KE Holdings Inc. (BEKE) experienced a significant pre-market plunge of 5.73% on Monday. The sharp decline followed the release of the company's annual report, which revealed substantial pressure on its core business and reignited controversy over executive compensation.

The company's financial results for the fourth quarter of 2025 showed severe deterioration, with revenue falling 28.71% and net profit plummeting 84.95% year-over-year. For the full year 2025, net profit dropped 26.65% despite only marginal revenue growth, highlighting ongoing strain in the real estate transaction sector. Revenue from existing home sales fell 11.3%, while new home sales revenue declined 9.1%.

Investor sentiment was further impacted by the disclosure of 1.904 billion yuan in stock-based compensation, continuing a pattern of substantial executive pay packages for CEO Peng Yongdong and co-founder Shan Yigang that has drawn public criticism. The company also reported a 5% decline in total platform transaction value and a workforce reduction of nearly 16,000 employees as part of cost optimization measures.