E-HOUSE ENT (02048) has released its interim results for the six months ended June 30, 2026. The group recorded revenue of RMB813 million, reflecting a year-on-year decrease of 35.54%. Profit attributable to owners of the company stood at RMB45.245 million, contrasting with a loss of RMB298 million in the corresponding period last year. Earnings per share reached RMB2.59 cents. During the first half of 2026, China's property market showed no clear signs of structural improvement, with new home sales area and real estate investment declining by 11.6% and 18.0% year-on-year, respectively.

Although some cities saw slight price increases, no nationwide reversal of the downward trend has yet emerged. In this challenging environment, the group has remained focused on cost reduction and cash flow management. While a net profit of RMB245.9 million was recorded for the period—largely attributable to gains from the termination of certain variable interest entity arrangements announced earlier in 2026—the more significant achievement was positive cash flow from operating activities, reaching RMB14.5 million. Additionally, all major business units turned profitable, except for the real estate brokerage network services segment where termination procedures have already commenced. This outcome reflects the effectiveness of cost control measures, which will continue to be implemented.

The company has reached a key milestone in its offshore debt restructuring. As previously disclosed, the restructuring is being implemented through Cayman scheme arrangements and Hong Kong scheme arrangements. Creditor meetings for the schemes were duly convened on August 27, 2026, in Hong Kong and the Cayman Islands, where the plans received overwhelming support from scheme creditors. The resolutions were approved by 97.8% of the value and 95.5% of the number of those present and voting, thereby securing the required statutory majorities. The schemes are subject to approval by the High Court of Hong Kong and the Grand Court of the Cayman Islands, with sanction hearings scheduled for September 11, 2026, and October 9, 2026, respectively. The company will continue its relentless efforts to complete the debt restructuring successfully and on schedule.

Beyond effective cost control and debt restructuring, the group remains committed to innovation amid the challenging property market environment. Since 2025, the company has been involved in developing In-depth Intelligent Link, the first vertical AI model and AI-native product ecosystem designed specifically for the real estate industry. Leveraging two decades of experience and expertise accumulated through its industry-leading CRIC system, the platform has already achieved initial market success and recognition. Looking ahead, the company plans to drive closer integration between CRIC and the AI platform, making "AI + Real Estate" the core of its new growth strategy. Through the creation of a new brand, "CRIC • In-depth Intelligent Link," the company is determined to seize new opportunities in the AI era, pursue strategic transformation, and position itself as a leading AI infrastructure and solution provider for China's real estate sector. To adapt to the AI-centric business environment, the group plans to undertake appropriate organizational restructuring to strengthen its capabilities in delivering intelligent products and services in vertical domains while supporting clients through their AI transitions.