Q4 2020 Ke Holdings Inc Earnings Call
[music].
Hello, Ladies and gentlemen, and thank you first time buyer for it to eat Holdings, Inc, fourth quarter and fiscal year, 2020 earnings Conference call. At this time all participants are in a listen only mode. Today's conference call is being recorded I will now turn the call over to your host.
Mr. Matthew Zhao IR director of the company. Please go ahead Matthew.
Thank you operator, good evening and good morning, everyone. Welcome to Ko Holdings, Inc. I'll pay cause force called her and a physical year 2020 earnings conference call.
So the company's financial and operating results.
It was published in the press release earlier today and a poll.
On the company's IR website, www dot and western Dodge Cadel call.
On today's call we have Mr. Stanley you don't hope, our co founder and Chief Executive Officer and to meet her call shoot our Chief Financial Officer.
These are pulling and we'll provide an overview of our strategies and a business day vitamins and it means a shoe will provide additional details on the company's financial results and discuss our financial outlook.
Before we continue I refer you to our Safe Harbor statement and our earnings press release, which apply to these calls and.
We will make forward looking statements.
Please also know that because earnings press release and this conference call include discussions of all of these GAAP financial information as well as unaudited non-GAAP financial measures.
Please refer to the company's press release, which contains a reconciliation and all day to non-GAAP measures.
Comparable GAAP measures.
Lastly, unless otherwise stated all figures mentioned during this conference call are in renminbi.
With that I'll now turn the call over to our CEO. Mr. Stanley poll. Please go ahead Sir.
Thank you and meso.
Hello, everyone and thank you for joining us today.
Total fourth quarter, and our fiscal year 2020 volume conference call.
Cute exceptional growth in 2020 closing the year with strong first quarter operational and financial results and messy with scale operating efficiency and the quality of services combined with our strong data work and stocks have created.
<unk> on a self reinforcing virtuous cycle is the draw for.
For full year's CTV to increase from 64, 5% to reach a historical high of $3 five trillion RMB and help us solidify our leadership position and the largest housing transaction and the services.
From and China, and the second largest commerce platform across all industries in China, 2020, MX and the 19th anniversary Oh, Lynn just operations and a 30 year since their peak platforms inception, the ground, we have covered over the past and yours.
And as well and outstanding results in 2020, how providing for the formation of our belief that our past we are taking and doing the right thing even if it is difficult right past. It also brings us closer and closer to our vision of providing comprehensive.
And this past year housing and services to 300 million families in China I would now like to provide you with a close closer look at exactly what we accomplished over the past year.
Looking back 2020, it was a challenging year for our business and for the world facing.
And for the COVID-19 pandemic, we worked hand in hand, with the Canadian brands stores agents developers and other playful and participants to overcome this tremendous a mistake host and emerged stronger.
We carry out a series of measures to have our own and are connected.
And the aging position during this difficult period. This included three levers timely payments supporting brand owners and install owners to ensure their agents continue to be paid any syndrome with offline activities certainly hampered by the pandemic.
Net promoter and.
Agent training online and via our property assuring and online property sales when the pandemic just broke out this initiatives supported agent capabilities to continue to push forward on line.
Lockheed sales opportunities and.
We've out the inventory or potential buyers, Jordan and appeal it and the impacts from COVID-19 started to ease in China. The sales performance of Canadian stores and the AD units on our platform recover rapidly demonstrating the Senate and the value of our platform. This period, our share of adversity enhanced.
Bill trusts to brand owners stop nurse and the edges and a big for platform while.
And incur contributed to.
Accelerated momentum and improve operational efficiencies in 2020, we focused only its pending the scale of our AC network with a quality growth.
The total.
And for OCA and that his stores grew by 25 per 1% year over year, reaching 46, nine and solve it by the end of 2020, among which over 3% over stores have any OTT, the 15 million RMB or more which we believe is adequate levels to support sustainable growth.
Total now of the stores compare to only 19% in 2019. The total number of engines on the Big company from grew by 37, 9% to 493 when solve it by the end of 2020 and modern searches per cent of the agents and our ace in how college.
Backgrounds.
75 per cent of the total existing home transactions were completed through cross for collaborations while commodity stores contributed over 81% of existing home listings, indicating continuously enhanced cooperation on the platform.
And our offerings.
College, Inc is pension was on.
And the pie and by increase of industrial digitalization, along with our current online presence. We recorded data for almost 200, and a 40 million homes and our housing dictionary and VR data for more than 9 million homes more than 73%.
All flow on the existing home listing.
For color, but we are property during by the end of 'twenty.
The number of VR property and surety you can see it.
$60 6 million in 2020, compared with a $3 9.002 million 19 total <unk>.
And of our platforms apps and the reach of mini programs increased by.
Bye.
88, 3.3% to $48 2 million in the fourth quarter of 2020, while paid current scores.
And while online more than.
One 1 billion times growing almost 150 times year on year on year, which implies the increasing significance of the Baker score in our sales and service quality for both consumers and agents next let me give you more colors in terms of our existing.
And when section and services business and the.
Part of the year, we further solidified our competitive advantages.
Existing home transactions market.
Continued enhancing consumer experience and and empowering brands stores and Aegean to improve productivity and our service quality.
Home achieved substantial growth on multiple fronts. According to pay it because research.
And <unk> Institute GTA V and all the existing home transaction and China grew six 7% to nine trillion RMB in 2020, while included.
Seven five share.
And RMB of existing home sales, increasing 11, 8% year over year.
Our our platform CTV, although existing home transaction grew 40 49, 5% to when Nike for treating RMB in 2020 CTV.
Our <unk> stores.
And 100 and and.
Nine 9% year over year accounting for 48% of total television from existing home transactions compared with 74%.
2019, and third party stores are increasingly playing.
Total Roe.
On our platform.
We always focus on creating value for our customers and providing them with a wide range of commitments as well as value added services, we endeavor to promote the eight core commitments, including authentic listing guarantees.
No markup and pricing.
King.
Transaction from escrow and and central Eddie for percent of stores and pulp are studying major cities pledged to all and the.
Eight call commitments in the fourth quarter of 2020, and the 100% of their stores.
<unk> the most foundational commitments.
And as authentic and listing current Ts given thats consumer phones <unk> has been one of the biggest concerns home transactions, we strengthened the escrow services for transaction phones, which cover more than 80% of transactions non mortgage payments.
Such volume at the end of December and terminal value added services. When particular note noted we're not worse, what the premium package for home and seller services.
Through which for free fire sovereign housing transactions were completed our focus on quality.
<unk>.
Brought us not only recognition from customers and agents, but also financial rewards.
As a result in 2020 the commission rate of our existing home transaction services increased slightly for both Lithia and <unk> stores. Meanwhile.
So and stores and agents on our platform increasingly benefits from efficiency improvement as our ace in the SaaS play out.
In terms of a professional and enhancement we vigorously promoting.
Store, scoring and ranking system to find and the reward the financed.
Service providers and supporting them to flourish. We also deployed a series of digital and operational tools to have both brand owners and our store owners Carryout system for the medical business, and and analysis and and barriers and.
Result Union store CTV.
Probably existing home sales for both day and John on a net of stores achieved the mid to high teens percentage growth rate in 2020.
Turning to the new home transaction services business. According to the National Bureau, our statistician CTV or China overall.
The new home transaction grew by 10, 8% total 15, five trillion RMB in 2020, and new home transaction services business deliver robust all around results, reaching annual GTO and <unk>. So the <unk> screening RMB with.
And a 5% year over year growth is solid this solid performance was primarily driven by the strong CTV growth, okay and that is stores and the other channels.
In order to take better care of our customers in 2020, we are focused on advocating the street day free.
All per commitment for new home sales, which we collaborated with developers to pioneer in the fourth quarter. This commitment was offer and Weyerhaeuser cities, we put considerable effort to support brand stores owners and the agents and and you put their experience in the new home transaction.
And with two services.
And <unk> to our advanced risk control mechanism our a R.
And to nowhere and new home transaction was 103 days in 2020 when is nicely increased from 2019, which was a <unk>.
Assuming given that the CTV.
Actual new home transaction grew 85% from 2019.
And the industry.
Stilt impacts from COVID-19, pandemic as such edge and on our platform, who will be able to receive their commissions on a timely assets. Meanwhile for further support.
And with the agents the commission and events.
We tend to cover more than 40% of new home sales Commission split with a SaaS fully brought the whole commission and advanced progress online and and enable that 24 hours Commission and <unk> payments for our personal and enhancement.
Parts and new home sales, we invest online infrastructure and equip equipped agents with advanced tools and methodologies and leveraging our stronger capability to mobilize agents, we concentrated sales force that's possible for certain projects in order to.
Asthma team productivity and a project of sell throughs certainty.
This initiatives led to continuously improve capabilities of both our own and the <unk> agents and our results and resulted in more than 10 teen percentage growth in term of unit store CTV and new home sales.
And increase our build relationship with increase of number of real estate developers and how providing more taylor and the efficient and services.
As of the and <unk> the number of new home projects homes on sale listed on our platform rich.
And as solid and.
And the 600.
We compare it with.
7700 at the end of 2019.
And second half of 2020 with director and a great directed our emphasize too.
New home sales through promotion and <unk>.
From a promoting and implementing cross city.
And you cross regional sales, we are pleased that our efforts are bearing fruit.
And our market share and leadership position and a new home transaction services market has gone from strength to strength I'll feel free.
Ill comment on our emerging services regarding our new.
And renovation services in 2020, we are focused on Beijing market to expand our capabilities and the product.
Meaningful results, we developed the beta version of the <unk> platform for service providers and the App for consumers as well.
Hope detailed Slp's management, we completed more than 1002 hundred projects and a connected more than 400 from in our filings filed and the workers and the 200 designers at the end of 2020 for real estate financial services, we have been continuously.
Upgrading products and offerings for Abbott, and my customer and breweries and and encouraging financial advisors.
Interact with customers and I E.
Later stage of the Transat.
Transaction process for improved penetration and the cosmetic and bill rates in 2020 the penetration.
And our financial services.
Average eight 4% and reached 10, 5% in the fourth quarter.
Looking to 2021, we have five key focus area and stepped in and taken care of the customers supporting our service providers new.
And our new regulatory and our emerging services, creating social value and.
And our fostering the critical role technology plays in the broad market opportunity first we continue to see clear signs of the rising power and customers pre and breadth.
Turning of our unwavering commitment to consistently.
Refining the consumer experience, so we increased utilization and enhanced service quality and.
2021, where we will leverage our capabilities and systematic data collection and artificial intelligence as well.
Our tencel offline network for enrich the content offering in new home sales for me the consumers' demand for abundant and accurate online information for new homes, where they will start we will start by building out.
The housing dictionary for new homes, New House.
And Stephen House, we will have more than.
Each house will have more than 200 descriptions fills that and incorporate basic housing informations as well details that our user insight and tools have identified as particular copy and partnered to Chinese customers <unk>.
And where AI technology, we can provide more intensely and information even.
And even pin pointing the lighting and noisy conditions on different for us.
In terms of service quality, we intended to provide our customers and the play platform participants with even.
<unk>, our security and our quality is through the.
And the continuous construction for our performance infrastructure, specifically, we plan to make all customer complaints public for increased transparency and further improve customer satisfaction.
And second.
And more we are increasing and are convinced of the tremendous value of social providers. So tools that we plan to launch in 2021 such areas.
30 day, two rates easing awarding and.
And the intervention model and the professional scoring.
Okay, and the training framework for model offer more platform participants, we aspire to identify and retain the financing service providers, including brand owners strong nurse and edges and and empowering them to flourish served with a new neutral the healthy development of emerging.
Right and then and other sources.
Our focus will be on building building up our core competencies and new home renovation services to achieve molecule for for customer.
Customer satisfaction improvement by providing a seamlessly.
Integrated transit transaction is spirit's. Meanwhile.
We will continuously update the product and service offerings and increase and increase our service efficiency of our real estate financial services. For example, we will launch the system to bring all of the financial adviser and advisers daily operations online in 2021 force.
We are committed to creating more social value. We believe it is our operating responsibilities to assets in building a stable real estate market characterized by a neutral market view.
Our social responsibilities is 10 day.
You're tense to facilitating and transit.
Physician in the residential real estate market from.
Opportunity opportunistic when to a more orderly and a sustainable and Meanwhile, we aim to fulfill our broader social responsibilities through a series of initiatives in 2020 'twenty. One for example.
Therefore, we are all for agent recruiting and retention retaining program to provide more job opportunities to the community, especially for new graduates we are.
We'll continue to upgrade our rental services offering young tenants more convenient and affordable and Prs.
Of the more since our deeply rooted a committed community centric stores and the agents have gradually become gathering points for local.
We see that we will continue to contribute and community services across the country. For example, we will continue the <unk>.
My.
For trading and sessions volunteered our our agents, which we offer to more than 140 solvent elderly citizens in the passenger.
Lastly on the technology front in 2021, we will continue to leverage our massive and authenticate housing and the trends and transaction.
<unk> and.
And our deep understanding of business scenarios.
And to innovate AI, driven and technologists that are drive optimal alignment between agents and consumers and home, so smart matching and personal recommendations and housing transaction this will be implemented.
And data with the products Inc.
And <unk>, our AI assistant shall day, because pit via and the central moving also push for data and AI driven intelligence operations, such as the intelligent operations of Baker Colm.
Order to improve the overall overall platform operations efficiencies.
In summary, the market and the rich with opportunity.
Ensuring cost consumers' needs and and the metric that wireless simultaneously support and service providers online and offline we are driving current.
Transformed national industry change and the progress we.
And in 2020 show US we are on the right path, we are confident in our group.
Gross country forward as we continue to expand our self reinforcing network that is greater than the sum of it is paths.
With this in mind, where they look to credit.
<unk> for the value for the consumers agents Southerners brands real estate developers and all other platform participants with that I would like to turn the call over to our CFO shithole for clothes wheel of our first quarter and the full year financials. Thank you.
Pleasure standard.
Click on Earth outlet to provide a brief overview for our fourth quarter fiscal year, two and day to day financial results well placed to deliver and other strong cultural and financial results marked by high revenue growth and strong profitability.
Net revenues reached a historical high.
Total 2020, driven by strong GDP growth.
Our net revenues increased by 57, 6% year over year to RMB 22, 7 billion and Q4.
Leading both high and hope all of our guidance.
Great and incentives.
The rapid growth of net revenue was driven by far and CTV growth.
Nine 4% year over year to RMB 112 trillion.
Along with increased productivity and are continuously inc. For the service part of our playful Inc.
In particular, our net revenue from beauty and home for a Doctor services increased by $56 one per side year over year to RMB bond prepayment income.
Paul.
Many of you tool.
698% year over year interest and UTV of it from home.
Home complexion to RMB, $584 7 billion and Q4.
Our net revenue from new home construction services increased by 58, 8% year over year.
And B trial and liability in Q4 from a rate neutral.
55, 5% year over year increase and Ptv of new home transaction to RMB 469, two.
And in Q4.
Net revenue from merchandise and services increased by 58, 1% year over year to RMB zero six day in Q for the increase was primarily.
Due to the increase of penetration level and partly it's financial services and long haul for housing transaction services.
For our increased number of homes that reach and unit completeness company's powerful.
Cost of revenues Inc.
<unk> by 48, 2% year over year to RMB, 17, 2 billion and Q4.
And during two perfect interest by 97, 4% year over year to RMB, five 4 billion to flow.
Both market increased to 23, 9% from 19, one for Scott and the same Colorado from Salt Nike.
The increase of gross margin was mainly due to the decrease of internal Commission.
Cost per day shots percentage of net revenue from beauty and home transaction service complete story and Chopra.
The sequence of commission to be at a percentage of net revenue from new home transaction services and these two agents and average sales channel.
Operating expenses, one before and to billings in Q4.
And the compared to RMB five months' period interest.
And Colorado from South Nike General and administrative expenses for RMB 180.
And <unk>.
Impactful RMB 456 billion in the same period of 2019, mainly due to the decrease of charters and compensation expenses.
Sales and marketing expenses were RMB 132 billion and.
Per to RMB 831 million and the same period for 2019, mainly due to the increase of broadly from a pricing on the promotion marketing activities.
Research and development expenses for RMB $714 million in Q4.
And.
RMB 478 meeting and the same payroll to <unk>, mainly due to the increased offshore based competition expenses.
In competition was RMB 127 billion and Q4 compared to loss from operations of RMB 312 billion in the same materials for 2019.
Operating margin.
And part of our five 6% and Q4 compared to 19 to 21, 7% EBIT and carryover to suffer from a rate due to the decrease of share based compensation expenses.
Excluding non-GAAP items, our adjusted income from operations, one two points from suitability and Q4 comparison and that you've RMB $80 million.
Same period of 2000 <unk>.
Adjusted operating margin was nine 8% in Q4 and that will not be zero politics percentage and the same apparel top margin mainly attributable to increased gross margin and improved operating leverage.
Adjusted EBITDA increased by 2000 to 100.
And the point, Microsoft and year over year to RMB, two 9 billion in Q4.
Net income was RMB, one 1 billion and Q4 compared to a net loss of RMB 31 billion and distinct carrier 2019, excluding non-GAAP items our cash.
Net income increased spot.
It is resolved and for 424, 8% year over year to RMB 2 billion you can for.
Net income attributable to core Holdings, Inc. Auto new shareholders was RMB, one 1 billion and Q4 compared to <unk>, three 7 billion interest and channel to market.
Net income attributable to credit.
<unk> Holdings, Inc.
And by 4508, 2% year over year to RMB 2 billion in Q4 for.
Fourth quarter opportunity.
Diluted net income or <unk> attributable to Crow Holdings, Inc. Ordinary shareholders was RMB zero point minus three and <unk>.
90 of RMB 790.
For <unk> 2019.
Adjusted diluted net income per week assets build for two for holding installs and the shareholders was RMB 171 compared from that deal RMB one one file.
And <unk> 2019 assets.
December 30 for 2020, so combined balance of our cash.
Non cash and equivalents Richie patch and short term investments amounted to RMB $65 2 billion of your style rub 10 billion.
And for the full year of 2020 our.
Our business to achieve the robust operational and financial growth and all of our <unk> increased by 64, 5% year on year.
For cohort of RMB three five treaties for RMB, two Watson truly enabling remained the second largest e-commerce price for across all industries and trial of the served market buying platform globally.
Our net revenue increased by 53, 2% interest rates of cohort.
Market pulp RMB 17, 5 billion for RMB 46 billion.
Our net income reached a total of RMB two suddenly incubated compared to a net loss of RMB, two 1 billion in 2000 and Nike.
Our adjusted net income increased by 245 four percentage year over year.
Total heart of RMB, five 2 billion from RMB, one 6 billion.
Looking forward for our fourth quarter out for 2021 were spun off net revenues to be between RMB 18, 5 billion and RMB <unk> 5 billion, representing an increase across mid today of 158% to 100.
And these three 9% from the same quarter of 2020 directly for high year over year proposal volume revenue guidance, mainly due to the significant net.
And that could impact COVID-19 for our business and the same period last year, Richard restart the meaningful portion of transaction share from Q1 from Q2 last year.
This outlook reflects Congress.
700, and a preliminary view of the business situation and market conditions, which is starting to change.
But nowadays.
We believe the long run on the principal housing for leaving off for speculation.
<unk> market in China will continue to shift towards a more stable and steady growth.
And in turn and well create a more favorable environment.
<unk> total credit hour amendments to reinvest and industrial and delivered the highest court and service to 300 Muni fund based and China.
Going forward well remains a focus on taking better care for consumer and simple platform participants such as brocade, and Brian stall and others agents and developers to okay.
And for Patrick health for consumers, while continuing to strengthen our competitive moats and our growing receipts and pay.
Pace.
And so we continue to reinvest our agent culture and language infrastructure user basis functions and innovative AI technologies, while constant worry well for them and highest our margin efficiency.
And if you would.
For our sustainable growth.
That concludes our per cap remarks, we will now open for the call to questions. Operator. Please go ahead.
Thank you Luis and watch ladies and gentlemen, we will now begin the question and answer session.
A reminder, if you wish to ask a question.
And half of it will need the cash.
And one on your telephone and wait for your name to be announced if you wish to cancel your request. Please press the husky again, its star and one if you wish to ask a question and.
For the benefit of all participants on today's call. Please limit yourself to one question.
And if you have additional questions you may re enter the queue.
Im going to ask a question in Chinese please follow the English translation. Thank you so much and your first question comes from the line of Aleksey Chang from Goldman Sachs.
Your line is now open.
And thank you Sandy zone powerful Matthew and it's how much alcohol.
Thank you Danielle and it Sheila you are calling from <unk>.
To accompany it accounts yes.
And how much of that data share.
Good day Centofanti cash challenges just hit a hole.
And how long.
Jonathan and LTE share Tien tsin for Tom Josh and decision making.
Inc.
Thank you, Tony and team Chocolate U T D.
Dale Lynch and I addressed your question.
Thank you Julia to junk like yeah, no bias.
And I'll now turn the HTS and.
Data from <unk>.
Thank you Jami for auto Anthony Thank you, ladies and gentlemen, and thank you.
Tien Tsin passion.
Good day, ladies and gentlemen.
And that's the only the LNG Tricia <unk> chocolate that law and that should keep from from Jack I'm sure for today's call.
And I will take your call and thank you Shannon and thank.
Thank you management and for taking my questions and congratulations on the strong results again.
Questions here, one is really about the changing macro environment entitling.
Deletion and.
And housing industry in China, how does the impact day call and its operations in major cities and how should we think about the impact our full year results and the second is on the competitive landscape, it's been awhile and things will backup prioritize and we also observed some developers are proactively building their own <unk> took and magnum.
Michelle and little bit more color on your observation and a key trends and industry and Baker's strategy existing and the competitive mode and the last one it's about emerging businesses.
Continue to see the GTA V and revenue scale robustly and assessment can management share and looked at what color and to the progress of our patients and our home decoration and financial services.
Thank you.
And thank you I'll cede to tissue Tal, let me drive to you for the questions.
Let me talk about some positivity recently so.
And the China housing policies, Amy and promote housing for leaving about force of regulation by the preventing the financial <unk> risk.
And from the Roes and the market place and later Mariner and <unk>.
Policies and so in Chinese and Waco, just at the phone and throughput each home.
Stable relative to the market.
And to stay below the gross margin is beneficial for the simple, Nevada and for Baker and industrial as a whole the sofa.
Our policy and we sold to slow for multiple from our heating by using a relatively mild for reclamation and be implemented targeted by us to provide the most severe reprobation matters and a greater market penetration and devote.
As part of the long term economy and to maintain and attractive housing market. It has been this day.
It also comes from most of the volatility of the real estate market and federal will open team and the path and the competitive landscape more modest capacity quality and efficiency and create a favorable environment for pay for other core industry.
From our observation the reason the housing policy and have known.
And significant ultra black and.
Impact on international real estate and the transaction momentum non.
And Bronx, and significantly tenders and overall market price over the transactional volume since the policy in the immediate from some over 50 cities like Shenzhen and Shanghai.
Housing is still necessary and.
And relative to demand from China, So, let's talk about the Shenzhen.
<unk> actually were <unk> 400, and the 2018.
All of our.
Incremental revenue was mainly come from all of our newly collects connected platform business. So shinta and is a star city of paper and its market share and profile most.
70% interest on the 18th when we launched April 29, and 2020, let's do come and low single digits.
Percentage of pay for total GGP and 2020, so we'd like to say is present and we don't have.
Centralization problem for specificity and the bakery is a platform company.
And our national wide platform disciple to mitigate the downside ratio deterioration from any particular cities.
And also for Shanghai, and the Shanghai is the market Youre sitting home sales market in China with the market housing stock over too many.
<unk> and Shanghai relatively mild with the day meat impact longer.
And the transaction volume and the weekly for <unk>, well reach and to a housing market that with active trading in Utah.
Recently, <unk> in Shanghai, and now that straw and stringent towards the impact on the transaction volume and the price will be relatively modest.
For your fourth question regarding.
And some competition, yet we do not and there's some peers that into society. So normally we don't comment on other peers fulfillment, but rightly, but the two things of our research and differed bakehouse IPO has used Paris, and many people and there will be more players and the capitals step into.
<unk> gross and market.
And pay for it it's very confidence and these are very happy to see new industrial and trends.
Step into this barrier and allowing us to further enhance our capability for Peter.
Neither of the industrial Internet and distinct deeply about our strategy.
And Paul to.
Take care of clients and how platform participant to take effective tariff of clients.
Regarding the marketing conditions are right.
And we say has arrived and is there are still some competition amongst investors.
And our model developers.
Our first and maybe hesitate to yields a summer days.
One day.
Our broker channel due to the competition for metro borrowed about customer lumpy, which makes our accretion with Canadian you've unlikely.
Paypal, we hosted a different value proposition against to assert pocket or make a promise of the future valuation.
Any officer entrepreneurship.
Becca this stretch of Tech network and changed and side just to reiterate again I'll restart strategies to take care of customers and help us over supply is there to take care of customers.
So from the financial loan book and that this performance perspective, no impact for Baker.
If you look at the TTP.
Takeaway and contiguous Martin DSO and the past three years.
<unk> increased by 200 day bidding for selling 147 billion and last year for the increased one eight and treated.
As a takeaway for the new home sales.
Our modest increase so our take rate and correspond to succeed.
Total points and won and lost year equal to $2 74, and its contribution margin for the new home continues to improve and the input cost related to a $4 9 billion and the last series of $8 2 billion and the DSO.
We also own our stability doubled year over year Thats, our gas soldiers Inc.
In 2018.
117 days and.
2000, 1996 days last year would have slightly increased 103 days just as a comparator.
And we are holding 19, if you're more kind of for Q3 and Q4 number we are reduced to 87 day.
<unk> started.
Most of and muted impact so lots of questions regarding our.
This strategy for the new business I would like to invite our CEO standard to give you the answer.
And Johan <unk>.
<unk>.
And some of that kind of Russia.
<unk> share of Baker from <unk>.
And that actually is on us and it's all bakery and Jenna.
Selling general and social.
And you should hear some.
<unk> for sure 70, and intelligent, Georgia Central resort Delta and the cash flow.
And so on.
And as well.
And later prudently.
Terrific and Donna.
And I thought was kind of under and John year from sure John and John here and really interferon.
And just set up and so youll do Edr and <unk>.
And on total freedom total Jaeger for Qdoba and you heard Joe.
Tom.
This is Daniel let me address your question in terms of the emerging services Department. So the next months to enter to this.
Three years ago.
And then what's for you for the papers platform as well as <unk>.
And just almost like tens of years of anniversary. So in the past 20 years, we actually accumulate a lot of experience, especially during our procedures to restructuring of the Huntington transaction industries. So.
And we're really focused on how we can be without the overall standard to the industry.
Well, we gather pace from the past 20 years and spirit experience is we need to doing.
Business.
Ill horizontally firstly right. So and then after that when we get to know the know how of the industry. We can start doing the Pascal.
Our business.
Vertically. So that's also what we got to take.
And we noticed that for a lot of different kind of.
The business such as housing transaction, although declaration as well as our furniture's.
Each of them has a significant piece of that potential.
Market size. So we will continue for about of the opportunity is there.
So, even though <unk> pools, and Congo, and the Darwin and real.
We'll take our nickel and western digital.
Holy alone for year honor for Sina actually all built and detach flow, Patricia Orange, <unk> and Knowhow and Chile. So you know one is that kind of assumes that all as a whole net.
On a total.
Congratulations on a day, each or to the Hernias and put it that there are no women and seeing them.
Depreciation and a neat usual tunnel junction this Sunday and Jerome finish and somewhat and I will Miss you measure and Youll see enough water gourmet <unk> digital and social and mobile media Daniela and the genetic and setup. So can you at R&D day.
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Total user chartwell and <unk> genome.
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General and saw digital channel, the green area corner, and the cornea bulk or digital season, while we launch and as we get a true for anyone who may order you can see the motions for sure.
And just in general and data.
Oh.
We were looking for the opportunities in the industrial Internet going forward. When we look has a potential sector.
Sectors with you, but we always look at those.
And also characteristics firstly, the industry should be very big enough secondly is we.
Also look at how we can copy of kite and deteriorate of our capabilities from the past years of the operational experience and firstly and thirdly, we also look at potential.
Potential opportunities within that attracts so from that perspective I can't.
Give you two examples going forward in terms of our continued development. So first is about the declaration business and secondly is about the financial business for the decoration business.
In a year of 2020 one as I described in our in the prepared remarks. So we will continue to focus on the Beijing market, we will focus.
And to build up to.
<unk> for this industry and build out the SaaS system as well as a continuing deterioration of the systems capabilities.
So we will focus on the areas of workers management as well as the overall industrial channel management.
In order to further build up our capability.
And of the declaration business in Beijing.
And there were no material hydro for the agent.
From an operating and do so you can do with <unk>.
But what's in unitary margin grew and the student the weighted.
So and Sean Downes.
And the only Michelle and.
Sure Danielle <unk>.
<unk> and <unk> two dee.
Yeah, drew Shaw and Mohawk, <unk>, NGL, and <unk> and see how you.
And you lose on from Bono.
And on Iranian material increase and Youre, showing the dual console functionally bond Johnny Vo from Zimmer weighted.
Intellectual ship.
Thank you Tricia and 17, when youre going on here.
In terms of financial business for this year will continue to improve our capability to promoter for online process, where were trying to build out the system for the financial advisers to ensure that working procedures can be completed online.
And Meanwhile, in terms of the customer side. We are also trying to promote the products such as the safeguard I assume vault products for the wholesalers for wholesalers mortgage redemption needs. So the inc.
Order to connect the buyer's mortgage with the salary together to further improve.
For the user experience.
So in the future as I mentioned, so looking into 2020, while we will continue to explore.
And so good practice as well as other explorations and rethink of the financial services.
Thank you.
And let me back for that yet.
Thank you so much.
And your next question comes from the line of <unk> from J P. Morgan.
Your line is now open.
Oh going from Burma Hall, senior just over to Kieran and.
And I will come see me golf and Tolerability.
Our the vintage losses decline and jumbo deal that's going to be a bit.
There's a little dry docks and debt.
And once we didn't think it's home since you take them together.
Sam.
And going.
And going to go and sell them.
In terms of new channel.
And it's how long did it.
The same thing for me.
And the outages and some mortgage consume more and more so.
So from day to go again Donald for mobile.
Or do you have on mobile.
And that's really.
And.
Keith and go and future woman so for some thoughts.
And the San Diego.
And that issue that you called and a comparable funeral homes.
And from Jakarta.
Sure and Nemo.
30 day blocks you ship on the light.
And somewhat and the digital world for most Shlomo and Archie and Kim.
EOG tightened and Zika and that begins with and basketball.
So my question was filed and our pricing strategy.
Is that the reason we pay for us gradually.
For the secondary home transaction conditional wait for 3% and some cities. So I was wondering and number wise and how many cities have they started to adopt for the 3% Commission rate and second is.
In each city, how do we differentiate the pricing our in house and asphalt and mobile.
And that goes down.
The third one is are we going to further expand the Cooper standard price into more cities in China, and how should we look at the Sycamore home Commission take rate and the rest up per year.
And a related question is do we have done and plan to increase the commission rate and new home transactions and EMEA future. Thank you very much.
Okay. Thank you tissue.
So let me address your question so for our commission rate for this new home actually all we want to.
We want to clarify for level Commission rate.
Actually with practice of service quality and et cetera, and.
Efficient for.
The market for these two new home dialysis market and with the full competition and balanced supply and demand.
Bump market.
Right and commission without being justified by service and quality of transaction efficiency.
And like a water, which I'll touch force tree, which on the route in other words, just muscle and bone.
As a neutral market our platform while activity is for bilateral commission model.
Total two filings to financial burden between buyers and sellers, while striving to improve our service quality commitment and hard reach and ability to add new customers with strong purchasing power and Europe too.
Multiple local branch for example, and power.
So the basis for it.
The basic infrastructure.
Struggled bakeries community centers on that work so to balance our.
And home under the new home sales and of our crucial and.
And we.
We encourage all of our agent and to take heart in the commodity services, and the local and better and surgical and better on the build up for long term commitments on the professional <unk>.
And it continues to improve.
It's quality efficiency and offers the most of the countries. So if you look at our take rate for our existing home sales in past three years. So this is still a modest increase for our pulp pirate brands for the NGL and possible units a commission rate from Q.
You too.
Three eight and the last year and $2 for and for our franchise per unlock yoyo.
And the commission rate.
And in a very.
Range so.
Right.
And its problems and.
And it's changed from two <unk> percent and.
And 199%.
And last year is two 2% and for <unk> 98 per.
Brandon.
In bed for platform for 278 brands. So we can reach to take rate to have a modest increase from one nine to $1 92, and the last series of two <unk>.
<unk>, 7% so inclusion.
<unk>.
For already seen home.
Commission rates, we expect a steady growth in both the day and job and our Canadian stores.
So its new home sales commission rate commitments are covered and quality service are improved.
Well Peter.
And Pete.
From a powerful and for the New home Commission rate actually for new home sales market and also <unk> market in which we play an important and equal go with it.
<unk>. This is a perfect market guidance, Hong Commission rate and new tracks, our high efficiency plus the cash collection as.
And as well as high level of customer group distribution, so with the loan growth with our new home Commission rate and order.
For two.
Until mutual and beneficial and a sustainable relationship relative developer with respect commission rate to remain stable and died.
Around the $2 77%.
Thank you very much.
Thank you so much.
And your next question comes from the line of Steven <unk> from Morgan Stanley and Steven Your line is now open.
Oh go ahead and send them a house as you just said what does he went and how well the one disappointing and stemming from and Dana T cell <unk> syndrome, Glenn and Samsung.
And she goes shopping day sound, the cohort and maintains that dean and do any of them from being in Tucson.
Bye bye and its obviously all day.
And up and then go on Sunshine and shop, you don't hold teach out with a payback and Mindy and I and I was just that you just stop and you will see Trina and sound Daniel J <unk> Java, what they share of course, and pizza shop and Nick.
And in light of T cell channel, you know somebody and put on.
The default not what did you find any thought about a simple management for taking my question. My question is related to the sales efficiency improvement for the coming back to stores.
Previously you mentioned that on a core basis, the third party stores improved GDP per stores by wants present and 26% in their first and second year, respectively. On the platform. So just wondering.
And if there is any difference for the stores that joined let her in second Hollywood and 19 or first half of 'twenty in terms of a sales improvement trend that you have observed so far thanks.
Okay. Thank you.
And actually.
We'd like to see in 2020.
Conduct most of and 47.
For the installs and the 493000 agents and our <unk> year over year.
I mentioned, just now you're crystal and 64, 5% amongst the incremental facts, we always understood potent zone, where our operating system and based on AUC and the.
And the agent corporates network to promote healthy platform development zone to prevent.
And for breach of competition, so the eco system and governance, so intrinsic to index, reaching peak for price for more than 81, 5% listing actually come from the stores and the most of the 75 per cent.
Star transaction and most of the 36 per.
For some of these cross brand.
Collaboration so as a consequence.
So if you look at our number just total deficiency, namely for I knew Ptv per store in 2020, just is that the total number of the big picture for our per ton brand of <unk> year over year interest for 'twenty, one, 2% and for our contract for end of year over.
The increased 18, 7% for our flagship brand impact for platform.
And we are the efficiency increased by 17, 2% just a big picture if you look at the cost base.
For her base day or efficiency year over year increase.
Just over 26%.
Thank you.
Thank you it's very clear.
Thank you so much.
And your next question comes from the line of channel and from UBS.
Your line is now open.
Frank and management should you have any kind of and consequences.
Or do you mean, the Iot for Lindsay.
Hi, Joe.
Solid Jim King kind of hanging from the hotline and got cut.
Yields on boxing day.
GDP that good share.
Alcohol, <unk> and ALM and should you be day delegate that she and I think that's with Evo and <unk>.
And she and I can't wait.
And you take it.
Margin did and Jojo.
And kind of.
<unk>, just net margin and our balance sheet deposits.
Well, we don't reach and Dallas that thought that woman that you could share the Hudson charter cover does it and their margin now nickel tonnes and the hydrocarbon margin balance indulgence.
And just get out and it's not one thing you don't want the windshield.
Two questions from me number.
And that's about what do we see in terms of the GDP trend for the primary and secondary transaction and also do we have the guidance for 2021 G. T V.
And my second question is regarding the margins, we see that during the fourth quarter adjusted net margin of eight 8% and electricity has the highest adjusted net.
The margin and weight and that's all of it.
Thank you.
Okay John.
And then and towards your question, so we see a steady growth and especially for their existing home sales sector, just walk through the front and the already solid fourth quarter as I mentioned just now.
Revenue for the first.
Corporate expense between tier one will be reached 18 five to $19 5 billion RMB. So we cannot give a very detailed number for the Q1 and <unk>.
Do our progress so regarding the second question, we see his margin and is the high So let me clarify internally, we do not matter over.
<unk> financial performance by <unk>.
Just as a consolidation of the body. So and also we just kind of income and as say internally. We have a environment is to manage a amendment to like with the strong efficiency.
Just talk with lost.
And that list Seo.
Measure of the store efficiency. Thank you for your city different Brian So just as Arlington environment. So far.
We can see the Shanghai and speaking to store efficiencies very good because when we have our business with stepping too short for two years and we continue to recruit new graduates from colleges and also.
And so you Shanghai, our local management teams day.
You should assume any service guarantee and.
This comp comes out for the agent.
<unk> agents and so the overall decline assets function is improved EPS continues to improve.
Efficiency or stall a consequence produced at <unk> as well thank you.
Okay. Thank you.
And.
Thank you so much.
And our last question comes from design of Thomas Chong from Jefferies. Thomas Your line is now open.
Yes.
Sure.
Yes, I Couldnt say that that was housing day, yes.
Yes.
Well, it's just that when you start momentum.
And I don't see EBIT that one.
Hi.
And.
A lot of that momentum to enrollment and <unk> mobile.
Hi, and woman that profitability and <unk>.
And things.
Why do you say.
Yeah, I'll hold off on that.
And then.
Uh huh.
And the network and double Montana, and Idaho, and let's see.
<unk> and <unk>.
Sure. Thanks.
Thanks management for taking my questions and congratulations for a strong sexual for me. So my question is more about the long term outlook.
Okay, and then determine.
I'll talk about how we should think about the long term trends in terms of the GCB and profitability, albeit a bit even more optimistic.
The outlook.
And the electric field, yes, and on different and.
Can you comment about any type of logical.
Great that they should be.
Yeah.
And we got.
Our Beck and ecosystem. Thank you.
Our central focus interest issue Tal, Let me address your first question regarding our launch and <unk> revenue and profitability for.
Production actually last year and when we prepare.
The IPO.
We have what's ideal model and and.
And their releases.
Total market. So we're still keep our IPO model has not changed so intermodal in 'twenty two neutral we see CTV will be seven six trillion that rami and walking over 161 billion for.
Well be.
Adjusted net.
Net profit won't be 18 Berry. So so far we will not just for protection, because we need to balance our investment in future and also our capability and the old but the commencement of vehicle, we have a strong confidence to beat and raise and fees. So regarding and the second question.
And I will invite our CEO to give some for the explanation.
The anvil, and Mueller and telling them and so you'll get from documents would you.
So you will see in those times.
And on the Eastern J O'connor two for.
<unk> tissue to choose from AI and <unk> can do.
And so because you won't go through a bogo and Jim Baker.
<unk> pick bankable and shopping.
AI engine and tissue.
Interest you and adult weighted to dilute and Sony as Bill and thoughtful from your competition, so you'd have to really minimal new boxes, a year you're going.
And do material materially as Undrawn for Yoplait on the Congo.
And our engineer Josh on the agent for total with tissue, John with Voyager and then we'll be doing training and 19.
And Jay.
And now for <unk>, and J&J and Kenosha and <unk>.
Ladies and gentlemen that you'll find the financing.
This is stunning and let me address your second question. So since we actually there has been a accumulate huge amounts.
Amounts of data in our operating history. So in terms of the AC and evolution. This year, we will continue using the technology through as well as the AI capability to continue to deteriorate our products and.
And to further help to agents.
About her services as well as serve matter to our customers.
And so will.
Using a lot of different types of the truth as I mentioned before so it has because <unk>, our AI assistant and South Bay, which is how to agents.
And then people will continue.
And mice optimize as well as and improve their efficiency as well as productivity so in the.
And following in the previous of the experience in terms of the industrial Internet, we truly believe engineers capability definitely kind of out of the server service as well as the service providers within the industry.
And ill bring better so definitely in the future.
We will compound the true part of the culture and the capabilities together to continue to improve the efficiency and the productivity for.
For those and network. Thank you.
Thank you.
Okay.
Thank you so much.
And Q2 time limits.
I'll now turn the call over weighted to your speaker and host today, Mr. Matthew Zhao for closing remarks.
Yes. Thank you operator, thank you once again for joining US today. If you have further questions. Please feel free to contact because he and reservation teams through the contact information for White our website. These conclude.
Today's call and we look forward to speaking with you again next quarter, Thank you and goodbye.
And that does conclude our conference for today and thank you for participating you may all now disconnect.
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Hello, Ladies and gentlemen, thank you for standby for K E Holdings, Inc.
Quarter and fiscal year, 2020.
And Scott and for each call.
At this time all participants are in a listen only mode. Today's conference call is being recorded all of them and I was trying to call over to your host Mr. Matthew Zhao IR director of the company. Please go ahead Matthew.
Thank you operator.
Good.
Thank you and good morning, everyone. Welcome to <unk> Holdings, Inc. I'll pay codes force called her and a physical year 2020 earnings conference call.
The company's financial and operating results were published in the press release earlier today and are posted on the company's IR website, www dot and western Dot <unk>.
Dot com.
On today's call we have Mr. Stanley don't hope, our co founder and Chief Executive Officer and to meet her call shoot our Chief Financial Officer.
These are pulling and we'll provide an overview of our strategies and our business departments and.
And so she will provide additional details.
On the company's financial results and <unk>.
Discuss our financial outlook.
Before we continue I refer you to our Safe Harbor statement and our earnings press release, which apply to these call as we will make forward looking statements.
Please also note that because earnings press release and today's conference call include discussions.
Of all these GAAP financial information as well as unaudited non-GAAP financial measures.
Please refer to the company's press release, which content a reconciliation of that and all of these non-GAAP measures to comparable GAAP measures.
Lastly, unless otherwise stated all figures mentioned during this conference call are you and give me Pete.
With that I will now turn the call over to our CEO. Mr. Steiner. Please go ahead Sir.
Thank you and meso.
And SMT and for joining us today on our fourth quarter and our fiscal year 2020 Holdings Conference call.
The exceptional growth in 2020.
Closing the year with strong first quarter operational and financial results.
Nancy what scale operating efficiency and the quality of services combined with our strong data work and SaaS how can.
The staff for reinforcing virtuous cycle and a drop for.
For years D TV to increase prices.
For 5% to reach a historical high of $3 five trillion RMB and have the US sorry define our leadership position and are the largest housing transaction and the social platform in China, and the second largest commerce platform across all industries in China.
<unk> and 'twenty.
MX and the <unk>.
19th anniversary Olay, and Jos operations, and a 30 year since their peak platforms inception.
We have covered over the past few years as well as our outstanding results in 2020, how providing for the formation of our belief that.
For the past, we are taking and doing the right thing either.
It is difficult.
And I pass it also brings us closer to our vision of providing comprehensive and trusted housing services to 300 million families and China I would now like to provide you with a.
Close closer look at exactly what we accomplished over the past per year.
And looking back 2020, it was a challenging year for our business and for the work phase and that the COVID-19 pandemic, we worked hand in hand with the Canadian brands stores agents developers.
And and other playful and participants to overcome this tremendous steakhouse and emerged stronger.
We carry out a series of measures to have our own and our commodity aging position. During this difficult period. This included.
The average timely payments.
Supporting brand owners and installment is to ensure that our agents continue to be paid any syndrome with offline activities certainly hampered by the pandemic. We are promoting online agent training online via our property assuring and online properties sales when the pandemic just.
Broke out these initiatives supported agents and capabilities to continue to push forward on line.
Lockheed sales opportunities and build out the inventory or potential buyers, the OTA and appeal it and the impacts from COVID-19 and started to ease in China.
The sales performance of Canadian stores, and the agents on our platform recover rapidly demonstrating the significant value of our platform. This period, our share adversity enhanced trusts to brand owners stop nurse and edges in the Baker platform.
While <unk> contributed.
Contributed to accelerated.
Accelerated momentum and improve operational efficiencies in 2020, we are focused only its pending the scale of our AC network with a quality growth.
The total number of Canadian stores grew by 25 per 1% year over year, reaching 46, nine and solve it.
And over 2020, among which over 30% of our stores have annual CTV and 50 million RMB or more which we believe is adequate levels to support sustainable growth of the stores compare to only 19% in 2019. The total number of engines on the big couple.
And therefore grew by <unk>, 9% to $493 when solve it by the end of 2020 and more than 30 per cent of the agents and our ace and how college backgrounds.
75 per cent of the total existing home transactions were completed through cross.
Store collaborations while commodity at stores contributed over 81% of existing home listings, indicating continuously enhanced cooperation on the powerful our offline expansion was.
And the pie and by increasing industry digitalization, along with our growing online presence.
We recorded data for almost 240 milling homes, and our housing dictionary and VR data for more than 9 million homes more than 73% of Covid.
And home listings.
For color, but we arent property shoring.
And also <unk>.
The number of our properties story, you can see it.
$60 6 million in 2020, compared with a $3 9.002 million 19, total EMEA use our platforms apps and the reach of mini programs increased by.
Bye.
Eight three.
0.3% to $48 2 million in the fourth quarter of 2020, while pay current scores.
And while online more than $1 1 billion times coring, almost a 150 times.
Year on year, which implies.
And the increasing significance of the Baker score and our sales and service quality for both consumers and agents next let me give you more color in terms of our existing home transactions services business and the POS a year, we further solidified our competitive advantages and the existing home.
Home transactions market.
Continued enhancing consumer experience and and empowering brands stores and Aegean to improve productivity and our service quality and achieved substantial growth on multiple fronts. According to <unk> research is to.
Institute GTA V.
Although existing home transaction and China grew six 7% to nine trillion RMB in 2020, while included.
Seven five trillion RMB of existing home sales, increasing 11, 8% year over year, our and our platform CTV.
For the all the existing home transaction grew 40 49, 5% to when Nike for trading RMB in 2020, CTV <unk> grew by 100, and a nine 9% year over year accounting for 48% avocado to TV.
Covid from existing and home transactions compared with 34%.
2019, and third party stores are increasingly playing.
Total Roe from our platform.
We always focus on creating value for our customers and providing them with a wide range of commitments.
<unk> as well as value added services.
We endeavor to promote the eight core commitments, including authentic and this team guarantees.
No markup and pricing.
Transaction from escrow and central Eddy for percent of stores and Pompe study major cities plays.
Two on the list.
<unk> coal commitments in the fourth quarter of 2020 and.
100% of the store.
<unk> the most foundational commitments such as authentic listing guarantees given that consumer funds 30 has been one of the biggest concerns and home.
Transactions.
Johnson, the App crew services for transaction phones, which cover more than 80% of transactions non mortgage payments volume at the end of December and terminal value added services. When particular note note were not worse, what the premium.
Package for home and seller services.
Through which for free fire solvent Halloween transactions were completed and I'll focus on quality services brought us not only recommendation from customers and agile, but also the financial rewards and.
As a result.
Results in 2020, the commission rate.
We're seeing home transaction services increased slightly for both linear and commodity stores. Meanwhile, brands stores and the agents on our platform increasingly benefits from efficiency improvement and as our AC and their SaaS play out.
<unk>.
In terms of professional and enhancement we vigorously promoting.
Store, scoring and ranking system to find and the reward the financing service providers and supporting them to flourish. We also deployed a series of digital and operational tools too.
Both brand owners and install owners Carryout system for the medical business, and then and analysis and the metrics as a result union store CTV of existing home sales for both Lithia and <unk> stores achieved the mid to high teens percentage growth rate.
In 2020.
Turning to the new home transaction services business.
According to National Bureau of statistics.
Oh, China overall, new home transaction grew by 10, 8% total 15.5 trillion RMB in 2020 and a new.
Home transaction services business deliver robust all around results, reaching annual GT the <unk> for the <unk> RMB with.
And 85% year over year groups is solid this solid performance was primarily driven by the strong GDP growth.
So Canada stores and the other channels.
In order to take better care of our customers in 2020, we are focused on.
<unk> The Street day free return commitment for new home sales, which we collaborated with developers to pioneer in the fourth quarter. This commitment was.
<unk> offer and 100.
Cities, we put considerable effort to support brands stores owners and the agents and and you put their experience in the new home transaction services.
Sex to our advanced risk control mechanism.
Our turnover and new home transaction.
103 days in 2020, when is nicely increased from 2019, which ward.
And I assume and given that the CTV or our new home transaction grew 85%.
From 2019.
And the industry.
Built in parent.
Parents from COVID-19, pandemic as such edge and on our platform, who will be able to receive their commissions on it.
Timely assets. Meanwhile to further support the agents the commission and advances.
We tend to cover more than 40% of new home sales Commission split.
We are successfully brought for the whole commission and advanced progress online and and enable the 24 hours Commission and <unk> payments for our personal enhancement and new home sales and.
<unk>.
Your line infrastructure and equip equipped agents with advanced tools and methodologies.
Leveraging our stronger capability to mobilize agents, we concentrated sell.
Those process possible for certain projects in order to increasing productivity and a project of sell throughs certainty. This initiatives led to continuously improve capabilities for both our own.
And the <unk> agents and our results and resulted in more than 10 teen percentage growth in terms of unit store CTV on new home sales. We have built relationship with increase in number of real estate developers and how provided more Taylor and the efficient services.
As of the and or 2020, the number of new home projects.
Net sales less it on our platform reached.
And and the 600 and compare it with.
7700 at the end of 2019.
And a half or 2020 with direct to direct.
Our emphasize too.
Accelerate new home sales through promotion and <unk>.
And promoting and implementing cross city and across regions. So we are pleased that our efforts are bearing fruit and.
And our market share and leadership position in a new home.
Home transaction services and market has gone from strength to strength.
A few comments.
The emerging services regarding our new home renovation services in 2017, we are focused on Beijing market to expand our capabilities and the predominate.
Meaningful results, we had developed the beta version of the in house apps platform for service providers and the App for consumers as well as detailed as op management, we completed more than 1002 hundred projects and a connected more than for.
And for kind of flow man pharmacy volume and workers and a 200 designers and the end of 2020 for real estate financial services, we have been continuously upgrading products and offerings for Albert and my customer and gurus, and and encouraging financial advisors to interact with customers.
Customers and an easier stage of the Transat.
Transaction process to improve penetration and cosmetic bill rates in 2020, the penetration and our financial services.
Average eight 4% and reached 10, 5% in the fourth quarter.
Looking.
Into 2021, we have for key focus area stepped in and taken care of the customers supporting and service providers nurturing, new regulatory and our emerging services, creating social value and and.
And Ah fostering the critical role technology.
Knowledge plays in the broader market opportunity first we continue to see clear signs of the rising power and customers pre and breadth.
We have unwavering commitment to consistently.
Refining the consumer experience, so we increased utilization and enhanced service.
Quality.
<unk> 2021, where we will leverage our capabilities and systematic data collection and artificial intelligence as well as our Tencel offline network for you enrich the content offering and new home sales for me the consumers' demand for abundant.
And accurate online information for new homes, where they will start we will start by building out.
The housing dictionary for new hubs, New House, even house, we will have more then.
Each house will have more than 250, <unk> skus that and incorporate Betsy.
Housing formations as well details that our user insight and tools.
Jamie side and.
Particular, and copy and partnered to Chinese customers, leveraging our AI technology, we can provide more intensely and information given COVID-19.
Even pin pointing the lightning and.
Noisy and conditions from different flush.
In terms of service quality, we intended to provide our customers and the PE platform participants with even more security and quality through the.
And the continuous construction for outperformance infrastructure, specifically, we plan to.
And to make all customer complaints public for increased transparency and further improve customer satisfaction.
Second we are increasing convinced of the tremendous value of Soc providers. So tools that we planned to launch in 2000.
<unk> 21, such as 330 day tool right easy warning and.
And the intervention model and the professional scoring ranking and the training framework for model offer more platform participants, we aspire to identify and retain the financed service providers.
Letters and clean brand owners strong nurse and edges and and <unk>.
And them to flourish served with a new neutral for the healthy development of emerging and and and other sources.
Our focus will be on building building out our core competencies and new home renovation services to achieve.
<unk> molecule facility for <unk>.
Customer satisfaction improvement by providing a seamlessly integrated transit transaction and spirits. Meanwhile, we will continuously update the product and service offerings and increase increase our service efficiency of our real estate financial services.
For example, we will launch the system to bring all of the financial adviser and advisers daily operations online in 2021 force, we are committed to creating more social value. We believe it is our operating responsibilities to assets in building a stable real.
If the market characterized by a neutral market view.
Our social responsibilities is 10 day.
And your attempts to facilitating and transit transition in the residential real estate market from up.
Opportunity opportunistic when to a more orderly and a sustainable.
<unk> and Meanwhile, we aim to fulfill our broader social responsibilities through a series of initiatives in 2000 and until 2021. For example are plentiful. We're all for agent recruiting and retention retaining program to provide more job opportunities to the community is partially.
And for new graduates and we will continue to upgrade our rental services offering young tenants more convenient and affordable and Prs. Furthermore, since our deeply rooted a committed community centric stores and the agents have gradually become gathering points.
For local.
And that.
We will continue to contribute and community services across the country. For example, we will continue the smartphone training sessions volunteer and.
Our agents, which we offer to more than 140 solvent elderly citizens.
In the past year.
Lastly on the technology front in 2021, we're going to continue and leverage our massive and authenticate housing and the trends and transaction data and.
Our deep understanding of business scenarios for two.
And we innovate AI, driven and technologists that are drive optimal.
And <unk> alignment between agents and consumers and home, so smart matching and personal recommendations and housing transaction. This will be implemented with EBITDA.
Products, including our AI assistant Shelby Bakers pit via and the central moving to also push for.
For data and AI, driven and intelligence operations, such as the intelligent operations of Baker Com, Inc.
Harder to improve the overall platform operations efficiency and <unk>.
Summary, the market and the rich with opportunity by ensuring costumer consumer's needs and and and.
The wireless.
Wireless simultaneously supporting service providers online and offline we are driving.
Transformational industry change the progress we made in 2020 show US we are on the right path we are confident.
Gross country forward as.
We continue to expand our self reinforcing network that is greater than some of his past.
With this in mind, we are there.
And to create further value for the consumers agents Southerners brands real estate developers and all other platform participants.
With that I would like to turn the call over to our CFO shithole for clothes wheel of our first quarter and the full year financials. Thank you.
Thank you for Stanley.
Thank you everyone for joining.
Alright to price to operate all of you for our fourth quarter for fiscal year to day to day financial result.
We are pleased to deliver and other strong cultural and financial results marked by high revenue growth net.
<unk> profitability.
While net revenues reached a historical high for the fourth quarter.
Of 2020, driven by strong GDP growth.
Our net revenue increased.