KE Holdings profit rises 47% on cost cuts despite sales drop

KE Holdings (NYSE:BEKE), China’s largest housing transactions platform, reported a 46.7% increase in first-quarter net income as internal cost optimization mitigated an extended contraction in the nation's new-home market.

The Beijing-based company, also known as Beike, generated net revenues of RMB18.9 billion ($2.7 billion) for the three months ended March 31, 2026.

This represents a 19% decline from the same period last year, reflecting a high historical baseline and ongoing headwinds across China’s broader real estate sector.

Gross transaction value (GTV) transacted across the platform fell 15.6% year-over-year to RMB711.7 billion.

The revenue decline was primarily dragged down by a 37.2% contraction in new-home transaction GTV, which fell to RMB145.9 billion.

Existing-home transactions proved more resilient, dropping a more modest 7.9% to RMB534.4 billion.

Despite the weaker top-line numbers, the company’s focus on efficiency and segment contribution margins expanded profitability.

Net income climbed to RMB1,255 million, up from the prior year.

Gross margin widened to 24.1%, while operating margin rose to 6.7%.

On an adjusted basis, operating margin reached 8.8%, marking its highest level in seven quarters.

Meanwhile, KE Holdings maintained a solid capital position, finishing the quarter with cash, cash equivalents, restricted cash, and short-term investments totaling RMB53.9 billion.

Capital return initiatives continued during the period, with the company deploying approximately $195 million to repurchase shares in the open market.

The buybacks were executed under KE Holdings’ existing share repurchase authorization, which allows for up to $5 billion in cumulative stock buybacks.