Chinese secondary housing market continues its recovery trend in 2022
Ke Holdings Inc. (Chinese: 贝壳, HK: 2423), a digital service platform for the Chinese residential industry, announced its unaudited financial results for the third quarter of 2022 on 30 November. According to the report, Ke Holdings' total transaction volume for Q3 2022 was CNY 737.1 billion (USD 107.3 billion), down 11.3% year-on-year.
Ke Holdings' gross margin was 27.0% in Q3 2022, compared to 15.2% in the same period in 2021. The main reasons for the increase in gross margin include an increase in the percentage of total revenue from the inventory business, higher net income from the inventory business, and lower fixed compensation costs for Ke Holdings' brokers resulting in a higher contribution margin from the inventory business year-over-year.
According to the report, Ke Holdings' total transaction volume for inventory was CNY 449 billion, up 18.7% year-on-year; total transaction volume for new properties was CNY 261.5 billion, down 36.2% year-on-year; total transaction volume for emerging businesses and others was CNY 24.7 billion, a decrease of 41.7% compared to the same period in the previous year.
Tao Xu, executive director and chief financial officer of Ke Holdings, said, "Our series of results in expense optimization was evident in the third quarter, and the company's operational efficiency and health improved significantly, benefiting from initiatives to improve quality and efficiency in the face of market volatility."
As of press time, Ke Holdings closed at HKD 43 apiece, with a market cap of HKD 163.1 billion.