KE Holdings Reports Impressive Year-End Financial Results
KE Holdings Inc. Releases Fourth Quarter and Fiscal Year Results
KE Holdings Inc. (“Beike”) (NYSE: BEKE and HKEX: 2423), a prominent player in the online and offline housing transaction services sector, proudly announces its financial results for the fourth quarter and complete fiscal year of 2024 along with a final cash dividend declaration.
Financial Highlights for the Fiscal Year 2024
In 2024, the company attained a gross transaction value (GTV) of RMB3,349.4 billion (approximately US$458.9 billion), marking a year-on-year growth of 6.6%. Notably, GTV from existing home transactions climbed to RMB2,246.5 billion (around US$307.8 billion), demonstrating a robust increase of 10.8%. In contrast, GTV from new home transactions saw a slight decline, settling at RMB970.0 billion (about US$132.9 billion), a decrease of 3.3% compared to the previous year. However, the home renovation and furnishing sector showcased impressive growth, with GTV reaching RMB16.9 billion (roughly US$2.3 billion), an increase of 27.3% year over year.
The fourth quarter alone showed remarkable momentum, with a GTV of RMB1,143.8 billion (around US$156.7 billion), a significant leap of 55.5% compared to the same quarter in 2023. Existing home transactions accounted for RMB744.8 billion (approximately US$102.0 billion), reflecting a 59.1% increase year-over-year. New home transactions also picked up, growing by 49.3% to RMB355.3 billion (about US$48.7 billion) in the fourth quarter.
Revenue Growth
For the entire fiscal year, net revenues reached RMB93.5 billion (about US$12.8 billion), a notable rise of 20.2% from the previous year. This was complemented by a net revenue of RMB31.1 billion (US$4.3 billion) for the fourth quarter, witnessing a staggering increase of 54.1% on a year-over-year basis.
Profitability Insights
Despite the robust revenue growth, KE Holdings reported some challenges regarding net income. For 2024, net income was recorded at RMB4,078 million (US$559 million), which represents a decline of 30.8% compared to the previous year. The adjusted net income for the year was RMB7,211 million (approximately US$988 million), a decrease of 26.4% from 2023. The fourth quarter's net income reflected similar trends, at RMB577 million (US$79 million), down 13.9% year over year.
Business Expansion Metrics
The company also saw an expansion in its service networks, concluding 2024 with 51,573 stores, an 18.3% increase year-on-year, along with an increase in the number of active agents to 499,937, a growth of 16.9% from the previous year. The platform’s monthly active mobile users remained stable at 43.2 million.
Future Direction
KE Holdings' Chairman, Mr. Stanley Yongdong Peng, shared insights into the company’s outlook, indicating a strong commitment to leveraging technology to enhance decision-making processes and improve customer experiences. As the real estate landscape continues to evolve, Beike is poised to meet changing customer demands through innovative enhancements in its service offerings.
Mr. Tao Xu, Chief Financial Officer, emphasized the importance of adapting to market changes, highlighting that the fourth quarter of 2024 saw increased demand in both existing and new home markets, a trend that was boosted by favorable stimulus policies. With a focus on growing its non-housing transaction revenues, which soared by 64.2% year-over-year, KE Holdings aims to create a strong financial foundation for sustained growth.
Final Cash Dividend Announcement
In line with its promise to deliver shareholder value, the Board has approved a final cash dividend of US$0.12 per ordinary share, or US$0.36 per ADS, signaling commitment to rewarding stakeholders. This decision reflects KE Holdings' healthy cash reserves and strategic planning efforts.
Frequently Asked Questions
What financial results did KE Holdings release?
KE Holdings announced a net revenue of RMB93.5 billion, up 20.2% year-over-year, and a final cash dividend of US$0.12 per ordinary share.
How did GTV perform for KE Holdings in 2024?
The GTV reached RMB3,349.4 billion, a 6.6% increase, with existing home transactions increasing 10.8% year-over-year.
What challenges did the company face regarding net income?
The net income for 2024 was RMB4,078 million, reflecting a decrease of 30.8% compared to the previous year, influenced by rising costs and market dynamics.
How many stores and agents are affiliated with KE Holdings?
The company had 51,573 stores and 499,937 agents as of December 31, 2024, reflecting growth in both areas.
What does the future hold for KE Holdings?
Looking ahead, KE Holdings plans to focus on technology integration and enhancing customer experiences to drive growth and adaptability in the evolving market landscape.
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