KE (BEKE) investor relations material

Executive summary

• Q2 2026 saw a return to GTV growth, with GTV rising 6.3% year-over-year to RMB933.8 billion and profits increasing sharply despite a modest revenue decline, driven by cost optimization and operational efficiency improvements.

• Net revenues declined 5.7% year-over-year to RMB24.5 billion, mainly due to lower home renovation and rental revenues, partially offset by growth in transaction services.

• Non-GAAP net income surged 74.9% year-over-year to RMB3.185 billion, with non-GAAP net margin reaching a three-year high of 13%.

• Gross margin expanded 6.7 percentage points year-over-year to 28.6%, while GAAP operating expenses fell 14.1% year-over-year.

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

Financial highlights

• Q2 GTV increased 6.3% year-over-year; revenue declined 5.7% year-over-year due to home renovation business adjustments.

• Net revenues from existing home transaction services increased 4.5% year-over-year to RMB7.0 billion, driven by higher GTV.

• New home transaction services revenue grew 3.8% to RMB8.9 billion, with deeper project coverage.

• Home renovation and furnishing revenue dropped 30.1% to RMB3.2 billion; home rental services revenue fell 14.8% to RMB4.8 billion.

• Adjusted EBITDA reached RMB4,175 million, up from RMB2,203 million a year ago.

Outlook and guidance

• Focus remains on maintaining a solid balance sheet, ample liquidity, and strict ROI discipline for investments.

• Second half operations will prioritize cash flow, risk control, and flexible resource allocation, with no reliance on market events for performance.

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

• Plans to further direct resources toward customer value creation and long-term sustainable growth.

• Continued emphasis on customer value, operating efficiency, and sustainable returns.