Q1 2025 KE Holdings Inc Earnings Call
Siting Li, Yongdong Peng, Tao Xu
Dr. Wang, Siting Li, Xiaomeng Zhuang
Speaker Change: Hello, ladies and gentlemen. Thank you for standing by for Ke Holdings Inc's first quarter 2025 earnings conference call.
Speaker Change: Please note that today's call, including the management's prepared remarks and question and answer session, will all be in English. Simultaneous interpretation in Chinese is available on a separate line for the duration of the call.
Speaker Change: To access the call in Chinese, you will need to dial in to the Chinese language line.
Speaker Change: At this time, all participants are in listen only mode. Today's conference call is being recorded. I will now turn the call over to your host, Ms. Siting Li, IR Director of the company. Please go ahead, Siting.
I'm sorry. I'm sorry. I'm sorry. I'm sorry.
Speaker Change: On today's call, we have Mr. Tao Xu, our Executive Director and Chief Financial Officer. Mr. Xu will provide an overview of our strategies and business developments on behalf of our up-Mr. Stanley Peng, our co-founder, Chairman and Chief Executive Officer.
Speaker Change: And that is just you will discuss the financials in more details. Before we continue, I refer you to our safe harbor statement in our early press release, which applies to this call as we will make forward-looking statements.
Speaker Change: Please also know that they closed early press release and these conferences call include discussions of unnoticed gaps financial information as well as unnoticed non-gaps financial measures.
Speaker Change: Please refer to the company's press release, which contains a reconciliation of the unnoticed non-GAAP measures to comparable GAAP measures .
Leslie: Leslie and last otherwise dated, off the years mentioned during these calls are in R&B.
Speaker Change: Certain statistical and other information relating to the industry in which the company is engaged to be mentioned in this call has been obtained from various publicly available official or unofficial sources.
Speaker Change: Neither company nor any of its representatives has independently verified such data, which may involve a number of assumptions and limitations, and you are caution not to give undue
Speaker Change: For today's call, management will use English as a middle-language with note that the Chinese translation needs for convenience purpose only in the case of any decrypancy, management statements in their original language will prevail
Speaker Change: With that, I will now turn the call over to our CSO incident, Tao Xu. Please go ahead, Tao Xu.
Speaker Change: Thank you, Siting. Hello, everyone. Thank you for joining Baker folks call to 2025. We're in conference call.
Speaker Change: In the first culture, our business continued to deliver wealthy growth. Justice's function was partially based on the market momentum that was filled by the support policies.
Speaker Change: Since last September , it was also consistently driven our active growth strategy, so that we started in the second half of 2023.
Speaker Change: with the fourth quarter, TTV on our platform, increased by 34%, and the revenue rose by 42% over a year over a year.
Speaker Change: Our business continue to all perform to market in the first contact across multiple metrics.
Speaker Change: Not fully, TTV for our skin home transfer business increased by 28% every year in the first culture. According to Bay Code research institute data, the year over year girls of the National TTV
Speaker Change: PTV for our new home condition business, inquires by 53% over year, not as a 0.4% national wide.
Speaker Change: It will not be a reported by the NBI state. It was the first 100 developers to give it for new home sales, also built by a close midday, 7% in the first quarter.
Speaker Change: We continue to see strong moments in the growth of the connective stores and agents on our platform. In first quarter, the number of active stores surpassed 55,000 to 200, a record high, increasing over 12,600 from the same period when you are gone.
Speaker Change: On the agent's side, the number of active agents go by 23% year via representing a mathematician over the ninety-cells of agents, can go with the same theory last year.
Speaker Change: We're active agent for the Clyde store growing by modern 73,000 year-old year to reach a record heart. We're also seeing the steady improvement in efficiency at the store and age level.
Speaker Change: In the fourth quarter, PTV per store and per agent rose by 8%, and 14% respectively, making the bones exactly quarter of year will increase.
Speaker Change: Welcome back to stores. GTV for agents was up by 18% over year. Translating into Stalker Renew for post-doctoral agents.
Speaker Change: Our platform for operations of racial, women's high, with impressive yield and improvement. This year, we are focused on driving both skill and efficiency as two priorities of our throat strategy.
Jeffrey Lee: In the first coat, Jeffrey Lee, Huawei, New Home Transition Services, his new record.
Jeffrey Lee: So, your active market helped with drier, more perfectly with additional benefits from the higher customer satisfaction from the search results and the more personalized recommendations.
Jeffrey Lee: Bursing spirits to each user's narrow and profile will make it easier for people to explore
Chakrit Dharni
Jeffrey Lee: It's improving performance, also refract users' counter patterns to view more homelessness before making purchase decisions.
Jeffrey Lee: For our new home transaction difference, this year, we are focusing on optimizing our collaborations with developers to venture support ourselves through needs, while improving aid and efficiency in matching customers to a suitable new home purchase.
Speaker Change: In the fourth culture, we concentrate our efforts on high-end projects in the market. At the same time, we continue to drive greater participation from our stores in the new home business. So, thank you, McKenzie.
Speaker Change: Our one-by-days remote strategy maintains stronger performance traction. For the home renovation and the furniture business, we have just our pace this year, to treat each blade, box on
Speaker Change: Our primary goal is to make them more customer-oriented while remaining our organizational structure for greater efficiency.
Speaker Change: Unproduced Front. We're sticking in and advanced to the title of our new home group, Renovation Produced in the Folk Culture.
Speaker Change: Jizhou, 156% of your increase, your average monthly order in tape for a project manager, reaching 2.97 competitors per week, 1.16 in 2024.
Speaker Change: Neither Flood's culture, over full personnel of a total home renovation project came from the referral by previous customers.
In addition, our program of an additional mention efficiency improves a lot to delay.
Speaker Change: The average amount of water volume per home renovation can increase by almost the 33%.
Speaker Change: Moving from 0.79 in 2024 to 1.05 in the first quarter of this year, an outpacing total of growth year-round in the home-renovated business.
Speaker Change: Let's quote it, Stanley shared some sort on our AIT-Premon plan. Next, I'd like to provide an update on our use of VR in the first quote.
You are a whole thing for such a business.
Speaker Change: on Silver-to-And customers, which in John's testing of our AI-powered home seeking assistant Putin intensities, which is already accessible to 40% of our traffic on our homepage.
Speaker Change: Putin was developed based on deep-sick R1, an automatic platform data set, and the proprietary knowledge graphs.
Speaker Change: Well, I've today built in an introductory vertical database based on the larger model to input Putin's smart response accuracy and the input multi-model display capability to optimize the interactions between the service provider and customers.
Speaker Change: We believe that smart AI existent while you power both home owners and the buyers with the morning pageant solutions for the home making and decision making. We also have the service providers identify more accurate leads.
Income Self AI Truths for Service Providers
Speaker Change: Our agent service, Home Byers, will introduce the line cook, the air-based agent assistant, like offers a full suit of features, including custom acquisition, and home selection, air child assistant, and smart follow-ups.
Speaker Change: These tools, in power regions, should activate the customer, enhance their professional service capacity and the improved efficiency in connecting with the customer.
Speaker Change: Band of March 25, over 200,000 agents nationwide, have used Li Ke, collectively manage over 2.5 million customers, with impressive efficient improvements.
Speaker Change: The commercial rate from means to formal crime mandates increased by over 30% and the mandate to transition commercial rate goes over 10%.
Speaker Change: Beijing is effectively using Lyco to achieve the 92 transaction conversion rate that was three times higher than those now using this product.
Speaker Change: For agents serving homeowners, we identify a common issue. Many homelesting will not be improperly maintained on the platform due to agents' limited time and tension, which
Speaker Change: Osofis, Relavelty, Relavelty, the AI protein maintenance assistant, which helps agents majorly steam more efficiently and improve the experience for homeowners.
Speaker Change: We're in the homeowner dedicated AI service group, their assistant co-workers, Samaritan replies, Marty Trending site, report analysis, and they engage in the war space promotion.
Speaker Change: That's the end of March 2025. The portal has been parlored by 110,000 agents and have served 400 [inaudible]
Speaker Change: Hong, Fisting, and Candidate Resolver, he assets and achieves a transaction conversion rate, four times, that's also without it.
Speaker Change: Additionally, our digital partner, Xiaoyi, utilizes AI capability to enhance critical operational workflows, from contract quality inspection to automated post-signing follow-ups.
Speaker Change: Just wish to be the marital improvement in front of the service car key and efficiency, delivering over 30,000 cumulative powers in practical saving.
Speaker Change: In our home renovation business, we launched the AI customer maintenance tool to strengthen the fallout and the latest commercial, yours the most critical tool with window in home renovation
Speaker Change: The air-based light wood beam and the intelligence and marketing solution has improved efficiency in both
for Hong Kong Retro Service.
Speaker Change: Our AI Assistant for Post-Rental Support, Xiaohui, has been tested online in 30 cities.
Speaker Change: It is already successful humbling 25% for tenant requests, suing intelligent automation, providing tenant with a smart, more responsive service experience.
Speaker Change: At the same time, it enhanced the efficiency of the medical collaboration among the various roles involved in the recent progress.
Speaker Change: I share a lot of numbers on the total worry and average efficiency rate of our business, but this are not the key items with books now.
Speaker Change: We can't give place about every individual customer's experience under what we've been committed to enhance our service quality.
Speaker Change: 62024, we introduce the founding custody of Siting in our home renovation business.
Speaker Change: Giving customers great potential on the piece of maps, all that is nodal, renovation found, are frozen in customer personal bank account, and only release to us after project milestone has been completed, and approved by customers.
Speaker Change: including plumbing and electrical tracks, based on the renovation and the final set of things.
Speaker Change: There's a modal shift in the way the traditional pay for the language of a progeny in that tree.
Speaker Change: Joseph Smith integration, customers contract their funds online in the old time, with full visibility and nutritious ability. As an interest, earned during the custody period, gets to return to just a customer.
Speaker Change: In 2025, we drove out our innovation firm, Cassie Survey, Inc. Sarah Siting, including Beijing and the Wuhan.
Speaker Change: On top of that, we have to give out the found custody solution, Peng Fremok, so it can be utilized by others in that three periods.
on the scoring of commitment to driving the industrial progress.
Speaker Change: Daniela, who I encourage by China Technical Advance, and closely watching the evolving of
Speaker Change: Well-wiggly men's confidence in our platform ability to deliver sustained growth over the long
Well, approaching the shelter with the cautious of how often needed.
Speaker Change: That is why we're still continuing to invest formally in AI while taking a more married approach to other investments this year.
calling last year's Reptile Investment to the US, why the subsidies?
Speaker Change: We are now setting clear short and medium to ROI benchmark, to ensure the different clean capital allocation.
Speaker Change: This balance strategy will hack us by the position of ourselves to categorize on both multiple cultural opportunities and AI-driven generation productivity data and the safeguard of our traditional
Speaker Change: Oh, well, protecting the interests of the shareholders. Who share our long-term vision?
Speaker Change: You're not with that commitment. This year, we'll continue with active share [inaudible]
shareholder returns.
Speaker Change: Thank you. Next, I will review our first quarter, today to the final initials.
Siting Li, Yongdong Peng, Tao Xu
Speaker Change: Let's again, Senka Irvine for Juniors, before you're diving to our Q1 performance.
I'd like to virtually touch a pound.
on updates in the holding market.
Incure one, Timothy performance with the best people.
Speaker Change: Propetulating to continue the positive interest result from positive impromentment in the
Accounting to National Bureau of Statistics
New Home South remains relatively flat year-over-year in Q1.
others in the substantial year we have declared in the same period last year
Speaker Change: Nuo, Sui, Siting Hong, Market, Bremend, Highlight, New Activity, and School of the New Path of Harvard.
I'm sorry. I'm sorry. I'm sorry. I'm sorry.
Speaker Change: According to the paper research institute, in Q1, the Siting Home TV goes by around 15% and a number of home is in home, actually climbed by around 20% both year over year.
Speaker Change: in dealing no confidence in potential home buyers to enter the market.
Someone for the upgrade was even my will-past.
Speaker Change: Amongst his three home selves in key cities, the share of three-by-room and the larger home to continue to rise year-of-year into one.
Turning to our RQ1 financial performance [inaudible]
Nacramu reached RMB23.3 billion, up 42.4% year-over-year.
Gross margins declined by 4.5% year-over-year to 28.7%.
Speaker Change: I don't know. I don't know.
That's legend called, was only 855 minutes, increasing 97.9% of the year.
Nanggak Nakhinkan, Richard B. 1.390. Remaining stable year over year.
Looking at all the housing transaction services [inaudible]
Speaker Change: Revenue from the in-home construction reached RMB6.9 billion in Q1, up 20% year-over-year and down 23% quarter-over-quarter.
GTV was on the 580.3 billion
Speaker Change: PKPRO has paid the grand new year of the year, many due to a decline in the grand new share of the rental brokerage services.
Speaker Change: and the high-compulsion probably in-home production service GTV, facilitated by the night ages.
Siting Li, Yongdong Peng, Tao Xu
Speaker Change: They run you at the corner at night, venues to run from platform services.
I'm sorry. I'm sorry. I'm sorry. I'm sorry. I'm sorry.
Speaker Change: The country's market from the zinc home transaction services was 38.1% in Q1, representing a decline of 6.4% at the year of year, primarily due to the increase in support and the improved welfare for the service providers.
This is our long-term strategy to build a harmonious ecosystem.
Sequence only, the College of Ducing Margin, dropped by 2.1% of the clock.
Speaker Change: But beautiful too, not to elaborate inference due to the decline in Romino exceeding that in fixed labor cost.
new principle of the new home tractor insubiates.
with their output from the market.
Speaker Change: Star RC reports that the cells from the top 100 dividers fill by around 7% of the year and 41% sequentially through 1.
Speaker Change: You can follow us on your home TV, Rich R&D, Johan Research 2.2, Eddy, and Q1, 53% year-over-year, and the down 34.6% quarter of quarter.
once again, half performing the industry.
Speaker Change: This was managed due to the deepening of our collaboration with the LAS, and our finally tuned operational catalytic, by the Mohsiao's confirmation from the partial subsecretion in the last quarter.
Speaker Change: Running from New Home transactions was R&B 8.1 billion to 1, rising by 64.2% over it, and the broken by 3.8.2% from previous culture.
Speaker Change: Romino all performed the TTV of the year demonstrating our stronger meditation capabilities, while TTV gross all-paced Romino gross crucially due to its systematically.
Speaker Change: The contribution margin from the New Home Cancer Services grossed by 1.1% to 1.4% to 28.4%
Speaker Change: That's what we can leverage from the Web new growth, the decision that of the fixed cost.
Speaker Change: He personally, the new home structure is Martin Decline by 2.2% of parts, largely attributable to the Siting Li effect.
Speaker Change: If you want, that's all you give out is to contribute around 54% of our new home sales revenue, increasing by around 4% this point year over year.
Siting Li, Yongdong Peng, Tao Xu
Speaker Change: Renewed from home renovation and furniture, home rental service and emergency services,
Speaker Change: Yao Li and Qua, it accounted for 35.9% of our total revenue compared to 35% in the same period last year.
Speaker Change: The contribution per page from Jizhou Dong is accounted for 32.7% of our total gross per page.
Run New Bridged
Speaker Change: Romino Rage Army 2.9 billion, increasing by 22.3% over year, many due to the increased orders from the home renovation.
Speaker Change: Contribute smartness for the home renovation of the furniture business, Grinch, Doug, Greco, Hype, over 32.6%
Speaker Change: Up to 2% each point year, and 2.8% each point called quarter, related to the increase growth margin of our home renovation business. Our home rental services, business, continue to grow at an extent where it pays into one.
Speaker Change: Let's write new Richard Rekko high of RMB 5.1 billion, of 93.8% year-of-year. Mainly, binge-feeding from the rookie growth is a number of the rental units on the measurement.
Speaker Change: Band of Q1, the number of rental units on the maintenance exceeded 500,000, compared with over 250,000 in same period of 2024.
The contribution market for the home brothel services for the 5.7 percent
Speaker Change: up 1.2% each point year-to-year and a 2.1% each point is code of culture.
Speaker Change: largely due to the imprints grossed pocket of our country-run business.
Speaker Change: Although we continue to refine the currently run business model, based on the sense of business contract, the revenue from some newly-managed rental units were recorded as net revenues derived from the service fee in this quarter.
Speaker Change: InQuan, arranging from emerging and ordinary services, decreased by 50% year-old year, and the 20.3% code of code, Quan B, 315 minutes.
All right.
Speaker Change: All stock costs reach RMB770 million, remaining relative stable year-over-year, and dropping by 8.8% Q2.
Speaker Change: The sequential decrease was many from the lower stall rental cost [inaudible]
Speaker Change: Secretly, other costs declined by 26.7 percent, largely driven by the decreases in the tax and the surcharge, financial service and retail, and the cried losses, and the share-based
I don't know. I don't know. I don't know. I don't know. I don't know. I don't know.
Gross profit goes by 17% year-over-year to RMB4.82 billion.
Speaker Change: Goss Martin was 28.7% down 4.5% at the point in a year. The primary reason for the decline would decrease in contribution Martin from his in-home production services.
Gerst Martin, figure by 2.4% from these points, sequential in Q1.
Speaker Change: Menet you to the start of the region as the Ramyun Constitution of New Home Protection Service Decrown it.
Siting Li, Yongdong Peng, Tao Xu
Speaker Change: In Q1, our GAAP operating expenses totaled RMB4.2 billion, up 2.9% year-over-year, and down 31.3% sequentially.
Speaker Change: Blah Blah, G&E expenses, RMB 1.9 billion, decreasing by 7.2% over the end, related to the reduced
Speaker Change: and from our village, I took good photos to the lower personnel in Spin Se's and the deep trace of bad approvation.
Speaker Change: Delta Markance Princess, Eucharist by 9.2% year, 2RB 1.8 billion, resulting from the Eucharist Princess for the home renovation and furniture business.
Total of 14, South America expenses, bill by 24.4% [inaudible]
Speaker Change: Manage which were declined in math expenses for home transaction services and the returns for personnel expenses.
Speaker Change: Or R&D Census, or R&D 584M, up 24.9% EOVA, growing by higher personnel expenses and attracting service fee.
Speaker Change: Equitually, Army expenses dropped by a change of atmosphere, largely as a result of the
in terms of the profitability.
Speaker Change: That Beijing market was 2.5%, increasing by 2.5% each point, from Q1 to 22.4% and falling by 0.7% each point code of code of code.
Now got to income from operations totaled on view 1.15 minutes period.
Speaker Change: Growing by 19.6% from the same shore of last year, and the dropping by 34.6% significantly [inaudible]
Now, got a picture of Martin Grish, the 4.9 percentage.
Speaker Change: 00.9% points from Q1 2024 and a 0.7% points on the previous quota.
Speaker Change: Lenin is good for the gold smarges decreasing, both year over year and a coat over coat [inaudible]
Moving to our cashier on balance sheet.
Speaker Change: We realize the net operating cash offload of our before-ending Q1. New home pay also reached 63 days in Q1, remaining at house level.
Speaker Change: I'm talking about approximately $169.9 million, allocated to share the purchase during Q1. Our total cash liquidity remains at the high level of RMB 7.34.3 billion, which at schools can't be deposited
Speaker Change: Inc. One, with your purchase around your $139 million worth of shares, which are counted for around 0.6% of the company's total share outstanding at the end of 2024.
We have consistently delivered on our promise to reward shareholders.
Speaker Change: Since the launch of the share reproach program in September 2022, we have repurchased roughly your $1.76 billion you share at the end of Cuba 2025, accounting for around 9.2% of our total share of funding before the program began.
This year, our professor will focus on efficiency improvement.
Speaker Change: If a natural strategy were only assured at our investment, I'm with the more efficiently
Speaker Change: We will respect every penny and make sure it's money spent in you to get rid of all results.
Speaker Change: The government can use the discipline, the conscience, and control. We all continue to support a long-term business development, but we are fully backing our one-parties to re-strategy initiatives, and activate supporting AI technology.
Speaker Change: At the same time, we possess nexus and intention to consistently offer the civil and sustainable returns to our shareholders.
Speaker Change: This concludes my profound remarks for today. Operator, we are ready to take questions.
Speaker Change: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced.
Speaker Change: If you wish to cancel your request, please press star 2
Speaker Change: If you're on a speaker phone, please pick up the handset to ask your question [inaudible]
Speaker Change: As a reminder, we earn the except 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 you can re-enter the queue.
Speaker Change: If you're going to ask a question in Chinese, please follow with an English translation.
Speaker Change: Your first question comes from Timothy Zhao from Goldman Sachs. Please go ahead.
Siting Li, Yongdong Peng, Tao Xu
I'm sorry, I'm sorry, I'm sorry, I'm sorry, I'm sorry
Speaker Change: Good evening at four, Chao Ge. Thank you for accepting my question. My question is about the outlook for the real estate market.
Speaker Change: We observed a nice 'little spring' performance in the market after the Spring Festival. I would like to ask, if we look beyond the second quarter, given the latest macroeconomic changes, including some fluctuations in tariffs, what special outlook do we have for the market now?
Speaker Change: Thank you for taking my questions. I think my question is regarding the outlook for the property.
Siting Li, Yongdong Peng, Tao Xu
Speaker Change: Thank you, Timothy. For fewer market performance, with the central government continue to therefore to stabilize the real estate market. So it's new home market, so it retributes strong recovery of the trans-new year. And the new home market also performs stable. Let me give some details.
Speaker Change: The Info Home Market rebound after the transmission year as it sped it, according to paper research is huge. Nationwide, it's Info Home 3GB or by 16% year year in Q1, sustaining the moment in field by the September 26th policy stimulus.
Speaker Change: This girl was many due to the cumulative impact of the early stimulus policies.
Speaker Change: This policy substantially lowers the cycle and the cost of the home purchase [inaudible]
Speaker Change: Motivating more people to buy, writing transactional knowledge also half the balance supply demand in the shortage.
Speaker Change: Narrowing the decline in the home process year and the bringing the cautious fighters back to market.
You think on prices?
Have a stay in the monster's table.
Speaker Change: Deeping by 0.5% among all months in March, you first hear cities like Beijing and Shanghai.
Speaker Change: That's where I saw seven care cities with the strong net population close and the steady increase in the housing demand in recent years, such as Hongdo and Chengdu. Let's see how prices have picked up slightly more so amongst.
Siting Li, Yongdong Peng, Tao Xu
for New Home Marketing Q1.
which is also very stable according to NBF data.
Speaker Change: Q1, your home self, were all over the flat year of year, down 0.4%, TKB of 100 billion developers, dropped by 7% year of year in Q1.
Not fully, the self-spite flow area, increased by over 15% year-year [inaudible]
Speaker Change: Wang's Q2 of the trans-new year, the multi-followed is a typical seasonal pattern. The three-hole transaction volume picked in the early March, then gradually declined through
from a supply-demand standpoint.
Speaker Change: The Chong Chong number is in home resting on Baker losing Q-1, and falling Q-4 last year.
Speaker Change: It is also a major result of the single market dysfunction and the lifting of the sales restrictions which have released the more helping supply.
Speaker Change: The thoughtful supply of the nearly new existing home in Chusea market has also improved overall listing supply quality and created batch conditions for buyers looking to the home upgrades.
Siting Li, Yongdong Peng, Tao Xu
Speaker Change: Meanwhile, we observe that the increase in the market demand outpaced the increase in human
Speaker Change: In April , April racial of the home viewing to entry was at 1.8%
Speaker Change: which is at the higher end of the 15th historical range of the 1.6 to 1.9. This address is stronger by an interest and a plentiful amount with a monkey aperture of salt and new human theory.
I'm sorry. I'm sorry. I'm sorry.
Speaker Change: However, the conversion from the home viewing to transaction has slowed.
Speaker Change: Many due to the short-term uncertainties of fighting by our expectations, including the external factors such as the geopolitical tension, this has led some softening the housing
which made the fighters more hesitate to enter the market.
for FutureMarketOutlook.
Speaker Change: We've produced multi-all look, well-keplanned on two main factors, the impact of the international trade friction on halting transactions and the strength and timing of domestic confirmations.
Speaker Change: Our neutral scenario, waste batter, keep coast signals slow down in Q2, our secretive culture places. Here we are, however, the Zoom home market is bad to see a slight increase in the Zoom home transfer from moment, although at a slower pace than Q1.
This is a positive act to hire a transaction only in yuan.
The Growning Supply of the High Quality
Speaker Change: Yulei Liu is sitting home and is a Yale-built increased in customer home building.
at the market experience of culture on culture decline in Q2.
Speaker Change: and if a snow-trade pressure intensifies in Q3, indicators such as the housing price, Trusted morning and Department of Advancements in May weekly.
Speaker Change: This could create rooms for further supportive policy measures in the second half of the year, which would help improve both supply and demand in property market and support stable market development.
Speaker Change: Well, also closely monitoring the impact of change in global trade on growth and market.
Speaker Change: In terms of complex things, it's an overall number of the new listing of bigger platform remains stable in the effort, with no signs of the homeowners rushing to sell.
Speaker Change: The number of the home viewing for both Siting and New Hope, the ocean of the North Pole, Yeh Gui, and Christine Apro.
Speaker Change: Wen, Patrick Rising the Cities, so that we cover by high and low tree dependency.
Speaker Change: We observed that since the tariff fell off in early April , the city was a high-trend dependency.
have us loaned.
Speaker Change: have shown the wake of the open air and the month-over-month home viewing performance in petrol cities with low-trade dependencies.
Siting Li, Yongdong Peng, Tao Xu
Speaker Change: It just indicates that while the transcriptions have caused some shorting disruption in various
Speaker Change: There has not been a technique in the trends of the religious overall and the homeowner sentiment remains stable.
Wade observed noticeable the escalation in recent U.S. China Treaty tensions [inaudible]
Speaker Change: Where the should help stabilize the business and the consumer's expectation in your term.
In our view, we believe that intentional trade frictions
Speaker Change: The potential are launching dynamic process with uncertainties and the potential for improvement.
Speaker Change: During the upcoming 90-debt infiltration window, we were closely monitoring the development, tried the resulting impact and the sense of potential implications for both real estate market and our company on ongoing basis.
Speaker Change: crossing both China and the US will continue to move together each other based on the positive progress made so far. Meanwhile, to continue the implementation of the domestic support on key policies, it is ready to further do the customer confidence.
Speaker Change: Together, this is the strategy to mitigate the impact of the trade risk on the property market, helping to consolidate the initial stabilisation of the single market and the ease pressure on the single market. Thank you.
Siting Li, Yongdong Peng, Tao Xu
Siting Li, Yongdong Peng, Tao Xu
Siting Li, Yongdong Peng, Tao Xu
Speaker Change: Thank you. Your next question comes from Xiaodan Zhang from CIC. Please go ahead.
Xiaodan Zhang: for this year in terms of housing agents and the agency's stores. And on top of that, how will you continuously improve the efficiency of those existing and newly connected agents and stores on the platform? Thank you.
Siting Li, Yongdong Peng, Tao Xu
I'm sorry. I'm sorry. I'm sorry.
Xiaodan Zhang: I thank you, Sophie. This year, we will continue to promote healthy growth of our agents based on our work to support the sustainable expansion of our housing conversion services.
Xiaodan Zhang: At the same time, we will place greater exercise on the positive thickness of the stoichiose function. Our aim is to enhance the efficiency and the income of platform stores and agents, thereby increasing the stability of agents' careers.
Xiaodan Zhang: providing better services to customers and achieving most sustainable long-term growth for our platform.
Xiaodan Zhang: In terms of the agent and store network's function, Band of this Q1, the number of active stores on our platform increased by nearly 30% over year, and the number of active agents, go by 23% over year.
Xiaodan Zhang: The gross was mainly driven by Nang Leia's segments. There was a 33% year we are increasing acting Nang Leia store and 24% year we are increasing in acting Nang Leia agents in our
Xiaodan Zhang: Thank you, one, several major brands, general platforms. This includes our collaboration with Zhongyuan
Xiaodan Zhang: and the control of Turkish company in Quijuan, Suzhou. This shows the co-video of our platform in by-side market, which is our stronger, existing home business equation, eight in connection now what and the digital empowerment of capabilities.
I don't know. I don't know. I don't know.
Xiaodan Zhang: In Q1, our efficient efforts paid off in the stable market environment. The average number of the transaction per agent goes not to play in Q1. Since health outside the decline, you average how do you need the process?
Xiaodan Zhang: The other result is in-home TV for agents, go by over 9% year-week in Cuba. The average number of agents also rose by 18% year-week. The gatherers expect to lead to a 28% year-week increase in-home TV on our platform.
Xiaodan Zhang: Primate, outperforming the six-person increase in National Watch TV, as estimated by a paper research institute.
Siting Li, Yongdong Peng, Tao Xu
Xiaodan Zhang: Our platform is the efficiency focused mechanism, also start to show results, the share of the high performing stores increased from 16.7% at the end of 2024 to 18.4% in Cuba.
However, the store will have about 2.5 times more money, more [inaudible]
Siting Li, Yongdong Peng, Tao Xu
Xiaodan Zhang: Productive, and that's all those thoughts on the platform into our respective series.
To improve the efficiency, we've refined our internal management.
Xiaodan Zhang: We use the digital tools such as online store owner workshop and AR property listing assistant along with offline property listing sessions to facilitate the
Sipulation of Homicity, they are accelerating the cells [inaudible]
Xiaodan Zhang: We also input platform operations through the building, mechanisms like point-based incentive program and the regional co-governance council. This encourages the owners to keep growing the place and work more closely with each other.
Xiaodan Zhang: R-Store Retention Rate, Remain Housey for both Overland New Stores
Xiaodan Zhang: Rui's in-home nutrition rate dropped to 2.9% in Q1, about 6% in secretional and 38% year-of-year, and a 6-month retention rate on the only next source in first half of 2024 with 94% showing the long-term value of our platform support.
Xiaodan Zhang: For two years, we recently posted just the number of people in the store. We are already in largely stable.
Xiaodan Zhang: Meanwhile, we start a more-than-you quiz. You scale up knowledge on the stores where the topic is functioned in certain key regions.
Xiaodan Zhang: On top of the stable eater in the store networking, improving efficiency will be of a cargo to see it and beyond.
Xiaodan Zhang: This year, we will provide more targeted support to the honest, to have the impregnional
Xiaodan Zhang: At the same time, on our applause based in the Executive System, we aim to give out more high-performance
Xiaodan Zhang: The Long Run, the last storm module will be a key strategy for enhancing productivity.
Xiaodan Zhang: In the future, our platform will host the most high-performing large stores, each with over 10 agents, these stores will attract more top talent.
Xiaodan Zhang: This large stock boosts high efficiency and a strong stock retention, allowing the owners to achieve better income and stay in business longer
Xiaodan Zhang: Both the owners can fight the support agents, ensure their income, their ability, and enabling the owners to provide the superior service to the customer.
Xiaodan Zhang: The platform's various residential service will also offer agent diversified opportunities for additional income
Xiaodan Zhang: Additionally, we formally believe that rip sewers in May are well-presented opportunities for self-presumative improvement in the natural productivity.
Xiaodan Zhang: We have already developed a variety of way of education to support our service and providers and the world of continue to accelerate development to redefine the capabilities of the quality service providers and the drive-side efficiency gain.
Xiaodan Zhang: This year, in a volatile market, we aim to increase the average number of transaction per per night per agent, to maintain stable, but prepped out for measures.
Xiaodan Zhang: Or like two to three years, we plan to increase the proportion of large and high-quality stores.
Xiaodan Zhang: We anticipate, within three years, this will allow to approximate a 20% improvement in efficiency of those connected agents of our platform. Thank you.
Siting Li, Yongdong Peng, Tao Xu
Zhizhu Dong: Thank you. Your next question comes from Jizhou Dong from Numura. Please go ahead.
[inaudible]
Zhizhu Dong: Okay, here is my question. We have observed that the company's furniture and home improvement business saw a year-on-year growth of over 20% in the first quarter, and the profit margin also improved by two percentage points year-on-year. I would like to ask the management to share with us the specific business progress of the home improvement business and the outlook for the profit margin for the entire year of 2025. Additionally, Stanley and Tao previously shared many ideas at the performance meeting the year before last and just now about leveraging AI technology to drive business and improve service quality.
Zhizhu Dong: Could the management also provide an outlook for the next few quarters on our plans and investments in B2B, B2C, and AI? Thank you.
Zhizhu Dong: Management has shared a lot of the ideas of BAKER using AI to drive its business and improve its service quality, looking into the next few quarters. Thank you.
Thank you to Zhou, our home renovation and the turn trip business.
Speaker Change: Demonstrate the action of formatting to scale one. In terms of scale, the brand new, amounting to R&B 2.9 billion, continued to 0.3% over year.
Zhizhu Dong: Today, such as Beijing Guangzhou and Zhengzhou perform with Specialty Wang, and each achieved over 50% year-over grossing revenue.
Zhizhu Dong: Regarding the profitability, the contribution market for the home renovation and furniture business reached the 32.6% in Q1, the increase of two percentage points compared to the same period last year.
Zhizhu Dong: reaching a cracker high under the reflecting of a craftility of the refined operation and measurement.
Zhizhu Dong: We believe that the AI has extensive application scenarios in the home renovation and furniture.
Zhizhu Dong: Well, I also continue to say deepening the application of AI, such as the contract conversion, construction process, and the internal maintenance. Let me elaborate for details.
Zhizhu Dong: First, in the early stage of the contract conversion, previously, detainors conduct the initial communication with customers through the two dimensional black and water flow prams.
Don't read.
Zhizhu Dong: Professionally reduced their customers and perceptions and the fact that efficiency of the counter-conversions.
Zhizhu Dong: Currently, empowered by AI, when customers visit our offline store for the first time. The tenants can graphically formulate an IR proposal based on the customer's preference for decoration spell and home layouts.
I don't know. I don't know. I don't know. I don't know.
Zhizhu Dong: This air proposal encompassed various types of three-dimensional color-runded design, drawing dynamic and
Storage in this multi-vice layout plan [inaudible]
Zhizhu Dong: Taking what has an example, the time period from first time is in store to sending a preliminary conference or the shortens from previously ten days to within six days, March.
Siting Li, Yongdong Peng, Tao Xu
Secondly, Interconstruction Port Slash [inaudible]
We have developed an intelligence constructions with Siting.
Zhizhu Dong: Real-time online inspections, realized by installing cameras on the spot.
Zhizhu Dong: Ehaka also role as automatic management, in core construction operations, such as the real name of the drop specification, the inspection of the standard cleaning means, and the noise
Zhizhu Dong: In addition, by decrupping staff with smart inspection devices, we assist in standardizing the home renovation acceptance process.
Zhizhu Dong: to pay a recording technology. We can recontrast the acceptance process, enabling the principle and the quantifiable evaluation of the construction quality.
Zhizhu Dong: Taking between us in Zempo, the abundance of what I've reached great has increased by most in two percentage points compared.
It was before [inaudible]
Siting Li, Yongdong Peng, Tao Xu
Zhizhu Dong: Meanwhile, in terms of the internal management, we have a multiple AI employees, Siting Xiaosheng, as an algorithmic AI employee. You have the effectiveness of the team management by automatically summarizing and commenting on daily reports, and demanding about depending matchups you
Zhizhu Dong: Xiaodan Zhang has clacked and commented on most in 20,000 daily reports. Siting's team, Mo Wang,
and Xiao Te.
Siting Li, Yongdong Peng, Tao Xu
Siting Li, Yongdong Peng, Tao Xu
Speaker Change: The C-17K motion 18,000 hours within half a year, rotation at the order polling area in their employee role like functions such as information distribution and automatic order send-ins.
So the information collection and AI analysis capabilities
Speaker Change: In the future, our AI is growing for home-renolation disease, we'll be concentrating on the forty-five
Speaker Change: We aim to achieve the vital personnel of the solution from the amount of detail and the competitive rate behind the professionalism and the efficiency of our services. Thank you.
Siting Li, Yongdong Peng, Tao Xu
Siting Li, Yongdong Peng, Tao Xu
John Lam: Thank you. Your next question comes from John Lam from UBS. Please go ahead.
I'm sorry, I'm sorry, I'm sorry, I'm sorry
Speaker Change: My question is about Beihao Home. I see the company is involved in many new housing projects. Could you please explain what role Beihao Home mainly plays, and how our C2M is reflected?
Speaker Change: So let me translate my questions. So my questions regarding on Be Hao Jia. So we see that Be Hao Jia has already participated in numerous new home projects. So just to see how Be Hao Jia...
Speaker Change: Contribute to the new home development and also regarding on the C2M business, how the business is being reflected. Thank you.
Speaker Change: Zhu Fang, Bi Hao Jia, has participated in nine projects across different models.
Speaker Change: Chuang's self-operative project, Emma Ma, Comprehensive, Valegating of Sichuan capabilities.
Siting Li, Yongdong Peng, Tao Xu
Left for juice
Speaker Change: Invo, X-D partners, Rich Behe, Xia, Promotory, Boxang, the Products, Petitioning Using HY, and the Right To Project, Pugling, Light, ISAC model, swirly, do not engage in investments but instead provide the product position with solutions to partners and the charge of service fee.
I'm sorry. I'm sorry. I'm sorry.
Speaker Change: Regarding the phone will use across the seven investments you vote to progress, so total investment have a range about R&B to place your ability.
Speaker Change: The end of this Q1 will have recovered in the early on before 100 million from Chilson. Nice investment from our own funds stands over on B1.8 billion.
Speaker Change: Among these, our first active partnership, new home projects, which we collaborated with the power-channel real estate, Beijing-China Huasi Mansion, in the local history of Beijing City, achieved a complete set-out of all initial units on the first day of launch.
Speaker Change: The project delivered at our nearest eight percent at the shareholder level, demonstrating how ours to own service capacity provide partners with enhance the sales and the operation
Inbuding Sichuan capabilities, we have a true key at the wrong page.
Speaker Change: First, we have a deep outstanding of the needs of potential consumers.
Speaker Change: I also chose from the rich confirming interactions in our bookage, home renovations and
Together, this forms the foundation of our core data infrastructure.
Speaker Change: With this data, we can analyze the key indicators such as the source, quantity, purchasing power and the specific product needs of the potential customers, you are more timely, intuitive and dumb.
Siting Li, Yongdong Peng, Tao Xu
Speaker Change: Maduro, Secretary General of the United Nations has been behind the last few days of summit, in the United States.
Speaker Change: This level of detail of the customer insight, how the developers make a more accurate decision and I look at resources more effectively in areas such as land auction assessment.
Speaker Change: You need mixed planning and production, ultimately leading to the greater operational certainty.
Siting Li, Yongdong Peng, Tao Xu
Speaker Change: Our second advantage is the strong marking, knowledge and price ability.
Speaker Change: We use actual transaction price of each new home, along with the real time and upstream data
Speaker Change: This model can more accurately estimate the product and the sector value and update quickly based on the changes of market.
I'm sorry, I'm sorry, I'm sorry, I'm sorry, I'm sorry
Speaker Change: This approach aligns more closely with the prize formation logic, your virus market.
Speaker Change: It's in home price, a largely R-effect by policies of all developers strategy and instead results from the decentralized and the free negotiations between viral and sellers.
Speaker Change: He is a market dominant by its new home production. Its new home process opened even more accurate, much later the view of the market ten new home market data.
just hovered by the multi-trend [inaudible]
Speaker Change: Based on this two other on-page, we have refined our core situational tools. We will continue to improve the accuracy and professionalism over time.
Speaker Change: We are our agent network for network with customers. We are also building an online community for the building a better home to get together with our application.
Speaker Change: It enables users to directly participate in evaluation and a core coalition of new home product designs.
Speaker Change: For example, Yao Fengxian project in Shanghai, users can visit, building a better home gather page, set a view and it can build a two-home design plan, engaging in the design process of their future dream homes.
Just a little effort to connect with customers much earlier than traditional methods.
Speaker Change: It also makes their patterns much better. He's a new home part product.
Siting Li, Yongdong Peng, Tao Xu
Speaker Change: We have already provided all the first the Sichuan Product Delusion Service, UNCM Project, Surveillance Service Speed, showing stronger marketing recognition from our business approach.
Siting Li, Yongdong Peng, Tao Xu
Cult of optimization, pride forecasting, and the marquee services
Speaker Change: trying to address the key developer, Pimpons, such as the fast capital recovery, product premium, and the product specialty news.
Speaker Change: Last but not last, as the newcomer to the Inga Tree, Xiaodiao remains hand-bo, and the good
Speaker Change: Although the business life has been established for less than two years, we have already seen the promising result in several projects.
Speaker Change: It's already since I've gradually validated our capability path and the strengthens our confidence in continuance, optimization, and the moving forward. Thank you.
Siting Li, Yongdong Peng, Tao Xu
I'm sorry, I'm sorry, I'm sorry, I'm sorry
[inaudible]
Speaker Change: Thank you. We are now approaching the end of the conference call.
Speaker Change: I will now turn the call over to your host today, Ms. Siting Li, for closing remarks. Thank you once again for joining us today. If you have any further questions, please feel free to contact the Aikos Investor Relations team through the contact information provided on our website.
Speaker Change: These conclude to this call and we look forward to speaking with you next quarter. Thank you and goodbye.
[inaudible] I'm sorry, I'm sorry, I'm sorry
Speaker Change: Lei Guanlong and Hu Yufeng Zheng He and Yu Qi Zhao Xue and Zhang Shan Yang We slowly Yang Yu is all alone Stewardess becomes tired Stewardess was not alone At that moment, the Tao arrived
Speaker Change: Ho Ah Sheng, Zhou Lushan Xiao Ya Yu, Chuan Wei Liang extern, Ke Zhi Qu Yuan in, Li Xiu