Yiju Enterprise Holdings (02048) announced interim results. Profit attributable to shareholders of 45.245 million yuan turned a year-on-year loss into a profit

According to the Zhitong Finance App, Yiju Enterprise Holdings (02048) announced interim results for the six months ended June 30, 2026. The group achieved revenue of 813 million yuan, a year-on-year decrease of 35.54%; profit attributable to company owners was 45.245 million yuan, while a loss of 298 million yuan was recorded in the same period last year; profit per share was 2.59 points.

In the first half of 2026, China's real estate market showed no obvious signs of structural improvement. The sales area of newly built homes and real estate investment decreased by 11.6% and 18.0%, respectively. Despite a slight increase in housing prices in some cities, there are no signs of a reversal of the downward trend across the country.

In this challenging environment, the Group continues to focus on reducing costs and managing cash flow. Although we achieved net profit of $245.9 million for the six months ended June 30, 2026 (mainly due to revenue from announcing the termination of several variable interest entity arrangements earlier in 2026), the more important result was that the cash flow from operating activities was positive, reaching $14.5 million. Furthermore, with the exception of our real estate brokerage network service, which has begun the termination process, all of our major business units have been profitable. This is the result of effective cost control, and we will continue to implement this measure.

The Company has reached an important milestone in restructuring its overseas debt. As disclosed in previous announcements, overseas debt restructuring will be implemented through the Cayman Agreements and Hong Kong Agreements (such plans). A meeting of plan creditors was properly held in Hong Kong and the Cayman Islands on August 27, 2026. At the meeting, the planned creditors overwhelmingly supported the plans. In terms of attendance and voters, the approval votes accounted for 97.8% of the value and 95.5% of the number of people, respectively, so the company was able to obtain the required legal majority for such plans. The plans are subject to approval by the Hong Kong High Court and the Cayman Islands Supreme Court respectively; the Hong Kong Plan Decision Hearing and the Cayman Plan Decision Hearing are scheduled to be held on September 11, 2026 and October 9, 2026, respectively. The Company will continue to work tirelessly to anticipate success and complete the debt restructuring as scheduled.

In addition to effective cost control and debt restructuring, the Group continues to strive to innovate in a challenging real estate industry environment. Since 2025, we have participated in the development of Deep Smart Connect, which is the first vertical AI model and AI native product ecosystem created specifically for the real estate industry. With 20 years of experience and expertise behind our industry-leading Creery systems, DeepSmart Connect has achieved initial success and recognition in the industry. Looking ahead, we plan to promote closer integration between Kerry and Deep Intelligence, making “AI+ Real Estate” the core of our new growth strategy. By building the new brand “Keri Deep Intelligent Connection”, we are determined to seize the new opportunities in the AI era, achieve strategic transformation, and become a leading AI infrastructure and solution supplier for the Chinese real estate industry. In order to adapt to the AI-centered business environment, we plan to carry out appropriate organizational restructuring, strengthen our ability to provide intelligent products and services in vertical fields, and support our customers to successfully complete AI transformation.