KE Holdings Inc. Announces Acquisition of Shengdu to Accelerate Expansion of Home Renovation Business

KE Holdings Inc. (“Beike” or the “Company”) (NYSE: BEKE), a leading integrated online and offline platform for housing transactions and services, today announced that the Company, together with one of its Hong Kong subsidiaries, has entered into a definitive agreement with Shengdu Home Renovation Co., Ltd. (together with its subsidiaries and affiliates, “Shengdu” or the “Target”) and all of its existing shareholders and subsidiaries, pursuant to which the Company agreed to acquire 100% equity interests in Shengdu from its existing shareholders, for a total consideration capped at RMB8 billion consisting of cash and equity, subject to a staggered acquisition arrangement and customary closing conditions, including regulatory approvals.

The upfront acquisition will be for certain equity interests of the Target. The acquisition of the remaining equity interests of the Target, as a next step, will be subject to satisfaction of certain performance target criteria and other customary closing conditions. The consideration to be paid in connection with the acquisition of the remaining equity interests will be subject to pre-agreed price adjustment mechanisms. The transaction is currently expected to close in the first half of 2022.

Founded in 2002 and headquartered in Hangzhou, Shengdu is a full-service home renovation service provider in China. With over 19 years of operating experience, Shengdu has become a renowned home renovation service provider in East China with a service network covering seven provinces and municipalities, providing quality one-stop home renovation service for a large customer base.

Mr. Stanley Yongdong PENG, the chairman of the board and the chief executive officer of Beike, commented, “We are excited to welcome Shengdu to join us and look forward to the strong synergies to be realized from the acquisition. We tapped into the home renovation industry in 2019 through the launch of our home renovation brand, Beiwoo, and believe the development of the industry calls for high-quality service, high-quality service providers, and standardized management and technology, which are what Shengdu and us believe in and zealously strive to achieve. With 20 years of operating experience accumulated through Lianjia and Beike, we have gained profound understanding on how to establish new and higher standards in an existing industry that we hope to advance to the next level, and we believe our proposed acquisition of Shengdu will enable us to strengthen our capabilities in providing better housing services to satisfy the evolving needs of housing customers.”