KE Holdings Inc. (“Beike” or the “Company”) (NYSE: BEKE), 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,
2020.
Business Highlights for the Fourth Quarter of 2020
- Gross transaction value (GTV)1 was RMB1,120.0 billion
(US$171.6 billion), an increase of 65.4% year-over-year. GTV of
existing home transactions was RMB584.7 billion (US$89.6
billion), an increase of 69.8% year-over-year. GTV of new home
transactions was RMB469.2 billion (US$71.9 billion), an
increase of 55.5% year-over-year. GTV of emerging and other
services was RMB66.1 billion (US$10.1 billion), an increase of
113.2% year-over-year.
- Net revenues were RMB22.7 billion (US$3.5 billion), an
increase of 57.6% year-over-year.
- Net income was RMB1,096 million (US$168 million).
Adjusted net income2 was RMB2,001 million (US$307
million), an increase of 4,424.8% year-over-year.
- Number of stores was 46,946 as of December 31, 2020, a
25.1% increase from one year ago.
- Number of agents was 493,088 as of December 31, 2020, a
37.9% increase from one year ago.
- Mobile monthly active users (MAU)3 averaged 48.2
million, an increase of 88.3% year-over-year.
Business Highlights for the Fiscal Year 2020
- GTV was RMB3,499.1 billion (US$536.3 billion), an
increase of 64.5% year-over-year. GTV of existing home
transactions was RMB1,940.0 billion (US$297.3 billion), an
increase of 49.5% year-over-year. GTV of new home
transactions was RMB1,383.0 billion (US$211.9 billion), an
increase of 85.0% year-over-year. GTV of emerging and other
services was RMB176.1 billion (US$27.0 billion), an increase of
113.0% year-over-year.
- Net revenues were RMB70.5 billion (US$10.8 billion), an
increase of 53.2% year-over-year.
- Net income was RMB2,778 million (US$426 million).
Adjusted net income was RMB5,720 million (US$877 million),
an increase of 245.4% year-over-year.
Mr. Stanley Yongdong Peng, Co-founder and Chief Executive
Officer of Beike, commented, “We achieved exceptional growth in
2020, closing the year with solid fourth quarter operational and
financial results. Our massive scale, operating efficiency and
high-quality services, combined with strong network effects, have
created a virtuous cycle, spurring a 64.5% year-over-year jump in
our full year GTV to RMB3.5 trillion. The ground we’ve covered in
the past year has cemented our confidence that the value brought by
our commitment to doing the right thing even if it’s difficult, is
the foundation for all our achievements.
With a focus on creating value for our customers and empowering
stores and agents, our GTV for existing home transaction services
grew by a substantial 49.5% to RMB1.94 trillion in 2020. Our
platform vigorously promoted 8 core commitments to our customers,
including authentic listing guarantees and transaction fund escrow
services, which penetrated 84% of stores in the top 30 cities in
the fourth quarter of 2020. GTV for new home transaction services
climbed by 85% to RMB1.38 trillion in 2020, owing to our
three-pronged approach of ensuring satisfaction of customers’
needs, supporting service providers, and establishing relationships
with an increasing number of real estate developers and providing
more tailored and more efficient services that cater to their
needs. We extended commission advances covering more than 40% of
new home sales commission-split to connected stores and other
platform participants in 2020, and successfully brought the whole
process online. During the year, we also made solid headway in home
decoration and renovation services, as well as financial services
in preparation for our next phase of growth.
For 2021, we have five focus areas - taking care of our
customers, supporting service providers, cultivating our emerging
services, creating social value, and enhancing technology’s
critical role in this broad market opportunity. We are confident of
our growth trajectory, as we move closer to realizing our vision of
providing comprehensive and trusted housing services to 300 million
families in China,” concluded Mr. Peng.
Mr. Tao Xu, Chief Financial Officer of Beike, further commented,
“We delivered another quarter of solid financial results, marked by
high revenue growth and strong profitability. Our total net
revenues in the fourth quarter increased by 57.6% year-over-year to
RMB22.7 billion, exceeding the high end of our previous guidance
range. We are also very pleased to witness that over 30% of stores
on Beike platform had an annual GTV of RMB50 million or more in
2020, which we believe is an adequate level to support sustainable
growth of the stores, compared to 19% in prior year, demonstrating
the strong network effects of our agent cooperation network (ACN).
Going forward, we will remain focused on taking better care of
consumers and support platform participants such as brokerage
brands, store owners, agents and real estate developers to take
better care of consumers, while continuously strengthening our
competitive moat and growing our business at a fast pace. As we
continue to invest in our ACN infrastructure, user base expansion
and innovative A.I. technologies, we are confident that we will
further enhance our monetization capabilities and deliver
sustainable growth.”
Fourth Quarter 2020 Financial Results
Net Revenues
Net revenues increased by 57.6% to RMB22.7 billion
(US$3.5 billion) in the fourth quarter of 2020 from RMB14.4 billion
in the same period of 2019. The increase was driven by the total
GTV growth of 65.4% to RMB1,120.0 billion (US$171.6 billion) in the
fourth quarter of 2020 from RMB677.1 billion in the same period of
2019.
- Net revenues from existing home transaction services
increased by 56.1% to RMB9.2 billion (US$1.4 billion) in the fourth
quarter of 2020 from RMB5.9 billion in the same period of 2019,
primarily attributable to a 69.8% increase in GTV of existing home
transactions to RMB584.7 billion (US$89.6 billion) in the fourth
quarter of 2020 from RMB344.3 billion in the same period of 2019.
Among that, (i) the revenue 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 64.8% to RMB1.0 billion (US$0.2 billion) in
the fourth quarter of 2020 from RMB0.6 billion in the same period
of 2019, as the GTV of existing home transactions served by
connected agents on the Company’s platform increased by 95.4% to
RMB283.8 billion (US$43.5 billion) in the fourth quarter of 2020
from RMB145.2 billion in the same period of 2019, as well as
moderate increase in existing home transaction commission rate
charged from connected stores. The growth rate of GTV of existing
home transactions served by connected agents exceeded that of the
revenue derived from platform service, franchise service and other
value-added services, primarily due to fee remission on recruiting,
training and other VAS services, as well as a decrease in the total
amount of upfront onboard fee charged to newly connected stores;
and (ii) commission revenue increased by 55.1% to RMB8.2
billion (US$1.3 billion) in the fourth quarter of 2020 from RMB5.3
billion in the same period of 2019, driven by the GTV of existing
home transactions served by the Company’s Lianjia brand increased
by 51.l% to RMB300.9 billion (US$46.1 billion) in the fourth
quarter of 2020 from RMB199.1 billion in the same period of
2019.
- Net revenues from new home transaction services
increased by 58.8% to RMB12.9 billion (US$2.0 billion) in the
fourth quarter of 2020 from RMB8.1 billion in the same period of
2019, primarily attributable to an increase of 55.5% in the GTV of
new home transactions to RMB469.2 billion (US$71.9 billion) in the
fourth quarter of 2020 from RMB301.7 billion in the same period of
2019. The GTV of new home transactions served by Lianjia brand
increased by 26.0% to RMB80.5 billion (US$12.3 billion) from
RMB63.8 billion in the same period of 2019, while the GTV of new
home transaction services completed on Beike platform through
connected agents and other sales channels increased by 63.4% to
RMB388.7 billion (US$59.6 billion) from RMB237.9 billion in the
same period of 2019.
- Net revenues from emerging and other services increased
by 58.1% to RMB0.6 billion (US$0.1 billion) in the fourth quarter
of 2020 from RMB0.4 billion in the same period of 2019. The
increase was primarily attributable to the increase of penetration
level in the Company’s financial services around the housing
transaction services, as well as increased number of home
decorations units completed through the Company’s platform.
Cost of Revenues
Total cost of revenues increased by 48.2% to RMB17.2
billion (US$2.6 billion) in the fourth quarter of 2020 from RMB11.6
billion in the same period of 2019, primarily attributable to the
increase in both split commission to connected agents and other
sales channels, and internal commission and compensation.
- Commission - split. The Company’s cost of revenues for
commissions to connected agents and other sales channels increased
by 59.2% to RMB8.7 billion (US$1.3 billion) in the fourth quarter
of 2020 from RMB5.5 billion in the same period of 2019. The
increase was primarily attributable to the incremental increase in
the number 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 increased
by 38.6% to RMB6.8 billion (US$1.0 billion) in the fourth quarter
of 2020 from RMB4.9 billion in the same period of 2019. The
increase was primarily attributable to the increase in the number
of new and existing home transactions completed through Lianjia
brand.
- Cost related to stores. The Company’s cost related to
stores increased by 19.0% to RMB0.9 billion (US$0.1 billion) in the
fourth quarter of 2020 as compared to RMB0.8 billion in the same
period of 2019, mainly due to the increase in the number of stores
under Lianjia brand in top tier cities with higher rental cost, as
well as a moderate increase in store level rental cost
year-over-year.
- Other cost. The Company’s other cost increased by 71.0%
to RMB0.8 billion (US$0.1 billion) in the fourth quarter of 2020 as
compared to RMB0.5 billion in the same period of 2019, mainly due
to the increase in share-based compensation.
Gross Profit
Gross profit increased by 97.4% to RMB5.4 billion (US$0.8
billion) in the fourth quarter of 2020 from RMB2.7 billion in the
same period of 2019. Gross margin increased to 23.9% in the fourth
quarter of 2020 from 19.1% in the same period of 2019. The increase
in gross margin was mainly attributable to the decrease of internal
commission and compensation as percentage of net revenues from
existing home transactions services completed through Lianjia
brand, as well as the decrease of commission split as percentage of
net revenues from new home transactions services completed through
connected agents and other sales channels.
Income (Loss) from
Operations
Total operating expenses decreased to RMB4.2 billion
(US$0.6 billion) in the fourth quarter of 2020 from RMB5.9 billion
in the same period of 2019.
- General and administrative expenses were RMB1,884
million (US$289 million) in the fourth quarter of 2020, compared to
RMB4,562 million in the same period of 2019, mainly due to the
decrease of share-based compensation expenses.
- Sales and marketing expenses were RMB1,323 million
(US$203 million) in the fourth quarter of 2020, compared to RMB831
million in the same period of 2019, mainly due to the increase of
the brand advertising and promotional marketing activities.
- Research and development expenses were RMB714 million
(US$109 million) in the fourth quarter of 2020, compared to RMB478
million in the same period of 2019, mainly due to the increase of
share-based compensation expenses.
Income from operations was RMB1,267 million (US$194
million) in the fourth quarter of 2020, compared to loss from
operations of RMB3,123 million in the same period of 2019.
Operating margin was 5.6% in the fourth quarter of 2020,
compared to negative 21.7% in the same period of 2019, primarily
due to the decrease of share-based compensation expenses.
Adjusted income from operations4 was RMB2,231
million (US$342 million) in the fourth quarter of 2020, compared to
adjusted loss from operations of RMB80 million in the same period
of 2019. Adjusted operating margin5 was 9.8% in the
fourth quarter of 2020, compared to negative 0.6% in the same
period of 2019, mainly attributable to the increase of gross margin
and improvement of operating leverage. Adjusted
EBITDA6 increased by 2,183.9% to RMB2,897 million
(US$444 million) in the fourth quarter of 2020 from RMB127 million
in the same period of 2019.
Net Income (Loss)
Net income was RMB1,096 million (US$168 million) in the
fourth quarter of 2020, compared to net loss of RMB3,121 million in
the same period of 2019.
Adjusted net income increased by 4,424.8% to RMB2,001
million (US$307 million) in the fourth quarter of 2020 from RMB44
million in the same period of 2019.
Net Income (Loss) attributable to KE
Holdings Inc.’s ordinary shareholders
Net income attributable to KE Holdings Inc.’s ordinary
shareholders was RMB1,095 million (US$168 million) in the
fourth quarter of 2020, compared to net loss attributable to KE
Holdings Inc.’s ordinary shareholders of RMB3,699 million in the
same period of 2019.
Adjusted net income attributable to KE Holdings
Inc.7 increased by 4,508.2% to RMB2,000 million (US$307
million) in the fourth quarter of 2020 from RMB43 million in the
same period of 2019.
Net Income (Loss) per
ADS
Diluted net income per ADS attributable to KE Holdings Inc.’s
ordinary shareholders8 was RMB0.93 (US$0.14) in the
fourth quarter of 2020, compared to diluted net loss per ADS
attributable to KE Holdings Inc.’s ordinary shareholders of RMB7.99
in the same period of 2019.
Adjusted diluted net income per ADS attributable to KE
Holdings Inc.’s ordinary shareholders9 was RMB1.71
(US$0.26) in the fourth quarter of 2020, compared to adjusted
diluted net loss per ADS attributable to KE Holdings Inc.’s
ordinary shareholders of RMB1.15 in the same period of 2019.
Cash, Cash Equivalents, Restricted Cash
and Short-Term Investments
As of December 31, 2020, the combined balance of the Company’s
cash, cash equivalents, restricted cash and short-term investments
amounted to RMB65.2 billion (US$10.0 billion).
Fiscal Year 2020 Financial Results
Net Revenues
Net revenues increased by 53.2% to RMB70.5 billion
(US$10.8 billion) in 2020 from RMB46.0 billion in 2019. The
increase was driven by the robust total GTV growth by 64.5% to
RMB3,499.1 billion (US$536.3 billion) in 2020 from RMB2,127.7
billion in 2019.
- Net revenues from existing home transaction services
increased by 24.4% to RMB30.6 billion (US$4.7 billion) in 2020 from
RMB24.6 billion in 2019, primarily attributable to a 49.5% increase
in GTV of existing home transactions to RMB1,940.0 billion
(US$297.3 billion) in 2020 from RMB1,297.4 billion in 2019. The
higher growth rate of GTV of existing home transaction services was
primarily attributable to the GTV mix shift in existing home
transaction services from GTV served by Lianjia brand where revenue
is recorded on a gross commission revenue basis, towards GTV served
by connected agents on the Company’s platform, where revenue is
recorded on a net basis from platform service, franchise service
and other value-added services. Among that, (i) the revenue
derived from platform service, franchise service and other
value-added services increased by 94.3% to RMB3.0 billion
(US$0.5 billion) in 2020 from RMB1.5 billion in 2019, as the GTV of
existing home transactions served by connected agents on the
Company’s platform increased by 109.9% to RMB928.1 billion
(US$142.2 billion) in 2020 from RMB442.1 billion in 2019, as well
as moderate increase in existing home transaction commission rate
charged from connected stores; and (ii) commission revenue
increased by 19.7% to RMB27.6 billion (US$4.2 billion) in 2020 from
RMB23.0 billion in 2019, driven by the GTV of existing home
transactions served by the Company’s Lianjia brand increased by
18.3% to RMB1,011.9 billion (US$155.1 billion) in 2020 from
RMB855.3 billion in 2019.
- Net revenues from new home transaction services
increased by 87.1% to RMB37.9 billion (US$5.8 billion) in 2020 from
RMB20.3 billion in 2019, primarily attributable to an increase of
85.0% in the GTV of new home transactions to RMB1,383.0 billion
(US$211.9 billion) in 2020 from RMB747.6 billion in 2019. The GTV
of new home transactions served by Lianjia brand increased by 37.2%
to RMB276.7 billion (US$42.4 billion), while the GTV of new home
transaction services completed on the Company’s platform through
connected agents and other sales channels increased by 102.7%
year-over-year to RMB1,106.3 billion (US$169.5 billion).
- Net revenues from emerging and other services increased
by 68.7% to RMB2.0 billion (US$0.3 billion) in 2020 from RMB1.2
billion in 2019. The increase was primarily attributable to the
increase of service penetration level in the Company’s financial
services around the housing transaction services, as well as the
increase in revenues from other services.
Cost of Revenues
Total cost of revenues increased by 54.3% to RMB53.6
billion (US$8.2 billion) in 2020 from RMB34.7 billion in 2019,
primarily due to the increase in both split commission to connected
agents and other sales channels, and internal commission and
compensation.
- Commission - split. The Company’s cost of revenues for
commissions to connected agents and other sales channels increased
by 122.7% to RMB24.8 billion (US$3.8 billion) in 2020 from RMB11.2
billion in 2019.
- Commission and compensation - internal. The Company’s
cost of revenues for internal commission and compensation increased
by 20.0% to RMB23.3 billion (US$3.6 billion) in 2020 from RMB19.4
billion in 2019.
- Cost related to stores. The Company’s cost related to
stores increased by 4.2% to RMB3.2 billion (US$0.5 billion) in 2020
from RMB3.1 billion in 2019.
- Other cost. The Company’s other cost increased by 109.8%
to RMB2.2 billion (US$0.3 billion) in 2020 from RMB1.1 billion in
2019, mainly due to the increase in share-based compensation.
Gross Profit
Gross profit increased by 49.6% to RMB16.9 billion (US$2.6
billion) in 2020 from RMB11.3 billion in 2019. Gross margin was
23.9% in 2020, compared to 24.5% in 2019. The decrease in gross
margin was mainly due to a continuing revenue mix shift towards new
home transaction services.
Income (Loss) from
Operations
Total Operating expenses increased by 7.4% to RMB14.0
billion (US$2.1 billion) in 2020 from RMB13.1 billion in 2019.
- General and administrative expenses were RMB7,589
million (US$1,163 million) in 2020, compared to RMB8,377 million in
2019, mainly due to the decrease of share-based compensation
expenses.
- Sales and marketing expenses were RMB3,715 million
(US$569 million) in 2020, compared to RMB3,106 million in 2019,
mainly due to the increase of the brand advertising and promotional
marketing activities.
- Research and development expenses were RMB2,478 million
(US$380 million) in 2020, compared to RMB1,571 million in 2019,
mainly due to the increase of share-based compensation expenses,
and the increase in headcount of experienced research and
development personnel.
Income from operations was RMB2,842 million (US$436
million) in 2020, compared to loss from operations of RMB1,786
million in 2019. Operating margin was 4.0% in 2020, compared
to negative 3.9% in 2019, primarily attributable to the decrease of
share-based compensation expenses.
Adjusted income from operations increased by 206.2% to
RMB5,935 million (US$910 million) in 2020 from RMB1,938 million in
2019. Adjusted operating margin increased to 8.4% in 2020
from 4.2% in 2019. Adjusted EBITDA increased by 165.2% to
RMB7,738 million (US$1,186 million) in 2020 from RMB2,917 million
in 2019.
Net Income (Loss)
Net income was RMB2,778 million (US$426 million) in 2020,
compared to net loss of RMB2,180 million in 2019.
Adjusted net income increased by 245.4% to RMB5,720
million (US$877 million) in 2020 from RMB1,656 million in 2019.
Net Income (Loss) attributable to KE
Holdings Inc.’s Ordinary Shareholders
Net income attributable to KE Holdings Inc.’s ordinary
shareholders was RMB720 million (US$110 million) in 2020,
compared to net loss attributable to KE Holdings Inc.’s ordinary
shareholders of RMB4,050 million in 2019.
Adjusted net income attributable to KE Holdings Inc.
increased by 246.3% to RMB5,717 million (US$876 million) in 2020
from RMB1,651 million in 2019.
Net Income (Loss) per
ADS
Diluted net income per ADS attributable to KE Holdings Inc.’s
ordinary shareholders was RMB0.95 (US$0.15) in 2020, compared
to diluted net loss per ADS attributable to KE Holdings Inc.’s
ordinary shareholders of RMB8.82 in 2019.
Adjusted diluted net income per ADS attributable to KE
Holdings Inc.’s ordinary shareholders was RMB3.69 (US$0.57) in
2020, compared to adjusted diluted net loss per ADS attributable to
KE Holdings Inc.’s ordinary shareholders of RMB0.47 in 2019.
Business Outlook
For the first quarter of 2021, the Company expects total net
revenues to be between RMB18.5 billion (US$2.8 billion) and RMB19.5
billion (US$3.0 billion), representing an increase of approximately
159.8% to 173.9% from the same quarter of 2020. This business
outlook reflects the Company’s current and preliminary view on the
business situation and market condition, which is subject to
change.
Conference Call Information
The Company will hold a conference call on 9:00 PM U.S. Eastern
Time on Monday, March 15, 2021 (9:00 AM Beijing/Hong Kong Time on
Tuesday, March 16, 2021) to discuss the financial results. Details
for the conference call are as follows:
Event Title: KE Holdings Inc. Fourth Quarter and Fiscal Year
2020 Earnings Conference Call
Conference ID: 5058058
All participants must use the link provided below to complete
the online registration process in advance of the conference call.
Upon registering, each participant will receive a set of
participant dial-in numbers, the Direct Event passcode, and a
unique registrant ID by email.
PRE-REGISTER LINK:
http://apac.directeventreg.com/registration/event/5058058
A live and archived webcast of the conference call will also be
available at the Company’s investor relations website at
http://investors.ke.com/.
The replay will be accessible through March 23, 2021, by dialing
the following numbers:
United States Toll Free:
+1-855-452-5696
Mainland, China:
400-602-2065
Hong Kong, China:
+852-3051-2780
International:
+61-2-8199-0299
Conference ID:
5058058
Exchange Rate
This announcement contains translations of certain RMB amounts
into U.S. dollars ("US$") 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 RMB6.5250 to
US$1.00, the noon buying rate in effect on December 31, 2020, in
the H.10 statistical release of the Federal Reserve Board. The
Company makes no representation that the RMB or US$ 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., 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,
(iii) changes in fair value of financial assets recognized as
deemed marketing expenses and (iv) impairment of goodwill and
intangible 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 and
intangible assets, (v) impairment of investments and (vi) tax
effects of the above non-GAAP adjustments. Adjusted net income
(loss) attributable to KE Holdings Inc. is defined as net
income (loss) attributable to KE Holdings Inc., 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 and intangible 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) interest income, net, (ii) income tax expense
(benefit), (iii) depreciation of property and equipment, (iv)
amortization of intangible assets, (v) share-based compensation
expenses, (vi) changes in fair value from long term investments,
loan receivables measured at fair value and contingent
consideration, (vii) impairment of goodwill and intangible 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 the industry infrastructure and standards in
China to reinvent how service providers and housing customers
efficiently navigate and consummate housing transactions, ranging
from existing and new home sales, home rentals, to home renovation,
real estate financial solutions, 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 19
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 the industry 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 business outlook
and 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”), 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’s platform; competition in our industry;
relevant government policies and regulations relating to our
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. 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.
KE Holdings Inc.
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
(All amounts in thousands,
except for share, per share data)
As of December
31,
As of December
31,
2019
2020
RMB
RMB
US$
ASSETS
Current assets
Cash and cash equivalents
24,319,332
40,969,979
6,278,924
Restricted cash
7,380,341
8,567,496
1,313,026
Short-term investments
1,844,595
15,688,321
2,404,340
Short-term financing receivables, net of
allowance for
credit losses of RMB92,223 and RMB113,905
as of
December 31, 2019 and 2020,
respectively
2,125,621
3,931,641
602,550
Accounts receivable, net of allowance for
credit losses
of RMB460,962 and RMB1,122,218 as of
December 31, 2019 and 2020,
respectively
8,093,219
13,183,559
2,020,469
Amounts due from and prepayments to
related parties
927,306
484,349
74,230
Loan receivables from related parties
1,929,076
36,378
5,575
Prepayments, receivables and other
assets
5,292,996
4,677,378
716,840
Total current assets
51,912,486
87,539,101
13,415,954
Non-current assets
Property and equipment, net
1,134,228
1,472,460
225,664
Right-of-use assets
5,625,015
6,821,100
1,045,380
Long-term financing receivables, net of
allowance for
credit losses of RMB847 and RMB13,414 as
of
December 31, 2019 and 2020,
respectively
265,868
218,018
33,413
Long-term investments, net
2,333,745
3,140,315
481,274
Intangible assets, net
2,560,442
1,642,651
251,747
Goodwill
2,477,075
2,467,497
378,160
Non-current restricted cash
230,903
-
-
Other non-current assets
725,550
994,394
152,398
Total non-current assets
15,352,826
16,756,435
2,568,036
TOTAL ASSETS
67,265,312
104,295,536
15,983,990
KE Holdings Inc.
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS (Continued)
(All amounts in thousands,
except for share, per share data)
As of December 31,
As of December 31,
2019
2020
RMB
RMB
US$
LIABILITIES
Current liabilities
Accounts payable
4,212,705
6,594,846
1,010,704
Amounts due to related parties
263,659
254,255
38,966
Employee compensation and welfare
payable
9,113,011
11,231,800
1,721,349
Customer deposits payable
4,382,803
6,743,256
1,033,451
Income taxes payable
994,815
986,465
151,182
Short-term borrowings
720,000
-
-
Lease liabilities current portion
2,222,745
2,625,979
402,449
Short-term funding debts
2,291,723
1,512,510
231,802
Contract liabilities
593,373
734,157
112,514
Accrued expenses and other current
liabilities
3,002,841
2,950,078
452,119
Total current liabilities
27,797,675
33,633,346
5,154,536
Non-current liabilities
Deferred tax liabilities
22,446
17,289
2,650
Lease liabilities non-current portion
2,914,240
3,833,914
587,572
Long-term borrowings
4,890,030
-
-
Long-term funding debts
7,500
15,000
2,299
Other non-current liabilities
97,829
3,471
532
Total non-current liabilities
7,932,045
3,869,674
593,053
TOTAL LIABILITIES
35,729,720
37,503,020
5,747,589
KE Holdings Inc.
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS (Continued)
(All amounts in thousands,
except for share, per share data)
As of December 31,
As of December 31,
2019
2020
RMB
RMB
US$
MEZZANINE EQUITY
Series B convertible redeemable preferred
shares
(US$0.00002 par value; 750,000,000 shares
authorized,
298,483,760 issued and outstanding with
redemption value
of RMB6,406,056 as of December 31, 2019;
nil
authorized, issued and outstanding as of
December 31,
2020)
6,406,056
-
-
Series C convertible redeemable preferred
shares
(US$0.00002 par value; 750,000,000 shares
authorized,
470,568,175 issued and outstanding with
redemption value
of RMB12,118,251 as of December 31, 2019;
nil
authorized, issued and outstanding as of
December 31,
2020)
12,118,251
-
-
Series D convertible redeemable preferred
shares
(US$0.00002 par value; 1,000,000,000
shares
authorized,430,835,530 issued and
outstanding with
redemption value of RMB11,831,223 as of
December 31,
2019; nil authorized, issued and
outstanding as of
December 31, 2020)
11,831,223
-
-
Series D+ convertible redeemable preferred
shares
(US$0.00002 par value; 750,000,000 shares
authorized,
310,879,155 issued and outstanding with
redemption value
of RMB10,017,365 as of December 31, 2019;
nil
authorized, issued and outstanding as of
December 31,
2020)
10,017,365
-
-
TOTAL MEZZANINE EQUITY
40,372,895
-
-
SHAREHOLDERS’ EQUITY (DEFICIT)
KE Holdings Inc. shareholders’ equity
(deficit)
Ordinary Shares (US$0.00002 par value;
25,000,000,000
ordinary shares authorized,
comprising of 23,614,698,720
Class A ordinary shares,
885,301,280 Class B ordinary
shares and 500,000,000 shares
each of such classes to be
designated, 584,865,410 and
2,666,966,855 Class A
ordinary shares issued and
outstanding as of December 31,
2019 and December 31, 2020;
885,301,280 Class B
ordinary shares issued and
outstanding as of December 31,
2019 and December 31, 2020)
202
482
74
Additional paid-in capital
2,533,889
77,433,882
11,867,262
Statutory reserves
253,732
392,834
60,204
Accumulated other comprehensive income
(loss)
63,308
(1,834,087)
(281,086)
Accumulated deficit
(11,775,637)
(9,227,664)
(1,414,202)
Total KE Holdings Inc. shareholders'
equity
(deficit)
(8,924,506)
66,765,447
10,232,252
Non-controlling interests
87,203
27,069
4,149
TOTAL SHAREHOLDERS' EQUITY
(DEFICIT)
(8,837,303)
66,792,516
10,236,401
TOTAL LIABILITIES, MEZZANINE
EQUITY
AND SHAREHOLDERS’ EQUITY
67,265,312
104,295,536
15,983,990
KE Holdings Inc.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(All amounts in thousands,
except for share, per share data, ADS and per ADS data)
For the
three months ended
For the year ended
December 31, 2019
December 31, 2020
December 31, 2020
December 31, 2019
December 31, 2020
December 31, 2020
RMB
RMB
US$
RMB
RMB
US$
Net revenues
Existing home transaction services
5,869,149
9,159,677
1,403,782
24,568,508
30,564,584
4,684,227
New home transaction services
8,117,637
12,886,750
1,974,981
20,273,860
37,937,886
5,814,235
Emerging and other services
394,756
624,218
95,666
1,172,538
1,978,508
303,220
Total net revenues
14,381,542
22,670,645
3,474,429
46,014,906
70,480,978
10,801,682
Cost of revenues
Commission-split
(5,485,217)
(8,731,868)
(1,338,217)
(11,154,698)
(24,847,023)
(3,807,972)
Commission and compensation-internal
(4,898,538)
(6,790,070)
(1,040,624)
(19,444,127)
(23,324,145)
(3,574,582)
Cost related to stores
(794,958)
(946,262)
(145,021)
(3,078,672)
(3,206,601)
(491,433)
Others
(455,068)
(778,225)
(119,268)
(1,069,365)
(2,243,352)
(343,809)
Total cost of revenues(1)
(11,633,781)
(17,246,425)
(2,643,130)
(34,746,862)
(53,621,121)
(8,217,796)
Gross profit
2,747,761
5,424,220
831,299
11,268,044
16,859,857
2,583,886
Operating expenses
Sales and marketing expenses(1)
(830,923)
(1,323,369)
(202,815)
(3,105,899)
(3,715,278)
(569,391)
General and administrative expenses(1)
(4,561,650)
(1,883,606)
(288,676)
(8,376,531)
(7,588,809)
(1,163,037)
Research and development expenses(1)
(478,065)
(714,391)
(109,485)
(1,571,154)
(2,477,911)
(379,756)
Impairment of goodwill and intangible
assets
-
(236,050)
(36,176)
-
(236,050)
(36,176)
Total operating expenses
(5,870,638)
(4,157,416)
(637,152)
(13,053,584)
(14,018,048)
(2,148,360)
Income (loss) from operations
(3,122,877)
1,266,804
194,147
(1,785,540)
2,841,809
435,526
Interest income, net
61,961
4,674
716
230,339
163,600
25,073
Share of results of equity investees
(3,049)
(42,386)
(6,496)
11,382
(37,574)
(5,758)
Fair value changes in investments, net
(121,018)
304,156
46,614
(109,193)
360,124
55,191
Foreign currency exchange gain (loss)
(33,199)
4,190
642
(54,052)
3,506
537
Other income, net
101,641
275,069
42,156
431,300
1,055,654
161,786
Income (loss) before income tax
expense
(3,116,541)
1,812,507
277,779
(1,275,764)
4,387,119
672,355
Income tax expense
(4,859)
(716,951)
(109,878)
(904,363)
(1,608,796)
(246,558)
Net income (loss)
(3,121,400)
1,095,556
167,901
(2,180,127)
2,778,323
425,797
KE Holdings Inc.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS 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, 2019
December 31, 2020
December 31, 2020
December 31, 2019
December 31, 2020
December 31, 2020
RMB
RMB
US$
RMB
RMB
US$
Net loss (income) attributable to
non-controlling interests shareholders
69
(579)
(89)
(3,419)
(731)
(112)
Net income (loss) attributable
to KE Holdings Inc.
(3,121,331)
1,094,977
167,812
(2,183,546)
2,777,592
425,685
Accretion on convertible
redeemable preferred shares to redemption value
(577,842)
-
-
(1,866,528)
(1,755,228)
(269,000)
Income allocation to
participating preferred shares
-
-
-
-
(301,898)
(46,268)
Net income (loss) attributable
to KE Holdings Inc.’s ordinary shareholders
(3,699,173)
1,094,977
167,812
(4,050,074)
720,466
110,417
Net income (loss)
(3,121,400)
1,095,556
167,901
(2,180,127)
2,778,323
425,797
Currency translation
adjustments
(153,149)
(1,302,733)
(199,653)
63,442
(1,897,395)
(290,789)
Total comprehensive income
(loss)
(3,274,549)
(207,177)
(31,752)
(2,116,685)
880,928
135,008
Comprehensive loss (income)
attributable to non-controlling interests shareholders
69
(579)
(89)
(3,419)
(731)
(112)
Comprehensive income (loss)
attributable to KE Holdings Inc.
(3,274,480)
(207,756)
(31,841)
(2,120,104)
880,197
134,896
Accretion on convertible
redeemable preferred shares to redemption value
(577,842)
-
-
(1,866,528)
(1,755,228)
(269,000)
Income allocation to
participating preferred shares
-
-
-
-
(301,898)
(46,268)
Comprehensive loss
attributable to KE Holdings Inc.’s ordinary
shareholders
(3,852,322)
(207,756)
(31,841)
(3,986,632)
(1,176,929)
(180,372)
KE Holdings Inc.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS 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, 2019
December 31, 2020
December 31, 2020
December 31, 2019
December 31, 2020
December 31, 2020
RMB
RMB
US$
RMB
RMB
US$
Weighted average number of ordinary
shares used in computing net income (loss) per share,
basic and diluted
—Basic
1,388,889,436
3,440,878,087
3,440,878,087
1,378,235,522
2,226,264,859
2,226,264,859
—Diluted
1,388,889,436
3,516,042,957
3,516,042,957
1,378,235,522
2,267,330,891
2,267,330,891
Weighted average number of ADS
used in computing net income (loss) per ADS, basic and
diluted
—Basic
462,963,145
1,146,959,362
1,146,959,362
459,411,841
742,088,286
742,088,286
—Diluted
462,963,145
1,172,014,319
1,172,014,319
459,411,841
755,776,964
755,776,964
Net income (loss) per share
attributable to KE Holdings Inc.'s ordinary
shareholders
—Basic
(2.66)
0.32
0.05
(2.94)
0.32
0.05
—Diluted
(2.66)
0.31
0.05
(2.94)
0.32
0.05
Net income (loss) per ADS attributable
to KE Holdings Inc.'s ordinary shareholders
—Basic
(7.99)
0.95
0.15
(8.82)
0.97
0.15
—Diluted
(7.99)
0.93
0.14
(8.82)
0.95
0.15
(1) Includes share-based compensation
expenses as follows:
Cost of revenues
-
76,616
11,742
-
511,637
78,412
Sales and marketing expenses
-
30,212
4,630
-
77,574
11,889
General and administrative expenses
2,846,304
229,643
35,194
2,955,590
1,131,335
173,385
Research and development expenses
-
247,923
37,996
-
532,043
81,539
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, 2019
December 31, 2020
December 31, 2020
December 31, 2019
December 31, 2020
December 31, 2020
RMB
RMB
US$
RMB
RMB
US$
Income (loss) from operations
(3,122,877)
1,266,804
194,147
(1,785,540)
2,841,809
435,526
Share-based compensation expenses
2,846,304
584,394
89,562
2,955,590
2,252,589
345,225
Amortization of intangible assets
resulting from acquisitions and business cooperation agreement
153,386
143,520
21,995
450,413
604,806
92,691
Changes in fair value of financial assets
recognized as deemed marketing expenses
43,157
-
-
317,929
-
-
Impairment of goodwill and intangible
assets
-
236,050
36,176
-
236,050
36,176
Adjusted income (loss) from
operations
(80,030)
2,230,768
341,880
1,938,392
5,935,254
909,618
Net income (loss)
(3,121,400)
1,095,556
167,901
(2,180,127)
2,778,323
425,797
Share-based compensation expenses
2,846,304
584,394
89,562
2,955,590
2,252,589
345,225
Amortization of intangible assets
resulting from acquisitions and business cooperation agreement
153,386
143,520
21,995
450,413
604,806
92,691
Changes in fair value from long term
investments, loan receivables measured at fair value and contingent
consideration
165,514
(84,085)
(12,887)
428,422
(175,115)
(26,838)
Impairment of goodwill and intangible
assets
-
236,050
36,176
-
236,050
36,176
Impairment of investments
-
26,650
4,084
-
26,650
4,084
Tax effects on non-GAAP adjustments
415
(1,274)
(195)
1,705
(3,599)
(552)
Adjusted net income
44,219
2,000,811
306,636
1,656,003
5,719,704
876,583
Net income (loss)
(3,121,400)
1,095,556
167,901
(2,180,127)
2,778,323
425,797
Income tax expense
4,859
716,951
109,878
904,363
1,608,796
246,558
Share-based compensation expenses
2,846,304
584,394
89,562
2,955,590
2,252,589
345,225
Amortization of intangible assets
166,350
145,378
22,280
477,323
621,174
95,199
Depreciation of property and equipment
127,181
180,776
27,705
561,995
552,798
84,720
Interest income, net
(61,961)
(4,674)
(716)
(230,339)
(163,600)
(25,073)
Changes in fair value from long term
investments, loan receivables measured at fair value and contingent
consideration
165,514
(84,085)
(12,887)
428,422
(175,115)
(26,838)
Impairment of goodwill and intangible
assets
-
236,050
36,176
-
236,050
36,176
Impairment of investments
-
26,650
4,084
-
26,650
4,084
Adjusted EBITDA
126,847
2,896,996
443,983
2,917,227
7,737,665
1,185,848
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, 2019
December 31, 2020
December 31, 2020
December 31, 2019
December 31, 2020
December 31, 2020
RMB
RMB
US$
RMB
RMB
US$
Net income (loss) attributable to KE
Holdings Inc.
(3,121,331)
1,094,977
167,812
(2,183,546)
2,777,592
425,685
Share-based compensation expenses
2,846,304
584,394
89,562
2,955,590
2,252,589
345,225
Amortization of intangible assets
resulting from acquisitions and business cooperation agreement
153,386
143,520
21,995
450,413
604,806
92,691
Changes in fair value from long term
investments, loan receivables measured at fair value and contingent
consideration
165,514
(84,085)
(12,887)
428,422
(175,115)
(26,838)
Impairment of goodwill and intangible
assets
-
236,050
36,176
-
236,050
36,176
Impairment of investments
-
26,650
4,084
-
26,650
4,084
Tax effects on non-GAAP adjustments
415
(1,274)
(195)
1,705
(3,599)
(552)
Effects of non-GAAP adjustments on net
income attributable to non-controlling interests shareholders
(884)
(73)
(11)
(1,481)
(1,666)
(255)
Adjusted net income attributable to KE
Holdings Inc.
43,404
2,000,159
306,536
1,651,103
5,717,307
876,216
Accretion on convertible redeemable
preferred shares to redemption value
(577,842)
-
-
(1,866,528)
(1,755,228)
(269,000)
Adjusted net income allocated to
participating preferred shares
-
-
-
-
(1,169,981)
(179,307)
Adjusted net income (loss) attributable
to KE Holdings Inc.’s ordinary shareholders
(534,438)
2,000,159
306,536
(215,425)
2,792,098
427,909
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, 2019
December 31, 2020
December 31, 2020
December 31, 2019
December 31, 2020
December 31, 2020
RMB
RMB
US$
RMB
RMB
US$
Weighted average number of ADS
used in computing net income (loss) per ADS, basic
and diluted
—Basic
462,963,145
1,146,959,362
1,146,959,362
459,411,841
742,088,286
742,088,286
—Diluted
462,963,145
1,172,014,319
1,172,014,319
459,411,841
755,776,964
755,776,964
Weighted average number of ADS used
in calculating adjusted net income (loss) per ADS,
basic and diluted
—Basic
462,963,145
1,146,959,362
1,146,959,362
459,411,841
742,088,286
742,088,286
—Diluted
462,963,145
1,172,014,319
1,172,014,319
459,411,841
755,776,964
755,776,964
Net income (loss) per ADS attributable
to KE Holdings Inc.'s ordinary shareholders
—Basic
(7.99)
0.95
0.15
(8.82)
0.97
0.15
—Diluted
(7.99)
0.93
0.14
(8.82)
0.95
0.15
Non-GAAP adjustments to net income
per ADS attributable to KE Holdings Inc.'s ordinary
shareholders
—Basic
6.84
0.79
0.12
8.35
2.79
0.43
—Diluted
6.84
0.78
0.12
8.35
2.74
0.42
Adjusted net income (loss) per ADS
attributable to KE Holdings Inc.’s ordinary
shareholders
—Basic
(1.15)
1.74
0.27
(0.47)
3.76
0.58
—Diluted
(1.15)
1.71
0.26
(0.47)
3.69
0.57
KE Holdings Inc.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(All amounts in
thousands)
For the three months
ended
For the year ended
December 31, 2019
December 31, 2020
December 31, 2020
December 31, 2019
December 31, 2020
December 31, 2020
RMB
RMB
US$
RMB
RMB
US$
Net cash provided by (used in) operating
activities
(626,908)
1,104,484
169,270
112,626
9,361,949
1,434,781
Net cash used in investing activities
(2,368,198)
(5,607,829)
(859,437)
(3,873,722)
(14,977,618)
(2,295,420)
Net cash provided by financing
activities
19,194,252
9,410,162
1,442,170
23,026,396
25,406,250
3,893,678
Effect of exchange rate change on cash,
cash equivalents and restricted cash
(228,701)
(1,484,742)
(227,547)
(94,922)
(2,183,682)
(334,664)
Net increase in cash and cash equivalents
and restricted cash
15,970,445
3,422,075
524,456
19,170,378
17,606,899
2,698,375
Cash, cash equivalents and restricted cash
at the beginning of the period
15,960,131
46,115,400
7,067,494
12,760,198
31,930,576
4,893,575
Cash, cash equivalents and restricted cash
at the end of the period
31,930,576
49,537,475
7,591,950
31,930,576
49,537,475
7,591,950
KE Holdings Inc.
UNAUDITED CONTRIBUTION
MEASURE
(All amounts in
thousands)
For the three months
ended
For the year ended
December 31, 2019
December 31, 2020
December 31, 2020
December 31, 2019
December 31, 2020
December 31, 2020
RMB
RMB
US$
RMB
RMB
US$
Existing home transaction
services
Net revenues
5,869,149
9,159,677
1,403,782
24,568,508
30,564,584
4,684,227
Less: Commission and compensation
(3,686,676)
(5,223,330)
(800,510)
(15,014,264)
(18,065,451)
(2,768,651)
Contribution
2,182,473
3,936,347
603,272
9,554,244
12,499,133
1,915,576
New home transaction services
Net revenues
8,117,637
12,886,750
1,974,981
20,273,860
37,937,886
5,814,235
Less: Commission and compensation
(6,613,091)
(10,185,864)
(1,561,052)
(15,355,160)
(29,787,961)
(4,565,205)
Contribution
1,504,546
2,700,886
413,929
4,918,700
8,149,925
1,249,030
Emerging and other services
Net revenues
394,756
624,218
95,666
1,172,538
1,978,508
303,220
Less: Commission and compensation
(83,988)
(112,744)
(17,279)
(229,401)
(317,756)
(48,698)
Contribution
310,768
511,474
78,387
943,137
1,660,752
254,522
_________________
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 and emerging and other
services, and including transactions that are contracted but
pending closing at the end of period.
2 Adjusted net income (loss) is a non-GAAP
financial measure, 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 and intangible 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 "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.
4 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,
(ii) amortization of intangible assets resulting from acquisitions
and business cooperation agreement, (iii) changes in fair value of
financial assets recognized as deemed marketing expenses and (iv)
impairment of goodwill and intangible assets. Please refer to the
section titled “Unaudited reconciliation of GAAP and non-GAAP
results” for details.
5 Adjusted operating margin is adjusted
income (loss) from operations as a percentage of net revenues.
6 Adjusted EBITDA is a non-GAAP financial
measure, which is defined as net income (loss), excluding (i)
interest income, net, (ii) income tax expense (benefit), (iii)
depreciation of property and equipment, (iv) amortization of
intangible assets, (v) share-based compensation expenses, (vi)
changes in fair value from long term investments, loan receivables
measured at fair value and contingent consideration, (vii)
impairment of goodwill and intangible assets and (viii) impairment
of investments. Please refer to the section titled “Unaudited
reconciliation of GAAP and non-GAAP results” for details.
7 Adjusted net income (loss) attributable
to KE Holdings Inc. is a non-GAAP financial measure and represents
adjusted income (loss) attributable to KE Holdings Inc’s ordinary
shareholders and preferred shareholders, and all preferred shares
of KE Holdings Inc. had been automatically converted to ordinary
shares upon initial public offering of KE Holdings Inc. on a
one-for-one basis. Adjusted net income (loss) attributable to KE
Holdings Inc. is defined as net income (loss) attributable to KE
Holdings Inc., 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 and
intangible 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.
8 ADS is American Depositary Share. Each
ADS represents three Class A ordinary shares of the Company.
Diluted 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 diluted
ADS.
9 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210315005813/en/
For investor and media inquiries, please contact:
In China: KE Holdings Inc. Investor Relations Matthew Zhao
Siting Li E-mail: ir@ke.com
The Piacente Group, Inc. Ross Warner Tel: +86-10-6508-0677
E-mail: ke@tpg-ir.com
In the United States: The Piacente Group, Inc. Brandi Piacente
Tel: +1-212-481-2050 E-mail: ke@tpg-ir.com
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