KE Holdings Inc. Announces Second Quarter 2021 Unaudited Financial Results
KE Holdings Inc. (BEKE) reported strong financial results for Q2 2021, with net revenues of RMB24.2 billion (US$3.7 billion), up 20.0% year-over-year. The gross transaction value (GTV) reached RMB1,220.8 billion (US$189.1 billion), marking a 22.2% increase. Notably, GTV from new home transactions surged 32.3% to RMB498.3 billion (US$77.2 billion). Despite challenges from market-cooling measures, net income was RMB1,116 million (US$173 million). The company anticipates Q3 revenues of RMB14.5 billion to RMB15.5 billion, reflecting a potential decline from the previous year.
- Gross transaction value increased by 22.2% to RMB1,220.8 billion (US$189.1 billion).
- Net revenues rose 20.0% year-over-year to RMB24.2 billion (US$3.7 billion).
- Emerging services GTV grew 80.5% to RMB70.6 billion (US$10.9 billion).
- Number of agents increased by 20.3% to 548,600.
- Mobile monthly active users averaged 52.1 million, up 33.5% year-over-year.
- Gross profit decreased to RMB5.3 billion (US$0.8 billion) from RMB6.6 billion year-over-year.
- Gross margin declined to 22.1% from 32.5% in the same period last year.
- Operating income fell to RMB1,116 million (US$173 million) from RMB3,287 million year-over-year.
KE Holdings Inc. (“Beike” or the “Company”) (NYSE: BEKE), a leading integrated online and offline platform for housing transactions and services, today announced its unaudited financial results for the second quarter ended June 30, 2021.
Business Highlights for the Second Quarter of 2021
-
Gross transaction value (GTV)1 was RMB1,220.8 billion (US
$189.1 billion ), an increase of22.2% year-over-year. GTV of existing home transactions was RMB652.0 billion (US$101.0 billion ), an increase of11.7% year-over-year. GTV of new home transactions was RMB498.3 billion (US$77.2 billion ), an increase of32.3% year-over-year. GTV of emerging and other services was RMB70.6 billion (US$10.9 billion ), an increase of80.5% year-over-year. -
Net revenues were RMB24.2 billion (US
$3.7 billion ), an increase of20.0% year-over-year. -
Net income was RMB1,116 million (US
$173 million ). Adjusted net income2 was RMB1,638 million (US$254 million ). -
Number of stores was 52,868 as of June 30, 2021, a
25.1% increase from one year ago. -
Number of agents was 548,600 as of June 30, 2021, a
20.3% increase from one year ago. -
Mobile monthly active users (MAU)3 averaged 52.1 million, an increase of
33.5% year-over-year.
“We are pleased with our strong performance in the second quarter, backed by our commitment to contribute to a better industry and a better society,” said Mr. Stanley Yongdong Peng, Chairman of the Board and Chief Executive Officer of Beike. “Guided by our dedication to protect our customers’ rights and interests while fulfilling their expectations for joyful living, Beike delivered solid results while adhering to the national policy that 'housing is for living in, not for speculation', as evidenced by the total GTV of RMB2.29 trillion in the first half of 2021, up
“During the second quarter, we continued to upgrade our Agent Specialization Strategy and expand our professional contract service centers to 287 locations to enhance efficiency and collaborations, resulting in GTV of existing home transaction services of RMB652.0 billion, representing
“Looking ahead, we plan to leverage our quality, talent and technological resources to stimulate inspirations and explore growth and development opportunities, which has been key to our success during each of the past market corrections. In the future, housing is expected to be an increasingly important field of people’s livelihood, as we believe there will always be the consumers’ long-term demand for better living. Given the relative inefficiencies that persist in the housing industry, with low user satisfaction, and problems such as lack of standardization, digitalization, and internet penetration, we still see tremendous opportunities for value creation and increasing need for our innovative solutions. We will always look inward for source of strength and outward for value creation opportunities, with both perseverance and optimism for a bright future. With this in mind, we will continue to grow our business operations with a focus on long-term ‘better living’ by promoting our one-stop quality home services for the 300 million households in China,” concluded Mr. Peng.
Mr. Tao Xu, Executive Director and Chief Financial Officer of Beike, further commented, “Driven by the strong growth in GTV of both existing home and new home transaction services, we achieved a
Second Quarter 2021 Financial Results
Net Revenues
Net revenues increased by
-
Net revenues from existing home transaction services increased by
4.9% to RMB9.6 billion (US$1.5 billion ) in the second quarter of 2021 from RMB9.2 billion in the same period of 2020, primarily attributable to a11.7% increase in GTV of existing home transactions to RMB652.0 billion (US$101.0 billion ) in the second quarter of 2021 from RMB583.5 billion in the same period of 2020. For the first half of 2021, net revenues from existing home transaction services increased by57.9% to RMB19.8 billion (US$3.1 billion ) from RMB12.6 billion in the first half of 2020, driven by a70.1% increase in GTV of existing home transactions to RMB1,325.4 billion (US$205.3 billion ) in the first half of 2021 from RMB779.2 billion in the first half of 2020.
Among that, (i) the 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 by29.1% to RMB1.1 billion (US$0.2 billion ) in the second quarter of 2021 from RMB0.9 billion in the same period of 2020, primarily due to the increased GTV of existing home transactions served by connected agents on the Company’s platform by25.6% to RMB342.5 billion (US$53.0 billion ) in the second quarter of 2021 from RMB272.7 billion in the same period of 2020, and a moderate increase in existing home transaction commission rate charged by connected stores;
(ii) commission revenue increased by2.4% to RMB8.5 billion (US$1.3 billion ) in the second quarter of 2021 from RMB8.3 billion in the same period of 2020, driven by a moderate increase in existing home transaction services commission rate charged by Lianjia stores, while GTV of existing home transactions served by Lianjia stores was RMB309.5 billion (US$47.9 billion ) in the second quarter of 2021, compared to RMB310.9 billion in the same period of 2020 as a meaningful portion of transactions were concentrated in the second quarter of 2020 under the impact of COVID-19 outbreak.
-
Net revenues from new home transaction services increased by
31.9% to RMB13.9 billion (US$2.2 billion ) in the second quarter of 2021 from RMB10.5 billion in the same period of 2020, primarily attributable to an increase of32.3% in GTV of new home transactions to RMB498.3 billion (US$77.2 billion ) in the second quarter of 2021 from RMB376.6 billion in the same period of 2020. The GTV of new home transaction services completed on Beike platform through connected agents and other sales channels increased by42.8% to RMB414.5 billion (US$64.2 billion ) from RMB290.3 billion in the same period of 2020, while the GTV of new home transactions served by Lianjia brand was RMB83.8 billion (US$13.0 billion ) in the second quarter of 2021, compared to RMB86.3 billion in the same period of 2020. For the first half of 2021, net revenues from new home transaction services increased by70.4% to RMB23.8 billion (US$3.7 billion ) from RMB14.0 billion in the first half of 2020, driven by the increased GTV of new home transactions by70.7% to RMB841.7 billion (US$130.4 billion ) in the first half of 2021 from RMB493.1 billion in the first half of 2020.
-
Net revenues from emerging and other services increased by
50.6% to RMB0.7 billion (US$0.1 billion ) in the second quarter of 2021 from RMB0.4 billion in the same period of 2020. The increase was primarily attributable to the increase of penetration level in the Company’s financial services around the housing transaction services, and an increased number of home renovation units completed through the Company’s platform. For the first half of 2021, net revenues from emerging and other services increased by68.9% to RMB1.2 billion (US$0.2 billion ) from RMB0.7 billion in the same period of 2020.
Cost of Revenues
Total cost of revenues increased by
-
Commission - split. The Company’s cost of revenues for commissions to connected agents and other sales channels increased by
51.4% to RMB9.4 billion (US$1.5 billion ) in the second quarter of 2021 from RMB6.2 billion in the same period of 2020. The increase was primarily due to the incremental increase in the number 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 increased by
19.9% to RMB7.6 billion (US$1.2 billion ) in the second quarter of 2021 from RMB6.4 billion in the same period of 2020. The increase was primarily due to the increase in the number of new home transactions completed through dedicated agents with the expertise on new home transaction services, and the increase of fixed personnel costs in line with the increase in the number of Lianjia agents.
-
Cost related to stores. The Company’s cost related to stores increased by
31.2% to RMB0.9 billion (US$0.1 billion ) in the second quarter of 2021 compared to RMB0.7 billion in the same period of 2020, mainly due to an increase in the number of stores for Lianjia brand, and the incremental rise in rental fees of contract service centers opened in 2021.
-
Other costs. The Company’s other costs increased by
193.6% to RMB0.8 billion (US$0.1 billion ) in the second quarter of 2021 compared to RMB0.3 billion in the same period of 2020, mainly due to an increase in share-based compensation expenses, and an increase in training costs along with the increase of offline training activities compared to the same period of 2020 under the impact of COVID-19 outbreak.
Gross Profit
Gross profit was RMB5.3 billion (US
Income (Loss) from Operations
Total operating expenses were RMB4.2 billion (US
-
General and administrative expenses were RMB2,202 million (US
$341 million ) in the second quarter of 2021, compared to RMB1,951 million in the same period of 2020, mainly due to an increase in share-based compensation expenses.
-
Sales and marketing expenses were RMB1,241 million (US
$192 million ) in the second quarter of 2021, compared to RMB788 million in the same period of 2020, mainly due to the increase of the online and offline advertisement and branding campaigns as well as the increase of headcount in business development personnel.
-
Research and development expenses were RMB775 million (US
$120 million ) in the second quarter of 2021, compared to RMB524 million in the same period of 2020, mainly due to the increase of headcount in experienced research and development personnel and increased share-based compensation expenses.
Income from operations was RMB1,116 million (US
Adjusted income from operations4 was RMB1,669 million (US
Net Income (Loss)
Net income was RMB1,116 million (US
Adjusted net income was RMB1,638 million (US
Net Income (Loss) attributable to KE Holdings Inc.’s ordinary shareholders
Net income attributable to KE Holdings Inc.’s ordinary shareholders increased by
Adjusted net income attributable to KE Holdings Inc.7 was RMB1,635 million (US
Net Income (Loss) per ADS
Diluted net income per ADS attributable to KE Holdings Inc.’s ordinary shareholders8 was RMB0.93 (US
Adjusted diluted net income per ADS attributable to KE Holdings Inc.’s ordinary shareholders9 was RMB1.37 (US
Cash, Cash Equivalents, Restricted Cash and Short-Term Investments
As of June 30, 2021, the combined balance of the Company’s cash, cash equivalents, restricted cash and short-term investments amounted to RMB59.2 billion (US
Business Outlook
For the third quarter of 2021, the Company expects total net revenues to be between RMB14.5 billion (US
Conference Call Information
The Company will hold a conference call on 9:00 PM U.S. Eastern Time on Wednesday, August 11, 2021 (9:00 AM Beijing/Hong Kong Time on Thursday, August 12, 2021) to discuss the financial results. Details for the conference call are as follows:
Event Title: Beike’s Second Quarter 2021 Earnings Conference Call
Conference ID: 1752298
All participants must use the link provided below to complete the online registration process in advance of the conference call. Upon registering, each participant will receive a set of participant dial-in numbers, the Direct Event pass code, and a unique registrant ID by email.
PRE-REGISTER LINK:
http://apac.directeventreg.com/registration/event/1752298
A live and archived webcast of the conference call will also be available at the Company’s investor relations website at http://investors.ke.com/.
The replay will be accessible through August 19, 2021, by dialing the following numbers:
United States Toll Free: |
+1-855-452-5696 |
|
Mainland, China: |
400-602-2065 |
|
Hong Kong, China: |
+852-3051-2780 |
|
International: |
+61-2-8199-0299 |
|
Conference ID: |
1752298 |
Exchange Rate
This announcement 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 RMB6.4566 to US
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., 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, and (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement. 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, and (iv) tax effects of the above non-GAAP adjustments. Adjusted net income (loss) attributable to KE Holdings Inc. is defined as net income (loss) attributable to KE Holdings Inc., 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) tax effects of the above non-GAAP adjustments, and (v) 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) interest income, net, (ii) income tax expense (benefit), (iii) depreciation of property and equipment, (iv) amortization of intangible assets, (v) share-based compensation expenses, and (vi) changes in fair value from long term investments, loan receivables measured at fair value and contingent consideration. 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 the industry infrastructure and standards in China to reinvent how service providers and housing customers efficiently navigate and consummate housing transactions, ranging from existing and new home sales, home rentals, to home renovation, real estate financial solutions, 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 20 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 the industry 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”), 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’s platform; competition in our industry; relevant government policies and regulations relating to our 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. 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 INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (All amounts in thousands, except for share, per share data) |
||||||
|
|
As of December 31, |
|
As of June 30, |
||
|
|
2020 |
|
2021 |
||
|
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
40,969,979 |
|
30,544,499 |
|
4,730,740 |
Restricted cash |
|
8,567,496 |
|
10,821,984 |
|
1,676,112 |
Short-term investments |
|
15,688,321 |
|
17,881,501 |
|
2,769,492 |
Short-term financing receivables, net of allowance for credit losses of RMB113,905 and RMB237,284 as of December 31,2020 and June 30,2021, respectively |
|
3,931,641 |
|
4,357,891 |
|
674,951 |
Accounts receivable, net of allowance for credit losses of RMB1,122,218 and RMB1,268,794 as of December 31,2020 and June 30,2021, respectively |
|
13,183,559 |
|
13,832,098 |
|
2,142,319 |
Amounts due from and prepayments to related parties |
|
484,349 |
|
532,524 |
|
82,477 |
Loan receivables from related parties |
|
36,378 |
|
34,775 |
|
5,386 |
Prepayments, receivables and other assets |
|
4,677,378 |
|
4,321,616 |
|
669,333 |
Total current assets |
|
87,539,101 |
|
82,326,888 |
|
12,750,810 |
Non-current assets |
|
|
|
|
|
|
Property and equipment, net |
|
1,472,460 |
|
1,909,573 |
|
295,755 |
Right-of-use assets |
|
6,821,100 |
|
7,760,126 |
|
1,201,890 |
Long-term financing receivables, net of allowance for credit losses of RMB13,414 and RMB 7,058 as of December 31,2020 and June 30,2021, respectively |
|
218,018 |
|
134,234 |
|
20,790 |
Long-term investments, net |
|
3,140,315 |
|
10,534,929 |
|
1,631,653 |
Intangible assets, net |
|
1,642,651 |
|
1,397,151 |
|
216,391 |
Goodwill |
|
2,467,497 |
|
2,504,843 |
|
387,951 |
Other non-current assets |
|
994,394 |
|
988,188 |
|
153,051 |
Total non-current assets |
|
16,756,435 |
|
25,229,044 |
|
3,907,481 |
TOTAL ASSETS |
|
104,295,536 |
|
107,555,932 |
|
16,658,291 |
KE Holdings Inc. UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (Continued) (All amounts in thousands, except for share, per share data) |
||||||
|
|
As of December 31, |
|
As of June 30, |
||
|
|
2020 |
|
2021 |
||
|
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable |
|
6,594,846 |
|
6,052,121 |
|
937,354 |
Amounts due to related parties |
|
254,255 |
|
415,141 |
|
64,297 |
Employee compensation and welfare payable |
|
11,231,800 |
|
9,878,847 |
|
1,530,039 |
Customer deposits payable |
|
6,743,256 |
|
9,363,182 |
|
1,450,172 |
Income taxes payable |
|
986,465 |
|
436,538 |
|
67,611 |
Lease liabilities current portion |
|
2,625,979 |
|
2,900,471 |
|
449,226 |
Short-term funding debt |
|
1,512,510 |
|
577,700 |
|
89,474 |
Contract liabilities |
|
734,157 |
|
840,912 |
|
130,241 |
Accrued expenses and other current liabilities |
|
2,950,078 |
|
3,058,061 |
|
473,634 |
Total current liabilities |
|
33,633,346 |
|
33,522,973 |
|
5,192,048 |
Non-current liabilities |
|
|
|
|
|
|
Deferred tax liabilities |
|
17,289 |
|
17,289 |
|
2,678 |
Lease liabilities non-current portion |
|
3,833,914 |
|
4,553,756 |
|
705,287 |
Long-term funding debt |
|
15,000 |
|
7,500 |
|
1,162 |
Other non-current liabilities |
|
3,471 |
|
2,682 |
|
414 |
Total non-current liabilities |
|
3,869,674 |
|
4,581,227 |
|
709,541 |
TOTAL LIABILITIES |
|
37,503,020 |
|
38,104,200 |
|
5,901,589 |
KE Holdings Inc.
|
||||||
|
|
As of December 31, |
|
As of June 30, |
||
|
|
2020 |
|
2021 |
||
|
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
KE Holdings Inc. shareholders’ equity |
|
|
|
|
|
|
Ordinary Shares (US |
|
482 |
|
488 |
|
76 |
Additional paid-in capital |
|
77,433,882 |
|
78,302,735 |
|
12,127,549 |
Statutory reserves |
|
392,834 |
|
394,173 |
|
61,050 |
Accumulated other comprehensive loss |
|
(1,834,087) |
|
(2,234,458) |
|
(346,073) |
Accumulated deficit |
|
(9,227,664) |
|
(7,065,309) |
|
(1,094,279) |
Total KE Holdings Inc. shareholders' equity |
|
66,765,447 |
|
69,397,629 |
|
10,748,323 |
Non-controlling interests |
|
27,069 |
|
54,103 |
|
8,379 |
TOTAL SHAREHOLDERS' EQUITY |
|
66,792,516 |
|
69,451,732 |
|
10,756,702 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
104,295,536 |
|
107,555,932 |
|
16,658,291 |
|
KE Holdings Inc.
|
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Three months ended |
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Six months ended |
|||||||||
|
June 30, 2020 |
|
June 30, 2021 |
|
June 30, 2021 |
|
June 30, 2020 |
|
June 30, 2021 |
|
June 30, 2021 |
|
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Existing home transaction services |
9,179,869 |
|
9,628,335 |
|
1,491,239 |
|
12,555,201 |
|
19,824,630 |
|
3,070,444 |
|
New home transaction services |
10,523,977 |
|
13,885,811 |
|
2,150,638 |
|
13,976,712 |
|
23,814,158 |
|
3,688,343 |
|
Emerging and other services |
437,813 |
|
659,383 |
|
102,125 |
|
729,505 |
|
1,231,790 |
|
190,780 |
|
Total net revenues |
20,141,659 |
|
24,173,529 |
|
3,744,002 |
|
27,261,418 |
|
44,870,578 |
|
6,949,567 |
|
Cost of revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Commission-split |
(6,237,815) |
|
(9,446,401) |
|
(1,463,061) |
|
(8,378,251) |
|
(16,338,521) |
|
(2,530,515) |
|
Commission and compensation-internal |
(6,355,403) |
|
(7,618,392) |
|
(1,179,939) |
|
(9,910,020) |
|
(14,955,363) |
|
(2,316,291) |
|
Cost related to stores |
(709,958) |
|
(931,324) |
|
(144,244) |
|
(1,427,620) |
|
(1,777,638) |
|
(275,321) |
|
Others |
(287,608) |
|
(844,447) |
|
(130,788) |
|
(493,120) |
|
(1,649,534) |
|
(255,480) |
|
Total cost of revenues(1) |
(13,590,784) |
|
(18,840,564) |
|
(2,918,032) |
|
(20,209,011) |
|
(34,721,056) |
|
(5,377,607) |
|
Gross profit |
6,550,875 |
|
5,332,965 |
|
825,970 |
|
7,052,407 |
|
10,149,522 |
|
1,571,960 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing expenses(1) |
(788,335) |
|
(1,240,608) |
|
(192,146) |
|
(1,365,430) |
|
(2,297,778) |
|
(355,880) |
|
General and administrative expenses(1) |
(1,951,496) |
|
(2,201,634) |
|
(340,990) |
|
(3,056,525) |
|
(4,309,749) |
|
(667,495) |
|
Research and development expenses(1) |
(523,670) |
|
(774,958) |
|
(120,025) |
|
(974,431) |
|
(1,412,964) |
|
(218,840) |
|
Total operating expenses |
(3,263,501) |
|
(4,217,200) |
|
(653,161) |
|
(5,396,386) |
|
(8,020,491) |
|
(1,242,215) |
|
Income from operations |
3,287,374 |
|
1,115,765 |
|
172,809 |
|
1,656,021 |
|
2,129,031 |
|
329,745 |
|
Interest income, net |
58,486 |
|
68,906 |
|
10,672 |
|
136,695 |
|
150,764 |
|
23,350 |
|
Share of results of equity investees |
764 |
|
14,387 |
|
2,228 |
|
(2,326) |
|
34,107 |
|
5,283 |
|
Fair value changes in investments, net |
83,886 |
|
371,937 |
|
57,606 |
|
(20,309) |
|
346,163 |
|
53,614 |
|
Foreign currency exchange gain/(loss) |
1,921 |
|
(3,870) |
|
(599) |
|
7,412 |
|
7,588 |
|
1,175 |
|
Other income, net |
188,097 |
|
317,315 |
|
49,146 |
|
462,787 |
|
699,229 |
|
108,297 |
|
Income before income tax expense |
3,620,528 |
|
1,884,440 |
|
291,862 |
|
2,240,280 |
|
3,366,882 |
|
521,464 |
|
Income tax expense |
(781,715) |
|
(768,838) |
|
(119,078) |
|
(632,854) |
|
(1,192,509) |
|
(184,696) |
|
Net income |
2,838,813 |
|
1,115,602 |
|
172,784 |
|
1,607,426 |
|
2,174,373 |
|
336,768 |
|
Net (income)/loss attributable to non-controlling interests shareholders |
(2,245) |
|
(3,715) |
|
(575) |
|
492 |
|
(3,900) |
|
(604) |
|
Net income attributable to KE Holdings Inc. |
2,836,568 |
|
1,111,887 |
|
172,209 |
|
1,607,918 |
|
2,170,473 |
|
336,164 |
|
Accretion on convertible redeemable preferred shares to redemption value |
(715,782) |
|
- |
|
- |
|
(1,409,085) |
|
- |
|
- |
|
Income allocated to participating preferred shareholders |
(1,067,884) |
|
- |
|
- |
|
(100,443) |
|
- |
|
- |
|
Net income attributable to KE Holdings Inc.’s ordinary shareholders |
1,052,902 |
|
1,111,887 |
|
172,209 |
|
98,390 |
|
2,170,473 |
|
336,164 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
2,838,813 |
|
1,115,602 |
|
172,784 |
|
1,607,426 |
|
2,174,373 |
|
336,768 |
|
Currency translation adjustments |
(20,629) |
|
(607,235) |
|
(94,049) |
|
150,383 |
|
(397,662) |
|
(61,590) |
|
Unrealized gains (losses) on available-for-sale investments, net of reclassification |
- |
|
(2,709) |
|
(420) |
|
- |
|
(2,709) |
|
(420) |
|
Total comprehensive income |
2,818,184 |
|
505,658 |
|
78,315 |
|
1,757,809 |
|
1,774,002 |
|
274,758 |
|
Comprehensive (income)/loss attributable to non-controlling interests shareholders |
(2,245) |
|
(3,715) |
|
(575) |
|
492 |
|
(3,900) |
|
(604) |
|
Comprehensive income attributable to KE Holding Inc. |
2,815,939 |
|
501,943 |
|
77,740 |
|
1,758,301 |
|
1,770,102 |
|
274,154 |
|
Accretion on convertible redeemable preferred shares to redemption value |
(715,782) |
|
- |
|
- |
|
(1,409,085) |
|
- |
|
- |
|
Income allocated to participating preferred shareholders |
(1,067,884) |
|
- |
|
- |
|
(100,443) |
|
- |
|
- |
|
Comprehensive income attributable to KE Holding Inc.’s ordinary shareholders |
1,032,273 |
|
501,943 |
|
77,740 |
|
248,773 |
|
1,770,102 |
|
274,154 |
|
KE Holdings Inc.
|
||||||||||||
| Three months ended | Six months ended | |||||||||||
June 30, |
|
June 30, |
|
June 30, |
|
June 30, |
|
June 30, |
|
June 30, |
||
2020 |
|
2021 |
|
2021 |
|
2020 |
|
2021 |
|
2021 |
||
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
||
| Weighted average number of ordinary shares used in computing net income per share, basic and diluted | ||||||||||||
| —Basic | 1,489,569,980 |
3,522,427,632 |
3,522,427,632 |
1,479,868,335 |
3,521,948,998 |
3,521,948,998 |
||||||
| —Diluted | 1,492,757,856 |
3,586,824,279 |
3,586,824,279 |
1,492,619,841 |
3,590,416,704 |
3,590,416,704 |
||||||
|
|
|
|
|
|
|||||||
| Weighted average number of ADS used in computing net income per ADS, basic and diluted |
|
|
|
|
|
|
||||||
| —Basic | 496,523,327 |
1,174,142,544 |
1,174,142,544 |
493,289,445 |
1,173,982,999 |
1,173,982,999 |
||||||
| —Diluted | 497,585,952 |
1,195,608,093 |
1,195,608,093 |
497,539,947 |
1,196,805,568 |
1,196,805,568 |
||||||
|
|
|
|
|
|
|||||||
| Net income per share attributable to KE Holdings Inc.'s ordinary shareholders |
|
|
|
|
|
|
||||||
| —Basic | 0.71 |
0.32 |
0.05 |
0.07 |
0.62 |
0.1 |
||||||
| —Diluted | 0.71 |
0.31 |
0.05 |
0.07 |
0.60 |
0.09 |
||||||
|
|
|
|
|
|
|||||||
| Net income per ADS attributable to KE Holdings Inc.'s ordinary shareholders |
|
|
|
|
|
|
||||||
| —Basic | 2.12 |
0.95 |
0.15 |
0.2 |
1.85 |
0.29 |
||||||
| —Diluted | 2.12 |
0.93 |
0.14 |
0.2 |
1.81 |
0.28 |
||||||
|
|
|
|
|
|
|||||||
| (1)Includes share-based compensation expenses as follows: |
|
|
|
|
|
|
||||||
| Cost of revenues | - |
124,880 |
19,342 |
- |
234,272 |
36,284 |
||||||
| Sales and marketing expenses | - |
35,793 |
5,544 |
- |
70,130 |
10,862 |
||||||
| General and administrative expenses | - |
153,914 |
23,838 |
- |
338,977 |
52,501 |
||||||
| Research and development expenses | - |
121,650 |
18,841 |
- |
225,473 |
34,921 |
||||||
KE Holdings Inc.
|
||||||||||||
Three months ended |
Six months ended |
|||||||||||
|
June 30, 2020 |
|
June 30, 2021 |
|
June 30, 2021 |
|
June 30, 2020 |
|
June 30, 2021 |
|
June 30, 2021 |
|
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations |
3,287,374 |
|
1,115,765 |
|
172,809 |
|
1,656,021 |
|
2,129,031 |
|
329,745 |
|
Share-based compensation expenses |
- |
|
436,237 |
|
67,565 |
|
- |
|
868,852 |
|
134,568 |
|
Amortization of intangible assets resulting from acquisitions and business cooperation agreement |
155,554 |
|
116,885 |
|
18,103 |
|
308,601 |
|
235,119 |
|
36,415 |
|
Adjusted income from operations |
3,442,928 |
|
1,668,887 |
|
258,477 |
|
1,964,622 |
|
3,233,002 |
|
500,728 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
2,838,813 |
|
1,115,602 |
|
172,784 |
|
1,607,426 |
|
2,174,373 |
|
336,768 |
|
Share-based compensation expenses |
- |
|
436,237 |
|
67,565 |
|
- |
|
868,852 |
|
134,568 |
|
Amortization of intangible assets resulting from acquisitions and business cooperation agreement |
155,554 |
|
116,885 |
|
18,103 |
|
308,601 |
|
235,119 |
|
36,415 |
|
Changes in fair value from long term investments, loan receivables measured at fair value and contingent consideration |
(41,808) |
|
(30,496) |
|
(4,723) |
|
(54,531) |
|
(138,660) |
|
(21,476) |
|
Tax effects on non-GAAP adjustments |
(1,510) |
|
237 |
|
37 |
|
(815) |
|
613 |
|
95 |
|
Adjusted net income |
2,951,049 |
|
1,638,465 |
|
253,766 |
|
1,860,681 |
|
3,140,297 |
|
486,370 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
2,838,813 |
|
1,115,602 |
|
172,784 |
|
1,607,426 |
|
2,174,373 |
|
336,768 |
|
Income tax expense |
781,715 |
|
768,838 |
|
119,078 |
|
632,854 |
|
1,192,509 |
|
184,696 |
|
Share-based compensation expenses |
- |
|
436,237 |
|
67,565 |
|
- |
|
868,852 |
|
134,568 |
|
Amortization of intangible assets |
162,587 |
|
123,693 |
|
19,158 |
|
320,068 |
|
247,739 |
|
38,370 |
|
Depreciation of property and equipment |
109,597 |
|
210,122 |
|
32,544 |
|
223,961 |
|
375,621 |
|
58,176 |
|
Interest income, net |
(58,486) |
|
(68,906) |
|
(10,672) |
|
(136,695) |
|
(150,764) |
|
(23,350) |
|
Changes in fair value from long term investments, loan receivables measured at fair value and contingent consideration |
(41,808) |
|
(30,496) |
|
(4,723) |
|
(54,531) |
|
(138,660) |
|
(21,476) |
|
Adjusted EBITDA |
3,792,418 |
|
2,555,090 |
|
395,734 |
|
2,593,083 |
|
4,569,670 |
|
707,752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to KE Holdings Inc. |
2,836,568 |
|
1,111,887 |
|
172,209 |
|
1,607,918 |
|
2,170,473 |
|
336,164 |
|
Share-based compensation expenses |
- |
|
436,237 |
|
67,565 |
|
- |
|
868,852 |
|
134,568 |
|
Amortization of intangible assets resulting from acquisitions and business cooperation agreement |
155,554 |
|
116,885 |
|
18,103 |
|
308,601 |
|
235,119 |
|
36,415 |
|
Changes in fair value from long term investments, loan receivables measured at fair value and contingent consideration |
(41,808) |
|
(30,496) |
|
(4,723) |
|
(54,531) |
|
(138,660) |
|
(21,476) |
|
Tax effects on non-GAAP adjustments |
(1,510) |
|
237 |
|
37 |
|
(815) |
|
613 |
|
95 |
|
Effects of non-GAAP adjustments on net income attributable to non-controlling interests shareholders |
(619) |
|
(7) |
|
(1) |
|
(1,503) |
|
(14) |
|
(2) |
|
Adjusted Net income attributable to KE Holdings Inc. |
2,948,185 |
|
1,634,743 |
|
253,190 |
|
1,859,670 |
|
3,136,383 |
|
485,764 |
|
Accretion on convertible redeemable preferred shares to redemption value |
(715,782) |
|
- |
|
- |
|
(1,409,085) |
|
- |
|
- |
|
Adjusted net income allocated to participating preferred shares |
(1,124,087) |
|
- |
|
- |
|
(227,621) |
|
- |
|
- |
|
Adjusted net income attributable to KE Holdings Inc.’s ordinary shareholders |
1,108,316 |
|
1,634,743 |
|
253,190 |
|
222,964 |
|
3,136,383 |
|
485,764 |
|
KE Holdings Inc.
|
||||||||||||
Three months ended |
Six months ended |
|||||||||||
|
June 30, 2020 |
|
June 30, 2021 |
|
June 30, 2021 |
|
June 30, 2020 |
|
June 30, 2021 |
|
June 30, 2021 |
|
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
||||||
Weighted average number of ADS used in computing net income per ADS, basic and diluted |
|
|
|
|
|
|
||||||
—Basic |
496,523,327 |
1,174,142,544 |
1,174,142,544 |
493,289,445 |
1,173,982,999 |
1,173,982,999 |
||||||
—Diluted |
497,585,952 |
1,195,608,093 |
1,195,608,093 |
497,539,947 |
1,196,805,568 |
1,196,805,568 |
||||||
|
|
|
|
|
|
|
||||||
Weighted average number of ADS used in calculating adjusted net income per ADS, basic and diluted |
|
|
|
|
|
|
||||||
—Basic |
496,523,327 |
1,174,142,544 |
1,174,142,544 |
493,289,445 |
1,173,982,999 |
1,173,982,999 |
||||||
—Diluted |
497,585,952 |
1,195,608,093 |
1,195,608,093 |
497,539,947 |
1,196,805,568 |
1,196,805,568 |
||||||
|
|
|
|
|
|
|
||||||
Net income per ADS attributable to KE Holdings Inc.'s ordinary shareholders |
|
|
|
|
|
|
||||||
—Basic |
2.12 |
0.95 |
0.15 |
0.20 |
1.85 |
0.29 |
||||||
—Diluted |
2.12 |
0.93 |
0.14 |
0.20 |
1.81 |
0.28 |
||||||
|
|
|
|
|
|
|
||||||
Non-GAAP adjustments to net income per ADS attributable to KE Holdings Inc.'s ordinary shareholders |
|
|
|
|
|
|
||||||
—Basic |
0.11 |
0.44 |
0.07 |
0.25 |
0.82 |
0.12 |
||||||
—Diluted |
0.11 |
0.44 |
0.07 |
0.25 |
0.81 |
0.13 |
||||||
|
|
|
|
|
|
|
||||||
Adjusted net income per ADS attributable to KE Holdings Inc.’s ordinary shareholders |
|
|
|
|
|
|
||||||
—Basic |
2.23 |
1.39 |
0.22 |
0.45 |
2.67 |
0.41 |
||||||
—Diluted |
2.23 |
1.37 |
0.21 |
0.45 |
2.62 |
0.41 |
||||||
KE Holdings Inc. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (All amounts in thousands) |
||||||||||||
|
Three months ended |
|
Six months ended |
|||||||||
|
June 30, 2020 |
|
June 30, 2021 |
|
June 30, 2021 |
|
June 30, 2020 |
|
June 30, 2021 |
|
June 30, 2021 |
|
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
9,133,566 |
|
1,001,317 |
|
155,086 |
|
5,044,465 |
|
3,474,372 |
|
538,110 |
|
Net cash provided by/(used in) investing activities |
2,751,829 |
|
1,117,225 |
|
173,036 |
|
(2,424,534) |
|
(10,396,836) |
|
(1,610,265) |
|
Net cash provided by/(used in) financing activities |
329,069 |
|
(12,199) |
|
(1,890) |
|
(569,320) |
|
(943,174) |
|
(146,079) |
|
Effect of exchange rate change on cash, cash equivalents and restricted cash |
(14,448) |
|
(503,955) |
|
(78,054) |
|
116,944 |
|
(305,354) |
|
(47,292) |
|
Net increase/(decrease) in cash and cash equivalents and restricted cash |
12,200,016 |
|
1,602,388 |
|
248,178 |
|
2,167,555 |
|
(8,170,992) |
|
(1,265,526) |
|
Cash, cash equivalents and restricted cash at the beginning of the period |
21,898,115 |
|
39,764,095 |
|
6,158,674 |
|
31,930,576 |
|
49,537,475 |
|
7,672,378 |
|
Cash, cash equivalents and restricted cash at the end of the period |
34,098,131 |
|
41,366,483 |
|
6,406,852 |
|
34,098,131 |
|
41,366,483 |
|
6,406,852 |
|
KE Holdings Inc.
|
||||||||||||
|
|
Three months ended |
|
Six months ended |
||||||||
|
|
June 30, 2020 |
|
June 30, 2021 |
|
June 30, 2021 |
|
June 30, 2020 |
|
June 30, 2021 |
|
June 30, 2021 |
|
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
Existing home transaction services |
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
9,179,869 |
|
9,628,335 |
|
1,491,239 |
|
12,555,201 |
|
19,824,630 |
|
3,070,444 |
Less: Commission and compensation |
|
(4,881,915) |
|
(5,646,746) |
|
(874,570) |
|
(7,708,636) |
|
(11,763,191) |
|
(1,821,886) |
Contribution |
|
4,297,954 |
|
3,981,589 |
|
616,669 |
|
4,846,565 |
|
8,061,439 |
|
1,248,558 |
|
|
|
|
|
|
|
|
|
|
|
|
|
New home transaction services |
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
10,523,977 |
|
13,885,811 |
|
2,150,638 |
|
13,976,712 |
|
23,814,158 |
|
3,688,343 |
Less: Commission and compensation |
|
(7,649,993) |
|
(11,300,400) |
|
(1,750,209) |
|
(10,473,121) |
|
(19,306,429) |
|
(2,990,185) |
Contribution |
|
2,873,984 |
|
2,585,411 |
|
400,429 |
|
3,503,591 |
|
4,507,729 |
|
698,158 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Emerging and other services |
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
437,813 |
|
659,383 |
|
102,125 |
|
729,505 |
|
1,231,790 |
|
190,780 |
Less: Commission and compensation |
|
(61,310) |
|
(117,647) |
|
(18,221) |
|
(106,514) |
|
(224,264) |
|
(34,735) |
Contribution |
|
376,503 |
|
541,736 |
|
83,904 |
|
622,991 |
|
1,007,526 |
|
156,045 |
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 and emerging and other services, and including transactions that are contracted but pending closing at the end of period.
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, and (iv) 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 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.
4 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.
5 Adjusted operating margin is adjusted income (loss) from operations as a percentage of net revenues.
6 Adjusted EBITDA is a non-GAAP financial measure, which is defined as net income (loss), excluding (i) interest income, net, (ii) income tax expense (benefit), (iii) depreciation of property and equipment, (iv) amortization of intangible assets, (v) share-based compensation expenses, and (vi) changes in fair value from long term investments, loan receivables measured at fair value and contingent consideration. Please refer to the section titled “Unaudited reconciliation of GAAP and non-GAAP results” for details.
7 Adjusted net income (loss) attributable to KE Holdings Inc. is a non-GAAP financial measure and represents adjusted income (loss) attributable to KE Holdings Inc.’s ordinary shareholders and preferred shareholders, and all preferred shares of KE Holdings Inc. had been automatically converted to ordinary shares upon initial public offering of KE Holdings Inc. on a one-for-one basis. Adjusted net income (loss) attributable to KE Holdings Inc. is defined as net income (loss) attributable to KE Holdings Inc., 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) tax effects of the above non-GAAP adjustments, and (v) 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.
8 ADS is American Depositary Share. Each ADS represents three Class A ordinary shares of the Company. Diluted 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 diluted ADS.
9 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/20210811005754/en/
FAQ
What were the financial results for KE Holdings Inc. (BEKE) in Q2 2021?
How did the gross transaction value for BEKE change in Q2 2021?
What is the outlook for KE Holdings Inc. for Q3 2021?
How many agents does KE Holdings Inc. have as of June 30, 2021?
Did KE Holdings Inc. experience any growth in emerging services in Q2 2021?
