/PRZWT/The real estate industry is still in a deep adjustment period. As an important part of real estate transactions, the real estate brokerage industry has also been deeply affected. The uncertainty of market fluctuations continues to test the survival and development resilience of enterprises.
Recently, 5i5J, a leading real estate brokerage firm, released its third-quarter financial report. In the first three quarters, it achieved a total housing transaction value (GTV) of approximately 196.2 billion yuan, representing a year-on-year growth of 5.2%. The net profit attributable to the parent company was approximately 42.327 million yuan, representing a year-on-year increase of 398.75%. The non-GAAP net profit attributable to the parent company was approximately 54.2442 million yuan, representing a year-on-year increase of 173.96%. Against the backdrop of overall industry pressure, I Love My Home has achieved a remarkable growth against the trend, which is truly remarkable.
Through the performance data, we can observe the development of 5i5j in recent years. It has not expanded on a large scale but has further focused on the business in core cities and cultivated it meticulously. Judging from public information, it seems that I Love My Home is devoting more energy and resources to the cultivation of its "inner strength" - continuously increasing investment in digitalization construction, the training of brokers, and the improvement of service levels. This meticulous strategy is particularly evident in its core asset management business (Xiangyu).
Outstanding in both scale and efficiency, laying a solid foundation for performance
As the core business of I Love My Home, Xiangyu's business continued to maintain a stable growth trend in the third quarter: By the end of the third quarter, the number of managed properties of Xiangyu's business reached approximately 330,000 units, an increase of about 27,000 units compared to the beginning of the year. Based on the semi-annual report data, the average check-out days of Xiangyu are 8.8 days, which is 0.7 days shorter than the same period in 2024. The rental rate has remained stable at a high level of 95.2% in the industry. Although the revenue of the new product "Xiangyu Preferred" decreased by 17.41% year-on-year in the first half of 2025 due to the use of the "net method" for accounting, if adjusted back to this part of the income, the gross profit margin reached 14.05%, an increase of 2.22 percentage points year-on-year, and the profitability continued to strengthen.
More importantly, the synergy effect formed by Xiangyu and brokerage business can transform rental customers into potential home buyers, and the rental demands of real estate transaction customers can be precisely met. This "rent-sale linkage" model not only reduces the cost of customer acquisition but also builds a sustainable business growth closed loop. In addition, it is worth mentioning that compared with the second-hand brokerage business, Xiangyu is less affected by policy fluctuations and has higher operational stability, which also provides a guarantee for the stability of the company's performance.
Deeply cultivate digitalization and service upgrades to lay a solid foundation for stable development
It is no accident that Xiangyu can still achieve excellent performance in both scale and efficiency during the industry's fluctuating cycle. Rather, it stems from adhering to the "prudent operation" philosophy for over two decades. Even during the period when capital was concentrating on entering the real estate asset management industry, Xiangyu did not blindly follow the trend to expand. Instead, it focused on optimizing the business chain such as management standards, product structure, and post-rental services, and enhanced management efficiency and service levels through digital capability building.
In terms of digital construction, Xiangyu, relying on its extensive database of properties, offers technological services such as VR house viewing and intelligent pricing, and equives the properties with smart devices. The independently developed and operated asset Management System (AMS) has achieved standardization and online processing of national housing source management, financial management, and service processes. This not only enhances operational efficiency and ensures the consistency of service quality but also effectively reduces the marginal cost of business expansion.
In terms of user experience optimization, Xiangyu uses digital means to address the pain points of renting. In response to the demand for two-person commuting rental housing, it employs big data path planning algorithms and, leveraging its rich and diverse housing resources, is the first in the industry to launch the "Two-person Commuting Rental Housing" tool. This significantly shortens the rental decision-making cycle and enhances user satisfaction and efficiency.
In addition, Xiangyu has reached a cooperation with JD Logistics. By leveraging the wide coverage and fast speed of JD's delivery network, it enables the rapid delivery and installation of daily necessities such as furniture and home appliances, reducing users' waiting time and enhancing the convenience of check-in. On the maintenance service side, relying on the community grid delivery circle and intelligent dispatching system built in collaboration with JD Services +, it precisely saves the in-transit time of maintenance personnel, enhances service efficiency, and provides professional and efficient living guarantees for tenants.
Seize the opportunities of high-quality development and consolidate the leading position at the top
According to data from Ipsos Consulting, it is estimated that the domestic residential rental market size will exceed 3 trillion yuan by 2030, with an average annual compound growth rate expected to remain within the range of 5% to 10%.
At the policy level, the state has systematically integrated "promoting high-quality development of the real estate sector" into the framework of "ensuring and improving people's livelihood", and regards it as an important means to steadily advance common prosperity for all the people. This means that the real estate industry is shifting from scale expansion to a new stage of development that focuses on enhancing quality and connotation. For enterprises, the competitive track is shifting from scale, speed and price to a comprehensive competition of product power, technological power and service power. And these are precisely the directions that Xiangyu has consistently adhered to in its steady development over the years, which are highly consistent with the national policy orientation.
The changes in the market demand side also confirm this trend. According to the data from the I Love My Home Research Institute, the proportion of tenants aged 35 to 45 in Beijing has been continuously rising in the third quarter of 2025 over the past three years, reflecting the transformation of residents' living concepts and the improvement of their demands for living quality.
Whether it is the high-quality development trend of the industry under policy guidance or the increasingly diversified housing demands of consumers, China's residential service industry is undergoing profound structural changes. The market concentration has been continuously increasing, and the competitive advantages of leading enterprises have been expanding. This trend is mainly driven by three factors: stricter regulation raising the industry entry threshold, and the gradual withdrawal of unregulated small intermediaries; As consumers' demand for professional services increases, the market share of brand enterprises naturally rises. The scale effect of digital investment gives large enterprises an edge in technology application.
As one of the earliest pioneers in China to provide housing asset management services, Xiangyu has maintained a steady development through the ups and downs of the industry, thanks to its development philosophy of meticulous cultivation and dedicated service. In the new stage of the industry's shift towards high-quality development, the operational efficiency and service quality demonstrated by Xiangyu are not only the key for it to weather the current cycle but also a solid foundation for seizing future opportunities.
As industry competition shifts from scale expansion to quality improvement, Xiangyu's long-term accumulated refined operation capabilities, mature service system and digital advantages are transforming into increasingly obvious competitive advantages, laying the foundation for it to play a more important strategic role in the overall business landscape of I Love My Home.
