In recent news reported by Epoch Times on June 16, 2025, E-House (China) Holdings Limited (E-House China) has been experiencing continuous losses for four years in a row, with accumulated losses exceeding 20 billion Chinese Yuan. The company’s debt-to-asset ratio has soared to 479.68%, leading to a severe debt and operational crisis. Analysts believe that the company is facing the possibility of delisting or bankruptcy.
According to the annual financial report of E-House China as of December 31, 2024, the company generated a total revenue of 3.798 billion Yuan in 2024, marking a 14.58% decrease compared to the previous year. The net loss reached 1.273 billion Yuan, expanding by 2.71% compared to the prior year. As reported by China Real Estate News on June 13th, the company has been incurring losses for four consecutive years since 2021, totaling more than 20 billion Yuan. In 2024, the company’s total operating income dropped by more than half compared to the peak in 2019, from 9.095 billion Yuan to 3.798 billion Yuan. The number of employees also witnessed a drastic reduction from 24,218 at the time of the company’s IPO in 2018 to 1,770 by the end of 2024, a workforce cut of over 90%. Additionally, the company’s debt-to-asset ratio surged to a staggering 479.68%, with a current ratio as low as 0.11. Their cash reserves are nearly depleted, with cash and cash equivalents covering only 3.56% of current liabilities, and the operating cash flow has remained negative for the past three years.
The auditing firm of E-House China expressed a rare “no opinion” on the 2024 financial statements. A financial expert explained to the media that such circumstances typically stem from three main reasons: financial statement distortion (such as revenue recognition confusion), severe lack of financial transparency (inadequate disclosure of related-party transactions or major lawsuits), and deep doubts about the company’s ongoing operational capabilities.
A company insider shared on June 11th: “The plummeting business is affecting everything.”
Public records reveal that E-House China is a prominent integrated real estate service provider in China. Since its establishment in 2000, its main business operations have included primary residential sales agency, secondary real estate brokerage, and real estate consultation and information services. From 2004 to 2006, E-House was consecutively named as the largest real estate agency and consulting firm in China for three years, and in 2006, it was recognized as the leading brand of the real estate service industry in China and ranked first in the Top 100 Chinese Real Estate Planning and Agency Comprehensive Strength.
However, this former behemoth of the real estate agency industry has now become a casualty of the industry’s ongoing decline. Its business model deeply connected with major clients such as Evergrande and Vanke had brought substantial profits during the market boom but suffered a fatal blow during the “real estate crisis.”
An anonymous industry observer revealed, “Evergrande once accounted for up to 35% of the revenue, and its default led to approximately 4 billion Yuan becoming bad debts. E-House China failed to timely fully provide for impairment, exposing a serious internal control loophole.” Another major client, real estate giant Vanke, contributed 25.3% of E-House China’s income in 2024 (969 million Yuan).
A senior real estate sales manager in the North China region remarked, “E-House China’s income structure is too singular—over 90% relies on new home sales, lacking diversity such as secondary property business to buffer risks.” Financial data from 2024 showed that primary residential agency service income accounted for only 4.55%. While digital marketing services supported 54.8% of the business income, they also declined due to a shrinkage in real estate clients.
The sales manager emphasized, “This model is essentially a high-stakes gamble with weak risk management. The volatility of new home sales and excessive reliance on top real estate developers equals self-surrendering one’s destiny.” Starting from 2021, following defaults by shareholder clients like Evergrande, E-House China saw a sharp decline in operating revenue, from a profit of 439 million Yuan in 2020 to a huge loss of 12.265 billion Yuan in 2021.
Reports suggest that E-House China’s survival crisis not only exposes flaws in its business model but also serves as a warning to the real estate service industry. An analyst from a renowned real estate research institute in Southern China stated, “E-House China’s predicament has departed from the industry’s overall trend—even entering a period of recovery, their debt crisis continues to worsen. This serves as a wake-up call for real estate service enterprises to diversify clients and avoid single reliance.”
Though E-House China expressed hope for benefiting from a “market revival” in its annual report, China Real Estate News believes that if E-House China fails to transition promptly, this once prominent industry leader may face the fate of delisting or bankruptcy.