• KE Holdings Inc. Announces Fourth Quarter and Fiscal Year 2023 Unaudited Financial Results and a Final Cash Dividend

    Source: Nasdaq GlobeNewswire / 14 Mar 2024 06:00:56   America/New_York

    BEIJING, March 14, 2024 (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 fourth quarter and fiscal year ended December 31, 2023 and a final cash dividend.

    Business and Financial Highlights for the Fourth Quarter and Fiscal Year 2023

    • Gross transaction value (GTV)1 in 2023 was RMB3,142.9 billion (US$442.7 billion), an increase of 20.4% year-over-year. GTV of existing home transactions was RMB2,028.0 billion (US$285.6 billion), an increase of 28.6% year-over-year. GTV of new home transactions was RMB1,003.0 billion (US$141.3 billion), an increase of 6.7% year-over-year. GTV of home renovation and furnishing was RMB13.3 billion (US$1.9 billion), an increase of 145.8% year-over-year. GTV of emerging and other services was RMB98.6 billion (US$13.9 billion), an increase of 12.9% year-over-year.

      In the fourth quarter of 2023, GTV was RMB735.6 billion (US$103.6 billion), an increase of 13.7% year-over-year. GTV of existing home transactions was RMB468.1 billion (US$65.9 billion), an increase of 30.1% year-over-year. GTV of new home transactions was RMB238.0 billion (US$33.5 billion), a decrease of 9.7% year-over-year. GTV of home renovation and furnishing was RMB3.9 billion (US$0.6 billion), an increase of 99.7% year-over-year. GTV of emerging and other services was RMB25.6 billion (US$3.6 billion), an increase of 18.0% year-over-year.

    • Net revenues in 2023 were RMB77.8 billion (US$11.0 billion), an increase of 28.2% year-over-year.

      In the fourth quarter of 2023, net revenues were RMB20.2 billion (US$2.8 billion), an increase of 20.6% year-over-year.

    • Net income in 2023 was RMB5,890 million (US$830 million), compared to net loss of RMB1,397 million in 2022. Adjusted net income2 in 2023 was RMB9,798 million (US$1,380 million), an increase of 244.7% year-over-year.

      In the fourth quarter of 2023, net income was RMB670 million (US$94 million), an increase of 80.2% year-over-year. Adjusted net income was RMB1,714 million (US$241 million), an increase of 10.8% year-over-year.

    • Number of stores was 43,817 as of December 31, 2023, an 8.1% increase from one year ago. Number of active stores3 was 42,021 as of December 31, 2023, a 12.2% increase from one year ago.

    • Number of agents was 427,656 as of December 31, 2023, an 8.5% increase from one year ago. Number of active agents4 was 397,135 as of December 31, 2023, a 13.6% increase from one year ago.

    • Mobile monthly active users (MAU)5 averaged 43.2 million in the fourth quarter of 2023, compared to 36.6 million in the same period of 2022.

    Mr. Stanley Yongdong Peng, Chairman of the Board and Chief Executive Officer of Beike, commented, “Over the past few years, we have directly encountered various challenges, proactively made a series of adjustments in business operations, and strategically embraced the broader housing services market to build a tech-driven one-stop residential services platform. These efforts led us to achieve significantly better-than-market housing transaction services performance in 2023, while our home renovation and furnishing business, as well as Beike rental business both achieving scale breakthroughs and significant advancements in industry understanding. The Company's profitability and risk resilience have also improved to better than ever. Looking forward, we are filled with hope. In 2024, we aim for steady progress, focusing on quality and efficiency, and seek innovative solutions, including digitalization and technology advancements, to solve new problems posed by the external environment.”

    “Looking 20 years ahead, strategies that were effective in the past may no longer work, and new ones may take their place. One of our major tasks in 2024 is to think about and address these long-term issues. We now have a solid foundation—we have the space to make our mark in the vast residential sector, our team has the trust and unity formed through battles fought together, we increasingly resemble an invincible team. In 2024, we will undoubtedly see new possibilities, and all challenges will only lead us to better outcomes,” concluded Mr. Peng.

    Mr. Tao Xu, Executive Director and Chief Financial Officer of Beike, added, “In 2023, the Chinese real estate market deepened its transformation, with the existing and new home market showing differentiated performance. Facing an evolving environment, our performance in 2023 demonstrated remarkable resilience. Our series of measures to reduce costs, enhance efficiency, and mitigate risks have brought us significant operating leverage.

    The business of housing transaction services grew steadily, while our home renovation and furnishing and emerging services achieved breakthroughs in scale. Our profitability has significantly improved. Our full-year net revenues reached RMB77.8 billion, up 28.2% year-over-year. Both our annual existing and new home transaction services’ contribution margins set new historic highs, bringing our full-year net income to around RMB5.9 billion. Our earnings quality improved meaningfully as well, and we realized a net operating cash inflow of RMB11.2 billion in 2023, 1.1 times of our adjusted net income for the year.

    We also placed great emphasis on shareholders’ returns. We established a share repurchase program, and in 2023, we have repurchased shares with a total consideration of around US$719 million under the program. All shares repurchased in 2023 have been canceled. By distributing a special cash dividend of approximately US$0.2 billion during the third quarter, we are here to declare a final cash dividend, with an aggregate amount of approximately US$0.4 billion, aiming to share the value we create with our shareholders.

    We believe that our excellent financial management capabilities will safeguard the healthy growth of our Company, helping us navigate through cyclical fluctuations and achieve more organic and efficient growth.”

    Fourth Quarter 2023 Financial Results

    Net Revenues

    Net revenues increased by 20.6% to RMB20.2 billion (US$2.8 billion) in the fourth quarter of 2023 from RMB16.7 billion in the same period of 2022. The increase was primarily attributable to the increase of net revenues from home renovation and furnishing, rental property management services and existing home transaction services, partially offset by the decrease of net revenues from new home transaction services. Total GTV increased by 13.7% to RMB735.6 billion (US$103.6 billion) in the fourth quarter of 2023 from RMB647.0 billion in the same period of 2022, primarily attributable to a) the low base effect on existing home transaction market in the fourth quarter of 2022, b) the recovery of existing home transaction market due to supportive polices, and a more active existing home market performance especially in second and lower tier cities, and c) our proactive and strategic expansion that helped us deepen our market penetration and enhance our sales-through, partially offset by the soft market sentiment in new home transactions.

    • Net revenues from existing home transaction services increased by 14.6% to RMB6.0 billion (US$0.9 billion) in the fourth quarter of 2023 from RMB5.3 billion in the same period of 2022, primarily attributable to the increase of the GTV of existing home transactions of 30.1% to RMB468.1 billion (US$65.9 billion) in the fourth quarter of 2023 from RMB359.9 billion in the same period of 2022. The higher growth of the GTV of existing home transaction services compared to that of net revenues was primarily attributable to a higher contribution from GTV of existing home transaction services served by connected agents on the Company’s platform, for which revenue is recorded on a net basis from platform service, franchise service and other value-added services, while for GTV served by Lianjia brand, the revenue is recorded on a gross commission revenue basis.

      Among that, (i) commission revenue increased by 9.9% to RMB4.9 billion (US$0.7 billion) in the fourth quarter of 2023 from RMB4.4 billion in the same period of 2022, primarily due to an increase in GTV of existing home transactions served by Lianjia stores of 16.6% to RMB188.1 billion (US$26.5 billion) in the fourth quarter of 2023 from RMB161.4 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 by 38.4% to RMB1.2 billion (US$0.2 billion) in the fourth quarter of 2023 from RMB0.9 billion in the same period of 2022, mainly due to an increase of GTV of existing home transactions served by connected agents on the Company’s platform of 41.1% to RMB280.0 billion (US$39.4 billion) in the fourth quarter of 2023 from RMB198.5 billion in the same period of 2022.

    • Net revenues from new home transaction services decreased by 8.5% to RMB7.6 billion (US$1.1 billion) in the fourth quarter of 2023 from RMB8.3 billion in the same period of 2022, primarily due to the decrease of GTV of new home transactions of 9.7% to RMB238.0 billion (US$33.5 billion) in the fourth quarter of 2023 from RMB263.5 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 by 10.6% to RMB189.7 billion (US$26.7 billion) in the fourth quarter of 2023 from RMB212.3 billion in the same period of 2022, and the GTV of new home transactions served by Lianjia brand decreased by 5.8% to RMB48.3 billion (US$6.8 billion) in the fourth quarter of 2023 from RMB51.3 billion in the same period of 2022.

    • Net revenues from home renovation and furnishing increased by 73.9% to RMB3.6 billion (US$0.5 billion) in the fourth quarter of 2023 from RMB2.1 billion in the same period of 2022, primarily attributable to a) the increase of orders driven by the synergetic effects from customer acquisition and conversion between home transaction services and home renovation and furnishing business, b) a larger contribution from furniture and home furnishing sales (in categories such as customized furniture, soft furnishings, and electrical appliances), and c) enhanced delivery capabilities.

    • Net revenues from emerging and other services increased by 169.3% to RMB2.9 billion (US$0.4 billion) in the fourth quarter of 2023 from RMB1.1 billion in the same period of 2022, primarily attributable to the increase of net revenues from rental property management services driven by the increase of the number of rental units under the Carefree Rent model.

    Cost of Revenues

    Total cost of revenues was to RMB15.1 billion (US$2.1 billion) in the fourth quarter of 2023, compared to RMB12.7 billion in the same period of 2022.

    • Commission – split. The Company’s cost of revenues for commissions to connected agents and other sales channels and property leasing costs of rental property management services was RMB6.9 billion (US$1.0 billion) in the fourth quarter of 2023, compared to RMB6.0 billion in the same period of 2022, primarily due to the increase in property leasing costs of rental property management services in the fourth quarter of 2023 compared with the same period of 2022, partially offset by the decrease in the GTV of new home transactions completed through connected agents and other sales channels.

    • Commission and compensation – internal. The Company’s cost of revenues for internal commission and compensation was RMB4.2 billion (US$0.6 billion) in the fourth quarter of 2023, relatively flat compared with RMB4.2 billion in the same period of 2022, primarily due to an increase in the GTV of existing home transactions completed through Lianjia agents, offset by the decreased GTV of 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 79.1% to RMB2.6 billion (US$0.4 billion) in the fourth quarter of 2023 from RMB1.5 billion in the same period of 2022, which was primarily attributable to the growth of net revenues from home renovation and furnishing.

    • Cost related to stores. The Company’s cost related to stores decreased by 4.9% to RMB0.7 billion (US$0.1 billion) in the fourth quarter of 2023, compared to RMB0.8 billion in the same period of 2022, mainly due to a slightly higher base in the fourth quarter of 2022 as a result of additional costs incurred from closing certain Lianjia stores during the market downturn.

    • Other costs. The Company’s other costs increased to RMB548 million (US$77 million) in the fourth quarter of 2023 from RMB160 million in the same period of 2022, mainly due to the increased human resources related costs, maintenance costs of rental property management services, share-based compensation expenses and tax and surcharges in line with the increased net revenues.

    Gross Profit

    Gross profit increased by 25.7% to RMB5.1 billion (US$0.7 billion) in the fourth quarter of 2023 from RMB4.1 billion in the same period of 2022. Gross margin was 25.5% in the fourth quarter of 2023, compared to 24.4% in the same period of 2022. The increase in gross margin was primarily due to a) a higher contribution margin for existing home transaction services led by the increased net revenues from existing home transaction services and the decreased fixed compensation costs for Lianjia agents and b) lower costs related to stores as a percentage of net revenues, partially offset by higher other costs as a percentage of net revenues in the fourth quarter of 2023 compared to the same period of 2022.

    Income (Loss) from Operations

    Total operating expenses increased by 43.5% to RMB5.3 billion (US$0.7 billion) in the fourth quarter of 2023 from RMB3.7 billion in the same period of 2022.

    • General and administrative expenses increased by 47.7% to RMB2,648 million (US$373 million) in the fourth quarter of 2023 from RMB1,792 million in the same period of 2022, mainly due to the increase of provision for credit loss and the increase in personnel costs compared to the same period of 2022.

    • Sales and marketing expenses increased by 56.1% to RMB2,080 million (US$293 million) in the fourth quarter of 2023 from RMB1,333 million in the same period of 2022, mainly due to the increase in sales and marketing expenses for home renovation and furnishing business in line with the growth of net revenues from home renovation and furnishing, and the increased expenses of the brand advertising and promotional marketing activities for home transaction services.

    • Research and development expenses increased by 4.9% to RMB534 million (US$75 million) in the fourth quarter of 2023 from RMB509 million in the same period of 2022, mainly due to the increase in personnel costs in the fourth quarter of 2023 compared to the same period of 2022.

    Loss from operations was RMB173 million (US$24 million) in the fourth quarter of 2023, compared to income from operations of RMB387 million in the same period of 2022. Operating margin was negative 0.9% in the fourth quarter of 2023, compared to 2.3% in the same period of 2022, primarily due to a) additional provision for credit loss of new home transaction services for a single developer, b) additional performance based incentives, and c) the increased contribution of net revenues from home renovation and furnishing and rental property management services, which was still in the ramp-up period with a relatively lower operating margin than that of home transaction services in the fourth quarter of 2023, compared to the same period of 2022.

    Adjusted income from operations6 was RMB856 million (US$121 million) in the fourth quarter of 2023, compared to RMB1,339 million in the same period of 2022. Adjusted operating margin7 was 4.2% in the fourth quarter of 2023, compared to 8.0% in the same period of 2022. Adjusted EBITDA8 was RMB1,700 million (US$239 million) in the fourth quarter of 2023, compared to RMB2,164 million in the same period of 2022.

    Net Income (Loss)

    Net income was RMB670 million (US$94 million) in the fourth quarter of 2023, compared to RMB372 million in the same period of 2022.

    Adjusted net income was RMB1,714 million (US$241 million) in the fourth quarter of 2023, compared to RMB1,547 million in the same period of 2022.

    Net Income (Loss) attributable to KE Holdings Inc.’s Ordinary Shareholders

    Net income attributable to KE Holdings Inc.’s ordinary shareholders was RMB670 million (US$94 million) in the fourth quarter of 2023, compared to RMB377 million in the same period of 2022.

    Adjusted net income attributable to KE Holdings Inc.’s ordinary shareholders9 was RMB1,713 million (US$241 million) in the fourth quarter of 2023, compared to RMB1,552 million in the same period of 2022.

    Net Income (Loss) per ADS

    Basic and diluted net income per ADS attributable to KE Holdings Inc.’s ordinary shareholders10 were RMB0.58 (US$0.08) and RMB0.56 (US$0.08) in the fourth quarter of 2023, respectively, compared to RMB0.32 and RMB0.31 in the same period of 2022, respectively.

    Adjusted basic and diluted net income per ADS attributable to KE Holdings Inc.’s ordinary shareholders11 were RMB1.49 (US$0.21) and RMB1.44 (US$0.20) in the fourth quarter of 2023, respectively, compared to RMB1.31 and RMB1.29 in the same period of 2022, respectively.

    Cash, Cash Equivalents, Restricted Cash and Short-Term Investments

    As of December 31, 2023, the combined balance of the Company’s cash, cash equivalents, restricted cash and short-term investments amounted to RMB60.1 billion (US$8.5 billion).

    Fiscal Year 2023 Financial Results

    Net Revenues

    Net revenues increased by 28.2% to RMB77.8 billion (US$11.0 billion) in 2023 from RMB60.7 billion in 2022. The increase was primarily attributable to an increase of total GTV of 20.4% to RMB3,142.9 billion (US$442.7 billion) in 2023 from RMB2,609.6 billion in 2022 driven by the recovery of existing home transaction market due to supportive polices and the release of pent-up demand especially in the first half of 2023, a more active existing home market performance especially in second and lower tier cities, and our proactive and strategic expansion that helped us deepen our market penetration and enhance our sales-through, as well as the expansion of the Company’s home renovation and furnishing business and rental property management services business.

    • Net revenues from existing home transaction services increased by 15.9% to RMB28.0 billion (US$3.9 billion) in 2023 from RMB24.1 billion in 2022, primarily attributable to the increase of the GTV of existing home transactions of 28.6% to RMB2,028.0 billion (US$285.6 billion) in 2023 from RMB1,576.5 billion in 2022. The higher growth of GTV of existing home transaction services compared to that of net revenues was primarily attributable to a higher contribution from GTV of existing home transaction services served by connected agents on the Company’s platform, for which revenue is recorded on a net basis from platform service, franchise service and other value-added services, while for GTV served by Lianjia brand, the revenue is recorded on a gross commission revenue basis.

      Among that, (i) commission revenue increased by 10.8% to RMB22.9 billion (US$3.2 billion) in 2023 from RMB20.6 billion in 2022, primarily due to an increase in GTV of existing home transactions served by Lianjia stores of 13.6% to RMB847.6 billion (US$119.4 billion) in 2023 from RMB746.4 billion in 2022; and

      (ii) revenues derived from platform service, franchise service and other value-added services, which are mostly charged to connected stores and agents on the Company’s platform, increased by 45.8% to RMB5.1 billion (US$0.7 billion) in 2023 from RMB3.5 billion in 2022, mainly due to a 42.2% increase of GTV of existing home transactions served by connected agents on the Company’s platform to RMB1,180.4 billion (US$166.2 billion) in 2023 from RMB830.1 billion in 2022.

    • Net revenues from new home transaction services increased by 6.7% to RMB30.6 billion (US$4.3 billion) in 2023 from RMB28.7 billion in 2022, primarily due to the increase of GTV of new home transactions of 6.7% to RMB1,003.0 billion (US$141.3 billion) in 2023 from RMB940.5 billion in 2022. Among that, the GTV of new home transactions served by Lianjia brand increased by 13.7% to RMB193.2 billion (US$27.2 billion) in 2023 from RMB170.0 billion in 2022, while 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 increased by 5.1% to RMB809.9 billion (US$114.1 billion) in 2023 from RMB770.5 billion in 2022.
    • Net revenues from home renovation and furnishing increased by 115.0% to RMB10.9 billion (US$1.5 billion) in 2023 from RMB5.0 billion in 2022, primarily attributable to a) the increase of orders driven by the synergetic effects from customer acquisition and conversion between home transaction services and home renovation and furnishing business, b) a larger contribution from furniture and home furnishing sales, and c) enhanced delivery capabilities.

    • Net revenues from emerging and other services increased by 194.8% to RMB8.4 billion (US$1.2 billion) in 2023 from RMB2.8 billion in 2022, primarily attributable to the increase of net revenues from rental property management services driven by the increase of the number of rental units under the Carefree Rent model.

    Cost of Revenues

    Total cost of revenues was to RMB56.1 billion (US$7.9 billion) in 2023, compared to RMB46.9 billion in 2022.

    • Commission – split. The Company’s cost of revenues for commissions to connected agents and other sales channels and property leasing costs of rental property management services was RMB25.7 billion (US$3.6 billion) in 2023, compared to RMB20.5 billion in 2022, primarily due to the increase in GTV of new home transactions completed through connected agents and other sales channels in 2023 compared with 2022 and the increase in property leasing costs of rental property management services.

    • Commission and compensation – internal. The Company’s cost of revenues for internal commission and compensation was RMB17.9 billion (US$2.5 billion) in 2023, relatively flat compared with RMB17.9 billion in 2022, primarily attributable to an increased variable commission costs driven by the increased GTV of existing home transactions and new home transactions completed through Lianjia agents, offset by the decreased fixed compensation costs.

    • Cost of home renovation and furnishing. The Company’s cost of revenues for home renovation and furnishing increased by 116.3% to RMB7.7 billion (US$1.1 billion) in 2023 from RMB3.6 billion in 2022, which was primarily attributable to the growth of net revenues from home renovation and furnishing with a relatively flat contribution margin in 2023 compared to 2022.
    • Cost related to stores. The Company’s cost related to stores decreased by 14.2% to RMB2.9 billion (US$0.4 billion) in 2023, compared to RMB3.3 billion in 2022, mainly due to the decrease in the number of Lianjia stores in 2023 compared to 2022.

    • Other costs. The Company’s other costs increased to RMB1.9 billion (US$0.3 billion) in 2023 from RMB1.6 billion in 2022, mainly due to the increase of tax and surcharge in line with the increased net revenues and an increase of share-based compensation expenses.

    Gross Profit

    Gross profit increased by 57.6% to RMB21.7 billion (US$3.1 billion) in 2023 from RMB13.8 billion in 2022. Gross margin was 27.9% in 2023, compared to 22.7% in 2022. The increase in gross margin was primarily due to: a) a higher contribution margin for existing home transaction services led by the increased net revenues from existing home transaction services and the decreased fixed compensation costs for Lianjia agents, b) a higher contribution margin for new home transaction services as a result of an increased net revenues from new home transaction services and a decreased fixed compensation costs, c) a larger contribution from revenue streams with relatively higher gross margins including existing home transaction services and home renovation and furnishing business, and d) relatively lower costs related to stores and other costs as a percentage of net revenues in 2023 compared to 2022.

    Income (Loss) from Operations

    Total operating expenses increased by 15.8% to RMB16.9 billion (US$2.4 billion) in 2023 from RMB14.6 billion in 2022.

    • General and administrative expenses increased by 12.1% to RMB8.2 billion (US$1.2 billion) in 2023 from RMB7.3 billion in 2022, mainly due to the increase of provision for credit loss and share-based compensation, which was partially offset by the decrease in personnel costs compared to 2022.

    • Sales and marketing expenses increased by 45.5% to RMB6.7 billion (US$0.9 billion) in 2023 from RMB4.6 billion in 2022, mainly due to the increase in sales and marketing expenses for home renovation and furnishing in line with the growth of net revenues from home renovation and furnishing.

    • Research and development expenses decreased by 23.9% to RMB1.9 billion (US$0.3 billion) in 2023 from RMB2.5 billion in 2022, mainly due to the decrease in personnel costs and share-based compensation as a result of decreased headcount in research and development personnel in 2023 compared to 2022.

    Income from operations was RMB4,797 million (US$676 million) in 2023, compared to loss from operations of RMB833 million in 2022. Operating margin was 6.2% in 2023, compared to negative 1.4% in 2022, primarily due to the increased gross margin and improved operating leverage in 2023, compared to 2022.

    Adjusted income from operations12 was RMB8.7 billion (US$1.2 billion) in 2023, compared to RMB2.3 billion in 2022. Adjusted operating margin13 was 11.2% in 2023, compared to 3.8% in 2022. Adjusted EBITDA14 was RMB11.3 billion (US$1.6 billion) in 2023, compared to RMB4.7 billion in 2022.

    Net Income (Loss)

    Net income was RMB5,890 million (US$830 million) in 2023, compared to net loss of RMB1,397 million in 2022.

    Adjusted net income was RMB9,798 million (US$1,380 million) in 2023, compared to RMB2,843 million in 2022.

    Net Income (Loss) attributable to KE Holdings Inc.’s Ordinary Shareholders

    Net income attributable to KE Holdings Inc.’s ordinary shareholders was RMB5,883 million (US$829 million) in 2023, compared to net loss attributable to KE Holdings Inc.’s ordinary shareholders of RMB1,386 million in 2022.

    Adjusted net income attributable to KE Holdings Inc.’s ordinary shareholders15 was RMB9,792 million (US$1,379 million) in 2023, compared to RMB2,854 million in 2022.

    Net Income (Loss) per ADS

    Basic and diluted net income per ADS attributable to KE Holdings Inc.’s ordinary shareholders16 were RMB5.01 (US$0.71) and RMB4.89 (US$0.69) in 2023, respectively, compared to RMB1.17 for both basic and diluted net loss per ADS attributable to KE Holdings Inc.’s ordinary shareholders in 2022.

    Adjusted basic and diluted net income per ADS attributable to KE Holdings Inc.’s ordinary shareholders17 were RMB8.34 (US$1.17) and RMB8.13 (US$1.15) in 2023, respectively, compared to RMB2.40 and RMB2.38 in 2022, respectively.

    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$2 billion of its Class A ordinary shares and/or ADSs until August 31, 2024, subject to obtaining another general unconditional mandate for the repurchase from the shareholders of the Company at the next annual general meeting to continue its share repurchase after the expiry of the existing share repurchase mandate granted by the annual general meeting held on June 15, 2023. As of December 31, 2023, the Company in aggregate has purchased approximately 60.9 million ADSs (representing approximately 182.8 million Class A ordinary shares) on the New York Stock Exchange with a total consideration of approximately US$909.9 million under this share repurchase program since its launch.

    Final Cash Dividend

    The Company is pleased to announce that its board of directors (the “Board”) has approved a final cash dividend (the “Dividend”) of US$0.117 per ordinary share, or US$0.351 per ADS, to holders of ordinary shares and holders of ADSs of record as of the close of business on April 5, 2024, Beijing/ Hong Kong Time and New York Time, respectively, payable in U.S. dollars. The aggregate amount of the Dividend to be paid will be approximately US$0.4 billion, which will be funded by cash surplus on the Company’s balance sheet.

    For holders of ordinary shares, in order to qualify for the Dividend, all valid documents for the transfer of shares accompanied by the relevant share certificates must be lodged for registration with the Company’s Hong Kong branch share registrar, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong no later than 4:30 p.m. on April 5, 2024 (Beijing/Hong Kong Time). Dividend to be paid to the Company’s ADS holders through the depositary bank will be subject to the terms of the deposit agreement. The payment date is expected to be on or around April 19, 2024 for holders of ordinary shares, and on or around April 24, 2024 for holders of ADSs.

    Under the Company’s current dividend policy, the Board has discretion on whether to distribute dividends, subject to certain requirements of Cayman Islands law. In addition, our shareholders may by ordinary resolution declare a dividend, but no dividend may exceed the amount recommended by the Board. If we decide to pay dividends, the form, frequency and amount will be based upon our future operations and earnings, capital requirements and surplus, general financial condition, contractual restrictions and other factors that the Board may deem relevant.

    Conference Call Information

    The Company will hold an earnings conference call at 8:00 A.M. U.S. Eastern Time on Thursday, March 14, 2024 (8:00 P.M. Beijing/Hong Kong Time on Thursday, March 14, 2024) 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/10036304-4ra620.html

    Chinese Simultaneous Interpretation Line (listen-only mode): https://s1.c-conf.com/diamondpass/10036306-asxvd3.html

    A replay of the conference call will be accessible through March 21, 2024, by dialing the following numbers:

    United States:+1-855-883-1031
    Mainland, China:400-1209-216
    Hong Kong, China:800-930-639
    International:+61-7-3107-6325
    Replay PIN (English line):10036304
    Replay PIN (Chinese simultaneous interpretation line):10036306
      

    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 RMB7.0999 to US$1.00, the noon buying rate in effect on December 29, 2023, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.

    Non-GAAP Financial Measures

    The Company uses adjusted income (loss) from operations, adjusted net income (loss), adjusted net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders, adjusted operating margin, adjusted EBITDA and adjusted net income (loss) per ADS attributable to KE Holdings Inc.’s ordinary shareholders, each a non-GAAP financial measure, in evaluating its operating results and for financial and operational decision-making purposes. Beike believes that these non-GAAP financial measures help identify underlying trends in the Company’s business that could otherwise be distorted by the effect of certain expenses that the Company includes in its net income (loss). Beike also believes that these non-GAAP financial measures provide useful information about its results of operations, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by its management in its financial and operational decision-making. A limitation of using these non-GAAP financial measures is that these non-GAAP financial measures exclude share-based compensation expenses that have been, and will continue to be for the foreseeable future, a significant recurring expense in the Company’s business.

    The presentation of these non-GAAP financial measures should not be considered in isolation or construed as an alternative to gross profit, net income (loss) or any other measure of performance or as an indicator of its operating performance. Investors are encouraged to review these non-GAAP financial measures and the reconciliation to the most directly comparable GAAP measures. The non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data. Beike encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. Adjusted income (loss) from operations is defined as income (loss) from operations, excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, and (iii) impairment of goodwill, intangible assets and other long-lived assets. Adjusted operating margin is defined as adjusted income (loss) from operations as a percentage of net revenues. Adjusted net income (loss) is defined as net income (loss), excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, (iii) changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration, (iv) impairment of goodwill, intangible assets and other long-lived assets, (v) impairment of investments, and (vi) tax effects of the above non-GAAP adjustments. Adjusted net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders is defined as net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders, excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, (iii) changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration, (iv) impairment of goodwill, intangible assets and other long-lived assets, (v) impairment of investments, (vi) tax effects of the above non-GAAP adjustments, and (vii) effects of non-GAAP adjustments on net income (loss) attributable to non-controlling interests shareholders. Adjusted EBITDA is defined as net income (loss), excluding (i) income tax expense, (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 22 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 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
    December 31,
      2022 2023
      RMB RMB US$
           
    ASSETS      
    Current assets      
    Cash and cash equivalents 19,413,202 19,634,716 2,765,492
    Restricted cash 6,181,057 6,222,745 876,455
    Short-term investments 35,485,908 34,257,958 4,825,132
    Short-term financing receivables, net of allowance for credit losses of RMB139,427 and RMB122,482 as of December 31, 2022 and 2023, respectively 667,224 1,347,759 189,828
    Accounts receivable and contract assets, net of allowance for credit losses of RMB2,088,478 and RMB1,681,127 as of December 31, 2022 and 2023, respectively 4,163,022 3,176,169 447,354
    Amounts due from and prepayments to related parties 405,956 419,270 59,053
    Loan receivables from related parties 50,463 28,030 3,948
    Prepayments, receivables and other assets 4,057,843 4,666,976 657,331
    Total current assets 70,424,675 69,753,623 9,824,593
    Non-current assets      
    Property, plant and equipment, net 2,036,553 1,965,098 276,778
    Right-of-use assets 11,284,070 17,617,915 2,481,431
    Long-term investments, net 17,925,653 23,570,988 3,319,904
    Intangible assets, net 1,686,976 1,067,459 150,348
    Goodwill 4,934,235 4,856,807 684,067
    Long-term loan receivables from related parties 22,934 27,000 3,803
    Other non-current assets 1,032,251 1,473,041 207,474
    Total non-current assets 38,922,672 50,578,308 7,123,805
    TOTAL ASSETS 109,347,347 120,331,931 16,948,398


     
    KE Holdings Inc.
    UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)
    (All amounts in thousands, except for share, per share data)
     
         
      As of
    December 31,    		 As of
    December 31,
      2022 2023
      RMB RMB US$
           
    LIABILITIES      
    Current liabilities      
    Accounts payable 5,843,321 6,328,516 891,353
    Amounts due to related parties 425,685 430,350 60,614
    Employee compensation and welfare payable 9,365,512 8,145,779 1,147,309
    Customer deposits payable 4,194,828 3,900,564 549,383
    Income taxes payable 542,290 698,568 98,391
    Short-term borrowings 619,000 290,450 40,909
    Lease liabilities current portion 4,972,345 9,368,607 1,319,541
    Contract liabilities 3,260,269 4,665,201 657,080
    Accrued expenses and other current liabilities 4,118,068 5,695,948 802,257
    Total current liabilities 33,341,318 39,523,983 5,566,837
    Non-current liabilities      
    Deferred tax liabilities 351,186 279,341 39,344
    Lease liabilities non-current portion 6,599,930 8,327,113 1,172,849
    Other non-current liabilities 475 389 55
    Total non-current liabilities 6,951,591 8,606,843 1,212,248
    TOTAL LIABILITIES 40,292,909 48,130,826 6,779,085


    KE Holdings Inc.
    UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)
    (All amounts in thousands, except for share, per share data)
     
      As of
    December 31,    		 As of
    December 31,
      2022
    		 2023
      RMB RMB US$
           
    SHAREHOLDERS’ EQUITY      
    KE Holdings Inc. shareholders’ equity      
    Ordinary shares (US$0.00002 par value; 25,000,000,000 ordinary shares authorized, comprising of 24,114,698,720 Class A ordinary shares and 885,301,280 Class B ordinary shares. 3,601,547,279 Class A ordinary shares issued and 3,561,632,933 Class A ordinary shares outstanding(1) as of December 31, 2022; 3,571,960,220 Class A ordinary shares issued and 3,443,860,844 Class A ordinary shares outstanding(1) as of December 31, 2023; and 156,426,896 and 151,354,549 Class B ordinary shares issued and outstanding as of December 31, 2022 and 2023, respectively) 487  475  67 
    Treasury shares (225,329)  (866,198)  (122,001) 
    Additional paid-in capital 80,302,956  77,583,054  10,927,345 
    Statutory reserves 660,817  811,107  114,242 
    Accumulated other comprehensive income (loss) (412,721)  244,302  34,409 
    Accumulated deficit (11,405,850)  (5,672,916)  (799,014) 
    Total KE Holdings Inc. shareholders' equity 68,920,360  72,099,824  10,155,048 
    Non-controlling interests 134,078  101,281  14,265 
    TOTAL SHAREHOLDERS' EQUITY 69,054,438  72,201,105  10,169,313 
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 109,347,347  120,331,931  16,948,398 

    (1)  Excluding the Class A ordinary shares registered in the name of the depositary bank for future issuance of ADSs upon the exercise or vesting of awards granted under our share incentive plans and the Class A ordinary shares repurchased but not cancelled in the form of ADSs.

    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 Year Ended
     December 31,
    2022    		 December 31,
    2023    		 December 31,
    2023    		 December 31,
    2022    		 December 31,
    2023    		 December 31,
    2023
     RMB RMB US$ RMB RMB US$
                
    Net revenues           
    Existing home transaction services5,280,757 6,049,963 852,119 24,123,703 27,954,135 3,937,258
    New home transaction services8,281,269 7,574,098 1,066,789 28,650,374 30,575,778 4,306,508
    Home renovation and furnishing2,093,811 3,640,928 512,814 5,046,627 10,850,497 1,528,261
    Emerging and other services1,091,303 2,939,237 413,983 2,848,075 8,396,522 1,182,625
    Total net revenues16,747,140 20,204,226 2,845,705 60,668,779 77,776,932 10,954,652
    Cost of revenues           
    Commission-split(6,030,785) (6,948,815) (978,720) (20,499,632) (25,713,752) (3,621,706)
    Commission and compensation-internal(4,231,943) (4,208,362) (592,735) (17,853,694) (17,884,796) (2,519,021)
    Cost of home renovation and furnishing(1,467,237) (2,628,015) (370,148) (3,562,068) (7,705,325) (1,085,272)
    Cost related to stores(764,650) (727,054) (102,403) (3,346,436) (2,872,093) (404,526)
    Others(159,567) (547,934) (77,174) (1,626,202) (1,882,952) (265,208)
    Total cost of revenues(1)(12,654,182) (15,060,180) (2,121,180) (46,888,032) (56,058,918) (7,895,733)
    Gross profit4,092,958 5,144,046 724,525 13,780,747 21,718,014 3,058,919
    Operating expenses           
    Sales and marketing expenses(1)(1,332,765) (2,080,363) (293,013) (4,573,382) (6,654,178) (937,221)
    General and administrative expenses(1)(1,792,326) (2,647,739) (372,926) (7,346,665) (8,236,569) (1,160,096)
    Research and development expenses(1)(508,663) (533,620) (75,159) (2,545,549) (1,936,780) (272,790)
    Impairment of goodwill, intangible assets and other long-lived assets(71,813) (55,441) (7,809) (148,057) (93,417) (13,158)
    Total operating expenses(3,705,567) (5,317,163) (748,907) (14,613,653) (16,920,944) (2,383,265)
    Income (loss) from operations387,391 (173,117) (24,382) (832,906) 4,797,070 675,654
    Interest income, net255,314 311,963 43,939 743,484 1,263,332 177,937
    Share of results of equity investees(69) (18,130) (2,554) 44,588 9,098 1,281
    Impairment loss for equity investments accounted for using equity method- (4,187) (590) - (10,369) (1,460)
    Fair value changes in investments, net(133,728) 4,127 581 (512,225) 78,320 11,031
    Impairment loss for equity investments accounted for using Measurement Alternative(100,004) (16,605) (2,339) (591,876) (28,800) (4,056)
    Foreign currency exchange gain (loss)65,331 (174,459) (24,572) (127,362) (93,956) (13,233)
    Other income, net528,454 832,103 117,199 1,568,587 1,869,300 263,285
    Income before income tax expense1,002,689 761,695 107,282 292,290 7,883,995 1,110,439
    Income tax expense(630,779) (91,632) (12,906) (1,689,574) (1,994,391) (280,904)
    Net income (loss)371,910 670,063 94,376 (1,397,284) 5,889,604 829,535


    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 Year Ended
     December 31,
    2022    		 December 31,
    2023    		 December 31,
    2023    		 December 31,
    2022    		 December 31,
    2023    		 December 31,
    2023
     RMB RMB US$ RMB RMB US$
                
    Net loss (income) attributable to non-controlling interests shareholders5,122 (458) (65) 11,210 (6,380) (899)
    Net income (loss) attributable to KE Holdings Inc.377,032 669,605 94,311 (1,386,074) 5,883,224 828,636
    Net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders377,032 669,605 94,311 (1,386,074) 5,883,224 828,636
                
    Net income (loss)371,910 670,063 94,376 (1,397,284) 5,889,604 829,535
    Currency translation adjustments(479,196) (138,522) (19,510) 2,602,071 574,223 80,878
    Unrealized gains (losses) on available-for-sale investments, net of reclassification121,961 133,067 18,742 (375,069) 82,800 11,662
    Total comprehensive income14,675 664,608 93,608 829,718 6,546,627 922,075
    Comprehensive loss (income) attributable to non-controlling interests shareholders5,122 (458) (65) 11,210 (6,380) (899)
    Comprehensive income attributable to KE Holdings Inc.19,797 664,150 93,543 840,928 6,540,247 921,176
    Comprehensive income attributable to KE Holdings Inc.’s ordinary shareholders19,797 664,150 93,543 840,928 6,540,247 921,176


    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 Year Ended
     December 31,
    2022    		 December 31,
    2023    		 December 31,
    2023    		 December 31,
    2022    		 December 31,
    2023    		 December 31,
    2023
     RMB RMB US$ RMB RMB US$
                
    Weighted average number of ordinary shares used in computing net income (loss) per share, basic and diluted           
    —Basic3,551,773,024 3,449,700,565 3,449,700,565 3,569,179,079 3,521,379,938 3,521,379,938
    —Diluted3,604,626,158 3,557,221,957 3,557,221,957 3,569,179,079 3,611,653,020 3,611,653,020
                
    Weighted average number of ADS used in computing net income (loss) per ADS, basic and diluted           
    —Basic1,183,924,341 1,149,900,188 1,149,900,188 1,189,726,360 1,173,793,313 1,173,793,313
    —Diluted1,201,542,053 1,185,740,652 1,185,740,652 1,189,726,360 1,203,884,340 1,203,884,340
                
    Net income (loss) per share attributable to KE Holdings Inc.'s ordinary shareholders           
    —Basic0.11 0.19 0.03 (0.39) 1.67 0.24
    —Diluted0.10 0.19 0.03 (0.39) 1.63 0.23
                
    Net income (loss) per ADS attributable to KE Holdings Inc.'s ordinary shareholders           
    —Basic0.32 0.58 0.08 (1.17) 5.01 0.71
    —Diluted0.31 0.56 0.08 (1.17) 4.89 0.69
                
    (1) Includes share-based compensation expenses as follows:  
    Cost of revenues91,209 138,967 19,573 356,844 502,523 70,779
    Sales and marketing expenses31,843 51,347 7,232 121,396 180,465 25,418
    General and administrative expenses549,632 580,363 81,742 1,659,755 2,345,895 330,412
    Research and development expenses52,495 47,761 6,727 287,254 186,666 26,291
                


    KE Holdings Inc.
    UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS
    (All amounts in thousands, except for share, per share data, ADS and per ADS data)
     
     For the Three Months Ended  For the Year Ended
     December 31,
    2022    		 December 31,
    2023    		 December 31,
    2023    		 December 31,
    2022    		 December 31,
    2023    		 December 31,
    2023
     RMB RMB US$ RMB RMB US$
                
    Income (loss) from operations387,391 (173,117) (24,382) (832,906) 4,797,070 675,654
    Share-based compensation expenses725,179 818,438 115,274 2,425,249 3,215,549 452,900
    Amortization of intangible assets resulting from acquisitions and business cooperation agreement154,504 155,039 21,837 566,886 613,307 86,382
    Impairment of goodwill, intangible assets and other long-lived assets71,813 55,441 7,809 148,057 93,417 13,158
    Adjusted income from operations1,338,887 855,801 120,538 2,307,286 8,719,343 1,228,094
                
    Net income (loss) 371,910 670,063 94,376 (1,397,284) 5,889,604 829,535
    Share-based compensation expenses725,179 818,438 115,274 2,425,249 3,215,549 452,900
    Amortization of intangible assets resulting from acquisitions and business cooperation agreement154,504 155,039 21,837 566,886 613,307 86,382
    Changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration129,731 546 77 526,926 (26,315) (3,706)
    Impairment of goodwill, intangible assets and other long-lived assets71,813 55,441 7,809 148,057 93,417 13,158
    Impairment of investments100,004 20,792 2,929 591,876 39,169 5,516
    Tax effects on non-GAAP adjustments(6,560) (6,561) (924) (18,951) (26,243) (3,696)
    Adjusted net income 1,546,581 1,713,758 241,378 2,842,759 9,798,488 1,380,089
                
    Net income (loss) 371,910 670,063 94,376 (1,397,284) 5,889,604 829,535
    Income tax expense630,779 91,632 12,906 1,689,574 1,994,391 280,904
    Share-based compensation expenses725,179 818,438 115,274 2,425,249 3,215,549 452,900
    Amortization of intangible assets158,624 158,339 22,302 584,460 627,146 88,332
    Depreciation of property, plant and equipment230,999 196,436 27,667 918,261 775,042 109,162
    Interest income, net(255,314) (311,963) (43,939) (743,484) (1,263,332) (177,937)
    Changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration129,731 546 77 526,926 (26,315) (3,706)
    Impairment of goodwill, intangible assets and other long-lived assets71,813 55,441 7,809 148,057 93,417 13,158
    Impairment of investments100,004 20,792 2,929 591,876 39,169 5,516
    Adjusted EBITDA2,163,725 1,699,724 239,401 4,743,635 11,344,671 1,597,864
                
    Net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders377,032 669,605 94,311 (1,386,074) 5,883,224 828,636
    Share-based compensation expenses725,179 818,438 115,274 2,425,249 3,215,549 452,900
    Amortization of intangible assets resulting from acquisitions and business cooperation agreement154,504 155,039 21,837 566,886 613,307 86,382
    Changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration129,731 546 77 526,926 (26,315) (3,706)
    Impairment of goodwill, intangible assets and other long-lived assets71,813 55,441 7,809 148,057 93,417 13,158
    Impairment of investments100,004 20,792 2,929 591,876 39,169 5,516
    Tax effects on non-GAAP adjustments(6,560) (6,561) (924) (18,951) (26,243) (3,696)
    Effects of non-GAAP adjustments on net income attributable to non-controlling interests shareholders(7) (7) (1) (28) (28) (4)
    Adjusted net income attributable to KE Holdings Inc.’s ordinary shareholders1,551,696 1,713,293 241,312 2,853,941 9,792,080 1,379,186


    KE Holdings Inc.
    UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (Continued)
    (All amounts in thousands, except for share, per share data, ADS and per ADS data)
     
     For the Three Months Ended For the Year Ended
     December 31,
    2022    		 December 31,
    2023    		 December 31,
    2023    		 December 31,
    2022    		 December 31,
    2023    		 December 31,
    2023
     RMB RMB US$ RMB RMB US$
                
    Weighted average number of ADS used in computing net income (loss) per ADS, basic and diluted           
    —Basic1,183,924,341 1,149,900,188 1,149,900,188 1,189,726,360 1,173,793,313 1,173,793,313
    —Diluted1,201,542,053 1,185,740,652 1,185,740,652 1,189,726,360 1,203,884,340 1,203,884,340
                
    Weighted average number of ADS used in calculating adjusted net income (loss) per ADS, basic and diluted           
    —Basic1,183,924,341 1,149,900,188 1,149,900,188 1,189,726,360 1,173,793,313 1,173,793,313
    —Diluted1,201,542,053 1,185,740,652 1,185,740,652 1,199,354,087 1,203,884,340 1,203,884,340
                
    Net income (loss) per ADS attributable to KE Holdings Inc.'s ordinary shareholders           
    —Basic0.32 0.58 0.08 (1.17) 5.01 0.71
    —Diluted0.31 0.56 0.08 (1.17) 4.89 0.69
                
    Non-GAAP adjustments to net income per ADS attributable to KE Holdings Inc.'s ordinary shareholders           
    —Basic0.99 0.91 0.13 3.57 3.33 0.46
    —Diluted0.98 0.88 0.12 3.55 3.24 0.46
                
    Adjusted net income per ADS attributable to KE Holdings Inc.'s ordinary shareholders           
    —Basic1.31 1.49 0.21 2.40 8.34 1.17
    —Diluted1.29 1.44 0.20 2.38 8.13 1.15
                


    KE Holdings Inc.
    UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
    (All amounts in thousands)
     
     For the Three Months Ended For the Year Ended
     December 31,
    2022    		 December 31,
    2023    		 December 31,
    2023    		 December 31,
    2022    		 December 31,
    2023    		 December 31,
    2023
     RMB RMB US$ RMB RMB US$
                
    Net cash provided by operating activities2,647,195 1,769,286 249,201 8,460,754 11,157,625 1,571,522
    Net cash provided by (used in) investing activities(984,913) 3,712,203 522,851 (8,472,355) (3,977,440) (560,210)
    Net cash used in financing activities(913,499) (1,477,067) (208,041) (1,154,993) (6,961,591) (980,519)
    Effect of exchange rate change on cash, cash equivalents and restricted cash41,537 (142,337) (20,048) 28,644 44,608 6,278
    Net increase (decrease) in cash and cash equivalents and restricted cash790,320 3,862,085 543,963 (1,137,950) 263,202 37,071
    Cash, cash equivalents and restricted cash at the beginning of the period24,803,939 21,995,376 3,097,984 26,732,209 25,594,259 3,604,876
    Cash, cash equivalents and restricted cash at the end of the period25,594,259 25,857,461 3,641,947 25,594,259 25,857,461 3,641,947


    KE Holdings Inc.
    UNAUDITED SEGMENT CONTRIBUTION MEASURE
    (All amounts in thousands)
     
     For the Three Months Ended For the Year Ended
     December 31,
    2022    		 December 31,
    2023    		 December 31,
    2023    		 December 31,
    2022    		 December 31,
    2023    		 December 31,
    2023
     RMB RMB US$ RMB RMB US$
    Existing home transaction services           
    Net revenues5,280,757 6,049,963 852,119 24,123,703 27,954,135 3,937,258
    Less: Commission and compensation(3,321,568) (3,355,714) (472,642) (14,510,838) (14,762,910) (2,079,312)
    Contribution1,959,189 2,694,249 379,477 9,612,865 13,191,225 1,857,946
                
    New home transaction services           
    Net revenues8,281,269 7,574,098 1,066,789 28,650,374 30,575,778 4,306,508
    Less: Commission and compensation(6,112,120) (5,574,423) (785,141) (21,886,020) (22,455,253) (3,162,756)
    Contribution2,169,149 1,999,675 281,648 6,764,354 8,120,525 1,143,752
                
    Home renovation and furnishing           
    Net revenues2,093,811 3,640,928 512,814 5,046,627 10,850,497 1,528,261
    Less: Material costs, commission and compensation(1,467,237) (2,628,015) (370,148) (3,562,068) (7,705,325) (1,085,272)
    Contribution626,574 1,012,913 142,666 1,484,559 3,145,172 442,989
                
    Emerging and other services           
    Net revenues1,091,303 2,939,237 413,983 2,848,075 8,396,522 1,182,625
    Less: Property leasing costs, commission and compensation(829,040) (2,227,040) (313,672) (1,956,468) (6,380,385) (898,659)
    Contribution262,263 712,197 100,311 891,607 2,016,137 283,966


    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 37,446 as of December 31, 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 349,681 as of December 31, 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.
    12 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.
    13 Adjusted operating margin is adjusted income (loss) from operations as a percentage of net revenues.
    14 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.
    15 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.
    16 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.
    17 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.


Share on,