Chinese portal giant KE Holdings, which operates Beike, has released its Q2 financial results for 2023, including a special cash dividend. Gross Transaction Value (GTV) hit RMB780 billion ($107Bn) for the quarter as the Chinese economy recovers from the pandemic.
Stanley Yongdong Peng, Chairman of the Board and CEO at Beike, said:
"With the recovery of China’s real estate and residential markets, in the first half of 2023, our operational and financial results have meaningful improvement compared to the same period of last year. Our results were also boosted by our focus on retaining service providers during the market correction, effective cost reductions and our ability to raise efficiencies companywide.
"At the same time, we rapidly expanded our emerging businesses, achieving breakthroughs in quality, scale and economic performance in our home renovation and furnishing services, as well as robust development and efficiency gains in our rental services. The combination of these initiatives placed us in a strong position to seize the expanding opportunity during market recovery and facilitated our ability to, once again, outperform the market.
"In a response to evolving consumer needs, in July, we upgraded our corporate strategy to ‘One Body, Three Wings,’ adding Beihaojia as a third wing to facilitate supply-side upgrades for new homes.
"We are now covering a broader spectrum of residential industry that spans the areas of a house itself, housing transactions, rental properties, and home renovation and furnishing."
KE Holding's secondary business segments were particularly strong, with the home renovations and furnishings arm of the business more than doubling its revenues—$362M for the quarter—year-over-year, with the Emerging and Other Services segment—$241M—tripling its revenues in the same period.
Meanwhile, new home transactions pulled ahead of existing home transactions by approximately $300M for the quarter.
Beike's renovations business contributed $200M to its full-year figures for 2022, with revenues of nearly $700M:
Q3 expectations aren't quite as optimistic, however, with the company predicting a net revenue decrease of between 9-12% compared to Q3 2022.
Nevertheless, a special cash dividend of $0.057 per share has been approved by the board at an overall cost of approximately $200M, from KE Holding's cash surplus.
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