Q1 2026 KE Holdings Inc Earnings Call (Chinese, English) Transcript
Key Points
- KE Holdings Inc (BEKE) reported a significant increase in non-GAAP operating profit, reaching RMB1.67 billion, up 45.1% year-over-year and 416.2% quarter-over-quarter.
- The company's non-GAAP operating margins stood at 8.8%, the highest level in the past seven quarters, indicating improved operational efficiency.
- Despite a year-on-year decline in revenue, the contribution margin of all core business lines improved, reflecting successful cost structure optimization.
- KE Holdings Inc (BEKE) spent around $195 million on share repurchases, representing ongoing returns to shareholders and confidence in the company's sustainable development.
- The company's gross margin reached 24.1%, up 3.5 percentage points year-over-year, driven by gross margin expansion and improved operating efficiency.
- KE Holdings Inc (BEKE) experienced a year-over-year decline in gross GTV and revenue due to a high base from the real estate market in the same period last year.
- Revenue from existing home transaction services decreased by 10.7% year-over-year, reflecting challenges in maintaining business scale.
- The new home business saw a significant decline, with Q1 GTV down 37.2% year-over-year and revenue down 37% year-over-year.
- Home renovation and furnishing services revenue declined by 20.6% year-over-year, attributed to a proactive exit from low-quality customer acquisition channels.
- The company recorded a net operating cash outflow of $1.5 billion in Q1, mainly due to timing factors related to the payment of accrued employee compensation from the previous year.
Hello, ladies and gentlemen.
Thank you for standing by for KE Holdings' first quarter 2026 earnings conference call. I am Si-Ting Li, IR Director of KE Holdings.
Please note that today's call, including management prepared remarks and Q&A session, will all be in Chinese. Simultaneous interpretation in English will be available on a separate line.
To access the call in Chinese, you will need to dial in the Chinese line. At this moment, all participants are in listen-only mode. Today's conference call is being recorded.
The company's financial and operating results were published in the press release earlier today and are posted on the company's IR website. With us today, we have Mr. Stanley Peng, our Co-Founder, Chairman, and Chief Executive Officer, and Mr. Xu Tao. Our Executive Director and CFO. Mr. Xu will provide an overview of our business updates and financial performance. Then, Mr. Pang will share more on our strategic transformation and insights. Before we continue, I refer you to our Safe
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