On August 12th, the one-stop new residential service platform Beike (NYSE: BEKE; HKEX: 2423) released its financial results for the second quarter of 2024. Shell achieved a total transaction volume (GTV) of 839 billion yuan (RMB), with a net income of 23.4 billion yuan, a year-on-year increase of 19.9%, a gross profit margin of 27.9%, a net profit of 1.9 billion yuan, a year-on-year increase of 46.2%, and an adjusted net profit of 2.69 billion yuan, a year-on-year increase of 13.9%.
Peng Yongdong, co-founder, chairman, and CEO of Beike, said, "In the second quarter of this year, a series of measures to deepen operations and scientific management supported us to achieve high-quality business results that significantly exceeded market performance. Our real estate transaction service business still has a lot of room for growth, and the business model and capabilities of home decoration and rental services have also been verified. Next, we will achieve sustained organizational growth by promoting a positive cycle of scale, quality, and efficiency
With a stable cash reserve, we continue to promote shareholder returns and share the long-term value created by the company with our fellow shareholders, "said Xu Tao, Executive Director and Chief Financial Officer of Beike
At the same time, Beike announced the expansion and extension of its existing share repurchase program, increasing the repurchase authorization from $2 billion to $3 billion and extending the repurchase program period until August 31, 2025.
Against the backdrop of gradually recovering market sentiment, Beike actively optimized its human store model, strengthened its empowerment of service providers and store owners, and achieved outstanding performance in its existing housing business. In the second quarter of this year, the GTV of Beike's existing housing business reached 570.7 billion yuan, a year-on-year increase of 25%, with a net income of 7.3 billion yuan, a year-on-year increase of 14.3%. The profit margin contributed by existing housing was 47.5%, an increase of 1.9 percentage points year-on-year. At the store operation level, Beike continues to invest in store growth and efficiency improvement. As of the end of the second quarter, the total number of active stores on Beike platform was 44423, a year-on-year increase of 8.1%, and the total number of active brokers was 411478, which was relatively unchanged from the same period last year. For new online stores, Beike provides corresponding brand support such as fee discounts or installment payments, and helps new stores climb the slope faster and improve efficiency through customized Beike integration plans, effectively stimulating the potential of new linked stores. In the first half of the year, the retention rate of newly added stores for 6 months reached 93%.
In terms of new houses, thanks to the increase in channel penetration rate, the deepening of strategic cooperation with developers, and the continuous improvement of systematic operation and sales capabilities, the GTV of Beike's new house business reached 235.3 billion yuan in the second quarter of this year. In June, the signed transaction amount of new houses achieved a year-on-year increase of 12%, higher than the industry performance; Net income was 7.9 billion yuan, a year-on-year decrease of only 8.8%. In terms of expanding cooperation in new housing channels, Beike continues to deepen its strategic cooperation with core state-owned enterprises and high-quality leading real estate companies, and improve its coverage of high-quality sources.
With the market validation of Beike's home decoration and rental business capabilities and models, the "One Body Three Wings" strategy has shown strong vitality and foresight.
During the reporting period, the revenue from non real estate transaction services increased by 85.3% year-on-year, accounting for approximately 35%, a significant increase of 12.2 percentage points compared to the same period last year. The "one-stop" service capability of Beike is transforming into a "one-stop" experience for consumers. In the second quarter, the home decoration and home furnishing business saw steady growth and significant improvement in delivery efficiency, achieving a contract amount of 4.2 billion yuan, a year-on-year increase of 22.3%, a net income of 4 billion yuan, a year-on-year increase of 53.9%, and a profit margin of 31.3% contributed by the home decoration and home furnishing business; The new retail contract amount, including customized furniture, soft furnishings, etc., is 1.22 billion yuan.
At the same time, in the second quarter, thanks to the rapid increase in the number of managed properties, Beike's housing rental service business continued to grow rapidly, achieving a net income of 3.2 billion yuan, a year-on-year increase of 167.1%. As of the end of the second quarter, the number of units under management of Beike Xingxin Rental exceeded 300000, and the number of units under management of centralized long-term rental apartments exceeded 14000. With multiple pre accounting costs, Beijing achieved a single city break even in the first half of the year, bringing valuable confidence to business development.
In the future of the company, Beike will continue to focus on quality and efficiency under the guidance of the "One Body, Three Wings" strategy, strengthen core capacity building, promote continuous optimization of the platform ecosystem, and move towards a new stage of quality living services. We will continue to explore on the road of beautiful living, and bring the vision of consumers living in peace and service providers working happily into reality.