Ke Holdings' Q2 net revenue increased by 19.9% YoY, with net income reaching 1.9 billion yuan. The company plans to increase its buyback authorization from 2 billion US dollars to 3 billion US dollars and extend its buyback plan until August 31, 2025.
Thanks to the strong expansion of the second-hand housing transaction, house rental, and home furnishing businesses, Ke Holdings achieved double profit growth in the second quarter of 2024.
On Monday, August 12th, pre-market trading in the US stock market, property trading and service platform Ke Holdings released its financial report for the second quarter of 2024.
1) Main financial data
Revenue: Q2 net revenue of 23.4 billion yuan, an increase of 19.9% year-on-year, and total transaction volume increased by 7.5% to 839 billion yuan from 780.6 billion yuan.
Profit: Q2 net income was 1.9 billion yuan, a year-on-year increase of 46.2%.
Gross margin: Q2 gross profit was 6.5 billion yuan, a year-on-year increase of 22%, and gross margin was 27.9%, up 0.5 percentage points year-on-year.
Operating costs: Q2 total operating costs were RMB 16.9 billion yuan, up 19.2% year-on-year.
2) Business revenue data
Second-hand housing: Q2 net revenue increased by 14.3% from the same period last year to 7.3 billion yuan, and transaction volume increased by 25% from 456.5 billion yuan in the same period last year to 570.7 billion yuan.
New housing: Q2 net revenue decreased by 8.8% from the same period last year to 7.9 billion yuan, and transaction volume decreased by 20.2% from 295 billion yuan in the same period last year to 235.3 billion yuan.
Home furnishing: Q2 net revenue increased significantly by 53.9% to 4 billion yuan, and transaction volume decreased by 20.2% from 295 billion yuan in the same period last year to 235.3 billion yuan.
House rental: Q2 net revenue surged 167.1% from 1.2 billion yuan to 3.2 billion yuan.
New business and others: Q2 net revenue was 0.9 billion yuan, a growth compared to 0.6 billion yuan last year.
2) Shareholder return
Share buyback: As of the date of the second quarter financial report announcement, Ke Holdings has spent 0.48 billion US dollars to repurchase shares, accounting for approximately 2.75% of the total issued shares at the end of 2023. The company plans to increase the repurchase authorization from 2 billion US dollars to 3 billion US dollars, and extend the repurchase plan until August 31, 2025.
Strong second-hand housing transaction, new housing transaction declined, rental revenue surged 160%
According to the financial report, Ke Holdings' total transaction volume in the second quarter was 839 billion yuan, a year-on-year increase of 7.5%. The report explained that due to the national policy support in the second quarter of this year, the second-hand housing transaction market has significantly recovered, although some of the gains have been offset by the sluggish new housing transaction market.
In the second quarter, Ke Holdings' total transaction volume of second-hand housing increased by 25% year-on-year to RMB 570.7 billion, and the total transaction volume of new housing decreased by 20.2% year-on-year to RMB 235.3 billion.
Net revenue of new housing decreased from 8.7 billion yuan to 7.9 billion yuan, down 8.8%, but it is still the main source of revenue. Driven by strong trading volume, net revenue of second-hand housing business increased by 14.3% to 7.3 billion yuan, and commission income also increased by 17.1% to 6 billion yuan.
The revenue of home furnishing business increased significantly by 53.9%. The report stated that it mainly benefited from the synergistic effects of customer acquisition and conversion between property trading and home furnishing, the contribution of new retail, and the shortening of delivery cycles brought about by the improvement of delivery capabilities.
In addition, thanks to the increase in rental housing sources under the worry-free leasing model, Ke Holdings' rental housing business revenue increased by 167% from the previous value to 3.2 billion yuan.
In the second quarter, ke holdings' overall gross margin was 27.9%, a slight increase of 0.5 percentage points from last year's 27.4%. The ke management team stated that this is mainly due to the improvement of supply chain capabilities, continuous fine management and operation efficiency improvement, and reduction of store costs as a percentage of net income.
After the financial report was released, the stock price of ke holdings rose by nearly 6% in pre-market trading, and now the increase has narrowed to 5%.
Editor/Lambor
