BEKE - KE Holdings calls Muddy Waters' report erroneous without merit

KE Holdings (NYSE:BEKE) refutes Muddy Waters' report alleging that the report is without merit and contains numerous errors of fact, and the report also shows a lack of basic understanding of the housing transactions industry in China. Muddy Waters’ methodology to capture the number of transactions is wrong and the calculation of gross transaction value and revenues is incomplete. The numbers disclosed by the Company concerning its agents and stores are also defective. Other allegations, including related to acquisitions, R&D expenses, are also unfounded amid incomplete data, erroneous estimation methodologies, unsupported speculations, and a mistaken understanding of industry practice. The board has authorized the independent audit committee to conduct an internal review of the key allegations contained in the Muddy Waters' report and will provide updates on the internal review when appropriate. Muddy Waters' revealed that the company is inflating its new home sales by more than 100%. Report further

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KE Holdings calls Muddy Waters' report erroneous, without merit