On August 12, Ke Holdings (NYSE: BEKE; HKEX: 2423) released its financial results for the second quarter of 2024.

During the reporting period, Ke Holdings achieved a total transaction value (GTV) of 839 billion yuan, with a net income of 23.4 billion yuan, a year-on-year increase of 19.9%. The gross margin was 27.9%, and the net income reached 1.9 billion yuan, a year-on-year increase of 46.2%. The adjusted net income reached 2.69 billion yuan, a year-on-year increase of 13.9%.

Against the backdrop of the gradual recovery of the second-hand housing market, Ke Holdings' existing housing business achieved steady development, with a GTV of 570.7 billion yuan, a year-on-year increase of 25%, and a net income of 7.3 billion yuan, a year-on-year increase of 14.3%. This is mainly attributed to the solidification and refinement of brokers and store networks.

As of the end of the period, Ke Holdings had 45,948 stores, a year-on-year increase of 6.9%; 44,423 active stores, a year-on-year increase of 8.1%. The number of brokers was 458,690, a year-on-year increase of 5.2%; 411,478 active brokers, a year-on-year increase of 0.6%.

The continued expansion of store scale and business, from transactions to diversified development of one-stop residential services, has also put forward higher and more urgent requirements for platform ecology construction. This year, Ke Holdings further expanded the coverage of the Regional Co-Governance Council, covering a total of 74 cities as of the end of the second quarter, and promoted more like-minded service providers to participate in the platform's ecological rule iteration.

In terms of new housing business, Ke Holdings also achieved performance far exceeding the industry in the second quarter, maintaining strong monetization capabilities. Ke Holdings stated that the resilience of its own business mainly comes from the expansion of channel coverage and the enhancement of liquidity.

As new homes enter the buyer's market, the role of channels has shifted from simple sales to insight and analysis of customer needs, and working together with developers to address pain points for new home customers. Ke Holdings actively establishes strategic partnerships with more high-quality developers through innovative service product models to increase coverage of high-quality sources.

In the second quarter of this year, Ke Holdings' new housing business achieved a GTV of 235.3 billion yuan, and the amount of new home signings and transactions in June increased by 12% year-on-year, outperforming the industry; achieving a net income of 7.9 billion yuan.

Under the guidance of the 'One Body Three Wings' strategic approach, ke holdings' home improvement and home furnishing business revenue scale continues to grow steadily. In the second quarter, the home improvement and home furnishing business achieved a contract amount of 4.2 billion yuan, a year-on-year increase of 22.3%, and a net income of 4 billion yuan, a year-on-year increase of 53.9%, with a profit contribution margin of 31.3%.

Ke holdings' management expressed that this year is a year to proactively slow down the pace of the home improvement business. If we run too fast, we may sacrifice quality and customer trust. In the future, Ke holdings will continue to strengthen the ability to provide one-stop home improvement solutions, improve digital infrastructure, and promote service standards and capabilities in more cities.

In the second quarter, ke holdings' house rental and leasing services achieved a net income of 3.2 billion yuan, a year-on-year increase of 167.1%. Beijing achieved a balanced profit and loss in the first half of the year under the conditions of multiple cost prepayments.

As the core business capabilities continue to improve and new businesses gradually become new growth points, Ke holdings will bring more quality services to consumers and more beneficial practices to the industry around the topic of 'Better Living'.