E-House (China) Enterprise Holdings Limited (E-House China) reported a turnaround to a RMB245.95 million interim profit for the six months ended 30 June 2026, versus a RMB304.83 million loss a year earlier. The swing was driven chiefly by a RMB443.29 million gain from terminating certain VIE arrangements and disciplined cost reduction.
Revenue declined 35.5 % year-on-year to RMB813.08 million, reflecting broad weakness across all business lines—most notably a 99.2 % plunge in real-estate brokerage network services to just RMB1.43 million as the company moves to exit the segment. Digital marketing revenue fell 18.4 % to RMB694.46 million, while primary-market agency fees dropped 52.5 % to RMB32.56 million. Data and consulting revenue contracted 48.7 % to RMB74.71 million.
Cost measures were evident: staff costs were cut 53.3 % to RMB94.36 million and advertising and promotion expense fell 17.0 % to RMB607.11 million. Nevertheless, operating loss widened to RMB163.30 million (operating loss margin: 20.1 %), reflecting the sharp revenue contraction and a RMB105.97 million expected-credit-loss charge.
Positive operating cash flow of RMB14.50 million contrasted with a RMB8.33 billion net liability position and a 423.2 % gearing ratio. The group remains a going-concern risk, but management cites four mitigating actions: completing offshore debt restructuring, ongoing cost controls, a potential sale of Tangchao Grand Hotel (carrying amount RMB374.20 million), and 12-month liquidity planning.
Debt restructuring advanced materially: at creditor meetings on 27 August 2026, 97.8 % by value and 95.5 % by number voted for parallel Hong Kong and Cayman schemes. Court sanction hearings are set for 11 September and 9 October 2026, respectively.
Strategic pivot: E-House China is integrating its CRIC real-estate database with “Deeplink,” a vertical AI model launched in 2025, positioning “AI + Real Estate” as its core growth strategy. Organisational realignment to support the AI focus is planned.
Balance sheet highlights as of 30 June 2026: • Cash and cash equivalents: RMB162.34 million (31 Dec 2025: RMB186.65 million). • Current borrowings: RMB173.00 million; other current borrowings: RMB4.07 billion. • Net current liabilities: RMB9.10 billion; net liabilities: RMB8.35 billion.
Capital expenditure was minimal at RMB0.07 million. No interim dividend was declared.
Governance update: Executive Director Dr. Ding Zuyu will resign effective 31 August 2026 to pursue other commitments. Independent auditor Zhonghui Anda CPA Limited issued an unmodified review conclusion but highlighted a material uncertainty related to going concern.
E-House China’s board reiterates commitment to concluding the debt restructuring and pursuing its AI-driven transformation while maintaining stringent cost controls.