KE Holdings Inc. (Beike-W, 02423) released its unaudited interim report for the six months ended 30 June 2026, highlighting a strong rebound in profitability even as top-line growth softened.
Net revenues fell 12.0% year on year to RMB 43.43 billion (USD 6.01 billion). The contraction was driven by weaker new-home transactions, a strategic scale-back in home renovation operations, and a shift toward net-revenue recognition for asset-light rental services. Gross transaction value (GTV) slipped 4.5% to RMB 1.65 trillion.
Cost optimisation and an improved business mix lifted group gross margin by 5.3 percentage points to 26.6%. Operating expenses declined 18.0% to RMB 7.27 billion, supporting a jump in operating margin to 9.9% from 3.3% a year earlier.
Net income surged 79.5% year on year to RMB 3.88 billion, while adjusted net income rose 49.2% to RMB 4.80 billion. Adjusted EBITDA increased 60.0% to RMB 6.43 billion.
Segment performance was mixed: • Existing-home transaction revenue slipped 3.2% to RMB 13.15 billion; contribution margin improved to 46.1% in Q2. • New-home transaction revenue declined 15.9% to RMB 14.03 billion as GTV fell 17.1%, though Q2 saw a return to year-on-year growth. • Home renovation revenue dropped 26.4% to RMB 5.53 billion, yet Q2 contribution margin climbed to 39.6% on lower material costs and refined cost controls. • Home rental revenue decreased 8.5% to RMB 9.85 billion, reflecting a higher share of asset-light “Carefree Rent” offerings; Q2 contribution margin rose to 15.3%. • Emerging and other services grew to RMB 0.87 billion, supported by financial services.
As of 30 June 2026, Beike operated 60,274 stores and 540,634 agents. Active stores and agents were broadly stable year on year, while mobile MAU averaged 45.7 million in Q2.
The balance of cash, cash equivalents, restricted cash and short-term investments stood at RMB 56.0 billion. Net operating cash inflow was RMB 5.14 billion, a sharp turnaround from the prior-year outflow. Gearing ratio eased to 41.6% (31 Dec 2025: 43.0%).
During H1 2026 the company repurchased US $450 million of shares under its ongoing buyback programme, bringing cumulative repurchases to US $2.99 billion, equivalent to 14.8% of shares outstanding prior to programme launch. A final dividend of US$0.092 per ordinary share (US$0.276 per ADS), totalling US $299.3 million, was paid in April 2026.
Management reaffirmed focus on prudent capital allocation, efficiency gains and technology-driven service improvements to sustain long-term growth amid evolving market conditions.
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