Tencent-Backed Beike Shows Strong Performance for Fiscal 2020

Beike
(Source: Beike)

Beike, a housing transaction and services platform listed on the New York Stock Exchange, published its unaudited financial result for the fiscal year 2020 on Monday. In the pandemic-struck year when most of the world’s housing markets plunged to a historical low, Beike outperformed its industry peers with an over 65% year-on-year increase in GTV (Gross Transaction Value).

Apart from GTV, Beike also recorded a US$3.5 billion in net revenue, up by 57.6% from 2019 and exceeding the company’s previous guidance range high. The number of Beike stores and agents also boomed with an increase of 25.1% and 37.9%, respectively. Its gross profit reached US$0.8 billion in the fourth quarter of 2020, almost double from the same period the previous year.

In 2001, the Zillow-like platform was founded by Chinese entrepreneurs Stanley Liu and Zuo Hui under the name Lianjia. It focused on operating real estate brokerage chains and has grown to be the one of the country’s largest property brokerage platforms. In August, Beike completed one of the biggest initial public offerings in the US, drawing US$2.12 billion from global investors like Tencent and Softbank.

While Chinese companies have been caught in the crossfire of the US-China trade tensions, Beike seems unshaken by the fiscal scandals of some high-profile Chinese companies in the US, such as Kingold Jewelry and Luckin Coffee.

SEE ALSO: Beike Announces Third Quarter 2020 Unaudited Financial Results

“The ground we’ve covered in the past year has cemented our confidence that the value brought by our commitment to doing the right thing, even if it’s difficult, is the foundation for all our achievements,” Peng said in the financial report.

Peng added that going forward, the company would focus on taking care of their customers, supporting service providers, cultivating their emerging services, creating social value and enhancing technology’s critical role.

“We are confident of our growth trajectory as we move closer to realizing our vision of providing comprehensive and trusted housing services to 300 million families in China,” Peng concluded.