Shell Q1 Report: Net Income 20.3 billion yuan, Net Profit 2.75 billion yuan

On May 18th, it was announced that Shell (NYSE: BEKE; HKEX: 2423) released its financial results for the first quarter of 2023. According to the financial report, the total trading volume (GTV) of Shell in the first quarter was 971

On May 18th, it was announced that Shell (NYSE: BEKE; HKEX: 2423) released its financial results for the first quarter of 2023. According to the financial report, the total trading volume (GTV) of Shell in the first quarter was 971.5 billion yuan (RMB, the same below), a year-on-year increase of 65.8%, and the net income was 20.3 billion yuan, a year-on-year increase of 61.6%. This exceeded the performance guidelines and consensus market expectations, with a gross profit margin of 31.3% and a net profit of 2.75 billion yuan.

Co founder and chairman of Shell CEO Peng Yongdong stated: Shell is an organization that always seeks growth, and because we aspire to make the industry better to a greater extent, we will have a greater career, which is determined by our mission. The main development direction for the next decade is judged to be 'achieving efficiency growth with quality at the core'. In the residential field, customers' needs are far from being met. Customers' demand for products and quality services that bring better living experiences It will bring huge growth space for our future

Executive Director of Shell Chief Financial Officer Xu Tao stated: The recovery of the market, our efficient operation ability, and more efficient cost and expense structure support our continuous improvement of multiple financial indicators in the first quarter. In the long run, we will be more proactive in laying out things that can bring us long-term growth and a larger vision. In the huge market of residential services, we will firmly lay a deep foundation of quality, not be impatient, and strive steadily to improve the practice ecology of service providers and enhance their prospects Make unremitting efforts to provide consumer living service experience

In the first quarter, the concentrated release of backlog demand in real estate transactions and the combination of loose policies have been beneficial, leading to a significant rebound in the national second-hand and new housing markets. Improving demand has become an important factor in the current round of market recovery and future market development. According to data from the Shell Research Institute, the national second-hand housing transaction volume increased by 51.2% year-on-year in the first quarter; According to data from the National Bureau of Statistics, the sales of commercial residential buildings in China increased by 7.1% year-on-year.

The financial report shows that in the first quarter, the GTV of the existing shell housing business reached 664.3 billion yuan, with a net income of 9.2 billion yuan; The GTV of the new housing business reached 277.9 billion yuan, with a net income of 8.4 billion yuan; The net income of home decoration and home furnishing business reached 1.4 billion yuan, a year-on-year increase of 54.3% under comparable standards.

In the first quarter, the number of stores and brokers reversed a continuous downward trend, with the number of active stores increasing by about 6% month on month to over 39600, and the number of active brokers increasing by as much as 18% month on month to 411500 people.

In terms of new houses, Shell has improved its service capabilities for credit and high-quality real estate enterprises, with the proportion of state-owned enterprise revenue increasing to 46%. Over 5000 new house cooperative properties have achieved "hidden registration" in Shell, and developer Sunshine has promised to cover over 4000 properties. The collection of new house payments has exceeded the revenue of new houses for 7 consecutive quarters, and the turnover days of accounts receivable in the first quarter have been reduced to only 59 days, a decrease of 5 days month on month and 93 days year-on-year.

In the first quarter, the national decoration market rebounded with the recovery of the real estate market, and the contract amount of shell home decoration and home furnishing business achieved a year-on-year growth of 108% under comparable standards. Among them, the proportion of contract value reached through cooperation on one track exceeds 40%, and the individual business capabilities of leading cities such as Beijing continue to improve.

In the rental sector, at the end of the first quarter, the number of shell rental properties under management exceeded 160000 units; Among them, the decentralized rental housing management service "worry free rent" has exceeded 90000 units in the management of housing resources. (One Orange)