Q3 2021 Ke Holdings Inc Earnings Call

Hello, Ladies and gentlemen, thank you for standing by for K E Holdings incorporated third quarter 2021 earnings conference call.

At this time all participants are in a listen only mode.

Also today's conference call is being recorded.

I'll now turn the call over to your host Mr. Matthew Zhao IR director of the company. Please go ahead Matthew.

Thank you operator.

Good evening and good morning, everyone welcome to <unk> Holdings, Inc.

Third quarter.

Earnings Conference call.

The company's financial and operating results were published in the press release earlier today and are posted on the company's IR website Www <unk> com.

On today's call we have Mr. Stanley you don't hold our co founder Chairman and Chief Executive Officer, and meets our culture, Our executive director and the Chief Financial Officer.

<unk> will provide an overview of our strategy and business environment and a Mr. Hu will provide additional detail on the Companys financial results.

Before we continue I refer you to our Safe Harbor statement in our earnings press release, which applies to this call actual will make forward looking statements.

Please also note that basis earnings press release, and this conference call includes discussions of all of the GAAP financial information as well as unaudited non-GAAP financial measures.

Refer to the company's press release, which contains a reconciliation of the unaudited non-GAAP measures to comparable GAAP measures.

Lastly, unless otherwise stated all figures mentioned during this conference call I am going to be.

With that I will now turn the call over to our chairman and CEO, Mr. Tiny pump.

Please go ahead Sir.

Since you mentioned Hello, everyone and Cynthia for joining us today, our third quarter 2021.

Earnings Conference call before I go into more details.

First provide a bigger picture view of our industry.

During the past quarter.

Housing transactions and associated industry, including ourselves faced a series of changes.

At the new and existing homes and land Nike is.

The honest substantial corrections transaction flows.

Marketing, making a historical claimant.

Industrial laterally.

But the correct adjustments.

Although only is economic growth driven by high leverage non sustainable.

We will also negatively affect.

People's lives and a great system.

<unk>.

Without correction trading the developers business model that it will based on high turnover.

High leverage and high housing price our national policy.

Housing is not easy for leaving no forced escalation that encourages both housing purchase and <unk> will become a capsule.

Okay.

If the Houston transactions and social industry Bradley's pen.

In scale without offerings, some professional services it will be unable to ensure service quality.

No adequately protect our consumer rights.

Vision housing market will be impossible.

When we talk to the races.

Is difficult we already referred.

In two instances.

Well there is an opportunity to undertake.

Don't mean to us.

The weak pay off in a short time, but will prove to generate growth that is in the long term.

As a priest pains of an industry in need of reform and on the guidance of the Chinese government policy to correct market instability and create more incredible housing succulents.

In that sense.

Because duty to show their responsibilities for the great goods, rather than solely serving our business needs. We firmly believe China is how the industry is affecting crude oil development opportunities.

Promising gyro.

<unk> homes, and a better lesions.

Coming up upon us and so on.

Elevated pace.

We then backdrop in mind.

Talk about the industry and the overall performance of our company more detail.

A series of policies, such as purchase restrictions loom quarter limits sales restrictions.

References process.

Financing limitation.

Payment restrictions and the reason alerts.

Alerts from several developers have also dragon.

<unk> market sentiment.

The result has been a significant downturn in the existing home transaction market in first tier cities and the most second tier cities.

<unk>.

Existing home sales market decline.

41.

6% year over year, while CTV on new home sales market decline.

14, 1% year over year in Q3 due to the sharp market downturn the ecosystem of the brokerage industry.

Worst quickly.

The number of brokerage.

Our platform shrunk.

Shrunk and the broker registrars fastest severe challengers.

Q3, the number of stores on our platform with a trailing 12 month CTV.

Leading the line of RMB 50 million declined three 3% quarter over quarter accounting for 13.

Three 7% of total stores.

Omission.

Promote at a multiple services enjoy for Lilly in China.

We have come to.

Ill put where.

Our corporate culture.

<unk> capabilities.

Two decades of successful operations.

Okay.

It'll roll as we move ahead, we have a strong team of seasoned senior manager, taking taking charge of divisions probes.

<unk> and city levels.

This dedicated leaders averaging more than 10 years usual associates at a breakthrough.

Let's see better industry developments at their personal responsibility within a season T and <unk>.

That determination.

We have content.

We can mitigate the tough market cycle and come out even stronger.

During the third quarter, we implemented a range of measures to ensure stable operations and a sufficient income for high quality store owners and agents withdrawn to inspire our owners and agents to make the right choices provide quality of services in the face of challenges.

And deliver on our commitment to take care of all.

Take care of customers against into Intel frequencies, we believe the key is a focus and collaboration.

We have.

So literally promoting our agents specialization strategy.

The increase in productivity through remaining focus.

Second we are we are devoting more resources to new home sales and the rental service search we are further encouraged across Britain crosstalk craft collaboration.

And the cooperate among existing and new home sales and event venues.

We also promote John efforts with a new and a seasoned agents as well as between the functional.

Functional teams and our business teams to.

Together, we keep our fleets on the ground.

Carryout.

Given our solid quarter, the number of <unk> stores on our platform increased 2% quarter over quarter to <unk> three 946.

And the only one 7% of our stores our platform closed due to a market correction.

We also facilitate some store merges pre improvement activity.

Otherwise low efficiency stores based on the target diagnostics and have dropped some noncore op radio stores from our platform. This also demonstrates that the aries increasing stickiness among Canadian stores on our platform and in a growing number of stores outside of our AC.

Joining us for support during the down cycle.

29% of our new stores join our <unk> network in Q3 were from external from <unk> stores compared with 22% in Q2.

The number of agents on our platform was 515 solvency at the end of <unk>.

6% door than the prior year quarter and the decline was a result of increasing agent attrition, resulting from that market correction for.

For the most part.

This has been the industry normal, but also due to our initiatives in some cities to improve overall quality.

As we implement it.

Risk mitigating measures in Q3, the agent attrition rate in Beijing, and Shanghai remained low at three 9% better than before.

For Darling.

Paul.

7%, we saw during the same period last year.

This broad challengers are collaborating with spirits continued to be the foundation of our business.

In Q3 transactions on hold platform completed.

Through cross door collaborations and the propulsion of existing home listings.

Contributed anomaly and Jack can edit stores, both remained stable at 17, 6%.

85, 5% respectively.

Moving to our quarterly performance and the measures we have taken with each of our different designs.

Is that.

At TUI existing home transaction services. According to Baker research.

Sure Nick.

Watching TV for existing home sales declined 41, 6% year over year in Q3, CTV for our existing home transaction was.

370, 378 billion RMB with a year over year decrease of 30.

<unk> four 3%.

Specifically CTV for.

Existing home sales decreased by 36, 8%.

Year over year, demonstrating virtually resilience of our business in the down cycle.

<unk> location is the foundation of our <unk> Division of Labor operating focus focus for and professionalism and competitive competitiveness.

And our cooperate bone disease altogether to this end, we ask our agents specialization strategy overall.

Uh huh.

Sitting 1000 stores in Q3 covering over 300.

300 assignment.

Hey, Jay.

Transaction completed collaboratively by specialized agents on our platform.

For $29, 6% of the total transactions in Q3 up from.

40.

14, 4% in Q2.

We are also making strides in digital empowerment.

The shelf because it.

We're seeing home sales training camp, which is an online standardize.

And I intend to use the system for a cash no training Michel <unk> training camp.

Stimulate the interactions between agents and customers in VR and offline property assurance and it provides performance evaluations.

Leveraging our AI capabilities, we can identify best practice in the process.

As each agency weakness with targeted training and.

In Q3.

100, <unk> solve the agent to the shelf existing home sales training in more than $1 2 million sessions in the future.

As we accumulate more data <unk> seen home sales services.

So they are training can.

Can be used for broader cash metal cutting fuels, such as new home sales and home renovation services.

Turning to her new home transactions as.

As we mentioned the degree of correction in the new home market in Q3.

You'll see our.

Patients.

According to the National Bureau of Steadiest.

CTV or product sales decreased by 14, 1% year over year in Q3, our new home 30 TV.

410 billion RMB 1525 year over year, performing much better than the broader market. The overall overall industrial continue to trend downwards from July to September.

Leading a leading to further build up pressure on sell through.

On the other hand brokerage penetration bottom out in Q3 developers.

Become more reliant on brokerage channels to accelerate sales too.

Preserves liquidity.

This in turn benefited.

Those new home sales channels that provide quality services protecting the interests of our consumers and our wholesale agents moving mobilization capabilities.

We can see this by looking at the increase in a number of new home projects for sale on <unk>.

Careful which rose.

Please.

From June to September while platform has been well recognized by developers. We continue at a hearing to highest end us for project cooperation and performing end to end and risk control.

To ensure timely and healthy tenant collections in our new home business, we help prioritized timely payment collections over scale expansion.

Any other metrics.

Timing of collection always Trumps Commission rates.

Strictly implementing an end to end risk management and control system.

Which enable box mayors with 24 hours after a risk voting is shipped.

We do not expect to have significant risk.

New home business.

We operate in a high independent fishing and have narrowed relying on resources in domains, our relationships for our gross our confidence comes from the solvent excellent stores and agents.

Our platform.

And our strong customer record recognition they have gained actual plumbing high quality of services.

We are also forged ahead in digitalization and rich online content for our new home business to provide consumer objectives objective neutral personalized online content that narrows. The information gap we are in.

Encouraging occupational generated content.

OTC.

We are building an open platform to enable those professionals to supply comprehensive.

Some commentary on <unk>.

Any empower customers with more information in four uniformed decision making capabilities.

This will further enhance the platform generated content such as our housing dictionary at the end of Q3.

Housing Dictionary has achieved 100% of coverage of the tuck in new homes on the market.

Notably in Q3, we create China's biggest database is quietly on colorable factors of new home projects.

This lays the groundwork for Baker to breach the information and to provide truly reliable and adjust for new home content.

Moving on they will stop our persist pursue of top quality services unit.

<unk> market corrections, we believe it is more important than ever to emphasize the governance of a new home business come to us at the end of Q3.

<unk> commitment to developers have covered all develop developers 66 cities.

11 solvent.

And then he when new home projects in total by mid October we identified a total of 47 misconduct and providing nearly 2 million RMB in compensation to give atlas fulfilling our commitments to them.

Moving to merchant services in Q3, we steadily progressed home renovation business, including self operated paywall and ashamed tool, which we are in the process.

Edition.

<unk> completed the renovation and <unk> of 127 homes, England units in Q3 up 35% quarter over quarter.

The contract sales or shouldn't do also increased more than 35% year over year by the end of Q3.

Regarding its operations.

Achieved breakthroughs in empower imposed services providers and customers in Q3.

So its providers Craftsman Academy the industry first full service is the low cash notes heading base.

Opened in September.

And to calculate.

Our renovation professionals across the industry chain.

Turing design designers for men with <unk> and the more the focus is on general on the professional.

Competencies and leadership September 394, four men took part in the training.

Loan patch.

Shortage.

High quality services providers industry infrastructure, such as <unk> Academy.

Signed to upgrade innovation services standards.

Industry.

Practitioners achieve personnel growth. Meanwhile, we operate I'll homestar system to manage on the empower postponement and workers this upgrade although.

Even even the construction process to be standardized.

Modularized SaaS distributed and a manager to the finance granularity leopard and in materials.

<unk> deployed by the platform.

Accurate.

Controllable budgeting process.

For customers. They were launched 10 heart to heart service commitments in September to address the renovation industry key pain points for customers.

<unk> include double compensation for managers increased.

Beyond the scope of the contract.

Pablo refunds fall under the Turbochargers triple compensation for use in FIC materials composition for delays and six others Covenant alerts.

Yes.

Areas of budgeting materials construction.

Timelines.

And services.

In summary.

In this round corrections.

Accelerating our thinking on the additional value we can create for society.

Social responsibility, we should take the ensign has become increasingly clear.

In China people recently for a better life is reflecting in the desire to leave and the work has joined.

Angela.

To facilitate Joe for Lilly, we hope to provide a reach of our <unk>.

Alrighty of high quality.

Affordable housing services.

For those who need it.

Hey, guys.

Downloading now some concerns over the.

Hey, David.

Including our fresh.

College graduates low income loans.

New herbicide him.

Before we are devoting more talent and resources to innovations and our rental services.

<unk> generates generation or older.

Although with substantial communities.

<unk> facilitates.

That is rewarding and fulfilling with the government's support over cash no education.

How is diabetes.

A multiple layer training and education system for housing services providers. This includes the original force Academy for broker brokerage Rage brand owners Hartzell Academy forestall nurse and a beat on a big brokerage Academy for agents as well as Cross Academy.

Renovation social for others as we mentioned earlier.

This will have more home ledger services providers.

For long term career development and cultivate more high quality professionals technical experts and for the industry.

All in all this.

Despite a short term impacts on our business and the industry at large during the market downturn. The overall trend in the housing market remains healthy.

Laterally regulatory authorities corresponding multiple times to market concerns consumers.

Reasonable funding needs.

Ah gradually in the mix.

While but I thought I would like to introduction of a property tax pilot program. We believe that our long term regulatory mechanism can be quickly bumped.

In <unk>, we see we see promote.

For promoting the emergency of a new patch will existing homes and the quality of services sooner than we expected the real real estate sector.

Major developed countries.

<unk> for approximately 10, 2% of our country's GDP how.

Housing investment and market makes up only about 4%.

And the rest to come price a broader array of housing services. In contrast that real estate sector contributes to nearly 7% of China's GDP with housing investment makes up a majority of China's real estate sector indicate massive potential and flowers.

Our the mountie housing industry.

Over the past few years have been a golden age of real estate development.

Then the next five years, we will be the age of Java, leaving.

Categorized a quality house housing services.

Short term saturation imposed on long term.

Such a cooler trends are.

A simple noisy.

We follow.

<unk> campus.

<unk> and <unk> position to become the leading comprehensive home services providers.

The 300 million families in China.

With that I would like to turn the call over to our CFO Tiago for a closer review of our third quarter financials centric.

Such a study.

All right Paul generic I would like to provide a brief overview for the quarter of 2021 financial results.

But like I did in the second quarter call being past several months, we saw a sharp drop off the overall market, including land auction.

New home market.

I think the whole market.

Ill person to take the crackdown on speculation with array of coating matters from a project Putney to run.

For instance, home price being rolled out.

Just tied to adversely impact our operational and the financial result in Q3.

So we are experiencing.

On the sharp market downturn, we still want to emphasize that all of our three fundamental to date towards industry.

<unk>.

How long is the whilst the market most of the cutbacks in gas in China.

Candidate for the digital disruption.

Second agents.

Well continue to be indispensable to transaction on the competing power to thrive.

The third professional services build customer trust.

Cycles.

We are confident that our continuous effort in maintaining the best cost of service by providing by supplying our agent side of the border upgrading that infrastructure housing transaction services well have first go through the cycles.

<unk>, Inc. Our service quality efficiency on the fitness scale.

We maintain a long term view in pursue our mission to transform to housing transactions on the services industry in China by leverage all of our people data insight technology and powerful.

Turning to our financial details in Q3.

Our net revenue was RMB 18 1 billion in Q3.

Compared to RMB <unk> 5 billion in the same period of last year.

Savings are both high end of our guidance on the street consensus.

The year over year decrease was primarily attributable to the decline in total TPB opportunity, 9% to RMB $830 7 billion in Q3 from RMB, one <unk> five trillion <unk> pure opportunity.

In particular revenue from their home contracted services.

That's point 1 billion in Q3 compared to RMB eight 8 billion in the same period of 2020, primarily due to a 34, 3% decrease.

In taking me often in home construction to RMB 307 to $78 2 billion in Q3 from RMB $576 1 billion in the same purion to defend it.

Led by a slowdown of its being home market, which was affected by serious market, including matters.

Especially loan quota meets in Q3.

Our net revenue from new home transaction services.

Increased by two 5% to RMB 11 pardon.

$11 3 billion in Q3 from 11 1 billion consistent period of 2020.

Primarily at Goodbye to a moderate increase cell for a new home transaction Commission rate, while the <unk> of new home transaction was RMB $410 1 billion in Q3 compared to RMB 427 billion, that's immaterial philosophy.

Net revenue from the merchants and other services was RMB 610, many interest rate vol. RMB 625 minute Interstate apparel.

Primarily due to a decrease of net revenue for financial services, the ramp that you're seeing home services.

<unk> was partially offset by a 29, 4% increase of net revenue from the renovation services.

Cost of revenues.

RMB $15 3 billion in Q3.

Compared to RMB 16, 2 billion interest in pair of 2020.

Gross profit was RMB, two 8 billion in Q3 compared to RMB four 4 billion interest in pure off lots of your.

Gross margin was 15, 2% in Q3 compared to 21, 3% interest in pure opportunity 200. So a decrease in gross margin was mainly due to a lower contribution margin of visiting home transaction led by a decrease in net revenue from in home transaction on the royalty prior to Fig competition.

Cop 40 into Egypt.

Operating expenses.

Well on the $5 1 billion in Q3.

Compared to RMB four 5 billion in the same periods 2020.

General and administrative.

<unk> expenses were RMB 2000, $412 million in Q3 compared to RMB 2000, 649 million in the same pure opportunity.

Due to the decrease in sharp, it's compensation expenses, which was partially offset by the increased level of personnel costs on the bad debt provision.

Selling and marketing expenses.

<unk> thousand $200 2 million in Q3 compared to RMB started under attended many inputs imperial ingenuity.

Mainly due to the increase of White Hall, and puts us development personnel.

Research and development expenses.

<unk> thousand.

$43 million in Q3.

<unk> 789 million in the same periods of 2020.

Mainly due to the increase of high coffee experience the research and development personnel.

In addition, we recognized the impairment of well of RMB 397 million in Q3 compared to new interesting pair of 2020 based.

Based on low because <unk> the longer term view of outlook of the business off of Pruitt acquired Ics.

We conduct a comprehensive risk assessment.

Evaluation.

Mega sufficiently impairment provision accordingly.

Loss from operations was RMB, two 3 billion in Q3.

Accounts with loss of RMB $81 million is the same carry opportunity 20.

Operating market was 1912, 7% in Q3 compared with negative zero, 4% in the same period of 2020, primarily due to one a relatively lower gross margin in Q3 compared to the same period with trajectory due to the increase of a percentage of total operating expenses.

Net revenue in Q3, primarily due to the decrease in that revenue along with the directive a fly to recruiting operating expenses and additional impairments of who well.

Severance provision of RMB 250 million incurred in Q3 compared to the same period the opportunity today.

Accordingly, non-GAAP items, our adjusted loss from operations was RMB South of the 435 million in Q3 compared to adjusted income from operations RMB South into 740 minutes in the same period of 2020.

Operator market.

97, 9% in Q3.

Back to eight 5% in the same period of 2020.

Adjusted EBITDA was.

Good luck to RMB $550 million in Q3 compared to RMB 2000, 248 million you just imperial's 2020.

Backlog was RMB itself into 756 million in Q3.

Compared to a net income of RMB 75 millimeters and Purion <unk>.

Excluding non-GAAP items.

Our GAAP net loss was RMB 888 million in Q3.

Back to attack that in RMB 1858 in the same period for 2020.

Backlog.

<unk> holding Inc. Ordinary shareholders was RMB south in the 765 million in Q3.

Got to RMB $271 million sustained periods of 2020.

Adjusted net loss attributable to <unk> Holdings, Inc. Was RMB 887 million in Q3 compared to adjusted net income attributable to <unk> Holdings, Inc. RMB.

857 million in the same period 2020.

Diluted net loss per ads attributable.

I could build book to <unk> holding Inc. Ordinary shareholder was RMB one five in Q3 compared to RMB <unk> 33 in the same period of 2020.

Adjusted diluted net loss per ads attributable to <unk> Holdings, Inc. Ordinary shareholders was RMB General point.

Seven five in Q3 compared to adjusted diluted net income per gas attribute to Covid Holdings, Inc. Ordinary shareholders RMB 138 in the same period to liquidity.

As of September 32021, so combined balance of cash cash equivalent restricted cash and short term investments amounted to RMB $52 7 billion or USD $8 2 billion.

Additionally, as of September 32021, the balance of our long term cash items. Many inquiries are lumpy investments amounted to RMB 15, 9 billion or USD, two 5 billion.

As we mentioned at the beginning.

So there has been some turbulence in the housing market risk.

Which brought us to keep investing in parts of our business in Colorado.

But it's also a comscore to take a moment to unlocking work books.

Books more answer as a central hub business as the refi our measurement under distributed resources to more effectively paving the way for.

Outside of chunky allocated for the long run.

I'll kick this off experience going through numerous challenges, which gives us capability to remains they fought against the market Volatilities.

Cope with it agility.

In face of market downturn, we closely after market changed the time they across all of our business strategy to ensure the rapid presentation of sorts of adjustments.

Our initiative increased focus on efficiency and cost management to put synergy as I look at that.

Resources.

More efficient R&D.

Risk aversion.

There are some measured increase three us back to ensure it's a common spectral accretion of the new normal.

For example, we introduced the new operational metrics, including the number of install in ICU agents on our platform to better reflect our business progress.

Furthermore, we attach great importance on the accounts receivable collection by building a comprehensive risk control Mackenzie.

Mostly mortgage balance that <unk> quite cause changes in.

In third quarter.

Hi, folks by the provision for all remaining receivables rig to hybrid clouds.

Several other developers with Nike popular opinion in order to reflect recent pricing changes.

Turning to Q4 guidance.

According to pay for electricity.

Nationwide GTA V on new home sales market.

Despite a twofold over 47, 4% year over year in the fourth quarter.

While national wide, the TV of new home transaction market.

521% year over year in the fourth quarter.

It's all about the region.

Looking forward to fall, it's causal digital tier one we used $5 net revenue to be between RMB 14, 5 billion under RMB 15 5 billion.

Representing a decrease of approximately 31, 6% to still get the percent from the same quarter of 2020.

This guy got.

Reflect the potential impact of recent property market related policy measures as a company car and the preliminary view of the business and the market condition, which is subject to change.

Over the course of this year. Despite many challenges we have encountered.

Well continue to weather the turbulence.

Got to provoke growth to focus all of our staff.

Lots of noise inspiring individuals in our organization to five 5% the net rod we gave up.

Well now in Hawaii will never give you where.

Well, we are not backed up at the Nava.

Stop doing what are we acknowledged right.

We're putting in Paris. The policy change is strongly linked to the housing for leaving output the population well for the long term favorable environment for the industry.

I'll take it to our path towards a full commitment to serve our clients biotech well.

We are confident that way or the state resilient under high while we're baidu recognized.

This is what the way how can do it.

Perfectly, but we are on our way.

That does conclude our.

Our prepared remarks, we would like now to open the call for your questions. Operator. Please go ahead.

Thank you.

Ladies and gentlemen, if you wish to ask a question. Please press star one on your telephone and retraining can be announced.

For the benefit of all participants on today's call. Please limit yourself to one question and if you have additional questions you can re enter the queue.

We're going to ask the question in Chinese Please follow me to English translation. Thank you.

And the first question we have is from lithium child from TICC. Your line is now open.

Hey, Sandy telco message as well.

Sure Glenn.

Okay.

Uhm.

We thank Keybanc your question is yes.

The merchant question Jim.

John.

Thank you, Michelle Holland and Belgium.

Jacob Swatch now anyway.

Okay.

So Glenn Coleman, Chief Financial Officer Leila.

She does not come back.

She now Johnson a title.

I'll translate for myself.

I have two questions can you firstly, we have seen margin improvement.

So calling housing mortgage rate.

What do we think of how this is Brian.

So I think market to bottom out.

Oh my goodness.

Near term speaking of transactions.

Well.

We found that in terms of transaction volume and secondly that day.

I thought the state owned property.

We tried that we got it right.

As it would take months or pardon me block rates, what do you think of the government's attitude towards neutral position.

Okay. Thank you.

So good evening, let me address your question regarding your first question.

The fishing department onto long term cut itself, but really to the market.

72.

We have witnessed the largest ever regulatory package in terms of quantity on the type of policy.

Including the restriction on property purchase loan.

Alone sells pricing land auction.

<unk> price cut financing payment as well as the potential property tax.

Calculate as the property market.

China quickly froze in Q3.

In home sales market that dropped to 41, 6% year over year in inkjet TV on par with our guidance in last.

Earning release call. So the cloud the new home market is larger than our previous expectation.

As a vacation down around 14, 1% year over year the downturn in Q3, it was across the board rather than one single segment showing a trend in fact from the credit tightening to the according all properties in home South Arlington towards the new home sales in that market are priced coffee.

In terms of water.

Home sales expectation.

I think its Spanish under behaviorist market participant resonated led to a pattern of credit crunch in PD to transaction.

And the downward revision of interpretation.

In particular transaction volume off of existing home sales market to continue to drop the months over months in Q3 to a long term.

To a long term shift toward Colo with something eight to 10 years low record.

Price for wildly under our homebuyers and suicides the index has fallen to a low level since 2019.

The largest impact come from the shop fluctuation in loan origination basis.

That's a first year adopting the housing loan concentration amendment.

We saw a mismatch between <unk> and <unk>.

I keep pace.

The average loan origination cycle.

Towards 10 in Q3.

77% loan growth in the same period last year.

A large number of infection.

Infection have also been affected.

And at the same time.

A total of 14 state aid introducing.

Eating at home referenced price policy down payment requirement for the.

Purchase for a rig.

This expectation property price on the overall market sentiment has been significantly dampened.

On the other hand, new home sales in China also dropped sharply in Q3.

Prior to September the new home. So we are still in China decreased by nine 5% 17, 6% 15, 8% year over year, respectively.

<unk> September was the worst Hawaii seven years.

The new home sales market under the existing home sales market are highly correlated.

In China around the 40% from new homebuyers compounds improvement you model using home subsidiary of.

After using home owners.

The loan cycle and wait and to see sentiment for this and hold themselves market a fit for purpose for the new homes.

The new home price quoting on this.

And the rates in certain give up her father deepens, so wait and see sentiment about the virus led to new home sales market cools down promote sleep.

Just on your home South China in Q3, a season during the so-called Kashechkin developer, we're motivating south China wildly to accelerate the sell through of the leading to an increase the penetration rate for the sales channel.

However, risks in new home sales, China auto amounting up.

Because.

Give our per screen suppliers.

Working capital.

<unk> late payments for accounts payable also called our accounts receivable to the suppliers due to some industrial supplier.

Looking to the incoming policy on the regulations in Sharjah policy insurance I spy two P call.

And the market interest to a period that drives the crude market curve underway. If it is it is it is unlikely for the policy tightening up.

In terms of the Hudson price According to Baker Research Institute.

And I'll just September <unk>.

Housing prices dropped to one 5% on average from the highest this year with some thinking correctly on the price cut.

In terms of deleveraging to improve the financial housing in transition to 40% of 100 listed goodbye for a successful at a lower rate versus two.

2019.

In Q3, 2021 residential housing leverage repulsion, neither slope in October our <unk> overrides premier or busted console.

Dave.

Reasonable capital T, Mount and real estate industries being met.

Turning now well the two.

Change the path towards the housing developments are.

Same time other financial regulators also responsive market concerns.

Given the effective regulation results under the <unk> constructor voting the price policy.

Lower frequency of the policy tightening a heightened in Q4 versus last quarter.

Which is the pace of the real estate private supplies stabilized, which may bring some march no changes to the market.

Policy impact onto market sentiment will last for a considerable time with the Purion top.

From a long term perspective.

I mean, China economy upgrading from high speed growth model to a growth in the system that is balanced of what we do see all around the tightening or really did in.

Potential policies.

The acceleration of Pilar property tax reform signals advancement of the long term.

The on Tianjin pursue all for deleveraging on the Derisking both sides of the requested on the device side.

Despite askable shorts and pants.

We start to see Hauser more moderated growth in market in the future.

So based on our observation of dimension.

Downward pressure on the home of the new home market well continue beyond Q3, looking to our Q4 transition to us So ptv.

Home sales market this estimate to afford them.

Nearly 50% year over year.

And 25% quarter over quarter.

Meanwhile, the <unk> of the new homes market, while it dropped by 2% year over year.

For 2020 to CTV.

CTV is expected to drop by more than 10% both in home sales market under slightly for new home sales market.

So all the fluids the ptv level.

The new home market.

Spiking to bottom out in Q1.

<unk>.

In the second half of 'twenty to neutral as the market fully pricing regulatory policies.

Policies under stabilized ratchet demand well call me and natural market recover prospect stock doubtful.

I want to reiterate our position to the market.

Don't underestimate the power of the policy to create multi activations.

Don't under estimate to support empower of market supply demand dynamics.

Regarding the new home sales market and provides a monkey shorten time to prepayment pressure give us.

Her well push themselves to promote itself.

Cash.

From the long term.

<unk> shipped from financing driven to operating three but Hugo south focus approach that well face the higher requirements unproductive amendments in the car T cells.

Given the increasing divergence across cities you referenced the increasingly customizes south strategy.

<unk> should be a contributor launching trapped namely.

<unk> penetration rate of new home sales channel will come soon.

It also presents a more kinky support peco to pursue full cycle partnership with <unk>.

In Charlotte.

Presented policy regulation and the rest of the market, putting all intrinsic to do what browser a profile of the market correction over the longer horizon. The market is not as bad as what we could see right at this moment.

In terms of annual volume some marketing watch transaction volume this year wells do Pos growth was last year.

It's a policy such as these new home referenced price have not changed long term supply and demand dynamics.

At the mismatch between land projects supply and home purchase should be primarily improved so from London. Despite your market fluctuation are normal.

Long term mechanics of being in place.

Or.

Or or could be the market will normalize towards the keyword over supply demand balance.

Regarding your second question.

As a.

Well, we'd like to stay out.

Central government level are well established the midst changeover implemented system, just crucial step to standardize the roes amongst others.

And Oh, Dropbox to real estate transactions to meet the tritium system help garments to evacuate like property listing on the transaction data.

Take a final decision on the Brookfield literally actions I know why the wild swings in the market due to potential that the policies also that's kind of how garments to address the issue of acre property listing olivaceous competition Huntington's the industry does.

Contributing to the better performance of the service provider and benefit for those who can meet the quality of service like a very cool.

As a consistent advocate.

Caito and beneficiary also regulated in the collaboration market.

Batesville formulary supposed garment to upgrade.

Jacob systems at least working with carbon ducommun.

19 serology.

At the government level local real estate.

Local voice to video to Mitch Jacobs system dating back to 2012 since the drilling of the <unk> system with similar function, helping establish in nine cities, including Beijing Shanghai Chengdu.

According to current statistics.

So for the purpose of this a different way you want to clarify firstly government had no intention to directly intervene in the transaction.

Under our preferred position to cover that market is through a well regulated commercial institution to navigate through the various transactions.

1000 processes involve significant risk, which can be shouldered by commercial player procurements.

On a per country.

The right engagement and transaction vital association of carbon to require a significant commitment of Thailand, The financial resources, Inc.

Including from Louie formulation will reduce research and development investments and our continuous system maintenance on the duration and it's also exposed to the grades in the transplant process.

Secondly.

Garments neutralizing the last news service, including the social creaky housing meaningful.

How's kind of module.

Processing lifting module has been included into local.

<unk>.

Hangzhou, Shenzhen, which is interviewed parcel normal local D. R <unk> system upgrades.

Certainly.

There have been hunting hunter contractions without an intermediary or across the country.

Picking Hangzhou for instance from 2019 to September 22 to one.

Average 20 for self transaction volume come from Huntington pulp a brokerage pre transaction.

Mostly between the family and friends.

Upgrades to the other with tritium system in place.

So it's transactions into a more convenient safe process.

In terms of outcome.

Riverboats of composites of information system or the system depends on the level improvements off of consumer experience.

Efficiency.

So at the tail end of the financial resources to meet the operational experienced accumulative over time.

<unk> has a proven track record across cities at the hub.

Deployed online.

But sheila implement system for years also demonstrates that our standard standardized market I trade contribute towards a rise opens a clock agents.

Our standardized the monkey prices, which are sensitive property listing.

Most of our impact with those who attracts a trip a suite of <unk> and <unk>.

So it's a whole Rhode Island <unk> competition.

<unk> auto customers getting to part of the pies on the Carnegie serviceman to the platform, where he believes that along with upgrades.

The <unk> system.

Total market penetration in efficient to support well before the script at the start by repeating quality service providers.

And the 400 <unk>.

<unk> III transaction tend to remain stable in terms of attitude.

Volume.

Most of them are not affected by the change in market conditions like the transport.

Members.

<unk> recent false seeking Hangzhou Sop real quick so carbon online seeking homeless consistent.

Insignificant impact to local transaction, Michael Wildwoods, Yeah.

Brian locally.

And a portion to pay so what should we know so far it's a function of shinta voting information system managing crude.

Only a QR code that generate for our properties.

Sure.

<unk> generated for appropriate firstly based on the current information system kinds of property owner published Saturday.

At the website increased weight that to ensure the fake predicting frequency on the platform can be further gets filed.

Good for Baker bag for stockholder meeting website.

And the property owner is the required to engage.

Exclusive sell side agents wasting a given period of time just.

Transformation against the Marshfield listing agent model in the industry helps to solve the problems of ice cold water given the low quality low price competition to the hobby plate. So industry. The system is designed to purify the intouch environment on the standardized home construction market.

Now on page <unk> powerful consumer set.

Paul to more homeless team on agent information, while ancient kind of seek efficient collaboration supported by the platform goes in the infrastructure because of the cold platform value on the operation capability are benefiting from those launched Garmin E.

E <unk> systems security.

Thank you Tucker.

Cool.

Thank you.

We have the next question from the line of Miranda.

Bank of America. Your line is now open.

Thank you Jessa outstandings on how good Matthew.

So it sounds like that's even a couple of things.

John Jacko Ophelia with questions.

Yeah.

Pete.

Yeah No question, Yeah, Thanks management for sharing today and for taking my question.

Can you please elaborate more on the latest feldman and expectation for recommendation business and other initiatives. Thanks.

Yes.

Hum.

Well I think well.

And then what's your charge off.

Dino Jewish Ross on for <unk>.

I'll tell you if you don't sell total year on year Bianca.

Th unchartered tier high tier two tier did not she knows who number with your current occupancy.

And when you bundle beyond.

Shanghai CTO gentlemen.

Currently either sooner or human kind of on the T M.

Gideon I trust, you're going with it sounds like.

Bundle with Q2, the tier two.

And as you know with insurers to keep it.

We didn't put young managers are.

In Florida from Don Carson of Shandong.

Sure Daina cellphone yesterday.

It seems you're fortunate.

Sure sure Uhm.

Switching to our tissue DDA.

Uh huh.

Since you couldn't ship.

Sure.

Noninterest really shut down the whole year.

Tom will clear harder bluntly should be each one since you.

<unk>.

Who should Ohio, what Elena silver.

Yeah.

In 19, Schindler don't change.

Yes sure.

I was at one point in time.

Again, I'm sure whenever you're.

So any material.

In the funding that's for sure.

Jungle Fujairah generic food inflation, we need to hire 20 wholesale and transitions.

We went into digital geopolitics potentially.

Yeah sure when we're kind of on a Sunday.

So you've shown some easy issue on the feet on Street English accounts, you would do that.

That we haven't been Ashwin, Oh, yeah, tuna, and you'll see them apart.

Sure combined fleet on Crossroads and John.

On Argentina to any conduct again lose industry Brito.

Just wanted to highlight offered under the Tata Foundation.

One woman.

Sure Bonnie.

Yeah, George on the function from Hong Kong.

Hi, Josh.

There was one in each of the foods, the hydrocodone that Oh.

The way to find out.

Yes.

I know you guys mentioned, a nano gouache leader.

The clean more.

How that kind of a 1 million ounce a year I'm going to core EPS.

He's a dog.

Hum.

Well be heading into a strong commercial yeah, then with honey do feel generally that's what you can look at the English high year on them going entrepreneur.

The quarterly EBIT.

We undertook a mutually vishal.

The audio recording 100 feet.

Thanks Tricia.

Continental.

With winter.

Okay.

Let me quickly translate so this is dynamic because they address your question. So firstly the home.

Renovation and decoration business is very similar next the housing transaction business, meaning to overall industry, Hi, Barry B, but overall the user experience extremely.

Worse. So we do believe in this industry, we have a lot not lots of opportunities can continue leverage what we have accumulated in the past two decades.

So for the home decoration basically we will have.

A couple of ticks in terms to reach our overall outlook firstly.

The overall, China customers will continue more focus on the economies. We do believe that will be the fundamental right because for that if.

If you look at the recently the policy trend definitely the Arthur Conan highest.

For the.

<unk>, it's pretty much has been passed so the next Europe is happening will be that.

The people, it's more focus on the chart or leaving.

So we do believe the opportunities will be.

Arising from these kind of a transition period secondly, we do believe the scientific management I'll will continue help us.

Also helps the industry to upgrade right, especially followed by some of the other initiatives for example, like multifocal ambition, we do BD weakened restructuring and to continue our practice of about those handle a scientific management into the home decoration and renovation business.

Our survey.

A value about the.

The service providers in the home decoration and the renovation business.

If you look at the overall <unk>.

<unk> for the service providers in the home decoration and the renovation of industry is still relatively low so by doing that continuously training as well as the upgrade for those kind of professionals. We do believe it will be helped us to continue help those kind of.

Our service providers to further improve their professional career, that's why the whole professionalism for the whole industry.

So in summary, we do believe the declaration of home decoration and renovation business, it's not a nationally so carter faster industry right. It means we continue dedicate doing the things typically pass rate right that's behind that.

That means we will be a lot more countries.

That's why it's beautiful it is off.

We are increasing but we do believe our fees as well as our.

Opportunities as well as a matter, we actually have seen accumulate in the past two decades, we will bring the continuous sabbatical into this industry.

Meanwhile, France, our colleague side.

Well I think some people and talking about the difficulties for the home decoration business.

Either it could be something like a 1 billion RMB revenue velocity.

Whether a company could achieve a lack of 10 billion RMB of the revenues overall.

So we do believe I mean definitely there will be some of the nuclear emerging from that industry and to reach of those kind of tenant beauty RMB revenue.

Milestones in the <unk>.

Foreseeable future indefinitely, because also we have a lot of opportunity to achieve that as well.

So you will need to sign up with US you can find them or give them and that's for sure.

Cool off in digital.

Sure Jim good to hear.

So when we are saying now that we believe will Trump signed the dilutions, he's not homegrown, whose heart function shoot a hungry, but nothing out of Belgium.

Deanna will cause you harder bluntly.

So you'll have a chunky.

The HUD auction does someone that's for sure.

Oh geez.

In the drone pay Oh geez.

Hum.

So when you kind of an agile for John John you don't want them.

John.

Yes sure.

So I don't know that yet.

Uh huh.

You don't conclude at home.

Uneven.

I don't see them soon or you won't Miss adventure.

Janet Woodruff, becoming due to challenging.

No. We don't do the high end, there's going to be up high.

And in South Asia.

Hung a T M hydro drones, we issue, sometimes we get on the digital data product that we don't control because you're all intangible that was seamless.

Got it.

So in summary, as I mentioned before so we do continue to focus on the street part of asphalt right. So firstly, a whole weekend a rounding helps our home services. We can further improve as all key management as well as by upgrading the whole service procedures a pilot continuously digitalization.

Lee the scientific environment, our will be our key focus as well.

This weekend.

So we can improve the efficiency for the whole industry on <unk> part and most of the important thing is how we can continue to bring the value to the service providers into the home decoration of renovation in San Francisco continue improve their professionalism as well as improve their DNA to further product for the work.

Uh huh.

So all in all as I mentioned in generally speaking.

In terms of our home renovation and decoration services will continue to focus on how we can further improve the overall customer user experience we.

We do believe that's a very tough comparing for us, but we have.

The trough as well, it's a confidence we can continue bringing our mission into reality basis means.

It's a service provider with dignity as wise charcoal, leaving ultimately thank you.

What would happen, but I think there are some headwinds.

It's a different audience hustle up their eventual transfer Oh, you mean.

I'll try and get behind you can talk about accident younger than I am.

Disney is going to change here, so it sounds like there's something to that.

These are the autonomy.

When you talk with balance sheets that lends itself to be digital.

And what kind of tone gotten good truly even three times turns her social funko com.

Sure So called Beach.

Oh no no no.

Sure digitally four tenths of a D C you'd like petroleum.

So it will be cleaner curve year mailings, we don't typically see judo.

You have a deep sumeia continue enriching for them.

I'm not sure.

Sure we don't traditionally the returns that we don't do that.

The town <unk> country, and reagents and all the way down to <unk>.

Do people thought interest where you would either.

I don't know if it's a tool to go speak.

But what would the current Julianna <unk> CFO.

One that Baker, she won't be until the judge.

That's interesting.

Thanks Julia.

Sudan to.

So good of you to ensure the home cylinder.

On local and the thing to go home.

Who can Uh huh.

As you know, we don't control Coldwater I truly do not a kimpton.

So now that you've got Cittadino companies. So it's a change on that we don't want a hurricane I'm not sure but.

Sometimes you know you want me to if you don't want to share holders.

You should get from Google So it will be true.

So you do it again.

Yeah, so either drawn Joshua young.

Altogether.

So you're gonna even vantage were they got you didn't do so well.

I really wouldnt change what is your general gallium due to Chico honey to Sony in downtown San Jose.

Do you have a bunch of sand, yet undrawn rule change that I called him.

She goes over to the T N cheese, often as shown here.

Absolutely I think it was <unk>.

Google put in their centers.

With that John.

Uh-huh put them onto conjuncture, because it triggers a convention cashmere downturn, because we don't know.

For two months.

Yeah.

This is Danny I also wanted to give you additional congress in terms of the previous question regarding to the continent.

Your comments are enemies.

<unk> room are right. So although we do believe it's definitely there'll always be a bigger player.

Prominent underneath of the smaller platforms right. So in order to better to see once the intention behind of the garments, we need to look at the policy trend in China. If we look at the general auto policies in China definitely is there are two major parts why is hotspot, even north of speculation and otherwise.

AIDS.

The encouraging of both of the housing purchase and a ranking right. So based on those two of the fundamental policies.

Add on the recent trends such as a pilot program for the appropriate tax.

We do believe.

During that kind of.

The ability of the policy trend.

Our Pecos value will continue schein since we can provide a very comprehensive solutions and which is quite in line with those kind of policies trend going forward.

Meanwhile, we do believe our as we mentioned before so our.

Fundamental our infusion for Aro business is also quite in line with two of the policy direction right. So and there are those kind of assumptions we.

We do believe some of the rumors will be definitely feet away in the market and as far as we can continue to to a hose adhere to the policy continued to improve the efficiency as well so it improves the user experience, we do BD so basically.

Nobody will continue shock and we will continue.

Bringing the value into the whole industry. Thank you.

Back to you. Thank you. Thank you.

Thank you.

The next question from John Laing from UBS You May proceed with your question.

Thank you.

I'd say when you count our tape in Ohio.

Are you going to shot show ways, how can you take us sometimes fatal heart. So now you've got all my jogging my God.

Nicole nationally.

Uh huh.

Platelets.

So I'll finish it.

That is much much right.

Do you want a lumpiness in challenging times like when do you think I'm glad you asked.

Taking that you can at all.

Nick Junior in the heart.

That would be true for Titan.

She can enjoy.

Uh huh.

Kelly.

Yes.

You guys have any sense of merchandise and doing.

I mean, it does seem like you know what I find this out with LNG.

I have two questions. The first question is mainly on the property tax so.

How does all the tax effect the bias and also the soundness sentiment and also at that pace.

Yeah.

And also in Australia management here anything should be cutting on the implementation details of the MLP tax.

And secondly.

Regarding on the competitive landscape. So first on the one hand, we have seen a centralized has a massive layoffs.

About 7000 people.

And also with their senior management also left the company.

Same time, a major online media company totality, they also announced to enter into the agency sector.

So how diminishment.

The agency competition.

I think you'll see it.

Gotcha, Let me address your first question regarding the corporate tax.

Recently, I was indicating I see published by President XI turnover shoot China should strengthen recreation adjustments over the high income cost.

<unk> prudent debate promote legislation that would be a full mile property tax.

Ensure effective implementation of our pillar program wafer.

We believe the governments of the world.

Due to its bumped the scope of the Pilar appropriately tags to most cities.

In October the.

The council is authorized to occur out of Tyler.

Property tax reform in certain regions.

Perfect.

That's a new local tax package well play a fundamental role to narrow the gap between the regions.

Cause hindrance or requirements on proactively and prudently promoting to legislative reform on property tax coupled with a carton murky.

Correction system.

September.

Affording us since the.

Putting your existing home sales volume priced so while it's among teens and you referenced where you may see a carnal focus to walk is stabilizing precipitation and preventing over could you the market.

As expanded.

So the scope of polar property types are always tend to most cities piccolo.

Piccolo to all existing residences into incremental.

Nevertheless, it's a focus of the perfect time to be on the multiple restaurants auto races, which is a higher total value.

A high unit price fully subsidiaries.

Quality of the household to ensure the basic living needs, while attaching importance to tens of wells capital amounts of household to Pfizer chips that go off port Goldman horsepower.

The introduction of a property tax will have baked into Charlottesville empowered to market.

So owners of multiple records may sell part of our properties.

Adding to our higher market supply of the Haynesville vacancies sentiment amongst virus even shorter.

However, bumped the long term despite the transaction volume.

Yes predicted on housing supply and demand fundamentals.

The rush now launch of property tax.

By laying a solid foundation for you probably.

You've called the prosperity will contribute to stable long term market expectation that prices.

What are you starting to narrow which stabilized the pricing rationale.

Sure.

Rationalized the market and there are some wholesale penetration is a long run congratulate you might be further on beached rich.

We're talking you have hard home charter rates.

Her ability and their roofs for what at the hands of potential growth in transaction volume.

Regarding the car to the market situation for greater downside.

Central asset, let me talk about separately, let me toss participate at us first.

The office before the coffee lack of paper that we saw across the industry traffic advantage.

It's the natural impulse important to try to monetize their traffic in different ways.

We believe that the both the Boston community.

Simponi fully understand such industry with a low frequency high volume transaction on the long decision making process.

Value provided by the online traffic.

Rather COVID-19 image.

Now to truly meet the customer demand for information.

It's also a thorough understanding of our customer.

Industry, even traffic with vantage are difficult to convert to the transactions.

To integrate online module with the ultra multi bunker northern results were terminated.

Sunshine unfair competition.

Opex disorderly dysfunction.

Including citing low commission rates high rebate on realistic a binding valuation promise.

Definitely both compensation, which will allow us to step on the path of antitrust authorities.

In part in the last year.

Internet companies don't give out those.

Turning to the industrial was a high profile.

All walked away later with a Russian analysis approved.

I'll hop on the phone trouble I'll go with the showcase for that reference.

Inkjet industry must be more than one model or the more than one company that can be successful.

Although forward starts are only one wage auto subsides.

Great. Good evening, so valuable taking good care of the consumers.

We believe in the value of several successful experience and infrastructure to the industry, leading power you have.

He's a true deficiency.

Great. Good evening Saverio for protecting the interests of the service providers paying commissions in time.

And so walk with the with the.

Central cookie or the furnace.

We believe the value of hundreds of thousands.

Wider who'll housing servings a committee for many years.

<unk> is unique amongst <unk> home services and <unk>.

Weighted it means a better over time.

Just as to what we have been doing now.

Perfect place.

By the way all are weak.

Plus our smallest.

Peter do decide to move into the offline transaction.

Actually all of its current marketing moment.

We believe that will have their license flipped from the market and the players who tremendous booth assistant industrial that can be cool.

And the fourth central plan although.

Two soft new although.

While I cannot comment over.

Multi player.

Decisions.

The behavior, but I would like to see the key and the high quality service provider.

Absent the most of the <unk> of the industry.

During the period of downturn Peco will form they support the retention of our key under high quality service provider, So our competition and the benefits system.

Tim culture and organization capability on the business strategy about over here.

Meanwhile, because they send commission Mccann is it the network effect.

Each agent to how much more opportunities to participate in any transaction or the secured most of the volume comps and so the other platform.

Help the enabling collaboration and shared success.

As a result.

The overall show over radio agent at the percentage of store closure on the platform.

The lower the industrial average well more rigid in the downturn.

And they'll have the ability to outperform when the market recovers.

It's a market that's in the adult runs.

The industry production capability and the shrinking as the performance of the store Hunk Baker performance also have some impact in.

In the quarter.

Number overstocked below the minimum sustainable level of turnover. The so called the bright line the Iot to be of a committee.

Onto the platform continue to rise and as a percentage of stole about such level decrease the fund was 37% in Q2 to 33, 7% in Q3.

So we don't know so overall turnover rate of the industry, but we kind of matched healthy price industries into.

He was a down turn cycle.

The trends of huddling together to keep warm industries. The more evidence we noted such as coding of marquee promoter. Most all of the agents who were reluctant to join platform. Finally joins a bigger pie for the number of brands that connect with Baker increased to 300, and so the quarter and also the <unk>.

<unk> newly IGT store from Sonoma sells new home sales channel increased greatly from 22% in second quarter to 29% use of the quarter.

So percentage over store closed due to the poor regimens. Paul appreciate you Paco 41, 7% comparable in Q3 compared to one 1% of second quarter.

Taking no large scale store closure.

Most of the third party store owners choose to stay with the platform and Duncan cycle and to operate the concertedly missing.

Missing English and the personnel the sunk by March store and as a percentage of storm work on the platform increased from 0.82nd quarter to $1 14 this quarter.

Decent quarter over a number of our clients store and the agent.

And for.

Oh October rate was eight 8% compared with 8% in quarter two.

<unk> Beijing, Shanghai remains stable.

So tell where rates open now.

<unk> increased by 1% of total quota then remained flat compared to last Q3.

The average charter rate in the industries of 15% on normal days under work it dwarfs in downturn cycle.

So tell where original agent unpaid carers do consider considerably lower than the industry average.

So based on all of our judgment of the market.

Industry.

Production.

So.

Based on our judgment of the markets. The industrial production capability will continue to shrink and then statutes.

The tone oral agent will be Boston markets.

First quarter opportunity to do too.

Consequently, we will have to say to tell overall putting performance.

Store in Asia increased significantly in line with the market trend, but the outperformance of market condition, Okay <unk> John.

Thank you.

Thank you.

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 further questions. Please feel free to contact vacancy in western nations team through the contact information for White. Our website. This concludes today's call and we look forward to speaking with you again next quarter. Thank you and goodbye.

Yes.

Thank you.

Ladies and gentlemen that does conclude our conference for today. Thank you all for participating you may now all disconnect.

She says she Joe congrats.

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Hello, Ladies and gentlemen, thank you for standing by.

<unk> Holdings incorporated third quarter 2021 earnings conference call.

At this time all participants are in a listen only mode.

Also today's conference call is being recorded I will now turn the call over to your host Mr. Matthew Zhao IR director of the company. Please go ahead Matthew.

Thank you operator, good evening and good morning, everyone. Welcome to <unk> Holdings, Inc. Because third quarter of 2021 earnings conference call. The company's financial and operating results were published in the press release earlier today and are posted on the company's IR website Www Dot Smith electric.

I'll cover I'll com on today's call, we have <unk>, our co founder Chairman and Chief Executive Officer, and meets our culture, Our executive director and the Chief Financial Officer Mr.

<unk> will provide an overview of our strategy and business development and Mr. Hu will provide additional detail on the Companys financial results.

Before we continue I refer you to our Safe Harbor statement in our earnings press release, which applies to these call as we will make forward looking statements.

Please also note that basis earnings press release, and this conference call includes discussions of our audited GAAP financial information as well as unaudited non-GAAP financial measures.

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

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

With that I will now turn the call over to our chairman and CEO. Mr. Scanning pump. Please go ahead Sir.

Since you mentioned Hello, everyone and Cynthia for joining US today, our third quarter 2021 earnings conference call before I go into more details.

Let me first provide a bigger picture view of our industry.

In the past quarter.

Create systematic risks.

Results corruption dragging the developers business model that were based on a high turnover.

High leverage and high housing price our national policy.

So housing is not either for leaving no forced escalation that encourages those housing purchase and renting it'll become a castle in the sky.

If the housing transactions and social industry broadly as pen.

In scale without offerings, some professional services it will be unable to ensure service quality.

More adequately protect our consumer rights and efficient housing market will be impossible.

When we talk to the devices, even if it is difficult.

Referring to intense.

Well there is an opportunity to undertake them.

Accounting tasks.

With a week pay off in a short time, but real crew to generate great value in the long term.

As a participant of an industry in need of reform and on the guidance of the Chinese government policy to correct market instability and create more incredible housing succulents and so my sense says.

It's a big cause duty to show their responsibilities for the grades goods rather than slowly.

Our business needs.

Firmly believe.

How the industry is affecting crude oil development opportunities are promising euro for existing homes.

Better lesions.

He's coming up upon us at an accelerated pace.

With that backdrop in mind.

Talk about the industry and the overall performance of our company more detail.

A series of policies such as a purchase restrictions.

<unk> quarter limits sales restrictions.

References process.

Financing limitation.

<unk> restrictions and arisen.

Alerts from several developers have also dragon drove it down market.

Intimates. The result has been a significant downturn in the existing home transaction market in first tier cities and the most second tier cities.

CTV Avi of existing home sales market decline.

<unk> 41.

<unk>, 6% year over year, while with CTV on new home sales market decline.

14, 1% year over year in Q3.

A sharp market downturn, the ecosystem of the brokerage industry.

Worst quickly.

So number of brokerage.

Our platform shrunk.

Shrunk and the broker registrars fastest severe challengers.

Q3, the number of stores on our platform with a trailing 12 month CTV.

<unk> the line of RMB 50 million decline three stream prevent quarter over quarter accounting for 13.

Three 7% of total stores.

Omission.

Promote at a multiple services and joy for living in China.

We have come to us.

Apart, where our corporate culture optimization capabilities and our two decades of successful operations.

Okay.

Our pivotal role as we move ahead, we have a strong team of seasoned senior manager taking taken charge of divisions Covid.

Provigil and city levels.

This dedicated leaders averaging more than 10 years usual associates at Baker.

Let's see better industry developments at their personal responsibility, where there Susan T and the grit determination.

We are confident.

We can mitigate the tough market cycle and come out even stronger.

During the quarter, we implemented a range of measures to ensure stable operations and a sufficient income for high quality store owners and engines withdrawn to inspire our owners and agents to make the right choices provide quality services in the face of challenges.

And deliver on their commitment to take care of to take care of customers I guess interim interferences refill.

We believe the key is a focus on the collaboration front.

We have.

So literally promoting our agents specialization strategy, increasing productivity through remaining focus.

Second we are we are devoting more resources to new home sales and the rental services.

Sure.

We are further encouraged cross brand crosstalk crap collaboration and.

And the cooperate among existing and new home sales and event rentals.

Rentals. We are also promote John efforts with a new and a seasoned agents as well as we turned the functional.

Functional teams and our business teams together.

Together, we keep our fleets on the ground.

Carryout.

Given our solid quarter, the number of <unk> on our platform increased 2% quarter over quarter to $53 946.

And only one 7% of our stores on our platform closed due to a market correction.

We also facilitate some store merges to improve productivity.

Otherwise low efficiency stores based on a target diagnostics and dropped some noncore radio stores from our platform. This also demonstrates that the aries increasing stickiness among Canadian stores on our platform and in a growing number of stores outside of the hour.

Hum John hit Us for support during the down cycle.

29% of new stores that are joining our <unk> network in Q3 were from external from Yahoo stores compared with 22% in Q2.

The number of agents on our platform was 515000 at the end of Q3.

6% lower than the prior year quarter and the decline was a result of increasing agent attrition, resulting from that market correction for.

For the most part.

This has been the industry normal, but also due to our initiatives in some cities to improve overall quality.

As we implemented.

Risk mitigating measures in Q3, the agent attrition rate in Beijing, and Shanghai remain lower at three 9% better than before.

For fall.

7%, we saw during the same period last year.

Despite this broad challengers are collaborating with spirits continued to be the foundation of our business.

In Q3 transactions on our platform completely.

Through cross door collaborations and propulsion of existing home listings.

Contributed nominally and Jack can edit stores, both remained stable at 17, 6% and 85, 5% respectively.

Moving to our quarterly performance and the measures we have taken with each of our business lines.

Whether it is that with respect to existing home transaction services. According to Baker research.

Sure.

Nationwide television for existing home sales declined 41, 6% year over year in Q3 C. T V for our existing home transaction was 370 378 billion RMB with a year over year decrease of study four 3%.

Specifically GTA V for although the existing home sales decreased by 36, 8%.

Year over year.

Constraining virtually.

Although our business in the down cycle.

<unk> location is the foundation of our 18.

Vision of level brands focus pro customer and professionalism and competitive competitiveness.

And our cooperate bone disease altogether to this end, we ask our agents specialization strategy overall.

Sitting 1000 stores in Q3 covering over 300.

300000.

Hey, Jay.

Transaction completed collaboratively by specialized agents on our platform.

For $29, 6% of the total transactions in Q3 up from.

40.

A 14, 4% in Q2.

We are also making strides in digital empowerment, we love.

The sharp they use it.

Home sales training campaign, which is an online standardizing and intelligence system for Mckesson No training.

Sharp Air training camp.

<unk> the interactions between agents and customers in VR and offline property insurance.

And it provides performance evaluations.

<unk>, our AI capabilities, we can identify best practice in the process as well as each agency weakness for targeted training in.

Q3 <unk>.

More than 125, the agent to be shot they existing home sales training in more than $1 2 million sessions in the future.

We accumulate more data <unk> seen home sales services.

Albeit training can.

Can be used for broader cash no trading fields, such as new home sales and home renovation services.

Turning to her new home transactions as.

As we mentioned the degree of corruption in the new home market in Q3.

City our hour.

Presentations.

According to the National Bureau of status.

<unk> TV product sales decreased by 14, 1% year over year in Q3, our new home CRT TV was.

410 billion RMB, five 2.5 year over year.

Performing much better than the broader market. The overall overall industrial continue to.

Downwards from July to September.

Leading a leading to further build up pressure on sell through.

On the other hand brokerage penetration bottom out in Q3 developers.

Become more reliant on brokerage channels to accelerate sales too.

Brazil the liquidity there.

This in turn benefited.

New home sales channels that provide quality services protecting the interests of our consumers and our wholesale agents moving mobilization capabilities.

We can see this by looking at the increase in a number of new home projects for sale on our platform, which rose 36.

Our sense from June to September while our platform has been well recognized by developers. They continue at a hearing to high standards for project cooperation and performing end to end and risk control.

To ensure timely and healthy tenant collections.

Our new home business, we have prioritized timely payment collections.

Our scale expansion.

Any other metrics.

I will do timing of collection always trumps.

Mission rates.

Strictly implementing an end to end risk management and control system.

Which enable response measures with a 24 hours after a risk rolling is shipped.

We do not expect to have significant risk in our new home business.

We operate in a high independent fishing and have never reliant on resources in domains, our relationships for our gross our confidence comes from the thousands of excellent stores and agents on our platform.

And our strong customer record recognition they have gained by performing high quality services.

We are also forged ahead in digitalization and rich online content for our new home business to provide consumer objectives objective neutral personalized online content that narrows the information that we have.

Encouraging a professional generated content.

OTC, we are building an open platform to enable those professionals to supply comprehensive.

Commentaries posture on Aberdeen.

And he empower customers with more information for.

For you informed decision making capabilities.

This will further enhance the platform generated content such as our how housing dictionary at the end of Q3.

Housing Dictionary has achieved 100% of courage of the tuck in new homes on the market.

Not fully interest rate, we create China's biggest database describing on colorable factors of new home projects.

This lays the groundwork for Baker to bridge, the information that they provide truly reliable and adjust for new home content.

Moving on never stop our position to pursue our top quality services.

Given our market corrections, we believe it is more important than ever to emphasize a governance of a new home business conduct at the end of Q3 <unk> commitment to developers have covered all develop developers 66 cities.

11 solvent.

And maybe when new home projects in total by mid October we identified a total of 47 misconduct and have provided nearly 2 million RMB in compensation to give up us fulfilling our commitments to them.

Moving toward emerging services in Q3, we steadily progressed homerun.

Home renovation business, including self operated paywall and ashamed to which we are in the process or acquisition.

They were completed.

<unk> thousand 127 homes, England unions in Q3.

Up 35% quarter over quarter while.

The contracted sales or shouldn't do also increased more than 35% year over year by the end of Q3.

Regarding its operations.

Cheap breakthroughs in empower imposed services providers and customers in Q3.

So its providers.

<unk> Academy the industry first full service is the vocational training base.

<unk> opened in September.

And to calculate.

Our renovation professionals across the industry chain new.

Turning design designers for men with <unk> and the more.

The focus is is on general on the professional.

Competencies and leadership September 394, four men took part in the training.

<unk> patch by the shortage of high quality services providers industry infrastructure, such as <unk> Academy. He designed to upgrade renovation services standards and.

We now have industry.

But it for prep practitioners achieve personal growth. Meanwhile, we upgraded our homestar system to manage and empower both formats and workers. This upgrade.

Allows even even the construction process to be standardized.

Modularized.

First distributed and a manager to the finance granularity leopard and materials are centrally deployed by the platform.

Accurate.

Controllable budgeting process.

For customers they were launched.

10 heart to heart service commitments in September to address the renovation industry key pain points for customers.

<unk> include double compensation for malicious increase.

Beyond the scope of the contract.

Pablo reform fall under the Turbochargers triple compensation for use in FIC materials composition for delays and six others covering all alerts hub.

Covering era.

For us of budgeting materials construction.

Timelines.

And the services.

In summary.

In this round of corruptions.

We are accelerating our thinking on the additional value we can create for society in essence, our social responsibility, we should take the answer has become increasingly clear.

In China.

Are you ready for a better life is reflecting in their desire to leave and the work is joy.

Angela.

To facilitate Joe for living and we hope to provide a reach of a variety of high quality.

Affordable housing services on a product for those including our fresh.

College, Brett graduates low income growths.

From new herbicide him.

Therefore, we are devoting more talent and the resources to innovations and our rental services in.

Generate generation or older.

Substantial communities.

<unk> facilitates work.

That is rewarding and fulfilling with the government's support over cash no education warehouse, how his tabulation, a multiple layer training and education system for housing services providers. This includes the original force Academy for broker brokerage Ridge brand owners Hartzell.

Academy for storm nurse and a bet on a big brokerage Academy for engines as well as cross Academy for renovations doses for others as we mentioned earlier.

So this will have more home ledger social providers that are past for long term career development and cultivate more high quality professionals and technical experts and for the industry.

All in all.

Despite a short term impacts on our business and the industry at large during the market downturn. The overall trend in the housing market remains healthy.

<unk> regulatory authorities Harris earned it multiple times per marketed concerns consumers.

Reasonable funding needs.

Ah gradually.

Good.

Meanwhile, but accelerate the introduction of a property tax pilot program, we believe that our long term regulatory mechanism can be quickly flopped.

In term, we see we see us promote.

For promoting.

Emergency of a new patch.

<unk> homes, and the quality of services sooner than we expected the real real estate sector.

<unk> developed countries accounts for approximately 10, 2% of our country's GDP housing.

Housing investment market makes up only about 5%.

And the rest in the rest of comprise a broader array of housing services. In contrast, the real estate sector contributes to nearly 7% of China's GDP with housing investment.

A majority of China's real estate sector.

Indicates massive potential in flour.

For our domestic housing in terms of the industry.

Past few years have been a golden age of real estate development.

Then the next five years, you won't be the age of Java, leaving.

Categorized a quality house housing services.

Short term saturation imposed on long term.

Such a cooler trends.

A simple noisy.

We follow our you know campus in the campus and a real position to become the leading comprehensive home services providers for a further 300 million families in China.

With that I would like to turn the call over to our CFO Tiago for a closer review of our third quarter financials century.

[noise] such a study that's all I have.

For our generic I would like to provide a brief overview for our third quarter of 2021 financial results.

That's the way guided in the second quarters call in past several months, we saw a sharp drop off the overall market, including last auction.

New home market.

In our home market.

Sensitized to crackdown on speculation with array of coding virus from a project tightening to referenced home price being rolled out.

Just had to adversely impact our operational and financial result in Q3.

So we are experiencing.

On the sharp market downturn, we still want to emphasize that our three fundamental to date towards industry.

FERC.

Housing is one of the largest the most of the <unk> industry in China.

Candidate aboard digital disruption.

Second agents are underway, we continue to be in the festival, which will transaction under competing power to thrive.

The third.

<unk> in our corporate services build customer trust in the <unk> market cycles.

We are confident that our continuous effort in maintaining the best cost to service by providing by supporting our agents on the photo upgrading that infrastructure and housing transaction services well hop growth goes through the cycles and further improve our service quality efficiency underpinned with scale.

We maintain a long term view in pursuit of our mission to transform to housing transactions under services industry in China by leverage all of our people data insight technology on the price of oil.

Turning to our financial details in Q3.

<unk> revenue was RMB 18, 1 billion in Q3.

Care to RMB 25 billion in the same period of last year exceeding the both high end of our guidance on the street consensus.

The year over a decrease was primarily attributable to the decline in total TPB opportunity, 9% to RMB $830 7 billion in Q3 from RMB, one <unk> trillion data same pure opportunity to trend data.

In particular, I'm not revenue promptly hitting home construction services.

That's point 1 billion in Q3 compared to RMB eight 8 billion in the same period 2020.

Primarily due to a 34, 3% decrease.

You can pick any of it in home construction to RMB 307 to $78 2 billion in Q3 from RMB $576 1 billion in the same purion in 2020.

Like bond slowdown of exiting home market, which was affected by serious market coating matters.

Especially loan quota would be missed in Q3.

Our net revenue from new home transaction services.

Increased by two 5% to RMB 11.1.

$11 3 billion in Q3 from $11 1 billion and Purion <unk>.

Primarily attributable to a moderate increase of our new home transaction Commission rates.

So <unk> of new home transaction was RMB $410 1 billion in Q3 compared to RMB $428 7 billion, that's immaterial philosophy.

Our net revenue from the merchant and other services was RMB 610 million in Q3 from RMB 625 minute interesting Bureau to Detroit.

Primarily due to a decrease of net revenue for financial services, rather than just going home professional services.

Which was partially offset by a 29, 4% increase of net revenue from the renovation services.

Cost of revenues.

RMB $15 3 billion in Q3.

Compared to RMB 16, 2 billion just in pure off 2020.

Gross profit was RMB two 8 billion in Q3 compared to RMB four 4 billion gives us Empire of last year.

Gross margin was 15, 2% in Q3 compared to 21, 3% of the apparel for 2020 so.

So a decrease in gross margin was mainly due to a lower contribution margin or is it new home transaction led by a decrease in that revenue from in home transactions on the royalty prior to fixed compensation costs fall into Egypt.

Operating expenses.

Our RMB five 1 billion in Q3.

Compared to RMB, four 5 billion in the same periods.

General and administrative expenses were RMB 2000, $412 million in Q3 compared to RMB 2000, 649 million in the same pure opportunity too.

Mainly due to the decrease in sharpest compensation expenses, which was partially offset by the increased personnel costs on the bad debt provision.

Selling and marketing expenses.

One <unk> thousand $200 2 million in Q3.

Parents, who RMB 11.

Many interests imperial to disciplined manner.

Mainly due to the increase of hydro development personnel.

Research and development expenses, one thousands and.

43 million in Q3 compared to RMB 789 million in the same period of 2020.

Mainly due to the increase of high quality experienced research and development personnel.

In addition, we recognized the impairment of well of RMB 397 million in Q3.

Packaging new in the same period of 2020.

Basically more constructive on the longer term view of outlook of the business off of Perused the acquired Ics.

We conduct a comprehensive risk assessment.

Asset valuation.

Made a sufficiently impairment provision accordingly.

Loss from operations was RMB, two 3 billion in Q3.

Casualty loss of RMB $81 million in the same carry opportunity 20.

Operating market was.

<unk> 12, 7% in Q3 compared with negative 0.4% in the same period of 2020, primarily due to one a relatively lower gross margin in Q3 compared to the same period 2022.

The increase of a percentage of total operating expenses net revenue in Q3, primarily due to the decrease in net revenue along with the relative rate applied to recruiting operating expenses.

Additional impairments of who Wow, that's a lot of substance provision of RMB 250 million incurred in Q3 compared to the same period the opportunity today.

Accordingly, non-GAAP items, our adjusted loss from operation was RMB South in the 435 million in Q3.

Compared to adjusted income from operation RMB, South into 714 minutes with the same period of 2020.

Adjusted operating margin.

Seven 9% in Q3.

Back to eight 5% in the same period of 2020.

Adjusted EBITDA was.

With Nokia of RMB 550 million in Q3 compared to RMB 2000, 248 million in the same Purion 2020.

Backlog was RMB south on the 756 million in Q3.

Compared to net income of RMB 75 million in the same purion attributed.

Excluding non-GAAP items.

Our GAAP net loss was RMB 888 million in Q3.

And back to net income of RMB 1858 made it into same period 2020.

Backlog.

We will go to pay your Holdings, Inc. Ordinary shareholders was RMB south of the 765 million in Q3.

Got to RMB $271 million sustained periods of 2020.

Adjusted net loss attributable to <unk> Holdings, Inc was RMB $887 million in Q3 compared to adjusted net income attributable to <unk> holding Inc. RMB.

857 million in the same period to neutral there.

Diluted net loss per ads attributable.

Attributable to <unk> Holdings, Inc. Ordinary shareholder was RMB, one five in Q3 compared to RMB, Daryl <unk> III in the same period of 2020.

Adjusted diluted net loss per ads attributable to <unk> Holdings, Inc. Ordinary shareholders was RMB 0.75 in Q3 compared to adjusted diluted net income per gas attributable to Covid Holdings, Inc. Ordinary shareholders RMB 138 in the same peer opportunity today.

As of September 30th 2021.

Combined balance of cash cash equivalent restricted cash and short term investments amounted to RMB $52 7 billion or USD $8 2 billion.

Additionally, as of September 32021, the balance of our long term cash items, including a lumpy investments.

Wanted to RMB, 15, 9 billion or USD, two 5 billion.

As we mentioned at the beginning although there have been some problems in the housing market the risk, which brought us to keep the net impact to our business in Colorado, but.

But it's also a transport take moment unlocking work folks.

Books more on 30% of our business and the refined our amendments under distributed resources more effectively paving the way for us.

Site opportunity.

For the long run.

Because often experience going through numerous challenges, which gives us capability to remains they fought against the market Volatilities.

Cope with it.

<unk>.

In case of market downturn, we're closely after market changed under timely across all of our business strategy to ensure the rapid implementation of sorts of adjustments.

Our initiative increased focus on efficiency cost momentum to post synergy and allocate the resources.

More efficient oriented and the risk aversion.

There are some errors in phase III <unk>, two new shows a common spectral accretion of the new normal.

For example, we introduced the new operation metrics, including the nonprofit install an ICU agents on our platform to better reflect our business progress.

First of all Patrick.

Patrick Great importance on our accounts receivable collection by building a comprehensive risk control Mackenzie so closely in mortgage.

<unk> credit cards changed instead.

In South Dakota, we have booked by a provision for all remaining receivables related to average brands.

Several other survivors with them like the popular opinion in order to reflect our recent Friday quality changes.

Turning to Q4 guidance.

According to Baker Hughes.

Huge.

Nationwide the GTP in home soft market.

Despite twofold over 47, 4% year over year in the fourth quarter.

While National Watch T V of new home transaction market.

It is 5% to 21% year over year in the fourth quarter.

It's all about the region.

Looking forward to fourth quarter of two new tier one we used $5 net revenue to be between RMB 14, 5 billion under RMB 15 5 billion.

Representing a decrease of approximately 31, 6% to 30% from the same quarter of 2020.

This guy got.

Refer to the potential impact of recent property market related policy measures as a company car and the preliminary view of the business and the market condition, which is subject to change.

Over the course of this year. Despite many challenges we have encountered.

Well continue to weather the turbulence.

Got to provoke growth for ourselves.

Lots of noise inspiring individuals in our organization to five 5% the net Rab Okay Bob.

Well now employ well never given where.

Well not backdrop at the never stopped doing what <unk> always known right.

We're fully in cars the policy change as strongly there for instance housing for leaving bulk water degradation well for the long term favorable environment for the industry.

I'll speak to our Pos which is a full commitment to serve our clients better.

We are confident that way or just stay resilient and to have our baidu recognized.

This is what <unk> been doing.

Cloud perfectly, but we are on our way.

That concludes our prepared remarks.

I would like now to open the call for your questions.

Peter Please go ahead.

Okay.

Ladies and gentlemen, if you wish to ask a question. Please.

Star wanting a telephone and maintaining can be announced.

And for the benefit of all participants in today's call. Please limit yourself to one question and if you have additional questions you can re enter the queue.

So I'm going to ask the question in Chinese Please follow me an English translation.

Yes.

The first question we have is from lithium child from TICC. Your line is now open.

Hey, Stanley Telco Matthew.

Well thank.

Thank you Glenn.

Sure.

Anytime youre kind of thinking.

Thank you. Thank you. Thank you thanks, Jason.

And then let James question Jim.

I would tell you to me and I'm not sure how Nintendo jewelry now.

Jacob Swatch now anyway.

Yeah.

I'm doing.

Well now take two Hyatt Chicago Shalala Chew bags.

No question that we'll maintain.

Okay cool.

I will translate for myself.

I have two questions.

We have seen margin improvement.

Calling housing market.

What do we do.

Hi, This is Brian.

So I think marking to bottom up regulation of life.

Todd.

Of transactions, well, well well well.

Hum.

Transaction volume and secondly, what guys are concerned about the state owned property.

Which are like Oh, you got it right.

It would take months or pardon me block rates.

What do you think of the government's attitude towards neutral position.

Okay. Thank you.

So good evening, let me address your question regarding your first question Doug.

Duffy Fischer deployment onto long term cut itself relative to the market.

75 two.

We have witnessed the largest ever regulatory package in terms of the quantity and the type of policy.

Including the restriction on property purchase loans.

Alone sells pricing land auction irrational price cut financing and the payments as well as the potential property tax.

Calculates a property market across China quickly froze in Q3.

In home sales market that dropped to 41, 6% year over year into television on par with our guidance in last.

Earning release call. So the crowd the new home market. It was larger than all repairs expectation down around 14, 1% year over year. The downturn in Q3 was a cross board rather than one single segment, showing a trend effect from the credit tightening to according our bodies and home sales.

Other than towards the new home sales in that market.

Our price cost in terms of water were sitting at home in southeast vacation.

I think especially on the behaviorist market participant resonated led to a pattern of credit crunch impeded the transaction.

And the downward revision of interpretation.

In particular transaction volume off of existing home sales markets are continuing to drop month over month in Q3 to a long term.

So our long term historical law, which sounds like eight to 10 years low record housing price for wildly under our home homebuyers and suicides index has fallen to a low level since 2019.

So marketing come from the sharp fluctuations in loan origination paces.

That's the first year adopting the housing loan concentration amendment waste.

So a mismatch between surprises supplier in the marketplace.

Average loan origination cycle, it's new towards 10 in Q3.

77% loan growth in the same period last year.

A large number of four.

Section hub.

In the same time.

Total for 14 cities introducing.

New home referenced price policy.

Downpayment requirement for the how purchase for a while.

No.

With regards to those disputations property price on the overall market sentiment has been significant tenant.

On the other hand, new home sales in China also dropped sharply in Q3.

Prior to September it's a new home sales are we are still in China decreased by Nike.

5% 17, 6% under 15, 8% year over year perspective.

Marketing September was the worst one seven years.

The new home sales market under the existing home sales market are highly correlated.

China around the 40% from new homebuyers come from improvement in model using home themselves.

After using homeowners.

So you tend to long cycle, we'll wait and see sentiment for the existing home sales market affect the process plant for the new homes.

The new home price falling late in.

The ROIC in certainty of Viper further deepen so we can see sentiment about the pilots fly to new home sales market cooled down promote sleep.

Just on your home South China in Q3, a season during the so called cashless Keith developer, we're motivating south China wildly to accelerate the sell through of the leading to an increased penetration rate for the sales channel.

Risks in new home sales channel also marking up.

Yeah.

Give our per screen suppliers.

Working capital.

In the late payment of our concept payable or so-called our accounts receivable to the suppliers due to some industrial supplier.

Looking to the incoming policy on the regulations in short term policy issuance dispatch who P call.

And the market <unk> to a period that drives the previous marketing curve underway. It is it is unlikely for auto policy tightening up.

In terms of the Hudson priced according to Baker Research Institute on.

And after September <unk>.

Housing prices dropped to one 5% on average from the highest this year with some cities cutting out the price cut.

In terms of deleveraging to improve the financial housing in 2020% to 40% of a 100 listed goodbye efforts successfully lowers our risk rate versus 2019 in.

In Q3, 2021 residential housing leverage repo to a nine year slow in October our pretzel overrides premier of the console New hope there is that a reasonable capital G Mount and real estate industries being met.

China, well, the two unchanged path towards the housing environment our.

Same time other financial regulators also responsive market concerns.

Given the effective regulation results under the <unk> constructor voting under the price, we foresee a significant lower frequency over the policy tightening a heightened in Q4 versus last quarter.

Which is the pace of the real estate private supply stabilized, which may bring some marginal changes to the market.

Policy impact onto market sentiment rollout for a considerable time.

Todd.

From a long term perspective.

China's economy upgrading from high speed growth model to a growth in the system that is balanced of what we do see all around the tightening or really the.

Financial policies.

The acceleration of Pilar to property tax reform signals advancement of a longterm Academy.

And our intention to pursue all but deleveraging on the Derisking both sides of the requested on the device side.

Despite askable short intense.

When he is proud to receive hauser more alternate routes to market in the future.

So based on our observation of dimension.

Downward pressure on <unk> home on the new home market well continue beyond Q3, looking to our Q4 changes into what the Ptv.

Home sales market is thought to me to a philosophy class down nearly 50% year over year.

The 25% quarter over quarter.

While the <unk> of the new homes market, well dropped by 2% year over year.

Oh 2020 to GTT.

CTV is expected to drop by more than 10% both in home sales market under slightly for new home sales market.

So all of the Florida Ptv level.

<unk> new home market.

I expect it to bottom out in Q1 2022.

In the second half of 'twenty to neutral as a market for late pricing the regulatory part of the policies.

Policies under stabilized ratchet demand, while call me and natural market recover prospect stock doubtful.

I want to reiterate our position to the market.

Don't underestimate the power of the policy to cross market Activations and don't under estimate the supporting power of Bakken supply demand dynamics.

Regarding the new home soft market price, a monkey shorten time repairing pressure give us.

Her well push themselves to promote itself.

Cash.

From a long term perspective.

<unk> shipped from financing driven two operations, driven Ingersoll focus approach that well face the higher requirements on product developments in the car T cells.

Given the increasing divergence across cities you referenced the increasingly customize the south strategy under comprehensive use of our triangle should be a clear launch and trapped namely <unk>.

Increasing penetration rate of new home in South China well comes in.

It also presents a more chunky for peco to pursue full cycle partnership with drivers.

In Charlotte.

<unk> presented a policy recreation and the rapid market, putting all intrinsic to know what browser profounder market correction over the longer horizon. The market is not as bad as what we could see right at this moment.

In terms of new volume to the.

Market watch confection boarding this year, well still positive growth versus last year, while it's a policy such as these in home referenced price have not changed long term supply and demand dynamics.

The mismatch between land projects supply and home picture should be primarily improved so from London. Despite your market fluctuation a normal but the long term mechanics of being in place.

Or.

Or or could be in the market, while normalized towards a keyword over supply demand balance.

Regarding your second question.

As a.

Well, we'd like to stay out.

Central government level are well established literature, you have implemented system, just crucial step to standardize the Roes amongst orders.

And our robust real estate transaction that the midst tritium system, how garments to evacuate like a property listing on the transaction data.

Take a final decision on the Roku luxury actions I know why the wild swings in some market due to potential lapsed policies also there to kind of help garments to address the issue of acre property listing on <unk> competition Huntington to industry.

Thus contributing to the better performance of the service provider and benefit for those who can meet Ducati service like a Bay club.

As a consistent advocate a beneficiary of the regulated on the collaboration market.

Pro formulary supposed garment to upgrade the mix change of systems and is working with government departments in <unk> NAND.

<unk>.

As a farmer level local real estate.

Local revenue for the year of the <unk> system dated back to 2012 since the drill into each of the <unk> system with similar function, helping establish in nine cities, including Beijing, Shanghai, Chengdu and Sherman According to current statistics.

So for the purpose of this system. The way you want to clarify firstly Garmin has no intention to directly intervene in the transactions.

In a powerful position to carbons market is through a well regulated commercial institutions to navigate through the various transactions.

And processing involve significant risks, which can be shouldered by commercial player for garments.

Although our country the right engagement in transaction by the association of carbon requires a significant commitment of Thailand, The financial Resources, Inc.

Including formulary formulation will reduce research and development investments and our continuous system maintenance on the duration and it's also as opposed to the grades in the transplant process.

Secondly.

Garments are neutralizing that last new who service, including the social security housing.

Housecarl module.

Our property investment module has been included into local either.

<unk> system of Hangzhou, Shenzhen, which is interviewed as a parcel normal locally Mr treating system upgrades.

Certainly.

There have been hunting hunter instructions without an intermediary or across the country.

Picking Hangzhou for instance from 2019 to September 20 221.

Average, 20% of the transaction volume come from Huntington pulp a brokerage pre transaction.

Mostly between the family and friends.

Suits upgrades at the E administrative system in place.

So it's transactions into a more convenient safe process.

In terms of all the deliverables of our composites of information system or transfer system depends on the level of improvement is off a consumer experience the transduction efficiency.

The tail end of the financial resources to meet the operational experienced accumulative over time.

<unk> has a proven track record across state aid for the hub.

Deployed online.

But she have implement system for years also demonstrates that our standard standardized market <unk> contributed to the rise of the clock agents.

Our standardized the marketplace with authentic property listing has the most direct impact with those who attractive credit suite of fixed <unk> and social who rely on somebody shirts competition ice cold order or customers get into part of the pies.

Koernke serviceman to the platform.

Where do you believe that along with upgrades of the <unk> system and further market penetration.

Efficient supply well before the script at the start by repeating quality service providers.

400, <unk> brokerage free transaction tend to remain stable in terms of absolute too.

Volume at most of them are not affected by the changes in market conditions.

<unk>.

Embers.

So we can foresee in Hangzhou, the upper Greenfield so comments online seeking homeless consistent has an insignificant impact to local transactions like <unk> and bakers pride locally.

And a portion to peso, what's the window. So far it's a function of shouldn't erroneous information system managing crude first only a QR code that generates four properties.

Chemicals generated for appropriate firstly based on the current information system kinds of property owner published Saturday in other website increased with the insurer to affect profitability in frequency on the platform can be further gets filed since it good for Baker.

For stockholder meeting website.

And the property owner is the required to engage.

Exclusive sell side agents wasting a given period of time just transfer.

Transformation against the multiple listing agent model in the industry helps to solve the problems of our ice cold order getting the low quality low price competition set hobby plate so industry the system.

Time to purify the intouch environment under standardized home construction market.

Now on page <unk> powerful consumer assessable to more home listing agent information, while ancient kind of seek efficient collaboration supported by the platform blues and the infrastructure because the core platform value and operation capability are benefiting from those launched Garmin E. W.

E <unk> systems security.

Thank you Okay. That's Nokia.

Thank you.

The next question from the line of Miranda.

Think of America. Your line is now open.

Thank you.

Outstandings on how good Matthew.

Thank you. Thank you that's it sounds like just even a couple of senior bankers sounds CFO John.

I can answer your question.

Yeah.

Yeah No question yeah. Thanks.

Thanks management for sharing today and for taking my question.

Can you please elaborate more on the latest developments and expectations.

Business and others.

Thanks.

Yes.

Hum.

I think well know what you're trying to.

Dana doors Ross on for <unk>.

I can tell you if you don't sell total year on year beyond that.

Th, Iran, China tier high tier two tier chinedu nando to fill on that front. So you don't want me bundle beyond.

And how much CTO generally Glenn.

Turning to either for.

As you know I'm kind of on the demand.

Gideon until sure sounds good.

One two Q2 the tier two players.

Sure and keep it or we didn't go John.

Managers are falling from a classical Shandong.

Sure Dana.

Jim you seem to sportswear.

I don't really have shrunk orders without doing some cool idea originally even Hershey, Patricia adhesion and I'll say Julien on United team since you couldn't ship.

Sure.

Noninterest shut down the whole year.

Tom will clear a lot of money should be each one since you.

<unk> you just have.

When you go through the higher silver.

Yeah, we did at 19, Schindler doomed triangle changing yes sure.

Okay.

Hi.

Because again I'm sure whenever you're trying.

Joining me today.

In defending nitrogen foudre jungle foudre shearwater in isolation waiting to hire 20 wholesale entrance either shown to you.

We went into digital geopolitics.

Yeah sure when we're kind of on a Sunday so you've shown some of the issue on the feet on Street English I'm going to do that.

We haven't been Ashwin yeah.

You can just see the acquired volume.

For combined freedom class with Ginger.

I'm with you on Argentina to conduct routine and should pay them.

It sounds like that's what's going on.

So if we don't go down to the Doctor.

No woman.

Sure Paul Ito senior George on the function from Hong Kong, All contemplated hi, Joshua.

Uh huh.

It was going into the shoes of hydrocodone that.

A way to find out the timing issue.

So knock on doors, where are you guys mentioned.

Wash leader.

To the clean more.

And you had a kind of a 1 million ounce a year number one.

On a core EPS.

Queen Moore, she's a dog.

Yeah.

Ah well be shutting your ROA commercial yeah, then with honey do feel John even through June.

At the end of a year.

And entrepreneur.

Quarterly you might use agreement.

The news release.

Tamara Ward.

Rick.

Okay.

Patricia Hume in Canada.

Cause I never went in and what type of cleanup.

Yeah, let me quickly translate so this is dynamic because they address your question. So firstly the home.

Renovation and decoration business is very similar.

The housing transaction business, meaning.

Overall industry size over b, but overall the user experience extremely.

Worse. So we do believe in this industry, we have a lot not lots of opportunities can continue leverage what we have accumulated in the past two decades.

So for the home decoration business, we do have a couple of statistics in terms of the overall Oh crap firstly.

The overall Hana customers will continue more focus on the economies. We do believe that will be the fundamental right because for the if you look at the recently the policy you can definitely the Arthur Conan highest.

It's a new homes, it's pretty much has been passed so the next euro four is happening will be that.

People, it's more focused on the joy for leaving.

So we do believe the opportunities will be.

Arising from these kind of transition period.

We do believe the centrifuge management will continue help us and <unk>.

Also help the industry to upgrade right, especially followed by some of the other initiatives for example, like mall Digitalization, we do believe we kind of restructuring and to continue our practice of about those kind of a scientific management into the home decoration.

And renovation business.

For me, it's about the value about the.

The service providers in the home decoration and the renovation business.

If you look at the overall.

The conditions for the service providers in the home decoration and the renovation industry is still relatively low so fi doing continuously training as well as the upgrade for those kind of professionals and we do believe it will be helped us to continue help those kind of.

These providers to further improve their professional career as well as a whole professionalism for the whole industry.

So in summary, we do believe the declaration.

<unk> and renovation business its not a naturally so causal faster industry right now it means we continue dedicate doing the things difficult, but right right that's behind that.

And that means we will be a lot of challenges as.

That's why it's beautiful it is oh, we were facing but we do believe our fees as well as our.

Opportunities as well as a matter, we actually have seen accumulate in the past two decades will bring the continuous value into this industry.

Meanwhile, France, our comedy side.

Well I think some people talking about the difficulties for the home decoration business.

Whether it could be something like a 1 billion RMB revenue why <unk> and why they are a company could achieve a lack of convenient RMB of the revenues overall, so we do believe.

Definitely there will be some of the new peers emerging from that industry and to reach of those kind of tenant beauty RMB around new milestones.

The foreseeable future and definitely pick up also we have a lot of opportunity to achieve that as well.

So you will need to sign up with anything from them or give them or we don't.

Cool whip off in digital.

Sure Jim Good to hear soon Shan Shan Shan sounded lutron, who signed the dilution to EPS.

She was the heart function Chino hung.

But nothing out of the downturn.

That will cause your harder bluntly.

Sure Cleo harder.

So it's a hard one.

Sure Jeff.

So you're saying that you don't pay out Oh Gee.

T shirt.

So when you're talking another for foundry and you don't have not seen it yet.

John.

Yes sure.

I don't know that.

India now volunteers Eva you.

You don't conclude it on time.

Eva <unk> CFO.

I know you don't Misread me sure.

Janet Woodruff due to challenging now.

Yeah, Hi in South Asia.

T. Yeah hydro drove two years I've done I've read on the digital.

So we don't go nutrition, because your other counterparts.

Got it.

So in summary, as I mentioned before so we do continue to focus on the street part of asphalt right. So firstly, a whole weekend a rounding helps our home services, we can further improve.

All key management as well as by upgrading the whole service procedures, a pilot continuously digitalization secondly, the scientific amendment will be our key focus as well.

This weekend.

So the improved efficiency for the whole industry on Sir part in most of the important thing is how we can continue to bring the value to the service providers into the home decoration and the renovation in San Francisco, continuing improving their professionalism as well as improve their DNA to further product for the work.

Uh huh.

<unk> as I mentioned in German speaking.

In terms of our home renovation and decoration services will continue to focus on how we can further improve the overall customer's user experience we.

We do believe that's a very tough comparison for us, but we have the.

The trust as well as a confidence we can continue bringing our mission into reality, which is means.

So it's a service provider with dignity as well its chart for leaving ultimately.

But I think there's some new wins.

A different audience. That's up you were gone for Jennifer She Oh, you mean.

I'll try and get behind you can do about that.

It didn't cause any of that I am not Disney is going to change your children.

These are the autonomy so everyone you're talking thousands you know.

That lends itself to be digital.

What kind of tone was good to see.

Uh huh.

Hum.

Sure go pinch.

She is a dominant issue digital four tenths of a D C, but do you like petroleum.

It will be cleaner curve year mailing system too because as long as usual.

So let me continue with Genzyme.

I'm not sure we don't traditionally you've trimmed up all the time.

Hum.

I know the agents, but we're going to do.

Because a lot of interest where you would either Dr.

You are not just a tool for Tucows, Inc.

Oh, Gee country, leaner annuity and a huge or a typical one that baker she won't until the judge.

Nothing interesting negotiating a baker's Ricky thanks, Jonna I'd probably come through now.

So good of you to ensure the home cylinder to Johan bulk one thing Jay.

Who can Uh huh.

As you know, we don't confuse that Coldwater I truly do Donna.

The agenda for two now that you're going to see timing of Cambodia. So is that you can't change on those young women, who originally from there sure.

Sometimes even though you wouldn't be interferon gesture, what ashish again from Jupiter two COVID-19. So it will challenge you took again, that's the kind of on a 200 room.

Yeah, so either drawn Josh alluded.

I alluded in the call so you're going to your advantage when they got you didn't do so well.

I really wouldn't go into the year.

Gallium due to check all kind of shown in downtown shopping journey.

Do you own them understand yet undrawn rule, so I tend to talk plenty of detail here.

After that he or she is often as shown here.

He or she media Google put in that sense to somebody in a job I don't that aren't being.

Put another downturn nobody's attributable to mezzanine downturn since we went on.

For two months.

This is Danny I also wanted to give you additional congress in terms of the previous question regarding to the so called in the UK.

Your comments are administered six tenths room right. So although we do believe it's a definitely there'll always be a bigger player.

Provenance underneath of the smaller platforms right. So in order to better her to see what the intention behind the comments, we need Luke has a policy trend in China. If we look at the general auto policies in China definitely and there are two major parts. One is hospital beginning in all sorts of activation and otherwise.

So the encouraging of both of the housing purchase and are ramping right. So based on those two of the fundamental policies as well as add on the recent trends such as a pilot program for the appropriate tax we do believe the.

During that kind of.

The ability of the policy trend.

Our bakers value will continue schein since we can provide a very comprehensive solutions and which is quite in line with those kind of policies trend going forward.

Meanwhile, we do believe our as we mentioned before so our.

Fundamental or infusion for our business is also quite in line with two of the policy direction right. So and there are those kind of assumptions we.

We do believe some of the rumors will be definitely feet away in the market and as far as we can continue to to a hose adhere to the policy continued to improve the efficiency as well so it improves the user experience, we do believe our bacon.

Nobody will continue shy I will continue.

Two bringing the value into the whole industry. Thank you.

Uh huh.

Back to Johan.

Thank you.

The next question from John <unk> from UBS You May proceed with your question.

Thank you.

Yeah, I'd say when you count all the tape in Ohio.

Okay.

So you're going to shot show when you talk when you take a shade of hot right now you've got all my jogging My God.

Uh Huh time they'll go nationally.

Quite a haul began platelets.

And finally, I just figured I'd ask.

Much much right.

Anyway, the Lumpiness is challenging.

Hey, Glenn.

Oh, Nick Junior in the heart I suppose that that would be true for Titan.

She can enjoy all ongoing.

That sounds again.

How are you, saying that you guys have any sense of merchandise.

But you know what I find this out with LNG I have two questions. The first question is mainly on the property tax so how the property tax effect the bias and also the soundness sentiment and also on their purchasing behavior.

And also in Australia management here anything should be cutting on the implementation details of the <unk>.

And secondly.

Regarding on the competitive landscape. So first on the one hand, we have seen a centralized has a massive layoffs.

About 7000 people.

And also with their senior management also left the company.

Same time, a major online media company towards how they also announced to enter into the agency sector.

So how diminishment field.

The agency companies.

Thank you.

Some culture, let me address your first Cushing regarding the corporate tax.

Recently, I indicated you know what I see.

By President XI turnover shoot China should strengthen recreation adjustments over the high income cost.

Brian actively and prudently promote legislation football property tax and ensure a five year implementation of our pillar program wafer.

We believe the government will definitely do that.

Sponsors scope on Pilar appropriately tags to most cities.

In October the Council.

Also rise to corral to Pilar, a parlor property tax reform in certain regions.

Perfect cut at the new local tax package.

It plays a fundamental role to narrow the gap between the richest approved cause.

Cause hindrance or requirements on proactively and prudently.

Promoting to legislative reform on property tax coupled with a card in the monkeys.

Correction system.

September.

The 14th.

Existing home sales volume underpriced, so while it's a monkey retina Roberts.

We really see kind of focused work is stabilizing limitation under preventive over could you the market.

As expanded.

The scope of Pilar property types are always tend to most cities a piccolo to all existing residences in the incremental.

Nevertheless, our focus at appropriate times to be on the multiple restaurants or the residents with a higher total value posted a high unit price.

For the subsidiaries the affordability of the household to ensure the basic living needs well attaching importance to tens of Wildscape amounts of household Jupiter chips that go on pork Goldman horsepower.

The introduction of our property types, we will harvest victim to shelter impounds or market.

The owners of the multiple reckless may sell part of our properties, leading to a higher market supply the hansell vacancies sentiment amongst piracy in the short term.

However, bumped the long term despite your transaction volume.

It's predicted on housing supply and demand fundamentals.

The rush now launch of the property tax.

By laying a solid foundation for it.

Common prosperity will contribute to stable long term market expectation that prices.

Wondering in such a scenario with a stabilized surprised rationale.

Sure.

Redwood rationalize the markets and there are some loosens a fluctuation is long run congratulate the amount before they're on beached rich.

Resulting you're a hard home charter rates, but her ability and their roofs for or what is the hands of potential growth in transaction volume.

Regarding the car to the market situation for greater Donaldson, a central asset let me talk about separately, let me talk about <unk> first.

And offers before the coffee lack a better diner base cross industry traffic advantage, let's.

It's just the natural impulse important to try to monetize their traffic in different areas.

When you get inside of both the Boston community.

Simponi fully understands that your industry with a low frequency high value transaction on the long decision making process.

The value provided by the online trust the models right.

Rather COVID-19 any meat.

Now to truly meet the customers' demand for information.

It's also a thorough understanding of our customer.

Industry, even perfect advantage out difficult to convert to the transactions.

So integrated online module with offline multi bunker northern results from a shop terminated.

As I tried to unfair competition kept opex is ultimately dysfunction.

Including citing low commission rate pirate Bay unrealistic, a binding valuation promise.

Definitely false population, which will now just turn on liquidity path antitrust violations.

In part in the last year Mega Internet companies don't give out.

Turning to the industrial was a high profile.

Walked away later with the rationale is approved.

Hong Kong and the phone trouble a good showcase for that reference.

Inkjet industry must be more than one model or.

The more than one company does it can be successful.

Although forward start to only one wage auto subsides.

Great. Good evening, so valuable taking good care of the consumers.

We believe in the value of Charlotte successful experiences and infrastructure to the industry leading power.

Industrial efficiency.

Good evening Saverio for protecting the interests of the service providers paying commission in time.

And to work with.

The central cookie or the furnace wave.

We believe in the value of hundreds of thousands access service provider, who has been serving the community for many years and establish at this unique moment in soft home services and <unk>.

Weighted it means a very over time.

Just as to what the warehouse enjoying not perfectly.

Well where are we.

Last but not all of it.

If paypal does do decide to move to the offline transaction.

Especially under the current marketing moment.

We believe that will have their licensed flood function market and the players who truly understood the system industrial bakery.

And the fourth are central plan.

No.

Need to source new although.

While I cannot comment over a.

Multi player it's a decision.

The behavior, but I would like to see the key and the high quality service provider.

Represents the most valuable assets of the industry during.

During the period of downturn.

<unk> four may support the retention of our key on the high quality service provider, so our compensation and benefits system.

Tim culture and organization capability on the business strategy to you about over here.

Meanwhile, because they send commission Mccann is the network effect, although each agent to have much more opportunities to participate in any transaction or the secured most of the volume comps and so on the other platform.

Hudson, enabling collaboration and ensure success.

As a result.

So overall show over radio agent at the percentage of store closure on the platform are significantly lower than the industry average.

More rigid it needs a downturn.

The ability to outperform when the market recovers.

Martin just in the adult runs.

The industry production capability and the shrinking of the performance of the store on paper performance also have some impact in.

In South Dakota.

Number one stop below the minimum sustainable level of chill over the so called the bright line the annual distributable profit committed.

Onto our platform neutral right and as a percentage of store about such level decreased from 37 in Q2 to 33, 7% in Q3.

So we're doing none so overall turnover rate of the industry, but we can be matched healthy priced industries, Inc.

It was a down turn cycle.

The trends of huddling together to keep warm industries. The more evidence we noticed that it's a coding.

<unk> is a marquee promoter most all of the agents who were reluctant to join platform. Finally joins a bigger pie for the number of brands that Tonight to pay could increase to 300 and so the quarter.

And also the percentage of newly IGT store from Sonoma sells new home sales channel increased greatly from 22% in second quarter to 29% in third quarter.

As a percentage over store closed due to the poor regimens pool I. Appreciate you can pick up only one 7% compared in Q3 compared to a one 1% second quarter, indicating no largest school store closure.

Most of the third party store owners choose to stay with platform in Dunkin' cycle and to operate the conservatively, but its missing English and the personnel the sunk by March store and as a percentage of stone works on the platform increased from 0.82nd quarter to $1 14 this quarter.

The quarter over a number of clients store and the agents.

For.

All told we're rate was eight 8% compared with 8% in first quarter.

Radio for the NCI in Beijing, Shanghai remains stable.

While it's a <unk> ratio for now.

<unk> increased by 1% quarter over quarter over quarter, then remained flat compared to last Q3.

So average charter rate in the industries of 15% on normal days under work it dwarfs in downturn cycle.

So tell where original agent unpatriotic a few consists considerably lower.

Average.

So based on our judgment of the market.

Industry.

Production.

So.

Based on our judgment of the markets. The industrial production capability will continue to shrink and it's back to the.

The tone oral agent will be Boston markets.

Sure.

First quarter opportunity to do too.

Consequently, we would like to say to tell overall putting performance.

Store in Asia increased significantly in line with the market trends, but the outperformance of market condition. Okay. Thank you John.

Thank you.

Thank you.

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 further questions. Please feel free to contact vacancy in western nations team through the contact information provided on our website. This concludes today's call and we look forward to speaking with you again next quarter. Thank you and goodbye.

Yes.

Scott Thank you.

Ladies and gentlemen that does conclude our conference for today. Thank you all for participating you may now all disconnect.