BEIJING, Aug. 31, 2023 – KE Holdings Inc. (“Beike”) (NYSE: BEKE and HKEX: 2423), a premier on-line and offline platform for housing transactions and providers, has unveiled its unaudited monetary outcomes for the second quarter of 2023. The firm additionally introduced an extension and upsizing of the share repurchase program at a complete consideration of roughly US$605.0 million, alongside a particular money dividend of US$0.057 per odd share, or US$0.171 per ADS, to holders of odd shares and holders of ADSs.
In the second quarter of 2023, the corporate reported sturdy monetary progress throughout a number of metrics. The Gross Transaction Value (GTV) surged to RMB780.6 billion (US$107.6 billion), marking a 22.1% year-over-year improve. This was pushed by a 16.0% rise in GTV for current house transactions, reaching RMB456.5 billion (US$63.0 billion), and a 32.4% enhance in GTV for brand spanking new house transactions, which totaled RMB295.0 billion (US$40.7 billion). The GTV for house renovation and furnishing skilled vital progress, hitting RMB3.4 billion (US$0.5 billion) in comparison with RMB1.3 billion in the identical interval final 12 months. Furthermore, GTV for rising and different providers elevated by 16.6% to RMB25.6 billion (US$3.5 billion).
Net revenues for the quarter stood at RMB19.5 billion (US$2.7 billion), representing a 41.4% year-over-year improve. The firm additionally posted a web earnings of RMB1,300 million (US$179 million), whereas the adjusted web earnings was RMB2,364 million (US$326 million).
On the operational entrance, the corporate maintained stability in its bodily footprint, with the variety of shops remaining fixed at 43,000 as of June 30, 2023. The variety of lively shops was comparatively flat year-over-year at 41,076. Employee energy additionally grew, with the variety of brokers rising by 5.0% to 435,813, and the variety of lively brokers rising by 7.6% to 409,054.
In phrases of person engagement, the cell month-to-month lively customers (MAU) averaged 48.0 million, in comparison with 43.0 million in the identical quarter of 2022, indicating an enhanced buyer base.
The Company, which initiated a share repurchase program in August 2022, has bought roughly 41.0 million ADSs value about US605.0million within the open market from September 2022 to August 2023. On August 31, 2023, the Company’s board of administrators permitted modifications to the prevailing share repurchase program, pursuant to which the repurchase authorization has been elevated from US$1 billion of its Class A odd shares and/or ADSs to US$2 billion of its Class A odd shares and/or ADSs and prolonged till August 31, 2024. In addition to the share repurchase program, the board of administrators permitted a particular money dividend of US 0.057 per odd share,or US 0.171 per ADS, for holders as of the shut of enterprise on September 15, 2023. The complete dividend payout shall be roughly US$0.2 billion, funded by the Company’s surplus money.
Mr. Stanley Yongdong Peng, Chairman and CEO of Beike, remarked, “With the recovery of China’s real estate and residential markets, in the first half of 2023, our operational and financial results have meaningful improvement compared to the same period of last year. Our results were also boosted by our focus on retaining service providers during the market correction, effective cost reductions and our ability to raise efficiencies companywide. At the same time, we rapidly expanded our emerging businesses, achieving breakthroughs in quality, scale and economic performance in our home renovation and furnishing services, as well as robust development and efficiency gains in our rental services. The combination of these initiatives placed us in a strong position to seize the expanding opportunity during market recovery and facilitated our ability to, once again, outperform the market.”
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“Consumer demand in the residential services sector has largely pivoted from ‘home purchase’ to ‘better living.’ In response to evolving consumer needs, in July, we upgraded our corporate strategy to ‘One Body, Three Wings,’ adding Beihaojia as a third wing to facilitate supply-side upgrades for new homes. Our revised strategy targets better alignment of our products and services with consumers’ underserved needs. We are now covering a broader spectrum of residential industry that spans the areas of a house itself, housing transactions, rental properties, and home renovation and furnishing. The quality premium we provide in each of these service categories will create additional growth opportunities while prompting sustained and healthy development of the industry. We will also further empower our service providers to serve as bridges to better livings within communities and help them find their career fulfillments. We are in the foothills of the next mountain on our quest to advance our mission of ‘Admirable Service, Joyful Living,’ and we look forward to the exciting road ahead,” concluded Mr. Peng.
Mr. Tao Xu, Executive Director and CFO of Beike, added, “During the second quarter of this year, China’s housing market sustained its recovery momentum, although the pace was more moderate compared to the surge in the first quarter, which was mostly fueled by pent-up demand. We successfully leveraged the market recovery, owing to our consistent dedication to enhancing the capabilities of our service providers, optimizing operational efficiency, and nurturing the growth of our emerging businesses. Our GTV grew by 22.1% year-over-year to RMB780.6 billion, while net revenues increased by 41.4% to RMB19.5 billion. Moreover, the strategic refinement of our cost and expense structure also contributed to the enhancement of our profitability. Our net income for the second quarter stood at RMB1,300 million, compared to net loss of RMB1,866 million in the same period of 2022, while non-GAAP net income was RMB2,364 million in this quarter, compared with net loss of RMB619 million in the corresponding period of 2022. As we ascend to the next mountain, we are determined to maintain a healthy and robust balance sheet and ensure efficient capital allocation, propelling the Company forward in the vast residential services sector toward greater growth. Our strong cash reserves and prudent financial management enabled us to proactively pursue shareholder return initiatives. As a company focused on creating long-term value for our shareholders, we remain dedicated to enhancing shareholder value, and hope to provide continuous shareholder returns as we strive for future success.”
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