In the third quarter, the income of shell housing search was 18.1 billion yuan, a year-on-year decrease of 11.9%

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On November 9, shell today announced its unaudited financial results for the third quarter ended September 30, 2021.
Business highlights in the third quarter of 2021
Shell’s net revenue in the third quarter was 18.1 billion yuan (about 2.8 billion US dollars), down 11.9% from 20.5 billion yuan in the same period last year; The net loss was 1.766 billion yuan (about US $274 million), compared with a net profit of 75 million yuan in the same period last year.
In the third quarter, the GTV of stock housing transactions decreased by 34.3% year-on-year, of which the GTV of second-hand housing transactions decreased by 36.8% year-on-year; Gtv of new housing transactions decreased by 2.5% year-on-year.
From January to September, the operating income of shell reached 63 billion yuan, a year-on-year increase of 31.7%, and the adjusted net profit was 2.25 billion yuan; The total GTV reached 3.12 trillion yuan, a year-on-year increase of 31.2%.
As of September 30, 2021, the number of stores was 53946, an increase of 20.2% over a year ago. As of September 30, 2021, the number of active stores was 49468, an increase of 20.2% over a year ago.
The average number of mobile monthly active users (MAU) 5 is 46.1 million, compared with 47.9 million in the same period in 2020.
Peng Yongdong, chairman and CEO of shell, said: “the third quarter is full of challenges and difficulties for the industry. Rectification and comprehensive adjustment are needed to ensure and promote the long-term and healthy development of China’s real estate market. Under the guidance of the national policy of stabilizing house prices, curbing speculation and promoting common prosperity, shell has always adhered to” service first and happy life ” Our performance in the third quarter not only reflects the broad macro environmental challenges faced by the industry, but also reflects the flexibility of our business. The total amount of GTV in this quarter was RMB 830.7 billion, a year-on-year decrease of 20.9%, but the performance is still better than the market. ”
Financial results for the third quarter of 2021
net income
In the third quarter of 2021, the net income decreased from 20.5 billion yuan in the same period in 2020 to 18.1 billion yuan (US $2.8 billion), a decrease of 11.9%. The main reason for the decrease is that the total GTV in the third quarter of 2021 decreased from RMB 1050 billion in the same period in 2020 to RMB 830.7 billion (US $128.9 billion), a decrease of 20.9%.
In the third quarter of 2021, the net income of existing house transaction services was RMB 6.1 billion (US $900 million), compared with RMB 8.8 billion in the same period of 2020. This is mainly due to the decrease of GTV of existing house transaction in the third quarter of 2021 from RMB 576.1 billion in the same period of 2020 to RMB 378.2 billion (US $58.7 billion), a decrease of 34.3%, The reason is that the existing housing market slowed down due to a series of market cooling measures in the third quarter of 2021.
Revenue from platform services, franchise services and other value-added services (mainly collected from related stores and agents on the company’s platform) was RMB 800 million (US $100 million) in the third quarter of 2021, compared with RMB 900 million in the same period of 2020, The main reason is that the GTV of existing housing transactions served by connected agents on the company’s platform decreased from RMB 290.4 billion in the third quarter of 2021 to RMB 192.9 billion (US $29.9 billion) in the third quarter of 2021, a decrease of 33.6%, mainly because the GTV of existing housing transactions provided by connected agents on the company’s platform decreased from RMB 29.4 billion (US $29.9 billion) in the third quarter of 2021 Decreased to RMB 192.9 billion (US $29.9 billion) in the third quarter of 2021. As the percentage of rental transactions with relatively high commission rate increased, the commission rate of existing housing transactions charged by affiliated stores increased slightly, partially offsetting the downward trend;
The Commission revenue in the third quarter of 2021 was 5.3 billion yuan (US $800 million), compared with 7.9 billion yuan in the same period of 2020. This is mainly due to the decrease of GTV of existing residential transactions provided by chain stores to 185.3 billion yuan (US $28.8 billion) in the third quarter of 2021, compared with 285.7 billion yuan in the same period of 2020.
In the third quarter of 2021, the net income from new house trading services increased from 11.1 billion yuan in the same period of 2020 to 11.3 billion yuan (US $1.8 billion), an increase of 2.5%, mainly due to the moderate increase in the commission rate of new house transactions, while the GTV of new house transactions in the third quarter of 2021 was 410.1 billion yuan (US $63.7 billion), compared with 420.7 billion yuan in the same period of 2020. In the third quarter of 2021, the GTV of new house transaction services completed on Beike platform through Internet agents and other sales channels was 337.6 billion yuan (US $52.4 billion), compared with 337.9 billion yuan in the same period of 2020; In the third quarter of 2021, the new house transaction GTV of chain brand service was RMB 72.6 billion (US $11.3 billion), compared with RMB 82.8 billion in the same period of 2020.
In the third quarter of 2021, the net income from emerging services and other services was RMB 610 million (US $94.6 million), compared with RMB 625 million in the same period of 2020. This was mainly due to the decline in the net income from financial services around existing housing transaction services, which was partially offset by the increase of 29.4% in the net income from decoration services.
Revenue cost
The total revenue cost in the third quarter of 2021 was RMB 15.3 billion (US $2.4 billion), compared with RMB 16.2 billion in the same period of 2020.
Commission sharing. In the third quarter of 2021, the revenue cost of the company to pay commissions to related agents and other sales channels was RMB 7.689 billion (US $1.193 billion), compared with RMB 7.737 billion in the same period of 2020. Compared with the same period of 2020, the number of new house transactions completed through related agents and other sales channels in the third quarter of 2021 was relatively stable.

Commission and compensation – internal. In the third quarter of 2021, the revenue cost of the company’s internal Commission and remuneration was RMB 6 billion (US $900 million), compared with RMB 6.6 billion in the same period of 2020, mainly due to the decrease in the number of check-out and new house transactions completed through chain agents.
Store related costs. The company’s store related costs in the third quarter of 2021 increased by 19.7% to RMB 1 billion (about US $200 million) compared with RMB 800 million in the same period of 2020, mainly due to the increase in the number of chain brand stores and the increase in the rent of contract service centers opened in 2021.
other expenses. The company’s other costs in the third quarter of 2021 decreased by 28.1% from RMB 1 billion in the same period in 2020 to RMB 700 million (US $100 million), mainly due to the decrease in share-based compensation expenses.
Gross profit
The gross profit in the third quarter of 2021 was RMB 2.8 billion (US $400 million), compared with RMB 4.4 billion in the same period of 2020. The gross profit margin in the third quarter of 2021 was 15.2%, compared with 21.3% in the same period of 2020. The decrease in gross profit margin is mainly due to the decrease in the net income of existing house transactions and the relatively flat fixed compensation cost of chain agents, resulting in the low contribution profit margin of existing house transactions.
Operating expenses
The total operating expenses in the third quarter of 2021 were RMB 5.1 billion (US $800 million), compared with RMB 4.5 billion in the same period of 2020.
In the third quarter of 2021, general and administrative expenses were RMB 2412 million (US $374 million), compared with RMB 2649 million in the same period of 2020, mainly due to the decrease of share-based compensation expenses, which was partially offset by the increase of personnel costs and provision for bad debts.
The sales and marketing expenses in the third quarter of 2021 were RMB 1.202 billion (US $187 million), compared with RMB 1.026 billion in the same period of 2020, mainly due to the increase in the number of business developers.
The R & D expenditure in the third quarter of 2021 was RMB 1043 million (US $162 million), compared with RMB 789 million in the same period of 2020, which was mainly due to the increase in the number of experienced R & D personnel, but the increase in R & D expenditure was partially offset by the decrease in share-based compensation expenditure.
Net income (loss)
The net loss in the third quarter of 2021 was RMB 1.766 billion (US $274 million), while the net income in the same period of 2020 was RMB 75 million.
The adjusted net loss in the third quarter of 2021 was RMB 888 million (US $138 million), while the adjusted net income in the same period of 2020 was RMB 1.858 billion.
As of September 30, 2021, the comprehensive balance of the company’s cash, cash equivalents, restricted cash and short-term investments was 52.7 billion yuan (US $8.2 billion).
expectation
In the fourth quarter of 2021, the company expects the total net income to be between RMB 14.5 billion (US $2.3 billion) and RMB 15.5 billion (US $2.4 billion), a decrease of about 31.6% to 36.0% compared with the same period in 2020. This forecast takes into account the potential impact of recent real estate related policies and measures, as well as the company’s current and preliminary views on the business situation and market conditions, which may change.