Market Performance and Outlook: In Q2 2025, the real estate market showed signs of a slowdown compared to Q1, primarily due to international trade frictions and the fading effects of previous policy measures. Home sales in the existing home market demonstrated resilience with a year-over-year (YOY) growth of 19% in transactions, while new home sales experienced a 6% decline. The outlook remains cautious with expectations of continued downward pressure on prices in the second half of the year due to weak market sentiment and projected price declines.

Financial Highlights: KE Holdings reported a total Gross Transaction Value (GTV) of RMB 878.7 billion, up 4.7% YOY, while total revenues increased by 11.3% YOY to RMB 26 billion. However, GAAP net income fell 31.2% YOY to RMB 1.31 billion, indicating challenges in sustaining profitability amidst high operational costs and competitive pressures.

Business Segments Performance: The existing home transaction service revenue decreased by 8.4% YOY to RMB 6.7 billion, whereas new home transaction revenue grew by 8.6% YOY to RMB 8.6 billion. The company also achieved 78% YOY growth in home rental services revenue, reaching a record high of RMB 5.7 billion, showcasing strong demand in this segment and the enhanced operational efficiency through AI integration.