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| Statement |
|---|
| Tao Xu In 2023, we did quite well in the new home business, achieving significant improvement in scale, efficiency and profitability |
| This has significantly improved our safety margins and deepened our roles in the industry |
| 2023 was a fruitful year for Beike, not just in terms of business growth, but more importantly, in our organization strength, which foster our team's deeper sense of purpose and buyer dedication in us to move forward and embrace more possibilities |
| We aim to create a virtual cycle of securing high-quality listings by establishing efficient matching tools and the cooperation between the buyers and the sellers agent to ensure they quickly sell and achieving the high customer satisfaction, leading us to secure more high-quality listings and boost our efficiency |
| This will improve financial process automation rates and bolster data analysis and possessing the ability for those business lines |
| Scale-wise, our One Body business has substantially outperformed the market, with our new initiatives are taking off |
| Even with the ongoing uncertainties in the market this year, we are set on growing our business confidence, very confident |
| We have achieved breakthroughs in at least 5 cities in terms of integrated One Body to win business model with service consolidation and end-to-end appearance optimization |
| Business involving actual environment, our performance in 2023 demonstrated remarkable resilience guided by our goal of achieving high-quality groups, our series of measures to reduce costs, enhance efficiency and mitigate risk have brought us to significant operating leverage |
| We will foster the collaboration and share management with the store owners, improving the operational environment for stores and also increasing their satisfaction with our platform |
| And number three, we'll also strengthen our infrastructure, including our new home housing dictionaries, ecosystems and online new home content development, giving our richer and higher quality new home listings, deeper customer understanding and stronger sales through capabilities |
| Overall, we achieved strong results in the turbulence market |
| We’re on solid growth with ample opportunities to meet our mark-to-market in a vast residential sector, backed by team vicinity and trust from slow battles fought together |
| These achievements were the result of improvements across our business operations |
| The revenue for the quarter increased by 20.6% year-over-year to RMB28.2 billion, between the top end of our guidance, primarily attributable to the better-than-expected performance for our new home transaction services, home renovation and emergency services |
| The synergistic development in 2023, guided by the One Body, Three Wings strategy has laid a solid foundation for our company |
| Also, service providers on our platform achieved substantively improvements in efficiency and income as well as the 44% of per store revenue increase for Lianjia stores excluding Beijing and Shanghai, and a 31% increase for connected stores on a year-over-year basis |
| In terms of technology, we have the strongest data assets and the richest offline scenarios in the living industry, digitalization and technology hold the greatest potential to solve the long-term efficiency issues for agents |
| Operationally, we establish a solid foundation on our store – our next step strategy is clear: enhancing efficiency through managing individual service capabilities varies, improving occupancy rates and profitability, and elevating service quality by various dedicated roles |
| Congratulations, first, on the solid 2023 results and improving shareholders' return |
| We have also seen great improvements in our earnings quality and operational cash flow |
| Our achievements in 2023 have given us greater safety margins and bolstered our confidence |
| Next, we maintain our solid strides in our One Body business in 2023 with some proactive actions to drive growth in the second half |
| This involves deepening our capabilities in quality, products, process innovation, technology, and supply chain management, thereby cultivating customer trust and driving future business growth |
| This helped boost our coverage of the high-quality new home projects |
| Our home renovation and furnishing business continued to grow at a fast pace, with further breakthroughs in both scale and efficiency |
| In cities where there's a solid foundation, such as Shenzhen and Hangzhou, we offer the situation where there was a solid home purchase demand |
| Our home transaction services maintained steady growth with a solid foundation |
| Our home renovation and furnishing services achieved greater breakthroughs in 2023 |
| Yes, so the business outlook for 2024, we achieved breakthroughs in scale in 2023 for our business to be successful and recognized by customers |
| Statement |
|---|
| So continued weak demand for the new homes has led to a low enthusiasm among developers to promote their projects |
| Regarding the supply side, we noticed the investors are paying attention to the number of existing home listings, concerned about the high inventory |
| So what's the reason behind? And considering that the sales of the new home has been more difficult going forward |
| Meanwhile, on the device side, with the weak demand, traditional promotional methods such as the price cards are not working anymore |
| The existing new home market shows the differentiating performance with later being affected by the risk associated with the real estate developer stat and limited effect of supply, resulting in continued weakness in supply and demand |
| For this reason, the new home market, according to CRIC, the sales of the Top 100 Developers declined 49% year-on-year in January to February, with a 50% drop in February alone |
| According to official data, national new home sales declined by 6% year-over-year, while for the new home sales of the Top 100 Real Estate developers dropped by 18% year-over-year |
| The new home market recovery fell short |
| In terms of new home transaction services, as I mentioned, the national new home market remained sluggish |
| New problems began to emerge at a faster pace, requiring a higher business sensitivity and accelerated model integration |
| Right now, the main problem regarding innovation, including construction delays and response slowness and so on, we will take a serious measures to address its pain points in 2024 |
| While falling by 1.9 percentage points quarter-over-quarter due to lower contribution margin of the existing home transaction and a smaller proportion of revenue from this business |
| GAAP operation margin was negative 0.9% compared with 2.3% from Q4 of 2022 |
| Meanwhile, this structure change contributed to a lower growth in revenue in GTV for existing home transaction services |
| The overall make of the demand for new homes also caused a prolonged inventory clearing period on supply side |
| The contribution market for the new home transaction services reached 44.5%, circling by 7.4 percentage points year-over-year, mainly attributable to the low base in the same period of 2022, where operations were nearly impossible because of the pandemic |
| For new homes, there’s a lack of demand due to the location and project issue as well as presale model and the product design, we're starting to align with the current consumers' needs |
| It did cause a lot of sacrifices internally |
| New home DSO for Q4 was only 43 days, dropping below 50 days for the first time |
| New home sales saw some mild recovery in the first quarter of last year, but then it dropped again, and has been hovering there at a very low level ever since |
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