Q4 2025 Ke Holdings Inc Earnings Call (Chinese, English) Transcript
Key Points
- KE Holdings Inc (BEKE) reported a stable fee revenue performance, outperforming broader industry trends, with non-housing construction business accounting for a record high of 41% of total revenue.
- Operational efficiency improved significantly, with a decline in fixed labor costs and optimized cost structure, enhancing profit elasticity.
- The home renovation business narrowed its operating losses, and home rental services turned profitable at the operating level for the full year.
- The company announced a final cash dividend plan for 2025, bringing the total shareholder return to approximately USD1.22 billion, a year-on-year increase of around 9%.
- AI and data integration are being leveraged to enhance service capabilities, improve customer transaction certainty, and optimize resource allocation.
- Q4 2025 saw a notable year-on-year decline in GTV and revenue, with GTV decreasing by 36.7% and revenue down by 28.7%.
- Gross profit margin decreased to 21.4%, a year-on-year decline of 4.6 percentage points, due to a decline in transaction scale.
- Q4 GAAP net profit fell by 85.7% year-on-year, and non-GAAP net profit declined by 61.5%, partially due to one-off expenses related to cost optimization initiatives.
- The existing home business experienced a 35.3% year-on-year decline in GTV, and revenue decreased by 39% year-on-year.
- The new home business faced a 45.7% year-on-year decrease in GTV, with revenue decreasing by 44.5% year-on-year, reflecting challenges in the market environment.
Hello, ladies and gentlemen. Thank you for standing by for KE Holdings Inc fourth-quarter and fiscal year 2025 earnings conference call. Please note that today's call, including management's prepared remarks and a question-and-answer session will all be available in English. Simultaneous interpretation in Chinese is available on a separate line for the duration of the call. (Operator Instructions) Today's conference call is being recorded.
I will now turn the call over to your host, Ms. Siting Li, IR Director of the company. Please go ahead, Siting.
Thank you, operator. Good evening, and good morning, everyone. Welcome to KE Holdings or Beike's fourth-quarter and fiscal year 2025 earnings conference call. The company's financial and operating results were published in the press release earlier today and are posted on the company's IR website, investors.ke.com.
On today's call, we have Mr. Stanley Peng, our Co-Founder, Chairman and Chief Executive Officer; and Mr. Tao Xu, our Executive
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