Q3 2020 Ke Holdings Inc Earnings Call
[music].
Hello, Ladies and gentlemen, thank you for standing by for <unk> third quarter true for speech on T. earnings Conference call.
This time all participants are you done, let's say on no debt.
Today's conference call, it's being recorded.
And that was all from the call over to your host.
Mr Lucky child.
I I know what share of the company.
So I had nothing.
I feel pretty good evening good morning, everyone.
Welcome to Crown Holdings, Inc, Oh pretty hard so called on here.
On conference call, the company's financial and operating results well topics in the press release earlier today.
Pete on the companies on our website at <unk>.
W.W. talking about true health care, you don't call.
On todays call, we hope Beecher Omni channel.
Our co founder and Chief Executive Officer, and a mix or culture, our Chief Financial Officer, Mr., Paul will provide an overview of our strategy and a business the balance I'd be tissue or why but they still get help on the company's financial results discussed on their job.
Before we continue I refer you to Congress the public statement in our earnings press release, which applies to this call as we will make forward looking statements.
Please also note that because earnings press release, and todays conference call you quoting discussions about all these GAAP financial information as well as all these non-GAAP financial measures. Please refer who pay cuts patch reduced reach content on a reconciliation also on all of these non-GAAP measures to comparable GAAP from matter.
Lastly, I'd like to otherwise stated all figures mentioned during this conference call I am here.
With that I will now turn the call over to meet our CEO Mr. Stanley Paul. Please go ahead Sir.
On a sense medicine.
Thank you for joining us today I will share his earning calls and on public company. We appreciate having the opportunity Institute on that Steve is on the revenue and to share on the static on how we on doing you continuously from fuel on the machine from transforming housing transactions and services industry in China.
We always hope imposed on strong conviction on the dealers nicely even use is difficult. So that we can achieve long term success. We are committed to leave into the industry and stay on track with pure from hung from customers.
Kilometers as renters on dependence on these things you all aspects.
While we believe given knowledge on how many proposition on two pillars on depending on what the advancement from fuel.
You should.
Continuous development well on the infrastructure, including our operating system.
Do core operating mentor on.
I see and Andy you can sue communities and true platforms and data MPV per dance and solutions.
Sure, they're promote staring foundation and digitalization includes data on transaction process on the same quantity.
True maybe don't need the lever we won't debt.
Best performance moving on.
Operationally and financially in the same quantum leap achieved total around new on 20 point from a billing on beat this repeat gains decreased from 17.9% year over year driven.
Driven by solid growth transaction volume on GTV growth.
From 87 and anything from two point.
Sent to learn punt on phone treating on B, along its head on fancy take rates on okay. From Meanwhile, you know so color on just the net income rich Lin song in hedging on the 50 eight's meeting on B and increasing of cash.
On to 10.6% year over year next let me give you more color into them on there is some business updates firstly, you know sort of corner. We continue to you handling infrastructure on okay from what you see in Q rules and the particles clearly defined goals on their commission on locations accounts.
Social trust viewed on pony because for Vcs, you'd never be nebulous information and yourselves sharing from most trust between participants.
Fosters cross brand and cost on collaboration and accreted creative professional and anywhere from say the true letters to get a Connecticut and then engage on the telephone.
And on the second quarter more than 40.
44, 40 forced on an 800 stores what commodity on the fee per pound from mid 477 sub agents on what.
Pension scheme also comes from we enhance quality over 70% on total existing home transactions were completed sue cost on collaboration while Canarias storms contributed nearly.
Any sense on what you own you did see home listings on on September 30.
We meet with sturdy promoting store squali system on the platform, which taps doodle on.
Trumps business force and agents improved operational efficiency and accounts in the Oh HCM on it.
No that's on a quarter can you 5.7% on storms on terraform achieved a higher day.
A highest they made we.
Well. We are also pleased to have more engines with higher education bank loans joint is transform.
While we expanded on looking to meet community essentially net we also continue to increase online presence through both organic growth and Mackie indicated our average monthly active users on apps and the retention many programs increased by 82.1% year on year too.
For 47.9, meaning in the sort of corner moving to more transactions and videos from online meets our housing dictionary calc color to Kansas City on study three meaning homes, which is over 50% from on the housing stock in China.
On the and so on a corner I will be on our database accumulative three D data on seven meeting homes compared I mean from meaning on the into on the Premier corner on continues due to the utilization on the industry and data collection is the Philippine on remotes.
Next moving to our existing home transaction service business. According to the current research institutes China's overall existing home transaction market grew by 22.66% year over year much of this groups was actually on attributable to the release on pent up demand as well as.
The low base in the second half on to 2019.
Okay from the total TV all of the existing home transactions, which fone hundred 17, six UN since point from.
Then.
Feeding.
On B, so on the sort of corner, we are presenting an increase in income.
Crews from 71.8% year on year.
On the quarter, we launched on several initiatives to obviously my customers buildings, and hence transaction efficiency. From example, we scaled up a lot of online mortgage from say thing.
Business, which makes them from a co sales on contracts from transaction close on some more intuitive on the assistance through our collaboration with leading commercial balance and I'll wait on land mortgage service applications. We moved the entirety on mortgage process online we have on a.
Customers reduce the time between spending on sales contracts and the mortgage interviews.
By 90% lean mode. The other Colby, making pandemic substantially accelerated adoption of our services since people tried to minimize face to face interaction.
In the sort of corner on most of 30% on commercial mortgage loans facilitated but apart on us will transcend so on line mortgage processing services on the.
September one line login process and say its on Baker's Terraform power on 40 is on cities and more than one soundness been debt.
On injuries from switches from Citi.
Collaborating bank. Thanks nationwide I know is another example of the premium package from sellers.
On the supply and demand in the housing market become on it becomes more benefits from either rising demand for quality sources urgent homesales on rail and on track small quantity home listings on facilitates more efficient mentioned sort of quarter premium package from sellers, we expanded on the tantalum on that side.
This guarantee on property sales revenue set in time periods on the Waltons medical so its commitments on the value added services offer true some sellers we believe on it.
Premium service and demonstrate our ability to an average fee I think it did on to drive intelligence machine and sales on the and on the second quarter more than on up to 20000 missing on the premium package from home sellers on agreements were signed up in the.
In Ah cities cities.
Suddenly Kim.
Tim to our new home transaction services, you'll see on a quarter. According to National Bureau on steady instincts. China's overall, new home sales market grew by 21.4% year on year on those flights on developers enhanced we have sales effort, including partnership with brokerage on services amounted to us.
When we raised sales through and cash cycle, we grew our GTB on new home transaction services right 100 on.
5.7% to RMB 420.7 daily silicone on from cuts on to our accounts receivable collection period also improved even on sort of going on doing so on the third quarter. We also on Bobby on serious on measures to further improve customer experience on the Sony to fly on our core.
Competencies.
Norway developers and pioneer the three day free return policy can you homesale true customer to ensure adequate levels of consumer protection. The new home transaction services industry has net buying behind on the consumer verticals, which have you're right. It applies to day free return policies. So long.
The three day agree with from policy on I'll play from on over three sovereign project community by the end of September you more than 79 cities.
70 cities. Meanwhile, fully to developers on the old pump 50 developers in China, how partner with us on the commitments.
We have also on progress on new home waste control mechanisms.
By our database on loss on to the live transaction and then moving data we are able to contain men on a pretty cautious control measures to each developers is projects even to cash from operations I'll customary on banner presented while we achieved improved we are true.
On the lower level and on a confidence to offer a terminated humblest.
Commission on demands on events to our agent Force me as to our continuous answer on Aug amortization on the desalinization I would like to give you on updates on on the technical on innovation join us on a quarter, we for the upgrade our AI assets and Champagne motion to stand.
Guys. Thank you for this growth sense, that's putting the entire look flow. The CLEC is data on social phase, we will fill it back to agent training and product interaction.
Meanwhile, we have from that solid progress in VR on why that assumption being on like a light of mission on application with with lights weighted cost will be reduced to VR camera calculations for rental market in sort of corner in the past that timber on the op revenue showings on clinical or 40% on total online and offline.
Guided tours. In addition, we continue to attract top kinda into joining force belt.
Year to year to year, perhaps on the University of Michigan on victory and top experts in the field on a machine learning machine learning and data monitoring.
Analysis was recently appointed as our Chief scientist and head on technical centers to lead our AI legend in research applications not from the Sunrise assets people spend more time on home. This year, we are seeing people become more focused on better leaving conditions on surveillance pursue quality sums.
As on personalized because billions limit mitigates and proceed housing transactions there is on trend with nice well with on a long long term dedications and our mission of on a mindless those joining from maybe mid to the phenomenal growth on okay. From today, we believe most recent trends from your present.
So in the future as reaffirmed as true on strategically initiatives.
Centering on the conviction on 10 care on the consumer on supporting the service providers. We remain excited on will accrue our growth pass on to our confidence that we can create sustainable value for our housing customers set us from liners and I will play from companies.
Over the long run on this.
With that I would like to turn the call over to our CFO Paul Chute zone.
Moving to a view on the financials. Thank you.
I guess study thanks for joining our.
Okay.
Great Orbi walk with auto can be focused on as a result.
Richard the Gulf on operational and financial growth Inc.
Hello.
On net revenue increased by 17.9% year over year Chew on featuring tape on five.
Speaking of the higher strength.
The rapid growth broken on revenue of between buckets on if you can be growth over 87.2%.
The year to RMB 1.5 treated on.
Along with increased production on the continuous Inc.
Clark our platform Inc.
Correct.
Revenue from a home construction services decreased by 46.9 year over year to.
To RMB 8.8.
Mainly due to a company one on a per se urea increase range it could be opportunistic on conversion to RMB 576.1 in Q3.
Our revenue from the open architecture perfectly Inc.
By 95% year over year to RMB 11.1 period income sorry.
Primarily due to a 100 on the 5.7% your vision for future TV of new home transaction to RMB 400 basis points have been paid in Q3.
Our revenue from your merchant opportunity Inc.
Hi, Andrew on the 15.6% year over year to on basic I'd like to define maybe in Q3 the.
The increase.
Primarily due to the increase of the penetration level of financial services that runs on a healthy traffic true services.
Cost of revenue growth.
From 2.0 debt year over year to on effective pointing to bid on Q3 growth.
Gross profit increased by 49, 41% year over year to RMB 4.4 billion users through growth.
This market was 21.3%.
Compared to 24 operating folks that you've defeated period last year the decrease in growth markets with the many future increased share based competition.
The new home construction, but clearly by nice bolt on acreage the other stuff.
China.
Operating expenses increased by 75 from April healthier.
True RMB 4.3.
General adjusted restrictive as it was RMB 2.5.
Compared to RMB 1.37 period, if the same period last year, mainly due to the increase on.
Share based compensation expense that I don't know.
Okay.
Pick it up.
Sales from the market.
Wanting 1.03 billion.
Compared to RMB 737 weighted interest in Paradise here relative to the increase from private I think on the promotion.
Well from the marketing activities.
Share based compensation expense.
Research on coupon on that one.
On page 789 billion in Q3 from.
Our two on would be 456 cities have been here I think that day period last year, mainly due to the increased share based compensation.
Well from operator from here.
Maybe one day.
Compared to the income from operations of RMB 400 admitted in the same period last year operating margin growth.
The real point for debt.
Compared to 3.3% existing.
Good day period last year.
Primarily due to the increase of share based compensation.
Excluding non cash items, our adjusted income from operations increased by 155.1 day.
True RMB 1.74 billion Inc.
Adjusted operating margin increased to 8.5 to three.
Three from 5.1% in the same period last year.
EBITDA.
522.3 assets.
To RMB 2.25 59.
Now moving Carl work on 75 balance through three compared to RMB 384 bidding in the same period last year, excluding non cash items, our adjusted net income increased by 210.6% year over year to RMB 1.8.
Backlog attributable to Crow holdings be open to share holder with RMB 271, maybe in Q3 compared to RMB 77 million existing period last year.
Net income attributable to create hoping it increase.
Increased by 212.3% year over year to RMB 1.3.
What's the cost opportunity threed dealt within that wall quite yet.
From a holdings, Inc, or the new share holder.
0.3, compared to RMB 2.1 that either from period last year adjusted for diluted net income per debt.
For true Holdings, Inc. Although share holder increased by 762.52.
To RMB, one poised to react.
I would like to the same period last year.
As of September trade certified better total cash cash equivalents restricted cash on the shopping backflip among true RMB 59 points with Baird.
Hi, Charles Force cultural fit between the way that GAAP net revenue to be true RVP pricing point to pay it.
On to RMB 28.2 billion this.
Presenting to you quick follow up from approximately 33.4% to 48.5% year over year.
Although if that coffee power on a per into.
The view.
Situation on the market for PC Richards topic.
Looking ahead.
Moving on Albert infrastructure sector, we average Athree Abilify Trinity industries.
Every culture, Inc. Rick.
Reconstructing on just lying to come on how income section, where well continue to growth.
Diversify our business offerings.
Okay housing growth productivity, we remain strongly committed to our mission Opentable service on the jeopardy on degree shaping to industry, while capturing the tremendous opportunities along with all the parties.
On a country looks at you may already have while we have announced day from patient offering to sell 35.4 moving forward.
Multi talked about offering on before.
Our Investor Relations website.
To conclude our from Katherine Bock wave right now open the call true Carty operator. Please go ahead.
So from maybe.
Ladies and gentlemen will now begin the question and answer session. If you wish to ask a question. Please press star one on your telephone end of April and moving to the Americas.
If you wish to count on liquid assets.
Does that sound and cash.
For the benefit of all participants on today's call. Please limit yourself to one question.
And if you have additional questions. Please press star one again, so we enter the queue.
So if your question is being true it's following it up with it.
Translation.
Thank you.
Again, ladies and gentlemen, you May press Star one quick question.
The first question. We have is from the line from LT channel from Goldman Sachs. Your line is on okay.
On top on I guess on on his hands on shop.
Potential Akiva content ecosystem, if you just continue to that channel.
We'll now go into the eco ships on momentum from TV didn't calculate routine clunky, what kind of on the front end Nielsen Catalina given at the in 17, I capital share shift cancun potentially on the young assets under my thoughts on track commercial fee income so that day or that from just to show you channel.
So you can see why it's teaching them nothing Patrica, Inc.
He shim Kelly and Jeff It depends on the debt or chart you don't net.
Yes from smashed channel senior with high cash accounts on that.
Total on macro from Cowen Joe heel senior research on Stony net job counting on selling cash on hand that kind of share Q cash tissue medical teams from might you know Mitchell from any of the penetration from that kind of how I came on at high single digit number accounts quite simple things can shift a little teeny accounts sneaker.
Sure on the content across the internationally I know, we're taking on a fine.
Thank you Mike on for taking my question and congratulations again on the strongest balance I have two quick questions. Here. One is on the TV per store improvement.
Our F on has been I guess.
Closing out 13.4% of Tpd per store.
Yeah, and just wondering.
What's that number for the connected store is now what are the major drivers for the TV per store improvement at both plants and to come next door side and the second question is now on the new business development.
While we have been talking about the financial businesses being ramping up being the major driver from an ideal partner to TV to understand a bit more in terms of the products on a financial site and assets as we sort of looking at high single digit penetration from a service right now.
So much on long term on attack that you could be thinking about down the road. Thank you.
Okay, Let's go out and therefore, our next door on ratings hospital efficiency.
On and talk about next total starting pitching for fall winter towards a bigger pipe on a couple park.
Fourth year on trauma.
They are on going fishing.
Thanks, Robert Nike assets on.
Hi can you hear.
From force towards.
Okay, there's basically quicker on took a fixed assets.
Under four already on job.
Because the adjusted.
Good luck to the true.
On there I knew deficiency increased from 50%. This is on your first question regarding your second question for we're on.
On the which offer let me talk a financial crisis on particular wishes separately for financial obviously these are short on to meet those true relative to the home visits on how to proceed to completion of Dixie home country.
From an efficiency ratio financial service, Inc, Q3 assets.
Income.
But.
You'll provide while on.
On the crusher greatly increased from 2% to 6.1% to 8.6% you'll see the increase on efficiency rate.
Largely due to the type of improving customer experience.
Cody production will elaborate supply parts of Florida gone on your combination.
So closely aligned to the cost of relief on the walking rigs a while to render from mysteries juices to proactive on line system, which is on mobile front.
For the SEC Richard on renewal leases, so far we are focused on.
Moving to an increasingly gene on have agreed to the top tier from marketing.
At this moment Thermoses growth as the project is on.
Structure on the perfect.
So.
We are doing the percher threes or the growth from Nokia heap leaching, because where we are relative to the revision of the Walker.
Service on that.
The study also featured on also Youre expecting to build up that you got from though helpful recall acquisition.
Yes.
At this moment, we do not have written day sales pressure because of all of the traffic on our behalf what's aware for it.
Books on the cost of delivery on a continuously improve and GAAP circuit.
Okay.
Hi, Thank you very much.
Thank you.
Once again, ladies and gentlemen, you May press Star one for your question.
And keeping it yourself to one question.
And if you have any additional keeps us on I want to answer we enter the queue.
Oh. Thank you for your question is on Chinese needs polypropylene, an English translation net.
Let me have is from boom is anything from.
On T. Michael Your line is now open.
Good luck to make month on thanks for taking my question and congratulation on a very strong quarter.
My first question is on the commission rate. So can you give us some color regarding the commission rate for both existing hold on new homes segments in the next few quarters.
In the third quarter. It seems you're on your home Commission rate.
Has declined sequentially on Saturday so.
What is the reason behind that and.
Whether this will continue in the next quarter and my second question is on your operating efficiency.
It seems your operating expenses, excluding the share based compensation must decreased sequentially.
In the third quarter, so I assumed business, mostly coming from the gym expanded.
No money.
They see that goes into the DNA lie mostly sold Chemeds on comment.
Whether this is going to come within the next few quarters.
So what's going on.
Total haul or Eagle on these quite user growth.
On utility to the gentlemen seem from bench on Elba. When these overheads you go to the true citizen balance, though to meet our tangible book It seems on the on the New York So.
Already you'll see that go to legitimize about China sides on the building from a whole it took a decision to do it on the news from Madonna in Asia.
Asian deal when is it going to figure out you told me on when to use all the good essentially to the Ziggo.
Each on the Codell, because because it's a quarter of our streets, usually going to hold you to the Super Saturday the industries are.
No what I will mention that you can do.
You mean in terms on a day that you should see it.
Okay. Okay. Let me talk about turnover on commission rates for our income Commission rate I tree on this is very simple on how much debt increased the cost of the growth.
For being on the.
The philosophy behind that commission rate, both existing Homesale that service guarantee.
Total operating featuring our take rate for the two comes on higher because infringing or is that more than 10 day soaks frontage on the.
I think the big lots that are on.
So with our range.
Take rate for your home so it's about 2.2 to 2.3 on.
On the new home fixed rate locked into celebrating our Scott relative to your quick on lot together with regard to stabilize the very healthy take rate into South 18 hour QB 281 building on our take rates to pricing on the last year, that's got relatively fixed costs increased to 146.
And our commission rate for New home you from 2.7, what under Utis year by until September.
Two day over could you be from your home sales already 900 of king bearing as our take rate quarter increased to 2.74, so the cost being high return on.
To commodity so normally the commission rates or how it works on.
Fluctuation, but so we are written foresee Inc. This year, all we're going to take reported new homes deal well be stable on 30 to be higher than 2019.
Total operating federal cash taxes for the sharpest compensation. So yeah, it's colder wafer sharply compensation 1.67 baby operating for the cost of cost growth throughout the 455 million because the recall.
Sure the offsets to all were adjusted 12 growth.
Regional like to them.
The key manager on the for profit.
On the previous manager on regional had on also focused on Mark.
Sure.
Struggling on the defeat the 47 net it unfortunately numbers.
Hi, Andrew on the one maybe on for R&D is 284 meeting obvious clarify.
Thats very helpful. Thank you.
Thank you.
Next question, we have assets from the line of even time from.
From your line is open.
Hi, Brian.
Just on a t. when 18 net conceited recently on the accounting on our T., the one day supply and Eugene Nick on on time. So you definitely lumpy I think at some point of weighted cinnamon and channel points on franchise centers it on a.
Consider the Jones day trader shorts regulations on slide two it sounds like Thats. It catches on HYSYS put us on a well at a nickel on buttons on eight accounts you know what the other when T C Fivea Nick.
Adding a union outlook on that just like King and she's sitting where eaten up by essentially archive us on all participate in the share.
Sense on the can do again apart from down at their net based on how.
Total non-GAAP guys just hold on a hiring when it's important and dinos you sounded itself on sort of sponsors that change she joined us on the challenging talent on the initial.
Okay and timing on issue.
Oh My first question on some related to the recent and Thats on sort of Malaysia on.
Internet platforms in China.
Momentum on share with you on field regarding whether at regulation will affect the competitive landscape opaque and whether or not this will affect our future growth potential and our ability to raise commission rate and take rate on a lump that and my second question is regarding the.
Our next year outlook on because this year the pandemic, many post developers and real real estate brokers increased collaboration with Peco and on the demand side favorable credit environment take on strong home purchase demand, but these two factors may not continue next year. So just wondering should we expect meaningful growth slowed down on post Isis.
In home and new home sites into our attorneys on the white.
Any color would be great. Thank you.
Okay, Okay, and then the direct on time.
Okay, well impact so so far dropped crackers, just announcing new regulation.
If you on restricted on cost.
I agree or disagree. This is true survive low detailed patricia on these schemes <unk> on the for lack of guidance on future patient access.
At this moment, where every day.
Sure, it's a drop vibrancy focus on Mike.
You cannot compete.
Which we expect.
Rich rates very high market share for Peco, which at launch for sure computers. So our total growth market. So cheap true to certify truly under our share do a two.
It was operating is on rate fiber is 3%.
Last year, our top on top of EPS almac share on the nightly left.
On the heat this year record 40 over to true up before their growth with caution on our luxurious yields on the 12% to 30% so still about on for true for first two growth. So we are not versions on these big.
Hi, its growth rate watch on a more on it.
On time monarch improves on July.
The regulators on their way Harbor complied degree so all off on IP traffic is particularly.
Baker per watt transparency on the improvement in service quality.
You all were markets. So it's a day.
Non.
Privately.
Yes.
Hi from participants if died on critical.
This is the operator first question on the.
Regarding this although.
Oh, two such a tier one fits well do on writing on that market victory for a bit early to talk about the detail from next year, but the courier side on the National policy is housing for TV.
Like racial for National policy. So we are.
New from total very on.
Our balance Mark on Inc. This market.
Third.
So the volume into the third or fourth brocade from Baidu on writing so worldwide accounts that rate ultimately, though.
Service provider on customer and bring more value to the industry on the per wide comprehensive service to 300 million families in China centric.
Excellent may have on thinking.
Thank you.
The next comes from you'd have assets from the line of.
18 from T.I. season, you May proceed with your question.
I'm going income concertina signatures.
Hi, this is on it but she didn't know if you don't want that means more on either no.
No shame on me Okay.
Looking ahead on that.
Yeah, hi, guys going to be moving.
Yeah, Hi, do you want me on that anything from me on that.
Oh, Yeah go from no share grain season, with some balance sheet. The chemo keen on call. It seems to me too on the to the full force I know how your day excellent on.
Jackie Oh, Gee I keep on going down I.
I think you need things on E.
This is on Q1 out of the company.
Thank you mentioned I think in my question I have two questions here I guess it could the management.
The impact on the new policy on developing on a year from now.
On the coming quarters.
In conclusion, there on the commission on a great question.
Heated competition.
Other competitor like more Wow, okay.
Okay. Okay. Let me answer your question regarding the three regular.
Good day for third wireline will further strength with growing profitability of device.
I will also affect on the property sell to sell assets.
Developer on the on the decision putting pressure on stocking increased collection. This AFUDC about force the title services to sell the new home.
Because as the leader in the Euro distribution markets there are leveraging our global scale on the service.
Relative to see from old Lucky share on how.
Well this is Steve efforts true on low documentary on the Cobank.
Cash you on most future net.
This declaration for the so you're right on with other specific like day 40 on weight.
The transaction character flow provides a buffer for developer to make the necessary adjustments.
But on the matter before or after or do they come true.
Well what is the partner.
For the growth you've effort on how that is true quickly retired.
It has increased and go back on the second question I would be flat, however, steel selling tickets.
Asia adjusted.
Finally on your on mute.
Okay.
Generally what I talked about on massive on a same zone you know on warm again, I kind of joke into on yeah.
Okay, Honey, Jim absolutely, Jason I don't get me on on the TV They don't come from.
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That's fair characteristic that they react day haven't got that severance and that's true.
Okay.
Good day, and we think it is on.
No we don't think that debt.
Okay on.
True areas firstly on the profile still focused on the quality of service that we can provide to that customer and secondly, most importantly, we think we can provide like a service provider.
How those assets.
Quite well continue to focus on that.
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So you know in a they'd have a day.
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Okay. Thanks.
Okay.
Quite a few points firstly on skill.
On the our connection between buyers and sellers on how kind of assets.
Absolutely.
And on.
Uh huh.
Jeremy Akel mobilized on the cow say on how we model from.
Mobile like everyone on the on.
Right now.
Now on the on them.
I.
Pardon me.
Cash back under control.
How we can manage and one on the on that right now.
Lastly.
How about oil.
Yes, Oh.
Most of you.
Our cash that might come from.
Clean get centric SMS from existing customers.
So ill take.
Net debt, they're not cash look at them separately as we have already more than 44.
40000, Oh fourth assets I story.
47.
Hi, Sandy balance agent and how coming in from Kickstart our Kathy.
All right on to find what customers.
On the transaction and also actually net.
I am looking for.
Operating every day, we find policy when you're on South and Eric on this.
How we can bring quality service.
But having customers Oh, we think gardendale area and we are confident that we can work well in this industry and it is still a very large investing.
They say well me on Sunday on TV at home deliveries and we live and die on we don't have to work on that you wanted to get more detail on the issuer Oh, you'll see on Sunday night on your Odyssey at home.
Overall it was given on those when you'll see people on the phone to hear some more we can build on team has on either severe on employees.
Wasting my bargains on either thoughts on as you know no good answer DDMS she's in the audience is in a simple deacon here colleagues here from tier two amendments interim do from accounts. It anything on nothing's really changed Jago piece on the others are sometimes on the logo of Youngstown for those who don't bundle so on hold on.
Who's probably doesn't change on cash and don't see hold on social channel clinical on Jim Good support from the body volume do you see a consumer doesn't change moving from the June.
From a pump with machine going on to for that on line and Nicholson from higher gross revenue from them.
So with that are going on with the Chinese move on cone Jews as you can see going on.
Uhhuh sit on them and just speaking on the motion.
Okay.
No.
Oh yeah.
Yeah, our assay that we watch on that.
Energy I'll hop back on selling on.
On slide five.
One quick on I overlooked.
Thanks, Phil.
Okay.
Oh, yes energy assets.
Efficiency on the head there.
I think that's actually bought assets.
Hi.
Hi, there.
Great and then a low frequency industry. So we think assets I'd.
Customer well.
In the short term, but not in the long term therapy.
Okay and are there.
Magnavox. So we are focused on balance here on the capex upfront that funnel.
Tom why capex on the way down from contract signing on.
As I phone calls from how we focus on our core service joint action.
Not only on the truck side.
So because all our long cut back on low frequency, what Mary Kay debt.
I came back and profit in the industry. We believe we are still confident enough.
And while adding assets.
Good thing from.
Operator, Please go ahead and ask questions.
Yeah. The last question from is from from Nomura. Your line is now open.
Hi, Thank you for taking my questions asked on device and continental a t. weren't hours a day annual extended warranty non do you any harm.
Hey, guys on franchisee hedges so.
Just on that you could see doing something on continually seems on zika and they get she doesn't totally.
As you saw on an income on franchise is on claims and essentially during the day, so cannot be that shut down seems on vegas into retail assets and the young non tissue day, one day scissors on a momentary dollars you're seeing on take a tick.
She also the contribution margins are essentially to Israel shutdown.
Moving to Inc. Seem range industry down on the whole thing Joe is it true.
So on that is still levels on grandsons outdoor easier than because I was going to seriously.
Operating sensitive is that essentially to resilient teekay LNG to Asia and depending on you guys. The commission sharing knowledge I hop on range seen volume will come true.
Range it contributes.
Contribution margin on and got some accounts.
Now what are they are going to use your claims that the patient on the Bulls eye as usually seen day can damages that sandy to OHA.
Say for that zone freeze that doesn't mean that I suspect, you'll see dig ascending non which on the I'll say that is on with.
Based on.
I'm glad you see today, you know you look on high pay so on a.
Pay hodee on royalties this summer.
On so some regarding to my two questions on them or why is that can management share their expectation for the new home brokerage.
Brokerage penetration in coming quarters, and what is the estimate estimated finishing third quarter and follow up questions regarding two day contribution margin if on the new on business and noticed is that true for contribution margin in the quarter. So besides from the change of a channel mix is he also because of several increase ever Commission sharing.
In the quarter and what is the outlook I.
My second question is regarding to the share South Marine is still half the 46 billion cash on hand, So I just wonder what is the rationale behind the average it's unlikely at least now.
Thank you.
Okay. Thank you and you talk about if you recall the brokerage Inc.
You hope to channel. So I try to give you force I want to give you on its true that on the quarter because try not to shifting from the new home purchases.
So what you hope to.
Several years ago is far easier to sell throughs are contributed by result, so before 2015 almost zero operating income.
Hello.
True.
On the market.
[noise], Inc.
Net it's just that relative strength.
Scott could change that the day decrease on supermarket, because we have a loss of more tricky off our new home.
Revenue.
Fourth the contribute by over Tonight for an eight year debt operating capital. So up 14, just on were on margins authentic through on.
From the port of 43% on quality, recognizing Nols there on margin percentages around 18 to true to convey what so this is a company features so even though our total.
Our on a monthly percentage do kind of but the total amount of.
Contribute from market for the new home recovering includes a quarter on quarter on.
No. We also beef up for the from professional football also beef up for the promotional.
Meredith this quarter to further your 154 on tonight's install on other sales channel. So this is before the launch in the back from them for the future.
Oh I see.
Okay on the also.
I want to share its on the purpose of this stuff along just on this.
Because the way you want to.
You know on China housing for its actually the service industry remains on the table.
There are still a long runway flow peco to grow we plan to go to expound on writing treaty, but needs we either.
40%, Inc.
That is on well Keith.
Well we were too.
Okay.
Great all right to use on the strength and all the infrastructure is on the operating and entry into new growth area.
The second 40% for potential strategic opportunities.
Total will both strategic opportunities to strengthen our market leadership position on that.
Lets say they take advantage of reported.
The remaining 20% it will be for general corporate purposes.
Okay.
Thank you.
Thank you.
Our next question from Q.
Yes, <unk> your line is now open.
[laughter] share buyback.
Oh 1 million on Canada.
GAAP James here.
Standards on then link.
I think he can share I was ranging from Oh.
Oh Gee.
Shemwell had on me.
I think on this is Pete I think John on Saturday.
Now, let me get allergies on Salman dig into my follow on to the Lynch.
Sure on them.
Yeah. He founded the introduction on the divestiture.
Hey, nice on down quite a in shop, a simple without woman kids Oh wait they havent.
Good day, she'd balance and the BP I think I do not true that might be if you could nothing negative impacts from Nike now hold on them.
I can go on for Joe you sound a lot will mention though what do you think you know clearly well there so I'm going to take a I can probably be looking has entered the market share.
Ah dashing young.
Sure.
Okay. Thank.
Okay, Great Yaki.
First of all we would like to say after they currently also true is we are very sure. It's a market that doesn't happen. The first thing is that there will be a strong on factors that is healthy.
On this.
Net disease are lumpy from old had to investing to say, where we would like to see Oh six accounts payable.
You are welcome to players.
As a new business model on the new marquee player in this market well Hopper Baker on its Mac and cheese true continues to improve our service quality discover our potential quickly on the consequently motivates our team member on.
Our kids product or your moment for our operations.
We respect all of the competitors I thought very initiative well have Patriots true incorporate professional degree on the facilitate the veteran pool to the customer with a high quality on services.
Our despite though flow.
We don't comment on on her peers performance, there likely will be cool.
We would like to say, we believe our strong online operating infrastructure assets.
Moved up a strong vote for which is very hard to call.
So this model the high subsidy if not a sustainable on the only on track.
Speculate brokers one out papers talking to move on.
Also pay cool well, you'll see on 19 years would be on PC, the 18 different culture of transparency.
We shouldn't share success, they can collaborate chopper uncertainty should I read hot.
It cannot be easily beat to fibrosis modal spoke on the combination of all on traffic on the low part.
And I would like to share some numbers for reference for pay cool on.
Our philosophy for T W golf wear.
Now to only focus on just the competitive equally but there were also on a per site.
The target, we should more over well always on first by the high.
How is that he could hater all over.
New home busy for example that the ISO.
I'd like to share some numbers need to suddenly on Contv wouldn't bake launched over new home contribute 281 basis.
I'll take rates to price expense.
On the last year, our risk compared to keep on quick to play types and all we can pvten crudes from 746 basis.
This year the force nine month, Oh degree already achieved 940 bed.
And our take rates.
Last year it took place on what this year, but your scale 2.74 buckets, the Seattle, where you're putting up into some 1800 17 day last year.
Total net 96 based on that this year in Q3, the force or decreased to 87 day. So this is our because people weren't doing the business.
For the new home security.
Thank you.
Thank you we are now approaching the end of the conference call I will now turn the call over to speakers on todays Mr. Matthew Zhao for closing remarks.
Thank you operator, thank you once again for joining US today, if you have a net product such as pray for your free cash out of this concludes today's call and we look forward to speaking with you again next quarter. Thank you everybody.
Wow.
Thank you, ladies and gentlemen that does conclude our conference for today. Thank you all for participating you may now disconnect.
Thank you.
[laughter].
Well [noise].
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