Q4 2024 KE Holdings Inc Earnings Call
Unknown Executive, Timothy Zhao, Thomas Chong, Xiaodan Zhang
Siting Li, Yongdong Peng, Tao Xu
Speaker Change: Please go ahead sitting.
Speaker Change: Thank you operator, good evening and good morning, everyone. Welcome to <unk> Holdings, Inc, or they could fourth quarter and fiscal year 2024 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 investors thought K dot com.
Speaker Change: On today's call we have Mr. Filippo our co founder Chairman and Chief Executive Officer, and Mr. Hao, Chief Executive Director and Chief Financial Officer, Mr. Paul will provide an overview of our strategies and business development and Mr. Hu will provide additional details on the company.
Speaker Change: These financial results before we continue I refer you to our Safe Harbor statement in our earnings press release, which applies to this call as we will make forward looking statements. Please also note that because earnings press release and these conference call include discussions of unaudited GAAP financial information as well as unloved.
Speaker Change: non-GAAP financial measure we.
Speaker Change: 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 no you shouldn't during this conference call are in RMB.
Speaker Change: And statistical and other information relating to the industry in which the company is engaged to be lessened indias coal has been obtained from various publicly available official or unofficial sources.
Speaker Change: Neither the company nor any of his representative has independently verified such data, which may involve a number of assumptions and limitations and you are cautioned not to give away too much information and at Bethany.
Speaker Change: But today's call management will use English language, but just know that the Chinese translation needs for convenience purposes, only indicators of any discrepancy matched men statements and their original language will prevail with that I will now turn the call over to our chairman and CEO Mr. Sandeep.
Speaker Change: Please go ahead studies.
Qi: Thank you Qi.
Speaker Change: Hello, everyone and thank you for joining paid because fourth quarter and fiscal year 2024 release conference call.
Speaker Change: Over the past year, China's real estate industry has naturally the success, we have seen absolutely ready to changes some changes.
Speaker Change: Hmm.
Speaker Change: In the past three years, the decision making process for buying a home is relatively simple.
Speaker Change: And then Ruth.
Ruth: Are we making the wrong decisions alone.
Ruth: The main concerns for buyers, yes Pete.
Ruth: The home become more valuable.
Ruth: She was simple.
Ruth: So julien.
Speaker Change: Is it kind of a market brokerage companies globally group is getting.
Speaker Change: Because the larger the networks the easier it was to access information connect buyers and sellers and close close deals buyer.
Speaker Change: Buyers get into worry much about who they are.
Speaker Change: We're buying long getting the whole yes.
Speaker Change: That's what matters.
Speaker Change: But now that home prices and longer.
Speaker Change: Anyway upward.
Speaker Change: Three.
Speaker Change: There is more uncertainty in customer decision, making.
Speaker Change: And of course, we're making the wrong decision are much higher.
Speaker Change: Because of this virus needs haven't changed.
Speaker Change: First they want to minimize the risks inspiring a home and seek greater certainty.
Speaker Change: What you're seeing decisions second.
Speaker Change: All the times, leaving us well.
Speaker Change: Object.
Speaker Change: And the city, that's part of it too.
Speaker Change: Gotcha, and then measure.
Speaker Change: Airway is looking for the best possible solution.
Speaker Change: Our job first and foremost is to build the capability to really reduce customer decision making.
Speaker Change: And then.
Speaker Change: Find the best option.
Speaker Change: This is also how we see.
Speaker Change: We see AI tech knowledge.
Speaker Change: In terms of.
Speaker Change: These potential and how we apply it.
Speaker Change: What does the AI Oh I'm a truce on the goal is to help customers make the base decisions.
Speaker Change: Mmhmm to address barriers lives challengers suite bedroom living solutions.
Second from a service provider standpoint, a lot of office buildings and knowledge know how to do that in the past no.
Speaker Change: No longer apply.
Speaker Change: Consumers are asking more.
More questions and Dr concerns are more complex.
Speaker Change: You'll also hear more about who they are buying to Hollywood knowledgeable they are underway.
Speaker Change: Whether or not they are reliable industrial professionals.
Speaker Change: So, let's it providers must be able to address these issues for the economy versus.
Speaker Change: The old a push or merely pushing.
Speaker Change: She leaves us to sell a home.
Speaker Change: He is no longer viable.
Speaker Change: Oh, well assessments on the industry events customers you'd become more narrative about.
Speaker Change: Do you walk these top tier agents will increase the in place low performing ones.
Speaker Change: And tech knowledge will give the best services providers.
Speaker Change: Even greater age accelerating industry changes.
Speaker Change: These resources will be shot the market faster than ever pop tier services providers.
Speaker Change: The resource I'm glad again premium.
Speaker Change: Increased efficiency gains.
Speaker Change: At the same time, the industry, where you invest more in those service providers to them.
Speaker Change: Our skus.
Speaker Change: The future is it partly rely on pumps dependency experiences.
Speaker Change: Those potential of the industry lives in a new power did you.
Speaker Change: Enhancing service quality and empowering top performing agents.
Speaker Change: This presents both an opportunity and a need.
Speaker Change: Demand for the Samsung <unk>.
Speaker Change: To more effectively support citizen programmers and installed in years.
Speaker Change: The efficiency.
Speaker Change: Over the past few years, we have achieved scale and efforts to improve efficiency.
Speaker Change: Hence we are strongly on our science scientific managements to push we set clear goals.
Speaker Change: Got it don't break them down into precise steps and then focus on key factors that are driving results.
Speaker Change: We have embedded this into our system and use digital tools to streamline management and boost efficiency.
Speaker Change: No we need to bring these capabilities to starting there in our new businesses.
Speaker Change: On the other hand, while the industry did utilization do you have a long way to go breakthroughs in AI technology I will open on.
Speaker Change: Despite exciting possibilities, we now see future potential to re shop services, providing its capabilities. It has the cosmetic business and significantly improve our.
Speaker Change: I won't pin farmers pressure no efficiency.
Speaker Change: In 2024, we launched actually a platform growth strategy.
Speaker Change: As a result, the number of ultra stores grew by 80 points, 3% year over year, reaching nearly <unk>.
Speaker Change: 49.
Speaker Change: Solid.
Speaker Change: 700.
Speaker Change: Our agent Count rose to 445000, increasing.
Speaker Change: Four 1% year over year, despite major fluctuations in the real estate market the number of stores and the agents connected to our platform both reached record record highs in 2024.
Speaker Change: Allowing us to reach more customers than ever before.
Stephen: Stephen your 468.6 million customers that it means.
Speaker Change: Average.
Speaker Change: We are one of the year it took some nasty when thousands of families across the country.
Then too.
Speaker Change: Can you imagine a property with all of that.
Speaker Change: Having Chinese people to leave bamboo is a mission that are truly matters for.
For the full year, our <unk> totaled RMB three points three five treating total revenue hit a record high of RMB $93 5 billion growing over 20% year over year.
Speaker Change: Notably our Ziggy.
Speaker Change: The home transactions businesses.
Speaker Change: <unk> reached an all time home is GTD rising nearly 11% year over year to RMB two appointed to refine treaty.
Speaker Change: Meanwhile, despite market adjustments.
Speaker Change: Thanks.
Speaker Change: Thanks, Bye strong Pos.
Speaker Change: From developers and customers, our new home transaction business generated RMB 917.
Speaker Change: 17 billing E G television for the year down just 3.3% year over year.
Speaker Change: While total revenue grew by 10% year over year.
Speaker Change: One body three we've strategy has achieved in trillium success.
Speaker Change: For home renovation and the finishing business we continue to pursue skilled crews in 2024.
Speaker Change: While he's tabulation, a positive cycle will scale quality and efficiency in Beijing.
Speaker Change: We completed renovation services for nearly 60000 homes across more than 40 cities nationwide in 2020 fuel connect you with over 70000 home renovation workers.
Speaker Change: Saturday designers and file founded and project managers, a home renovation and furnishing business achieved total revenue were RMB 48.
Speaker Change: <unk> 8 billion for the year.
Speaker Change: Year over year increase of 36%.
Speaker Change: By enhancing supply chain fulfillment manganese and E P.
Speaker Change: Moving our systems.
Speaker Change: There is a patch capabilities in Q4, we successfully reduced the home renovation construction timeline with 10 days compared with last year.
Speaker Change: Additionally, <unk> has in home <unk> house after sales men tenants capabilities enable us to continuously elevate cosmetic appearance.
Speaker Change: In our home rental services, the number of rental units under management so past.
Speaker Change: 430000 in 2024 hour revenue sure.
Speaker Change: And say, 5% year over year to RMB 43.
Speaker Change: Three meeting in.
Speaker Change: In terms of quality and efficiency, we have improved when you billions of property owners and tenants Bayou shopping roles and responsibilities.
Speaker Change: Through refine operations.
Speaker Change: We saw fun.
Speaker Change: Significant improvements across the various various efficiency metrics, including the efficiency on the second time, the rentals and the average number of rental units imagine manager per property manager we.
Speaker Change: Regarding our <unk> business, we acquire land in several cities last year, we did not intend to become developers and the deal many of them all of this ourselves our business logic align closely with our insights.
Speaker Change: Industry by exploring this business and to address the high decision, making risks faced by both developers and customers during the home buying process, while meeting customer demand for new well.
Speaker Change: We're committed to promoting the development of major high quality films with the China residential industry, while making great mitigating critical level risks for developers and other participants in the industry you see required us to build capabilities in areas such as.
Speaker Change: Precise customer demand insights deepen our user engagement and data driven decision making.
Speaker Change: For instance.
Speaker Change: Agreed agreed braking category with juice and nice homes thinking customers.
Speaker Change: Her work at uppers with talking to the customer demand, enabling them to turn over their offerings.
Speaker Change: Accordingly.
Speaker Change: I see too much customization, we can also sense limits on having a sound investment and gradually shift our business model towards more ideal platform based.
Speaker Change: S. S model in November last year, we successfully launched our preventive solution services project E. G. I'm. The first Karen K case in which we generated service revenue.
Speaker Change: Presented solutions Genesys and.
Speaker Change: In 2024, we have also made substantial efforts improving our relationships with the various partners throughout the entire ecosystems.
Speaker Change: I believe these efforts will lay a solid foundation for our long term success.
Speaker Change: Looking at cash we need to be more technology, driven and more human centric.
Speaker Change: On the technology side.
Speaker Change: The advancement of technologies, particularly AI is set to transform many aspects of work study and daily life, including reshaping relationships with others altering organizational structures and she'll be highly philosophies all of which.
Speaker Change: On the gold transformations.
Speaker Change: As the interactions between people become more increasingly valuable that you sense a genuine services.
Speaker Change: In bothering the.
Speaker Change: He says Oh, I understand you will become even more crucial.
Speaker Change: Addressing the industry cognizant pinpoints.
Speaker Change: And then shifts shifting needs of customers 12 years at their show services.
Speaker Change: Hudson decision, making uncertainty and increased ease penetrations for service providers capabilities, we firmly believe that advancements in AI and other technologies really essentially had honest cuckolded challengers.
Speaker Change: With these tools, we will be better equipped to understand customers' personalized.
Speaker Change: Nice broaden their knowledge and information available to individuals and to comprehensively enhance our service quality.
Speaker Change: You apply AI.
Speaker Change: Sydney across both external and internal operations.
Speaker Change: Voting services providers.
Speaker Change: Using high quality interactions does that push.
Speaker Change: To deliver genuine sensors, while also upgrading the interface through which we provide such services.
Speaker Change: On the human cute humanity side, we recognize that we operated with a service industry, whether value or empathy cosmic here.
Speaker Change: Our commitment to service is Paramount.
Speaker Change: Why is technology facilitates the values.
Speaker Change: It is essential.
Speaker Change: Service providers actually bodies, that's based on several lines savvy improvements and establish that.
Speaker Change: Ah providing.
Speaker Change: Because of temporary support to frontline agents, who in turn have honestly in the care of customers. We can affirm on the south west.
Dan Hughes: Through customer sensitive section and the recommendation recommendation of Dan Hughes.
Speaker Change: The virtuous cycle.
Speaker Change: Translate into parties that are not only.
Speaker Change: That's cool, but also created this.
Speaker Change: Humanity quantity, we will offer a new dimension to the industry evolution and development, making it possible for you.
Speaker Change: Right.
Speaker Change: Consumer appeal is 10 times better increase citizen providers efficiency, 10, Florida and enhance the value created.
Speaker Change: 10 times greater.
Speaker Change: Yes, I would like to turn the call. Almost one example, she talked to review, our fourth quarter and fiscal year 'twenty 'twenty four financials.
Speaker Change: Well, thank you Tony and thank you all everybody for generous equal weight that beach Oliver to your fulfillment I'd like to briefly touch on some update for the housing market in parts of Europe.
Speaker Change: 810 GB for all sorts of annual transaction voting after new home sales market was estimated to have declined by around 18%.
Speaker Change: The 20th of growth the market witnessed.
Speaker Change: It is a recovery in the first culture pulling the stimulus package policies in September.
Speaker Change: According to National Bureau of statistics, you'll home, so those by nearly 30% quarter over quarter.
Speaker Change: I know chip a full percent younger girls inputs culture.
Speaker Change: Meanwhile, we are sitting at home demonstrate some pilot countries, which the propulsion in total just the monkey to trim production continues to rise.
Speaker Change: Thanks to a readily available feature that's what but I suppose the pie on the price adjustment some opinions at ACOG.
Speaker Change: According to Baker at least as it used to get huge.
Speaker Change: Propulsion hopefully to home to TV in total marquee TV, that's the right thing for them to put give us that you could get to this 3% to 46% into the JV.
Speaker Change: Although the increase of nearly 50% year over year.
Speaker Change: To look at history, and the number of transaction in its new home sales market, what's a girl by more than 10% into the ticket.
Speaker Change: Although the national concession price existing home beauty club young yet into the painful.
Prices rose by only 2% sequentially plus quota.
Speaker Change: They're taking a change in trend.
Speaker Change: With the support of the policy and not just stability.
Speaker Change: Market.
Mark: Well Mark with your mum has become stronger.
Mark: Forethought homes, so average idea under the proposal of the homes with Threep I read about both have equally year on year.
Mark: So I'll kick it into monkeys, and the bigger parts of its long term growth driver.
Mark: Enable to us to continue making that puts to escape utility poles.
Mark: Revenue reached RMB, three 5 billion.
Mark: It can take one 2% year over year.
Mark: Revenue from new home construction services, both grow year over year.
Mark: Sucking all the home countries history solid fundamentals.
Mark: Home renovation on the pretty cheap home rental services you look at other services.
Mark: It's a new growth engine, which combined run rate by 64, 2% year over year contributing 53, 8% of total revenue up 9.1 percentage point bump to natural history.
Mark: In particular.
Revenue from the demolition and the furniture business was RMB 14, 8 billion growing by 36, 1% year over year.
Mark: And the revenue from other home rental services reached RMB 14 points to rebid Hunter.
Mark: Hungry, 35% year over year.
Mark: While ticket breadth and scale. We also continue to increase all the investment you're proving to service quality.
Speaker Change: Gotcha, and then just touching on the developing advanced technologies.
Speaker Change: Lifted I thought well they have a solid foundation blah blah blah cheeky vitamins.
Speaker Change: Continuing to yoga returns going forward.
Speaker Change: You can literally cool locals market was 24, 6%.
Speaker Change: All of our operating expense ratio was 74, 7%.
The operating model seven 4% for the year.
Speaker Change: Adjusted net margin reached seven 7%, bringing our full year 19 call shoot RMB 721 billion.
Speaker Change: Earnings coffee, you protest well, our net operating cash inflow each educate for those RMB nine 4 billion one sweetheart, all pumped up.
Speaker Change: 19 comp for the year.
Speaker Change: So feel about three days year over year to 42 days.
Speaker Change: Turning to our financial performance in Q4.
Speaker Change: T D.
Speaker Change: <unk> hundred 53 8 billion.
Speaker Change: King of Yoga increase of 55, 5%.
Speaker Change: That's revenue reached RMB, one 1 billion up 54, 1% year over year.
Speaker Change: Martin.
Speaker Change: And by two four percentage points year over year to 23%.
Speaker Change: That's that income was RMB 578 million showing a year over year decrease up to 13, 8%.
Speaker Change: That's got nothing call reached RMB 134 billion, reflecting a year over year decrease opportunity of one 6%.
Speaker Change: Looking at all of our health and protection services.
Speaker Change: Revenue from in home transactions reached RMB eight 9 billion in Q4.
Speaker Change: What is 11, 5% year over year, and 43, 5% quarter over quarter.
Speaker Change: G. T V was RMB 744, 8 billion rising by 59% year over year, and 55, 9% Qdoba cogent.
Speaker Change: It could be cool the Pos revenue year over year, largely I did reach out to slightly better services for the home owners.
Speaker Change: Can be outperformed revenue sequentially, mainly due to the start to change.
Speaker Change: Turkey revenue shelf, the rental pokey surveys declined due to the seasonality.
Speaker Change: The contribution margin from both these stay at home construction services for the 14th place focusing in Q4.
Speaker Change: Centene, but he cloud full 0.1 percentage point year over year.
Speaker Change: Due to the increase of labor costs related to our athletes agents welfare and a decline of 0.6 percentage points quarter over culture.
Speaker Change: Resulting from the strategic initiatives equally agents and send to you and the variable costs.
Speaker Change: In terms of the new home construction services, which significantly outperformed the market across various metrics.
Speaker Change: He showed that the cells from the top hundred developers well go out to the stable year over year in the UK.
Speaker Change: It's about around the 60% sequentially in Q4.
Speaker Change: In comparison, our new home to T V reached RMB 350.
Speaker Change: $55 3 billion up 49, 3% year over year under 56, 2% quarter over quarter consistently understood easily outperforming so that's true.
This was mainly due to the deepening our collaboration with developers as well as all the robust funding cheat operational capability.
Speaker Change: Revenue from New home construction was RMB 13, 1 billion coupons.
By 72, 7% year over year under 692% from the previous quarter.
Speaker Change: Revenue outperformed CTV, both year over year, unless you're crucially.
Speaker Change: Once again, demonstrating all the store studied in my case it should have a good he's in new home transactions.
Speaker Change: Contribution margin from the new home construction services grew by zero point.
Speaker Change: Eight percentage points year over year to two to five 6%.
Speaker Change: Actually we're talking farms, a strategic increase in variable commissions, we placed greater emphasis on building a hub harmonious ecosystem.
Speaker Change: Every batch of rewards to the agents.
Speaker Change: Sequentially, the new home contribution margin go up by two nine percentage points.
Speaker Change: Leverage weekend from the revenue grows.
Speaker Change: In Q4, I believe you both of those contribute 58% of our new home sales revenue.
Speaker Change: Revenue from the home renovation or the furniture.
Speaker Change: Home rental services and merchant services grow by eight 7% year over year in Q4, a monkey King two nine Threep yourself off the total run.
Speaker Change: The contribution profit to obtain a clunky to full turnkey full plus 3% with all of the total gross puppies.
Speaker Change: Our home renovations on the furniture business maintained a steady growth in careful control of yourself through each RMB five 3 billion up 34%, that's a year over year.
Speaker Change: Revenue reached RMB four 1 billion.
Speaker Change: Raising 12, 8% year over year.
Overcome trucks yourselves to go straight outpaced our revenue growth rate driven by a sharp increase in country itself with the gross market recovered in Q4.
Speaker Change: Revenue recognition back to.
Speaker Change: Contribution margin for the home renovation a bunch of business reached at 29, 8% up one nine percentage points year over year.
Speaker Change: Gross margin improvement.
Speaker Change: Nature in the home furnishing great shows.
Speaker Change: Crucially the contribution market puts a homerun Alicia in the furniture business declined one 5%.
Speaker Change: Due to the decline is the proportion of high margin homerun admission revenues.
Speaker Change: I'll touch yourself a function to a healthy 20 June green shows which are not included in you know the home renovation package reached RMB, one 7 billion and truthful.
Speaker Change: Approximately 61, 7% of the total contract yourselves an improvement of four two percentage points from the same period opportunity to the street.
Speaker Change: Our home rental services business continued to grow at an accelerated pace in Q4.
Speaker Change: <unk> revenue reached RMB four 6 billion.
Speaker Change: Hungry.
Speaker Change: Eight 7% year over year.
Speaker Change: Speaking from the Rocky coast since a number with a bunch of unions on the maintenance.
Speaker Change: Until Q4, the number of the eventual unions on dimensioning exceeded 430000 cars.
Speaker Change: With over 200000 gets imperial's 22 suites.
Speaker Change: Traditional market for home rental services.
Speaker Change: The drug AAA stable at a four 6% compared with the previous quarter.
Speaker Change: In Q4, our revenue from emerging out of other services decreased by 41.1% year over year to 19, 9% to put up a culture to RMB 463.
Speaker Change: 439 million.
Speaker Change: No.
Speaker Change: That's a long shot at cost and expenses in Q4.
Speaker Change: Our Stockholm reached RMB 786 million.
Speaker Change: Generally stable year over year, and growing by 11, 8% quarter over quarter.
Speaker Change: Quarter over quarter increase for the many features and increased use of costs associated with the store resolution at the Messiness.
Speaker Change: That's a cost one 747, beating up statistics, 3% year over year under 48, 8% quarter over quarter.
Speaker Change: Primarily driven by the increase in taxes, so trumps financial services too.
Until quite to losses.
Speaker Change: Cost pockets those spikes up to nine 4% year over year to RMB seven 2 billion.
Speaker Change: Gross margin was 23% down two four percentage point year over year.
Speaker Change: The primary reason for the trial, what's the yoga secret in contribution margins from our merchant and author services under this new home construction services.
Speaker Change: This was partially offset by stronger leverage from progressive is stable with store costs and increased total run.
Speaker Change: Gross margin climbed by 0.3 percentage point sequentially in Q4.
Speaker Change: You create contiguous Martin bumps in new home construction for this.
Speaker Change: In Q4, Okay operating expenses totaled RMB, six 2 billion up 15, 8% year over year on the 39, 7% sequentially.
Speaker Change: G&A expenses one distributing.
Speaker Change: Crazy 11, 8% year over year due to the increase of the personal expenses.
Speaker Change: G&A expense by 55.8% cultural culture, mainly due to the Hypersound expenses and increased bad debt provision.
Speaker Change: Sales in the Monkey expenses increased by 12, 7% year over year to RMB, two 3 billion, that's increasing sell some rockies boosted the home renovation and the furniture business.
Speaker Change: Wholesale quota sell some muffins and physical sites into 1.2%, mainly due to the growth in monkeys since it's a full housing transaction services.
Speaker Change: You could see the personnel expenses.
Speaker Change: Our R&D expenses were RMB 759 million up such a eight 4% year over year under two to eight 9% sequentially, primarily attributable to the increase in R&D, Paul Hudson The services and the increased investments in some time ago, we said projects.
Speaker Change: In terms of the profitability.
Speaker Change: Got Ya Com pumped all pushing totaled RMB 1 billion in Q4, turning positive from a loss in the same period of last year.
Speaker Change: Increasing of such a nine 1% sequentially.
Speaker Change: Operating margin was three 2% increasing four one percentage points from Q2 to two 300 remaining flat sequentially.
non-GAAP income from operations totaled RMB, one play beauty growing country on the 5.1 per cent from the same period last year.
Speaker Change: The increasing eight 7% quarter over quarter.
Speaker Change: Operating margin reached five 6% up one four percentage points from Q4, two new to industry. This was a decrease footballer operating expenses year over year undertone, it'll 0.4 percentage points from Q3, 22 diesel which beautiful choose the increase of operating expenses all told them.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Income totaled RMB 578 million in Q4, decreasing so it can put 8% year over year on a 55% cultural Dakota.
Speaker Change: No got that E. Com was RMB, one 3 billion down 21, 6% year over year, and a 24, 6% quarter over quarter.
Speaker Change: Moving to our cash flow and the balance sheet.
Speaker Change: Operating cash inflow was RMB five 2 billion.
Speaker Change: The new home Castle was at 54 days in Q4.
Speaker Change: Which is a testament to Charles if I can risk measurement.
Speaker Change: On top of approximately 132 million allocated to the share repurchase during Q4.
Speaker Change: Total cash liquidity remain at a high level of RMB, $78 7 billion, which as cruise customers you posed to the panel.
Speaker Change: With all of our growth appetite so we.
Speaker Change: We continue to reward our shareholders, who have grown with us so it's an active share buyback.
Speaker Change: Capital operating efficiency.
Speaker Change: So the benefits of all the key vitamins with investors.
Speaker Change: It's really painful we repurchased around 1000 716 million worth of shares.
Speaker Change: Richard comfortable at one to three 9% of the company's total shell Sunday and opportunity to the street.
Speaker Change: We have consistently delivered on our plumbing to reward shareholders.
Speaker Change: Since the launch of our share repurchase program in the September two literally true.
Speaker Change: Have a good purchase roughly U S dollar $1 63 billion in shares and over to you to default.
Speaker Change: For about eight 6% of total company shares all spending before the program began.
Speaker Change: Our commitment to shareholder return, we were pleased to announce that our board upon final cash dividends for children to be full of U S. Dollar General plus 12 poor ultimate sure Olga thorough zero point 30 states play gas too often to the shareholders.
Speaker Change: Hold yourself of record as of April nine 225.
Speaker Change: So total expected given the payment will be approximately.
Speaker Change: Zero point full bidding and well be faulted for our surplus cash on our balance sheet.
Speaker Change: Our total shareholder returns for two different people well typically.
Speaker Change: Our next call.
Speaker Change: Essentially what Rhonda Hunter, just sucking ascent will fall from 19 come off the year.
Speaker Change: We intend to provide shareholders with a comprehensive returns you know longtime plaid Q on a stable manner aiming to shut the value we create gathered resolve a longtime shareholders.
Speaker Change: That's the way it was along for search and digitally file our financial strategy will accelerate the value creation. So we used to read your parakeets first ensure we're making factors cutthroat kitchen to direct investment to 133.
Speaker Change: Such initiatives.
Speaker Change: Technology advancement on the droughts are terminable growth.
Speaker Change: Second by Turkey, plus quality to drive a higher initial Nike inefficiency.
Speaker Change: He'd ever consistent understood symbols returns to all of us shareholders.
Speaker Change: So that's how the growth translate into tangible value to those who invest in our vision.
Speaker Change: This is Holly energy durability.
Speaker Change: We're making sure the money we tend to get to the future. So it's just a framework.
Speaker Change: Simultaneously three nutrition Andrews, Hudson, Kentucky, a months and compound value to all of our shareholders.
Speaker Change: This concludes my prepared remarks for today, operator, we're ready to take questions. Thank you.
Thank you.
Speaker Change: If you wish to ask a question. Please press star one on your telephone and wait for your name to P&L.
Speaker Change: If you wish to cancel your request please press star two.
Speaker Change: If you're on a speakerphone please pick up the handset to ask you a question.
Speaker Change: As a reminder, we only accept questions on the English language line.
Speaker Change: For the benefit of all participants on today's call. Please limit yourself to one question and if you have additional questions. He can reenter the queue.
Speaker Change: If you're going to ask the question in Chinese please follow with an English translation.
Josh: Your first question comes from Josh <unk> with Nomura. Please go ahead.
Speaker Change: Many thanks management for taking my question. My question was about inside their some of the technology so that they could.
Stanley: So just know Stanley has mentioned that they crave able to empower is offline stores and increase operational efficiency through technology tools such.
Such as AI property consultant property sourcing assistance et cetera.
Speaker Change: Can I ask is the management considering further.
Introducing all collaborating with advanced AI models, such as steep six to enhance and optimize the business operations of the company like for example, how can the AIP leveraged across the different business areas, such as south from a renovation property recommendations and customers.
Speaker Change: And customer service so for there.
Speaker Change: Interesting user experiences. Thank you.
Speaker Change: Okay. Thank.
Speaker Change: A question for Paul I might impact on the industry by enhancing the efficiency and the user experience. We can think about this from a sheep studies.
Speaker Change: Fortunately as a society and the second is supply site and that.
Speaker Change: Sort of is a painful and sign some consumers are saying about it by in the city was really saying has become more challenging.
Speaker Change: <unk> clients due to increased uncertainty and risk in your decision, making as a result client need.
Speaker Change: Access to data knowledge, knowhow and knowledge and intelligence they I cant answer.
Speaker Change: Effectively address this issue.
Speaker Change: Customer phase, leading us to conclude that I kind of significantly optimizing cost me billings and greatly improve the quality of service on the demand something and secondly from the supply side to study, we believe that it will be.
Speaker Change: Hence the capabilities of our Skus agents and accelerated the industry.
Speaker Change: A high quantity of supply.
Speaker Change: So all of a sudden one.
Speaker Change: Sometimes pass along to Spanish AI provide for PE firms with more opportunity to in fact efficiency changers through innovation, we often have a signed document.
Elements of the industrial quality scale and efficiency.
Speaker Change: Hopefully I'm gonna strategy strategies.
Speaker Change: So authentic property did see billings housing division Oasis standout issue on our platform model, how resolve quantity unusuals on the services side. We also tackle changes almost scalability on the supply side, so perhaps from a platform business model.
Speaker Change: Now one of the industry's most significant changes remain sufficiently.
Speaker Change: Since the issues I'm not resolved.
Speaker Change: Profitability will also be a challenging the emergency.
Speaker Change: In D C. As a production center integrated into the vanishing potentially having a stucco quality and scale problems. While also addressing efficiency challengers. This can create new opportunities for the entire platform increase each of them. So it gives its conclusions we place great importance on the.
Speaker Change: Cut abilities and the potential young and we hardly you showed on Sirius XM.
Speaker Change: Formations, we have integrated our oldest financial industry data and advance upon there's more modeling to keep all of our not language model charm and I already mentioned mono Dream home. We are iterating on this models and then explaining how long ago did you have.
Speaker Change: Capabilities to support a variety of all kinds.
Speaker Change: Vacations here are a few examples of the application can show for you all for the customers. We are currently combating gray box testing for who they are.
Speaker Change: Powerful I'm thinking system built on deep sea, our win I'm, a big fan data and our own.
Speaker Change: It's Ross <unk>.
Speaker Change: So to open floor.
Speaker Change: In March this 24 7 million.
Speaker Change: Homes thinking yeah assistant combines deep industry would get it.
Speaker Change: I'm surprised with Rhapsody operate understanding all of them.
Speaker Change: User demand and the ability to customize real time solutions. You know, we don't have a user to overcome the usual chargers or Hyatt earliest stage musician, making costs in homes searching while also having the I can clarify client needs and improve our glass media efficiency and then we will see we are.
Speaker Change: Some post scenario so the combination of the highly precise and amazing.
Amazing of the new generation.
Pufahl Campbell: Uh-huh Pufahl Campbell and that didn't seek driven intelligence model, we can leverage a more refined tobacco understanding capabilities and you Havent seen intelligence and assessment ability for houses and improve the user experience will be our homes mention on our home court.
Pufahl Campbell: And for the business partners. We are building a comprehensive solutions for example, if a property we have converted to the green bar people passing for young and system.
Pufahl Campbell: Yeah, probably latter property lifting maintenance and system in several cities. We have also launched yeah, probably twos and marketing our system and the strong pain training can cause enhance agents' capabilities incline acquisition genetic disease identification and of course nice to put.
Pufahl Campbell: Nice solutions for home renovation and information businesses, we how imprint implements chenille.
Pufahl Campbell: I design tools and they can automatically generate design plans for marketing vehicles, and we have our self developed <unk>.
Pufahl Campbell: System with AI preventative delivery management, we also have our cloud base and kind of use construction system, but it can't carry on like I I can make a good consumption lending monitoring yeah.
Pufahl Campbell: <unk> inspection and acceptance tools, creating a almost 40 AI embedding digital Luke.
Pufahl Campbell: Additional efficiency, we have to be deployed.
Pufahl Campbell: Deployed five digital AI agents, including same function and achieving efficiency breakthroughs in areas such as business.
Speaker Change: I know it says and the operational strategies support.
Speaker Change: Let me also share some results of this are pretty cushions.
One.
Speaker Change: The first our AI properties, social management manager already automatically handle 60% of rental property owner and management accounts doing their testing and secondly, digital entrants like some things.
Speaker Change: Hum.
Speaker Change: And then analyze say 5% of the on time and in nearly seven years 20 of con for a rational strategy teams.
Speaker Change: Sure Yeah, preventing tooth also sits.
Speaker Change: Already 30% of our R&D cost.
Speaker Change: So if anything it fine we plan to increase our investment to further strengthen the foundational capabilities of mono data solutions, while accelerating its Iraqi war vacations from research and development. This guidance, we have met our various AI assistance mother and it further promote AI integration and they are now.
Speaker Change: Innovation capabilities throughout the organization finally, AI facilitates more efficient flow of information and knowledge, which will speed up the N of older model that's rely on scale to.
Speaker Change: Florida information gaps, we must also break our reliance on skin on the honest onto him yeah, it's humans, making it possible for us to enter a new era, we are far from where we need to be liberty apartments on the vintages 90 years.
Speaker Change: You mean accumulated industry data assets and it tends to be on vacation scenarios in the distance.
Speaker Change: Validation environments, and then earliest state strategic planning in the industry in the future we will continually as pen ai's rule in deeply reshaping the entire essential services process. We believe this is a big Christmas dumps billions and I didn't catch all of it.
Speaker Change: Dan for English speaking to where you're from infrastructure and are crucial to creating long term value for the industry, it's mileage or something.
Speaker Change: Thank you the.
Speaker Change: Your next question comes from Timothy Zhao with Goldman Sachs. Please go ahead.
Speaker Change: Oh gosh, yeah, so just hold it here right now.
Speaker Change: When I went to you should go out and do you find your times Chicago, you've got some well known macondo.
Speaker Change: Women are shut off at times I found that I actually enjoy shopping and it's not something that you can't I should help fulfill that you'd go to Cushing.
Speaker Change: Annualized attrition should somebody answer, though not women section type of what type of R. R.
Speaker Change: Anytime I forgot that part I want to touch it.
We couldn't get in Oklahoma.
Speaker Change: I find myself I'm thinking back to them for taking my question. My question is regarding the property market outlook as we are.
Speaker Change: <unk> seen a pretty strong rebound half the property market since last September I'm, just wondering if management can share any insights on the recovery system, but that he is a fee.
Speaker Change: Year to date, and how we match them and team are I think about the market outlook for this year and are we going to turn more optimistic about the market. Thank you.
Speaker Change: I think I can see.
Speaker Change: And therefore, it's lucky so many changes.
Speaker Change: Let me summarize.
Speaker Change: Sensitive policies seminars.
Speaker Change: New positive signals in coupon accelerated structural change.
Speaker Change: That's still got to temper the monkey tails on policy problems.
Speaker Change: Before I see I've seen a stronger than expected Pos impact.
Speaker Change: Particularly to Central Commons.
Policy pillars.
Speaker Change: September to this takes both stabilized monkey with smoking Ken It's Mike.
Speaker Change: 10 minutes measures before being Joe jobs.
Speaker Change: This policy efforts both market because it is intended to neutral they stay.
Speaker Change: The whole market nationwide, so depressed price for that increase in volume.
Speaker Change: A coffee smedes round of paper versus east acute into liquidity pool. It's a number of these two hometown community in China. Those buyout runs 58% year over year, while total J T V pro by around 2% due to the prospectus.
Speaker Change: Particularly with the release of your posture on September 26, the Transexual recover quickly.
Speaker Change: Q4 is home to keep you all have a pretzel roast around 60% year over year, making a stronger under most of us tend to rebound than ever before.
Speaker Change: So the price stabilize somewhat.
Speaker Change: General Punch with the same December compared to September.
Speaker Change: He is a fourth quarter increase in nearly two years.
Speaker Change: For utility scale for the new home market nationally continuing to face tenders coffee still fit with us.
Speaker Change: National New home sales declined by 18%, while it's a new home pizza deal SAR Sea Hawk hundreds of amperes.
Speaker Change: By 2% to 8% contingency for however.
Speaker Change: However, our real faster bumped into new home to be truthful.
Speaker Change: Ulster monkeys throughout the year.
Speaker Change: Regarding the transaction structure is increasingly dominates but it can hold.
Speaker Change: The propulsion system to keep the nationwide.
Speaker Change: 246% up five percentage points compared to the year opportunities III.
Speaker Change: Notably this percentage is 50% to 50% in pulp 30 P M.
Speaker Change: So certainly top tier cities.
Speaker Change: This was mainly due to the rapid decline.
Speaker Change: Home prices, which made it more attractive to hold the fighters. Meanwhile, readily available existing homes, how would that work in the month of Wingstop to new home.
Speaker Change: Unlucky mountain makes the wrong, something nearly new homes, but the increased demands, Oklahoma fleece, which eats the Lockheed Sacramento buyers. According to paper consumption data to percentage of existing home sales fell with a three bedroom and up by go from 40%.
Speaker Change: You can you can get to 55% of introducing useful.
Speaker Change: The propulsion nearly new homes built with the last two years.
Speaker Change: Jumping from 27% due to the 20% to 43% in 'twenty to 'twenty four.
Speaker Change: Regarding the recent lockout days I'm talking about and see home market first with all of our Python data.
Speaker Change: It's being home market, a sustained momentum with the transaction volume bump you. The most excited after Chinese new year.
Speaker Change: Two specific countries and hometown automotive skilled a full week's fully disciplined festival.
Speaker Change: Such a boring obviously home grows by around 40% year over year.
Speaker Change: Among which the tier one cities grow by 50% lots of care through cities such as Chengdu.
Speaker Change: <unk> also had a robust growth.
Speaker Change: Notably the Vaca transaction volume so Pas So October hot fully into September to get to this part of the stimulus.
Speaker Change: Reaching the highest level since marketing to industry with a market there is a pent up.
Speaker Change: Welcome to the farmer.
Speaker Change: Overall to monkey follow seasonal trends with some momentum starting to moderate in the first week after spring Festival.
Speaker Change: While it did come with some Muslim sustaining a high level.
Regarding so home prices in February it's the whole process slightly decreased by seven 4%.
Speaker Change: Month over month wait to see.
Speaker Change: Between two notable similar so I've lived amongst declining 22 people.
Speaker Change: The purchase was big Chris.
Speaker Change: Such a mill lead times.
Speaker Change: We compiled based on the propulsion of proxy documents on my oldest and price adjustments made by some owners.
Speaker Change: In fact with Banca directly toward the last year.
Speaker Change: After reaching a low point during the spring festival at Husky gradually recovering.
Fourth tier cities show you rescued a hydro sentiment levels on the shingle exceeding 15%.
Speaker Change: New home market color the mountain city Union traditional off season.
Speaker Change: During the four weeks after the holidays Johan subscriptions increased over 10% year over year.
Speaker Change: That's why the new home prices to stabilize sequentially in September.
Speaker Change: Regarding to market all of them to you can you can you file literally Lockheed and this starts with boats and marks the 10 to 25.
Speaker Change: Overview, so pre Brexit so overall market instead of plantation is achieving stability, you're seeing home price.
Speaker Change: Talking to all of our survey.
Speaker Change: Do you have sufficient confidence.
Speaker Change: <unk> classification.
Speaker Change: Bakers obstacle preventing people from purchasing homes.
Speaker Change: Liberty The politician. Okay, you see home price depends on two factors first a balanced disciplined the amount with it I mean with the housing market liquidity.
Speaker Change: <unk> includes a homeowners confidence with less people cutting prices simply due to a separate himself.
Speaker Change: The paper such a an impact that's a leading indicator would be a useful tool industry called <unk>.
Speaker Change: So in terms of opportunity for at least six months with a demonstrated a monkey because synthes onto price stabilization.
Speaker Change: So for the policy refinement, well stimulate homebuyer demand.
Speaker Change: Driving transaction volume recovery.
Speaker Change: You can see case, it's a marquee the world shifting from plus hot for voting to increase transaction with the stable prices.
Speaker Change: Our recent survey shows that proposal buyers planning home purchase of reaching a year.
Speaker Change: Right into a tree is hot.
Speaker Change: This reflects stronger market confidence you shouldnt.
Speaker Change: Well continue to monitor home doing a kicky.
Speaker Change: Such a body like the key indicators.
Speaker Change: That's a lot.
Speaker Change: Stable home prices were also how stabilized the price of new homes, coupled with the policy optimizing new home supply on the Hudson repurchase program.
Speaker Change: Just the wells support to new home sales on an investment economy, helping to restore give us investments.
Speaker Change: And that capability.
Speaker Change: Shifting to stipulate tissue chain, both a criminal commissioned or countercyclical policies in the macro economy and the real estate is expected to result, consumers' confidence and expectations.
Speaker Change: You know neutral snow.
Speaker Change: But you see home market to realize them modality recovery intrinsic to the thought whilst the new home market adjustments may continue due to some capacity of the risks, but it's yoga class B nano.
Speaker Change: Meanwhile, what are your thoughts is supposed to start with that virtuous ease of Hudson transaction into niches by reinforcing.
Speaker Change: Dominance of this new homes.
Speaker Change: In particular locker wretchedly, new secondary new home set of myths buyers home up release will it become top countries.
Speaker Change: The new home market, well accelerated supply side innovation, often upgraded put us to the matter match the evolving demand centric.
John: Thank you John.
Speaker Change: Your next question comes from Griffin Chen with Citi. Please go ahead.
Speaker Change: Uh Huh, what's her heart equal parents with a great sense internally, what's their bandwidth you went so glad you each year with no pickup in high T. D. S. Well My guess went down there. She says she she's done that now concerned actually that's all I have to uphold their kind of taught island some union city down the pipe.
Speaker Change: Oh, Sudan, because at that time.
Speaker Change: That's how he catches a country that's bang on the tons at me now.
Speaker Change: Oh, Yeah, well no cliff are you pulling on the final night incentive attempt on the part that says well now for you all.
Speaker Change: But you kind of saw a I don't know if I'm to highlight.
Speaker Change: They've done that passes how new the deficit.
Speaker Change: Oh, Yeah, I'm going to talk today my question.
Speaker Change: So it's about the agency business the number of agents and so on take or pay form continues to growth. The company has made a lot of thought and the maximum and it seems quite aggressive what kind of growth has to come in the active and the yelp to any painful as such.
Speaker Change: And for the year of 29 to five we'll take a follow the same path for growth overdue. When you consider some other like AI, improving that efficiency as well as having a higher growth. Thank you.
Speaker Change: I'll take a greater intensity for the main focus of the Hudson consumer services, we're promoting growth and optimizing the ecosystem.
Speaker Change: But it's nothing that we're tip the remark holkeri ghost performance, demonstrating our ability to continuously outperformed the market.
Speaker Change: Successful, so house agent I still own a smaller pie.
Speaker Change: Will partially offset the impact of monkey classes cooking.
Speaker Change: Monkey protections.
Speaker Change: If all of our key focus last year wasn't it.
Speaker Change: The sponge into the age of that store network.
Speaker Change: Excuse to target incentive.
Speaker Change: Package pillar, two stopes different source to a truck industry players.
Speaker Change: The opportunity to report the number of active monthly adjustables all of our powerful with Citied what he for thousands.
Speaker Change: Acting knowledge agent reached 361 associates up two 2% and 11% year over year, respectively.
Speaker Change: Not really.
Speaker Change: For the new Bronx joins our platform each with over 100 stores.
Speaker Change: Oracle he's bumping out a network this will enable industry participant Jean.
Speaker Change: I appreciate the efficiency.
Speaker Change: Especially it's by leveraging all of our customer clipping corporate network.
Speaker Change: Particularly true for accretions on the management and the diversified business opportunity, reaching a broader residential services sector.
Speaker Change: Within three months of a journey.
Speaker Change: Agent efficiency of Nordic 19th stole reached over 80% or.
Speaker Change: The efficiency level.
Speaker Change: Already.
Speaker Change: <unk>.
Speaker Change: Also around a certain percent of newly connected.
Speaker Change: Could it doubled average productivity level.
Speaker Change: IPhone installs waiting six months when they joined the platform, becoming prime cause of kidney stones.
Speaker Change: That's all for stone that walks function has delivered strong investment return.
Speaker Change: The payback period for the investment for the new store connecting the first half of the year with up to six months.
Speaker Change: The cumulative store attrition rate, but only 5% which is a six month.
Speaker Change: It's a connection.
Speaker Change: That's a larger network of store agents with leverage to digitalize, the scientific measurement to harvest the owners respond the homeless and covey.
Speaker Change: Improved conversion rates.
Speaker Change: But the scale of our agent network continuing to respond.
Speaker Change: Even more critical to keeping ecosystem governance under stress and all of that is shipped with all stakeholders.
Speaker Change: All of the covenants in the condensate rates.
Speaker Change: What are you spending so appreciate of our original Coke ovens console.
Speaker Change: Neighboring store owners to better practices and decision making of some problem goose hunting engagements.
Speaker Change: Additionally, our stone plant based rewards program was successfully drill outs in that color cities.
Speaker Change: Beyond book, a six foot. So connect store received award benefits average RMB consultant equally limited pistol.
Speaker Change: Well, we also trade truth online still own a workshop to simplify and say I mentioned in process with function such as a dashboard of the triplet regimens.
Speaker Change: It's a fraction level to connect digital and our stores improved throughout the year. That's inside of 4% from Q1 to Q4. Additionally, the monthly store attrition rate your city as kudu between of Shanghai.
Speaker Change: By two 2% disappointing in two different people compared with the year opportunity to this three well master agent attrition rate dropped by one seven percentage points year over year.
Speaker Change: That's a very in touch with us to serve as a key growth engine, but.
Hello hop on the innovation leader He got street reports of solidifying its position in.
Speaker Change: 'twenty two before vantage.
Speaker Change: <unk> yield between two to four days after the over 140000 active agents.
Making a nice increase over 15000 agents up 17% year over year.
Speaker Change: Average monthly attrition rate with BHI agents national wide.
Speaker Change: Rates by 0.7 percentage point year over year to a lower level of three 4%.
Speaker Change: That's a transexual loads.
Speaker Change: Tom will be monkey.
Speaker Change: Solution, which leverage the largest DAU modal has opened that fishing deficiency.
Speaker Change: So it's a model that's supposed to be 10 minutes and game genre with others numbers to Egypt, we're still vetting to 2020 painful.
Speaker Change: Still structure continued to optimize what's the proportion of the large stope, reaching over 50% in Crystal April six percentage point year over year.
Speaker Change: So average commission per digestible reached 253 times.
Speaker Change: To connect the stores the psyche of five 9% year over year girls.
Speaker Change: Talent development remains a key investment area for the in shop relaunch.
Speaker Change: His leadership development program for the industrial mentors this initiative with the strength in storage efficiency.
Speaker Change: He has a problem that ability to retain top performing managers.
Speaker Change: You took it to file both an ecosystem will continue to it's a key roles for our health and protection services. Meanwhile, we're also strive to enhance efficiency.
Speaker Change: We will continue to ensure the steady growth in all of those still on the agent network.
Speaker Change: Well well increasingly drove this in schools.
Speaker Change: We should see improvements leveraging ecosystem collaboration on the digital truth.
Speaker Change: This includes implementing a comprehensive long term storage incentive program.
Speaker Change: As I tried to point to.
Speaker Change: Divorced system to convert at scale with a bunk agent to efficiency again.
Speaker Change: By utilizing more refined mentioned truth well.
Speaker Change: Paulista older whiskey handheld pushing lookup ability.
Speaker Change: Regional penetration and how T. Mo agents are still sort of increase in cost.
Speaker Change: Regarding the jockey vitamins, where we will continue to strengthen the lost the module, but did he say stability with the DHL under promoting it towards those collapsed stores.
Speaker Change: At the same time.
Speaker Change: Fourth as opposed to close of our <unk> business, but she was a proof source the community focus model OSM resolution under virtual services in Beijing, and Shanghai, such as detached.
Speaker Change: Benchmark. Thank you.
Speaker Change: Thank you. Your next question comes from anyway with Morgan Stanley. Please go ahead.
Speaker Change: I say it by name.
Speaker Change: Oh, what I went through some quantity to them and told them that way.
Speaker Change: Now 60 Tau ballpark to God, you ought to know about Walmart com.
Speaker Change: Sorry, a quick wash off the shelf, if they don't call sort of Centaur.
Speaker Change: Yes, you know somebody you should highlight that out of home channel total sitcom something lateral Hudson a point.
Speaker Change: So I'm gonna switching tissue shutdown of Tricia downhole composite show you that.
Speaker Change:
Speaker Change: Oh, well my Lightbox or deal with it when do you see.
Speaker Change: You don't need a T shirt.
Speaker Change: Now what did you find yourself.
Speaker Change: Care management for taking my question.
Speaker Change: My question is about the home rental business, we have achieved a rapid growth in our home rental business.
Speaker Change: What's the key advantage to drive the strong growth.
Speaker Change: We observed that the home rental market remained challenging with declining rents and the persistent oversupply.
Speaker Change: Can we maintain the stability of the home rental business and at the same time to enhance the profitability under such conditions. Thank you.
Speaker Change: Our society interpretation for our home rental business.
Speaker Change: But to get them to go out optional breakthroughs, particularly in all of our country around services.
Speaker Change: I'm sorry into servicing the efficiency reestablish a solid fundamental framework follow up it's a small deal.
Speaker Change: School Wise revenue hope all of our home rental and services reached 14 3 billion RMB growing countries that had 5% year over year.
Speaker Change: Primarily driven by dysfunction of Barbara Kathleen rent.
Speaker Change: The number of dimensions, the unions under correctly run exceeded 400 chooses sultans banjo opportunity in April compared to over 200000.
Speaker Change: A year ago.
Speaker Change: We offer at a larger scale properties, we're happy about it but a deeper understanding of the high frequency now spend in nature longer cycle.
Speaker Change: On your capacity of the rental services.
Speaker Change: Protracted we'll have bookings up to launch their services to sometimes actions undertaken by service provider core science with those sorts of specialization, thereby improving efficiency.
Speaker Change: For instance, also had rental services such as a puppy. However, once the inspection on the fit to take the key change are handled by run through rewards to ensure standardized however procedures.
Speaker Change: While rental service managers huddled independents request to centralize all I've mentioned means providing two different seven supports but youre at that time sort of a soldier accounted for over 60%.
Speaker Change: And that's with a tendency schedules.
Speaker Change: We also deployed a motion reader tools to detect dependent infection on the productivity and cost of services and dependency.
Speaker Change: Or is that all of our property managers got folks on the rental unit yourselves on the occupancy, but it's not to be a trend that the eventual affairs banjo to the two new pool, sorry efficiency with the junior staff increases along to two 9% year over year driving breadth of the coast and total Hudson.
Speaker Change: Each of country right.
Speaker Change: We aren't open that additional capability, where husky bankruptcy Hutchins.
Speaker Change: System is like an air quality between power operations.
Speaker Change: Bumped our practice strategy for the property acquisition.
Speaker Change: Management's two leasing strategy, we keep plugging, taking the algorithms to dynamically magic Traffics pricing.
Speaker Change: <unk> strategy on the Hiseq.
Speaker Change: For efficiency and access to ore.
Speaker Change: For example, your powder cities the system I E.
Speaker Change: I appreciate it.
Speaker Change: We should see after service providers and debenture spending around the 50%.
Speaker Change: Improved paquito overreach at seven 7% on the Shelton's, it's over a cycle by 11, 3% since its launch.
Speaker Change: From a financial perspective.
Speaker Change: Our rental places so what's the crucial improvements in contribution margin in Q4.
Speaker Change: That's the impact that you'll see some are going to peak feet 50 days. So country run these periods of coach over quarter decline in your home in your.
Speaker Change: New home starts in D. C. This led to a decline in he spent with operational staff.
Speaker Change: Vintage of natural until you can call, resulting in a marginal improvement.
Oh theater basis coal operational metrics of the company is run that you put a significantly.
Speaker Change: Your husband dependent to service those types of customer retention.
Speaker Change: Customer to triangulate that's entered the year decreased by more than two 2% compared to the beginning opportunity to neutral.
Speaker Change: I know, we also conducted cost structure after my might be.
Speaker Change: Improved service Cookie dough, so 22 for a tenant renewal rate to 54, 4%.
Speaker Change: The two percentage point increase year over year, reducing the attendant costs over Rudy.
Speaker Change: Regarding the amendment of the rental car.
Speaker Change: Because these are onetime.
Speaker Change: Her focus on Husky retrenching capability.
Speaker Change: Just how to significantly reduce over time.
Speaker Change: Even into Q4 offices at the average because the period decreased from nearly 15 basis beginning of the year to a hunger trumpf days in Q4.
Speaker Change: We continuously upgrades I'll put a module to coverage or new predominant so rich because nobody can secure it continued to rise in Q4.
Speaker Change: It's mostly all the resilience against the rental price Volatilities under review as the vacancy risks.
Speaker Change: The deposit costs per unit with all of our countries runs Moto.
Also dropped.
Speaker Change: This was many due to the increased initial leasing success rate, which rose over 80% in 'twenty two meaningful output by eight percentage point year over year.
Speaker Change: So it's a year of tenure to define first of all we're still hot.
Speaker Change: It's a high hope for the number of rental units manage on the car.
Patrick: Patrick runs.
Speaker Change: Well, we will continue Japan SKU in accretion to that we need to strengthen our value proposition for both tenants and property owners.
Speaker Change: This key life E heightening, our service quality on the posting was when he Tracy.
Speaker Change: Attendance burwell closer refunding, overdue, especially nitrogen module and a pillar of the service standards, but different customer segments.
Speaker Change: Leasing efficiency with a focus on the talent get vitamin C leasing channels leverage AI to enhance and sector, leading efficiency and expanding traffic channels at the Baidu services stuff.
Speaker Change: It's a cosmetic of housing.
Speaker Change: <unk> to increase the D C certainties. Thank you.
Speaker Change: Yeah.
Speaker Change: Thank you.
Speaker Change: Next question comes from Sophie Jang with TICC.
Speaker Change: Please go ahead.
Speaker Change: That's all I had since I got it wrong.
Speaker Change: Oh no.
Speaker Change: It's F allele.
Speaker Change: Kind of California, with all of a sudden young alcohol about you know some of my hats off to you.
Speaker Change: Your question, Yeah, Hows your box happy talk quite a telecom and mobile.
Speaker Change: Hudson longtime balm attach it sounds like on your own Guaymas Tricia will go up by a holiday a question. That's it on your phone and it sounds like why didn't have phased out shout out one that you touched on you know what they eat.
Speaker Change: China Korea boxes that are now classified as held by.
Thanks management for taking my questions and my question is regarding the home renovation business.
Speaker Change: <unk> has maintained solid growth during the past year after surpassing a revenue threshold. That's 10 billion RMB enjoying kind of street. So can management share the main drivers behind the growth and also the strategic plan for that.
Speaker Change: That business Stockman in 25, thank you.
Speaker Change: I think our sulfate interdicted for home renovation and furniture fitness or to have a robust growth in terms of scale of revenue reached RMB 14 put a bid in Kensington nickel up 36, 1% year over year.
Speaker Change: Correct yourself amongst your true RMB 16 930.
Making a year over year increase of 27, 3%.
Speaker Change: Contract yourself to sit at the army through getting a G. On the two buildings in Hangzhou and argued one building in Shanghai Chengdu.
Speaker Change: Five other cities also to the country's yourselves over RMB 500, many age.
Speaker Change: For the full capacity the controversial market for the home renovation furniture business reached 34, 7% in 'twenty to be cool.
Speaker Change: Truman tilt one seven percentage point compared to the same period last year.
Speaker Change: Taking that you'll have to showcase instituted before it's a contract this market for the home renovation of the furniture business Richard close to mid 365%.
Speaker Change: Pre tax profit margin. According high culture cost chart rich over 5%.
Speaker Change: The British sourcing our home renovation in the furniture business.
Speaker Change: People are too, it's a highly efficient dis synergies, reaching over housing transaction services under the new business.
Speaker Change: Well, it's always a constant construction delivery capability.
Speaker Change: Pulse blah, blah, blah, blah and digital Praful does that mean.
Speaker Change: Sure some additional details.
Speaker Change: Different integration all power, helping Panther services centered around our mission services significantly strengthen our customer acquisition ability.
Speaker Change: Jokes Rockies gross contract yourselves.
Speaker Change: We encourage all of our agents to recommend to our new business by point basically send to your model.
Speaker Change: As a result, this has been an increasing as a proportion of the Congress cells by agent referrals. She was a total congress' house.
Speaker Change: Second.
Speaker Change: All the countries of south growth, we need to strengthen our deliberate kind of entities to a coffee says well optimize dispatch efficiency on the workflow.
Speaker Change: Fourth of sharpening the construction timelines.
Speaker Change: Our average construction timeline from 94 days in Q4, 'twenty 'twenty four.
Speaker Change: Representing a decline of over 10 days and just in pure with last year.
Speaker Change: Meanwhile, we continue to reiterate our hometown system on the lungs to version 2.5 national wide.
Speaker Change: Their license as a part of amendments under unified control rules will have improved the system offline data Foundation.
Speaker Change: It's ultimately enable us to produce ultra made it being pizza and constructing Joey.
Speaker Change: Press codes on the unified all not mature scheduling.
Speaker Change: About the outlook for the year opportunities by brand.
Speaker Change: Have a truth plus a big source inputs and SKU with last year.
Speaker Change: And you can justify our cocoa flour foodservice renovation business has put us stress and to improve delivery kaki with a customer centric approach and the implementation of operational efficiency.
Speaker Change: Towards that we intend to use them.
Speaker Change: We intend to implement supporting key initiatives.
Speaker Change: You can put some stress, but this multi tuition and the showroom banquet.
Speaker Change: With countries tablets are strong brand image.
Speaker Change: Foodservice home renovation proactive there.
Speaker Change: All of our insight into the customer needs. We aim to provide the comprehensive renovation solutions, rather than simply sending them to a different part of us.
Speaker Change: At the same time, we've spent off great all machines.
Speaker Change: But until you come to the showroom I suppose is play doh offline store.
Speaker Change: <unk> collaborated with professionalism banners to create realistic showroom.
Speaker Change: I rested rather intriguing to offline spirits with customers.
Speaker Change: Second.
Speaker Change: Hockey delivery capability.
Speaker Change: Promote professional perfect majors.
Speaker Change: It lives that Lumpiness table called accretion, which per commanders use a fundamental guaranty put the quality of the home renovation.
Speaker Change: We intend to take the full time per day major coal truly husky Liberty corner.
Speaker Change: There will be a multi that initiative sort of alternate location central Mackenzie.
Speaker Change: To improve the service product delivery subsection under reduced customer complaint rate.
Speaker Change: Meanwhile, Commentor she'll be responsible for the delivery corky on all of our suite of command by private customers.
So we enhance the operational efficiency.
Speaker Change: Phones to purposely.
Speaker Change: I was curious whether it's connecting with the customer, but making the key person in charge with that we have defined to store manager. That's a first manager who has that fully responsible for the customer needs.
Speaker Change: Click conversion.
Speaker Change: You literally under Pete's management, achieving a Antoine mentioned the loop.
Speaker Change: Reported defend defend the not the first person you can cut off the reservation solutions.
Speaker Change: The conversation.
Speaker Change: Well, we're a stroke center training.
Speaker Change: Our professional certification gene content capability with our foodservice home renovation consent skus.
Speaker Change: Also defined to put the manager at the first person you talked of the per.
Speaker Change: Touch on the coffee table.
Speaker Change: So we're focused more on the overall management of perfect constructed Sherwood and construction quality.
Speaker Change: I'll just take time.
Speaker Change: With greater emphasize on cultivating business fifth streets.
Speaker Change: We intend to focus on key business history, Okay, Saturday and Sunday off itself.
Speaker Change: Lay on structure.
Speaker Change: Coleman resolution proppant along on the mix of service scope tender puts a manager more.
Speaker Change: Treat satisfy improving the service efficiency and poverty.
Speaker Change: We have always played a coffee that's a foundation of the home renovation the furniture business.
Speaker Change: Hold on a solid foundation kind of skull under long enough computing because concrete well.
Speaker Change: Well continue to move forward.
Speaker Change: Our suite of coffee with even greater determination on the cost as you all have a future event.
Speaker Change: Thank you.
Speaker Change: Thank you we are now approaching the end of the conference call I'll now turn the call over to your speaker host today, Ms Ting Li for closing remarks.
Speaker Change: Thank you operator, thank you once again for joining US today. If you have any further questions. Please feel free to contact me cause he investor relation 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.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Uh huh.
Speaker Change: [music].
Speaker Change: Uh huh.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: [noise].
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change:
Speaker Change: Yeah.
Speaker Change: Uh huh.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: [music].
Speaker Change: Uh huh.