Ke Holdings Stock Price, News & Analysis

KE Holdings Inc. ("Beike") (NYSE: BEKE; HKEX: 2423) is described as a leading integrated online and offline platform for housing transactions and services in China. The company focuses on building infrastructure and standards that help service providers and customers navigate and complete a wide range of housing-related activities, including existing and new home sales, home rentals, home renovation and furnishing, and other services.

According to company disclosures, KE Holdings owns and operates Lianjia, which it describes as China’s leading real estate brokerage brand and an integral part of the Beike platform. The company cites more than 23 years of operating experience through Lianjia since its inception in 2001, and states that Lianjia’s track record underpins the development of Beike’s infrastructure and standards and supports the growth of the broader platform.

Business scope and platform model

KE Holdings presents itself as a platform business connecting housing consumers with real estate and residential service providers. Its activities span:

• Existing home transactions – services around the sale and purchase of existing residential properties.
• New home transactions – services related to the sale of newly built residential properties, facilitated through connected agents, a dedicated sales team with expertise in new home services, and other sales channels on the Beike platform.
• Home rentals – rental services, including a Carefree Rent model, under which the number of rental units has been a driver of growth in rental revenues.
• Home renovation and furnishing – renovation and furnishing services, including business developed following the acquisition of Shengdu Home Decoration, and further product and delivery capabilities described in company communications.
• Emerging and other services – additional services that contribute to the platform’s revenue mix beyond core housing transactions.

Across these areas, KE Holdings highlights the role of its platform operations, including connected stores and agents, franchise services, and other value-added services. For some transaction flows, revenue is recorded on a commission basis through Lianjia stores, while for transactions served by connected agents and other channels on the Beike platform, revenue is recorded on a net basis from platform, franchise, and value-added services.

Real estate brokerage and Lianjia brand

Within its disclosures, KE Holdings emphasizes the importance of the Lianjia brand to its business. Lianjia operates as a real estate brokerage network in China and is described by the company as a leading brand in this field. The company attributes its ability to build platform infrastructure and standards, and to drive the growth of Beike, to Lianjia’s long operating history and experience in residential brokerage.

Company reports also refer to Lianjia stores and Lianjia agents as distinct from non-Lianjia or connected stores and agents on the platform. This distinction appears in discussions of gross transaction value (GTV), commission revenue, and cost structures, where the company separately identifies transactions and costs associated with Lianjia and those associated with connected agents and stores.

Housing transaction services

KE Holdings’ housing transaction services cover both existing and new homes. Company financial communications describe gross transaction value for existing home transactions and new home transactions, and differentiate between:

• Transactions served by Lianjia stores, where revenue is recorded on a gross commission basis.
• Transactions served by connected agents and other sales channels on the Beike platform, where revenue is recorded on a net basis from platform service, franchise service, and other value-added services.

Within existing home services, the company notes contributions from both sales and rental transaction services. For new home services, it highlights the role of connected agents, a dedicated sales team with new home expertise, and additional channels operating on the Beike platform.

Home renovation and furnishing

KE Holdings reports a home renovation and furnishing business that contributes to its net revenues and costs of revenues. The company attributes growth in this segment to factors such as home renovation orders referred by agents in home transaction services and a larger contribution from furniture and home furnishing sales. It also references product and delivery capabilities in this area and mentions initiatives such as model home showrooms adjacent to contract signing service centers, which are intended to support user trust and convenience.

In its Environmental, Social and Governance (ESG) reporting, KE Holdings describes the development of the “Beike Immersion” intelligent solution for home renovation and furnishing services. This solution is used to support standardized and automatic guidance for construction site inspections, with the stated aim of improving project quality control and enhancing customer experience.

Home rental services

Home rental services form another key part of KE Holdings’ platform. The company reports net revenues and costs associated with home rental services and notes that these costs mainly consist of variable costs. In several quarters, the company attributes strong growth in rental revenues primarily to an increase in the number of rental units under its Carefree Rent model.

Company commentary also indicates that home rental services have been an area of focus for operational efficiency, including the use of AI-driven operational restructuring and differentiated products. In ESG disclosures, KE Holdings mentions smart technologies in home rental services, such as the Elderly Guardian program in Beijing and Shanghai, which uses smart devices to monitor the safety of elderly residents and respond to incidents.

Technology, AI, and platform operations

KE Holdings repeatedly highlights the role of technology and AI in its operations. In management commentary on quarterly results, the company refers to:

• Using AI to empower service providers’ workflows and customer experience in home rental services.
• Deploying intelligent tools on both customer-facing and business-facing sides to enhance customer experience and service efficiency.
• Leveraging AI technology to enhance service capabilities for homes and customers and to support a development phase that emphasizes efficiency.
• Exploring AI-driven operational restructuring in rental services and AI-driven productivity improvements across the platform.

The company also refers to scientific management, platform operations, and ecosystem improvements as part of its approach to housing transactions and residential services.

Corporate governance and ESG focus

In its 2024 ESG report, KE Holdings presents information on corporate governance, service quality, professional development for service providers, technology applications, and low-carbon initiatives. The company states that it incorporates sustainability goals into performance evaluations of senior management and has conducted a double materiality assessment to identify material ESG issues.

Service quality initiatives include platform-wide service commitments for housing transactions, described as “3+3” commitments, and the establishment of a compensation fund to protect consumer rights and support operational security for service providers. For professional development, the company reports tailored training programs for service providers, including extensive training coverage for real estate agents at Beijing Lianjia and the ongoing Erudite Examination program to reinforce training effectiveness.

Low-carbon initiatives mentioned by the company include the Lianjia Green Store Standard, which covers eco-friendly renovations, material recycling, and smart energy control systems for brokerage stores.

Capital markets presence and filings

KE Holdings’ American depositary shares (ADSs), each representing three Class A ordinary shares, trade under the symbol BEKE. The company also lists its shares on the Hong Kong Stock Exchange under the code 2423, as noted in multiple news releases. KE Holdings files annual reports on Form 20-F with the U.S. Securities and Exchange Commission and furnishes current reports on Form 6-K, which include items such as financial results, share repurchase program updates, equity movements, and grants of restricted share units.

The company has disclosed a share repurchase program, including authorizations to repurchase its Class A ordinary shares and ADSs up to a specified U.S. dollar amount, with extensions and upsizing approved by its board of directors and supported by shareholder mandates at annual general meetings. The company also reports that it provides hard copies of its annual report containing audited consolidated financial statements to shareholders and ADS holders upon request.

Scale indicators and platform reach

While specific figures vary by reporting period, KE Holdings’ quarterly financial communications provide indicators of the scale of its operations, including gross transaction value for existing and new home transactions, numbers of stores and active stores, numbers of agents and active agents, and mobile monthly active users on its platform. These metrics are used by the company to illustrate platform expansion, network development of agents and stores, and user engagement with its online channels.

Management commentary links these scale indicators to the company’s strategic focus on what it calls a “One Body, Three Wings” approach, which encompasses housing transaction services, home renovation and furnishing, and home rental services. The company associates this strategy with long-term development, efficiency improvements, and the integration of AI into core business scenarios.

Real estate sector classification

Based on sector information, KE Holdings operates in the real estate and rental and leasing sector, with a specific industry focus on offices of real estate agents and brokers. Its activities, as described in company communications, center on residential real estate transactions and related residential services in China, delivered through a combination of online platform capabilities and offline brokerage and service networks.