Q1 2021 Ke Holdings Inc Earnings Call

[music].

Yeah.

Hello, ladies and gentlemen, and thank you for standing by for a K E Holdings Incorporated's first quarter 2021 earnings conference call. At this time all participants are in listen only mode. Today's conference is being recorded on Val.

And the coal over to your host Mr. Matthew Zhao IR director of the company.

Please go ahead Matthew.

Thank you operator.

And good morning, everyone welcome to <unk> Holdings, Inc, albeit because first quarter 2020.1 earnings conference call.

The company's financial and operating results were published in the press release earlier today and are posted on our company's IR website, Www, Belgium, and Westar stop Katie they'll call.

On today's call we have Mr. Stanley on don't publish our co founder and Chief Executive Officer, and it meets their culture, our Chief Financial Officer.

Mr. Peng will provide an overview of our strategic and business your balance and and Mr. Hu will provide additional details on the company's financial results.

Before we continue I refer you to our Safe Harbor statement and our earnings press release, which have ties to this call as we will make forward looking statements.

Please also note that because earnings press release entities conference call include discussions of and all of the GAAP financial information as well and all the non-GAAP financial measures.

Please refer to the company's press release, which contains a reconciliation of the eye and all of these non-GAAP measures to comparable GAAP measures.

Lastly, unless otherwise stated all figures mentioned during this conference call I AWP.

With that I will now turn the call over to our CEO Mr. Stanley. Paul. Please go ahead standard.

The central message and Hello, everyone and.

Thank you for joining us today on it.

Total first quarter, 2020, Werent really and conference call.

We are very careful to have on a team of rational and our financial results in the first quarter there considerably.

And this will take a patients.

Since 2 the tailwind from China's growth.

Robust economic growth following the COVID-19 pandemic and on the heater hearings of the National policy housing from leaving another force speculation.

And as well as our unwavering focus on the long term goal of delivering excellent consumer experience.

Quality service.

Our total on total GTD grew rapidly to win on all 7 training on the up 224, 2% year over year. Meanwhile, on the sale of array, forcing.

Virtuous cycle on efficiency and instincts and scalability driven by quality and service was further enhance on our platform we.

We continue promoting industry digitalization and further building on line infrastructure first.

First quarter, although housing dictionary contains data for over 200, and under 44 million hubs in China and.

Average I may use, including our platforms apps and the wechat mini programs.

Rich.

Sure.

48, 5 million in the first quarter up 78% year over year pension.

Pension on our network scale also continue at a robust depends and while we remain focused on the quality of our network by the end of the first quarter on the total number of net stores reached.

40.

<unk> 40, a solid.

700.

<unk>, 4% year over year seamlessly and a win win and collaboration amongst us and our brands continue to prevail on ultra.

Platform and the first quarter.

And 76% of transactions on <unk>.

Therefore, we're completely and so cost or collaborations and the transactions completed through cross brand collaborations remains steady at 36% on our platform, while Connecticut stores accounted for 83% of existing home listing.

In addition, we continuously supported our commodity stores and the brands and recruiting cultivating and retaining agents in the first quarter.

Each led to 41, 8% year over year growth over the number of agents on our.

Jeff.

Reaching a total of 500 and.

<unk> 8 and solid.

With that overview I would now like to provide you with some color on average.

And our existing home transaction services business total GTD or existing home transactions and China grew 133% year over year first quarter. The substantial gain was in part due to the low base in 2020 caused by the on up.

So we are in terms of the pandemic as well as the impact on some structural transaction growth and the original level on.

On our platform GTA V on the existing home transaction rich.

617th Street pulling forward.

Moving on and RMB in the first quarter, increasing 244, 2% and a union storage CTV or existing home transactions achieved 174, 7% year over year expansion and continuously improve service quality and efficiency <unk> stores with the primary.

Driver of this robust gains and the first quarter, we initiated and agent and specialization strength strategy, which encourages agents to focus on.

Either existing home sales and new home sales on home.

Rentals, rather than traditional mix assumptions in the industry.

Aided by the Coop radio milestone.

And your thoughts among hedges along with clearly defined roles and the performance base Commission and location and the kind of terms. This strategy helps agents sharpen their focus and cultivate stronger professional service capabilities promote efficiency efficient and customer conversion across different offerings.

And ultimately improve store efficiency and the consumer experience the agent and the specialization strategy has proven very effective financial and enhanced.

Enhancing consumer experience and our store efficiency, taking the pilot city on Hangzhou as example.

<unk> thousand and energy.

Assigned to different rose in the first quarter unit store CTV was 11% higher in the store where agents specialization was implemented compared to stores that have the variety of agents functions.

And of the first quarter, we haven't implemented this mechanism in 2000 and cities covering 17.

And the 800 stores given the encouraging early results we plan to adopt this strategy in batch and at least 30 cities. This year.

To create value for our consumers were installed 1 step further and improve their real yesterday.

Transaction process, we began opening offline contrast service centers and in our major cities. Our goal is to further guarantee transaction security.

Streamline the signing process and enhanced the efficiency of Mount and multi party that real estate can chart and assigning process tends to be a very complicated and over.

And the author requires comprehensive knowledge across financial and legal and tax.

The leg of professional service offerings that fill this needs lapsed consumers and post 2 transaction risk our contracts service center address exactly this pinpoint and.

They become the go to location for comp.

For customers regarding all contract to lead his services. The process is completed with a professional contract manager to ensure compliance and a full risk disclosure, which provides a safe efficient and convenient and contracted <unk> for our customers on the end of the fourth.

Quarter, we have opened.

17, 4 contract signings and service centers in 21 cities switching gears to our new home transaction services in the fourth quarter CTV for new home transaction increase.

And $19.6.

Percentage year over year in China, which was attributable to the low base non theatre as well as developers strong incentive to accelerate.

Sales through CTV or on a new home and transaction services was $343.4.

And for billing RMB up 194, 9% year over year, driven by the 220 <unk>.

And CTV growth net of stores and other channels as we continue to enhance the efficiency and the professional training to our agents.

And on par with with with our stellar financial performance. We also made substantial strides in new home transaction, and digitalization content and enriched and ecosystem and governance this and to empower service providers, such as developers and and.

And continue to and enhanced our service quality and and maximize value for the customer as we communicated during our first quarter fourth quarter earnings call. We are dedicated to build online content for new home transactions to improve the consumer experience online penetration and the facility.

And this segment's digital.

Transact transformation and.

And 1 much city, 1 rich comprehensive and multi dimension no information for modern.

And solvent new home sales projects on our platform covering 34 cities and offerings consumer with more online information such as <unk> property pool property book through data processing, together with platform and AIG and ready online content, such as evaluation and assessment reports.

And housing layout planes, we were able to better identify the consumers' needs for new home online information. We also optimize on new home sales kind of traffic and lease acquisition strategy sales through all of this initiatives reach and already on average a 10% increase and new home customer list and those.

And those 34 cities in the first quarter and a significant since significantly enhanced the online endurance for customers and more.

Over and we launched a new home business conduct improvement plan to advocate for a transparent and a healthy new home sales environment based on government governance and better collaboration mechanism in the new home transaction services.

Our goal is to facilitate a fair SaaS and efficient and orderly ecosystem for the new home transaction services that address the improper practice that and how is this for a long time, such as <unk> competition for customers customer information leakage and.

<unk> rebates are promoting governance mechanisms and the industry, including rules.

And the protocols as well as the capability to implement.

Implement them.

And to protect agents rights and offer a sense on security and the certainty to them. Eventually this substantially protect the <unk> interest with developers and they improve agents' efficiency and the income in.

Enhanced and the customer experience and to create and take a short cycle that enhance the overall operating efficiency of the new home industry and the first quarter we implemented.

Our verification system.

The agent level and have put in place city level supervision teams. We have also signed agreements with 19, 1% of developers on our.

<unk> platform on file 5 tons.

And making a firm commitment to the developers and the overall industry for new home for new homes and other important initiatives as the new home sales the impoundment plant.

Calculating dedicated agents with the EBIT.

That is price.

On new home transaction associates, as well as online and offline full spectrum customer acquisition capabilities.

Plan caters to consumers different needs when purchase and new home projects compared with existing hubs at the same time the portfolio of new home sales channels. We offered to developers is a further is reached better meeting their needs for more focused and efficient sales channels.

Lastly on our emerging sources we.

Steady steady progress in home renovation services and financial services, We completed 551 home renovation unit in Beijing, and the first quarter while program progressively.

Iterating the infrastructure, including multiple self developer.

And our self developed systems.

Non them our self developed what beam system version, 1 was launched in the first quarter as part of the industry infrastructure. The paywall beam system successfully digitalized home renovation and decoration design for designers that beam system enable automated automatic drawing.

Outputs accurate accurate real time quotation and the generation of digital appeal on materials ball as well as accurate via our design efforts supported by the VR capability available <unk> on our platform this not only and solve the industry wide problem.

Visual realized utilizing and translating the abstract gives line from the designer's mind, but it also lays out the foundation for the final.

Construction and visibility with higher enhanced data accuracy for customer fleets gradually.

We are forcing the notion that outperform what you'll see is what you will get and empower them to take control of and innovation renovation costs in real time the service.

Reliability is greatly enhanced with blue is.

His tabulation the industry, leading position and the infrastructure, we provide for home renovation and decoration and including the system products and applications for both consumers and our service providers incomes are financial services, recognizing 16% of our sellers.

And the new home transaction have a demand for property.

Redemption, we promoted the engineered bar products to meet owners.

Redemption needs for more efficiently.

And on average, 26% decrease in cost and so.

And of the first quarter this product.

And enter 6.7 cities improving the overall transaction experience for home owners.

Existing home transactions and summary, 'twenty 'twenty, 1 is off to a strong start with financial our financial and operational performance as both large and our core strengths and we continue to gain.

And traction with our ASC and network and new and existing home markets and the National policy on houses House House and thoughtfully for leaving no force speculation that underpins the foundation for steady and housing and real estate market provides edyta support it.

Our mission to transform the housing transaction and a service industry in China going forward, we will continue in wall on our business and invest in initiatives close to our core while creating a new and better normal for the industry building trust and and increasing value for everyone along.

With that I would like to turn the call over to our CFO shoot Hall for closing.

Our view on our financial.

Our first quarter financials. Thank you.

Okay.

Thank you our Buffalo Jr.

I would like to price a brief overview of ballpark, let's hold off on strategic view of our financial results, while based on to be able to offer a strong quarter operating.

Results marked by high revenue growth and the strong market balance.

Our net revenue increased by 194, 7% year over year to RMB to take on some debt in Q1 exceeding both hands on mobile titles on the street consensus.

The rapid growth off on net revenue driven by volume growth to 102 people on 2% year over year to RMB, 1 wholesale and training the <unk>.

Gross revenue in the fourth quarter and continue to do what was primary attributable lower base sales carry all of last year and.

Paul.

However, although these experiences.

New power price, new 8 and Q1 on net.

Revenue was due to the pause.

Ron and post Q2 on Q3 of last year and the only single digit on a sequential basis, demonstrating the strong momentum of pulp plant growth.

In particular on net revenue promptly and home <unk>.

<unk> increased by 202, 1% year over year.

To RMB 10.2 billion.

Mainly due to a 244, 2% yogurt and Chris and CTV.

New home construction to RMB 673.4 billion.

On net revenue from new home goods and services increased by 187, 6% year over year to RMB line marketing on.

Run rate due to a 194, 9% yoga and Kristin <unk> of new home construction to RMB $343.4 billion and cool.

Our net revenue from merchandise and services increased by 96, 2% year over year to RMB zero policy period and Q1.

The decrease was primarily due to an increase and CTV or financial services housing pumping services as well increased non broker home Tech region unique and pizza comps by 4.

Yes.

Revenue.

Increased by 140% year over year.

RMB 15.9 billion.

Gross profit increased by 864 percentage year over year to RMB 4.8 billion in Q1.

Gross margin decreased to 23, 3%.

And from 7% and Thats imperial to defeat.

The increase in gross margin, mainly attributable to a lower peso and third and fourth quarter and strategic almost <unk> operating.

Operating expenses were RMB 3.

In Q1 compared to RMB $2, 1 day is superior.

Good day.

General and administrative expenses were RMB, 2.1 billion and GAAP.

RMB, 1.1 billion and Purion since many.

Many of you to the increase and Python as well as share based compensation expenses.

Sales and marketing expenses were RMB, 1.1 billion and.

Therefore on the 577 million and distinct.

And <unk>, mainly due to increase the online off line of apartments on the brightness and teams.

Research and development expenses were RMB 600.

And in Q1 compared to RMB 451 million exists and Purion <unk>, mainly due to the decrease of high comp.

And spirits R&D Smart <unk>, Inc, with the sharpest competition expenses.

Income from operations was <unk> 1 billion and Q1 compared to loss of accretion RMB, 1.6 billion.

And Purion <unk>.

Operating market was $4.970 in Q1, compared with net 22, 9% and Purion for 2020, primarily due to the increase of net revenue and empower coating line offering.

Q1.

Excluding non-GAAP items, our tax income from operation was RMB, 1.6 bidding and award.

And cash flow from operation of RMB, 1.5 billion opportunity.

GAAP operating margin was 7.6.

Well congrats on that fifth CG, 8 and the census, and Purion <unk>.

Adjusted EBITDA was RMB 2.0.

And 1 compared to last few RMB, 1.8 and.

And just and Purion <unk>.

Let me call was RMB, 1.1 billion and Q1.

Net loss of RMB, 1.2 billion to secure a strategic review.

The non-GAAP items.

Our adjusted net income of RMB, 1.5 billion to 1 compared to adjusted and net loss of RMB, 1.1 period and the same period of strategic transition.

Net income of Q4, 2 Crow Holdings, Inc. Ordinary shareholders.

RMB, 1.1 billion in Q1.

GAAP net loss attributable to core holding ordinary shareholders of RMB, 1 non paid interest and Purion <unk>.

And net income stream.

Our Holdings, Inc.

And the RMB, 1 pocket and in Q1 compared to adjusted net loss attributable to peripheral being equal farm and $1.1 billion with imperial and strategic.

Diluted net income per GAAP equivalents.

And the ordinary shareholders was RMB Daryl.

And Q1 investment last Q3 volume.

<unk> and St Charles to GTT.

Adjusted diluted net income per EPS attributable to peripheral gaming auto and re shareholders was RMB 1.2 filings 1 congrats on vacuum RMB 3.4.

And it's been period.

As of March 2021.

And as of our cash cash equivalents.

Cash on the short and investments amongst a RMB 6.

Bidding all gross dollar line fit.

Looking forward to the second quarter opportunity to tier 1 and we'll start off net revenue to be between RMB, 2.5 billion and RMB 23, 5 million, representing an increase of approximately $11.7 to 16, 7% pharmacy and close up to June.

The growth to be low we are gross revenue guidance, mainly due to the higher based on the same period of last year, which results of our meaningful cultural transaction chip on Q1, Q2 last year due to the outgoing banking operating.

This business outlook reflects comparable car on a per diem and review our business situation and market condition, which is subject to change and Meanwhile, just our business operations and leasing.

Actively impact by COVID-19, operating and Q1 last year and a meaningful portion of the transaction and sheet to Q2 of last year, which suggests by 2 new clients and accounts initial performance. That's a hope for the first half and you should be 1 force hobble strategically to better reflect our business for price.

Fluff acknowledged where non hits of southern and ticket Inc.

And then new city level growth.

Policy change during the fourth quarter to control the housing price, which may bring back and impact the reach and loan growth and market into shops, and Nevertheless, we believe that this stable relative to the marketing spend tissue with doses and the bulk bandwidth painful on the programs.

Since the Rocky Mountain.

Amounts of customer demands and housing assets market, we believe our industry, leading service will continue to attract more customers and the lowest to mitigate and shortens population cities and.

Conclusion.

With the launch and volatile market Index review.

While our confidence and our growth trajectory.

Our commitments and consistently and from our effort in bringing value to consumers and.

Volume growth, while continuing to support relative mortgage.

That concludes our prepared remarks, we will have large opens the call for questions. Operator. Please go ahead.

And as a reminder to ask a question you will need to press star 1 on your telephone to withdraw your question press the pound or has.

Please standby, while we compile the Q&A roster.

For the benefit of all participants on today's call.

Ladies and limit yourself to 1 question.

And if you have additional questions you can re enter the queue if.

And if youre going to ask the question and Chinese please follow with English translation.

Okay.

Your first question comes from the lineup Elsie Cheng from Goldman Sachs. Please ask your question.

Yes.

Hey, Stanley, it's I'll touch on that.

And you will outlines and soccer Hall this is vishal.

And so Jason at the company.

And with very low single and D.

And so Josh is that was that day.

Total monthly and Jeff.

Consolidated EBIT.

On the cash flow should we think of it got you guys on the cheese.

And of the holdings Raj Dani.

Sure Glenn is telling me and takes you don't and that.

Hi, Michelle.

On Antero will come back with jazz and J P.

And Tim Glenn that when you take on.

And now discern appliances.

Great.

Cool.

Congrats on the headings.

And as Nevada, and does that goes on and.

During today's call phones, so the Costa Inc. Questioning here.

Dividends, which would have.

Hello.

Yes.

Thank you management for taking my questions and congrats on the strong quarter again.

Quick question.

The efficiency and Linda and thank you Kelly.

Kelly share a bit more color, Inc. That GTT Postop world and so as the main drivers of the growth quarter and then second is on antitrust regulations in China.

How does match and then think about the regulatory environment and that impacts our company. If any that is about the macro and housing industry.

And with seeing some tightening and policies and couple of tier 1 cities and what would be the impact from those studies and how should we think about the future trends. Thank you.

Thank you.

Thank you.

Let me clarify.

Regarding our flow efficiency, what Intel off on spot, but the first quarter and qualities of into 1 so average LTV per store increased 163, 3% year over year total quarter sequentially, we decreased 2% our commentary relative to the job year over year increase.

The increase of 182% and.

And the total culture, Inc.

And with chipsets.

Our connected store increased year over year, and bring 93%, whereas copel total quarter equals factset.

Year on year increased mainly due to that.

Because last year on into 2019 operating.

Shutdown all of this and for 1 half months to secure 50 on agents.

Pods.

During the period, we are too.

And the effective talked about quite a while so that's all clock on them.

Meaningful potent transaction share.

And to assist them and reason for the call.

Corporate decrease on.

And towards US just not as normally so I'll Requeue force.

Strong wholesale re Q1 revenue quarter or into the <unk>.

And we have holiday if you look at this.

Q1 was.

Q on Q1 was last Q4, the non core holdings by re meaningful it also re up even though we have these impactful to Chinese new year.

Revenue and backlog quality efficiency and stability and client installed is further plays out that's the traditional low season quarter.

Seasonal first quarter and also much impact.

Is it.

Q1 was do either a robust.

Lumber.

Lost due to a phase III.

And each and <unk>.

And Josh and $64 million to yoga, and meaning that other tonight install and service.

The committee.

And Joe contingency and general Motors and 31% store.

50 million plasma looking forward. This number decreased to 36, 7% and to support that mean Morton some consulting store and pick a platform already passed.

Demand in Brazil.

Expenses by 22% more generically for health possible on price.

And plus the.

And the 50 million product line.

<unk> at your model and.

2019, and visits and the web every constant set out on.

Brian and John.

And from 2019 to 22 day for the paper I'll begin and <unk> reached 11, 2% under collect store efficiency flow with 15% to 16% year over year in the long run.

And we will launch soon and will continue to be various network effects.

The new home sales business development and increase efficiency is important.

And so management and for quality service and customer satisfaction. All of these were quoted and sold digitally.

Regarding your questions before recent on time and cost regulation.

And so pumps and pump <unk> growth consistently operate reaching to the balance of the laws regulations and the rooms.

And we're always prioritized to increase user on a spare no efforts to achieve when we get some suits and all.

Okay.

Based on your sales and so.

And our committed for most of the house. If you are on the industrial devote you solving and the authentic and property listing.

This problem caused by the policy that day.

Balance and the biggest driving to be offsetting costs that you'd see compliance with the juice and the regulations.

On the monthly power on the studies on <unk> governance to regulate promote how CMS is suitable industrial development.

Relative to industry relations towards being more platform based digitalized and art.

Great.

Preventative disorderly functions through cutting investment sandwich.

And by application environments.

Regulation in place promotes and housing development on the industrial and encourage the violence non.

On public sector and pardon me.

So just wrong frequent communication with the government on <unk>.

And as a corporate citizen.

<unk> been multifamily and to take our social responsibility as a top priorities.

And the same tons of governance also gated on better understanding of our business model and the contribution will help me to help the industrial growth and <unk>.

<unk>.

Our deposits to 2 years.

And therefore, presumably welcome supervision compliance and subtracting from customers.

So far we have fixed the problem and it will resolve itself on the hydro dispatch and <unk>.

The same time, we're also very critical.

The regulator on certainly quarter on a study on the guidance on our business and the recognition of water, we have abroad and charging desperate.

Regarding your third question on muscle pardon me and some policy change.

For our understanding the simply couldnt confidence in this year.

Real estate market People's livelihoods and welfare.

August mentioned housing <unk> plus of emulation and adjusted the key policy to promote study and the house and biologics market.

The gold quoted policies and that helps goodbye mark to market and how to punish of Brexit.

Based on that adjustment and use this year on safety is helping introduce aggressively about.

<unk> just matters have effectively prevents martin from overheating and satisfaction.

On the water.

And buyers and reach a fluctuation and throat and force decent market and stable growth, which prolonged the beneficiary by and what make us operation.

From a macro perspective.

What's permanent volume weakness this molecule leasing and <unk>.

<unk> to market and now.

To halt and ultra codes on the multi weighted gross market penetration.

And a economy, especially post pandemic periods of market with reasonable volatility and it's the best market to prevent that.

Adjusted net.

Sometimes people pull forward with future transactions and that this is a very conducive for accretion on the comp as it launches on marketing and all of them such as we do because the big growth, we want along with pharma demand, which is studying transaction volume on the long run we start off on <unk>.

Only during the peak seasons.

On a more macro perspective, obviously, we see <unk> policy into growth.

To curbing speculate and <unk> markets.

And with the goal of squeezing out, but the mainstream demand loans.

The market such as the.

<unk> housing demands on the People's willingness to upgrade demand will.

<unk> graduated release.

Total 50 mile Bobby quite late reduced revenue months of seizures and the worldwide welcome to producing hotels and said it needs to be crews on what's the remaining transaction and most of other states as well. Please do skus and so from fiscal <unk>. If you do not believe mesh and what's transaction volume will be significantly affect.

1 is.

For reference.

Excluding <unk>, our tier 1 cities like Beijing, Shanghai, Guangzhou, and Shenzhen, So our Ptv in March compared with generous do increase of 55, 5% in March.

As a national platform of loans to mitigate this effect.

And we shouldn't and through <unk>.

We are very confident to deliver robust results for the Russell here.

The 19, Israel based on the day program and set a neutral market and with the balance of supply and demand for what's the best Foundation for our long term development and all.

Our cost of development from 2017 since intrinsic also demonstrate paper is a form supporter and the beneficiary of the natural policy hotspot Adv perspective.

Yes.

Thank you.

Your next question comes from the line of Thomas Chong from Jefferies. Please ask your question.

Yes.

And it's all what you and what doesn't work.

Sure Glenn.

And then you start by lean back on 1.

And 1 H E.

And you saw allowable limit.

So our balance.

And we're getting that need that.

Oh look good and bad.

And then El Pilar.

And I will share a woman and kind of Levi I think okay. That's helpful.

On the outlook.

Oh don't share.

And then emerging services outlook dosing sides, and a financial surface exploration on the kind of online sales.

Management, but taking my questions and congratulation on a day. We saw the results. My question is more about the second half outlook as well as the Trian and disciplined sent letters and let me jump and our comments about.

The trend will look like for the GT, the revenue and the profitability together on that.

By segment basis.

Should we think about the trend on that.

Existing home, new home as well as the emerging.

And so if it says look as we come to Jessica and thank.

Thank you.

Okay and to tomo and.

Regarding the first question <unk> second half outlook because of it.

But to deliver effective and.

And financial performance and possibly quarters continued soft IPO.

Looking forward, we have a confidence continued to deliver strong growth for the rest of the year.

Just now and we gave.

On the guidance for Q2 revenues to achieve 2.5 billion.

On slide <unk>.

<unk> Q2, a 15% increase.

So net.

And just to do 1 fundamental corporation.

I'll provide better policy uncertainty.

And then providing housing price are going up to Boston and progression now so just as I just answered the question to IOC, which do solvents and second half our market will be stable and healthy owing to its a rating.

And so people will serve weddings and changed.

250, new and improved.

Be efficient so we do not believe to national 1 consistent volume growth and new accounts. So we are very confident keywords.

<unk> results for the rest of the year.

However on surgery post question.

And for yourself.

Regarding your question for Ross.

Our.

It's weighted on our commission rate so.

So I think this question.

Detroit.

During the year on pulse the level and we share rates accurately reflect the service quality.

And that can efficiency on non broker services expenses.

Good day, China residential market almost.

For these new home revenue home as a market with the competition.

Competition on the balance.

This balance.

On the platform <unk> and deduct on habits of capability.

And total named.

Routines and commission rates results being justified.

So with Coty transaction efficiency.

And number of substantive offer dependable.

Especially for the new home sales market with digital to be markets device efforts.

Volume.

And position.

And.

Just number of calls in our past 4 years on in toothpaste versus solid efficiency and excellence.

Service quality, our new home Commission rate.

Ladies and increased pharmacy volume.

Hi.

2016, 2001, and 2 points on.

Moving forward on it.

The first quarter.

Our.

And we showed for the new home reported 3 months.

Based on that not have an intention to increase our you shouldn't right. We started we were focused on to pioneer with device versus 2 jointly and.

And continuously promote cytoplasm securities.

What's on her way up winds up with catheter.

And your support and opened new compiling process loans to reduce.

And without the agreements and the focusing on SaaS and Paas 3 years, our corporate characterized on the job.

And we share rate Bradley gross from 2.3% on fall.

Paul on <unk>.

This is Paul.

And what the pro formed 1 a line to twofold assignment and the future.

We do a safer changing and commission rates that will continue to rely on the progression of the service quality efficiency and the service we offer to clients.

Regarding your second questions.

Regarding your last question, Paul and worked and so solid financial services on the back.

And therefore the commission let.

Let me talk about renovation and accretion first neutrals and Trinity our.

<unk>.

Resolution declaration and the total contract funding is a 2500 on the weekend.

The units most introduce III.

100 and.

And this Q1, even zone is some impactful and test new policy, but we do.

Okay.

The 51 units and we recently hosted a Congress funding at a number of supportive of number of units accretion complete into the 2 new was while we doubled compared to 2020.

So very important seamless.

A key success factor force acquisition construction vessels on a customer.

Customer acquisition efficiency control over key talents and.

Controller to deferred process and.

Our service quality and.

On this market in China and patients throughout the 3.6 trillion, each and kitchen team and.

And with lower market concentration unfolds weighted index partners.

And that while we pursue.

And that paper, which leads and a huge market opportunity so big growth with her.

Parents.

And fisheries.

And the FERC with us and Splunk.

1 page and customer acquisition, and industrial customer acquisition channel whatsoever and mandates.

Vehicles was largely out of the bonds that are advantaged properties and home transaction, and we anticipate the 6% parcel and home and progression of strong related.

Growth the stronger relative to speculation if demands and in addition, we have a powerful gene on.

The online offline integrated capabilities and the banker <unk> powerful offline Benjamin.

And to have reach offices periods. So we arista and foresee our system is muted in the business demand and continuous data.

Q2 should improve and effectively I mentioned.

<unk> mentioned on accretion and it says and kind of the business and roadmap to assist to grow lines or growth shows the quality of the walk us millions of progress on.

On a 4 hour and network business the growth of industrial service CTV and Q1 beat our expectation this mandate due to our sustainable growth of our new home transaction services, and our stable financial service penetration rates and.

Regarding into a month kitchen regarding some hesitation.

Physician rate on furniture, 6 equal or touched on.

This was mainly due to the fact that the Q1 market and a very volatile on the major cities have on recall batteries recreation adjustments on that.

Consumers.

Right and the other friction costs and new program has been.

We increased the Stephen resides and we saw mentor for clinical services to assist with this new home transaction and how consumers and compete.

Infection. So we have both strategically launched and.

On the scope of bringing pump financial services and some cities, especially so currently total services.

So and so actually refi to wait us over some benefit to our transact and business by providing settled renewable and natural surveys.

Free of charge to our customers and the while Knott's Berry highway to rail line.

Net pocket from social services soon on that.

This is also in line with National policy of hospital, leaving and thoughtful speculation, we will continue to support them and neutral market view and assumes and scope for consumers of.

Hope this clarifies some components.

Thank you.

Okay, well, that's what happened with Roma plenty of data and earn and <unk>.

D or mechanical and border and bullish on our growth will usually year total year stand, though it will be on top.

And bushel home channel when T and beyond.

Posted on the EMEA, we put it on.

Leo 2 million square foot zone.

Good day and down 100 pump.

<unk> total insured as well.

And so on gentlemen.

On the PGM and high on the map.

So you should resource available and diligently debenture that sounds down on high and understandable mio fit on the on the builder sales Mr essential resort resort.

And kind of that you signed.

And only now as it relates to the Donny Central and show interferon Todd and Gerald Johnson.

So as industrial and meal builder loans and icon and Sanjay on the hernia will finally also on the downturn.

Joining me on the downturn.

The high end of quarter.

And I'm not sure Moshe on the future.

Michelle on <unk> and the downturn you're on.

And you'll continue Florida, chemical norland and working with the on trade.

Joining me Eagle and <unk> got some with you guys on Monday and Tuesday.

And on the ultimate Belgium, with alcohol and answers, we're going to push on Luna and <unk> fruit of the Andhra is undrawn and no sugar production total percentage call centers and in the EMEA decent simple EMEA, we signed on a neutral Malone and build upon.

So in our food Johan and financials here, so on Mcginness hills that on on doors do you don't slower CLO, Canada falling line.

<unk> resort.

And the door to reported with so you're going that way.

And on EMEA.

And should you be more diligent on this done.

And do you believe Lasalle builder channel.

And that she chooses to shine on data that was on the economics.

And the Williams and have known as on date on Houston on that beyond that flow.

And if you haven't done a deal flow.

And then tuition shell and you will contain TB, who opened on the <unk> total consumption to the agenda.

So it will include ebay and Paypal since that on that Tahira mace and <unk>, so even Iot to come.

So it was on consumables and central and <unk>.

And <unk>.

Susan.

Hi, Thomas This is Dan and let me at all in terms of our philosophies to develop all of the new business in the future. So firstly when we look at the of the new business, we always look at it.

Potential, it's a big market size and those kind of areas, we notice a rounding offset residential topics there always be some of the big market potentials, such as renovation and decoration and and what we noticed those kind of industry. They always has some of the common 10 points such as the overall user experience.

Extremely low and theirs.

The overall players and that market quite fragmented as well as thats on overall service procedures are quite complicated so based on our past 19 years of experience from the day and gas practice to bake off we believe.

And so transforming.

The industrial Internet will definitely goes to the routine.

Firstly doing deeply and then doing and horizontally. So we'd be due is the only way to do that right, especially when we're doing deep day. It means it will peak.

<unk> depot.

Into that industry and understand the standard.

And and build up a new standard for the services. So in the past 19 years. So we actually got a couple of the takes firstly is what.

And what we used to call the the <unk> III standards right. So firstly is about.

Service provider standard what kind of <unk>.

Services could be causative grew services on how we define that so that'll be the first thing is we can further empower to the service providers in the industry such as decoration and the renovation and secondly is a standard for the overall service procedures right.

Especially for example, like the <unk>.

And no Asian business.

And of the whole construction part and how we can provide the MLP as well as the fire up the new standard for the overall services. It's all week continuous work hub and a third part it was a standout for the.

The standard for the data as well either.

So we notice.

Industries, such as other markets such as declaration.

<unk> sits and market data has been online and it has been digitalized. So that is why in the past.

And the parts pure rate, we really focus on how we can build out the standard and how we build out the peripheral costs as al mentioned during my prepared remarks. For example, we also be without the beam system as well as the other initiatives in order to further increase of the standard as well as our protocols and.

Standard for data.

For this part of business. So in summary, when we look at the new business as I mentioned, so what we always have.

A full commitment as well either.

As well as the in Dalbar to further transform of that power business. So we strongly.

Encourage the.

Investors to look at our efforts for the new business at least on the 3 year spaces, right, So and that will give us more confident to continue and.

And prepare more efforts to further transforming after new business in the future. Thank you.

Thank you.

Your next question comes from the line of Joe <unk> from CIBC. Please ask your question.

Thanks, Danny Telco next day, Sasha and keeping yeah go ahead I'm on.

And I believe and emptiness, you're growing on mission.

And actually comes in.

Antonio and Xiaomi.

Yeah on the line how does your demand and will continue and.

I think Tom should come down and see that you're doing that.

And question Julien.

And as you know on getting that.

Alright, Thanks, and I'll kind of go flat can you guys haven't day.

And what kind of and you should.

And you can do on it.

Is that way.

And thank God.

And I think a share a blanket.

That's all on that.

And I kind of Ione ph and he got on.

And then the leash and sheltering and talent.

Net Gallo and Genocea Guang on announcement day count.

And then sandy.

Got it.

And then very choppy with Georgetown.

And then and it sounds good.

And I can.

And credit.

Yeah, Hey, Jonathan on China.

Sure no share alright, thanks, and thanks to the whole Glenn Worman.

And I can't Cowen and company.

And I don't know.

Yeah.

Number.

Your line.

And he's a former want more simple well non core EPS.

And it sounds like regarding Pyeongchang.

So I think and no 1 quick question.

And me.

And thanks for taking my questions I have 2 questions.

So on its way.

You can see that new home transaction.

And the entry of new homes.

And business relatively lower compared to existing home transaction.

And there are more cash.

Market.

What do you think line.

Core competitive advantage.

And what's your strategy to protect and gain more market share and second question and I think.

And Doug.

And that compared with the property that is comparable and cooler heads.

On the patient match and buyer on the leap day.

And adult profits and service company.

And then heads of state and local like Japan and tie to anything here.

Property owners and along with our ATM and team.

To involve more payers around the country that machine going downhole products and services company. Thank you.

Okay. Thank you regarding your first question is false and new home.

Themselves that Barbara competency.

And the swamp across both positively and let's just say as we've mentioned year on year cost rack up the based on fluctuating sales to be multi layered on June 2.2 saw industry on the sites and that's an old underway <unk> welcome Mark banners on tier 2 decided revenue while hop gross and kits onboard and even more.

And you stay the batteries and party should our strategy and it rid ourselves and.

Bump equal.

We do hope Chicago, and sauces with Irobot to make this industry better environments for agents and increase efficiency and improve deposits experienced for the housing transactions.

So far we do rollout services zone.

Our sales teams this license on fair competition, and the capital base and <unk> function, such as the setting low commission rates.

Based on.

So-called on realistic a funding valuation promised this is approximately force competition and for.

Which is Nate hope with deep understanding of how to do business with a view on transactions.

And the ease of Pos and last year was the Mega Internet Party unchanged industrial was high profile.

Which ended up versus acquisition assets is approach to Russia and that so it's a core competence of the new home business and way to instincts deposits kind of on a bulk agents balance.

And the agent base increased and timely payments.

In April.

1 we paid $4.3 billion imaging and the boss Juicy couture to AWP and secured the agent interest and make sure that people would walk it's money and time. The second is dependent on our customers improving the customer experience and new home buying process on that.

For multi industry data, putting it on period et cetera to assist and what do we have on continuous or do we also were not appropriate at this moment, but we are already on our way of doing so.

So well start that way.

So consummate paperwork only focused on the online and inflammation beauty and.

And so it should become even more closely with the providers to build out all demand and better sales office.

Afterwards, Bryan and install sub basin with total promotes customer flow.

And of course of the call.

To further penetrate gross would be at GAAP with locomotives.

And due to strength on the projects.

And due to flow to soft.

Okay regarding the second question for the 2 homes.

Blacks basis.

<unk> force.

Keeping others. So this is nothing new to Owens, the so-called Skus and older issue and just market and passenger yields which we attribute to this on a kind of normal leakage lost more business.

And we call Justice this model.

On a strategic model.

We have always believed our advice and we insist on providing quality service on dosing scoot.

China consumers consumer and wealth bonds with boots on the street, which has been also verified by our partner might be useful features on the for those who want to take advantage funds skipping all their whether it's their property.

Property management companies or other companies, making ultimately punished by zone.

Market liquidate jet trends market unchanged, the euro balance between supply and demands and sue.

Demand for the quality of service, while Reits fourth.

On the consumer loans, and primarily to support growth call. It service provider based growth profits.

The business volume so the skip all their will also decrease which will now operating with skip the net impact tourists into future.

Both sung <unk>.

And actually.

So I do have some local.

Local committee advantage that is.

Difficult to provide consumer with the most comprehensive social and produced the most owners will not change Haas and test and components such as a common projects.

The observation of the cash.

And much of complex and therefore is not listing on the salt.

Adjusted same tons of real estate developers do not have the ability to haul fleets and most professional and efficient service provider and the real estate brokerage industry, Therefore form based model.

Okay, it's difficult for the proxy and multiple copies to generate liquidity for growth for the purchased services.

Okay.

This company is a prudent volcker comp reform and assuming all months and the damage to owners.

Interest and according to the single codes to owner has their own rights to.

Both.

Of the approximate 2 companies Inc.

The longwall and going to be.

And on the Pops mentioned, we touch on China balance sheets to counter that people.

And the positive comp on OLED is often while the study where it can be on <unk>, so, possibly imagined commvault and provides.

Provides the consumer with good service by policy will not turn submission competition by keeping on cardholders from their consumers.

Consumers.

Also worldcom.

The average contract with the leading companies.

And.

Fall of 'twenty to build up on the street and the residential services. Thank you.

Yes.

Okay.

Your next question comes from the line of <unk> bin Ding from Jpmorgan. Please ask your question.

Go ahead and thank God.

And I wasn't quite as LNG.

And so changing.

And you go to the lines and that May revert and Tony and Seneca.

Declines in payable bakery.

On the whole Eagle and congestion and clients I don't run and you'll call out because it will just homes put them on the double and show them on claims and EMEA without the demands on us.

<unk> volume.

And you see a potential net.

And you had a clean.

And just so I apologize at the balance.

And just out of it.

Thiago and solvent and some claims with the teams and that does it.

And easier because some of the LNG personnel and will put new loans.

And she convergent between volume and you could keep them on the business and it's also affordable and.

And although the entrepreneur sounds debacle, and kidneys, and Jaime and sales.

And it goes on.

And what should I put it on.

And most here shortly that stringent on again on <unk>.

And our chairman and myself quickly on.

2 questions so the.

And noticed that recently, the maths and up and you could make some comments on weibo and regarding the industry as well as broker so.

And so my first question on those and pull up our antitrust.

I know from a market share perspective, we are not.

Apparently not.

And our best dominant position and the market, but in aspects of our processes.

It's closer to the highest potential and each has their risks and you'll be second question is related to competition.

So Paul and competitive ankle, where the changes and there isn't the competitive dynamic, including the lifting up and you could bring.

And any changes or making it become more aggressive and subsurface and operational strategies. Thank you.

Okay Central Covid.

Regarding your second question total antitrust and IBD why have already gave a very clear answer on the Capex share will answer question, Bob <unk> Goldman So regarding your first question.

And I should say, our Chico used to be on a leading online information and China.

And it verticals.

Sps poorly and gone to accumulate online user traffic on the used to establish some competitive advantages and desirable.

Just like in <unk> house, and more at the home total assets as well so fellow industry participant and we have with respect.

Normally we're June comments other theatres performance directly.

And I'd like to take the chance to share our view on how to be a capable consequent julien.

Health and protection in China.

Maintaining and providing lots and predicting is not optional.

Okay, It's the foundation for growth or real estate transactions.

Eliminating authentic on the free Christie marks the beginning of the successful and the business model to Society and Boston mentioned upon what the upon choice 1.

Slide new home protected walkways people should compare to a comprehensive on the strip risks.

<unk> maintenance.

Which is really key.

Requirements scale of the project.

Reasonable commission rates to incentivize the agents on.

On the solid payment Copa.

As well as the positive cash flow of the beds and this operation otherwise on the fifth model is not sustainable.

The third.

Comprehensive risk assessment system and tax paid on these units offline operation Force policy accounts receivable turnover days and.

Pocket broad commissioning and the ones.

And it was agents increased.

Citrix and monitor on the free relative to repay and the customer intercept and particulars.

This is a long way to recover.

So competition, so it's a short and behaviors such as zone.

And secondly, emission shelving and lower price well brings the highest.

And it's model and the long run.

<unk>.

And so forth competition on the vehicle.

Once a day off the market.

So weighted.

And the 1 simple answer for you. So we're not just the cash position must be a bottleneck bungie posted growth new home business.

Doing new home fitness and across strong acquisition volume.

And <unk> according to LNG growth prospectus as of February to date.

'twenty 'twenty 1.

And so for LNG gross cash cash equivalents and the short investment the total market to RMB 163 billion.

And the same period, a day project paid admission into the balance of RMB, 4.3 billion to agent to secure day or intra.

And which covers 106 thinking and.

And 130000 payments and recover by itself and the 18th per day bump.

And to Apple to Apple basis, our cash cash equivalents and short term investments amounted to RMB 40.911.

So on the true what rich on certain types of bunch, Inc.

Regarding recent noises from LG and bar on social media.

A relapse and permanently will he goes slow we go on don't waste time on say Scott operator, that's most of that question.

We are now open.

We are now approaching the end of the conference call I will now turn the call over to your speaker host today, Mr. Matthew Zhao for closer in line.

Thanks.

Thank you operator, thank you once again for joining us today.

And any further questions. Please feel free to contact bakers and maturation teams.

The information provided on our website. This concludes today's call and we're looking forward to speaking with you again next quarter. Thank you and goodbye.

Today's conference call. Thank you for participating and you may now disconnect.

[music].

[music].

[music].

[music].

Hello, Ladies and gentlemen, thank you for standing by for a K E Holdings incorporated.

First quarter 2021 earnings conference call at this time all participants are in listen only mode. Today's conference is being recorded.

Turn the call over to your host Mr. Matthew Zhao IR director and off the company.

Please go ahead Matthew.

Thank you operator, good evening and good morning, everyone. Welcome to <unk> Holdings, Inc, albeit because first quarter 2000, and Honeywell earnings Conference call.

And so companies financial and operating results were published in the press release earlier today and are posted on our Companys IR website, www dot <unk> dot dot com.

On today's call we have Mr. Stanley on don't help our co founder and Chief Executive Officer, and and meets their culture, our Chief Financial Officer.

Mr. Paul and will provide an overview of our strategic and business your balance and and Mr. Hu will provide additional details on the company's financial results.

Before we continue I refer you to our Safe Harbor statement and our earnings press release, which have ties to this call as we will make forward looking statements.

Please also note that because earnings press release and these conference call include discussions of and all of the GAAP financial information as well as I already and non-GAAP financial measures.

Please refer to the company's press release, which contains a reconciliation of the on all these non-GAAP measures to comparable GAAP and matters.

Lastly, unless otherwise.

Otherwise stated all figures mentioned during this conference call I need to be.

And.

With that I will now turn the call over to obviously youll meet their standard Paul. Please go ahead.

The central message and Hello, everyone and thank you for joining us today.

Our first quarter 2021 earnings conference call.

We are very careful to have a lot of cheap rational and our financial results in the first quarter there considerably.

This presentation.

2 the tailwind from China's growth.

Robust economic growth following the COVID-19, pandemic and and adhere hearings on the National policy housing for leaving another force stipulation and.

As well as our unwavering focus on the long term goal of delivering excellent consumer experience through quality service.

Our total our total GTD grow rapidly to win on all 7 training on the up 224, 2% year over year. Meanwhile, the salary hosting.

Virtual cycle on efficiency on a state and scalability through them on quality of service was further enhanced on our platform we.

We continue promoting industry digitalization by further building on line infrastructure and the first quarter. Our housing dictionary contains data for over 200, and under 44 million homes, and China average I may use including our platforms apps on the retail of mini program.

Yes.

Rich.

And <unk>.

And 48.5 million, he and the first quarter up 78% year over year, Larry and his pension from our network scale also continue at a robust pace, while we remain focused on the quality of our net awards by the annual order first quarter on the total number or commodity stores reached.

On a 40.

40, a solid and a.

700 and up.

<unk>, 4% year over year, Similarly, and a win win and collaboration amongst us and our brands continue to prevail on our platform and the first quarter <unk>.

And 17, 6% of transactions on our platform were completed and so cost or collaborations and the transactions completed through cross brand collaborations remains steady at 36% on our platform, while Connecticut Storrs account.

For 83% of existing home listings. In addition, we continuously supported our Canadian stores, and our brands and recruiting cultivating and retaining agents in the first quarter, which led to a 41, 8% year over year growth over a number of.

And it's on our platform reached a total of 400 and.

And <unk> a solid.

With that overview I would now like to provide you with some color on average our existing home transaction services business total CTV or existing home transactions and China grew 133% year over year in the first quarter. The substantial gain was in part due to the low <unk>.

Base in 2020 caused by the FERC on up.

So we are impacts of the pandemic as well as the impact on some structural transaction growth and the original level on.

On our platform CTV and all the existing home transaction rich.

On a 617th Street.

Before moving on and RMB in the first quarter, increasing 244, 2% and a union storage CTV or existing home transactions achieved 174, 7% year over year expansion and continuously improve service quality and efficiency <unk> stores with the <unk>.

Primary.

The driver of this robust gains in the first quarter, we initiated and agent and specialization strength strategy, which encourages agents to focus on.

And either existing home sales new home sales on home rentals, rather than traditional mix assumptions in the industry added by the Coop radio milestone and we thought among hedges along with clearly defined roles and the performance base Commission and location and the kind of zone.

This strategy helps agents sharpened their focus and cultivate stronger professional service capabilities promote efficiency efficient and customer conversion across different offerings, and ultimately improve store efficiency and the consumer experience the agent and the specialization strategy has proved.

And very effective natural hedge.

Hence and consumer areas and our store efficiency, taking the pilot city on Hangzhou As example.

<unk> thousand and were assigned to different rose in the first quarter unit storage CTV was 11% higher in the store where agents specialization was implemented compared to stores that have not divided agents functions by the end of the first quarter, we had implemented.

And at this mechanism in 2000 and cities covering 17.

And the 800 stores given the encouraging early results we plan to adopt this strategy in batch and at least 30 cities this year and in order to create value for our consumers were installed.

When's that further and improve their real estate.

And process, we began opening offline contractor service centers and in our major cities. Our goal is to further guarantee transaction security.

Dreamliners and signing process and enhance the efficiency of Mt.

Parties that real estate.

Chart, and the signing process tends to be a very complicated and OLED and OLED requires comprehensive knowledge across financial and legal and tax.

The lack of professional service offerings that fill this needs lapsed consumers and post 2 transaction risk our contract flow with center address exactly this pinpoint and <unk>.

And become the go to location for comp.

For customers regarding all contract and Larry as services. The process is completed with a professional contract manager to ensure compliance and a full risk disclosure, which provides a safe efficient and convenient and contracts EPR is well on customers on and of the first.

Quarter, we have opened.

74 contract signing and service centers in 21 cities switching gears to our new home transaction services and the fourth quarter CTV for new home transaction increase on.

19.6.

Percentage year over year in China, which was actually attributable to the low base non theatre as well as developers strong incentive to accelerate.

Sales through CTV, or our new home and transaction services was 343.4.

And for billing RMB up 194, 9% year over year, driven by the 220 <unk>.

And CTV growth on Canada stores and other channels as we continue to enhance the efficiency and the professional training to our agents.

And on par with with with our stellar financial performance. We also made substantial strides in new home transaction, and digitalization content and enriched and ecosystem and governance this and to empower service providers, such as developers and and.

And continue to enhance our service quality and and maximize value for the customer as we communicated during our first quarter fourth quarter earnings call. We are dedicated to build online content for new home transactions to improve the consumer experience online penetration and the facility.

This segment's digital.

Transact transformation and.

And 1 much sorry, 1 way rich comprehensive and multi dimension no information for more than.

Consulting new home sales projects on our platform covering 34 cities and offerings consumer with more online information such as 3 D property pool property book through data processing, together with platform and AI and ready online content, such as evaluation and assessment reports.

And housing layout planes, we were able to better identify the consumers' needs for new home online information. We also optimized on new home sales channel traffic and lease acquisition strategy sense to all of this initiatives reach and already on average a 10% increase and new home customer list and those.

And those 34 cities in the first quarter and a significant since significantly enhanced the online endurance for customers more.

Rover, we launched a new home business conduct improvement plan to advocate for a transparent and a healthy new home sales environment based on government governance, and a better collaboration mechanism in the new home transaction services.

Our goal is to facilitate a fair SaaS and efficient and orderly ecosystem for the new home transaction services that address the improper proud is that and how is this for a long time, such and fishers competition for customers customer information linkage and the <unk>.

<unk> rebates are promoting governance mechanisms and the industry, including rules.

And the protocols as well as our capability to implement.

Implement them.

And to pretend agents rights and all of our sales on security and the certainty to them. Eventually this will substantially protects the legitimisation interest both developers and the improved agent efficiency and the income Inc.

Enhancing the customer experience and to create and <unk> cycle that enhance the overall operating efficiency of the new home industry and the first quarter we implemented.

Our verification system.

And to the agent level and have put in place city level supervision teams. We have also signed agreements with 19, 1% of developers on our.

<unk> platform on.

Tom's, making a firm commitment to the developers and the overall industry for new home for new homes and other important initiatives as the new home sales empowerment plan.

Cultivating dedicated agents with the EBIT.

And if price.

On new home transaction services, as well as online and offline for the spectrum customer acquisition capabilities.

Plan caters to consumers different needs when purchasing new home projects compare with existing hubs at the same time the portfolio of new home sales channels. We offer to developers is further enriched better meeting their needs for more focused and efficient sales channels.

Lastly on our in merchant services, we have stair.

And steady steady progress in home renovation services and financial services, We completed 451 home renovation unit in Beijing, and the first quarter while program progressively.

Iterating the infrastructure, including multiple step developer.

And our self developed systems.

On them, our self developed and what beam system version, 1 was launched in the first quarter as part of the industry infrastructure. The payable beam system successfully digitalized home renovation and decoration design for designers that beam system enable automated automatic drawing.

Outputs accurate accurate real time quotation and the generation of digital appeal on materials bonds as well as accurate via our design efforts supported by the VR capability available on our platform. This not only solve the industry wide problem.

Visual mineralized utilizing and translating the abstract you learn from the designer's mind, but it also lays out the foundation for the final.

Construction and visibility with higher enhanced data accuracy for customer fleets gradually.

We are forcing the notion that on our platform what you'll see is what you will get and empower them to take control of renovation.

Innovation costs and real time the service.

Reliability is greatly enhanced we believe we have established the industry, leading position and the infrastructure, we provide for home renovation and decoration and including our system products and applications for both consumers and service providers in terms of financial services.

Recognizing 16% of our sellers in the new home transaction have on demand for property.

We are promoting the engineered bar products to meet owners.

Redemption needs for more efficiently.

And Ed to average 26% decrease in cost.

And the end of the first quarter this product.

And <unk>.

Enter 6.7 cities improving the overall transaction experience for homeowners.

Existing home transactions in summary, 2021 and is off to a strong start with financial our financial and operational performance as both large and at our core strengths and and we continue to gain.

And traction with our ASC and network in new and existing home markets. The National policy on houses House House and thoughtfully for Lilly novel speculation that underpins the foundation for steady and healthy and real estate market provides edyta supportive to our mission.

To transform the housing transaction on a service industry in China going forward, we will continue evolve our business and invest in initiatives close to our core while creating a new and better normal for the industry building trust and and increasing value for everyone along the way.

With that I would like to turn the call over to our CFO <unk> <unk>.

<unk>.

A review of our financial.

Our first quarter financials. Thank you.

Okay.

Thank you all of our flow Jr.

I'd like to provide a brief overview of ballpark, let's call it opportunity to review our financial results, while based on to be able to offer a strong quarter on financial results marked by high revenue growth and strong profitability.

Our net revenue increased by 194, 7% year over year to RMB, 2.3 somewhere in Q1 exceeding both hands on par with either on the street consensus.

The rapid growth of on net revenue through and by volume growth of 254, 2% year over year to RMB, 1.7 trillion.

The high gross revenue and the fourth quarter and continue to do work for migrate agricultural lowered base sales.

January of last year on the income.

Ill.

However, also spearheading the <unk> tend to be weighted in Q1.

Net revenue in Q1 due to pop right and we can post Q2, and Q3 of last year and the only.

Deposits single digit on a sequential basis, demonstrating the strong momentum of pulp plant growth.

And in particular.

Our net revenue profits and home consulting services increased by 200, and the 2.1% year over year to.

To RMB 10.2 billion.

Relative to 244, 2% yogurt and Chris and Ptv.

Home construction to RMB $673.4 billion.

On net revenue on new homes and services increased by 187, 6% year over year to RMB 9 operating well.

On rate due to a 194, 9% giveaways and Kristine <unk> of new home transaction to RMB, $343.4 billion and cure.

On net revenue from merchandise and services increased by 96, 2% year over year to RMB, Daryl participated and Q1.

The decrease was primarily due to increased and CTV or financial services housing and services as.

And as well and increased number of Oklahoma region, and unique competing suites comp price.

<unk>.

Cost of revenue increased by 140% year over year to RMB 59 billion in Q1.

Gross profit increased by 864% year over year to RMB, 4.8 billion Q1.

Gross margin decreased to 23, 3% from 7% and Thats imperial to defeat the.

The increase in gross market, mainly attributable to a lower peso and third and fourth quarter, often contingent on the E mail, calling us and operate.

Operating expenses were RMB 3.

Q1, compared to RMB 2.1 day.

Cereal syngenta.

General and the other is ticket expenses Wahid, 2.1 period and got.

And to RMB, 1.1 billion and Purion since utility.

And then due to the increase and Python as well sharpies competition expenses.

Sales and marketing services were RMB, 1.1 billion compared to RMB 577 million and period since utility.

During Q2 and increase the online offline.

And that's on the front end and teams.

Research and development expenses were RMB 600 million.

And Q1 and.

Therefore on the 451 million exists and Purion <unk>, mainly due to the increase of Paypal, Inc.

<unk> R&D plus not as was Inc. With the sharpest competition expenses.

Income from operations was 1 period in Q1 compared to loss of accretion on day 1.

And Purion strategy.

And while brick market growth.

4.9%.

Hawaii and <unk>.

And Matthew J, 2.9 percentage and Purion <unk>, primarily due to the increase of net revenue and empower quoting back and offering lots.

And last Q1.

Excluding non-GAAP items our cash.

Adjusted income from Operation was RMB, 1.6 billion and Q1 and.

Cash flow.

Loss from operation of <unk>.

RMB, 1.5 billion.

Zero.

2020.

Adjusted operating market was 7.6 and Q1 and got some massive 28 and 7% Purion <unk>.

Adjusted EBITDA was RMB 2.0, and Q1 compared to last few RMB, 1.2 billion.

And the same purion and strategic trend.

Latin America was RMB, 1.1 billion and Q1.

Net loss of 1.1 to get into superior to GTT.

Excluding non-GAAP items.

Our adjusted net income was RMB, 1.5 billion compared to adjusted net loss of RMB, 1.1 billion and sustained periods of strength.

Net income attributable to Crow Holdings, Inc. Ordinary shareholders.

RMB, 1.1 billion in Q1 and.

GAAP net loss attributable to Crow Holdings, Inc. Ordinary shareholders of RMB, 1 on non beauty and <unk>.

<unk>.

And net income airports, who are holding inc.

And the RMB, 1 pocket and Q1 GAAP to adjusted net loss attributable to peripheral unique RMB, 1.1 period and definitive.

On June.

Diluted net income for GAAP assets for <unk>.

And indeed ordinary shareholders was RMB Daryl.

And Q1 adjusted last Q3 non.

2 centuries to GTT.

Adjusted diluted net income attributable to peripheral vision and re shareholders was RMB 1.2 filings 1.

And best and vacuum RMB 3.4.

And it's been Purion sensitivity.

As of March 2021, total balance of cash cash equivalents.

Cash on the shop and investments amount to RMB.

2 bidding all U S dollar line quite a bit.

Looking forward to the second quarter opportunity to tier 1 and we'll start off net revenue to be between RMB, 2.5 billion and RMB 23.5 million.

Representing an increase of approximately $11.7 to 16, 7% promised and cross sell opportunity.

The growth today low growth rate revenue guidance, mainly due to the higher based on the same period of last year, which results while meaningful cultural protection on Q1, Q2 last year due to the outgoing banking operating.

With all of the price complex Carnival and review of the business.

Situation and market condition, which is subject to change and Meanwhile.

I appreciate on leasing.

Negatively impact by COVID-19, operating and Q1 last year and a meaningful portion of the transaction and sheet to future of last year with adjusted to new clients and concur and financial performance. That's a hope for the first half of statistically what was it before.

Total strategically to better reflect our business for price.

And what acknowledged with non pizza and ticket.

But with the new city level and parts changed during the fourth quarter 2 critical overheat holdings.

Which may occur and that could impact the regional growth and market the shops and nevertheless.

We believe that this stable growth the.

Marketing spend and tissue.

And the bulk of Gabon, and painful and Holdings Inc.

Right.

And so on.

We made the net housing assets market, we see our industry, leading service will continue to attract more customers and the lower to mitigate and shortens population and 2 cities and <unk>.

<unk> with.

With the launch and all the marketing HCV, while confidence and our growth trajectory on.

Our commitments and consistently enhancing our accuracy and bring value to consumers and will be.

Volume alone, while continuing to support real logical.

That concludes our prepared remarks, we will act now to open the call for deposits.

Operator, Please go ahead.

As a reminder to ask a question you will need to press star 1 on your telephone to withdraw your question press the pound or has.

Please standby, while we compile the Q&A roster.

For the benefit of all participants on today's call.

Ladies and limit yourself to 1 question.

And if you have additional questions you can re enter the queue. If you have.

Going to ask the question and Chinese please.

And follow with English translation.

Okay.

Your first question comes from the lineup Elsie Cheng from Goldman Sachs. Please ask your question.

Okay.

Hey, Stanley Zone Hustle and.

Matthew on lines and social hall spaces.

Your line.

So Jason and the company is about.

And with very low single and seen a day.

And Joe Josh is that was that day.

Ladies and gentlemen.

And salaried employees attrition can combat ships.

Should we think on Saturday and Sunday Chicken of the Holdings, Inc. Raj Dani.

Sure Hi, Glen and Sterling edits, you don't and that would get a hydrogel.

On answer will come back with GDP and Tysons.

And if I don't Don and Tim Glenn that you take.

Sure.

And with Houston, Atlanta, and Chicago on Pilgrim, Donlin and <unk>.

Hello.

1 was on the Chinese.

And this is Nevada and.

Is that good question. Thank you Alicia and joining today's draw phones. So the Costa Inc. Questioning here.

Dividends, which would have.

Thank you Jeff.

Thank you management for taking my questions and congrats on the strong quarter again I'll ask the question. This is Paul efficiency and Linda and Thank you story Kelly share a bit more color, Inc. The Genie Postop world and so as the main drivers of the growth quarter and then second is on antitrust regulations in China.

I'll, just mention and think about the regulatory environment and that impacts our company if any.

It is about the macro and housing industry.

And some tightening and policies and couple of tier 1 cities and what would be the impact from those studies and how should we think about future trends. Thank you.

Thank you.

Lastly, regarding our flow efficiency volume dollar volume, but the first quarter and quality and shifting to what the average <unk> per store increased 163, 3% year over year.

Total quarter.

Actually we decreased 2% our chromatography brands on to the job year over year.

Increase of 182% and.

And the total culture.

Our calexico and increased year over year and drill 93%.

Total total quarter decreased 5% year.

Year over year increase mainly due to that.

Because last year on into 2019 operating.

So I don't know this and pull 1 half months to secure 50 on agents.

Net.

During the period, we are too.

Patrick talked about quite a while but let's hold off on them.

Meaningful total production should come through on this.

And the reason for the quarter over quarter decrease this volume towards us as non us normally so I'll Requeue force strong wholesale re Q1 revenue quarter on Youtube.

During the holidays.

If you look at it.

Q1 versus the <unk>.

Q2 on Q.

Q4, non core deposits by remaining will be positive.

And so we have been impactful to Chinese new year.

Revenue and backlog quality efficiency and stability and can I just stop is further phase out the traditional low season quarter.

<unk> fourth quarter and also much impact.

Is it.

Q1, we still delivered robust and soft.

And number of.

Lost due to our history.

And each and <unk> stockpile refundable fee and Josh Andrew 6.4 million.

He is a potato and meeting the other tonight install.

The committee.

And Joe contingency and general Motors, and 31% store up 15 minutes Bright line looking for this number decreased to 36, 7% and to support that.

Motive some consultants volume pickup.

<unk> already passed.

If demand and for asthma and <unk>.

Dissipated by 'twenty, 2 deposits, both genetic ourselves on price and.

The 50 million product line.

<unk> at your model on that.

2000, and Nike and visits and the web every constant and set.

We're proud of being GAAP from 2019 to $20 a day for the paper I'll begin and will be reached 11, 2% under class stall on efficiency flow reached 15, 2 percentage year over year in the long run.

We will launch soon and will continue to be very net worth effects.

The new home sales business development increased efficiency of the reported.

And so management and so quality service and customer satisfaction all of these forces and stall efficiency.

Regarding your questions before recent on tide talk regulation.

The pumps pump and plays a big growth consistently operate with into the balance of the laws regulations and the routes.

We have always prioritized to increase user on the spare no efforts to achieve when we saw suits and all GPU.

Okay.

Bakery sales and.

And so our committed for most of the housing department and industrial.

The vote, you're solving and the authentic and property listing.

This problem caused by the policy.

Demand balance and the bakers driving to be offsetting cockpit and compliance with the juice and the regulations.

For the month holiday power on the study the antitrust governance to regulate promote how CMS and suitable industrial environment.

Relative to industrial regions towards being more platform based digitalized and automated.

And to preventative disorderly functions through half 2.

Investment sandwich and operate.

And by application environments.

Regulation and placed promotes and house development for the industrial and encourage the violence.

On the public sector.

So just wrong frequent communication with the comment on <unk> as a corporate citizen.

<unk> been multi chairman and to take social responsibility.

Top priorities.

At the same tons and governments also.

And on study of our business model and the contribution will help me to help industrial growth.

<unk>.

Our deposits to tears.

April to June well pumps and supervision compliance and.

So starting from customers and pop.

And so that we can fix the problem and it.

And with all itself on the hydro dispatch the start.

At the same time, we're also very grateful to regulatory officer, Keith water on a study on the guidance on <unk> business and recreation of Wood, we have abroad and general industrial.

Regarding your third question on muscle holdings.

And some policy change.

For our understanding the essentially holdings conference this year.

The real estate market relative.

Post livelihoods and welfare.

And so where August mentions housing for DB classification on the adjusted that.

Policy to promote study and the house and biologics market.

The gold quoted policies to protect health care by amongst market and cloud to punish of Brexit.

Based on the documents and need this year on <unk> excuse and rapidly miles.

This matters have effectively prevents and market from OTT and satisfaction on the Walter.

Covid and meyerson and reach a fluctuation on the road and posted that market and with a stable growth, which proactive beneficiary from a 4 day cutoff region.

From a macro perspective.

<unk> 1 with this molecule.

Please if you have towards the market and now.

To halt and ultra coats and the moderate growth market penetration, just kind of economies, especially post fidelity and periods of market with reasonable relative to the best market that should prevent that.

But it's and the top sometimes people pull forward on future transactions and.

And this is the very conducive total accretion of hopkinton launches on what can be all of such as we do because the big growth we want.

Along with government and demand, which is steady and transaction volume on the long run we set off and treating only during the peak seasons.

On a more macro perspective, obviously, we see OLED <unk> policy and into 2 currently speculate 50, Boston market with.

And with the goal of squeeze and ops, but the mainstream demand growth.

The market such as the <unk>.

<unk> housing demands on the People's willingness to upgrade demand will.

We will be gradually released.

Total 6 demand will be quite deliberate lesions and remaining months of the year the worldwide welcome to produce it.

And each will be crudes on what's the remaining transaction and most of all their safety as well as these new skus. So from physical supply volume do not believe mesh and what's transition volume wealthy and the effect.

1 of the.

Robin this is putting the GCB, our tier 1 cities like Beijing, Shanghai, Guangzhou and Shenzhen, So our CTV in March and held a generous equal to 55, 5% in March.

As a national platform of loans to mitigate this effect, but we shouldn't Youtube cities and Baker.

We are very confident to deliver robust results for the vessel and here.

The 19 states feel based on the Doj.

And Portland, and set a neutral market and with the balance of supply and demand for what's the best Foundation for our long term development.

Our cost of development from 2017 since intrinsic also demonstrate the playbook is a form of supporter and the beneficiary of the natural policy hotspot evening low cost effectiveness.

Thank you.

Your next question comes from the line of Thomas Chong from Jefferies. Please ask your question.

Yes.

Let me turn on.

It's all what you and.

And what does it went quite well.

It's not up on land.

Good morning.

Well, let me start by.

Our land holdings.

And we're going to need.

You bet.

Look Leigh.

And then El Pilar.

And.

I will share a woman and kind of Levi I think okay. That's helpful.

On the outlook.

Sure.

Emerging services outlook.

And so surface congratulation on the kind of on them.

Thanks management for taking my questions and congratulation on that.

That's all results.

My question is more about the second.

And so what about the trian, but at this point.

And that led us and learn.

And then a comment about the.

And the trend we will look like for the GT the revenue and the profitability together on.

On the buy Scotland based on <unk>, how should we think about the trend on that.

Existing home, new home as well as the emerging.

Look as we come to the second half.

You.

Okay, and could Soma and the.

And regarding fast question <unk> second half outlook.

Because of the.

<unk> has delivered effective price.

And this financial performance and possibly closely and continue soft IPO so looking forward.

Confidence continue given the strong growth for the rest of the year.

And just now.

On the guidance for Q2 revenue certainty 2.5 billion, which is going to be please.

But this year was.

And with Q2 FCC percentage increase.

So.

And just to do 1 Continental Corporation.

Although the actual policy uncertainty.

And then providing housing price performing up to Boston progression now. So just just answer to question, 2 IOC, which do solvents.

And second half of our market will be stable healthy owing to the right.

On the peoples weddings and changed.

250 million book to BB.

And so we do not believe to national 1 consistent volume growth.

And so we're very content delivered robust results flow, but some of the year.

And that's it.

And so 2 part question.

And.

And your question for Ross.

Our hit.

Hit rate on our completion rate. So I think this question.

Detroit.

During the year on pulse the level and lesion rates actually recapture and responsibly.

Efficiency and number of services strategy offer.

Good day, China residential market.

Both for these new homes and the new home market.

And competition.

And the.

Platform comes out on that.

It's a capability actively controlling namely routines and commission rate without being justified.

The service quality.

And efficiency and the number of subs currencies offer does not and dependable.

Especially for the new home sales market with digital to be markets device efforts.

Dominant position.

And.

And just number of pulse and all.

Our full year volume to paid versus solid efficiency on absolutely.

And service quality, our new home solution right.

Ladies and increased pharmacy volume.

Bob.

16, 2 points on 1 and $2.74.

And the first quarter.

Sure.

And we show it for the new home to be non.

Based on GAAP does have a leading patient and to increase our commission rate. We started we were focused on to pioneer with <unk> to jointly.

Continuously.

Private securities and so.

What's on hold with winds up with catheter.

Partner support and open new compiling and process that and this has reduced.

On the payments and the 4 between Homesites and past 3 years, our corporate characterized on the job.

And we surely quietly gross 1234 on the license Paul.

And wadley on 1 a line to too far on site in the future.

All we do updates are changing and commission weighted while continue to rely on the progression of the service quality efficiency and the service we offer to clients.

Regarding your second question.

Regarding your last question, Paul and work with US our financial services on the back.

And therefore the completion let.

Let me talk about the renovation Parisian and first <unk> hour.

<unk>.

Resolution <unk>. The total contract funding is a 2 day 500 on the weekend.

The unit most introduce III.

100 and Inc.

<unk> Q1, even if there is some impactful test and.

And the reality, but we do.

With the 561 units and we recently.

Post the Congress funding that's a non.

<unk> support of a number of unit that ruche and complete and introduce new was what we talked about comparable to 2020.

Very important senior so we believe that Keith.

Third and fourth acquisition construct and assessments.

Customer acquisition efficiency control over key talents and.

Controllers, and the board process and.

Carlo.

On this market in China and payments.

<unk> 3 trillion and <unk> and.

And with low market concentration and concentrated index partners, we estimate that will be.

Paper, which leads to a huge market opportunity.

So big growth we have on.

Parents.

And fisheries.

Fortunately.

And the quantities and customer acquisition and industrial customer acquisition channel, what's the revenue spread mandates.

Anticipate both laterally and top of the bonds that are advantaged properties 3 home transaction and.

We anticipate that 6% growth.

Home transaction and strong related.

<unk> grew strongly to prospectively should keep demands.

We have a powerful.

Moving on.

The online offline integrated capabilities and Banco <unk> powerful offline mentioned and set the power and Jean and to have a regional business and periods. So we can foresee our system is muted in the business demands and continues to do.

2 to improve effectively I mentioned and the accretion and that's it.

And on the efficiency roadmap to assist and grow like the overall shows the quality of the walk us millions of progress on.

For our ROIC and network partners and the growth of industrial service Ptv and Q1 beat our expectation this man and Q2.

Our sustainable growth upwards, and home transaction services, and our stable financial service penetration rate and.

And regarding to a month kitchen regarding some.

In addition rate on furniture <unk> as shown on slide.

This was mainly due to the fact that the Q1 market and a very volatile on the major cities have on their call batteries recreation adjustments and the consumers.

Right and the other friction costs and new program.

And increase the stickiness that we source nature of clinical services to assist with the Houston home protection, and how consumers, which reduced the transaction. So we strategically launched and.

The scope of Britain from financial services, and self pity, especially to currency total services.

So it's actually referred to with us over some banks stage, Chihuahua, transact and business by providing some renewable and natural surveys.

Free of charge to our customers and the walmarts very hard to realize.

Poppy performed doses over soon and that this is also in line with National policy.

<unk> BV and multiple speculation, we will continue to support them and neutral market view on the doomed and scope for consumers. Okay. Hope this clarifies centered on that.

Good day.

Okay, well, that's what inputs Umar rainy day.

Earnings per share is Cta will do a.

And we're kind of on its own border and bullish on our books will usually year social channel.

And those will be on top.

And from Bushel home channel.

And beyond.

Posted on the EMEA, we put it on.

Oh 2 million square foot zone development.

And then down on the topic.

Something that Youll cleanup and.

What is wrong.

And so on gentleman with Anthony and.

PCM and high on the map.

Sure sure available and diligently debenture that Sam and Dennis <unk> and understand.

On the Dol may of 800 on the builder civil and because you're insured as well.

Brazil.

And kind of that and so the only manner, yes. It really is the only central and Julien on target.

General and Changyou, Johnson, who is industrial and meal builder loans.

And icon and Sanjay on the hernia will finally also on the Belgian EBITDA Darden jewelry and the downturn media handoff Woodruff.

And I'm not sure I'm wondering.

Michelle on tweaking the need and the downturn Dr Kwan on Florida.

For the good news and live which from a downturn.

Joining me Eagle and <unk> got some on you guys on Monday and just.

And the ultimate Belgium is ongoing and answers, we're going to push and Luna ketone wash with GDP Andra and based on drawn sugar production.

And total percentage call centers and in the EMEA with diesel and <unk> Mayo on neutral bedroom and build upon.

Giovanni mentioned here so ill just add on on doors do you don't slower Guild cannot ignore phone line.

Sure.

The door to reported so you're going on we have finished on a continuous and he was and on demand.

And should you.

<unk> done.

Lisa Doddridge County.

And actually it's really shine on data that was on <unk>.

And we intend to have known as of date on Houston on Vietnam.

Sure.

And then yes shell and you can count on it.

And Tenda.

<unk> total consumption due and agenda.

Ebay and Paypal and teams that on that Tahira mace and <unk> piece will even Iot to come.

And beyond.

So it was on consumables and central and <unk> can be a suitable and lessees.

And how much. This is standard let me at all in terms of our philosophy to deal out of the new business in the future. So firstly when we look at the of the new business, we always look at that.

Peak potential with our big market size and those kind of areas. We notice a rounding off net residential topics there always be some of the.

Market potentials, such as renovation and decoration and and what we noticed those kind of industry. They always has some of the common pain points such as the overall user experience extremely low and theirs.

And the overall players and that market quite fragmented as well as thats on overall service procedures are quite complicated.

Okay.

Based on our parts and 19 years of experience from the day and gas practice to bake off we believe.

And so transforming.

The industrial Internet will definitely goes to the routine.

Firstly doing deeply than doing and horizontally. So we view is the only way to do that right, especially when we're doing deep day. It means that we will.

Dig deeper.

Into that industry.

Tree and understand the standard and.

<unk> build up a new standard for the services. So in the past 19 years. So we actually got a couple of them. It takes firstly is.

It's what we used to call the the street standards right. So firstly, it's about <unk>.

Service provider standard what kind of.

Services could be called the gross services, how we defend that so that will be the first thing is we can further empower to the service providers in the industry such as decoration and the renovation and secondly is the standard for the overall service procedures right.

Especially for example.

Renovation business.

Of the whole construction part and how we can provide the <unk> as well as the fire of the new standard for the overall services. It's all week continuous work Hall and the third part it was a standout and further.

Yes.

The standard for the data as well as our system right. So we notice.

Industries, such as other markets such as declaration.

Notice and market data has been online and it has been digitalized. So that is why in the past.

And the parts pure rate, we really focus on how we can build out the standard and how we build out the purple coat as al will be mentioned during my prepared remarks. For example, we also be without the beam system as well as the other initiatives in order to further increase of the standard as well as our protocols and.

And in part based on.

For this part of business. So in summary, when we look at the new business as I mentioned and so we always had the full commitment as well.

And as well as at the Inn Dalbar to further transform of that power business. So we strongly.

Encourage the.

Investors to look at our asphalt for the new business at least on the 3 year spaces, right, So and that will give us more confidence to continue.

And prepare more efforts to further transforming of the new business in the future. Thank you.

Thank you.

Your next question comes from the line of Joe <unk> from CIBC. Please ask your question.

Thanks, Dan and your Telco next day with pressure on keeping yes go ahead.

And I do with international growth operation now.

And that comes from.

Net income yield xiaomi.

Yeah on the line how did you determine inc and <unk>.

I think balance sheet. It sounds you touched on that question.

And that's I think that's kind of on can you guys haven't day.

And gentlemen.

And what kind of edge computing and just 1.

And as that way yes.

Thank you.

And your ship.

And that's not all of it okay thats helpful and icon Ione.

And I only phe.

He's on key brands and the leash.

Good morning.

Net yellow and Genocea going on.

And it sounds me.

EPS is that true.

And then they shop your looks like.

Yeah and that Betsy.

Your line.

Please go ahead.

Yes, it comes and pays off.

No share.

And then right.

And Glenn.

And I can't count on the Cookie caldera.

Alright.

Number.

Your line.

And a lot more simple well non core EPS.

Yes.

Well it sounds like tiny tiny job sure.

And now a quick question.

Okay.

And I'll tell Glenn Mattson and thanks for taking my questions I have 2 questions.

Good day, thank you.

New home transaction.

On the entry Danielle.

And business is relatively lower compared to existing home transaction.

There are more clear and the bracket.

What do you think.

Core competitive advantage.

And what's your strategy to protect and gain more market share and second question.

With Qualcomm and <unk>.

That compared with properties that is comfortably go ahead, Sean efficiency matching buyers and on the mistake on Rins.

Those profits and service company.

Advantage of being local that's painting and tied to relationship with property owners and along with our ATM and team.

Well have more players around the country that and Kim qua downhole products and service company. Thank you.

Okay. Thank you regarding your first question, we saw both on new home sales on our core competency.

And the Swamp April <unk>.

<unk>, let's say as we've mentioned on a year of course.

Net up to April cash Youll readings of the multi layered on June <unk>, Inc.

And the third and last note.

Truly welcome more theaters and team to decide while hub for us on Capes unbelievable continuous day the better.

At each of our strategy and it rid ourselves and <unk>.

We do hope to Parkway sources, which I want to make this industry better environments for agents and the <unk>.

Is it efficiency and improve the customer experience for the housing transactions.

So far we do rollout services zone.

You can see the slides on fair competition and the capital basically is ultimately function such as the setting loans nishu ways on a rebase.

So called onward, sticker price and valuation promise this.

And as a patently false competition and for which is May hope with deep understanding of how to do business with a view on transactions.

And there is a possible last year with the Mega and Internet policy unchanged industrial was high profile.

Rich and data acquisition.

Project progression that so it's a core competence of the new home business only 2 stinks.

And just kind of wrap up agents.

Noninterest.

Interest and to timely payments.

In April.

Q1, we paid $4.3 billion and mitigate the boss Juicy couture.

To Institute agent interest and mix shift of people buckets. Martin you talked the second is dependent on pulse customers, improving the customer experience and new home volume on the promote industry data, putting down period et cetera, and what do we have continuous and do it although we're not perfect at this moment, but the way out.

Already and so.

Of doing so.

Sorry, as the world starts on weight.

So people are clearly focused on line of inflammation and BMT and.

And it should become even more closely with the bankers.

Given that all demand and better itself.

And Brian and install all slide 18 before promotes customer portal.

And look forward on the Cogs.

To be definitive April to be a GAAP.

Due to strength.

And.

And due to focus on okay regarding the second question for the components are.

I will ask basis.

Question is force on.

Keeping others. So this is nothing new to Owens the so-called speaking older issue and just market and passenger years, which we attribute this on a kind of normal leakage lost more business.

We call. This this model.

Our strategic model.

We have always believed as long as the wait and keep on providing quality service on.

Boost and scoot.

China's consumers consumer well both feet, which also funded by our partner might be useful to switch on the for those who want to take advantage funds all of them whether it's property.

Property management companies or other focused companies, maybe ultimately punished by zone.

Market liquidate assets.

And so tense market unchanged, the euro balance between supply and demand.

Demand for the quality of service, while right both on the consumer loans, we quietly jusuf better quality services provided on April <unk>.

The business volume so that skewed order will also decrease which we're not getting the skips and <unk> impact tourists into the future.

<unk> zone.

And actually.

So we do have some local from the local communities bump is that day.

These cogent broad consumer and.

Most comprehensive social listening and most owners will not change Haas and testing complex because its just a common projects.

Observations of the property much of complex and therefore is not listed on the stock.

And just same types of real estate developers do not have the ability to host weeks and most professional and efficient service provider and the real estate brokerage industry, Therefore form based model.

Okay, it's difficult for the proxy mentioned copies to generate liquidity for growth and focused service.

Okay.

And with public companies to prevent broker comp and problem solving to Omaha, and the damage to owners, who are interested and according to the single codes to all of our Hearts are on wise too.

Both.

Of the approximate and companies due to loan growth would be.

And on the Pops imagined and touch on China benefits come to the table.

And the positive comp on.

OLED is often while the study quickly on <unk>.

So, possibly imagined Commvault, Inc provides the consumer with good service by policy, we're not sure and submission competition by keeping on cotton orders from consumer.

Consumer.

Also 1 of the multiple.

The average contract with the leading pump companies.

Fall of 'twenty to build up on the street and the residential services. Thank you.

Your next question comes from the line of <unk> from Jpmorgan. Please ask your question.

Go ahead, and I'll hop back.

And as.

Lindsay.

<unk>.

And between now and your credit lines and that delivers on its earnings.

I, just want and be able to help me and Paul.

Okay.

So can you go ahead and just.

And so I don't running and pull up because it's so those homes and home from others on.

And the actual among current and isn't moving without took a long time.

I didn't really hear news flow.

And ship and so that will get a clean.

I apologize.

Just on that.

Deals are and solvent and some claims and it seems and that does it.

And yet because some of the LNG personnel and non put new walnuts.

And those are key and so all using and you push it ticked up.

He won't be business and sales afford.

And then Jonathan the entrepreneur songs and bulk and cadence.

And what should we should put it on samples here shortly that changing and again within that team.

And our chairman and myself quickly.

2 questions. So.

And then noticed that recently the medicine and you made some comments on weibo and regarding the industry as well as broker.

And so my first question is on pull up on antitrust.

I know from a market share perspective, we are not.

Apparently not.

Dominant position and the market, but in what are the aspects or percentage.

It's closer to the highest potential antitrust the risks and there will be.

Second question is related to competition.

So Paul and competitive ankle, where the changes in risk and the competitive dynamic, including the lifting up and you could bring and.

And it changes.

Make you become more aggressive in terms of certain operating on strategies. Thank you.

Okay. Thank you a good day.

Regarding your second question and total antitrust IBD.

Indicating a very clear answer on the Capex <unk> will answer the question Bob <unk> Goldman So regarding your first question.

And I should say our Chico.

To be a leading online inflammation and China.

Verticals.

Husky is Pauline and accumulate online user traffic on the used to establish some competitive banking and desirable.

Just like in <unk> House, and most farm and the home total.

Well, so fellow industry participant and we have with respect.

Nominate where June comments other theatres performance directly.

I would like to take this chance to share our view on how to deal capable comfy and Julien.

Pulse and constructing and China.

Maintaining and providing authenticity is not optional.

Okay. It's a foundation for growth all real estate transactions.

Eliminating authentic on the free college.

Marks the beginning of the successful and the business model just the size and bottom mentioned upon what the punctilious.

And so our new home protected walkways people should inherent to a comprehensive on the strip.

Risks and maintenance.

With 3 key requirements.

And of the project.

Reasonable commission rate to incentivize the agents on the <unk>.

Payment and Copa.

And as well as the positive cash flow of the business operation.

Otherwise the fits and model it helps us tenable.

The third.

Comprehensive risk assessment system and.

On tax paid on these units offline operation Force policy accounts receivable turnover days and.

Pocket commissioning, the 1 and secures the agents increased.

Subscription and monitor on the preventative repay and customers intercept and <unk>. This is a long way to go.

So competition, so it's our shopping behaviors such as zone.

Effects and emission shelving and lower price well brings the highest growth.

Model and the long run just to set Thats net.

So post competition on the nickel.

On the Austin market.

So where is that.

And the 1 in Guangzhou is so we're not.

This cash position, let it be bottlenecks LNG to growth and your home business.

And it's doing new home fitness and draw acquisition.

Alright.

<unk> gross Packers adult beverage and Tate.

So it took me 1 the balance of LNG gross cash cash equivalents shots and investment the total market to RMB 163 billion.

While in the same period, a big project pace and mission into box of RMB $4.3 billion to agents to a day or interest which covers 160.

130000 payments and recover.

<unk> sales and the 18th per day.

And to Apple to Apple basis, our cash cash equivalents and the short term investments amounted to RMB 40.911.

And jumping to what rich and certain types of functions.

Regarding listen modest volume launching ball on social media.

And a relapse and permanently moving.

He goes slow we go on don't waste time on say Scott operator, that's more on that question.

We are now we are now approaching the end of the conference call I will now turn the call over to your speaker host today, Mr. Matthew Zhao for closing remarks.

Thank you operator, thank you once again for joining US today. If you have any further questions. Please feel free to contact bakers and maturation teams sort of the.

And the information provide on our website. This concludes today's call and we're looking forward to speaking with you again next quarter. Thank you and goodbye.

Today's conference call. Thank you for participating you may now disconnect.