5i5j(SZ:000560)2025-08-28 15:15Summary of the Conference Call for "I Love My Home" (2025) Company Overview - Company: I Love My Home - Industry: Real Estate Brokerage and Asset Management Key Financial Performance - Brokerage Business: Revenue increased by 13.57% year-on-year to 2 billion CNY, with a gross margin of 22.82%, up by 0.13 percentage points, driven by growth in existing home transactions in core cities and a slight increase in commission rates to 1.6%-1.7% [2][4] - Asset Management: Managed scale grew by 9% to 319,000 units, with an occupancy rate of 95.2%. Rental GDP slightly increased by 0.2% to 8.62 billion CNY. The new product "Encounter Preferred" saw a revenue decline of 17.4% but improved gross margin to 14.05% [2][5] - New Home Business: Revenue rose by 24% to 469 million CNY, with a gross margin of 3.42%, up by 0.06 percentage points. GDP increased by 32.6% to 18.3 billion CNY, benefiting from strategic adjustments and market stabilization [2][5] - Net Profit: The net profit attributable to shareholders was approximately 40 million CNY, a 30% increase year-on-year. The non-recurring net profit was close to 50 million CNY, over 200% growth, mainly due to the recovery in the second-hand housing market and cost control [2][6] Business Segment Performance - Brokerage Business: Achieved revenue of 2 billion CNY, with a gross margin of 22.82%. Core city transactions maintained double-digit growth, and commission rates slightly increased [4][12] - Asset Management: Management scale reached 319,000 units, with an average rental period reduced to 8.8 days and an occupancy rate of 95.2% [5] - New Home Business: Revenue growth of 24% and significant GDP growth of 32.6% [5][12] Market and Industry Insights - Market Recovery: The company believes the most challenging period has passed, with expectations for continued growth in 2025 driven by the recovery in the second-hand housing market, particularly in first-tier cities [7] - New Home Market: Despite an overall decline in the new home market, the company achieved over 30% GDP growth by focusing on risk control and efficiency improvements [8] - Transaction Volume: The company expects double-digit growth in transaction volume for 2025, with price trends dependent on future policy effects and market performance [2][13] Strategic Adjustments - New Product "Encounter Preferred": This product uses a net income recognition method, reducing risk exposure and improving profitability through management fees paid by owners [22][23] - Expansion Strategy: The company shifted from a conservative to an expansion strategy in the new home business, with significant growth in revenue and a focus on diverse project participation [21] Future Outlook - Performance Expectations: The company anticipates better performance in the second half of 2025 compared to the first half, with expectations for improved operational performance and reduced non-operating factors [26] - Market Conditions: The overall market is expected to stabilize with potential policy adjustments, including interest rate cuts, to stimulate demand [15][18] Additional Insights - Commission Rates: The average commission rate for buying and selling business was between 1.6% and 1.7%, with a notable contribution from Beijing [10][11] - Impact of Policy Changes: Recent policy changes in Beijing and Shanghai have had limited effects, with marginal improvements in transaction volume expected [15][16] This summary encapsulates the key points from the conference call, highlighting the company's performance, strategic adjustments, and market outlook.