB17.8 billion in the
same period of 2021, with total GTV declining by 11.7% to RMB647.0
billion (US$93.8 billion) in the fourth quarter of 2022 from
RMB732.4 billion in the same period of 2021, which was primarily
attributable to the decline in GTV of existing home transactions in
top-tier cities and new home transactions, due to the disruption to
China’s housing market recovery by COVID-19 flare-ups and soft
market sentiment towards new home sales. The decrease of net
revenues was partially offset by the increase of net revenues from
home renovation and furnishing.
- Net revenues from existing home transaction services
decreased by 11.8% to RMB5.3 billion (US$0.8 billion) in the fourth
quarter of 2022, compared to RMB6.0 billion in the same period of
2021, primarily due to the decrease of commission revenue which was
partially offset by the increase of the revenues derived from
platform service, franchise service and other value-added services.
GTV of existing home transactions increased by 1.5% to RMB359.9
billion (US$52.2 billion) in the fourth quarter of 2022 from
RMB354.6 billion in the same period of 2021, primarily attributable
to the increase of GTV served by connected agents on the Company’s
platform, which was partially offset by the decrease of GTV served
by Lianjia brand year-over-year. The different trend between net
revenues and GTV of existing home transaction services 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) commission revenue decreased by 16.6% to RMB4.4
billion (US$0.6 billion) in the fourth quarter of 2022 from RMB5.3
billion in the same period of 2021, primarily due to a decrease in
GTV of existing home transactions served by Lianjia stores of 17.2%
to RMB161.4 billion (US$23.4 billion) in the fourth quarter of 2022
from RMB194.9 billion in the same period of 2021, resulting from
the surge of COVID-19 cases especially in top-tier cities during
the fourth quarter of 2022; and (ii) revenues derived from
platform service, franchise service and other value-added
services, which are mostly charged to connected stores and
agents on the Company’s platform, increased by 25.2% to RMB0.9
billion (US$0.1 billion) in the fourth quarter of 2022, from RMB0.7
billion in the same period of 2021, mainly due to a 24.3% increase
of GTV of existing home transactions served by connected agents on
the Company’s platform to RMB198.5 billion (US$28.8 billion) in the
fourth quarter of 2022 from RMB159.7 billion in the same period of
2021, which was primarily due to recovery for existing home sales
market in certain second-tier cities along with more supportive
policies, and a relatively low base in the same period of
2021.
- Net revenues from new home transaction services
decreased by 26.8% to RMB8.3 billion (US$1.2 billion) in the fourth
quarter of 2022 from RMB11.3 billion in the same period of 2021,
primarily due to the decrease of GTV of new home transactions of
26.1% to RMB263.5 billion (US$38.2 billion) in the fourth quarter
of 2022 from RMB356.8 billion in the same period of 2021. 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 28.4% to RMB212.3 billion (US$30.8 billion), compared to
RMB296.4 billion in the same period of 2021, while the GTV of new
home transactions served by Lianjia brand decreased by 15.1% to
RMB51.3 billion (US$7.4 billion) in the fourth quarter of 2022,
compared to RMB60.4 billion in the same period of 2021.
- Net revenues from home renovation and furnishing were
RMB2.1 billion (US$0.3 billion) in the fourth quarter of 2022,
compared to RMB58 million in the same period of 2021, primarily
because the Company completed the acquisition (“Shengdu
Acquisition”) of Shengdu Home Renovation Co., Ltd.
(“Shengdu”), a full-service home renovation service provider
in China, and began to consolidate its financial results during the
second quarter of 2022 and the organic growth of the GTV for home
renovation and furnishing business.
- Net revenues from emerging and other services increased
by 152.0% to RMB1.1 billion (US$0.2 billion) in the fourth quarter
of 2022 from RMB0.4 billion in the same period of 2021, primarily
attributable to the increase of net revenues from rental property
management services and financial services.
Cost of Revenues
Total cost of revenues decreased by 14.9% to RMB12.7
billion (US$1.8 billion) in the fourth quarter of 2022 from RMB14.9
billion in the same period of 2021.
- Commission - split. The Company’s cost of revenues for
commissions to connected agents and other sales channels was RMB6.0
billion (US$0.9 billion) in the fourth quarter of 2022, compared to
RMB7.7 billion in the same period of 2021, primarily due to the
decrease in GTV of new home transactions completed through
connected agents and other sales channels in the fourth quarter of
2022 compared with the same period of 2021.
- Commission and compensation - internal. The Company’s
cost of revenues for internal commission and compensation was
RMB4.2 billion (US$0.6 billion) in the fourth quarter of 2022,
compared to RMB5.4 billion in the same period of 2021, primarily
due to the decrease in the fixed compensation costs of Lianjia
agents, dedicated sales team with the expertise on new home
transaction services and other front line operation staff along
with the drop in the headcount, and the decrease in variable
commission as a result of the decreased GTV of existing home
transactions and new home transactions completed through Lianjia
agents.
- Cost of home renovation and furnishing. The Company’s
cost of revenues for home renovation and furnishing was RMB1.5
billion (US$0.2 billion) in the fourth quarter of 2022, compared to
RMB61 million in the same period of 2021, which was primarily
attributable to Shengdu Acquisition and the organic increase of net
revenues from home renovation and furnishing.
- Cost related to stores. The Company’s cost related to
stores decreased by 26.1% to RMB0.8 billion (US$0.1 billion) in the
fourth quarter of 2022 compared to RMB1.0 billion in the same
period of 2021, mainly due to the decrease in the number of Lianjia
stores along with market downtrend in the fourth quarter of 2022
compared to the same period of 2021.
- Other costs. The Company’s other costs decreased to
RMB0.2 billion (US$23 million) in the fourth quarter of 2022 from
RMB0.6 billion in the same period of 2021, mainly due to a decrease
of business taxes and surcharges along with the decrease of net
revenues, the decreased funding costs and the decreased human
resources related costs.
Gross Profit
Gross profit increased by 40.4% to RMB4.1 billion (US$0.6
billion) in the fourth quarter of 2022 from RMB2.9 billion in the
same period of 2021. Gross margin was 24.4% in the fourth quarter
of 2022, compared to 16.4% in the same period of 2021. The increase
in gross margin was primarily due to: a) a shift of revenue mix
towards the existing home transaction services and home renovation
and furnishing with relatively higher contribution margins than new
home transaction services; b) a higher contribution margin for
existing home transaction services led by the decreased fixed
compensation costs for Lianjia agents along with the decreased
number of Lianjia agents; c) 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; and d) a relatively lower percentage of costs related to
stores and other costs of net revenues in the fourth quarter of
2022 compared to the same period of 2021.
Income (Loss) from
Operations
Total operating expenses decreased by 9.6% to RMB3.7
billion (US$0.5 billion) in the fourth quarter of 2022 from RMB4.1
billion in the same period of 2021.
- General and administrative expenses decreased by 18.6%
to RMB1,792 million (US$260 million) in the fourth quarter of 2022
from RMB2,202 million in the same period of 2021, mainly due to the
decrease of provision for credit loss along with the decreased
accounts receivable balance and the decrease of personnel costs and
overheads along with the reduction of the headcount, which was
partially offset by the increase of share-based compensation in the
fourth quarter of 2022 compared to the same period of 2021.
- Sales and marketing expenses were RMB1,333 million
(US$193 million) in the fourth quarter of 2022, compared to RMB809
million in the same period of 2021, mainly due to the increase in
sales and marketing expenses for home renovation and furnishing
services as the financial results of Shengdu were consolidated
since the second quarter of 2022.
- Research and development expenses decreased by 31.1% to
RMB509 million (US$74 million) in the fourth quarter of 2022 from
RMB738 million in the same period of 2021, mainly due to the
decrease of personnel costs and share-based compensation as a
result of decreased headcount in research and development personnel
in the fourth quarter of 2022 compared to the same period of
2021.
Income from operations was RMB387 million (US$56 million)
in the fourth quarter of 2022, compared to loss from operations of
RMB1,184 million in the same period of 2021. Operating
margin was 2.3% in the fourth quarter of 2022, compared to
negative 6.7% in the same period of 2021, primarily due to: a) a
relatively higher gross profit margin, and b) improved operating
leverage, primarily due to personnel severance in the first half of
2022 and optimized resource utilization in the fourth quarter of
2022 compared to the same period of 2021.
Adjusted income from operations6 was RMB1,339 million
(US$194 million) in the fourth quarter of 2022, compared to
adjusted loss from operations of RMB398 million in the same period
of 2021. Adjusted operating margin7 was 8.0% in the fourth
quarter of 2022, compared to negative 2.2% in the same period of
2021. Adjusted EBITDA8 was RMB2,164 million (US$314 million)
in the fourth quarter of 2022, compared to RMB484 million in the
same period of 2021.
Net Income (Loss)
Net income was RMB372 million (US$54 million) in the
fourth quarter of 2022, compared to net loss of RMB933 million in
the same period of 2021.
Adjusted net income was RMB1,547 million (US$224 million)
in the fourth quarter of 2022, compared to RMB42 million in the
same period of 2021.
Net Income (Loss) attributable to KE
Holdings Inc.’s ordinary shareholders
Net income attributable to KE Holdings Inc.’s ordinary
shareholders was RMB377 million (US$55 million) in the fourth
quarter of 2022, compared to net loss attributable to KE Holdings
Inc.’s ordinary shareholders of RMB930 million in the same period
of 2021.
Adjusted net income attributable to KE Holdings Inc.’s
ordinary shareholders9 was RMB1,552 million (US$225 million) in
the fourth quarter of 2022, compared to RMB45 million in the same
period of 2021.
Net Income (Loss) per
ADS
Basic and diluted net income per ADS attributable to KE
Holdings Inc.’s ordinary shareholders10 were RMB0.32 (US$0.05)
and RMB0.31 (US$0.04) in the fourth quarter of 2022, respectively,
compared to RMB0.78 for both basic and diluted net loss per ADS
attributable to KE Holdings Inc.’s ordinary shareholders in the
same period of 2021.
Adjusted basic and diluted net income per ADS attributable to
KE Holdings Inc.’s ordinary shareholders11 were RMB1.31
(US$0.19) and RMB1.29 (US$0.18) in the fourth quarter of 2022,
respectively, compared to RMB0.04 for both adjusted basic and
diluted net income per ADS attributable to KE Holdings Inc.’s
ordinary shareholders in the same period of 2021.
Cash, Cash Equivalents, Restricted Cash
and Short-Term Investments
As of December 31, 2022, the combined balance of the Company’s
cash, cash equivalents, restricted cash and short-term investments
amounted to RMB61.1 billion (US$8.9 billion).
Fiscal Year 2022 Financial Results
Net Revenues
Net revenues decreased by 24.9% to RMB60.7 billion
(US$8.8 billion) in 2022, compared to RMB80.8 billion in 2021. The
decrease was primarily attributable to the decline in the total GTV
by 32.3% to RMB2,609.6 billion (US$378.4 billion) in 2022 from
RMB3,853.5 billion in 2021 due to soft market sentiment and the
disruption of the resurgences to the Company’s operations caused by
COVID-19 in 2022.
- Net revenues from existing home transaction services
decreased by 24.5% to RMB24.1 billion (US$3.5 billion) in 2022,
compared to RMB31.9 billion in 2021, primarily due to a 23.4%
decrease in GTV of existing home transactions to RMB1,576.5 billion
(US$228.6 billion) in 2022 from RMB2,058.2 billion in 2021. Among
that, (i) commission revenue decreased by 27.3% to RMB20.6
billion (US$3.0 billion) in 2022 from RMB28.4 billion in 2021,
primarily due to a decrease in GTV of existing home transactions
served by Lianjia stores of 27.9% to RMB746.4 billion (US$108.2
billion) in 2022 from RMB1,034.8 billion in 2021; and (ii)
revenues derived from platform service, franchise service and other
value-added services decreased by 2.5% to RMB3.5 billion
(US$0.5 billion) in 2022 from RMB3.6 billion in 2021, as the GTV of
existing home transactions served by connected agents on the
Company’s platform decreased by 18.9% to RMB830.1 billion (US$120.3
billion) in 2022 from RMB1,023.4 billion in 2021, which was
partially offset by a moderate increase in existing home
transaction commission rate charged by connected stores and the
increased penetration level of value-added services.
- Net revenues from new home transaction services
decreased by 38.3% to RMB28.7 billion (US$4.2 billion) in 2022 from
RMB46.5 billion in 2021, primarily due to the decrease of GTV of
new home transactions of 41.5% to RMB940.5 billion (US$136.4
billion) in 2022 from RMB1,608.6 billion in 2021. 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
42.3% year-over-year to RMB770.5 billion (US$111.7 billion) from
RMB1,334.6 billion in 2021, while the GTV of new home transactions
served by Lianjia brand decreased by 38.0% year-over-year to
RMB170.0 billion (US$24.6 billion) from RMB274.1 billion in
2021.
- Net revenues from home renovation and furnishing were
RMB5.0 billion (US$0.7 billion) in 2022, compared to RMB197 million
in 2021, primarily because the Company completed the acquisition of
Shengdu, and began to consolidate its financial results during the
second quarter of 2022 and the organic growth of the GTV for home
renovation and furnishing business.
- Net revenues from emerging and other services increased
by 33.4% to RMB2.8 billion (US$0.4 billion) in 2022 from RMB2.1
billion in 2021, primarily attributable to the increase of net
revenues from rental property management services which was
partially offset by the decrease of net revenues from financial
services.
Cost of Revenues
Total cost of revenues decreased by 27.8% to RMB46.9
billion (US$6.8 billion) in 2022 from RMB64.9 billion in 2021,
primarily due to the decrease in both split commissions to
connected agents and other sales channels, and internal commission
and compensation.
- Commission - split. The Company’s cost of revenues for
commissions to connected agents and other sales channels decreased
by 35.2% to RMB20.5 billion (US$3.0 billion) in 2022 from RMB31.6
billion in 2021, primarily due to the decrease in the GTV of new
home transactions completed through connected agents and other
sales channels in 2022 compared to 2021.
- Commission and compensation - internal. The Company’s
cost of revenues for internal commission and compensation decreased
by 32.1% to RMB17.9 billion (US$2.6 billion) in 2022 from RMB26.3
billion in 2021, primarily due to the decrease in the fixed
compensation costs of Lianjia agents, dedicated sales team with the
expertise on new home transaction services and other front line
operation staff along with the drop in the headcount, and the
decrease in variable commission as a result of the decreased GTV of
existing home transactions completed through Lianjia agents and new
home transactions completed through Lianjia agents and dedicated
sales team with the expertise on new home transaction
services.
- Cost of home renovation and furnishing. The Company’s
cost of revenues for home renovation and furnishing was RMB3.6
billion (US$0.5 billion) in 2022, compared to RMB0.2 billion in
2021, which was primarily attributable to Shengdu Acquisition and
the organic increase of net revenues from home renovation and
furnishing.
- Cost related to stores. The Company’s cost related to
stores decreased by 12.2% to RMB3.3 billion (US$0.5 billion) in
2022 compared to RMB3.8 billion in 2021, mainly due to the decrease
in the number of Lianjia stores along with market downtrend in 2022
compared to 2021.
- Other costs. The Company’s other costs decreased by
45.6% to RMB1.6 billion (US$0.2 billion) in 2022 from RMB3.0
billion in 2021, mainly due to a decrease of business taxes and
surcharges along with the decrease of net revenues, the decreased
funding costs and provisions related to financial services and the
decreased offline activities costs.
Gross Profit
Gross profit decreased by 12.9% to RMB13.8 billion
(US$2.0 billion) in 2022 from RMB15.8 billion in 2021. Gross margin
was 22.7% in 2022, compared to 19.6% in 2021. The increase in gross
margin was primarily due to: a) a shift of revenue mix towards the
existing home transaction services and home renovation and
furnishing with relatively higher contribution margins than new
home transaction services, b) a higher contribution margin for
existing home transaction services led by the decreased fixed
compensation costs for Lianjia agents along with the decreased
number of Lianjia agents, and c) 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.
Income (Loss) from
Operations
Total operating expenses decreased by 14.9% to RMB14.6
billion (US$2.1 billion) in 2022 from RMB17.2 billion in 2021.
- General and administrative expenses decreased by 17.7%
to RMB7.3 billion (US$1.1 billion) in 2022 from RMB8.9 billion in
2021, mainly due to the decrease of provision for credit loss along
with the decreased accounts receivable balance and the decrease of
personnel costs and overheads along with the reduction of the
headcount, which was partially offset by the increase of
share-based compensation in 2022 compared to 2021.
- Sales and marketing expenses were RMB4.6 billion (US$0.7
billion) in 2022, compared to RMB4.3 billion in 2021, mainly due to
the increase in sales and marketing expenses for home renovation
and furnishing services as the financial results of Shengdu were
consolidated since the second quarter of 2022, which was partially
offset by the decrease of the brand advertising and promotional
marketing expenses and personnel costs for housing transaction
services.
- Research and development expenses decreased by 20.3% to
RMB2.5 billion (US$0.4 billion) in 2022 from RMB3.2 billion in
2021, mainly due to the decrease of personnel costs and share-based
compensation as a result of decreased headcount in research and
development personnel in 2022 compared to 2021.
Loss from operations was RMB833 million (US$121 million)
in 2022, compared to loss from operations of RMB1.4 billion in
2021. Operating margin was negative 1.4% in 2022, compared
to negative 1.7% in 2021, primarily due to a relatively higher
gross profit margin, which was partially offset by the increased
spending in home renovation and furnishing and emerging and other
services in 2022 compared to 2021.
Adjusted income from operations was RMB2.3 billion
(US$0.3 billion) in 2022, compared to RMB1.4 billion in 2021.
Adjusted operating margin was 3.8% in 2022, compared to 1.7%
in 2021. Adjusted EBITDA was RMB4.7 billion (US$0.7 billion)
in 2022, compared to RMB4.5 billion in 2021.
Net Income (Loss)
Net loss was RMB1,397 million (US$203 million) in 2022,
compared to RMB525 million in 2021.
Adjusted net income was RMB2,843 million (US$412 million)
in 2022, compared to RMB2,294 million in 2021.
Net Income (Loss) attributable to KE
Holdings Inc.’s ordinary shareholders
Net loss attributable to KE Holdings Inc.’s ordinary
shareholders was RMB1,386 million (US$201 million) in 2022,
compared to RMB524 million in 2021.
Adjusted net income attributable to KE Holdings Inc.’s
ordinary shareholders was RMB2,854 million (US$414 million) in
2022, compared to RMB2,295 million in 2021.
Net Income (Loss) per
ADS
Basic and diluted net loss per ADS attributable to KE
Holdings Inc.’s ordinary shareholders were both RMB1.17
(US$0.17) in 2022, compared to RMB0.44 for both basic and diluted
net loss per ADS attributable to KE Holdings Inc.’s ordinary
shareholders in 2021.
Adjusted basic and diluted net income per ADS attributable to
KE Holdings Inc.’s ordinary shareholders were RMB2.40 (US$0.35)
and RMB2.38 (US$0.34) in 2022, respectively, compared to adjusted
basic and diluted net income per ADS attributable to KE Holdings
Inc.’s ordinary shareholders of RMB1.94 and RMB1.92 in 2021,
respectively.
Business Outlook
For the first quarter of 2023, the Company expects total net
revenues to be between RMB18.0 billion (US$2.6 billion) and RMB18.5
billion (US$2.7 billion), representing an increase of approximately
43.4% to 47.4% 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’s operations. Therefore, the
Company’s ongoing and preliminary view are contingent on the
business situation and market condition.
Share Repurchase Program
As 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 December 31, 2022, the Company in aggregate
purchased approximately 14.2 million ADSs in the open market at a
total consideration of approximately US$191 million pursuant to the
share repurchase program, certain of which were settled in early
January 2023.
Conference Call Information
The Company will hold an earnings conference call at 8:00 A.M.
U.S. Eastern Time on Thursday, March 16, 2023 (8:00 P.M.
Beijing/Hong Kong Time on Thursday, March 16, 2023) to discuss the
financial results.
For participants who wish to join the conference call using
dial-in numbers, please complete online registration using the link
provided below at least 20 minutes prior to the scheduled call
start time. Dial-in numbers, passcode and unique access PIN would
be provided upon registering.
Participant Online Registration:
https://s1.c-conf.com/diamondpass/10029216-ft4w0.html
A replay of the conference call will be accessible through March
23, 2023, by dialing the following numbers:
United States:
+1-855-883-1031
Mainland, China:
400-1209-216
Hong Kong, China:
800-930-639
International:
+61-7-3107-6325
Replay PIN:
10029216
A live and archived webcast of the conference call will also be
available at the Company’s investor relations website at
https://investors.ke.com.
Exchange Rate
This press release contains translations of certain RMB amounts
into U.S. dollars (“US$”) at specified rates solely for the
convenience of the reader. Unless otherwise stated, all
translations from RMB to US$ were made at the rate of RMB6.8972 to
US$1.00, the noon buying rate in effect on December 30, 2022, in
the H.10 statistical release of the Federal Reserve Board. The
Company makes no representation that the RMB or US$ amounts
referred could be converted into US$ or RMB, as the case may be, at
any particular rate or at all. For analytical presentation, all
percentages are calculated using the numbers presented in the
financial statements contained in this earnings release.
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. Beike
believes that these non-GAAP financial measures help identify
underlying trends in the Company’s business that could otherwise be
distorted by the effect of certain expenses that the Company
includes in its net income (loss). Beike also believes that these
non-GAAP financial measures provide useful information about its
results of operations, enhance the overall understanding of its
past performance and future prospects and allow for greater
visibility with respect to key metrics used by its management in
its financial and operational decision-making. A limitation of
using these non-GAAP financial measures is that these non-GAAP
financial measures exclude share-based compensation expenses that
have been, and will continue to be for the foreseeable future, a
significant recurring expense in the Company’s business.
The presentation of these non-GAAP financial measures should not
be considered in isolation or construed as an alternative to gross
profit, net income (loss) or any other measure of performance or as
an indicator of its operating performance. Investors are encouraged
to review these non-GAAP financial measures and the reconciliation
to the most directly comparable GAAP measures. The non-GAAP
financial measures presented here may not be comparable to
similarly titled measures presented by other companies. Other
companies may calculate similarly titled measures differently,
limiting their usefulness as comparative measures to the Company’s
data. Beike encourages investors and others to review its financial
information in 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 acquisitions and business cooperation agreement, and
(iii) impairment of goodwill, intangible assets and other
long-lived assets. Adjusted operating margin is defined as
adjusted income (loss) from operations as a percentage of 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 fair value
from long term investments, loan receivables measured at fair value
and contingent consideration, (iv) impairment of goodwill,
intangible assets and other long-lived assets, (v) impairment of
investments, and (vi) tax effects of the above non-GAAP
adjustments. Adjusted net income (loss) attributable to KE
Holdings Inc.’s ordinary shareholders is 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 goodwill, intangible assets and
other long-lived assets, (v) impairment of investments, (vi) tax
effects of the above non-GAAP adjustments, and (vii) 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) income tax expense
(benefit), (ii) share-based compensation expenses, (iii)
amortization of intangible assets, (iv) depreciation of property
and equipment, (v) interest income, net, (vi) changes in fair value
from long term investments, loan receivables measured at fair value
and contingent consideration, (vii) impairment of goodwill,
intangible assets and other long-lived assets, and (viii)
impairment of investments. Adjusted net income (loss) per ADS
attributable to KE Holdings Inc.’s ordinary shareholders 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 see the “Unaudited reconciliation of GAAP and non-GAAP
results” included in this press release for a full
reconciliation of each non-GAAP measure to its respective
comparable GAAP measure.
About KE Holdings Inc.
KE Holdings Inc. is a leading integrated online and offline
platform for housing transactions and services. The Company is a
pioneer in building infrastructure and standards to reinvent how
service providers and housing customers efficiently navigate and
complete housing transactions 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 than 21 years of operating experience
through Lianjia since its inception in 2001, the Company believes
the success and proven track record of Lianjia pave the way for it
to build its infrastructure and standards and drive the rapid and
sustainable growth of Beike.
Safe Harbor Statement
This press release contains statements that may constitute
“forward-looking” statements pursuant to the “safe harbor”
provisions of the U.S. Private Securities 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 business outlook
and quotations from management in this press release, as well as
Beike’s strategic and operational plans, contain forward-looking
statements. Beike may 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
annual report to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to 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 cause actual 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; expected changes in
the Company’s revenues, costs or expenditures; Beike’s ability to
empower services and facilitate transactions on Beike platform;
competition in the industry in which Beike operates; relevant
government policies and regulations relating to the industry;
Beike’s ability to protect the Company’s systems and
infrastructures from cyber-attacks; Beike’s dependence on the
integrity of brokerage brands, stores and agents on the Company’s
platform; general economic and business conditions in China and
globally; and assumptions underlying or related to any of the
foregoing. Further information regarding these and other risks is
included in KE Holdings Inc.’s filings with the SEC and the Hong
Kong Stock Exchange. All information provided in this press release
is as of the date of this press release, and KE Holdings Inc. does
not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
KE Holdings Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (All
amounts in thousands, except for share, per share data)
As of
December 31,
As of
December 31,
2021
2022
RMB
RMB
US$
ASSETS
Current assets
Cash and cash equivalents
20,446,104
19,413,202
2,814,650
Restricted cash
6,286,105
6,181,057
896,169
Short-term investments
29,402,661
35,485,908
5,144,973
Short-term financing receivables, net of
allowance for credit losses of RMB131,558 and RMB139,427 as of
December 31, 2021 and 2022, respectively
702,452
667,224
96,738
Accounts receivable and contract assets,
net of allowance for credit losses of RMB2,151,271, and
RMB2,088,478 as of December 31, 2021 and 2022, respectively
9,324,952
4,163,022
603,581
Amounts due from and prepayments to
related parties
591,342
405,956
58,858
Loan receivables from related parties
42,788
50,463
7,316
Prepayments, receivables and other
assets
3,129,950
4,057,843
588,333
Total current assets
69,926,354
70,424,675
10,210,618
Non-current assets
Property and equipment, net
1,971,707
2,036,553
295,272
Right-of-use assets
7,244,211
11,284,070
1,636,036
Long-term financing receivables, net of
allowance for credit losses of RMB204 and nil as of December 31,
2021 and 2022, respectively
10,039
-
-
Long-term investments, net
17,038,171
17,925,653
2,598,975
Intangible assets, net
1,141,273
1,686,976
244,589
Goodwill
1,805,689
4,934,235
715,397
Long-term loan receivables from related
parties
-
22,934
3,325
Other non-current assets
1,181,421
1,032,251
149,663
Total non-current assets
30,392,511
38,922,672
5,643,257
TOTAL ASSETS
100,318,865
109,347,347
15,853,875
KE Holdings Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)
(All amounts in thousands, except for share, per share
data)
As of
December 31,
As of
December 31,
2021
2022
RMB
RMB
US$
LIABILITIES
Current liabilities
Accounts payable
6,008,765
5,843,321
847,202
Amounts due to related parties
584,078
425,685
61,719
Employee compensation and welfare
payable
9,834,247
9,365,512
1,357,872
Customer deposits payable
4,181,337
4,194,828
608,193
Income taxes payable
567,589
542,290
78,625
Short-term borrowings
260,000
619,000
89,747
Lease liabilities current portion
2,752,795
4,972,345
720,922
Short-term funding debts
194,200
-
-
Contract liabilities
1,101,929
3,260,269
472,695
Accrued expenses and other current
liabilities
3,451,197
4,118,068
597,063
Total current liabilities
28,936,137
33,341,318
4,834,038
Non-current liabilities
Deferred tax liabilities
22,920
351,186
50,917
Lease liabilities non-current portion
4,302,934
6,599,930
956,900
Other non-current liabilities
1,381
475
69
Total non-current liabilities
4,327,235
6,951,591
1,007,886
TOTAL LIABILITIES
33,263,372
40,292,909
5,841,924
KE Holdings Inc.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)
(All amounts in thousands, except for share, per share
data)
As of
December 31,
As of
December 31,
2021
2022
RMB
RMB
US$
SHAREHOLDERS’ EQUITY
KE Holdings Inc. shareholders’
equity
Ordinary Shares (US$0.00002 par value;
25,000,000,000 ordinary shares authorized, comprising of
24,114,698,720 Class A ordinary shares, 885,301,280 Class B
ordinary shares. 2,705,911,235 and 3,601,547,279 Class A ordinary
shares issued and outstanding as of December 31, 2021 and 2022,
respectively; and 885,301,280 and 156,426,896 Class B ordinary
shares issued and outstanding as of December 31, 2021 and 2022,
respectively)
489
487
71
Treasury shares
-
(225,329)
(32,670)
Additional paid-in capital
78,972,169
80,302,956
11,642,834
Statutory reserves
483,887
660,817
95,809
Accumulated other comprehensive loss
(2,639,723)
(412,721)
(59,839)
Accumulated deficit
(9,842,846)
(11,405,850)
(1,653,693)
Total KE Holdings Inc. shareholders'
equity
66,973,976
68,920,360
9,992,512
Non-controlling interests
81,517
134,078
19,439
TOTAL SHAREHOLDERS' EQUITY
67,055,493
69,054,438
10,011,951
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
100,318,865
109,347,347
15,853,875
KE Holdings Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(All amounts in thousands, except for share, per share data, ADS
and per ADS data)
For the Three Months
Ended
For the Year Ended
December 31,
2021
December 31,
2022
December 31,
2022
December 31,
2021
December 31,
2022
December 31,
2022
RMB
RMB
US$
RMB
RMB
US$
Net revenues
Existing home transaction services
5,985,303
5,280,757
765,638
31,947,953
24,123,703
3,497,608
New home transaction services
11,309,748
8,281,269
1,200,671
46,472,378
28,650,374
4,153,914
Home renovation and furnishing
57,671
2,093,811
303,574
197,452
5,046,627
731,692
Emerging and other services
432,999
1,091,303
158,224
2,134,656
2,848,075
412,932
Total net revenues
17,785,721
16,747,140
2,428,107
80,752,439
60,668,779
8,796,146
Cost of revenues
Commission-split
(7,740,832)
(6,030,785)
(874,382)
(31,633,827)
(20,499,632)
(2,972,167)
Commission and compensation-internal
(5,391,756)
(4,231,943)
(613,574)
(26,303,507)
(17,853,694)
(2,588,542)
Cost of home renovation and furnishing
(61,146)
(1,467,237)
(212,729)
(195,869)
(3,562,068)
(516,451)
Cost related to stores
(1,035,183)
(764,650)
(110,864)
(3,809,757)
(3,346,436)
(485,188)
Others
(641,542)
(159,567)
(23,134)
(2,990,064)
(1,626,202)
(235,776)
Total cost of revenues(1)
(14,870,459)
(12,654,182)
(1,834,683)
(64,933,024)
(46,888,032)
(6,798,124)
Gross profit
2,915,262
4,092,958
593,424
15,819,415
13,780,747
1,998,022
Operating expenses
Sales and marketing expenses(1)
(809,090)
(1,332,765)
(193,233)
(4,309,116)
(4,573,382)
(663,078)
General and administrative expenses(1)
(2,202,486)
(1,792,326)
(259,863)
(8,924,470)
(7,346,665)
(1,065,167)
Research and development expenses(1)
(738,118)
(508,663)
(73,749)
(3,193,988)
(2,545,549)
(369,070)
Impairment of goodwill, intangible assets
and other long-lived assets
(349,639)
(71,813)
(10,412)
(746,705)
(148,057)
(21,466)
Total operating expenses
(4,099,333)
(3,705,567)
(537,257)
(17,174,279)
(14,613,653)
(2,118,781)
Income (loss) from operations
(1,184,071)
387,391
56,167
(1,354,864)
(832,906)
(120,759)
Interest income, net
113,086
255,314
37,017
354,567
743,484
107,795
Share of results of equity investees
(8,286)
(69)
(10)
36,606
44,588
6,465
Fair value changes in investments, net
121,084
(133,728)
(19,389)
564,804
(512,225)
(74,266)
Impairment loss for equity investments
accounted for using Measurement Alternative
(183,789)
(100,004)
(14,499)
(183,789)
(591,876)
(85,814)
Foreign currency exchange gain (loss)
1,332
65,331
9,472
20,988
(127,362)
(18,466)
Other income, net
476,849
528,454
76,619
1,702,414
1,568,587
227,424
Income (loss) before income tax
expense
(663,795)
1,002,689
145,377
1,140,726
292,290
42,379
Income tax expense
(269,469)
(630,779)
(91,454)
(1,665,492)
(1,689,574)
(244,965)
Net income (loss)
(933,264)
371,910
53,923
(524,766)
(1,397,284)
(202,586)
KE Holdings Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Continued) (All amounts in thousands, except for share, per
share data, ADS and per ADS data)
For the Three Months
Ended
For the Year Ended
December 31,
2021
December 31,
2022
December 31,
2022
December 31,
2021
December 31,
2022
December 31,
2022
RMB
RMB
US$
RMB
RMB
US$
Net loss attributable to non-controlling
interests shareholders
3,582
5,122
743
637
11,210
1,625
Net income (loss) attributable to KE
Holdings Inc.
(929,682)
377,032
54,666
(524,129)
(1,386,074)
(200,961)
Net income (loss) attributable to KE
Holdings Inc.’s ordinary shareholders
(929,682)
377,032
54,666
(524,129)
(1,386,074)
(200,961)
Net income (loss)
(933,264)
371,910
53,923
(524,766)
(1,397,284)
(202,586)
Currency translation adjustments
(561,546)
(479,196)
(69,477)
(841,214)
2,602,071
377,265
Unrealized gains (losses) on
available-for-sale investments, net of reclassification
42,864
121,961
17,683
35,578
(375,069)
(54,380)
Total comprehensive income
(loss)
(1,451,946)
14,675
2,129
(1,330,402)
829,718
120,299
Comprehensive loss attributable to
non-controlling interests shareholders
3,582
5,122
743
637
11,210
1,625
Comprehensive income (loss)
attributable to KE Holdings Inc.
(1,448,364)
19,797
2,872
(1,329,765)
840,928
121,924
Comprehensive income (loss)
attributable to KE Holdings Inc.’s ordinary shareholders
(1,448,364)
19,797
2,872
(1,329,765)
840,928
121,924
KE Holdings Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Continued) (All amounts in thousands, except for share, per
share data, ADS and per ADS data)
For the Three Months
Ended
For the Year Ended
December 31,
2021
December 31,
2022
December 31,
2022
December 31,
2021
December 31,
2022
December 31,
2022
RMB
RMB
US$
RMB
RMB
US$
Weighted average number of ordinary
shares used in computing net income (loss) per share, basic and
diluted
—Basic
3,559,476,683
3,551,773,024
3,551,773,024
3,549,121,628
3,569,179,079
3,569,179,079
—Diluted
3,559,476,683
3,604,626,158
3,604,626,158
3,549,121,628
3,569,179,079
3,569,179,079
Weighted average number of ADS used in
computing net income (loss) per ADS, basic and diluted
—Basic
1,186,492,228
1,183,924,341
1,183,924,341
1,183,040,543
1,189,726,360
1,189,726,360
—Diluted
1,186,492,228
1,201,542,053
1,201,542,053
1,183,040,543
1,189,726,360
1,189,726,360
Net income (loss) per share
attributable to KE Holdings Inc.'s ordinary shareholders
—Basic
(0.26)
0.11
0.02
(0.15)
(0.39)
(0.06)
—Diluted
(0.26)
0.10
0.01
(0.15)
(0.39)
(0.06)
Net income (loss) per ADS attributable
to KE Holdings Inc.'s ordinary shareholders
—Basic
(0.78)
0.32
0.05
(0.44)
(1.17)
(0.17)
—Diluted
(0.78)
0.31
0.04
(0.44)
(1.17)
(0.17)
(1) Includes share-based compensation
expenses as follows:
Cost of revenues
106,663
91,209
13,224
406,131
356,844
51,738
Sales and marketing expenses
17,804
31,843
4,617
110,446
121,396
17,601
General and administrative expenses
112,491
549,632
79,689
595,732
1,659,755
240,641
Research and development expenses
82,877
52,495
7,611
425,978
287,254
41,648
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
For the Year Ended
December 31,
2021
December 31,
2022
December 31,
2022
December 31,
2021
December 31,
2022
December 31,
2022
RMB
RMB
US$
RMB
RMB
US$
Income (loss) from operations
(1,184,071)
387,391
56,167
(1,354,864)
(832,906)
(120,759)
Share-based compensation expenses
319,835
725,179
105,141
1,538,287
2,425,249
351,628
Amortization of intangible assets
resulting from acquisitions and business cooperation agreement
116,869
154,504
22,401
470,179
566,886
82,191
Impairment of goodwill, intangible assets
and other long-lived assets
349,639
71,813
10,412
746,705
148,057
21,466
Adjusted income (loss) from
operations
(397,728)
1,338,887
194,121
1,400,307
2,307,286
334,526
Net income (loss)
(933,264)
371,910
53,923
(524,766)
(1,397,284)
(202,586)
Share-based compensation expenses
319,835
725,179
105,141
1,538,287
2,425,249
351,628
Amortization of intangible assets
resulting from acquisitions and business cooperation agreement
116,869
154,504
22,401
470,179
566,886
82,191
Changes in fair value from long term
investments, loan receivables measured at fair value and contingent
consideration
3,084
129,731
18,809
(124,416)
526,926
76,397
Impairment of goodwill, intangible assets
and other long-lived assets
349,639
71,813
10,412
746,705
148,057
21,466
Impairment of investments
186,703
100,004
14,499
186,703
591,876
85,814
Tax effects on non-GAAP adjustments
(953)
(6,560)
(951)
1,264
(18,951)
(2,748)
Adjusted net income
41,913
1,546,581
224,234
2,293,956
2,842,759
412,162
Net income (loss)
(933,264)
371,910
53,923
(524,766)
(1,397,284)
(202,586)
Income tax expense
269,469
630,779
91,454
1,665,492
1,689,574
244,965
Share-based compensation expenses
319,835
725,179
105,141
1,538,287
2,425,249
351,628
Amortization of intangible assets
121,517
158,624
22,998
491,032
584,460
84,739
Depreciation of property and equipment
280,440
230,999
33,492
879,729
918,261
133,135
Interest income, net
(113,086)
(255,314)
(37,017)
(354,567)
(743,484)
(107,795)
Changes in fair value from long term
investments, loan receivables measured at fair value and contingent
consideration
3,084
129,731
18,809
(124,416)
526,926
76,397
Impairment of goodwill, intangible assets
and other long-lived assets
349,639
71,813
10,412
746,705
148,057
21,466
Impairment of investments
186,703
100,004
14,499
186,703
591,876
85,814
Adjusted EBITDA
484,337
2,163,725
313,711
4,504,199
4,743,635
687,763
Net income (loss) attributable to KE
Holdings Inc.’s ordinary shareholders
(929,682)
377,032
54,666
(524,129)
(1,386,074)
(200,961)
Share-based compensation expenses
319,835
725,179
105,141
1,538,287
2,425,249
351,628
Amortization of intangible assets
resulting from acquisitions and business cooperation agreement
116,869
154,504
22,401
470,179
566,886
82,191
Changes in fair value from long term
investments, loan receivables measured at fair value and contingent
consideration
3,084
129,731
18,809
(124,416)
526,926
76,397
Impairment of goodwill, intangible assets
and other long-lived assets
349,639
71,813
10,412
746,705
148,057
21,466
Impairment of investments
186,703
100,004
14,499
186,703
591,876
85,814
Tax effects on non-GAAP adjustments
(953)
(6,560)
(951)
1,264
(18,951)
(2,748)
Effects of non-GAAP adjustments on net
income attributable to non-controlling interests shareholders
(7)
(7)
(1)
(28)
(28)
(4)
Adjusted net income attributable to KE
Holdings Inc.’s ordinary shareholders
45,488
1,551,696
224,976
2,294,565
2,853,941
413,783
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
For the Year Ended
December 31,
2021
December 31,
2022
December 31,
2022
December 31,
2021
December 31,
2022
December 31,
2022
RMB
RMB
US$
RMB
RMB
US$
Weighted average number of ADS used in
computing net income (loss) per ADS, basic and diluted
—Basic
1,186,492,228
1,183,924,341
1,183,924,341
1,183,040,543
1,189,726,360
1,189,726,360
—Diluted
1,186,492,228
1,201,542,053
1,201,542,053
1,183,040,543
1,189,726,360
1,189,726,360
Weighted average number of ADS used in
calculating adjusted net income (loss) per ADS
—Basic
1,186,492,228
1,183,924,341
1,183,924,341
1,183,040,543
1,189,726,360
1,189,726,360
—Diluted
1,188,942,618
1,201,542,053
1,201,542,053
1,196,789,976
1,199,354,087
1,199,354,087
Net income (loss) per ADS attributable
to KE Holdings Inc.'s ordinary shareholders
—Basic
(0.78)
0.32
0.05
(0.44)
(1.17)
(0.17)
—Diluted
(0.78)
0.31
0.04
(0.44)
(1.17)
(0.17)
Non-GAAP adjustments to net income
(loss) per ADS attributable to KE Holdings Inc.'s ordinary
shareholders
—Basic
0.82
0.99
0.14
2.38
3.57
0.52
—Diluted
0.82
0.98
0.14
2.36
3.55
0.51
Adjusted net income (loss) per ADS
attributable to KE Holdings Inc.'s ordinary shareholders
—Basic
0.04
1.31
0.19
1.94
2.40
0.35
—Diluted
0.04
1.29
0.18
1.92
2.38
0.34
KE Holdings Inc.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(All amounts in thousands)
For the Three Months
Ended
For the Year Ended
December 31,
2021
December 31,
2022
December 31,
2022
December 31,
2021
December 31,
2022
December 31,
2022
RMB
RMB
US$
RMB
RMB
US$
Net cash provided by operating
activities
1,279,185
2,647,195
383,808
3,595,122
8,460,754
1,226,695
Net cash used in investing activities
(3,522,717)
(984,913)
(142,799)
(24,884,074)
(8,472,355)
(1,228,376)
Net cash used in financing activities
(202,800)
(913,499)
(132,445)
(1,074,173)
(1,154,993)
(167,459)
Effect of exchange rate change on cash,
cash equivalents and restricted cash
(221,751)
41,537
6,022
(442,141)
28,644
4,153
Net increase (decrease) in cash and
cash equivalents and restricted cash
(2,668,083)
790,320
114,586
(22,805,266)
(1,137,950)
(164,987)
Cash, cash equivalents and restricted cash
at the beginning of the period/year
29,400,292
24,803,939
3,596,233
49,537,475
26,732,209
3,875,806
Cash, cash equivalents and restricted
cash at the end of the period/year
26,732,209
25,594,259
3,710,819
26,732,209
25,594,259
3,710,819
KE Holdings Inc. UNAUDITED
SEGMENT CONTRIBUTION MEASURE (All amounts in thousands)
For the Three Months
Ended
For the Year Ended
December 31,
2021
December 31,
2022
December 31,
2022
December 31,
2021
December 31,
2022
December 31,
2022
RMB
RMB
US$
RMB
RMB
US$
Existing home transaction
services
Net revenues
5,985,303
5,280,757
765,638
31,947,953
24,123,703
3,497,608
Less: Commission and compensation
(3,965,516)
(3,321,568)
(481,582)
(20,123,501)
(14,510,838)
(2,103,873)
Contribution
2,019,787
1,959,189
284,056
11,824,452
9,612,865
1,393,735
New home transaction services
Net revenues
11,309,748
8,281,269
1,200,671
46,472,378
28,650,374
4,153,914
Less: Commission and compensation
(9,100,919)
(6,112,120)
(886,174)
(37,525,240)
(21,886,020)
(3,173,175)
Contribution
2,208,829
2,169,149
314,497
8,947,138
6,764,354
980,739
Home renovation and furnishing
Net revenues
57,671
2,093,811
303,574
197,452
5,046,627
731,692
Less: Material costs, commission and
compensation costs
(61,146)
(1,467,237)
(212,729)
(195,869)
(3,562,068)
(516,451)
Contribution
(3,475)
626,574
90,845
1,583
1,484,559
215,241
Emerging and other services
Net revenues
432,999
1,091,303
158,224
2,134,656
2,848,075
412,932
Less: Commission and compensation
(66,153)
(829,040)
(120,200)
(288,593)
(1,956,468)
(283,661)
Contribution
366,846
262,263
38,024
1,846,063
891,607
129,271
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, 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. 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 goodwill, intangible assets and
other long-lived assets, (v) impairment of investments, and (vi)
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 45,339 as of December 31, 2021. 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
406,794 as of December 31, 2021. 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. 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, (ii) amortization of intangible assets
resulting from acquisitions and business cooperation agreement, and
(iii) impairment of goodwill, intangible assets and other
long-lived assets. 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 (benefit), (ii) share-based compensation
expenses, (iii) amortization of intangible assets, (iv)
depreciation of property and equipment, (v) interest income, net,
(vi) changes in fair value from long term investments, loan
receivables measured at fair value and contingent consideration,
(vii) impairment of goodwill, intangible assets and other
long-lived assets, and (viii) 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 goodwill, intangible assets and
other long-lived assets, (v) impairment of investments, (vi) tax
effects of the above non-GAAP adjustments, and (vii) 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. 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230315005965/en/
For investor and media inquiries: In China: KE Holdings Inc.
Investor Relations Siting Li E-mail: ir@ke.com The Piacente Group,
Inc. Yang Song Tel: +86-10-6508-0677 E-mail: ke@tpg-ir.com In the
United States: The Piacente Group, Inc. Brandi Piacente Tel:
+1-212-481-2050 E-mail: ke@tpg-ir.com
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