BEKE(BEKE) - 2025 Q1 - Quarterly Results

Financial Performance - Gross transaction value (GTV) increased by 34.0% year-over-year to RMB843.7 billion (US$116.3 billion) in Q1 2025, with existing home transactions growing by 28.1$80.0 billion) and new home transactions rising by 53.0% to RMB232.2 billion (US$32.0 billion) [8]. - Net revenues reached RMB23.3 billion (US$3.2 billion), marking a 42.4% increase year-over-year, driven by growth in both existing and new home transaction services [12]. - Net income for Q1 2025 was RMB855 million (US$118 million), a significant increase of 97.9$192 million) [8]. - Total net revenues for the three months ended March 31, 2025, increased to RMB 23,328,347, representing a 42.5% growth compared to RMB 16,377,314 for the same period in 2024 [56]. - Net income attributable to KE Holdings Inc. for the three months ended March 31, 2025, was RMB 855,767, up from RMB 431,774 in the same period of 2024, reflecting a 98.1% increase [57]. Revenue Breakdown - Net revenues from existing home transaction services were RMB6.9 billion (US$0.9 billion), up 20.0$1.1 billion), a 64.2% increase [12]. - The company reported a significant increase in new home transaction services revenue, which rose to RMB 8,074,995 for the three months ended March 31, 2025, up from RMB 4,916,515 in the same period of 2024, marking a 64.4% increase [56]. - Net revenues from existing home transaction services reached RMB 6,870,407, up from RMB 5,727,030, representing a growth of approximately 20% [64]. - New home transaction services generated net revenues of RMB 8,074,995, a substantial increase from RMB 4,916,515, marking a growth of about 64% [64]. - The contribution from home renovation and furnishing services increased to RMB 959,487, compared to RMB 737,130, reflecting a growth of approximately 30% [64]. Operational Metrics - The number of active stores increased by 29.6% year-over-year to 55,210, and the number of active agents rose by 23.0% to 490,862 as of March 31, 2025 [8]. - Mobile monthly active users (MAU) averaged 44.5 million in Q1 2025, a decrease from 47.7 million in the same period of 2024 [9]. - Income from operations was RMB591 million (US$81 million) in Q1 2025, a significant increase from RMB12 million in Q1 2024, resulting in an operating margin of 2.5$158 million) in Q1 2025, up from RMB960 million in Q1 2024, with an adjusted operating margin of 4.9% compared to 5.9% in the same period last year [25]. Expenses and Costs - Total cost of revenues increased by 51.0% to RMB18.5 billion (US$2.6 billion) in Q1 2025, primarily due to higher costs associated with increased transaction volumes [17]. - General and administrative expenses decreased to RMB1.9 billion (US$0.3 billion) in Q1 2025 from RMB2.0 billion in Q1 2024, primarily due to reduced share-based compensation expenses [29]. - Research and development expenses rose by 24.9% to RMB584 million (US$80 million) in Q1 2025 from RMB467 million in Q1 2024, driven by increased headcount and technical service costs [29]. Shareholder Returns - The company allocated approximately US$139 million to share repurchases in Q1 2025, representing about 0.6% of total issued shares at the end of 2024 [13]. - The company has repurchased approximately 116.6 million ADSs (representing about 349.9 million Class A ordinary shares) for a total consideration of approximately US$1,764.8 million under its share repurchase program since its launch [37]. - The company plans to continue its share repurchase program until August 31, 2025, subject to obtaining a new mandate from shareholders [37]. Cash and Assets - As of March 31, 2025, the combined balance of cash, cash equivalents, restricted cash, and short-term investments was RMB54.8 billion (US$7.6 billion) [34]. - Cash and cash equivalents as of March 31, 2025, were RMB 12,772,700, an increase from RMB 11,442,965 as of December 31, 2024 [53]. - Total assets decreased slightly to RMB 130,612,461 as of March 31, 2025, from RMB 133,149,283 as of December 31, 2024 [55]. - Total current liabilities remained stable at RMB 52,761,664 as of March 31, 2025, compared to RMB 52,744,258 as of December 31, 2024 [54]. - Total shareholders' equity decreased to RMB 68,951,339 as of March 31, 2025, from RMB 71,447,995 as of December 31, 2024 [55]. Earnings Per Share - Basic and diluted net income per ADS attributable to ordinary shareholders was RMB0.76 (US$0.10) and RMB0.73 (US$0.10) in Q1 2025, compared to RMB0.38 and RMB0.37 in Q1 2024, respectively [32]. - Adjusted net income attributable to ordinary shareholders was RMB1,393 million (US$192 million) in Q1 2025, relatively flat compared to RMB1,392 million in Q1 2024 [30]. - The weighted average number of ordinary shares used in computing net income per share, basic, was 3,362,716,016 for the three months ended March 31, 2025 [58]. - The weighted average number of ADS used in computing net income per ADS, diluted, was 1,174,000,690 for the three months ended March 31, 2025 [60]. Cash Flow - The company experienced a net cash used in operating activities of RMB 3,965,271, an increase from RMB 2,108,532 in the prior year, indicating higher operational expenditures [62]. - The company’s cash, cash equivalents, and restricted cash at the end of the period were RMB 22,918,385, down from RMB 24,783,312 at the beginning of the period [62]. - Adjusted EBITDA for the three months ended March 31, 2025, was RMB 1,841,720, an increase from RMB 1,665,669 in the previous year [59].