(Yicai) March 19 -- Ke Holdings’ shares fell after the major Chinese real estate agency reported a 31 percent decline in profit for last year, despite revenue rising on gains across home sales, decoration, and lettings.

The company’s shares [HKG: 2423] closed down 10.7 percent at HKD60 (USD7.70) apiece in Hong Kong today, after its New York-listed stock [NYSE: BEKE] sank 7.3 percent to USD23.27 yesterday.

Net profit was CNY4.08 billion (USD564 million) in the year ended Dec. 31, according to the Beijing-based company’s annual trading report released yesterday. Revenue jumped 20 percent to CNY93.5 billion (USD12.9 billion).

But operating costs surged 26 percent to CNY70.5 billion (USD9.8 billion), outpacing revenue growth and leading to the decline in profit.

Total gross transaction volume rose 6.6 percent to CNY3.35 trillion (USD463 billion), while second-hand home GTV rose 11 percent and new-build GTV fell 3.3 percent.

“Both the existing and new home markets saw a significant recovery following the stimulus policies introduced in September,” said Executive Director and Chief Financial Officer Xu Tao. Pre-owned home transactions increased in number in the 12 months, and the company’s share of national real estate transactions grew, he added.

Home renovation and furnishing services generated income of CNY14.8 billion, a 36 percent year-on-year increase, while home rental services brought in revenue of CNY14.3 billion, up 135 percent.

For the fourth quarter of last year, Ke reported a 14 percent drop in profit from a year earlier to CNY577 million (USD79.8 million) on a 54 percent surge in revenue to CNY31.1 billion (USD4.3 billion).

As of Dec. 31, the company had 49,693 branches, up 18 percent from a year ago, and about 445,000 agents, a 12 percent increase.

Editor: Tom Litting