On March 14th, Beike released its financial results for the fourth quarter and full year of 2023.
The financial report shows that in 2023, the total trading volume (GTV) of shells was 3.14 trillion yuan (RMB, the same below), an increase of 20.4% year-on-year. The total transaction volume of existing housing accounts for about two-thirds, reaching 2.028 trillion yuan; The total transaction volume of new houses is 1.003 trillion yuan. In 2023, the transaction volume of existing shell houses increased by 28.6% year-on-year, and new houses increased by 6.7% year-on-year.
Beike explored and launched its home decoration business in 2019, with a year-on-year increase of 145.8% and a total transaction volume of 13.3 billion yuan in 2023; The transaction volume of emerging businesses and other businesses was 98.6 billion, an increase of 12.9% year-on-year.
In 2023, the net income of Beike was 77.8 billion yuan, a year-on-year increase of 28.2%; The net profit reached 5.89 billion yuan, with an adjusted net profit of 9.798 billion yuan. In the fourth quarter of 2023, Beike achieved a GTV of 735.6 billion yuan, a year-on-year increase of 13.7%; The net income was 20.2 billion yuan, a year-on-year increase of 20.6%, with a net profit of 670 million yuan and an adjusted net profit of 1.714 billion yuan.
According to data from the Ministry of Housing and Urban Rural Development, the proportion of second-hand housing transactions in China in 2023 is close to 40%, and the market is accelerating its transition to second-hand housing. Just yesterday, Hangzhou also announced the comprehensive lifting of purchase restrictions on second-hand houses.
From the perspective of Beike's business, in 2023, the GTV of Beike's existing housing business increased by 28.6% year-on-year, and net income increased by 15.9% year-on-year to 28 billion yuan, contributing a profit margin increase of 7.3 percentage points year-on-year to 47.2%. It is reported that behind this is Beike's ability to focus on "good houses" in the housing market, develop professional sales plans for homeowners, deepen customer demand analysis and understanding in the customer market, and match customer preferences through digital tools such as AI intelligent house selection. At the same time, we will promote the cooperation of new brokerage brands to fulfill their "reassuring service commitments" and provide consumers with "real gold and silver" compensation as a bottom line.
In the new housing market, Beike has established an online live streaming platform and launched the "Youxian Sell" model in multiple locations to support models such as "trade in old for new". It is worth noting that in terms of new housing business, in the fourth quarter of 2023, the proportion of commission income from state-owned enterprise developers increased from 46% in the third quarter to 53% in the fourth quarter.
In terms of home decoration business, in 2023, the contract amount of Beike Home Decoration Home Furnishing Business was 13.3 billion yuan, a comparable increase of 93% year-on-year; Net income achieved a comparable increase of 74% year-on-year, reaching 10.9 billion yuan, and 11 cities achieved positive operating profits throughout the year. Among them, the home decoration and home furnishing business contracts in Beijing and Hangzhou exceeded 2 billion yuan, while in Shanghai, the total contract amount exceeded 1 billion yuan. There are a total of 6 cities with contract amounts exceeding 500 million yuan.
Faced with industry market adjustments, shell activity stores are still increasing. As of the end of 2023, there were 42000 active stores in Beike, a year-on-year increase of 12.2%. There were 397100 active brokers, a year-on-year increase of 13.6%.
Peng Yongdong, co-founder, chairman, and CEO of Beike, stated that in 2023, in the face of external changes, Beike has made a series of strategic and operational adjustments to actively embrace the promising residential market and become a technology driven one-stop new residential service platform. In the future, Beike needs new solutions, seeking innovative solutions including technological and model upgrades, and making long-term choices around quality and efficiency.