On November 21st, real estate trading and service platform Beike Holdings Limited (NYSE: BEKE; 02423. HK) announced its unaudited financial performance for the third quarter of 2024.
Data shows that in the third quarter, Beike's total revenue was 22.6 billion yuan, an increase of 26.8% year-on-year; The gross profit margin is 22.7%; Net profit of 1.168 billion yuan, basically unchanged year-on-year; The adjusted net profit is 1.782 billion yuan.
For the third quarter performance, Beike stated that the real estate transaction service business achieved stable revenue performance, and the monetization ability of the new house business was further enhanced. Beike actively promotes the "One Body, Three Wings" strategy, with a year-on-year increase of 54.3% in revenue from home decoration and home furnishing business, housing rental services, emerging businesses, and others in the third quarter. The proportion of net revenue has further increased to 38.3%, an increase of 6.8 percentage points compared to the same period in 2023.
According to data released by Beike, the net revenue of Beike's existing housing business in the third quarter was 6.2 billion yuan, which is basically the same as the same period in 2023; The net revenue of the new house business was 5.9 billion yuan, an increase of 30.9% year-on-year; The net income of home decoration and furnishings increased by 32.6% year-on-year to 4.2 billion yuan; The net income from emerging businesses and others was 500 million yuan, basically unchanged year-on-year. It is worth mentioning that due to the continuous increase in the scale and importance of housing rental services, Beike has been separately disclosing the financial status of housing rental services since the first quarter of this year. In the third quarter, the net revenue of Beike's housing rental services was 3.9 billion yuan, a year-on-year increase of 118.4%. As of the end of the third quarter, the number of "worry free rental" properties under management exceeded 360000, compared to 160000 in the same period last year.
In terms of total transaction volume, Beike stated that due to the recovery of the existing real estate transaction market and the company's active growth strategy and advanced market coverage ability, the total transaction volume in the third quarter of this year increased by 12.5% from 655.2 billion yuan in the same period of 2023 to 736.8 billion yuan.
However, compared to the transaction volume of 839 billion yuan in the second quarter of this year, the data for the third quarter has declined. Beike mentioned in the announcement that after the intensive introduction of policies in May and the pulse like recovery, the market performance gradually declined in the third quarter, and the stock housing market performed relatively steadily. The new housing market is still in the bottom stage of weak supply and demand. However, a series of policy support measures introduced by the government at the end of September have shown initial results, and the trading volume on the platform rebounded significantly in October, indicating that market recovery is underway.
As of September 30, 2024, Beike had 46857 active stores, an increase of 14.6% compared to the same period last year; The number of active brokers was 423400, an increase of 6.1% compared to the same period last year; The number of monthly active mobile users is 46.2 million, compared to 49.2 million in the same period of 2023.
As of September 30, 2024, Beike's total balance of cash, cash equivalents, restricted funds, and short-term investments was RMB 59.5 billion.
It is worth mentioning that in August 2022, Beike established a share repurchase plan and expanded and extended it in August 2023 and August 2024. As of September 30, 2024, since the launch of the share repurchase plan, Beike has purchased a total of approximately 10.22 million American Depositary Shares (equivalent to approximately 30.65 million Class A common shares) on the New York Stock Exchange for a total consideration of approximately $1.49 billion.
As of the close on November 21st, Beike Hong Kong stocks were trading at HKD 51.95 per share, a decrease of 2.9%; Beike US stocks fell slightly before the market, and as of press time, Beike US stocks fell 8.3% to $18.55.