KE (BEKE) Q4 2024 earnings summary

Executive summary

• Achieved record revenue of RMB 93.5 billion in 2024, up 20.2% year over year, with strong growth in existing home transactions, home renovation, and rental services.

• Platform scale expanded to nearly 49,700 stores and 445,000 agents, serving 8.6 million customers in 2024.

• Strategic focus on digitalization, AI integration, and ecosystem collaboration to drive efficiency and service quality.

• Net income for 2024 was RMB 4,078 million, down 30.8% year over year; adjusted net income was RMB 7,211 million, down 26.4%.

• Final cash dividend of US$0.12 per ordinary share (US$0.36 per ADS), totaling approximately US$0.4 billion, was declared.

Financial highlights

• Full-year GTV reached RMB 3.35 trillion; existing home GTV rose 11% to RMB 2.25 trillion.

• Home renovation and furnishing revenue grew 36% to RMB 40.8 billion; home rental revenue surged 135% to RMB 40.3 billion.

• Q4 net revenue was RMB 31.1 billion, up 54.1% year over year; Q4 net income was RMB 578 million, down 13.8% year over year.

• Adjusted net income for 2024 was RMB 7.21 billion; Q4 adjusted net income was RMB 1.34 billion.

• Gross profit for 2024 was RMB 22.9 billion, up 5.6% year over year; gross margin declined to 24.6% from 27.9%.

Outlook and guidance

• Expect modest recovery in existing home market and continued adjustment in new home market in 2025, with structural divergence favoring existing homes.

• Continued investment in AI, digital tools, and operational efficiency to drive sustainable growth.

• Focus on enhancing product strength, delivery quality, and management efficiency in home renovation for 2025.

• Management expects continued growth driven by technology integration and a human-centric approach.

• Commitment to 'one body, three wings' strategy and steady business line growth.