KE Holdings Inc. (BEKE)

KE Holdings, known as Beike, reported second-quarter 2026 net revenues of RMB24.5 billion on 21 August, down 5.7 percent from a year earlier 1. Net income doubled to RMB2,624 million, up 100.8 percent 1.

Profit rose because costs fell faster than sales 1. Gross margin, the share of revenue left after direct costs, rose to 28.6 percent from 21.9 percent 1. Operating expenses fell 14.1 percent 1.

Revenue fell because home renovation revenue dropped 30.1 percent and home rental revenue fell 14.8 percent 1. The company said rental revenue is now booked as net service fees under a new Carefree Rent product 1.

Transaction value, the total value of deals the platform handled, grew 6.3 percent to RMB933.8 billion 1. Agents numbered 540,634, down 3.1 percent, and mobile users averaged 45.7 million against 48.7 million a year earlier 1.

The business began in 2001 as Beijing Lianjia, a home brokerage founded in September 2001 by Zuo Hui 2. KE Holdings was set up in the Cayman Islands in July 2018 as the holding company when the Beike platform launched 2.

Its American depositary shares began trading on the New York Stock Exchange on 13 August 2020 2. The offering raised about US$2,359 million in net proceeds, and a follow-on offering that November raised about US$2,323 million 2.

The company then widened beyond brokerage 2. It launched the Beiwoo renovation service in April 2020, and Carefree Rent, its rental service, grew at scale in the second half of 2022 2.

It closed the purchase of Shengdu on 20 April 2022 for RMB3.92 billion in cash and 44,315,854 Class A shares 2. Class A shares also began trading in Hong Kong on 11 May 2022 under stock code 2423 2.

In 2023 it upgraded its strategy to “One Body, Three Wings”, adding Beihaojia, a business aimed at upgrading the supply of new homes 2. The company calls the business early stage and subject to change 2.

Revenue rose 20.2 percent to RMB93.5 billion in 2024, helped by new home services and the growth of renovation and rental 2.

In 2025 revenue rose 1.2 percent to RMB94.6 billion, but total transaction value fell 5.0 percent to RMB3,183.3 billion amid pressure in the housing industry 2. Net income fell to RMB2,991.0 million from RMB4,078.2 million 2.

Existing home revenue fell 11.3 percent in 2025, partly because more deals came through connected agents, where revenue is booked net 2. Rental revenue rose 52.8 percent to RMB21.9 billion on more Carefree Rent units 2.

Housing transactions

Beike describes itself as a leading integrated online and offline platform for housing transactions and services 1. At 30 June 2026 the platform had 60,274 stores and 540,634 agents 1.

Its own Lianjia brand sells directly, while other brands join through its agent cooperation network and pay platform fees 2.

Existing home services earned RMB7.0 billion in the second quarter, up 4.5 percent, on transaction value of RMB629.9 billion 1. New home services earned RMB8.9 billion, up 3.8 percent 1.

Contribution margin, the share of revenue left after direct selling costs, was 46.1 percent for existing homes and 28.8 percent for new homes 1.

Renovation, rental and other services

Home renovation and furnishing earned RMB3.2 billion in the quarter, down 30.1 percent, as the company moderated some non-brokerage channels 1. Its contribution margin rose to 39.6 percent 1.

Home rental earned RMB4.8 billion, down 14.8 percent, and its contribution margin rose to 15.3 percent from 8.4 percent 1. Emerging and other services, mainly financial services, rose 26.4 percent to RMB546 million 1.

For 2025 the filed revenue by line was RMB30.6 billion for new homes, RMB25.0 billion for existing homes, RMB21.9 billion for rental and RMB15.4 billion for renovation 2.

People and sites

Peng Yongdong is chairman and chief executive, and Xu Tao is executive director and chief financial officer 1.

The annual report lists about 7,100 leased facilities, mostly Lianjia stores in 26 cities and renovation stores in 39 cities 2. It owns a 120,300 square meter factory in Jinhua and a 55,210 square meter training center in Kunshan 2.

It held 2,121 issued patents and 1,385 pending applications at the end of 2025 2.

Rivals and risks

Beike says no other player in China runs a similar integrated platform, but it competes with online listing platforms, other new home sales channels and local brokerage stores 2.

Carefree Rent carries risk because early termination of landlord agreements can bring damages for breach of contract 2.

The umbrella, in words

Lianjia is the brokerage brand it owns and operates, and Deyou is a franchise brand it licenses to brokerage firms 2.

KE Holdings, the Cayman holding company, directs Beijing Lianjia, Yiju Taihe and Tianjin Xiaowu through reorganization transactions and contractual arrangements 2. It owns Shengdu, bought in April 2022 2.

Class B shares carry ten votes each and may be held only by the two co-founders, Peng Yongdong and Shan Yigang, or their vehicles 2. Peng's vehicle holds 5.1 percent of ordinary shares and 22.5 percent of votes 2.

Entities affiliated with Mrs. Zuo hold 25.1 percent of ordinary shares and 18.3 percent of votes, and Tencent affiliates hold 8.7 percent and 6.4 percent 2.

The company has a share repurchase program of up to US$5 billion for Class A shares and ADSs until 31 August 2028, subject to shareholder mandates 1. By 30 June 2026 it had bought about 185.4 million ADSs for about US$2,967.7 million 1.

The current Hong Kong mandate came from the annual general meeting held on 12 June 2026 1. The company says it must seek new mandates at each of the next two annual meetings 1.

Chief financial officer Xu Tao said the company will direct resources toward building capabilities that create greater value for customers 1. Chief executive Peng Yongdong said it will keep assessing its transformation across consumer experience, operating efficiency and unit economics 1.

The annual report says the Shengdu headquarters project in Hangzhou, on about 13,377 square meters of land bought for RMB309 million, began in May 2024 and is ongoing 2.