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,
2021.
Business and Financial Highlights for the Fourth Quarter and
the Fiscal Year 2021
- Gross transaction value (GTV)1 in 2021 was
RMB3,853.5 billion (US$604.7 billion), an increase of 10.1%
year-over-year. GTV of existing home transactions was
RMB2,058.2 billion (US$323.0 billion), an increase of 6.1%
year-over-year. GTV of new home transactions was RMB1,608.6
billion (US$252.4 billion), an increase of 16.3% year-over-year.
GTV of emerging and other services was RMB186.6 billion
(US$29.3 billion), an increase of 6.0% year-over-year. In the
fourth quarter of 2021, GTV was RMB732.4 billion (US$114.9
billion), a decrease of 34.6% year-over-year. GTV of existing
home transactions was RMB354.6 billion (US$55.6 billion), a
decrease of 39.4% year-over-year. GTV of new home
transactions was RMB356.8 billion (US$56.0 billion), a decrease
of 24.0% year-over-year. GTV of emerging and other services
was RMB21.0 billion (US$3.3 billion), a decrease of 68.2%
year-over-year.
- Net revenues in 2021 were RMB80.8 billion (US$12.7
billion), an increase of 14.6% year-over-year. In the fourth
quarter of 2021, net revenues were RMB17.8 billion (US$2.8
billion), a decrease of 21.5% year-over-year.
- Net loss in 2021 was RMB525 million (US$82 million).
Adjusted net income2 in 2021 was RMB2,294 million
(US$360 million). In the fourth quarter of 2021, net loss
was RMB933 million (US$146 million). Adjusted net income was
RMB42 million (US$7 million).
- Number of stores was 51,038 as of December 31, 2021, a
8.7% increase from one year ago. Number of active stores3
was 45,339 as of December 31, 2021, a 4.4% increase from one year
ago.
- Number of agents was 454,504 as of December 31, 2021, a
7.8% decrease from one year ago. Number of active agents4
was 406,794 as of December 31, 2021, a 8.7% decrease from one year
ago.
- Mobile monthly active users (MAU)5 averaged 37.4
million, compared to 48.2 million in the same period of 2020.
Mr. Stanley Yongdong Peng, Chairman of the Board and Chief
Executive Officer of Beike, commented, “Embracing the significant
changes in 2021, we endeavored to look inward for answers and
transform our organization, in response to the higher requirements
put forward to us by consumers’ fast evolving demand, as well as
our country and society in this era. At the end of 2021, we
officially launched Beike’s ‘one body, two wings’ strategic
upgrade. ‘One body’ refers to our core, which is our existing and
new home transaction services business, while ‘two wings’ refers to
our home renovation and furnishing offering, and our inclusive
housing services.”
“Amidst the market-wide adjustments, our total GTV for the
fiscal year of 2021 increased by 10.1% year-over-year to RMB3.85
trillion. Meanwhile, our ACN mechanism that advocated sharing and
collaboration, as well as our cutting-edge SaaS system that enabled
collaboration and professional development, provided agents and
store owners with more stable income during the market downturn,
and fostered strong retention and resilience. During the fourth
quarter in our housing transaction service business, we continued
to invest in industry infrastructure, empower our agents to be more
focused and collaborative, and prioritize new home risk management
while continuously improving sell-through efficiency. Leveraging
our firmly grounded core strengths, we are now aiming higher and
spreading our wings to establish broader capabilities that allow us
to provide more satisfying solutions to consumers and bring changes
to the housing related services industry.”
“We are resolute in our enduring mission and will strive forward
in 2022 to become a one-stop housing related services provider that
makes home a better place, simultaneously creating commercial value
and contributing to the betterment of society.” concluded Mr.
Peng.
Mr. Tao Xu, Executive Director and Chief Financial Officer of
Beike, added, “We achieved topline growth of 14.6% for the full
year 2021, demonstrating our resilience despite the sharp market
downturn in the second half of last year. As the industry began
shifting toward long-term, sustainable growth, we moved quickly in
response to the unfolding changes, effectively turning obstacles
into opportunities through initiatives to optimize operations and
advance our strategies. ‘One body, two wings’ sets the framework
for our initiatives going forward. We will continue to further hone
efficiencies and meet the vast demand for our core, high quality
housing transaction services. Simultaneously, we will move forward
prudently, but dream big, as we commit to further invest in the
immense and expanding industry of ‘better living’, such as our home
renovation and furnishing services, and inclusive housing services.
Certainly, as we forge ahead, the necessary investments for our new
businesses will impact the overall group’s profitability in 2022.
However, we remain confident that our determined efforts to bring
customers a better experience around all fronts of ‘living’ and
help service providers deliver higher quality services will pave
the way for our long-term success and provide a positive catalyst
for the change of housing related industry.”
Fourth Quarter 2021 Financial Results
Net Revenues
Net revenues decreased by 21.5% to RMB17.8 billion
(US$2.8 billion) in the fourth quarter of 2021 from RMB22.7 billion
in the same period of 2020. The decrease was primarily attributable
to the decline in total GTV. Due to the market downturn, total GTV
was RMB732.4 billion (US$114.9 billion) in the fourth quarter of
2021, representing a 34.6% decrease compared to RMB1,120.0 billion
in the same period of 2020.
- Net revenues from existing home transaction services
were RMB6.0 billion (US$0.9 billion) in the fourth quarter of 2021,
compared to RMB9.2 billion in the same period of 2020, primarily
due to a 39.4% decrease in GTV of existing home transactions to
RMB354.6 billion (US$55.6 billion) in the fourth quarter of 2021
from RMB584.7 billion in the same period of 2020. Among that,
(i) the revenues 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,
decreased by 28.3% to RMB0.7 billion (US$0.1 billion) in the fourth
quarter of 2021, from RMB1.0 billion in the same period of 2020,
mainly due to a 43.7% decrease of GTV of existing home transactions
served by connected agents on the Company’s platform to RMB159.7
billion (US$25.1 billion) in the fourth quarter of 2021 from
RMB283.8 billion in the same period of 2020. The lower decline rate
of revenues derived from platform service, franchise service and
other value-added services compared to that of the GTV of existing
home transactions served by connected agents was partially
attributable to the increased penetration level of value-added
services including transaction contracting services and a moderate
increase in existing home transaction commission rate charged by
connected stores; (ii) commission revenue was RMB5.3 billion
(US$0.8 billion) in the fourth quarter of 2021, compared to RMB8.2
billion in the same period of 2020, primarily due to a decrease in
GTV of existing home transactions served by Lianjia stores to
RMB194.9 billion (US$30.6 billion) in the fourth quarter of 2021,
compared to RMB300.9 billion in the same period of 2020.
- Net revenues from new home transaction services
decreased by 12.2% to RMB11.3 billion (US$1.8 billion) in the
fourth quarter of 2021 from RMB12.9 billion in the same period of
2020, primarily due to the decrease of GTV of new home transactions
of 24.0% to RMB356.8 billion (US$56.0 billion) in the fourth
quarter of 2021 from RMB469.2 billion in the same period of 2020.
Among that, the GTV of new home transaction services completed on
Beike platform through connected agents, dedicated sales team with
the expertise on new home transaction services and other sales
channels was RMB296.4 billion (US$46.5 billion), compared to
RMB388.7 billion in the same period of 2020, while the GTV of new
home transactions served by Lianjia brand was RMB60.4 billion
(US$9.5 billion) in the fourth quarter of 2021, compared to RMB80.5
billion in the same period of 2020. The decline was partially
offset by a moderate increase of new home transactions commission
rate.
- Net revenues from emerging and other services decreased
by 21.4% to RMB0.5 billion (US$0.1 billion) in the fourth quarter
of 2021 from RMB0.6 billion in the same period of 2020, primarily
attributable to the decrease of net revenues from financial
services.
Cost of Revenues
Total cost of revenues was RMB14.9 billion (US$2.3
billion) in the fourth quarter of 2021, compared to RMB17.2 billion
in the same period of 2020.
- Commission - split. The Company’s cost of revenues for
commissions to connected agents and other sales channels was RMB7.8
billion (US$1.2 billion) in the fourth quarter of 2021, compared to
RMB8.7 billion in the same period of 2020, primarily due to the
decrease in the GTV of new home transactions completed through
connected agents and other sales channels in the fourth quarter of
2021 compared with the same period of 2020.
- Commission and compensation - internal. The Company’s
cost of revenues for internal commission and compensation was
RMB5.4 billion (US$0.8 billion) in the fourth quarter of 2021,
compared to RMB6.8 billion in the same period of 2020, primarily
due to the decrease in the GTV of exiting home and new home
transactions completed through Lianjia agents.
- Cost related to stores. The Company’s cost related to
stores increased by 9.4% to RMB1.0 billion (US$0.2 billion) in the
fourth quarter of 2021 compared to RMB0.9 billion in the same
period of 2020, mainly due to the incremental rise in rental fees
of contract service centers opened in 2021 and the increase of
depreciation and amortization costs.
- Other costs. The Company’s other costs decreased by
17.6% to RMB0.6 billion (US$0.1 billion) in the fourth quarter of
2021 from RMB0.8 billion in the same period of 2020, mainly due to
a decrease of business taxes and surcharges along with the decrease
of net revenues and the decreased offline activities costs due to
some regional instances of COVID-19 infections and the
corresponding restrictive measures.
Gross Profit
Gross profit was RMB2.9 billion (US$0.5 billion) in the fourth
quarter of 2021, compared to RMB5.4 billion in the same period of
2020. Gross margin was 16.4% in the fourth quarter of 2021,
compared to 23.9% in the same period of 2020. The decrease in gross
margin was mainly due to: 1) a continuing shift of revenue mix
towards new home transaction services with lower contribution
margin; 2) a lower contribution margin of existing home
transactions led by a relatively higher percentage of fixed
compensation costs for Lianjia agents; and 3) a relatively higher
percentage of costs related to store of net revenues in the fourth
quarter of 2021 as a result of the incremental rise in rental fees
of contract service centers opened in 2021 and the increased
depreciation and amortization costs.
Income (Loss) from
Operations
Total operating expenses were RMB4.1 billion (US$0.6
billion) in the fourth quarter of 2021, compared to RMB4.2 billion
in the same period of 2020.
- General and administrative expenses were RMB2,202
million (US$346 million) in the fourth quarter of 2021, compared to
RMB1,884 million in the same period of 2020, mainly due to the
increase of provision for credit losses.
- Sales and marketing expenses were RMB809 million (US$127
million) in the fourth quarter of 2021, compared to RMB1,323
million in the same period of 2020, mainly due to the decrease of
the brand advertising and promotional marketing activities.
- Research and development expenses were RMB738 million
(US$116 million) in the fourth quarter of 2021, compared to RMB714
million in the same period of 2020, mainly due to the increase of
headcount in experienced research and development personnel, which
was partially offset by the decrease of share-based compensation
expenses.
Loss from operations was RMB1,184 million (US$186
million) in the fourth quarter of 2021, compared to income from
operations of RMB1,267 million in the same period of 2020.
Operating margin was negative 6.7% in the fourth quarter of
2021, compared to 5.6% in the same period of 2020, primarily due to
1) a relatively lower gross profit margin in the fourth quarter of
2021 compared to the same period of 2020; and 2) an increase of the
percentage of total operating expenses as of net revenues in the
fourth quarter of 2021, primarily due to decreased net revenues
along with the relatively flat operating expenses in the fourth
quarter of 2021, compared to the same period of 2020.
Adjusted loss from operations6 was RMB398 million (US$62
million) in the fourth quarter of 2021, compared to adjusted income
from operations of RMB2,231 million in the same period of 2020.
Adjusted operating margin7 was negative 2.2% in the fourth
quarter of 2021, compared to 9.8% in the same period of 2020.
Adjusted EBITDA8 was RMB484 million (US$76 million) in the
fourth quarter of 2021, compared to RMB2,897 million in the same
period of 2020.
Net Income (Loss)
Net loss was RMB933 million (US$146 million) in the
fourth quarter of 2021, compared to net income of RMB1,096 million
in the same period of 2020.
Adjusted net income was RMB42 million (US$7 million) in
the fourth quarter of 2021, compared to RMB2,001 million in the
same period of 2020.
Net Income (Loss) attributable to KE
Holdings Inc.’s ordinary shareholders
Net loss attributable to KE Holdings Inc.’s ordinary
shareholders was RMB930 million (US$146 million) in the fourth
quarter of 2021, compared to net income attributable to KE Holdings
Inc.’s ordinary shareholders of RMB1,095 million in the same period
of 2020.
Adjusted net income attributable to KE Holdings Inc.9 was
RMB45 million (US$7 million) in the fourth quarter of 2021,
compared to RMB2,000 million in the same period of 2020.
Net Income (Loss) per
ADS
Diluted net loss per ADS attributable to KE Holdings Inc.’s
ordinary shareholders10 was RMB0.78 (US$0.12) in the fourth
quarter of 2021, compared to diluted net income per ADS
attributable to KE Holdings Inc.’s ordinary shareholders of RMB0.93
in the same period of 2020.
Adjusted diluted net income per ADS attributable to KE
Holdings Inc.’s ordinary shareholders11 was RMB0.04 (US$0.01)
in the fourth quarter of 2021, compared to RMB1.71 in the same
period of 2020.
Cash, Cash Equivalents, Restricted Cash
and Short-Term Investments
As of December 31, 2021, the combined balance of the Company’s
cash, cash equivalents, restricted cash and short-term investments
amounted to RMB56.1 billion (US$8.8 billion).
Fiscal Year 2021 Financial Results
Net Revenues
Net revenues increased by 14.6% to RMB80.8 billion
(US$12.7 billion) in 2021 from RMB70.5 billion in 2020. The
increase was driven by the total GTV growth by 10.1% to RMB3,853.5
billion (US$604.7 billion) in 2021 from RMB3,499.1 billion in
2020.
- Net revenues from existing home transaction services
increased by 4.5% to RMB31.9 billion (US$5.0 billion) in 2021 from
RMB30.6 billion in 2020, primarily attributable to a 6.1% increase
in GTV of existing home transactions to RMB2,058.2 billion
(US$323.0 billion) in 2021 from RMB1,940.0 billion in 2020. The
higher growth rate of GTV of existing home transaction services was
primarily attributable to the shift in GTV mix in existing home
transaction services from GTV served by Lianjia brand, for which
revenue is recorded on a gross commission revenue basis, towards
GTV served by connected agents on the Company’s platform, for which
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 19.3% to RMB3.6 billion
(US$0.6 billion) in 2021 from RMB3.0 billion in 2020, as the GTV of
existing home transactions served by connected agents on the
Company’s platform increased by 10.3% to RMB1,023.4 billion
(US$160.6 billion) in 2021 from RMB928.1 billion in 2020, as well
as a moderate increase in existing home transaction commission rate
charged by connected stores; (ii) commission revenue
increased by 2.9% to RMB28.4 billion (US$4.5 billion) in 2021 from
RMB27.6 billion in 2020, driven by the GTV of existing home
transactions served by the Company’s Lianjia brand increased by
2.3% to RMB1,034.8 billion (US$162.4 billion) in 2021 from
RMB1,011.9 billion in 2020.
- Net revenues from new home transaction services
increased by 22.5% to RMB46.5 billion (US$7.3 billion) in 2021 from
RMB37.9 billion in 2020, primarily attributable to an increase of
16.3% in the GTV of new home transactions to RMB1,608.6 billion
(US$252.4 billion) in 2021 from RMB1,383.0 billion in 2020. Among
that, the GTV of new home transaction services completed on the
Company’s platform through connected agents, dedicated sales team
with the expertise on new home transaction services and other sales
channels increased by 20.6% year-over-year to RMB1,334.6 billion
(US$209.4 billion) from RMB1,106.3 billion in 2020, while the GTV
of new home transactions served by Lianjia brand was RMB274.1
billion (US$43.0 billion), compared to RMB276.7 billion in 2020.
And a moderate increase of new home transactions commission rate
also contributed to the increase of net revenues from new home
transaction services in 2021.
- Net revenues from emerging and other services increased
by 17.9% to RMB2.3 billion (US$0.4 billion) in 2021 from RMB2.0
billion in 2020. The increase was primarily attributable to the
increase of net revenues of home renovation services and rental
property management services.
Cost of Revenues
Total cost of revenues increased by 21.1% to RMB64.9
billion (US$10.2 billion) in 2021 from RMB53.6 billion in 2020,
primarily due to the increase in both split commissions 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 28.1% to RMB31.8 billion (US$5.0 billion) in 2021 from RMB24.8
billion in 2020, primarily due to the increase in the GTV of new
home transactions completed through connected agents and other
sales channels 2021 compared to 2020.
- Commission and compensation - internal. The Company’s
cost of revenues for internal commission and compensation increased
by 12.8% to RMB26.3 billion (US$4.1 billion) in 2021 from RMB23.3
billion in 2020, primarily due to the increase in the GTV of
exiting home transactions completed through Lianjia agents and the
expansion of the dedicated sales team with the expertise on new
home transaction services.
- Cost related to stores. The Company’s cost related to
stores increased by 18.8% to RMB3.8 billion (US$0.6 billion) in
2021 from RMB3.2 billion in 2020, primarily due to an increase in
the average number of stores for Lianjia brand and the incremental
rise in rental fees of contract service centers opened in
2021.
- Other cost. The Company’s other cost increased by 33.3%
to RMB3.0 billion (US$0.5 billion) in 2021 from RMB2.2 billion in
2020, mainly due to the increase of rental property management
services costs, outsourcing professional services costs and
training costs.
Gross Profit
Gross profit decreased by 6.2% to RMB15.8 billion (US$2.5
billion) in 2021 from RMB16.9 billion in 2020. Gross margin was
19.6% in 2021, compared to 23.9% in 2020. The decrease in gross
margin was mainly due to: 1) a continuing shift in revenue mix
towards new home transaction services with lower contribution
margin, 2) a lower contribution margin of existing home
transactions as a result of the higher percentage of the fixed
compensation costs for Lianjia agents and the compensation costs
for transaction support staff, and 3) a lower contribution margin
of new home transactions led by the increased proportion of new
home transactions completed by connected agents and other sales
channels, and incremental rise in fixed compensation costs for
expansion of dedicated sales teams with the expertise on new home
transaction services in 2021.
Income (Loss) from
Operations
Total Operating expenses increased by 22.5% to RMB17.2
billion (US$2.7 billion) in 2021 from RMB14.0 billion in 2020.
- General and administrative expenses were RMB8.9 billion
(US$1.4 billion) in 2021, compared to RMB7.6 billion in 2020,
mainly due to the increase in payroll and overhead expenses as the
business expanded and the increase in provision for credit losses
during the market downturn, which was partially offset by a
decrease in share-based compensation expenses.
- Sales and marketing expenses were RMB4.3 billion (US$0.7
billion) in 2021, compared to RMB3.7 billion in 2020, mainly due to
the increase of the average headcount of business development
personnel.
- Research and development expenses were RMB3.2 billion
(US$0.5 billion) in 2021, compared to RMB2.5 billion in 2020,
mainly due to the increase in the headcount of experienced research
and development personnel as the business expanded.
- Impairment of goodwill, intangible assets and other
long-lived assets was RMB747 million (US$117 million) in 2021,
compared to RMB236 million in 2020, mainly as a result of the
goodwill impairment triggered by the market downturn and its impact
on Company’s operations in the second half year of 2021.
Loss from operations was RMB1.4 billion (US$0.2 billion)
in 2021, compared to income from operations of RMB2.8 billion in
2020. Operating margin was negative 1.7% in 2021, compared
to 4.0% in 2020, primarily due to: 1) a relatively lower gross
profit margin in 2021 compared to 2020; and 2) an increase of the
percentage of total operating expenses as of net revenues in 2021,
primarily due to the increase of staff-related expenses, provision
for credit losses, and impairment of goodwill incurred in 2021
compared to 2020.
Adjusted income from operations was RMB1.4 billion
(US$0.2 billion) in 2021, compared to RMB5.9 billion in 2020.
Adjusted operating margin was 1.7% in 2021, compared to 8.4%
in 2020. Adjusted EBITDA was RMB4.5 billion (US$0.7 billion)
in 2021, compared to RMB7.7 billion in 2020.
Net Income (Loss)
Net loss was RMB525 million (US$82 million) in 2021,
compared to net income of RMB2,778 million in 2020.
Adjusted net income was RMB2,294 million (US$360 million)
in 2021, compared to RMB5,720 million in 2020.
Net Income (Loss) attributable to KE
Holdings Inc.’s Ordinary Shareholders
Net loss attributable to KE Holdings Inc.’s ordinary
shareholders was RMB524 million (US$82 million) in 2021,
compared to net income attributable to KE Holdings Inc.’s ordinary
shareholders of RMB720 million in 2020.
Adjusted net income attributable to KE Holdings Inc. was
RMB2,295 million (US$360 million) in 2021, compared to RMB5,717
million in 2020.
Net Income (Loss) per
ADS
Diluted net loss per ADS attributable to KE Holdings Inc.’s
ordinary shareholders was RMB0.44 (US$0.07) in 2021, compared
to diluted net income per ADS attributable to KE Holdings Inc.’s
ordinary shareholders of RMB0.95 in 2020.
Adjusted diluted net income per ADS attributable to KE
Holdings Inc.’s ordinary shareholders was RMB1.92 (US$0.30) in
2021, compared to RMB3.69 in 2020.
Business Outlook
For the first quarter of 2022, the Company expects total net
revenues to be between RMB11.5 billion (US$1.8 billion) and RMB12.5
billion (US$2.0 billion), representing a decrease of approximately
39.6% to 44.4% from the same quarter of 2021. This forecast
considers the potential impact of the recent real estate related
policies and measures and the Company’s current and preliminary
view on the business situation and market condition, which is
subject to change.
Conference Call Information
The Company will hold a conference call on 8:00 PM U.S. Eastern
Time on Wednesday, March 9, 2022 (9:00 AM Beijing/Hong Kong Time on
Thursday, March 10, 2022) to discuss the financial results. Details
for the conference call are as follows:
Event Title: Beike’s Fourth Quarter and Fiscal Year 2021
Earnings Conference Call Conference ID:5109289
All participants must use the link provided below to complete
the online registration process in advance of the conference call.
Upon registering, each participant will receive a set of
participant dial-in numbers, the Direct Event pass code, and a
unique registrant ID by email.
PRE-REGISTER LINK:
http://apac.directeventreg.com/registration/event/5109289
A live and archived webcast of the conference call will also be
available at the Company’s investor relations website at
http://investors.ke.com/.
The replay will be accessible through March 16, 2022, by dialing
the following numbers:
United States Toll Free:
+1-855-452-5696
Mainland, China:
400-602-2065
Hong Kong, China:
+852-3051-2780
International:
+61-2-8199-0299
Conference ID:
5109289
Exchange Rate
This announcement contains translations of certain RMB amounts
into U.S. dollars (“US$”) 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 RMB6.3726 to
US$1.00, the noon buying rate in effect on December 30, 2021, in
the H.10 statistical release of the Federal Reserve Board. The
Company makes no representation that the RMB or US$ 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, and
(iii) impairment of goodwill, intangible assets and other
long-lived 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,
intangible assets and other long-lived 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,
intangible assets and other long-lived 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) income
tax expense (benefit), (ii) share-based compensation expenses,
(iii) amortization of intangible assets, (iv) depreciation of
property and equipment, (v) interest income, net, (vi) changes in
fair value from long term investments, loan receivables measured at
fair value and contingent consideration, (vii) impairment of
goodwill, intangible assets and other long-lived 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
and furnishing, 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 20 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,
2020
2021
RMB
RMB
US$
ASSETS
Current assets
Cash and cash equivalents
40,969,979
20,446,104
3,208,440
Restricted cash
8,567,496
6,286,105
986,427
Short-term investments
15,688,321
29,402,661
4,613,919
Short-term financing receivables, net of
allowance for credit losses of RMB113,905 and RMB131,558 as of
December 31, 2020 and 2021, respectively
3,931,641
702,452
110,230
Accounts receivable, net of allowance for
credit losses of RMB1,122,218 and RMB2,151,271 as of December 31,
2020 and 2021, respectively
13,183,559
9,324,952
1,463,288
Amounts due from and prepayments to
related parties
484,349
591,342
92,794
Loan receivables from related parties
36,378
42,788
6,714
Prepayments, receivables and other
assets
4,677,378
3,129,950
491,158
Total current assets
87,539,101
69,926,354
10,972,970
Non-current assets
Property and equipment, net
1,472,460
1,971,707
309,404
Right-of-use assets
6,821,100
7,244,211
1,136,775
Long-term financing receivables, net of
allowance for credit losses of RMB13,414 and RMB204 as of December
31, 2020 and 2021, respectively
218,018
10,039
1,575
Long-term investments, net
3,140,315
17,038,171
2,673,661
Intangible assets, net
1,642,651
1,141,273
179,091
Goodwill
2,467,497
1,805,689
283,352
Other non-current assets
994,394
1,181,421
185,392
Total non-current assets
16,756,435
30,392,511
4,769,250
TOTAL ASSETS
104,295,536
100,318,865
15,742,220
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,
2020
2021
RMB
RMB
US$
LIABILITIES
Current liabilities
Accounts payable
6,594,846
6,008,765
942,906
Amounts due to related parties
254,255
584,078
91,655
Employee compensation and welfare
payable
11,231,800
9,834,247
1,543,208
Customer deposits payable
6,743,256
4,181,337
656,143
Income taxes payable
986,465
567,589
89,067
Short-term borrowings
-
260,000
40,800
Lease liabilities current portion
2,625,979
2,752,795
431,974
Short-term funding debts
1,512,510
194,200
30,474
Contract liabilities
734,157
1,101,929
172,917
Accrued expenses and other current
liabilities
2,950,078
3,451,197
541,567
Total current liabilities
33,633,346
28,936,137
4,540,711
Non-current liabilities
Deferred tax liabilities
17,289
22,920
3,597
Lease liabilities non-current portion
3,833,914
4,302,934
675,224
Long-term funding debts
15,000
-
-
Other non-current liabilities
3,471
1,381
217
Total non-current liabilities
3,869,674
4,327,235
679,038
TOTAL LIABILITIES
37,503,020
33,263,372
5,219,749
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,
2020
2021
RMB
RMB
US$
SHAREHOLDERS’ EQUITY
KE Holdings Inc. shareholders’
equity
Ordinary Shares (US$0.00002 par value;
25,000,000,000 ordinary shares authorized, comprising of
23,614,698,720 Class A ordinary shares, 885,301,280 Class B
ordinary shares and 500,000,000 shares each of such classes to be
designated, 2,666,966,855 and 2,705,911,235 Class A ordinary shares
issued and outstanding as of December 31, 2020 and 2021;
885,301,280 Class B ordinary shares issued and outstanding as of
December 31, 2020 and 2021)
482
489
77
Additional paid-in capital
77,433,882
78,972,169
12,392,457
Statutory reserves
392,834
483,887
75,932
Accumulated other comprehensive loss
(1,834,087)
(2,639,723)
(414,230)
Accumulated deficit
(9,227,664)
(9,842,846)
(1,544,557)
Total KE Holdings Inc. shareholders'
equity
66,765,447
66,973,976
10,509,679
Non-controlling interests
27,069
81,517
12,792
TOTAL SHAREHOLDERS' EQUITY
66,792,516
67,055,493
10,522,471
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
104,295,536
100,318,865
15,742,220
KE Holdings Inc.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(All amounts in thousands,
except for share, per share data, ADS and per ADS data)
For the
three months ended
For the year ended
December 31,
2020
December 31,
2021
December 31,
2021
December 31,
2020
December 31,
2021
December 31,
2021
RMB
RMB
US$
RMB
RMB
US$
Net revenues
Existing home transaction services
9,159,677
5,985,303
939,225
30,564,584
31,947,953
5,013,331
New home transaction services
12,886,750
11,309,748
1,774,746
37,937,886
46,472,378
7,292,530
Emerging and other services
624,218
490,670
76,997
1,978,508
2,332,108
365,959
Total net revenues
22,670,645
17,785,721
2,790,968
70,480,978
80,752,439
12,671,820
Cost of revenues
Commission-split
(8,731,868)
(7,799,326)
(1,223,884)
(24,847,023)
(31,826,634)
(4,994,293)
Commission and compensation-internal
(6,790,070)
(5,394,408)
(846,500)
(23,324,145)
(26,306,569)
(4,128,075)
Cost related to stores
(946,262)
(1,035,183)
(162,443)
(3,206,601)
(3,809,757)
(597,834)
Others
(778,225)
(641,542)
(100,672)
(2,243,352)
(2,990,064)
(469,206)
Total cost of revenues(1)
(17,246,425)
(14,870,459)
(2,333,499)
(53,621,121)
(64,933,024)
(10,189,408)
Gross profit
5,424,220
2,915,262
457,469
16,859,857
15,819,415
2,482,412
Operating expenses
Sales and marketing expenses(1)
(1,323,369)
(809,090)
(126,964)
(3,715,278)
(4,309,116)
(676,194)
General and administrative expenses(1)
(1,883,606)
(2,202,486)
(345,618)
(7,588,809)
(8,924,470)
(1,400,444)
Research and development expenses(1)
(714,391)
(738,118)
(115,827)
(2,477,911)
(3,193,988)
(501,206)
Impairment of goodwill, intangible assets
and other long-lived assets
(236,050)
(349,639)
(54,866)
(236,050)
(746,705)
(117,174)
Total operating expenses
(4,157,416)
(4,099,333)
(643,275)
(14,018,048)
(17,174,279)
(2,695,018)
Income (loss) from operations
1,266,804
(1,184,071)
(185,806)
2,841,809
(1,354,864)
(212,606)
Interest income, net
4,674
113,086
17,746
163,600
354,567
55,639
Share of results of equity investees
(42,386)
(8,286)
(1,300)
(37,574)
36,606
5,744
Fair value changes in investments, net
313,156
121,084
19,001
369,124
564,804
88,631
Impairment loss for equity investments
accounted for using Measurement Alternative(2)
(9,000)
(183,789)
(28,841)
(9,000)
(183,789)
(28,841)
Foreign currency exchange gain
4,190
1,332
209
3,506
20,988
3,293
Other income, net
275,069
476,849
74,828
1,055,654
1,702,414
267,146
Income (loss) before income tax
expense
1,812,507
(663,795)
(104,163)
4,387,119
1,140,726
179,006
Income tax expense
(716,951)
(269,469)
(42,286)
(1,608,796)
(1,665,492)
(261,352)
Net income (loss)
1,095,556
(933,264)
(146,449)
2,778,323
(524,766)
(82,346)
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,
2020
December 31,
2021
December 31,
2021
December 31,
2020
December 31,
2021
December 31,
2021
RMB
RMB
US$
RMB
RMB
US$
Net loss (income) attributable to
non-controlling interests shareholders
(579)
3,582
562
(731)
637
100
Net income (loss) attributable to KE
Holdings Inc.
1,094,977
(929,682)
(145,887)
2,777,592
(524,129)
(82,246)
Accretion on convertible redeemable
preferred shares to redemption value
-
-
-
(1,755,228)
-
-
Income allocation to participating
preferred shares
-
-
-
(301,898)
-
-
Net income (loss) attributable to KE
Holdings Inc.’s ordinary shareholders
1,094,977
(929,682)
(145,887)
720,466
(524,129)
(82,246)
Net income (loss)
1,095,556
(933,264)
(146,449)
2,778,323
(524,766)
(82,346)
Currency translation adjustments
(1,302,733)
(561,546)
(88,119)
(1,897,395)
(841,214)
(132,005)
Unrealized gains on available-for-sale
investments, net of reclassification
-
42,864
6,726
-
35,578
5,583
Total comprehensive income
(loss)
(207,177)
(1,451,946)
(227,842)
880,928
(1,330,402)
(208,768)
Comprehensive (income) loss attributable
to non-controlling interests shareholders
(579)
3,582
562
(731)
637
100
Comprehensive income (loss)
attributable to KE Holdings Inc.
(207,756)
(1,448,364)
(227,280)
880,197
(1,329,765)
(208,668)
Accretion on convertible redeemable
preferred shares to redemption value
-
-
-
(1,755,228)
-
-
Income allocation to participating
preferred shares
-
-
-
(301,898)
-
-
Comprehensive loss attributable to KE
Holdings Inc.’s ordinary shareholders
(207,756)
(1,448,364)
(227,280)
(1,176,929)
(1,329,765)
(208,668)
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,
December 31,
December 31,
December 31,
December 31,
December 31,
2020
2021
2021
2020
2021
2021
RMB
RMB
US$
RMB
RMB
US$
Weighted average number of ordinary shares used in
computing net income (loss) per share, basic and diluted —Basic
3,440,878,087
3,559,476,683
3,559,476,683
2,226,264,859
3,549,121,628
3,549,121,628
—Diluted
3,516,042,957
3,559,476,683
3,559,476,683
2,267,330,891
3,549,121,628
3,549,121,628
Weighted average number of ADS used in computing net
income (loss) per ADS, basic and diluted —Basic
1,146,959,362
1,186,492,228
1,186,492,228
742,088,286
1,183,040,543
1,183,040,543
—Diluted
1,172,014,319
1,186,492,228
1,186,492,228
755,776,964
1,183,040,543
1,183,040,543
Net income (loss) per share attributable to KE Holdings
Inc.'s ordinary shareholders —Basic
0.32
(0.26)
(0.04)
0.32
(0.15)
(0.02)
—Diluted
0.31
(0.26)
(0.04)
0.32
(0.15)
(0.02)
Net income (loss) per ADS attributable to KE Holdings
Inc.'s ordinary shareholders —Basic
0.95
(0.78)
(0.12)
0.97
(0.44)
(0.07)
—Diluted
0.93
(0.78)
(0.12)
0.95
(0.44)
(0.07)
(1) Includes share-based compensation expenses as
follows: Cost of revenues
76,616
106,663
16,738
511,637
406,131
63,731
Sales and marketing expenses
30,212
17,804
2,794
77,574
110,446
17,331
General and administrative expenses
229,643
112,491
17,652
1,131,335
595,732
93,483
Research and development expenses
247,923
82,877
13,005
532,043
425,978
66,845
(2) On May 31, 2021, the Company invested in 29.16% of the
equity interests of Shenzhen Yuanjing Mingchuang Management
Consulting Co. (“Yuanjing Mingchuang”) with certain preference
rights with a total cash consideration of RMB700 million. As a
result of the valuation performed in the fourth quarter of 2021,
the Company recorded an impairment charge of RMB168.0 million
(USD26.3 million) in impairment loss for equity investments
accounted for using Measurement Alternative in our consolidated
statement as a result of the adverse changes in the general market
condition of the geographies and industries.
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,
2020
December 31,
2021
December 31,
2021
December 31,
2020
December 31,
2021
December 31,
2021
RMB
RMB
US$
RMB
RMB
US$
Income (loss) from operations
1,266,804
(1,184,071)
(185,806)
2,841,809
(1,354,864)
(212,606)
Share-based compensation expenses
584,394
319,835
50,189
2,252,589
1,538,287
241,390
Amortization of intangible assets
resulting from acquisitions and business cooperation agreement
143,520
116,869
18,339
604,806
470,179
73,781
Impairment of goodwill, intangible assets
and other long-lived assets
236,050
349,639
54,866
236,050
746,705
117,174
Adjusted income (loss) from
operations
2,230,768
(397,728)
(62,412)
5,935,254
1,400,307
219,739
Net income (loss)
1,095,556
(933,264)
(146,449)
2,778,323
(524,766)
(82,346)
Share-based compensation expenses
584,394
319,835
50,189
2,252,589
1,538,287
241,390
Amortization of intangible assets
resulting from acquisitions and business cooperation agreement
143,520
116,869
18,339
604,806
470,179
73,781
Changes in fair value from long term
investments, loan receivables measured at fair value and contingent
consideration
(93,085)
3,084
484
(184,115)
(124,416)
(19,524)
Impairment of goodwill, intangible assets
and other long-lived assets
236,050
349,639
54,866
236,050
746,705
117,174
Impairment of investments
35,650
186,703
29,297
35,650
186,703
29,298
Tax effects on non-GAAP adjustments
(1,274)
(953)
(150)
(3,599)
1,264
198
Adjusted net income
2,000,811
41,913
6,576
5,719,704
2,293,956
359,971
Net income (loss)
1,095,556
(933,264)
(146,449)
2,778,323
(524,766)
(82,346)
Income tax expense
716,951
269,469
42,286
1,608,796
1,665,492
261,352
Share-based compensation expenses
584,394
319,835
50,189
2,252,589
1,538,287
241,390
Amortization of intangible assets
145,378
121,517
19,069
621,174
491,032
77,054
Depreciation of property and equipment
180,776
280,440
44,007
552,798
879,729
138,049
Interest income, net
(4,674)
(113,086)
(17,746)
(163,600)
(354,567)
(55,639)
Changes in fair value from long term
investments, loan receivables measured at fair value and contingent
consideration
(93,085)
3,084
484
(184,115)
(124,416)
(19,524)
Impairment of goodwill, intangible assets
and other long-lived assets
236,050
349,639
54,866
236,050
746,705
117,174
Impairment of investments
35,650
186,703
29,297
35,650
186,703
29,298
Adjusted EBITDA
2,896,996
484,337
76,003
7,737,665
4,504,199
706,808
Net income (loss) attributable to KE
Holdings Inc.
1,094,977
(929,682)
(145,887)
2,777,592
(524,129)
(82,246)
Share-based compensation expenses
584,394
319,835
50,189
2,252,589
1,538,287
241,390
Amortization of intangible assets
resulting from acquisitions and business cooperation agreement
143,520
116,869
18,339
604,806
470,179
73,781
Changes in fair value from long term
investments, loan receivable measured at fair value and contingent
consideration
(93,085)
3,084
484
(184,115)
(124,416)
(19,524)
Impairment of goodwill, intangible assets
and other long-lived assets
236,050
349,639
54,866
236,050
746,705
117,174
Impairment of investments
35,650
186,703
29,297
35,650
186,703
29,298
Tax effects on non-GAAP adjustments
(1,274)
(953)
(150)
(3,599)
1,264
198
Effects of non-GAAP adjustments on net
income attributable to non-controlling interests shareholders
(73)
(7)
(1)
(1,666)
(28)
(4)
Adjusted net income attributable to KE
Holdings Inc.
2,000,159
45,488
7,137
5,717,307
2,294,565
360,067
Accretion on convertible redeemable
preferred shares to redemption value
-
-
-
(1,755,228)
-
-
Adjusted net income allocated to
participating preferred shares
-
-
-
(1,169,981)
-
-
Adjusted net income attributable to KE
Holdings Inc.’s ordinary shareholders
2,000,159
45,488
7,137
2,792,098
2,294,565
360,067
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,
2020
December 31,
2021
December 31,
2021
December 31,
2020
December 31,
2021
December 31,
2021
RMB
RMB
US$
RMB
RMB
US$
Weighted average number of ADS used in
computing net income (loss) per ADS, basic and diluted
—Basic
1,146,959,362
1,186,492,228
1,186,492,228
742,088,286
1,183,040,543
1,183,040,543
—Diluted
1,172,014,319
1,186,492,228
1,186,492,228
755,776,964
1,183,040,543
1,183,040,543
Weighted average number of ADS used in
calculating adjusted net income per ADS, basic and diluted
—Basic
1,146,959,362
1,186,492,228
1,186,492,228
742,088,286
1,183,040,543
1,183,040,543
—Diluted
1,172,014,319
1,188,942,618
1,188,942,618
755,776,964
1,196,789,976
1,196,789,976
Net income (loss) per ADS attributable
to KE Holdings Inc.'s ordinary shareholders
—Basic
0.95
(0.78)
(0.12)
0.97
(0.44)
(0.07)
—Diluted
0.93
(0.78)
(0.12)
0.95
(0.44)
(0.07)
Non-GAAP adjustments to net income per
ADS attributable to KE Holdings Inc.'s ordinary
shareholders
—Basic
0.79
0.82
0.13
2.79
2.38
0.37
—Diluted
0.78
0.82
0.13
2.74
2.36
0.37
Adjusted net income (loss) per ADS
attributable to KE Holdings Inc.’s ordinary shareholders
—Basic
1.74
0.04
0.01
3.76
1.94
0.30
—Diluted
1.71
0.04
0.01
3.69
1.92
0.30
KE Holdings Inc.
UNAUDITED INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(All amounts in
thousands)
For the three months
ended
For the year ended
December 31,
2020
December 31,
2021
December 31,
2021
December 31,
2020
December 31,
2021
December 31,
2021
RMB
RMB
US$
RMB
RMB
US$
Net cash provided by operating
activities
1,104,484
1,279,185
200,731
9,361,949
3,595,122
564,153
Net cash used in investing activities
(5,607,829)
(3,522,717)
(552,790)
(14,977,618)
(24,884,074)
(3,904,854)
Net cash provided by (used in) financing
activities
9,410,162
(202,800)
(31,824)
25,406,250
(1,074,173)
(168,561)
Effect of exchange rate change on cash,
cash equivalents and restricted cash
(1,484,742)
(221,751)
(34,797)
(2,183,682)
(442,141)
(69,382)
Net increase (decrease) in cash and cash
equivalents and restricted cash
3,422,075
(2,668,083)
(418,680)
17,606,899
(22,805,266)
(3,578,644)
Cash, cash equivalents and restricted cash
at the beginning of the period/year
46,115,400
29,400,292
4,613,547
31,930,576
49,537,475
7,773,511
Cash, cash equivalents and restricted cash
at the end of the period/year
49,537,475
26,732,209
4,194,867
49,537,475
26,732,209
4,194,867
KE Holdings Inc.
UNAUDITED SEGMENT CONTRIBUTION
MEASURE
(All amounts in
thousands)
For the three months
ended
For the year ended
December 31,
2020
December 31,
2021
December 31,
2021
December 31,
2020
December 31,
2021
December 31,
2021
RMB
RMB
US$
RMB
RMB
US$
Existing home transaction
services
Net revenues
9,159,677
5,985,303
939,225
30,564,584
31,947,953
5,013,331
Less: Commission and compensation
(5,223,330)
(3,965,516)
(622,276)
(18,065,451)
(20,123,501)
(3,157,816)
Contribution
3,936,347
2,019,787
316,949
12,499,133
11,824,452
1,855,515
New home transaction services
Net revenues
12,886,750
11,309,748
1,774,746
37,937,886
46,472,378
7,292,530
Less: Commission and compensation
(10,185,864)
(9,100,919)
(1,428,133)
(29,787,961)
(37,525,240)
(5,888,529)
Contribution
2,700,886
2,208,829
346,613
8,149,925
8,947,138
1,404,001
Emerging and other services
Net revenues
624,218
490,670
76,997
1,978,508
2,332,108
365,959
Less: Commission and compensation
(112,744)
(127,299)
(19,975)
(317,756)
(484,462)
(76,023)
Contribution
511,474
363,371
57,022
1,660,752
1,847,646
289,936
____________________ 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. 2Adjusted net income (loss)
is a non-GAAP financial measure, which 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, intangible
assets and other long-lived 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. 3Based on our accumulated
operational experience, we have introduced the number of active
agents and active stores on our platform which can better reflect
the operational activeness of stores and agents on our platform.
“Active stores” as of a given date is defined as stores on our
platform excluding the stores which (i) have not facilitated any
housing transaction during the preceding 60 days, (ii) do not have
any agent who has engaged in any critical steps in housing
transactions (including but not limited to introducing new
properties, attracting new customers and conducting property
showings) during the preceding seven days, or (iii) have not been
visited by any agent during the preceding 14 days. Number of active
stores was 43,436 as of December 31, 2020. 4 “Active agents” as of
a given date is defined as agents on our platform excluding the
agents who (i) delivered notice to leave but have not yet completed
the exit procedures, (ii) have not engaged in any critical steps in
housing transactions (including but not limited to introducing new
properties, attracting new customers and conducting property
showings) during the preceding 30 days, or (iii) have not
participated in facilitating any housing transaction during the
preceding three months. Number of active agents was 445,438 as of
December 31, 2020. 5 “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. 6 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 and (iii) impairment of
goodwill, intangible assets and other long-lived assets. Please
refer to the section titled “Unaudited reconciliation of GAAP and
non-GAAP results” for details. 7 Adjusted operating margin is
adjusted income (loss) from operations as a percentage of net
revenues. 8 Adjusted EBITDA is a non-GAAP financial measure, which
is defined as net income (loss), excluding: (i) income tax expense
(benefit), (ii) share-based compensation expenses, (iii)
amortization of intangible assets, (iv) depreciation of property
and equipment, (v) interest income, net, (vi) changes in fair value
from long term investments, loan receivables measured at fair value
and contingent consideration, (vii) impairment of goodwill,
intangible assets and other long-lived assets, and (viii)
impairment of investments. Please refer to the section titled
“Unaudited reconciliation of GAAP and non-GAAP results” for
details. 9 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, intangible assets and
other long-lived 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. 10 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. 11
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/20220309005543/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. Yang Song 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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