KE Holdings Inc. (BEKE) shares declined 6.54% in after-hours on Wednesday, August 11, 2021, and closed the daily trading at $18.58. In the regular session of Wednesday, BEKE’s stock lost 5.15%. The stock volume remained 12.31 million shares, which was higher than the average daily volume of 9.36 million shares within the past 50 days. BEKE shares have moved down by 4.93% in the past week. Over the past three months, the stock has lost 59.86%, while over the past six months, it has declined 71.17%.
Let’s have a brief discussion about its recent developments.
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BEKE recent financial results announcement
On August 11, 2021, KE Holdings Inc (BEKE) reported its unaudited financial results for the second quarter ended June 30, 2021.
Q2 2021 financial highlights
- BEKE reported revenue of RMB24.2 billion (US$3.7 billion) in the second quarter of 2021 compared to RMB20.1 billion in the same period of 2020.
- The total cost of revenues was RMB18.8 billion (US$2.9 billion) in the second quarter of 2021 compared to RMB13.6 billion in Q2 2020.
- In Q2 2021, gross profit was RMB5.3 billion (US$0.8 billion) compared to RMB6.6 billion in the same period of 2020.
- Total operating expenses were RMB4.2 billion (US$0.7 billion) inQ2 2021 compared to RMB3.3 billion in Q2 2020.
- It reported a net income of RMB1,116 million (US$173 million) in Q2 2021 compared to RMB2,839 million in Q2 2020.
- The company had cash, cash equivalents, restricted cash and short-term investments amounted to RMB59.2 billion (US$9.2 billion) on June 30, 2021.
Q3 2021 financial guidance
For Q3 2021, BEKE is expecting, total net revenues to be in the range of RMB14.5 billion (US$2.2 billion) to RMB15.5 billion (US$2.4 billion).
KE made important corporate changes
On August 11, 2021, KE Holdings Inc (BEKE), appointed Mr XU Tao, as Company’s chief financial officer, as an executive director of its board of directors. The company also announced the appointment of Mr ZHU Hansong as an independent director of the Board, effective immediately. The Board also appointed Mr ZHU Hansong as a member of the compensation committee of the Board and a member of the audit committee of the Board.
At the same time, Mr PENG Yongdong stepped down as a member of the compensation committee of the Board, and Mr XU Wangang stepped down as a member of the audit committee of the Board. Mr PENG Yongdong will continue to serve as the chairman of the Board and the chief executive officer of the Company, and Mr XU Wangang will continue to serve as an executive director of the Board and the chief operating officer of the Company.
BEKE acquired Shengdu
On July 6, 2021, KE Holdings (BEKE) signed a deal to acquire a 100% stake in Shengdu Home Renovation Co. Ltd. The purchase price has been capped at RMB8 billion, consisting of cash and equity. The deal is expected to close in the first half of 2022.
BEKE stock price went down after the company announced its Q2 2021 financial results which did not fulfil the analyst’s expectations. It can further decline in the coming days.