Aug 21, 2026 earnings call — Profit rise and consumer-centric AI transformation
Non-GAAP net income rose 74.9% year-over-year to RMB 3.185 billion while GTV increased 6.3% year-over-year.
Revenue $3.6B (est $3.6B) · EPS $0.42 (est $0.31)
Key quotes
"This combination of gross margin expansion and a lower operating expenses fueled our profit growth."
"AI organizes data, while human assesses the client stage and needs, the agent receives fully profiled clients, and because the client managers are not paid per transaction, they remain purely objective."
"GTV reached RMB 629.89 billion, up 8% year-over-year and 17.9% quarter-over-quarter."
Analyst Q&A 5
What company can control in weak market
Q (Timothy Zhao · Goldman Sachs): He asked what controllable levers the company has for Q3 and the full year given market uncertainty.
A: Management said the housing market shows a structural recovery but is polarized across cities and price segments. They will focus on three areas: capture structural market opportunities, keep financial discipline and flexible resource allocation, and prioritize cash flow and a solid balance sheet.
"On the revenue side, better decision support will help us win more customers." — Stanley Peng (CEO·CHAIR)
Drivers and sustainability of profit jump
Q (John Lam · UBS): He asked for a breakdown of what drove profit outpacing revenue, and whether those improvements are sustainable.
A: Management said Q2 profit improvement came mainly from higher contribution margins in core businesses and lower operating expenses. They cited three drivers: a lower cost baseline from store and agent optimization, improved operating efficiency and conversion, and better unit economics in new businesses; the lower baseline supports profit under a neutral market and increases upside and downside protection.
"In Q2, the profit improvements were mainly driven by higher contribution margins across the core business and the lower operating expenses." — Tao Xu (CFO)
Source of existing-home margin gains
Q (Xiaodan Zhang · CICC): She asked how much of existing-home GTV and margin gains came from market recovery versus company operations, and what metrics show the operating advantage.
A: Management said market recovery provided a foundation, but the operating alpha came from higher unit productivity in a stable connected-store network and better conversion of platform services into revenue. They pointed to metrics: existing-home GTV grew 8% year-on-year, transaction volume grew nearly 25% year-on-year, connected store transaction volume grew nearly 30% year-on-year, average transaction per active connected store rose 26%, non-Lianjia platform service revenue grew 27.8% year-on-year, and existing-home contribution margin rose 6.1 percentage points to 46.1%.
"The more direct alpha source was higher unit productivity in our connected store network." — Stanley Peng (CEO·CHAIR)
What drove new-home improvement
Q (Alvin Huang · CLSA): He asked what drove the Q2 new-home alpha, which capabilities create sustainable value, and how they balance growth, margins, collections, and developer credit risk.
A: Management said Q2 new-home GTV grew 1.2% year-on-year, driven by better coverage of high-quality projects and higher conversion efficiency. They are building three capabilities: earlier consumer insights and matching, translating product value into comparable decision metrics, and end-to-end project operating capacity; they will validate and tailor services before scaling and manage payment terms and developer credit risk prudently.
"In this backdrop, our Q2 new home GTV grew by 1.2% year-on-year, driven mainly by improved coverage of high-quality projects and higher conversion efficiency." — Tao Xu (CFO)
Home renovation decline and Carefree Rent margins
Q (Speaker 7 · CITIC): He asked why home renovation revenue declined, whether adjustments are complete and when revenue will recover, how they balance scale/margin/quality, and whether Carefree Rent margin gains are sustainable.
A: For renovation, management said revenue fell because they exited inefficient cities and stores and because fewer new-home deliveries reduced demand; these proactive adjustments are largely complete and margins improved from centralized procurement, higher service provider productivity, and store cost optimization. For Carefree Rent, units under management rose to less than 790,000, revenue was around RMB 4.83 billion with a 15.3% contribution margin (up 6.9 percentage points); sustainability requires lower churn, higher renewals and efficiency gains, so they will focus on stabilizing the portfolio, improving per-unit efficiency, and offering more asset-light products.
"On Carefree Rent, the units under management gradually grow steadily to less than 790,000, up 34% year-over-year." — Tao Xu (CFO)