On August 21, BEKE-W (02423) released its second-quarter 2026 earnings report, revealing a period of notable operational progress. The company achieved net revenue of RMB 24.5 billion, with adjusted operating profit reaching RMB 3.59 billion and an adjusted operating margin of 14.6%, up 8.5 percentage points year-over-year.

Transaction volume for second-hand homes on the BEKE platform grew 25% year-over-year, while total gross transaction value reached RMB 933.8 billion, up 6.3% and marking the first quarterly increase in a year. The combination of strategic transformation and a recovering existing-home market delivered BEKE's strongest quarterly results in three years.

Stanley Peng, co-founder, chairman, and CEO of BEKE, commented, "In the second quarter of 2026, our operational foundation further solidified, and organizational changes began to permeate daily operations. We are enhancing collaboration among professional service providers, the platform, and AI, grounded in consumer needs and frontline issues: professionals take on judgment and responsibility, the platform provides coordination and fulfillment assurance, and AI transforms professional experience into verifiable, reusable organizational capabilities. Going forward, we remain committed to pursuing quality-driven scale growth to build a solid foundation for long-term sustainable development."

Tao Xu, executive director and CFO of BEKE, added, "Our profitability continued to improve, with contribution margins across all core businesses rising both year-over-year and sequentially, lifting gross margin by 6.7 percentage points to 28.6%. Adjusted operating margin and adjusted net margin reached 14.6% and 13.0% respectively, both hitting three-year highs."

Alongside profit improvement, BEKE maintained robust cash management and collection efficiency, with net operating cash inflow of RMB 6.6 billion in the quarter. As of quarter-end, broad cash balances, excluding customer deposits, stood at approximately RMB 67.3 billion, while the turnover days for new-home receivables shortened to about 39 days, down roughly 12 days year-over-year.

Second-hand home transactions grew 25%, positioning BEKE's earnings as a bellwether for the recovering existing-home market. As China's real estate sector shifts into an era defined by existing-home inventory, easing policies across multiple regions are unlocking housing consumption potential and boosting secondary-market activity. During the quarter, second-hand home transaction volume on the platform rose 25% year-over-year, driving existing-home GTV up 8% and generating revenue of RMB 7 billion, with total GTV reaching RMB 933.8 billion, a 6.3% increase.

Rather than chasing growth through more storefronts, BEKE is now driving expansion through higher per-store productivity, focusing on improving existing store efficiency, helping store owners identify operational issues, and deepening cross-store collaboration. During the period, the number of BEKE-linked stores remained roughly stable year-over-year, while second-hand transaction volume per store climbed 26%, fueling a 30% surge in overall linked-store second-hand transactions. The contribution margin for the existing-home business reached 46.1%, up 6.1 percentage points year-over-year.

The new-home business saw GTV rise 1.2% year-over-year and 77.1% sequentially, outperforming the broader market, with revenue up 3.8% to RMB 8.9 billion. The most significant shift in BEKE's property transaction business this quarter was the simultaneous recovery of transaction scale and marked improvements in platform network efficiency, unit economics, and cash flow across all business segments. The rebound in transaction activity, combined with a year of sustained optimization in business structure, unit efficiency, and resource allocation, has significantly bolstered BEKE's overall profitability.

After 150 days of transformation, consumer-centric innovation is reigniting the growth engine. Since announcing the "consumer-centric" strategic shift in late March, BEKE has been steadily rolling out a series of reform measures. Around key consumer questions—how to clarify needs, how to compare options, and how to gauge pricing and transaction timing—BEKE is redesigning professional roles, collaboration processes, and service tools. These innovations include property managers, community open house days, "sincere sale" listings, and online service assistants, alongside efforts to embrace new media for decision-making content, distill top-performer skills, and equip agents with AI assistants to reduce their workload.

For instance, community open house days, piloted by Lianjia in Shanghai and Beijing, allow homeowners to quickly gauge real demand, pricing feedback, and listing competitiveness. In the Beijing pilot, these events generated significantly higher viewing traffic and accelerated negotiation progress between buyers and sellers. To date, community open house days have been implemented across 67 Beijing neighborhoods, with participating pilot communities seeing average daily viewing volume increase 2.6 times, and buyers who attended these events signing contracts within seven days at roughly twice the rate of non-participants.

On the buyer side, BEKE is introducing an "AI + human" online service assistant in select scenarios to provide dedicated home-buying concierge services, helping buyers clarify their needs before viewing properties and then matching more refined customer requirements with suitable agents. In Beijing, this service has served nearly 100,000 people since its pilot launch in March, and customers routed to agents after in-depth consultations with the online assistant have seen transaction efficiency improve sixfold.

These initiatives in residential decision-making support are beginning to show results, with the platform's value extending beyond transaction facilitation to empowering user decisions—a shift that is unlocking new growth avenues for the transaction business.

Home renovation and leasing businesses are deliberately slowing down to pursue higher-quality growth. In the home renovation and furnishing segment, BEKE is proactively adjusting its operating model, reducing investment in low-quality customer acquisition channels, and concentrating on core markets, with delivery quality serving as the foundation for long-term development. City general managers now lead random inspections of renovation sites, promptly rectifying and re-reviewing any issues found, and moving quality control to the forefront of the construction process. BEKE is also enriching its whole-home renovation package offerings across price points and product configurations, strategically placing value display showrooms near signing centers to make solutions more intuitive and comparable.

In the second quarter, the home renovation business generated revenue of RMB 3.2 billion, with a contribution margin of 39.6%—up 7.5 percentage points year-over-year and the highest on record. Meanwhile, the rental business is prioritizing standardized, secure tenancy services as its core competency. During the period, BEKE released the industry's first enterprise standard for residential safety, embedding safety management throughout the entire process from admission checks and delivery re-inspections to in-tenancy patrols.

The "Worry-Free Rental" product is transitioning toward a lighter, lower-risk net-method model, with net-method products now accounting for over 50% of managed units. As of quarter-end, BEKE managed more than 790,000 units, up approximately 34% year-over-year. In the second quarter, the rental services business posted revenue of RMB 4.8 billion, with a contribution margin of 15.3%, up 6.9 percentage points year-over-year, while the owner renewal rate reached approximately 74%, an improvement of about 4 percentage points. Service scale continues to grow, while product mix, profitability, and owner loyalty all show steady improvement.