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
RelationsSiting LiE-mail: ir@ke.com
Piacente Financial Communications Jenny CaiTel:
+86-10-6508-0677E-mail: ke@tpg-ir.com
In the United States:Piacente Financial
Communications Brandi PiacenteTel: +1-212-481-2050E-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 ofDecember 31, |
|
As ofDecember 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 ofDecember 31, |
|
As ofDecember 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 ofDecember 31, |
|
As ofDecember 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 services |
5,280,757 |
|
6,049,963 |
|
852,119 |
|
24,123,703 |
|
27,954,135 |
|
3,937,258 |
| New home transaction
services |
8,281,269 |
|
7,574,098 |
|
1,066,789 |
|
28,650,374 |
|
30,575,778 |
|
4,306,508 |
| Home renovation and
furnishing |
2,093,811 |
|
3,640,928 |
|
512,814 |
|
5,046,627 |
|
10,850,497 |
|
1,528,261 |
| Emerging and other
services |
1,091,303 |
|
2,939,237 |
|
413,983 |
|
2,848,075 |
|
8,396,522 |
|
1,182,625 |
| Total net
revenues |
16,747,140 |
|
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
profit |
4,092,958 |
|
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
operations |
387,391 |
|
(173,117) |
|
(24,382) |
|
(832,906) |
|
4,797,070 |
|
675,654 |
| Interest income, net |
255,314 |
|
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, net |
528,454 |
|
832,103 |
|
117,199 |
|
1,568,587 |
|
1,869,300 |
|
263,285 |
| Income before income
tax expense |
1,002,689 |
|
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 shareholders |
5,122 |
|
(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
shareholders |
377,032 |
|
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 reclassification |
121,961 |
|
133,067 |
|
18,742 |
|
(375,069) |
|
82,800 |
|
11,662 |
| Total comprehensive
income |
14,675 |
|
664,608 |
|
93,608 |
|
829,718 |
|
6,546,627 |
|
922,075 |
| Comprehensive loss (income)
attributable to non-controlling interests shareholders |
5,122 |
|
(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
shareholders |
19,797 |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
—Basic |
3,551,773,024 |
|
3,449,700,565 |
|
3,449,700,565 |
|
3,569,179,079 |
|
3,521,379,938 |
|
3,521,379,938 |
| —Diluted |
3,604,626,158 |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
| —Basic |
1,183,924,341 |
|
1,149,900,188 |
|
1,149,900,188 |
|
1,189,726,360 |
|
1,173,793,313 |
|
1,173,793,313 |
| —Diluted |
1,201,542,053 |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
| —Basic |
0.11 |
|
0.19 |
|
0.03 |
|
(0.39) |
|
1.67 |
|
0.24 |
| —Diluted |
0.10 |
|
0.19 |
|
0.03 |
|
(0.39) |
|
1.63 |
|
0.23 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) per
ADS attributable to KE Holdings Inc.'s ordinary
shareholders |
|
|
|
|
|
|
|
|
|
|
|
| —Basic |
0.32 |
|
0.58 |
|
0.08 |
|
(1.17) |
|
5.01 |
|
0.71 |
| —Diluted |
0.31 |
|
0.56 |
|
0.08 |
|
(1.17) |
|
4.89 |
|
0.69 |
| |
|
|
|
|
|
|
|
|
|
|
|
| (1)
Includes share-based compensation expenses as
follows: |
|
| Cost of revenues |
91,209 |
|
138,967 |
|
19,573 |
|
356,844 |
|
502,523 |
|
70,779 |
| Sales and marketing
expenses |
31,843 |
|
51,347 |
|
7,232 |
|
121,396 |
|
180,465 |
|
25,418 |
| General and administrative
expenses |
549,632 |
|
580,363 |
|
81,742 |
|
1,659,755 |
|
2,345,895 |
|
330,412 |
| Research and development
expenses |
52,495 |
|
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
operations |
387,391 |
|
(173,117) |
|
(24,382) |
|
(832,906) |
|
4,797,070 |
|
675,654 |
| Share-based compensation
expenses |
725,179 |
|
818,438 |
|
115,274 |
|
2,425,249 |
|
3,215,549 |
|
452,900 |
| Amortization of intangible
assets resulting from acquisitions and business cooperation
agreement |
154,504 |
|
155,039 |
|
21,837 |
|
566,886 |
|
613,307 |
|
86,382 |
| Impairment of goodwill,
intangible assets and other long-lived assets |
71,813 |
|
55,441 |
|
7,809 |
|
148,057 |
|
93,417 |
|
13,158 |
| Adjusted income from
operations |
1,338,887 |
|
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
expenses |
725,179 |
|
818,438 |
|
115,274 |
|
2,425,249 |
|
3,215,549 |
|
452,900 |
| Amortization of intangible
assets resulting from acquisitions and business cooperation
agreement |
154,504 |
|
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 consideration |
129,731 |
|
546 |
|
77 |
|
526,926 |
|
(26,315) |
|
(3,706) |
| Impairment of goodwill,
intangible assets and other long-lived assets |
71,813 |
|
55,441 |
|
7,809 |
|
148,057 |
|
93,417 |
|
13,158 |
| Impairment of investments |
100,004 |
|
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 expense |
630,779 |
|
91,632 |
|
12,906 |
|
1,689,574 |
|
1,994,391 |
|
280,904 |
| Share-based compensation
expenses |
725,179 |
|
818,438 |
|
115,274 |
|
2,425,249 |
|
3,215,549 |
|
452,900 |
| Amortization of intangible
assets |
158,624 |
|
158,339 |
|
22,302 |
|
584,460 |
|
627,146 |
|
88,332 |
| Depreciation of property,
plant and equipment |
230,999 |
|
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 consideration |
129,731 |
|
546 |
|
77 |
|
526,926 |
|
(26,315) |
|
(3,706) |
| Impairment of goodwill,
intangible assets and other long-lived assets |
71,813 |
|
55,441 |
|
7,809 |
|
148,057 |
|
93,417 |
|
13,158 |
| Impairment of investments |
100,004 |
|
20,792 |
|
2,929 |
|
591,876 |
|
39,169 |
|
5,516 |
| Adjusted
EBITDA |
2,163,725 |
|
1,699,724 |
|
239,401 |
|
4,743,635 |
|
11,344,671 |
|
1,597,864 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss)
attributable to KE Holdings Inc.’s ordinary
shareholders |
377,032 |
|
669,605 |
|
94,311 |
|
(1,386,074) |
|
5,883,224 |
|
828,636 |
| Share-based compensation
expenses |
725,179 |
|
818,438 |
|
115,274 |
|
2,425,249 |
|
3,215,549 |
|
452,900 |
| Amortization of intangible
assets resulting from acquisitions and business cooperation
agreement |
154,504 |
|
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 consideration |
129,731 |
|
546 |
|
77 |
|
526,926 |
|
(26,315) |
|
(3,706) |
| Impairment of goodwill,
intangible assets and other long-lived assets |
71,813 |
|
55,441 |
|
7,809 |
|
148,057 |
|
93,417 |
|
13,158 |
| Impairment of investments |
100,004 |
|
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
shareholders |
1,551,696 |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
—Basic |
1,183,924,341 |
|
1,149,900,188 |
|
1,149,900,188 |
|
1,189,726,360 |
|
1,173,793,313 |
|
1,173,793,313 |
| —Diluted |
1,201,542,053 |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
| —Basic |
1,183,924,341 |
|
1,149,900,188 |
|
1,149,900,188 |
|
1,189,726,360 |
|
1,173,793,313 |
|
1,173,793,313 |
| —Diluted |
1,201,542,053 |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
| —Basic |
0.32 |
|
0.58 |
|
0.08 |
|
(1.17) |
|
5.01 |
|
0.71 |
| —Diluted |
0.31 |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
| —Basic |
0.99 |
|
0.91 |
|
0.13 |
|
3.57 |
|
3.33 |
|
0.46 |
| —Diluted |
0.98 |
|
0.88 |
|
0.12 |
|
3.55 |
|
3.24 |
|
0.46 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Adjusted net income per
ADS attributable to KE Holdings Inc.'s ordinary
shareholders |
|
|
|
|
|
|
|
|
|
|
|
| —Basic |
1.31 |
|
1.49 |
|
0.21 |
|
2.40 |
|
8.34 |
|
1.17 |
| —Diluted |
1.29 |
|
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
activities |
2,647,195 |
|
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 cash |
41,537 |
|
(142,337) |
|
(20,048) |
|
28,644 |
|
44,608 |
|
6,278 |
| Net increase
(decrease) in cash and cash equivalents and restricted
cash |
790,320 |
|
3,862,085 |
|
543,963 |
|
(1,137,950) |
|
263,202 |
|
37,071 |
| Cash, cash equivalents and
restricted cash at the beginning of the period |
24,803,939 |
|
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 period |
25,594,259 |
|
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 revenues |
5,280,757 |
|
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) |
| Contribution |
1,959,189 |
|
2,694,249 |
|
379,477 |
|
9,612,865 |
|
13,191,225 |
|
1,857,946 |
| |
|
|
|
|
|
|
|
|
|
|
|
| New home transaction
services |
|
|
|
|
|
|
|
|
|
|
|
| Net revenues |
8,281,269 |
|
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) |
| Contribution |
2,169,149 |
|
1,999,675 |
|
281,648 |
|
6,764,354 |
|
8,120,525 |
|
1,143,752 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Home renovation and
furnishing |
|
|
|
|
|
|
|
|
|
|
|
| Net revenues |
2,093,811 |
|
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) |
| Contribution |
626,574 |
|
1,012,913 |
|
142,666 |
|
1,484,559 |
|
3,145,172 |
|
442,989 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Emerging and other
services |
|
|
|
|
|
|
|
|
|
|
|
| Net revenues |
1,091,303 |
|
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) |
| Contribution |
262,263 |
|
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.
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