KE Holdings, Inc. Q4 FY2024 earnings call

Industry Changes

China's real estate industry has matured faster with accelerated changes. Home prices are no longer unidirectionally upward, leading to more uncertainty in customer decision - making. Customers now want to minimize home - buying risks and pursue 'living well'.

Business Progress in 2024

• Active store count grew by 18.3% year - on - year to nearly 49,700, and the number of agents rose to 445,000, up 12.1% year - on - year. Served 8.6 million customers.
• Existing home transaction and new home transaction businesses performed well. Home renovation business completed renovation services for nearly 60,000 homes across over 40 cities, connected with over 70,000 renovation workers, etc. Home rental services had over 430,000 managed rental units and saw a significant revenue increase.

Technology Application

Applied AI technology, developed ChatHome and Dreamhome large models. Conducted explorations in consumer services, supply side, and platform side. For example, tested AI - powered home - seeking assistant Pudding, and applied AI in Realsee VR home tour, agent tools, home renovation, etc.

In fiscal year 2024, KE Holdings' total GTV reached RMB 3.35 trillion. Total revenue hit a record high of RMB 93.5 billion, growing over 20% year - on - year. For the existing home transaction business, GTV rose nearly 11% year - on - year to RMB 2.25 trillion. The new home transaction business generated RMB 970 billion in GTV for the year, down just 3.3% year - on - year, while total revenue grew by 10% year - on - year. The home renovation and furnishing business achieved total revenue of RMB 14.8 billion for the year, a year - on - year increase of 36%. The home rental services revenue surged by 135% year - on - year to RMB 14.3 billion.

Market Outlook for 2025

The market may start to bottom out in 2025. Existing home price stabilization is the prerequisite for overall market stabilization. It is expected that policy optimization will stimulate home - buyer demand and drive transaction volume recovery. Existing home market will realize mild recovery, and new home market adjustment will narrow. Structureally, existing home proportion will continue to rise.

Business Plans

• Housing transaction services: Continue to focus on 'growth' and 'ecosystem', ensure steady growth of store and agent network, and drive growth through efficiency improvement.
• Home renovation business: In 2025, core goal is to 'enhance product strength and improve delivery quality with a customer - centric approach, and improve management and operational efficiency', including iterating business model, upgrading showrooms, enhancing delivery capabilities, and improving operational efficiency.
• Home rental business: Continue to balance scale and operation, strengthen service quality and renewal efficiency, and optimize rental cost management.

• Real estate market uncertainty: China's real estate industry has rapid changes, and market demand and prices are uncertain, which may affect the company's business performance.
• Policy change risk: Adjustments in real estate policies may have an impact on the company's business, such as the impact on home - buyer demand and market transactions.

Q: About how Beike utilizes technology, such as whether it considers cooperating with advanced AI large models like DeepSeek to enhance business operation and user experience?

A: Elaborated from three perspectives: consumer services, supply side, and platform side. The company has developed ChatHome and Dreamhome large models. Conducted tests on AI - powered home - seeking assistant Pudding, applied in Realsee VR home tour, developed various AI tools for business partners, and in 2025 plans to increase AI investment.

Q: About the real estate market outlook, the sustainability of the rebound since last September and the market expectation in 2025?

A: In 2024, the market had new changes such as strong policy impact. In 2025, the market may bottom out, existing home price stabilization is the premise, and it is expected that policy optimization will stimulate demand and drive transaction volume recovery.

Q: About the brokerage business, the growth brought by investments in 2024 and the strategy in 2025?

A: In 2024, the housing transaction services focused on promoting growth and optimizing ecosystem, with significant growth in store and agent network. In 2025, continue to focus on 'growth' and 'ecosystem', strengthen the stability of store and agent network, and drive growth through efficiency improvement.

Q: About the home rental business, the key advantages of rapid growth and measures to maintain stability and improve profitability in 2025?

A: In 2024, the home rental business achieved scale expansion with 'service and efficiency' as the core. In 2025, continue to balance scale and operation, strengthen service quality and renewal efficiency, and optimize rental cost management.

Q: About the home renovation business, the growth drivers in 2024 and the strategic plan in 2025?

A: In 2024, the home renovation business grew due to the high - efficiency synergy between housing transaction services and new businesses, etc. In 2025, the core goal is to enhance product strength, improve delivery quality, etc., including iterating business model, upgrading showrooms, and enhancing delivery capabilities.