BEIJING - KE Holdings Inc. (NYSE: BEKE) reported second quarter earnings and revenue that surpassed analyst expectations, sending shares up 3.3% in early trading Monday.
The Chinese online and offline real estate platform posted adjusted earnings per ADS of $2.28, significantly beating the consensus estimate of $1.60. Revenue jumped 19.9% year-over-year to RMB23.4 billion ($3.2 billion), also topping expectations of RMB22.04 billion.
KE Holdings' strong results were driven by growth in its existing home transaction services and expansion of its home renovation and rental businesses. Net revenues from existing home transactions increased 14.3% YoY to RMB7.3 billion ($1.0 billion), while home renovation and furnishing revenues surged 53.9% to RMB4.0 billion ($0.6 billion).
"In the second quarter of this year, our series of operational enhancements and scientific management measures supported us in achieving high-quality results that notably exceeded the market performance," said Stanley Yongdong Peng, Chairman and CEO of KE Holdings.
The company's gross transaction value (GTV) rose 7.5% YoY to RMB839.0 billion ($115.5 billion), driven by a 25% increase in existing home transaction GTV. However, new home transaction GTV declined 20.2% amid a sluggish market.
KE Holdings maintained a strong balance sheet, with cash and short-term investments of RMB59.7 billion ($8.2 billion) as of June 30. The company also announced it is upsizing its share repurchase program from $2 billion to $3 billion and extending it through August 2025.
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