E-HOUSE ENT (02048) released its interim results, with a profit attributable to shareholders of 45.245 million yuan, achieving a turnaround from loss to profit compared to the same period last year.

E-HOUSE ENT (02048) announced its interim results for the six months ending June 30, 2026, recording revenue of 813 million yuan, a year-on-year decrease of 35.54%; the profit attributable to shareholders was 45.245 million yuan, compared to a loss of 298 million yuan in the same period last year; earnings per share were 2.59 cents. In the first half of 2026, there were no significant signs of structural improvement in the Chinese real estate market. The sales area of newly built residential properties and real estate investment declined year-on-year by 11.6% and 18.0%, respectively. Although property prices in some cities have slightly risen, there are no signs of a reversal of the downward trend nationwide. In this challenging environment, the Group continued to focus on cost reduction and cash flow management. Although we achieved a net profit of 245.9 million yuan for the six months ending June 30, 2026 (primarily resulting from gains associated with the earlier announced termination of several variable interest entity arrangements), a more significant achievement was that cash flow from operating activities was positive, reaching 14.5 million yuan. In addition, all our major business units achieved profitability, except for our real estate brokerage network services, for which we have begun termination procedures. This reflects the effectiveness of our cost control measures, which we will continue to implement. The Company reached an important milestone in its offshore debt restructuring. As disclosed in prior announcements, the offshore debt restructuring will be implemented through the Cayman scheme and Hong Kong scheme (the Plans). The scheme creditors' meetings were properly held in Hong Kong and the Cayman Islands on August 27, 2026, where the plan creditors overwhelmingly supported the Plans, with votes in favor accounting for 97.8% of the value and 95.5% of the number of attendees and voters. Therefore, the Company secured the required statutory majority for these Plans. The Plans are subject to approval by the High Court of Hong Kong and the Grand Court of the Cayman Islands; the hearing for the Hong Kong scheme vote is scheduled for September 11, 2026, and the hearing for the Cayman scheme vote is set for October 9, 2026. The Company will continue its unremitting efforts and anticipates successfully completing the debt restructuring on schedule. In addition to effective cost control and debt restructuring, the Group remains committed to innovation amid the challenging real estate industry environment. Since 2025, we have been involved in the development of Deep Smart Link, the first vertical AI model and AI-native product ecosystem specifically designed for the real estate industry. With twenty years of accumulated experience and expertise behind our industry-leading Cric system, Deep Smart Link has achieved initial success and recognition within the industry. Looking ahead, we plan to promote closer integration between Cric and Deep Smart Link, making "AI + Real Estate" the core of our new growth strategy. By establishing the new brand "Cric Deep Smart Link," we are determined to seize new opportunities in the AI era and achieve strategic transformation, striving to become a leading AI infrastructure and solutions provider in the Chinese real estate industry. To adapt to an AI-driven business environment, we plan to undertake appropriate organizational restructuring to enhance our capabilities in providing intelligent products and services in vertical fields and support our clients in successfully completing their AI transformations.