Core Viewpoint - KE Holdings Inc. ("Beike") reported its unaudited financial results for the second quarter of 2025, highlighting a focus on high-quality development amidst changing consumer demands in China's real estate sector, with significant advancements in AI technology driving productivity gains [3][4]. Business and Financial Highlights - The company achieved a gross transaction value (GTV) of RMB 878.7 billion (US$ 122.7 billion), representing a year-over-year increase of 4.7% [8]. - Net revenues rose by 11.3% to RMB 26.0 billion (US$ 3.6 billion) compared to RMB 23.4 billion in the same period of 2024, driven by new home transaction services and growth in home renovation and rental services [10]. - The number of active non-Lianjia stores increased by 36.8% year-over-year, while active non-Lianjia agents grew by nearly 24% year-over-year [7]. - Net income decreased by 31.2% to RMB 1,307 million (US$ 182 million) compared to RMB 1,900 million in the same period of 2024 [19]. Revenue Breakdown - Net revenues from existing home transaction services were RMB 6.7 billion (US$ 0.9 billion), down 8.4% year-over-year, while new home transaction services increased by 8.6% to RMB 8.6 billion (US$ 1.2 billion) [10]. - Home renovation and furnishing services saw a 13.0% increase in net revenues to RMB 4.6 billion (US$ 0.6 billion) [10]. - Home rental services experienced significant growth, with net revenues increasing by 78.0% to RMB 5.7 billion (US$ 0.8 billion) [10]. Cost and Profitability - Total cost of revenues increased by 20.5% to RMB 20.3 billion (US$ 2.8 billion) [12]. - Gross profit decreased by 12.5% to RMB 5.7 billion (US$ 0.8 billion), with gross margin declining to 21.9% from 27.9% year-over-year [13]. - Operating income was RMB 1,059 million (US$ 148 million), down from RMB 2,015 million in the same period of 2024, leading to an operating margin decrease to 4.1% [17]. Shareholder Returns - The company repurchased approximately US$ 394 million worth of shares in 2025, representing about 1.7% of total shares outstanding at the end of 2024 [9]. - The share repurchase program was upsized from US$ 3 billion to US$ 5 billion and extended until August 31, 2028 [25]. Cash Position - As of June 30, 2025, the combined balance of cash, cash equivalents, restricted cash, and short-term investments was RMB 53.1 billion (US$ 7.4 billion) [23]. Future Outlook - The company plans to continue adapting to the evolving dynamics of the real estate market by enhancing service offerings and leveraging AI technology for improved efficiency [5].