KE (BEKE) investor relations material

Executive summary

• Q2 2026 GTV rose 6.3% year-over-year to RMB 933.8 billion, with existing home GTV up 8.0% and new home GTV up 1.2%.

• Net revenues declined 5.7% year-over-year to RMB 24.5 billion, mainly due to home renovation optimization and a shift toward rental offerings recognized on net service fees.

• Adjusted net income surged 74.9% year-over-year to RMB 3.19 billion, with non-GAAP net margin reaching a three-year high of 13%.

• Gross margin expanded by 6.7 percentage points year-over-year to 28.6%, driven by higher operating efficiency and cost structure optimization.

• Operating expenses fell 14.1% year-over-year, supporting higher profitability and efficiency.

Financial highlights

• Net revenues for Q2 2026 were RMB 24.5 billion, down 5.7% year-over-year, with GTV up 6.3%.

• Adjusted net profit reached RMB 3.19 billion, up 74.9% year-over-year; GAAP net income was RMB 2.624 billion, up 100.8%.

• Gross profit rose 23.1% year-over-year to RMB 7.0 billion; gross margin improved to 28.6%.

• Operating expenses decreased 14.1% year-over-year to RMB 3,988 million, with opex ratio at 16.2%.

• Operating cash inflow was RMB 6.61 billion, and total liquidity stood at RMB 67.3 billion as of June 30, 2026.

Outlook and guidance

• Focus remains on quality growth, operating efficiency, and replicability across cities and service scenarios.

• Resources are being shifted toward higher-value activities, with inefficient capacity streamlined.

• Strategic transformation initiatives, including AI-driven consumer-centric changes, are being piloted to enhance service quality and operational efficiency.

• Second half operations will prioritize cash flow, risk control, and flexible resource allocation.

• Continued emphasis on customer value, sustainable returns, and disciplined investment.