KE Holdings Q2 Net Revenue Reaches RMB 24.5 Billion, Profit Margin Hits Three-Year High
Nashnova编辑部
KE Holdings posted Q2 net revenue of RMB 24.5 billion with an adjusted operating margin of 14.6% — a three-year high driven by the resale-housing recovery and per-store efficiency gains, not network expansion.
Margins at a three-year high — where did the extra profit come from?
Adjusted operating profit hit RMB 3.59 billion; the 14.6% margin was up 8.5 percentage points year-on-year.
Gross margin rose to 28.6% (up 6.7 pp); adjusted net margin reached 13.0%.
This means → KE did not earn more by selling more houses — it earned more per transaction. Cost-side efficiency, not top-line growth, did the heavy lifting.
Non-GAAP diluted EPS came in at $0.42 per ADS, beating consensus by $0.11. Yet revenue fell 5.7% YoY — confirming the story is margin quality, not revenue scale.
Resale volume is rebounding — what about new homes?
Total GTV (gross transaction value) reached RMB 933.8 billion, up 6.3% YoY — the first positive reading in a year.
Existing-home GTV rose 8.0% to RMB 629.9 billion; resale unit volume jumped 25% YoY.
In plain terms = the resale market is genuinely recovering — driven by transaction volume, not price increases.
New-home GTV grew just 1.2% YoY to RMB 258.4 billion, but surged 77.1% quarter-on-quarter. This reflects a rebound from a Q1 trough, though YoY momentum still trails the resale segment.
Fewer stores, fewer agents — so why are results better?
Total stores stood at 60,274, down 0.4% YoY; active agents fell to 454,571, down 7.5%.
Yet per-store resale transactions rose 26% YoY; Beilian-system resale volume climbed 30%.
This means → KE deliberately cut low-performing stores and agents, doing more deals with fewer people and fewer locations — the core of its "per-store productivity" pivot.
Existing-home contribution margin hit 46.1%, up 6.1 pp YoY — validating the efficiency-over-scale playbook.
Home renovation and rentals are slowing down — why are they more profitable?
Home renovation revenue was RMB 3.2 billion with a contribution margin of 39.6%, up 7.5 pp YoY — a record.
Put simply = KE cut money-losing customer-acquisition channels and moved quality control upstream into the construction process. Less spending, better reputation.
Rental revenue reached RMB 4.8 billion; contribution margin rose to 15.3% (up 6.9 pp YoY). Managed units exceeded 790,000, up roughly 34%.
The "Shengxin Zu" net-revenue-model product now accounts for over 50% of managed inventory; landlord renewal rate hit roughly 74%. This reflects a shift from volume-chasing to tenant and landlord retention.
Cash is strong — but is user traffic a warning sign?
Operating cash inflow was RMB 6.6 billion in Q2; broad cash reserves stood at roughly RMB 67.3 billion (excluding customer deposits).
New-home receivable days shortened to roughly 39 days, down about 12 days YoY. This means → developers are paying KE faster, and the cash cycle is healthier.
But mobile MAU averaged 45.7 million, below last year's 48.7 million — a roughly 6% YoY decline.
In plain terms = the profit engine is getting stronger, but user traffic is shrinking. Whether this margin rhythm holds in H2 depends on whether resale volume sustains and whether renovation and rental quality gains truly deliver.
Content is for reference only, not financial advice.