Tencent-backed Real Estate Broker Beike Posts 43% Net Revenue Decrease in 2021

Real Estate Author: Yiru Qian Aug 25, 2022 02:22 PM (GMT+8)

Mr. Stanley Yongdong Peng, Chairman of the Board and CEO of Beike commented that the company was "well positioned" to take the fast ride and achieve rapid growth in the long run.

Beike

The domestic real estate brokerage brand KE Holdings Inc. or Beike’s (BEKE:NYSE) reported net revenues of CNY 13.8 billion (USD 2.1 billion) in the second quarter ended June 30, 2022, down 43.0% year-over-year.

Specifically, net revenues from existing home transaction services decreased by 42.5% to CNY 5.5 billion in the second quarter of 2022, and the figure for new home transaction services decreased by 52.0% to CNY 6.7 billion, compared with the same period of 2021.

The platform for housing transactions and services weathered industry headwinds, which led to a huge dip in total GTV by 47.6% year-over-year to CNY 639.5 billion in the second quarter of 2022.

The gross profit halved to CNY 2.7 billion in the second quarter of 2022, compared with the same period of 2021. Gross margin also declined from 22.1% to 19.7% in the second quarter of 2022, which was mainly due to a relatively higher percentage of cost related to stores of net revenues.

At the end of Q2, Beike owned 42,831 stores, down 19.0% YoY. The mobile monthly active users (MAU) averaged 43.0 million for the three months ended June 30, 2022, compared to 52.1 million in the same period of 2021.

As of press time, Beike’s stock price closed at USD 17.35, with a market cap of USD 170.73 billion.

Similar real estate brokerage companies include Zillow (ZG:NASDAQ), Redfin (RDFN:NASDAQ), 58.com (WUBA:NYSE), Fangdd (DUO:NASDAQ) and Leju (LEJU:NYSE).