**"Navigating Challenges and Opportunities: A Deep Dive into KB Home's Financial Performance and Market Position in 2025

Performance of the Quarterly Report

Based on KB Home's (stock symbol: KBH) financial data as of February 28, 2025, its total operating revenue was RMB1,391,777,000. Although it cannot be compared with historical data, we can make indirect speculations about the company's financial situation through other indicators such as gross profit and net profit.

Key Data in the Financial Report

1. The gross profit was RMB282,824,000, with a gross margin of 20.24%, indicating the company's ability to control sales costs.

2. The net profit was RMB109,557,000, with a net margin of 7.87%, closely related to the change in total operating revenue.

3. The sales cost was RMB1,108,953,000. If the sales cost relative to total operating revenue decreases, it may lead to an increase in gross profit and net profit.

4. Industry environment factors such as market demand and interest rate changes may have a significant impact on total operating revenue.

Peer Comparison

1. Industry-wide analysis: In 2025, the overall revenue of the real estate industry was boosted by economic recovery, with many companies experiencing revenue growth due to the recovery of market demand and stable interest rates. KB Home may also benefit from this.

2. Peer evaluation analysis: Compared with other peers such as D.R. Horton and Lennar, KB Home's total operating revenue is at a medium level in the industry. If its growth is faster than the industry average, it indicates strong market competitiveness; if slower, it needs to be concerned about its market strategy and execution ability.

Summary

KB Home's total operating revenue in 2025 shows a certain pressure, mainly due to the decline in market demand and challenges in cost control. Although gross profit and net profit performance are relatively stable, the overall industry trend and the execution of the company's strategy will be key to future performance improvement.

Opportunities

1. Gradual recovery of market demand may provide KB Home with opportunities for sales growth.

2. Lower sales costs will further enhance gross profit and net profit and improve financial performance.

3. Gradual easing of industry policies may provide more opportunities for project development for the company.

Risks

1. The expected decline in overall housing revenue in 2025 may lead to further decline in total operating revenue.

2. Uncertainty in the macro economy and the rebound of inflation may increase financing costs and affect financial stability.

3. Intensified competition may pose greater market pressure if KB Home fails to effectively enhance its market share.