Exhibit 99.1

KE Holdings Inc. Announces Second Quarter 2026 Unaudited Financial Results

BEIJING, China, August 21, 2026 - KE Holdings Inc. (“Beike” or the “Company”) (NYSE: BEKE; HKEX: 2423), a leading integrated online and offline platform for housing transactions and services, today announced its unaudited financial results for the second quarter ended June 30, 2026.

Business and Financial Highlights for the Second Quarter 2026

¹ GTV for a given period is calculated as the total value of all transactions which the Company facilitated on the Company’s platform and evidenced by signed contracts as of the end of the period, including the value of the existing home transactions, new home transactions, home renovation and furnishing and emerging and other services (excluding home rental services), and including transactions that are contracted but pending closing at the end of the relevant period. For the avoidance of doubt, for transactions that failed to close afterwards, the corresponding GTV represented by these transactions will be deducted accordingly. 

² Adjusted net income (loss) is a non-GAAP financial measure, which is defined as net income (loss), excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, (iii) changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration, (iv) impairment of goodwill, intangible assets and other long-lived assets, (v) impairment of investments, and (vi) tax effects of the above non-GAAP adjustments. Please refer to the section titled “Unaudited reconciliation of GAAP and non-GAAP results” for details. 

³ Based on our accumulated operational experience, we have introduced the operating metrics of number of active stores and number of active agents on our platform, which can better reflect the operational activeness of stores and agents on our platform. 

“Active stores” as of a given date is defined as stores on our platform excluding the stores which (i) have not facilitated any housing transaction during the preceding 60 days, (ii) do not have any agent who has engaged in any critical steps in housing transactions (including but not limited to introducing new properties, attracting new customers and conducting property showings) during the preceding seven days, or (iii) have not been visited by any agent during the preceding 14 days. 

⁴ “Active agents” as of a given date is defined as agents on our platform excluding the agents who (i) delivered notice to leave but have not yet completed the exit procedures, (ii) have not engaged in any critical steps in housing transactions (including but not limited to introducing new properties, attracting new customers and conducting property showings) during the preceding 30 days, or (iii) have not participated in facilitating any housing transaction during the preceding three months. 

⁵ “Mobile monthly active users” or “mobile MAU” are to the sum of (i) the number of accounts that have accessed our platform through our Beike or Lianjia mobile app (with duplication eliminated) at least once during a month, and (ii) the number of Weixin users that have accessed our platform through our Weixin mini Programs at least once during a month. Average mobile MAU for any period is calculated by dividing (i) the sum of the Company’s mobile MAUs for each month of such period, by (ii) the number of months in such period.

Mr. Stanley Yongdong Peng, Chairman of the Board and Chief Executive Officer of Beike, commented, “In the second quarter of 2026, we saw our operating foundation strengthen further, while our organizational transformation began to take deeper root in day-to-day operations. Starting with consumer needs and practical challenges encountered on the front lines, we are further enhancing collaboration among professional service providers, our platform and AI: professional service providers exercise judgment and take accountability; our platform facilitates collaboration and safeguards service delivery; and AI enables professional expertise to be codified into verifiable and reusable organizational capabilities.

Looking ahead, we will remain committed to pursuing quality growth at scale and continue to assess the effectiveness of our transformation across consumer experience, professional service provider development, operating efficiency, unit economics, and replicability across cities and service scenarios, laying a stronger foundation for the Company’s long-term, sustainable growth.”

Mr. Tao Xu, Executive Director and Chief Financial Officer of Beike, added, “In the second quarter, the proactive adjustments we made earlier to our cost structure yielded further results, enabling our resource allocation to better align with the current market environment. Building on this foundation, we continued to enhance operating efficiency with a focus on customer value. The scale of our housing transaction services recovered, while the Company’s profitability further improved. The contribution margins of all our major business lines increased both year-over-year and quarter-over-quarter, driving our gross margin up by 6.7 percentage points year-over-year to 28.6%. Meanwhile, operating expenses decreased by 14.1% year-over-year. Adjusted operating margin and adjusted net income margin reached 14.6% and 13.0%, respectively, both marking their highest levels in three years.

In the second quarter, the Company repurchased approximately US$250 million of its shares and conducted share repurchases in Hong Kong for the first time. Looking ahead, building on our more efficient cost structure, we will further direct resources toward building capabilities that can create greater value for customers, continue to strengthen our operating resilience, and drive long-term sustainable growth.”

Second Quarter 2026 Financial Results

Net Revenues

Net revenues decreased by 5.7% to RMB24.5 billion (US$3.6 billion) in the second quarter of 2026 from RMB26.0 billion in the same period of 2025, primarily attributable to decreased net revenues from home renovation and furnishing and home rental services, which was partially offset by the increase of net revenues from new home and existing home transaction services driven by improved productivity per connected store.

Contribution Margin

The Company also reviews contribution margin to measure segment profitability. The Company defines contribution for each service line as the revenue less the direct compensation to its internal agents and sales professionals, split commission to connected agents and other sales channels for such services, property leasing costs and direct operating costs related to home rental services and direct costs for home renovation and furnishing. The Company defines contribution margin as a percentage of contribution bearing to revenue.

Cost of Revenues

Total cost of revenues decreased by 13.7% to RMB17.5 billion (US$2.6 billion) in the second quarter of 2026 from RMB20.3 billion in the same period of 2025.

Gross Profit

Gross profit increased by 23.1% to RMB7.0 billion (US$1.0 billion) in the second quarter of 2026 from RMB5.7 billion in the same period of 2025. Gross margin increased to 28.6% in the second quarter of 2026 from 21.9% in the same period of 2025, primarily due to higher contribution margins for all main segments.

Income from Operations

Total operating expenses decreased by 14.1% to RMB4.0 billion (US$0.6 billion) in the second quarter of 2026 from RMB4.6 billion in the same period of 2025, primarily due to the Company’s previous cost optimization initiatives.

Income from operations was RMB3,026 million (US$446 million) in the second quarter of 2026, compared to income from operations of RMB1,059 million in the same period of 2025. Operating margin increased to 12.3% in the second quarter of 2026 from 4.1% in the same period of 2025, primarily due to increased gross profit margin and improved operating leverage.

Adjusted income from operations⁶ was RMB3,592 million (US$529 million) in the second quarter of 2026, compared to RMB1,607 million in the same period of 2025. Adjusted operating margin⁷ was 14.6% in the second quarter of 2026, compared to 6.2% in the same period of 2025. Adjusted EBITDA⁸ was RMB4,175 million (US$615 million) in the second quarter of 2026, compared to RMB2,203 million in the same period of 2025.

Net Income

Net income increased by 100.8% to RMB2,624 million (US$387 million) in the second quarter of 2026 from RMB1,307 million in the same period of 2025.

Adjusted net income increased by 74.9% to RMB3,185 million (US$469 million) in the second quarter of 2026, from RMB1,821 million in the same period of 2025.

Net Income attributable to KE Holdings Inc.’s Ordinary Shareholders

Net income attributable to KE Holdings Inc.’s ordinary shareholders was RMB2,623 million (US$387 million) in the second quarter of 2026, compared to RMB1,301 million in the same period of 2025.

⁶ Adjusted income (loss) from operations is a non-GAAP financial measure, which is defined as income (loss) from operations, excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, and (iii) impairment of goodwill, intangible assets and other long-lived assets. Please refer to the section titled “Unaudited reconciliation of GAAP and non-GAAP results” for details.

⁷ Adjusted operating margin is adjusted income (loss) from operations as a percentage of net revenues.

⁸ Adjusted EBITDA is a non-GAAP financial measure, which is defined as net income (loss), excluding (i) income tax expense, (ii) share-based compensation expenses, (iii) amortization of intangible assets, (iv) depreciation of property, plant and equipment, (v) interest income, net, (vi) changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration, (vii) impairment of goodwill, intangible assets and other long-lived assets, and (viii) impairment of investments. Please refer to the section titled “Unaudited reconciliation of GAAP and non-GAAP results”for details.

Adjusted net income attributable to KE Holdings Inc.’s ordinary shareholders⁹ was RMB3,184 million (US$469 million) in the second quarter of 2026, compared to RMB1,815 million in the same period of 2025.

Net Income per ADS

Basic and diluted net income per ADS attributable to KE Holdings Inc.’s ordinary shareholders¹⁰ were RMB2.43 (US$0.36) and RMB2.35 (US$0.35) in the second quarter of 2026, respectively, compared to basic and diluted net income per ADS attributable to KE Holdings Inc.’s ordinary shareholders of RMB1.16 and RMB1.11 in the same period of 2025, respectively.

Adjusted basic and diluted net income per ADS attributable to KE Holdings Inc.’s ordinary shareholders¹¹ were RMB2.95 (US$0.43) and RMB2.85 (US$0.42) in the second quarter of 2026, respectively, compared to RMB1.62 and RMB1.55 in the same period of 2025, respectively.

Cash, Cash Equivalents, Restricted Cash and Short-Term Investments

As of June 30, 2026, the combined balance of the Company’s cash, cash equivalents, restricted cash and short-term investments amounted to RMB56.0 billion (US$8.3 billion).

Share Repurchase Program

As previously disclosed, the Company established a share repurchase program in August 2022 and upsized and extended it in August 2023, August 2024 and August 2025, under which the Company may repurchase up to US$5 billion worth of its Class A ordinary shares and/or ADSs until August 31, 2028, subject to obtaining a general unconditional mandate for the repurchase from the shareholders of the Company at each of the next two annual general meetings to be held in the forthcoming years to continue its share repurchase after the expiry of the existing share repurchase mandate granted by the annual general meeting held on June 12, 2026. As of June 30, 2026, the Company had purchased, in aggregate, approximately 185.4 million ADSs (representing approximately 556.3 million Class A ordinary shares) on the New York Stock Exchange for a consideration of approximately US$2,967.7 million, as well as approximately 4.9 million Class A ordinary shares on the Hong Kong Stock Exchange for a consideration of approximately HK$201.5 million under this share repurchase program since its launch.

⁹ Adjusted net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders is a non-GAAP financial measure, which is defined as net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders, excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, (iii) changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration, (iv) impairment of goodwill, intangible assets and other long-lived assets, (v) impairment of investments, (vi) tax effects of the above non-GAAP adjustments, and (vii) effects of non-GAAP adjustments on net income (loss) attributable to non-controlling interests shareholders. Please refer to the section titled “Unaudited reconciliation of GAAP and non-GAAP results” for details.

¹⁰ ADS refers to American Depositary Share. Each ADS represents three Class A ordinary shares of the Company. Net income (loss) per ADS attributable to KE Holdings Inc.’s ordinary shareholders is net income (loss) attributable to ordinary shareholders divided by weighted average number of ADS outstanding during the periods used in calculating net income (loss) per ADS, basic and diluted.

¹¹ Adjusted net income (loss) per ADS attributable to KE Holdings Inc.’s ordinary shareholders is a non-GAAP financial measure, which is defined as adjusted net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders divided by weighted average number of ADS outstanding during the periods used in calculating adjusted net income (loss) per ADS, basic and diluted. Please refer to the section titled “Unaudited reconciliation of GAAP and non-GAAP results” for details.

Conference Call Information

The Company will hold an earnings conference call at 8:00 A.M. U.S. Eastern Time on Friday, August 21, 2026 (8:00 P.M. Beijing/Hong Kong Time on Friday, August 21, 2026) to discuss the financial results.

For participants who wish to join the conference call using dial-in numbers, please complete online registration using the link provided below at least 20 minutes prior to the scheduled call start time. Dial-in numbers, passcode and unique access PIN would be provided upon registering.

Participant Online Registration:

Chinese Line: https://s1.c-conf.com/diamondpass/10055963-m4ns1a.html

English Simultaneous Interpretation Line (listen-only mode): https://s1.c-conf.com/diamondpass/10055964-md34ad.html

A replay of the conference call will be accessible through August 28, 2026, by dialing the following numbers:

A live and archived webcast of the conference call will also be available at the Company’s investor relations website at https://investors.ke.com.

Exchange Rate

This press release contains translations of certain RMB amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB6.7851 to US$1.00, the noon buying rate in effect on June 30, 2026, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial information contained in this earnings release.

Non-GAAP Financial Measures

The Company uses adjusted income (loss) from operations, adjusted net income (loss), adjusted net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders, adjusted operating margin, adjusted EBITDA and adjusted net income (loss) per ADS attributable to KE Holdings Inc.’s ordinary shareholders, each a non-GAAP financial measure, in evaluating its operating results and formulating its business plan. Beike believes that these non-GAAP financial measures help identify underlying trends in the Company’s business that could otherwise be distorted by the effect of certain expenses that the Company includes in its net income (loss). Beike also believes that these non-GAAP financial measures provide useful information about its results of operations, enhance the overall understanding of its past performance and future prospects and allow for greater visibility with respect to key metrics used by its management in formulating its business plan. A limitation of using these non-GAAP financial measures is that these non-GAAP financial measures exclude share-based compensation expenses that have been, and will continue to be for the foreseeable future, a significant recurring expense in the Company’s business. The Group recognized fair value loss and impairment in relation to its investments in Beihaojia business. As such impairment does not represent a non-recurring item, it has not been excluded when calculating Non-GAAP financial measures.

The presentation of these non-GAAP financial measures should not be considered in isolation or construed as an alternative to gross profit, net income (loss) or any other measure of performance or as an indicator of its operating performance. Investors are encouraged to review these non-GAAP financial measures and the reconciliation to the most directly comparable GAAP measures. The non-GAAP financial measures presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data. Beike encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. Adjusted income (loss) from operations is defined as income (loss) from operations, excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, and (iii) impairment of goodwill, intangible assets and other long-lived assets. Adjusted operating margin is defined as adjusted income (loss) from operations as a percentage of net revenues. Adjusted net income (loss) is defined as net income (loss), excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, (iii) changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration, (iv) impairment of goodwill, intangible assets and other long-lived assets, (v) impairment of investments, and (vi) tax effects of the above non-GAAP adjustments. Adjusted net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders is defined as net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders, excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement, (iii) changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration, (iv) impairment of goodwill, intangible assets and other long-lived assets, (v) impairment of investments, (vi) tax effects of the above non-GAAP adjustments, and (vii) effects of non-GAAP adjustments on net income (loss) attributable to non-controlling interests shareholders. Adjusted EBITDA is defined as net income (loss), excluding (i) income tax expense, (ii) share-based compensation expenses, (iii) amortization of intangible assets, (iv) depreciation of property, plant and equipment, (v) interest income, net, (vi) changes in fair value from long-term investments, loan receivables measured at fair value and contingent consideration, (vii) impairment of goodwill, intangible assets and other long-lived assets, and (viii) impairment of investments. Adjusted net income (loss) per ADS attributable to KE Holdings Inc.’s ordinary shareholders is defined as adjusted net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders divided by weighted average number of ADS outstanding during the periods used in calculating adjusted net income (loss) per ADS, basic and diluted.

Please see the “Unaudited reconciliation of GAAP and non-GAAP results” included in this press release for a full reconciliation of each non-GAAP measure to its respective comparable GAAP measure.

About KE Holdings Inc.

KE Holdings Inc. is a leading integrated online and offline platform for housing transactions and services. The Company is a pioneer in building the infrastructure and standards to reinvent how service providers and customers efficiently navigate and complete housing transactions and services in China, ranging from existing and new home sales, home rentals, to home renovation and furnishing, and other services. The Company owns and operates Lianjia, China’s leading real estate brokerage brand in respect of service quality and an integral part of its Beike platform. With more than 24 years of operating experience through Lianjia since its inception in 2001, the Company believes the success and proven track record of Lianjia pave the way to build the infrastructure and standards and drive the rapid and sustainable growth of Beike.

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar statements. Among other things, the quotations from management in this press release, as well as Beike’s strategic and operational plans, contain forward-looking statements. Beike may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”) and The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about KE Holdings Inc.’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Beike’s goals and strategies; Beike’s future business development, financial condition and results of operations; expected changes in the Company’s revenues, costs or expenditures; Beike’s ability to empower services and facilitate transactions on Beike platform; competition in the industry in which Beike operates; relevant government policies and regulations relating to the industry; Beike’s ability to protect the Company’s systems and infrastructures from cyber-attacks; Beike’s dependence on the integrity of brokerage brands, stores and agents on the Company’s platform; general economic and business conditions in China and globally; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in KE Holdings Inc.’s filings with the SEC and the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release, and KE Holdings Inc. does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For more information, please visit: https://investors.ke.com.

For investor and media inquiries, please contact:

In China:

KE Holdings Inc.

Investor Relations

Siting Li

E-mail: ir@ke.com

Piacente Financial Communications

Jenny Cai

Tel: +86-10-6508-0677

E-mail: ke@tpg-ir.com

In the United States:

Piacente Financial Communications

Brandi Piacente

Tel: +1-212-481-2050

E-mail: ke@tpg-ir.com

Source: KE Holdings Inc.

KE Holdings Inc.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands, except for share, per share data)

KE Holdings Inc.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)

(All amounts in thousands, except for share, per share data)

KE Holdings Inc.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)

(All amounts in thousands, except for share, per share data)

⁽¹⁾ Excluding (i) the Class A ordinary shares issued to the depositary bank for the bulk issuance of ADSs reserved for future issuance upon the exercise or vesting of awards granted under our share incentive plans, and (ii) the Class A ordinary shares repurchased but not cancelled, comprising both the ADSs repurchased on the NYSE and the Class A ordinary shares repurchased on the HKEX.

KE Holdings Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(All amounts in thousands, except for share, per share data, ADS and per ADS data)

KE Holdings Inc.

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KE Holdings Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Continued)

(All amounts in thousands, except for share, per share data, ADS and per ADS data)

KE Holdings Inc.

UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS

(All amounts in thousands, except for share, per share data, ADS and per ADS data)

KE Holdings Inc.

UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS (Continued)

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KE Holdings Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

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KE Holdings Inc.

UNAUDITED SEGMENT CONTRIBUTION MEASURE

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KE Holdings Inc.

UNAUDITED SEGMENT CONTRIBUTION MEASURE (Continued)

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Exhibit 99.2

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

KE Holdings Inc.

貝殼控股有限公司

(A company controlled through weighted voting rights and incorporated in the Cayman Islands with limited liability)

(Stock Code: 2423)

INTERIM RESULTS ANNOUNCEMENT FOR
THE SIX MONTHS ENDED JUNE 30, 2026

KE Holdings Inc. (“Beike” or the “Company”) (NYSE: BEKE and HKEX: 2423), a leading integrated online and offline platform for housing transactions and services, today announced its unaudited financial results for the six months ended June 30, 2026 (the “Reporting Period”), which have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), which are different from the IFRS Accounting Standards.

In this announcement, “we,” “us,” and “our” refer to the Company and where the context otherwise requires, the Group (as defined under the “General Information” section).

BUSINESS REVIEW AND OUTLOOK

Business Review for the Reporting Period

In the first half of 2026, we enhanced operational efficiency with a focus on customer value and optimized resource allocation in response to market conditions, gradually establishing a healthier operating model. The scale of our housing transaction services recovered quarter by quarter, while the Company’s profitability continued to improve. In the first half of the year, the Company’s net revenues were RMB43.4 billion, representing a year-over-year decrease of 12%, primarily due to market conditions, proactive adjustments to the home renovation and furnishing business, as well as an increased proportion of home rental service products for which revenue is recognized on a net basis as service fees following the evolution of the service model. Adjusted net income was RMB4.8 billion, representing a year-over-year increase of 49.2%.

In the second quarter, the Company’s GTV returned to year-over-year growth, increasing by 6.3%, while net revenues from both existing home and new home transaction services increased year-over-year. The benefits of our earlier cost structure optimization became more evident. Together with improvements in operational efficiency and unit economics, the contribution margins of all major business lines increased both year-over-year and quarter-over-quarter, driving the Company’s gross margin up by 6.7 percentage points year-over-year to 28.6%. Meanwhile, operating expenses decreased by 14.1% year-over-year. In the second quarter, the Company’s adjusted income from operations increased by 123.6% year-over-year to RMB3.6 billion, while adjusted net income increased by 74.9% year-over-year to RMB3.2 billion.

At the same time, we continued to build long-term, consumer-centric capabilities. Starting from consumers’ real-life housing decision-making needs, we supported professional service providers in enhancing their judgment and service capabilities through organizational mechanisms, platform capabilities and AI, while codifying validated professional knowledge and service experience into reusable organizational capabilities. We will continue to evaluate these capabilities based on customer experience, service provider efficiency, unit economics and stability at scale, thereby laying the foundation for sustainable long-term growth.

Existing home transaction services

In the first half of 2026, the number of existing home sales facilitated on our platform increased by 18.6% year-over-year, outpacing the market. In particular, in the second quarter, the number of existing home sales facilitated on our platform increased by 24.8% year-over-year, driving an 8.0% year-over-year increase in GTV and a 4.5% year-over-year increase in net revenues from existing home transaction services. Among these, revenues derived from platform services, franchise services and other value-added services increased significantly by 27.8% year-over-year, primarily due to growth in the number of existing home sales facilitated through connected stores and an improvement in the revenue conversion of platform services.

The growth in the number of existing home sales facilitated through connected stores was primarily driven by improved productivity per connected store on the basis of a stable network scale. As of the end of the second quarter, the numbers of active connected stores and active connected agents remained broadly stable year-over-year. Building on the network coverage established previously, we further shifted our operational focus toward improving the efficiency of existing stores and continued to optimize the store mix. Through data analytics and operational tools, we helped store owners identify operational issues, improve management efficiency, enhance property listing and customer operations and product offerings, and deepen cross-store collaboration, thereby driving improved productivity per connected store. In the second quarter, the average number of existing home sales per active connected store increased by 26% year-over-year, while the overall number of existing home sales facilitated through connected stores increased by 29.8% year-over-year during the same period.

For Lianjia , our self-owned brokerage brand, we continued to deepen refined operations and improve organizational and resource allocation efficiency over the past year. In the second quarter, the average number of existing home sales per active Lianjia agent increased by 50% year-over-year, representing a significant improvement in productivity per agent.

In the second quarter, the contribution margin of existing home transaction services reached 46.1%, representing a year-over-year increase of 6.1 percentage points, primarily attributable to the earlier optimization of the cost structure and an improved business mix resulting from the increased contribution of platform service revenues.

New home transaction services

In the first half of 2026, GTV of new home transactions decreased by 17.1% year-over-year due to the overall industry adjustment. In the second quarter, GTV of new home transactions increased by 1.2% year-over-year, returning to year-over-year growth and significantly outperforming the overall market. Net revenues increased by 3.8% year-over-year to RMB8.9 billion, while the contribution margin reached 28.8%, representing a year-over-year increase of 4.4 percentage points.

The above-market performance of the new home transaction services in the second quarter was primarily attributable to broader cooperation coverage of high-quality projects and improved customer conversion efficiency. On the one hand, we strengthened our efforts to identify and collaborate with high-quality and newly launched projects, became involved earlier in their core sales cycles, and improved our coverage and transaction performance among projects with relatively strong transaction activity in the market. On the other hand, starting from consumers’ genuine housing needs, we enhanced our project screening and matching capabilities, helping customers better compare different options and identify projects that better suit their needs, thereby improving transaction conversion efficiency.

Meanwhile, we continued to strengthen payment collection management and risk control. In the second quarter of 2026, accounts receivable turnover days for new home transaction services decreased to 39 days from 51 days in the same quarter last year.

Home renovation and furnishing

In the first half of 2026, we continued to optimize the operating structure of the home renovation and furnishing business by proactively adjusting its operating model, reducing inefficient investments, focusing on core markets, and continuously enhancing the demand-matching capabilities and delivery reliability of our home renovation solutions. During the Reporting Period, net revenues from the home renovation and furnishing business decreased by 26.4% year-over-year to RMB5.5 billion. The profitability of the business continued to improve, with the contribution margin rising to 39.6% in the second quarter, primarily due to lower material costs driven by centralized procurement and refined cost management.

In terms of products and customer reach, we enhanced our integrated home renovation solutions and SKU configurations across different price ranges based on customers’ housing needs and budgets in different cities. We also flexibly configured showrooms according to market scale and customer demand, helping consumers understand and compare different solutions more intuitively while improving showroom operating efficiency.

In terms of delivery, we continued to enhance our standardized construction and quality management systems, strengthened the professional operation of project managers and service providers in key trades, and gradually improved the platform-wide unified selection, evaluation, coordination and dispatching mechanisms. These efforts enhanced construction organization and delivery efficiency while safeguarding delivery quality and customer experience.

Home rental services

As of the end of the second quarter of 2026, the number of rental units under management exceeded 790,000, representing a year-over-year increase of 34%. As the proportion of asset-light Carefree Rent offerings for which revenues are recognized on a net basis increased, net revenues from the business decreased by 8.5% year-over-year to RMB9.8 billion in the first half of the year, while its risk resilience and quality of earnings continued to improve.

In the second quarter, the contribution margin of home rental services was 15.3%, representing a year-over-year increase of 6.9 percentage points, primarily attributable to the continued iteration of Carefree Rent’s service model and improvements in unit economics resulting from optimized operating labor and post-lease service costs. We moved lease renewal management to an earlier stage and proactively provided services around key milestones. In the second quarter, both landlord and tenant renewal rates increased year-over-year, helping stabilize the scale of rental units under management and reduce repeat customer acquisition and tenant turnover-related operating costs.

At the same time, we continued to improve safety standards covering key stages such as property onboarding, pre-leasing preparation and inspections of properties under management. We also strengthened closed-loop management through third-party spot checks and performance-linked mechanisms, reinforcing the baseline for rental safety.

Beihaojia

In the first half of 2026, Beihaojia continued to build capabilities around its C2M (Customer to Manufacturer) model, with the aim of more effectively incorporating genuine and forward-looking consumer demand into real estate developers’ product and operational decisions. We focused on enhancing capabilities in customer demand insights, new home price trend analysis, identification of effective supply and demand in the existing home market, and iteration of customer research and outreach tools. These capabilities were applied across multiple collaborative projects, further building our decision-support capabilities for real estate developers.

Business Outlook

We will continue to uphold prudent capital allocation and strict operating discipline, maintain an efficient and flexible cost and expense structure, and further focus resources on building professional services, organizational mechanisms and technological capabilities that can continuously create value for consumers. We will continue to evaluate the effectiveness of our investments based on customer experience, service quality, service provider efficiency and unit economics, enhancing the Company’s operational resilience across different market environments and supporting the long-term, sustainable development of our businesses.

Over the long term, we will continue to start from consumers’ genuine residential needs and decision-making challenges, helping professional service providers better understand customers, offer professional judgment and assume responsibility for service delivery. The platform will provide support through rules, data and cross-functional collaboration, while AI will help codify validated professional knowledge and service experience into accessible, verifiable and reusable organizational capabilities, enabling more professional service providers to deliver high-quality and trustworthy services to consumers.

SHAREHOLDER RETURNS

We also continued to enhance shareholder returns, optimize capital allocation and improve capital efficiency.

In the first half of 2026, we deployed approximately US$450 million under the Share Repurchase Program (as defined below) to repurchase the Company’s shares on the New York Stock Exchange and the Hong Kong Stock Exchange. From the launch of the Share Repurchase Program in September 2022 through the end of June 2026, we had repurchased an aggregate of approximately US$2.99 billion of the Company’s shares, representing approximately 14.8% of the Company’s total issued shares prior to the launch of the Share Repurchase Program.

MANAGEMENT DISCUSSION AND ANALYSIS

Results of Operation

Net Revenues

Net revenues decreased by 12.0% to RMB43.4 billion for the six months ended June 30, 2026 from RMB49.3 billion in the same period of 2025, primarily attributable to a 4.5% decrease of total GTV to RMB1,645.5 billion for the six months ended June 30, 2026, from RMB1,722.4 billion in the same period of 2025 and the decrease in net revenues from our home renovation and furnishing and home rental business.

Among that, (i) commission revenue decreased by 7.9% to RMB10.1 billion for the six months ended June 30, 2026, from RMB10.9 billion in the same period of 2025, primarily due to a high base effect for GTV of existing home transactions in the same period of 2025, especially in the first quarter of 2025, which decreased by 9.0% to RMB395.3 billion for the six months ended June 30, 2026, from RMB434.5 billion in the same period of 2025; and

(ii) the revenues derived from platform service, franchise service and other value-added services, which are mostly charged to connected stores and agents on the Company’s platform, increased by 16.1% to RMB3.1 billion for the six months ended June 30, 2026, from RMB2.7 billion in the same period of 2025, mainly due to a 5.4% increase of GTV of existing home transactions served by connected agents on the Company’s platform to RMB769.0 billion for the six months ended June 30, 2026, from RMB729.3 billion in the same period of 2025, driven by improved productivity per connected store.

Cost of Revenues

Total cost of revenues decreased by 17.9% to RMB31.9 billion for the six months ended June 30, 2026, from RMB38.8 billion in the same period of 2025.

Gross Profit

Gross profit was RMB11.6 billion for the six months ended June 30, 2026 relatively flat compared with RMB10.5 billion in the same period of 2025. Gross margin was 26.6% for the six months ended June 30, 2026, compared to 21.3% in the same period of 2025. The increase in gross margin was mainly due to the increased contribution margin of all main revenue streams, including: a) the improved contribution margin of home rental services, primarily driven by the increased proportion of high-margin new service offerings with revenues recognized under the net service fee method under the Carefree Rent business and improved operational efficiency, b) the increased contribution margin of net revenues from home renovation and furnishing driven by enhanced supply chain capabilities, c) a higher contribution margin of net revenues from new home transaction services as a result of cost structure optimization driven by refined operations, and d) a higher contribution margin of existing home transaction services, primarily attributable to the decreased fixed personnel costs.

Income from Operations

Total operating expenses decreased by 18.0% to RMB7.3 billion for the six months ended June 30, 2026 from RMB8.9 billion in the same period of 2025, primarily due to the Company’s previous cost optimization initiatives.

Income from operations was RMB4.3 billion for the six months ended June 30, 2026, compared to RMB1.7 billion in the same period of 2025. Operating margin was 9.9% for the six months ended June 30, 2026, compared to 3.3% in the same period of 2025, primarily due to the increased gross profit margin and improved operating leverage.

Adjusted income from operations⁶ was RMB5.3 billion for the six months ended June 30, 2026, compared to RMB2.8 billion in the same period of 2025. Adjusted operating margin⁷ was 12.1% for the six months ended June 30, 2026, compared to 5.6% in the same period of 2025. Adjusted EBITDA⁸ was RMB6.4 billion for the six months ended June 30, 2026, compared to RMB4.0 billion in the same period of 2025.

Net Income

Net income was RMB3.9 billion for the six months ended June 30, 2026, compared to RMB2.2 billion in the same period of 2025.

Adjusted net income was RMB4.8 billion for the six months ended June 30, 2026, compared to RMB3.2 billion in the same period of 2025.

Liquidity and Capital Resources

During the Reporting Period and up to the date of this announcement, we have financed our operating and investing activities through cash flows from operations and cash provided by historical equity and debt financing activities. As of June 30, 2026, the combined balance of our cash, cash equivalents, restricted cash and short-term investments amounted to RMB56.0 billion, compared to RMB55.5 billion as of December 31, 2025. Our cash and cash equivalents primarily consist of cash on hand, demand deposits and highly liquid investments placed with banks with original maturities of less than three months. Our restricted cash are primarily escrow payments collected from property buyers on behalf of and payable to property sellers.

We believe that our current cash, cash equivalents and restricted cash and expected cash provided by operating activities will be sufficient to meet our current and anticipated working capital requirements and capital expenditures for an extended period of time. We may, however, need additional cash resources in the future if we experience changes in business conditions or other developments. We may also need additional cash resources in the future if we identify and wish to pursue opportunities for investment, acquisition, capital expenditure or similar actions.

The following table sets out our cash flows for the periods indicated:

Indebtedness

The following table sets forth a breakdown of our financial indebtedness as of the dates indicated:

Except as disclosed in this announcement, we did not have any material mortgages, charges, debentures, loan capital, debt securities, loans, bank overdrafts or other similar indebtedness, finance lease or hire purchase commitments, liabilities under acceptances (other than normal trade bills), acceptance credits, which are either guaranteed, unguaranteed, secured or unsecured, or guarantees or other contingent liabilities as of June 30, 2026.

Significant Investment and Material Acquisition and Disposal

We did not have any significant investment or material acquisition or disposal of subsidiaries, associates and joint ventures for the six months ended June 30, 2026.

Pledge of Assets

As of June 30, 2026, we pledged land use rights located in Chengdu, Shanghai and Hangzhou with carrying values of RMB2,073 million for certain revolving credit facilities. Other than these land use rights, we have no other material asset pledges.

Future Plans for Material Investments or Capital Asset

We did not have detailed future plans for significant investments or capital assets as of June 30, 2026.

Gearing Ratio

As of June 30, 2026, our gearing ratio (i.e., total liabilities divided by total assets, in percentage) was 41.6% (as of December 31, 2025: 43.0%).

Foreign Exchange Exposure

Substantially all of our revenues and expenses are denominated in RMB. We do not believe that we currently have any significant direct foreign exchange risk. Although our exposure to foreign exchange risks should be limited in general, the value of your investment will be affected by the exchange rate between U.S. dollar and Renminbi.

Historically, the Renminbi has fluctuated against the U.S. dollars at times significantly and unpredictably. The appreciation of the Renminbi against the U.S. dollars was approximately 3.0% for the six months ended June 30, 2026. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the Renminbi and the U.S. dollars in the future.

To the extent that we need to convert U.S. dollars into Renminbi for our operations, appreciation of the Renminbi against the U.S. dollar would have an adverse effect on the Renminbi amounts we receive from the conversion. Conversely, if we decide to convert Renminbi into U.S. dollars for the purpose of making payments for dividends on our Class A ordinary shares of the Company (the “Class A ordinary shares”) or ADSs or for other business purposes, appreciation of the U.S. dollar against the Renminbi would have a negative effect on the U.S. dollar amounts available to us.

Interest Rate Risk

Our exposure to interest rate risk primarily relates to the interest income generated by excess cash and interest expense related to loans. Our short-term and long-term investments are mostly held in interest-bearing time deposits, held-to-maturity debt investments and wealth management products, and our loans carry floating interest rates. We have not been exposed to material risks due to changes in market interest rates, and we have not used any derivative financial instruments to manage our interest risk exposure.

Capital Expenditures