KE Holdings Inc. Announces Third Quarter 2023 Unaudited Financial Results
- Net revenues increased by 1.2% year-over-year to RMB17.8 billion
- Net income was RMB1,170 million
- Number of stores, active stores, agents, and active agents all saw year-over-year increases
- The company's 'One Body, Three Wings' corporate strategy aims to become a leading one-stop platform for residential services
- None.
BEIJING, Nov. 08, 2023 (GLOBE NEWSWIRE) -- 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 third quarter ended September 30, 2023.
Business and Financial Highlights for the Third Quarter of 2023
- Gross transaction value (GTV)1 was RMB655.2 billion (US
$89.8 billion ), a decrease of11.1% year-over-year. GTV of existing home transactions was RMB439.0 billion (US$60.2 billion ), a decrease of2.2% year-over-year. GTV of new home transactions was RMB192.1 billion (US$26.3 billion ), a decrease of26.5% year-over-year. GTV of home renovation and furnishing was RMB3.3 billion (US$0.4 billion ), an increase of65.6% year-over-year. GTV of emerging and other services was RMB20.7 billion (US$2.8 billion ), a decrease of16.0% year-over-year. - Net revenues were RMB17.8 billion (US
$2.4 billion ), an increase of1.2% year-over-year. - Net income was RMB1,170 million (US
$160 million ). Adjusted net income2 was RMB2,159 million (US$296 million ). - Number of stores was 43,013 as of September 30, 2023, a
3.9% increase from one year ago. Number of active stores3 was 40,903 as of September 30, 2023, a3.0% increase from one year ago. - Number of agents was 429,352 as of September 30, 2023, a
6.6% increase from one year ago. Number of active agents4 was 399,048 as of September 30, 2023, a7.1% increase from one year ago. - Mobile monthly active users (MAU)5 averaged 49.2 million in the third quarter of 2023, compared to 42.4 million in the same period of 2022.
Mr. Stanley Yongdong Peng, Chairman of the Board and Chief Executive Officer of Beike, commented, “During the third quarter of 2023, China’s real estate market saw meaningful monthly rebound supported by a wave of government favorable policies, such as lowering down payment ratio. We achieved resilient top-line performance, which is a powerful testament to our across-the-board efforts for business growth and efficiency improvement.”
“As we see a horizon with prospects centered on ‘better living’, and are eager to fulfill the tremendous needs from consumers, we have upgraded our corporate strategy to ‘One Body, Three Wings’, a significant step in our roadmap to become the leading one-stop platform of residential services. Through prudent execution and efficiency improvement, we’ve reinforced the agility and resilience of our ‘One Body’ business, and are excited to connect to a broader range of industry participants to drive the sector’s high-quality advancement. We also aim to deepen our insights and ramp up our service capabilities by actively pursuing the rapid scale expansion of our new businesses, including home renovation and furnishing. We will always strive to uplift the industry standards, while forging lasting and synergistic relationships with all industry stakeholders. Our technology-empowered infrastructure, extensive datasets, strong customer traffic, and expansive store and agent network will position us well for the future, delivering unparalleled value to both our customers and the whole residential industry,” concluded Mr. Peng.
Mr. Tao Xu, Executive Director and Chief Financial Officer of Beike, added, “In the third quarter of this year, China’s real estate market gradually picked up from the bottom with higher-tier cities leading the month-on-month recovery in September following the introduction of supportive polices. Our net revenues grew by
Third Quarter 2023 Financial Results
Net Revenues
Net revenues increased by
- Net revenues from existing home transaction services decreased by
11.9% to RMB6.3 billion (US$0.9 billion ) in the third quarter of 2023 from RMB7.2 billion in the same period of 2022, primarily attributable 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 decreased by2.2% to RMB439.0 billion (US$60.2 billion ) in the third quarter of 2023 from RMB449.0 billion in the same period of 2022, primarily attributable to the decrease of GTV served by Lianjia brand, which was partially offset by the increase of GTV served by connected agents on the Company’s platform year-over-year. The larger contraction of net revenues of existing home transaction services compared to that of GTV 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 by16.1% to RMB5.1 billion (US$0.7 billion ) in the third quarter of 2023 from RMB6.1 billion in the same period of 2022, primarily due to a decrease in GTV of existing home transactions served by Lianjia stores of13.0% to RMB191.2 billion (US$26.2 billion ) in the third quarter of 2023 from RMB219.7 billion in the same period 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 by13.4% to RMB1.2 billion (US$0.2 billion ) in the third quarter of 2023 from RMB1.0 billion in the same period of 2022, mainly due to an8.1% increase of GTV of existing home transactions served by connected agents on the Company’s platform to RMB247.8 billion (US$34.0 billion ) in the third quarter of 2023 from RMB229.3 billion in the same period of 2022.
- Net revenues from new home transaction services decreased by
24.3% to RMB5.9 billion (US$0.8 billion ) in the third quarter of 2023 from RMB7.8 billion in the same period of 2022, primarily due to the decrease of GTV of new home transactions of26.5% to RMB192.1 billion (US$26.3 billion ) in the third quarter of 2023 from RMB261.5 billion in the same period of 2022. 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 by29.6% to RMB151.9 billion (US$20.8 billion ) in the third quarter of 2023 from RMB215.7 billion in the same period of 2022, while the GTV of new home transactions served by Lianjia brand decreased by12.1% to RMB40.3 billion (US$5.5 billion ) in the third quarter of 2023 from RMB45.8 billion in the same period of 2022.
- Net revenues from home renovation and furnishing increased by
72.1% to RMB3.2 billion (US$0.4 billion ) in the third quarter of 2023 from RMB1.8 billion in the same period of 2022, primarily attributable to the organic growth of the GTV for home renovation and furnishing business driven by the increase of orders and enhanced delivery capability.
- Net revenues from emerging and other services increased by
202.7% to RMB2.4 billion (US$0.3 billion ) in the third quarter of 2023 from RMB0.8 billion in the same period of 2022, primarily attributable to the increase of net revenues from rental property management services.
Cost of Revenues
Total cost of revenues was to RMB12.9 billion (US
- Commission – split. The Company’s cost of revenues for commissions to connected agents and other sales channels was RMB5.5 billion (US
$0.7 billion ) in the third quarter of 2023, compared to RMB5.7 billion in the same period of 2022, primarily due to the decrease in GTV of new home transactions completed through connected agents and other sales channels in the third quarter of 2023 compared with the same period of 2022, which was partially offset by the increase of commission-split for rental property management services.
- Commission and compensation – internal. The Company’s cost of revenues for internal commission and compensation was RMB4.0 billion (US
$0.6 billion ) in the third quarter of 2023, compared to RMB4.6 billion in the same period of 2022, primarily due to the decreased GTV of existing home transactions 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 increased by
72.7% to RMB2.3 billion (US$0.3 billion ) in the third quarter of 2023 from RMB1.3 billion in the same period of 2022, which was primarily attributable to the organic growth of net revenues from home renovation and furnishing.
- Cost related to stores. The Company’s cost related to stores decreased by
11.3% to RMB0.7 billion (US$0.1 billion ) in the third quarter of 2023, compared to RMB0.8 billion in the same period of 2022, mainly due to the decrease in the number of Lianjia stores in the third quarter of 2023 compared to the same period of 2022.
- Other costs. The Company’s other costs increased to RMB480 million (US
$66 million ) in the third quarter of 2023 from RMB407 million in the same period of 2022, mainly due to an increase in share-based compensation expenses and the increase in maintenance costs of rental property management services.
Gross Profit
Gross profit increased by
Income (Loss) from Operations
Total operating expenses increased by
- General and administrative expenses increased by
4.8% to RMB1,862 million (US$255 million ) in the third quarter of 2023 from RMB1,777 million in the same period of 2022, mainly due to the decrease of reversal for credit loss, which was partially offset by the decrease in personnel costs compared to the same period of 2022.
- Sales and marketing expenses increased by
29.6% to RMB1,631 million (US$223 million ) in the third quarter of 2023 from RMB1,258 million in the same period of 2022, mainly due to the increase in sales and marketing expenses for home renovation and furnishing along with the growth of net revenues from home renovation and furnishing.
- Research and development expenses decreased by
7.4% to RMB472 million (US$65 million ) in the third quarter of 2023 from RMB509 million in the same period of 2022, mainly due to the decreases in personnel costs and share-based compensation as a result of decreased headcount in research and development personnel in the third quarter of 2023 compared to the same period of 2022.
Income from operations was RMB911 million (US
Adjusted income from operations6 was RMB1,886 million (US
Net Income (Loss)
Net income was RMB1,170 million (US
Adjusted net income was RMB2,159 million (US
Net Income (Loss) attributable to KE Holdings Inc.’s Ordinary Shareholders
Net income attributable to KE Holdings Inc.’s ordinary shareholders was RMB1,158 million (US
Adjusted net income attributable to KE Holdings Inc.’s ordinary shareholders9 was RMB2,147 million (US
Net Income (Loss) per ADS
Basic and diluted net income per ADS attributable to KE Holdings Inc.’s ordinary shareholders10 were RMB0.99 (US
Adjusted basic and diluted net income per ADS attributable to KE Holdings Inc.’s ordinary shareholders11 were RMB1.84 (US
Cash, Cash Equivalents, Restricted Cash and Short-Term Investments
As of September 30, 2023, the combined balance of the Company’s cash, cash equivalents, restricted cash and short-term investments amounted to RMB60.4 billion (US
Business Outlook
For the fourth quarter of 2023, the Company expects the total net revenues to be between RMB18.0 billion (US
Share Repurchase Program
As previously disclosed, the Company established a share repurchase program in August 2022 and upsized and extended it in August 2023, under which the Company may purchase up to US
Conference Call Information
The Company will hold an earnings conference call at 7:00 A.M. U.S. Eastern Time on Wednesday, November 8, 2023 (8:00 P.M. Beijing/Hong Kong Time on Wednesday, November 8, 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:
English Line: https://s1.c-conf.com/diamondpass/10034424-6dgyf8.html
Chinese Simultaneous Interpretation Line (listen-only mode): https://s1.c-conf.com/diamondpass/10034531-nfg7dv.html
A replay of the conference call will be accessible through November 15, 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 (English line): | 10034424 |
| Replay PIN (Chinese simultaneous interpretation line): | 10034531 |
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 RMB7.2960 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.’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, (ii) share-based compensation expenses, (iii) amortization of intangible assets, (iv) depreciation of property, plant and equipment, (v) interest income, net, (vi) changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration, (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 customers efficiently navigate and complete housing transactions and services in China, ranging from existing and new home sales, home rentals, to home renovation and furnishing, and other services. The Company owns and operates Lianjia, China’s leading real estate brokerage brand and an integral part of its Beike platform. With more 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.
For investor and media inquiries, please contact:
In China:
KE Holdings Inc.
Investor Relations
Siting Li
E-mail: ir@ke.com
Piacente Financial Communications
Jenny Cai
Tel: +86-10-6508-0677
E-mail: ke@tpg-ir.com
In the United States:
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: ke@tpg-ir.com
Source: KE Holdings Inc.
| KE Holdings Inc. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (All amounts in thousands, except for share, per share data) | |||||
| As of December 31, | As of September 30, | ||||
| 2022 | 2023 | ||||
| RMB | RMB | US$ | |||
| ASSETS | |||||
| Current assets | |||||
| Cash and cash equivalents | 19,413,202 | 15,838,754 | 2,170,882 | ||
| Restricted cash | 6,181,057 | 6,156,622 | 843,835 | ||
| Short-term investments | 35,485,908 | 38,408,111 | 5,264,270 | ||
| Short-term financing receivables, net of allowance for credit losses of RMB139,427 and RMB129,818 as of December 31, 2022 and September 30, 2023, respectively | 667,224 | 266,557 | 36,535 | ||
| Accounts receivable and contract assets, net of allowance for credit losses of RMB2,088,478 and RMB1,669,694 as of December 31, 2022 and September 30, 2023, respectively | 4,163,022 | 2,770,909 | 379,785 | ||
| Amounts due from and prepayments to related parties | 405,956 | 438,218 | 60,063 | ||
| Loan receivables from related parties | 50,463 | 26,495 | 3,631 | ||
| Prepayments, receivables and other assets | 4,057,843 | 5,268,332 | 722,085 | ||
| Total current assets | 70,424,675 | 69,173,998 | 9,481,086 | ||
| Non-current assets | |||||
| Property, plant and equipment, net | 2,036,553 | 1,910,480 | 261,853 | ||
| Right-of-use assets | 11,284,070 | 16,060,646 | 2,201,295 | ||
| Long-term investments, net | 17,925,653 | 24,031,090 | 3,293,735 | ||
| Intangible assets, net | 1,686,976 | 1,227,537 | 168,248 | ||
| Goodwill | 4,934,235 | 4,914,238 | 673,552 | ||
| Long-term loan receivables from related parties | 22,934 | 31,020 | 4,252 | ||
| Other non-current assets | 1,032,251 | 1,035,737 | 141,960 | ||
| Total non-current assets | 38,922,672 | 49,210,748 | 6,744,895 | ||
| TOTAL ASSETS | 109,347,347 | 118,384,746 | 16,225,981 | ||
| 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 September 30, | ||||
| 2022 | 2023 | ||||
| RMB | RMB | US$ | |||
| LIABILITIES | |||||
| Current liabilities | |||||
| Accounts payable | 5,843,321 | 5,495,539 | 753,226 | ||
| Amounts due to related parties | 425,685 | 385,264 | 52,805 | ||
| Employee compensation and welfare payable | 9,365,512 | 8,009,013 | 1,097,727 | ||
| Customer deposits payable | 4,194,828 | 3,937,504 | 539,680 | ||
| Income taxes payable | 542,290 | 782,358 | 107,231 | ||
| Short-term borrowings | 619,000 | 520,032 | 71,276 | ||
| Lease liabilities current portion | 4,972,345 | 8,093,853 | 1,109,355 | ||
| Contract liabilities | 3,260,269 | 4,712,694 | 645,928 | ||
| Accrued expenses and other current liabilities | 4,118,068 | 6,038,166 | 827,601 | ||
| Total current liabilities | 33,341,318 | 37,974,423 | 5,204,829 | ||
| Non-current liabilities | |||||
| Deferred tax liabilities | 351,186 | 351,186 | 48,134 | ||
| Lease liabilities non-current portion | 6,599,930 | 8,091,884 | 1,109,085 | ||
| Other non-current liabilities | 475 | 389 | 53 | ||
| Total non-current liabilities | 6,951,591 | 8,443,459 | 1,157,272 | ||
| TOTAL LIABILITIES | 40,292,909 | 46,417,882 | 6,362,101 | ||
| 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 September 30, | |||||||
| 2022 | 2023 | |||||||
| RMB | RMB | US$ | ||||||
| SHAREHOLDERS’ EQUITY | ||||||||
| KE Holdings Inc. shareholders’ equity | ||||||||
| Ordinary shares (US | 487 | 483 | 66 | |||||
| Treasury shares | (225,329 | ) | (944,527 | ) | (129,458 | ) | ||
| Additional paid-in capital | 80,302,956 | 78,084,733 | 10,702,403 | |||||
| Statutory reserves | 660,817 | 660,817 | 90,573 | |||||
| Accumulated other comprehensive income (loss) | (412,721 | ) | 249,757 | 34,232 | ||||
| Accumulated deficit | (11,405,850 | ) | (6,192,231 | ) | (848,716 | ) | ||
| Total KE Holdings Inc. shareholders' equity | 68,920,360 | 71,859,032 | 9,849,100 | |||||
| Non-controlling interests | 134,078 | 107,832 | 14,780 | |||||
| TOTAL SHAREHOLDERS' EQUITY | 69,054,438 | 71,966,864 | 9,863,880 | |||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 109,347,347 | 118,384,746 | 16,225,981 | |||||
| KE Holdings Inc. UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (All amounts in thousands, except for share, per share data, ADS and per ADS data) | |||||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
| September 30, 2022 | September 30, 2023 | September 30, 2023 | September 30, 2022 | September 30, 2023 | September 30, 2023 | ||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
| Net revenues | |||||||||||||||||
| Existing home transaction services | 7,156,681 | 6,307,085 | 864,458 | 18,842,946 | 21,904,172 | 3,002,217 | |||||||||||
| New home transaction services | 7,792,812 | 5,901,966 | 808,932 | 20,369,105 | 23,001,680 | 3,152,643 | |||||||||||
| Home renovation and furnishing | 1,845,900 | 3,176,739 | 435,408 | 2,952,816 | 7,209,569 | 988,154 | |||||||||||
| Emerging and other services | 801,189 | 2,424,915 | 332,362 | 1,756,772 | 5,457,285 | 747,983 | |||||||||||
| Total net revenues | 17,596,582 | 17,810,705 | 2,441,160 | 43,921,639 | 57,572,706 | 7,890,997 | |||||||||||
| Cost of revenues | |||||||||||||||||
| Commission-split | (5,665,913 | ) | (5,451,749 | ) | (747,224 | ) | (14,468,847 | ) | (18,764,937 | ) | (2,571,949 | ) | |||||
| Commission and compensation-internal | (4,637,956 | ) | (4,016,402 | ) | (550,494 | ) | (13,621,751 | ) | (13,676,434 | ) | (1,874,511 | ) | |||||
| Cost of home renovation and furnishing | (1,303,785 | ) | (2,252,251 | ) | (308,697 | ) | (2,094,831 | ) | (5,077,310 | ) | (695,903 | ) | |||||
| Cost related to stores | (821,954 | ) | (729,388 | ) | (99,971 | ) | (2,581,786 | ) | (2,145,039 | ) | (294,002 | ) | |||||
| Others | (407,377 | ) | (479,935 | ) | (65,781 | ) | (1,466,635 | ) | (1,335,018 | ) | (182,978 | ) | |||||
| Total cost of revenues(1) | (12,836,985 | ) | (12,929,725 | ) | (1,772,167 | ) | (34,233,850 | ) | (40,998,738 | ) | (5,619,343 | ) | |||||
| Gross profit | 4,759,597 | 4,880,980 | 668,993 | 9,687,789 | 16,573,968 | 2,271,654 | |||||||||||
| Operating expenses | |||||||||||||||||
| Sales and marketing expenses(1) | (1,258,104 | ) | (1,630,543 | ) | (223,485 | ) | (3,240,617 | ) | (4,573,815 | ) | (626,894 | ) | |||||
| General and administrative expenses(1) | (1,776,531 | ) | (1,862,347 | ) | (255,256 | ) | (5,554,339 | ) | (5,588,830 | ) | (766,012 | ) | |||||
| Research and development expenses(1) | (509,296 | ) | (471,631 | ) | (64,642 | ) | (2,036,886 | ) | (1,403,160 | ) | (192,319 | ) | |||||
| Impairment of goodwill, intangible assets and other long-lived assets | - | (5,201 | ) | (713 | ) | (76,244 | ) | (37,976 | ) | (5,205 | ) | ||||||
| Total operating expenses | (3,543,931 | ) | (3,969,722 | ) | (544,096 | ) | (10,908,086 | ) | (11,603,781 | ) | (1,590,430 | ) | |||||
| Income (loss) from operations | 1,215,666 | 911,258 | 124,897 | (1,220,297 | ) | 4,970,187 | 681,224 | ||||||||||
| Interest income, net | 214,716 | 349,143 | 47,854 | 488,170 | 951,369 | 130,396 | |||||||||||
| Share of results of equity investees | 13,187 | 12,753 | 1,748 | 44,657 | 27,228 | 3,732 | |||||||||||
| Impairment loss for equity investments accounted for equity method | - | (6,182 | ) | (847 | ) | - | (6,182 | ) | (847 | ) | |||||||
| Fair value changes in investments, net | (38,545 | ) | 1,187 | 163 | (378,497 | ) | 74,193 | 10,169 | |||||||||
| Impairment loss for equity investments accounted for using Measurement Alternative | (240,870 | ) | (2,882 | ) | (395 | ) | (491,872 | ) | (12,195 | ) | (1,671 | ) | |||||
| Foreign currency exchange income (loss) | (151,951 | ) | 96,336 | 13,204 | (192,693 | ) | 80,503 | 11,034 | |||||||||
| Other income, net | 143,485 | 309,914 | 42,477 | 1,040,133 | 1,037,197 | 142,160 | |||||||||||
| Income (loss) before income tax expense | 1,155,688 | 1,671,527 | 229,101 | (710,399 | ) | 7,122,300 | 976,197 | ||||||||||
| Income tax expense | (439,540 | ) | (501,237 | ) | (68,700 | ) | (1,058,795 | ) | (1,902,759 | ) | (260,795 | ) | |||||
| Net income (loss) | 716,148 | 1,170,290 | 160,401 | (1,769,194 | ) | 5,219,541 | 715,402 | ||||||||||
| KE Holdings Inc. UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Continued) (All amounts in thousands, except for share, per share data, ADS and per ADS data) | |||||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
| September 30, 2022 | September 30, 2023 | September 30, 2023 | September 30, 2022 | September 30, 2023 | September 30, 2023 | ||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
| Net loss (income) attributable to non-controlling interests shareholders | 7,040 | (12,248 | ) | (1,679 | ) | 6,088 | (5,922 | ) | (812 | ) | |||||||
| Net income (loss) attributable to KE Holdings Inc. | 723,188 | 1,158,042 | 158,722 | (1,763,106 | ) | 5,213,619 | 714,590 | ||||||||||
| Net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders | 723,188 | 1,158,042 | 158,722 | (1,763,106 | ) | 5,213,619 | 714,590 | ||||||||||
| Net income (loss) | 716,148 | 1,170,290 | 160,401 | (1,769,194 | ) | 5,219,541 | 715,402 | ||||||||||
| Currency translation adjustments | 1,682,372 | (180,974 | ) | (24,805 | ) | 3,081,267 | 712,745 | 97,690 | |||||||||
| Unrealized loss on available-for-sale investments, net of reclassification | (187,637 | ) | (49,243 | ) | (6,749 | ) | (497,030 | ) | (50,267 | ) | (6,890 | ) | |||||
| Total comprehensive income | 2,210,883 | 940,073 | 128,847 | 815,043 | 5,882,019 | 806,202 | |||||||||||
| Comprehensive loss (income) attributable to non-controlling interests shareholders | 7,040 | (12,248 | ) | (1,679 | ) | 6,088 | (5,922 | ) | (812 | ) | |||||||
| Comprehensive income attributable to KE Holdings Inc. | 2,217,923 | 927,825 | 127,168 | 821,131 | 5,876,097 | 805,390 | |||||||||||
| Comprehensive income attributable to KE Holdings Inc.’s ordinary shareholders | 2,217,923 | 927,825 | 127,168 | 821,131 | 5,876,097 | 805,390 | |||||||||||
| KE Holdings Inc. UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Continued) (All amounts in thousands, except for share, per share data, ADS and per ADS data) | ||||||||||||
| For the Three Months Ended | For the Nine Months Ended | |||||||||||
| September 30, 2022 | September 30, 2023 | September 30, 2023 | September 30, 2022 | September 30, 2023 | September 30, 2023 | |||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||
| Weighted average number of ordinary shares used in computing net income (loss) per share, basic and diluted | ||||||||||||
| —Basic | 3,577,393,051 | 3,491,785,849 | 3,491,785,849 | 3,571,697,160 | 3,527,781,652 | 3,527,781,652 | ||||||
| —Diluted | 3,624,210,190 | 3,569,150,049 | 3,569,150,049 | 3,571,697,160 | 3,612,305,297 | 3,612,305,297 | ||||||
| Weighted average number of ADS used in computing net income (loss) per ADS, basic and diluted | ||||||||||||
| —Basic | 1,192,464,350 | 1,163,928,616 | 1,163,928,616 | 1,190,565,720 | 1,175,927,217 | 1,175,927,217 | ||||||
| —Diluted | 1,208,070,063 | 1,189,716,683 | 1,189,716,683 | 1,190,565,720 | 1,204,101,766 | 1,204,101,766 | ||||||
| Net income (loss) per share attributable to KE Holdings Inc.'s ordinary shareholders | ||||||||||||
| —Basic | 0.20 | 0.33 | 0.05 | (0.49 | ) | 1.48 | 0.20 | |||||
| —Diluted | 0.20 | 0.32 | 0.04 | (0.49 | ) | 1.44 | 0.20 | |||||
| Net income (loss) per ADS attributable to KE Holdings Inc.'s ordinary shareholders | ||||||||||||
| —Basic | 0.61 | 0.99 | 0.14 | (1.48 | ) | 4.43 | 0.61 | |||||
| —Diluted | 0.60 | 0.97 | 0.13 | (1.48 | ) | 4.33 | 0.59 | |||||
| (1) Includes share-based compensation expenses as follows: | ||||||||||||
| Cost of revenues | 90,250 | 136,990 | 18,776 | 265,635 | 363,556 | 49,829 | ||||||
| Sales and marketing expenses | 29,994 | 51,637 | 7,077 | 89,553 | 129,118 | 17,697 | ||||||
| General and administrative expenses | 562,091 | 576,635 | 79,035 | 1,110,123 | 1,765,532 | 241,987 | ||||||
| Research and development expenses | 60,276 | 48,867 | 6,698 | 234,759 | 138,905 | 19,038 | ||||||
| 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 Nine Months Ended | ||||||||||||||||
| September 30, 2022 | September 30, 2023 | September 30, 2023 | September 30, 2022 | September 30, 2023 | September 30, 2023 | ||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
| Income (loss) from operations | 1,215,666 | 911,258 | 124,897 | (1,220,297 | ) | 4,970,187 | 681,224 | ||||||||||
| Share-based compensation expenses | 742,611 | 814,129 | 111,586 | 1,700,070 | 2,397,111 | 328,551 | |||||||||||
| Amortization of intangible assets resulting from acquisitions and business cooperation agreement | 149,923 | 155,495 | 21,312 | 412,382 | 458,268 | 62,811 | |||||||||||
| Impairment of goodwill, intangible assets and other long-lived assets | - | 5,201 | 713 | 76,244 | 37,976 | 5,205 | |||||||||||
| Adjusted income from operations | 2,108,200 | 1,886,083 | 258,508 | 968,399 | 7,863,542 | 1,077,791 | |||||||||||
| Net income (loss) | 716,148 | 1,170,290 | 160,401 | (1,769,194 | ) | 5,219,541 | 715,402 | ||||||||||
| Share-based compensation expenses | 742,611 | 814,129 | 111,586 | 1,700,070 | 2,397,111 | 328,551 | |||||||||||
| Amortization of intangible assets resulting from acquisitions and business cooperation agreement | 149,923 | 155,495 | 21,312 | 412,382 | 458,268 | 62,811 | |||||||||||
| Changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration | 44,972 | 11,720 | 1,606 | 397,195 | (26,861 | ) | (3,682 | ) | |||||||||
| Impairment of goodwill, intangible assets and other long-lived assets | - | 5,201 | 713 | 76,244 | 37,976 | 5,205 | |||||||||||
| Impairment of investments | 240,870 | 9,064 | 1,242 | 491,872 | 18,377 | 2,519 | |||||||||||
| Tax effects on non-GAAP adjustments | (6,561 | ) | (6,560 | ) | (899 | ) | (12,391 | ) | (19,682 | ) | (2,698 | ) | |||||
| Adjusted net income | 1,887,963 | 2,159,339 | 295,961 | 1,296,178 | 8,084,730 | 1,108,108 | |||||||||||
| Net income (loss) | 716,148 | 1,170,290 | 160,401 | (1,769,194 | ) | 5,219,541 | 715,402 | ||||||||||
| Income tax expense | 439,540 | 501,237 | 68,700 | 1,058,795 | 1,902,759 | 260,795 | |||||||||||
| Share-based compensation expenses | 742,611 | 814,129 | 111,586 | 1,700,070 | 2,397,111 | 328,551 | |||||||||||
| Amortization of intangible assets | 154,330 | 158,893 | 21,778 | 425,836 | 468,807 | 64,255 | |||||||||||
| Depreciation of property, plant and equipment | 219,214 | 193,791 | 26,561 | 687,262 | 578,606 | 79,305 | |||||||||||
| Interest income, net | (214,716 | ) | (349,143 | ) | (47,854 | ) | (488,170 | ) | (951,369 | ) | (130,396 | ) | |||||
| Changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration | 44,972 | 11,720 | 1,606 | 397,195 | (26,861 | ) | (3,682 | ) | |||||||||
| Impairment of goodwill, intangible assets and other long-lived assets | - | 5,201 | 713 | 76,244 | 37,976 | 5,205 | |||||||||||
| Impairment of investments | 240,870 | 9,064 | 1,242 | 491,872 | 18,377 | 2,519 | |||||||||||
| Adjusted EBITDA | 2,342,969 | 2,515,182 | 344,733 | 2,579,910 | 9,644,947 | 1,321,954 | |||||||||||
| Net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders | 723,188 | 1,158,042 | 158,722 | (1,763,106 | ) | 5,213,619 | 714,590 | ||||||||||
| Share-based compensation expenses | 742,611 | 814,129 | 111,586 | 1,700,070 | 2,397,111 | 328,551 | |||||||||||
| Amortization of intangible assets resulting from acquisitions and business cooperation agreement | 149,923 | 155,495 | 21,312 | 412,382 | 458,268 | 62,811 | |||||||||||
| Changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration | 44,972 | 11,720 | 1,606 | 397,195 | (26,861 | ) | (3,682 | ) | |||||||||
| Impairment of goodwill, intangible assets and other long-lived assets | - | 5,201 | 713 | 76,244 | 37,976 | 5,205 | |||||||||||
| Impairment of investments | 240,870 | 9,064 | 1,242 | 491,872 | 18,377 | 2,519 | |||||||||||
| Tax effects on non-GAAP adjustments | (6,561 | ) | (6,560 | ) | (899 | ) | (12,391 | ) | (19,682 | ) | (2,698 | ) | |||||
| Effects of non-GAAP adjustments on net income attributable to non-controlling interests shareholders | (7 | ) | (7 | ) | (1 | ) | (21 | ) | (21 | ) | (3 | ) | |||||
| Adjusted net income attributable to KE Holdings Inc.’s ordinary shareholders | 1,894,996 | 2,147,084 | 294,281 | 1,302,245 | 8,078,787 | 1,107,293 | |||||||||||
| 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 Nine Months Ended | |||||||||||
| September 30, 2022 | September 30, 2023 | September 30, 2023 | September 30, 2022 | September 30, 2023 | September 30, 2023 | |||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||
| Weighted average number of ADS used in computing net income (loss) per ADS, basic and diluted | ||||||||||||
| —Basic | 1,192,464,350 | 1,163,928,616 | 1,163,928,616 | 1,190,565,720 | 1,175,927,217 | 1,175,927,217 | ||||||
| —Diluted | 1,208,070,063 | 1,189,716,683 | 1,189,716,683 | 1,190,565,720 | 1,204,101,766 | 1,204,101,766 | ||||||
| Weighted average number of ADS used in calculating adjusted net income (loss) per ADS, basic and diluted | ||||||||||||
| —Basic | 1,192,464,350 | 1,163,928,616 | 1,163,928,616 | 1,190,565,720 | 1,175,927,217 | 1,175,927,217 | ||||||
| —Diluted | 1,208,070,063 | 1,189,716,683 | 1,189,716,683 | 1,200,944,043 | 1,204,101,766 | 1,204,101,766 | ||||||
| Net income (loss) per ADS attributable to KE Holdings Inc.'s ordinary shareholders | ||||||||||||
| —Basic | 0.61 | 0.99 | 0.14 | (1.48 | ) | 4.43 | 0.61 | |||||
| —Diluted | 0.60 | 0.97 | 0.13 | (1.48 | ) | 4.33 | 0.59 | |||||
| Non-GAAP adjustments to net income per ADS attributable to KE Holdings Inc.'s ordinary shareholders | ||||||||||||
| —Basic | 0.98 | 0.85 | 0.12 | 2.57 | 2.44 | 0.33 | ||||||
| —Diluted | 0.97 | 0.83 | 0.11 | 2.56 | 2.38 | 0.33 | ||||||
| Adjusted net income per ADS attributable to KE Holdings Inc.'s ordinary shareholders | ||||||||||||
| —Basic | 1.59 | 1.84 | 0.26 | 1.09 | 6.87 | 0.94 | ||||||
| —Diluted | 1.57 | 1.80 | 0.24 | 1.08 | 6.71 | 0.92 | ||||||
| KE Holdings Inc. UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (All amounts in thousands) | |||||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
| September 30, 2022 | September 30, 2023 | September 30, 2023 | September 30, 2022 | September 30, 2023 | September 30, 2023 | ||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
| Net cash provided by operating activities | 2,005,528 | 1,956,650 | 268,183 | 5,813,559 | 9,388,339 | 1,286,777 | |||||||||||
| Net cash provided by (used in) investing activities | 3,850,877 | (15,323,257 | ) | (2,100,228 | ) | (7,487,442 | ) | (7,689,643 | ) | (1,053,952 | ) | ||||||
| Net cash used in financing activities | (277,366 | ) | (2,614,917 | ) | (358,406 | ) | (241,494 | ) | (5,484,524 | ) | (751,716 | ) | |||||
| Effect of exchange rate change on cash, cash equivalents and restricted cash | (155,503 | ) | 164,808 | 22,589 | (12,893 | ) | 186,945 | 25,623 | |||||||||
| Net increase (decrease) in cash and cash equivalents and restricted cash | 5,423,536 | (15,816,716 | ) | (2,167,862 | ) | (1,928,270 | ) | (3,598,883 | ) | (493,268 | ) | ||||||
| Cash, cash equivalents and restricted cash at the beginning of the period | 19,380,403 | 37,812,092 | 5,182,579 | 26,732,209 | 25,594,259 | 3,507,985 | |||||||||||
| Cash, cash equivalents and restricted cash at the end of the period | 24,803,939 | 21,995,376 | 3,014,717 | 24,803,939 | 21,995,376 | 3,014,717 | |||||||||||
| KE Holdings Inc. UNAUDITED SEGMENT CONTRIBUTION MEASURE (All amounts in thousands) | |||||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
| September 30, 2022 | September 30, 2023 | September 30, 2023 | September 30, 2022 | September 30, 2023 | September 30, 2023 | ||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||
| Existing home transaction services | |||||||||||||||||
| Net revenues | 7,156,681 | 6,307,085 | 864,458 | 18,842,946 | 21,904,172 | 3,002,217 | |||||||||||
| Less: Commission and compensation | (3,857,541 | ) | (3,237,237 | ) | (443,700 | ) | (11,189,270 | ) | (11,407,196 | ) | (1,563,486 | ) | |||||
| Contribution | 3,299,140 | 3,069,848 | 420,758 | 7,653,676 | 10,496,976 | 1,438,731 | |||||||||||
| New home transaction services | |||||||||||||||||
| Net revenues | 7,792,812 | 5,901,966 | 808,932 | 20,369,105 | 23,001,680 | 3,152,643 | |||||||||||
| Less: Commission and compensation | (5,848,758 | ) | (4,418,771 | ) | (605,643 | ) | (15,773,900 | ) | (16,880,830 | ) | (2,313,710 | ) | |||||
| Contribution | 1,944,054 | 1,483,195 | 203,289 | 4,595,205 | 6,120,850 | 838,933 | |||||||||||
| Home renovation and furnishing | |||||||||||||||||
| Net revenues | 1,845,900 | 3,176,739 | 435,408 | 2,952,816 | 7,209,569 | 988,154 | |||||||||||
| Less: Material costs, commission and compensation costs | (1,303,785 | ) | (2,252,251 | ) | (308,697 | ) | (2,094,831 | ) | (5,077,310 | ) | (695,903 | ) | |||||
| Contribution | 542,115 | 924,488 | 126,711 | 857,985 | 2,132,259 | 292,251 | |||||||||||
| Emerging and other services | |||||||||||||||||
| Net revenues | 801,189 | 2,424,915 | 332,362 | 1,756,772 | 5,457,285 | 747,983 | |||||||||||
| Less: Commission and compensation | (597,570 | ) | (1,812,143 | ) | (248,375 | ) | (1,127,428 | ) | (4,153,345 | ) | (569,264 | ) | |||||
| Contribution | 203,619 | 612,772 | 83,987 | 629,344 | 1,303,940 | 178,719 | |||||||||||
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 39,713 as of September 30, 2022.
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 372,718 as of September 30, 2022.
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, and (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, (ii) share-based compensation expenses, (iii) amortization of intangible assets, (iv) depreciation of property, plant and equipment, (v) interest income, net, (vi) changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration, (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.
FAQ
What was the Gross Transaction Value (GTV) for existing home transactions in Q3 2023?
What was the net income for Q3 2023?
What is the company's corporate strategy?
