Core Insights - I Love My Home Group reported a total housing transaction value (GTV) of approximately 196.2 billion yuan for Q3 2025, representing a year-on-year increase of 5.2% [1] - The company achieved a net profit attributable to shareholders of approximately 42.3 million yuan, a significant year-on-year growth of 398.75% [1] - The company’s net profit excluding non-recurring items reached approximately 54.2 million yuan, up 173.96% year-on-year [1] Brokerage Business Growth - The brokerage business continued to show steady growth, with a GTV of 156.6 billion yuan in the first three quarters, reflecting a year-on-year increase of 5.1% [3] - Market share in key cities like Beijing and Shanghai has steadily improved, with the second-hand housing market showing resilience [3] - The company’s 20-year experience in core cities has contributed to its refined operational system, enhancing its market understanding and responsiveness [3] New Housing Business Performance - Despite a challenging new housing market, the company’s new housing business achieved a GTV of 25.9 billion yuan, growing by 9.3% year-on-year [4] - The growth was supported by effective risk management, increased marketing efforts, and digital investments, including the launch of promotional events [4] - The company has optimized its internal operations to enhance the synergy between new and second-hand housing, introducing cross-regional services to strengthen its competitive edge [4] Future Opportunities - The policy environment is expected to continue supporting the real estate market, with cities likely to introduce more supportive measures [5] - The focus on high-quality development in the real estate sector, as outlined in the 20th National Congress, presents significant opportunities for professional housing service providers [6] - The company aims to leverage its community service network and digital capabilities to expand its business boundaries and meet the growing demand for better living conditions [6]

Financial Data and Key Metrics Changes - In Q2 2025, the total Gross Transaction Value (GTV) was RMB 878.7 billion, representing a year-over-year increase of 4.7% [11] - Revenue reached RMB 26 billion, up 11.3% year-over-year [11] - Gross margin declined by six percentage points year-over-year to 21.9% [11] - GAAP net income was RMB 1.31 billion, falling 31.2% year-over-year [11] - Non-GAAP net income reached RMB 1.82 billion, down 32.4% year-over-year [12] Business Line Data and Key Metrics Changes - Revenue from existing home transaction services was RMB 6.7 billion in Q2, down 8.4% year-over-year [15] - New home GTV reached RMB 255.4 billion, up 8.5% year-over-year [17] - Revenue from new home transactions was RMB 8.6 billion, rising by 8.6% year-over-year [18] - Revenue from home renovation and furniture business reached RMB 4.6 billion, increasing by 13% year-over-year [21] - Revenue from home rental services reached a record high of RMB 5.7 billion in Q2, up 78% year-over-year [24] Market Data and Key Metrics Changes - The total value of housing transactions nationwide was stable overall, but new home sales dropped by 5.2% year-over-year in the first half of 2025 [59] - Existing home transactions rose by 8.3% year-over-year, driven by a 19% increase in the number of transactions [60] - The rental yield reached 2.5% in June, about 40% higher than its lowest point [62] - The number of existing home transactions fell by over 5% month-over-month in July [64] Company Strategy and Development Direction - The company aims to shift its growth focus from scale to efficiency, enhancing operational capabilities while maintaining its agent and store network [35][70] - The strategy includes deeper operational efforts and leveraging AI to improve productivity and service quality [39][72] - The company is committed to an asset-light business model and will not engage in property development [25][52] Management's Comments on Operating Environment and Future Outlook - Management noted that the real estate market is facing challenges due to international trade friction and policy impacts, leading to a slowdown in momentum [8][9] - Future market recovery will depend on the pace of policy implementation and supply-demand balance improvements [64][65] - Management expressed confidence in the company's ability to outperform the market through operational improvements and a diversified portfolio [32][33] Other Important Information - The company has a robust cash liquidity of around RMB 70 billion, allowing for active shareholder returns through share buybacks [31] - The Board approved an increase in the share repurchase program, extending it to August 31, 2028 [32] Q&A Session Summary Question: Overview of the secondary home market in Q2 and future trajectory - Management indicated that the secondary home market saw a significant decline in transactions and prices in Q2, with expectations for continued downward pressure unless policy support is strengthened [57][64] Question: Actions taken to deliver value to investors amid sector downturn - Management highlighted a focus on efficiency and sustainable development, with plans to stabilize store and agent numbers while improving productivity [68][70] Question: Opportunities from new property development models - Management noted that new supply-side policies are pushing for better living quality, which will create opportunities for the company in demand forecasting and pricing strategies [80][81] Question: Key growth drivers in the home renovation and furnishing business - Management stated that operational efficiency improvements and centralized procurement have driven growth in the home renovation segment, with plans for further optimization [88][90]