KE Holdings Reports Record Profit Margins Despite Revenue Decline
On August 21, KE Holdings (NYSE:BEKE) reported second-quarter results showing a significant increase in non-GAAP net income despite a revenue decline. While revenue fell by 5.7% year over year, the company's profit surged due to cost reductions and improved operational efficiency. Gross transaction value increased by 6.3%, driven largely by growth in existing home transactions. KE Holdings also reported an expanded gross margin of 28.6% and a reduction in operating expenses by 14.1%. Operational improvements included higher agent productivity, the introduction of AI-assisted client managers, and tighter collections discipline. However, not all segments performed well; revenue from home renovation dropped sharply due to weak unit economics in certain cities, while home rental revenue also declined partly because of a change in accounting methods.
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