On November 8th, the residential industry digital service platform Shell (NYSE: BEKE; HKEX: 2423) released its financial results for the third quarter of 2023, with a total transaction volume (GTV) of 655.2 billion yuan in the third quarter; The net income was 17.8 billion yuan, a year-on-year increase of 1.2%; The net profit reached 1.17 billion yuan, a year-on-year increase of 63.4%.
Co founder and chairman of Shell CEO Peng Yongdong said, "People have returned from the era of focusing on 'buying a house' to the focus on 'living' itself. We also need to evolve from focusing on 'trading' to 'how to make everyone live better', which is a blue ocean. Therefore, we have upgraded our corporate strategy to 'one body, three wings', which is an important step towards becoming a one-stop new living service platform
Executive Director of Shell Chief Financial Officer Xu Tao said, "With the active promotion of our 'One Body, Three Wings' business growth strategy, we achieved stable performance in the third quarter and further highlighted profitability resilience. Looking ahead, we will also maintain prudence in financial management, continue to improve capital allocation efficiency, prioritize investment in areas that can bring key business outputs and value, and also share the dividends of development with shareholders
The revenue from the stock housing business in the third quarter exceeded expectations, reaching 6.3 billion yuan, demonstrating the excellent profitability of Shell under the streamlined cost structure.
In the third quarter, the GTV of shell new houses was 192.1 billion yuan, with a year-on-year increase of 13% in the first three quarters of the new house.
Shell focuses on providing one-stop new residential service quality, and the growth of new businesses is further evident. Shell home decoration and home furnishing business maintains rapid growth. In the third quarter, the contract value of home decoration and home furnishing business reached 3.3 billion yuan, a year-on-year increase of 65.6%. With the accelerated pace of completion delivery and revenue recognition, the net revenue of the business has achieved a year-on-year increase of 72.1%, reaching 3.2 billion yuan, which is also a 21% increase compared to the previous period.
In terms of rental business, as of the end of the third quarter, the number of "worry free rental" properties under management in the shell rental business increased from 50000 units in the same period last year to 160000 units, with an occupancy rate of 95.9%.
Due to the growth in the scale of rental housing management and operation business, the net income of Shell Emerging Business and other businesses increased by 202.7% year-on-year to 2.4 billion yuan during the reporting period. Overall, the revenue from non real estate transaction services in the third quarter increased by 112% year-on-year, further increasing to over 30%, compared to 15% in the same period last year.
Based on solid cash reserves and robust financial management, Shell transmits the company's investment value through active stock repurchases and dividends. Since the launch of the repurchase project in September 2022, the cumulative number of shares repurchased by Shell has accounted for approximately 3.91% of the total issued share capital of the company before the launch of the repurchase project in 2022. Meanwhile, Shell has recently completed a special dividend of approximately $200 million.