BEIJING, Nov. 30, 2022 /PRNewswire/ -- KE Holdings Inc. ("Beike" or the "Company") (NYSE: BEKE and HKEX: 2423), a leading integrated online and offline housing platform for housing transactions and services, today announced its unaudited financial results for the third quarter ended September 30, 2022.
In the third quarter of 2022, policymakers maintained relatively easy credit conditions, and local governments continued to introduce city-specific measures to better satisfy demand for housing and home upgrades. However, recovery efforts in China's housing market was affected due to a number of reasons, such as heatwaves, a slowdown in sales promotion efforts by developers and a lack of progress in unfinished home projects.
Despite the uncertain backdrop, Beike, however, achieved a better-than-expected net revenue of RMB17.6 billion in Q3 2022 exceeding the company's guidance of RMB16.5-17 billion and street estimate of RMB17.2 billion.
The year-over-year decline in revenue for the quarter has narrowed down significantly to 2.8% while there has been a noticeable improvement in quarter-over-quarter growth with an increase of 27.7%. The solid performance is primarily due to increased revenues from existing home transactions, as pent-up demand in the mega cities of Beijing and Shanghai have translated into higher sales volume at the beginning of the third quarter. In addition, an increase in new home revenue has also been recognized in the latest quarter following a jump in subscriptions in May and June and Beike's "Commission in Advance" model also drove faster new home subscription to sales conversion rates.
Moreover, the Company saw its operating efficiency and profitability improved significantly in the third quarter, thanks to its rapid and continued implementation of a series of efficiency-oriented measures, where exceptional resilience and execution capabilities of the Company were fully demonstrated. During the third quarter, Beike's net income was RMB716 million and adjusted net income was RMB1.9 billion.
Last year, Beike initiated its new strategy of "One Body, Two Wings", providing quality services to consumers in many aspects of "joyful living", from home transaction services to home renovation and furnishing, and rental services.
Mr. Stanley Yongdong Peng, Chairman of the Board and Chief Executive Officer of Beike, commented, "In the third quarter of 2022, we stayed focused on driving operational excellence at each of our business lines, solidifying our competitive moats and building out our fledgling wings for the long term. Facing a challenging macroeconomic environment, we derived strong resilience from every homelinker – those who stay with us, share the same value, and always strive to enterprise. Our total GTV recovered by 15.3% quarter-over-quarter and our operating metrics recorded in all-fronts recovery driven by efficiency and productivity bolster across our businesses."
"We are steering our Company prudently through the current market cycle while remaining fortified to playing a better role in building up a healthy housing market", Peng said.
Mr. Tao Xu, Executive Director and Chief Financial Officer of Beike, said, "Despite the macro headwinds, our operating efficiency and profitability improved significantly in the third quarter, and we maintained a strong cash position and operating cash flow."
"All of these have enabled our fundamentals to remain intact and strengthened our sustainable operations amidst external challenges. These results did not come about overnight. They are the results of our rapid and resolute implementation of a series of risk-control, cost-management and efficiency-enhancing measures launched a year ago in the face of market adjustment. We're confident that all these strengths, along with an all-out effort from everyone in the Company, will make us well positioned for the long-term sustainable growth."
While delivering a resilient financial performance, Beike constantly strives to contribute to the communities its business deeply rooted in.
This July, Beike was the only company from private sector selected as part of the first group of affordable rental housing operation service enterprises in Chengdu. As of November 21, the company has provided quality services to more than 1,000 homeowners and tenants in the city.
Community-rooted stores on Beike also become the supply station for cities and communities and brokerage agents become volunteers. Beike kickstarted a nation-wide volunteer program this July with more than 75 cities participating including Beijing, Shanghai and Hangzhou. Different kinds of service providers such as brokerage agents, workers in the home renovations industry, rental housekeepers and technicians form Beike volunteer teams to work on volunteering programs such as ABC's of Mobile Phone Use for the Elderly.
Assisting the elderly to better adapt the highly digitalized society, ABC's of Mobile Phone Use for the Elderly program has entered its fourth year. By the end of October, this program has benefitted more than half million of senior citizens in 55 cities nationwide.
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.
Source: KE Holdings Inc. Related Stocks: HongKong:2423 NYSE:BEKE