Shares rose 4.2% as KE Holdings delivered a rebound in GTV growth and significant profit margin expansion, signaling improved operational efficiency and cost discipline despite ongoing revenue pressure in select segments.
- Q2 gross transaction volume (GTV) grew 6.3% year-over-year, returning to growth after prior softness.
- Revenue declined 5.7% year-over-year, mainly due to strategic adjustments and weaker demand in home renovation and rental services.
- Non-GAAP net income surged 74.9% to RMB 3.185 billion, with non-GAAP net margin reaching 13%, the highest in three years.
- Contribution margins improved across all core segments; notably, existing home transaction services margin rose to 46.1%.
- Operating expenses fell 14.1% year-over-year despite a quarterly increase linked to seasonal home renovation activity and increased bad debt provisions.
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