BEKE(BEKE)2024-05-24 12:08Financial Performance - Gross transaction value (GTV) decreased by 35.2% year-over-year to RMB629.9 billion (US2.3 billion), primarily due to declines in existing and new home transaction services[5][16]. - Net income was RMB432 million (US193 million)[5][13]. - Total net revenues for the three months ended March 31, 2024, were RMB 16,377,314, a decrease of 19.0% compared to RMB 20,278,080 for the same period in 2023[68]. - Net income attributable to KE Holdings Inc. was RMB 431,774 for the three months ended March 31, 2024, a decrease of 84.3% from RMB 2,746,844 in the prior year[71]. - Adjusted net income for the three months ended March 31, 2024, was RMB 1,392,217, down from RMB 3,561,263 in the same period of 2023[76]. - The company reported a total comprehensive income of RMB 493,788 for the three months ended March 31, 2024, compared to RMB 2,424,671 in the previous year[71]. Revenue Breakdown - Revenue from home renovation and furnishing surged by 71.1% year-over-year to RMB2.4 billion (US0.4 billion), attributed to the growth in rental units under the Carefree Rent model[21]. - Existing home transaction services generated RMB 5,577,030 in revenue, down 39.0% from RMB 9,181,199 year-over-year[68]. - Home rental services saw a significant increase in revenue, reaching RMB 2,625,203, up 189.5% from RMB 907,354 in the previous year[68]. - Home renovation and furnishing services saw an increase in net revenues to RMB 2,408,848, up 70.83% from RMB 1,407,931 in the same period of 2023[84]. Expenses and Margins - Total operating expenses increased by 21.9% to RMB4.1 billion (US0.6 billion) in Q1 2024 from RMB6.3 billion in Q1 2023, with a gross margin of 25.2% compared to 31.3% in the same period last year[27]. - Income from operations was RMB12 million (US133 million) in Q1 2024, compared to RMB3,830 million in Q1 2023, with an adjusted operating margin of 5.9% versus 18.9% in the same period last year[32]. Shareholder Returns and Repurchases - The company allocated approximately US2 billion of its Class A ordinary shares and/or ADSs until August 31, 2024, with approximately 76.6 million ADSs purchased for a total consideration of approximately US8.4 billion)[39]. - The company's cash and cash equivalents decreased to RMB 17,845,299 thousand from RMB 19,634,716 thousand over the same period[59]. - KE Holdings Inc. reported a decrease in total shareholders' equity to RMB 69,124,976 thousand as of March 31, 2024, down from RMB 72,201,105 thousand as of December 31, 2023[65]. - The company’s accumulated deficit improved slightly from RMB (5,672,916) thousand to RMB (5,241,142) thousand, indicating a reduction in losses[65]. - The total current assets increased to RMB 70,543,525 thousand as of March 31, 2024, from RMB 69,753,623 thousand as of December 31, 2023, showing a growth of approximately 1.1%[59]. User Engagement - Mobile monthly active users (MAU) averaged 47.7 million in Q1 2024, up from 45.4 million in the same period of 2023[5]. - The weighted average number of ordinary shares used in computing net income per share, basic and diluted, was 3,439,606,429 for the three months ended March 31, 2024[74]. Foreign Currency and Cash Flow - The company experienced a foreign currency exchange loss of RMB 17,748 for the three months ended March 31, 2024, compared to a gain of RMB 34,707 in the previous year[68]. - The company experienced a net cash used in operating activities of RMB 915,276 for the three months ended March 31, 2024, compared to a net cash provided by operating activities of RMB 7,627,833 in the same period of 2023[81]. - KE Holdings Inc. had cash, cash equivalents, and restricted cash of RMB 24,783,312 at the end of the period on March 31, 2024, down from RMB 38,454,355 at the end of the same period in 2023[81].