Shares of KE Holdings (HKG:2423) plummeted 8.93% in early trading on Wednesday following the release of its 2024 financial results. The Chinese real estate services provider reported a significant drop in profit despite a substantial increase in revenue, disappointing investors.

According to the company's filing with the Hong Kong Stock Exchange, KE Holdings' attributable net income for 2024 fell to 4.06 billion yuan from 5.88 billion yuan in the previous year. This translated to a decrease in earnings per share from 1.63 yuan to 1.15 yuan. The decline in profitability came despite a 20.2% year-over-year increase in total net revenue, which rose to 93.46 billion yuan from 77.78 billion yuan.

While the company approved a final dividend of $0.12 per share, payable on April 22, this failed to offset investor concerns about the profit decline. The sharp drop in KE Holdings' stock price reflects market disappointment with the company's inability to convert revenue growth into higher profits, possibly due to increased operational costs or market pressures in China's real estate sector.