Beike Finance: Restructured mortgage loans with an annualized rate of 36.5%, but financial business revenue plummeted by 34%

We all know that the core functions of the Shell Find Housing app are buying, selling, and renting homes, but many people may not have noticed that it also hides a “debt resolution” loan business with an annualized rate of 36.5%. At the same time, Shell’s latest financial report shows that its emerging business revenue, including finance, has sharply fallen by 34.56% year over year. From high-interest bridge loans to license tightening, and then to a transformation into a helping-loan model—what exactly happened to Shell’s financial business?

Recently, Kai Jia Finance noticed that on the Shell Find Housing app homepage service, there is “Financial Services” (slide the service menu to the second column). After entering the Financial Services page, it is found that the main product is “Debt Resolution.” The editor attempted to generate a personalized financial plan and found that borrowing 500,000 yuan has an actual borrowing period of 12 days (the flat fee rate is 1.2%, and no overdue occurs), with an estimated fee of 6,000 yuan.

Based on this calculation, the annualized interest rate of Shell Find Housing’s debt resolution loan is as high as 36.5% (with a year calculated as 365 days).

In fact, Shell’s 36.5% debt resolution rate is not a one-off case. According to a June 2025 investigation report by Cailian News Agency, the average monthly interest rate for short-term bridge financing in first-tier cities is around 3%, which corresponds to an annualized rate of about 36%. In second- and third-tier cities, because the level of competition is lower than in first-tier cities, the monthly rate for such business may even exceed 3%, reaching an annualized level of around 40%. Shell’s flat fee model, with an annualized rate of 36.5%, is basically at the upper limit of the industry’s reasonable range.

But industry insiders generally believe that the cost of bridge loans is significantly higher than that of ordinary bank loans—ordinary corporate operating loans typically have an annualized interest rate of 4%-8%, while bridge loans can cost 5 to 10 times more than ordinary loans due to being “short-term, fast, and high-risk.”

In addition to the debt resolution loan business, there is also a borrowing business in Shell Find Housing → My → Wallet. Kai Jia Finance noted that Shell Find Housing’s borrowing products are divided into “Borrowing Picks” and “Strictly Selected Borrowing.” Among them, the strictly selected borrowing has an annualized interest rate of 3.60%-24.00%, and partner institutions include: Du Xiaoman, Ningyin Consumer Finance, and Jingyin Rong.

For Borrowing Picks, Zhaolian Finance—Good Period Loan—has an annualized interest rate starting from 3.18%; Qiyi Rong—Home Resistance Loan—has an annualized interest rate starting from 2.8%; Ningbo Bank—Ninglai Hua—has an annualized interest rate starting from 3%; and Jianxin Consumer Finance—Fudai Loan—has an annualized interest rate starting from 5.68%.

Financial Revenue Plunges by 34.56%

Shell’s financial services segment is facing severe challenges. According to Shell Holdings’ 2025 annual report disclosures, in Q4 2025, Shell achieved net revenue of 22.2 billion yuan, down 28.7% year over year, net profit was 82 million yuan, a sharp drop of 85.6% compared with 570 million yuan in the same period of 2024. Looking at the full year, Shell’s net revenue was 94.6 billion yuan, up only 1.2% year over year, while net profit was 2.991 billion yuan, down 26.7% year over year.

More notably, the net revenue of the “Emerging Business and Others” segment, which includes financial services, fell sharply from 2.5 billion yuan in 2024 to 1.636 billion yuan in 2025, down 34.56%. The profit contribution also fell from 2.149 billion yuan to 1.242 billion yuan, with a year-over-year decline of 42.41%. In its financial report, Shell explained that the company provides financial guarantees for certain financial cooperation partners or individual lenders through subsidiaries. In the event that borrowers default, the company is responsible for compensating lenders for principal and interest payments, essentially bearing the responsibility for credit-risk guarantees. In 2025, Shell expects to recognize net credit loss provisions of 134 million yuan.

The Past and Present of Shell Finance

Shell’s ambitions in finance have been long in the making. As one of the first participants in China’s internet finance industry, Shell Holdings leveraged natural residential scenarios and massive transaction data to lay out its financial business early. Shell Finance began with Lianjia Finance, established in 2006, and in March 2017 it formally became independently operated, focusing on financial needs in residential scenarios. Its predecessor, the P2P platform Lianjia Wealth Management (launched in 2014 and later renamed Lianlian Finance), covered 13 cities and regions across the country within two years, with cumulative financing of nearly 30 billion yuan. However, affected by the industry as a whole, it previously fell into risks such as fund pool issues, self-guarantees, and high-leverage loan risks. Another product, “LiFang Tong,” also became embroiled in controversies such as unclear use of funds.

At present, Shell Finance’s official website shows that the company has entered 103 cities and regions, with cumulative service to more than 1.65 million users. Qichacha shows that the operator of Shell Finance is Beike Jinke Holdings (Beijing) Co., Ltd., with a paid-in capital of 870 million yuan. The sole shareholder is Beike Finance Holdings (Hong Kong) Limited, registered in Hong Kong. The legal representative is Wei Yong, who previously served as Vice President and CFO of the Lianjia Group, as well as President of the Financial Business Division.

License Tightening to 6 Licenses

Shell Finance has obtained 6 financial licenses through Beike Jinke Holdings and Beijing Yiju Taihe Technology Co., Ltd. (Beijing Lianjia Real Estate Brokerage Co., Ltd.). These include Beijing Shell Microloan Co., Ltd., Beijing LiFang Tong Payment Technology Co., Ltd., Beijing Zhongrongxin Financing Guarantee Co., Ltd., Zhongjia Guotai Commercial Factoring (Shenzhen) Co., Ltd., Shenzhen Shell Financing Guarantee Co., Ltd., and Beijing Anli Insurance Brokerage Co., Ltd.

It is worth noting that Shell Finance previously also held several other financial licenses. Among them, Shanghai Shell Microloan Co., Ltd. was revoked in December 2020 due to regulatory policy impacts. Shell (Tianjin) Financial Leasing Co., Ltd. was revoked in December 2021. Beijing Shell Insurance Brokerage Co., Ltd. has also been deregistered. The shift from license expansion to being forced to contract reflects the compliance pains Shell Finance has faced under a heavily regulated environment.

Transformation to Survive via a Helping-Loan Model

Faced with the predicament of a large drop in financial segment revenue, Shell is actively adjusting its business direction. It is reported that Shell has currently laid out businesses such as helping loans and home mortgage loans, trying to expand its financial footprint through a light-asset model. In 2025, Shell signed strategic cooperation agreements with multiple large financial institutions, including China Merchants Bank, CITIC Bank, Bank of China, and Industrial and Commercial Bank of China. The cooperation covers multiple areas including non-housing consumption loans, home improvement installment plans, and personal mortgage loans.

In its 2025 financial report, Shell stated that it will provide financial guarantees through subsidiaries for some financial cooperation partners or individual lenders. This model is, in essence, a credit-enhancement arrangement within helping-loan operations—Shell provides traffic and customer access to financial institutions, while also bearing part of the credit risk.

From the P2P era of Lianjia Wealth Management to today’s layout of helping loans and home mortgage loans, Shell’s financial business has gone through a complete cycle—from aggressive expansion to passive contraction, and then to seeking transformation. In the residential-scenario finance track, Shell has natural advantages in transaction data and customer entry points, but how to convert these advantages into sustainable profit growth within a compliant framework is still a mandatory question facing Shell. Whether the financial segment’s revenue can stop falling and rebound in 2026 is something the market is watching closely.

Source: Kai Jia Finance

Disclaimer: This article is for knowledge sharing only and aims to convey more information! It does not constitute any investment advice. Any person who makes investment decisions based on this does so at their own risk.