The firm posts grim fiscal results for the first quarter of 2022, as competition remains intense and the market performance is below expectations.

Housing platform Beike (Chinese: 贝壳, BEKE: NYSE, 2423:HK) released its financial results for the first quarter of 2022 on May 31. The firm’s operating revenue reached CNY 12.5 billion (USD 186 million), with a total transaction volume of CNY 586 billion.

The firm provides an integrated online and offline platform for housing transactions and services in China. It owns and operates Lianjia (Chinese: 链家), one of China’s largest real estate brokerage brands and an integral part of Beike’s platform. 

However, the Chinese real estate rental industry has been experiencing intense competition. Competitors such as 58.com, Anjuke, and Fang Holdings Limited may pose a threat to the company.

In April, Beike completed the acquisition of SD (Chinese: 圣都家装). Assuming that the recently acquired firm is consolidated, the company’s total revenue from home improvement and furnishing businesses will increase 54% year on year to CNY 860 million.

Net revenue for the first quarter of 2022 was CNY 12.5 billion, down 39.4% from the same period last year. Net loss amounted to CNY 620 million, while the final adjusted net income was CNY 28 million.

Moreover, the number of stores was 45,777 as of March 31, a decrease of 6% compared to the previous year, according to Beike's quarterly financial result. The number of active stores also decreased by 4.3% from the previous year to 42,994.

Besides, the number of brokers also fell by 19.1% from the prior year to 427,379. Among them, the number of active brokers was 381,799, a drop of 20.3% from year on year compared with the same period last year.

Beike shares closed 13.23% higher to HKD 35.1 apiece today, with a market cap of HKD 115.5 billion.