Beike (KE Holdings Inc.), a housing transactions and services platform in China, announced its unaudited financial results for the third quarter ended Sept. 30, showing robust financial and operational growth in the third quarter.
The company’s net revenue increased by 70.9% year-over-year to 20.5 billion yuan, driven by strong GTV of both existing home and new home transaction services. The company saw a 1.05 trillion yuan ($160 billion) Gross Transaction Value (GTV), up 87.2% year-over-year.
With increasing demands for real estate, Beike’s GTV of new home transaction services increased by 105.7% year-over-year to 420.7 billion yuan ($64 billion).
The strong demand for housing transaction services from both home sellers and buyers also boosted its existing home transactions, which grew by 71.8% year-over-year to 576.1 billion yuan ($87.9 billion). GTV of emerging and other services was 53.2 billion yuan ($8.1 billion), an increase of 151.5% year-over-year.
As of Sept. 30, the number of Beike stores increased by 41.7% compared to the third quarter in 2019 to 44,883. The company had 477,810 agents as of Sept. 30, up 50.7% year-over-year. Mobile monthly active users also saw a 82.1% growth year-over-year, now averaged at 47.9 million.
The company provides a Premium Package for Home Sellers, a personally-tailored service for home sellers that facilitates housing transactions with big data. Beike also leverages its residential housing database to digitalize its services with applications like its Online Mortgage Processing Service, Xiaobei AI-assistant 2.0 and VR Lite.
“We are pleased to deliver strong results for our first quarter as a public company,” said Beike co-founder and CEO Stanley Yongdong Peng. “In the third quarter, we continued to strengthen our infrastructure, including the Agent Cooperation Network, by scaling up our network of community centric stores and agents, as well as expanding our online presence at a rapid pace.”
Cost of revenues increased by 78% to 16.2 billion yuan ($2.5 billion) in the third quarter of 2020 from 9.1billion yuan in the same period of 2019, primarily due to the increase in split commission to connected agents
and other sales channels, and the increase in internal commission and compensation.
Gross profit increased by 49.1% to 4.4 billion yuan ($671.6 million) in the third quarter, from 2.9 billion in the same period of 2019.
For the fourth quarter, the company expects the total net revenues to be between 19.2 billion yuan ($2.9 billion) and 20.2 billion ($2.6 billion), representing a 33.5% to 40.5% year-over-year increase.