KE Holdings Q4 2024 and Full Year Results: Rentals Drive 54% Revenue Increase in Q4

KE Holdings, also known as Beike, has released its final quarter and full-year results for 2024, with rental income up significantly, while chairman Stanley Yongdong Peng is set to depart imminently.

Q4 highlights include:

• Net revenues increased to RMB31.1 billion (US$4.3 billion), up 54.1% compared to Q4 2023.
• Net income was RMB577 million (US$79 million) compared to RMB670 million in the same period of 2023.
• Net revenues from existing home transaction services were RMB8.9 billion (US$1.2 billion), up 47.5%.
• Net revenues from new home transaction services were RMB13.1 billion (US$1.8 billion), up 72.7%.
• Net revenues from home renovation and furnishing were RMB4.1 billion (US$0.6 billion), up 12.8%.
• Net revenues from home rental services were RMB4.6 billion (US$0.6 billion), up 108%.
• Net revenues from emerging and other services dipped slightly to RMB0.4 billion (US$0.1 billion), down from RMB0.7 billion.

Full-year highlights include:

• Net revenues were RMB93.5 billion (US$12.8 billion), up 20.2% from 2023.
• Net income fell to RMB4,078 million (US$559 million), from RMB5,890 million in 2023.
• Net revenues from existing home transaction services were flat at RMB28.2 billion (US$3.9 billion).
• Net revenues from new home transaction services increased were RMB33.7 billion (US$4.6 billion), up 10.1%.
• Net revenues from home renovation and furnishing increased were RMB14.8 billion (US$2.0 billion), up 36.1%.
• Net revenues from home rental services were RMB14.3 billion (US$2.0 billion), up 135.0%.
• Net revenues from emerging and other services were RMB2.5 billion (US$0.3 billion), up 8.8%.

The overall picture for KE Holdings is one of significant growth in 2024, with double-digit year-on-year growth across several key metrics.

Quarterly revenues are the highest they have been post-pandemic, while full-year revenues performed similarly. Full-year revenue growth slowed slightly but the business will be happy to see comfortable double-digit growth year-on-year; 20% revenue growth led to an historic high for the company.

KE Holdings' net income was hit slightly this year, but the business will point to a booming rental segment as a big win—net revenues for the segment more than doubled in size for the year and the quarter alike.

The company is also increasing its footprint nationwide. The number of active stores increased 18% to just under 50,000, while the number of active agents grew a healthy 12% as the Chinese market continued to accelerate post-pandemic.

The company announced aggregate dividends of $55 million for the year.

Mr Stanley Yongdong Peng, Chairman of the Board and Chief Executive Officer of Beike, said:

"China's real estate industry is accelerating towards an advanced stage, with customer demand shifting towards reducing decision-making risks and pursuing higher living quality.

"Under the strategy of active growth and ecosystem optimization, we achieved significant growth in several key metrics in 2024. Looking ahead, we remain committed to our strategic direction of becoming ‘more technology-driven and more human-centric.’ AI-powered technology will enable deeper insights into personalized customer needs and redefine the boundaries of service providers’ capabilities, while a human-centered approach will highlight the value of service. We believe that the integration of technology and human touch will drive a step-change in consumer experience and service efficiency, unlocking new possibilities for the residential services industry."

The Chairman's comments may be his last, with the Chinese publication Guandian reporting that Yongdong Peng was replaced by Zuo Donhua in March 2025 after Yongdong Peng resigned from several positions under the KE Holdings umbrella.

KE Holdings recently withdrew from an acquisition deal to fully buy out the home renovations firm Space Wisdom Decoration worth circa USD 220 million. The company instead chose to retain its original 2% stake in the company amid uncertainties that the business could perform sufficiently well to hit targets.

Meanwhile, CFO Mr Tao Xu announced:

"Net revenues from non-housing transaction services grew by 64.2% year-over-year, accounting for 33.8% of total net revenues, serving as a new growth engine. Our earnings quality improved as well. Net operating cash inflow in 2024 was RMB9.45 billion, 1.3 times our adjusted net income for the year."

KE Holdings won a $95 million bidding war in January for a plot of land ready for a property development. The company has spent more than $340 million on plots of land since June 2024 and will theoretically own the houses it sells on its portal once projects are complete.