Ke Holdings Inc (BEKE) 2022 Q4 法說會逐字稿

Hello, ladies and gentlemen. Thank you for standing by for KE Holdings, Inc.'s Fourth Quarter and Full Year 2022 Earnings Conference Call. (Operator Instructions)

女士們，先生們，您好。感謝您支持 KE Holdings, Inc. 的第四季度和 2022 年全年收益電話會議。 （操作員說明）

I would now like to turn the call over to your host, Ms. Siting Li, IR Director of the company.

我現在想把電話轉給你的東道主，公司的 IR 總監 Siting Li 女士。

Thank you, operator. Good evening and good morning, everyone. Welcome to KE Holdings or Beike's fourth quarter and fiscal year 2022 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.ke.com.

謝謝你，運營商。大家晚上好，早上好。歡迎來到 KE Holdings 或 Beike 的第四季度和 2022 財年財報電話會議。公司的財務和經營業績已在今天早些時候的新聞稿中發布，並發佈在公司的 IR 網站 investors.ke.com 上。

On today's call, we have Mr. Stanley Peng, our Co-Founder, Chairman and Chief Executive Officer; and Mr. Tao Xu, our Executive Director and Chief Financial Officer. Mr. Peng will provide an overview of our strategies and business developments and Mr. Xu will provide additional details on the company's financial results.

今天的電話會議有我們的聯合創始人、董事長兼首席執行官 Stanley Peng 先生；以及我們的執行董事兼首席財務官徐濤先生。彭先生將概述我們的戰略和業務發展，徐先生將提供有關公司財務業績的更多詳細信息。

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 Beike's earnings press release and this conference call include discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. Please refer to the company's press release, which contains a reconciliation of the unaudited non-GAAP measures to comparable GAAP measures. Lastly, unless otherwise stated, all figures mentioned during this conference call are in RMB.

在我們繼續之前，我建議您參閱我們的收益新聞稿中的安全港聲明，該聲明適用於本次電話會議，因為我們將發表前瞻性聲明。另請注意，Beike 的收益新聞稿和本次電話會議包括對未經審計的 GAAP 財務信息以及未經審計的非 GAAP 財務措施的討論。請參閱公司的新聞稿，其中包含未經審計的非 GAAP 措施與可比的 GAAP 措施的對賬。最後，除非另有說明，本次電話會議中提到的所有數字均以人民幣為單位。

With that, I will now turn the call over to our Chairman and CEO, Mr. Stanley Peng.

有了這個，我現在將把電話轉交給我們的董事長兼首席執行官 Stanley Peng 先生。

Thank you, Siting. Hello everyone. Thank you for joining Beike's fourth quarter and full year 2022 earnings conference call.

謝謝你，選址。大家好。感謝您加入北科 2022 年第四季度和全年財報電話會議。

For the past two years, the industry has faced unprecedented challenges, but every venture will pass and the spend will come as promised. In January and February, people around the country quickly emerged from the pandemic. At the same time, the various end market begins to recover. By the end of February, existing home sales on our platform had rebounded sharply, reaching a level close to the same period in 2021, the most active year for existing home transactions. Sales of new homes have also increased significantly year-over-year, returning nearly to the post-lockdown level in 2020.

在過去的兩年裡，這個行業面臨著前所未有的挑戰，但每一次冒險都會過去，付出也會如約而至。一二月份，全國人民迅速從疫情中走出來。與此同時，各類終端市場開始復蘇。截至2月底，我們平台的成屋銷售大幅回升，接近2021年同期水平，是成屋交易最活躍的一年。新房銷量也同比大幅增長，幾乎恢復到 2020 年封鎖後的水平。

As we transitioned this round of market correction, our firmly held views have been proving correct and our underlying capabilities are being validated. First, our market neutral view and persistencies in that view has been proving. As part of our digital service platform for the housing industry, professional agents must act as a counterbalance of herd mentality in up and down market cycles. This means they must not likely follow the crowd or engage in herd and not evaluate the market objectively, multi-dimensionally and rationally.

隨著我們過渡到這一輪市場調整，我們堅定的觀點被證明是正確的，我們的潛在能力正在得到驗證。首先，我們的市場中立觀點和該觀點的堅持已經得到證明。作為我們住宅行業數字服務平台的一部分，專業代理人必須在市場週期的上下波動中平衡從眾心理。這意味著他們不能隨波逐流、從眾，不能客觀、多維度、理性地評估市場。

There must be a stabilizer for the market and never magnifying anxiety. The market has been in a downward trend since the middle of 2021. But through it all, we have always believed that the consumer desire for better lead will not change and the market will return to a normalized level. We also see opportunities in the market recovery. Therefore, with a stable state of mind, we quickly managed series of employee adjustments to cope with short-term fluctuations and prepare for market recovery.

市場要有穩定器，不能放大焦慮。市場自2021年年中以來一直處於下行趨勢。但通過這一切，我們始終相信，消費者對更好鉛的渴望不會改變，市場將回歸正常水平。我們也看到了市場復甦的機會。因此，我們以穩定的心態，迅速進行了一系列人員調整，以應對短期波動，為市場復甦做好準備。

We launched our one body two wings strategy, transforming from scale expansion to quality crews and implemented a series of measures to reduce costs and enhance efficiency. We protected the commission collection and operational security of service providers on our platform, providing them with tools and capabilities in order to support them through the truth of the cycle. In addition, handlers of our management members went to the front line to help (inaudible)

啟動一體兩翼戰略，由規模擴張向優質隊伍轉變，實施一系列降本增效舉措。我們在我們的平台上保護服務提供商的佣金收取和運營安全，為他們提供工具和能力，以支持他們度過週期的真相。此外，我們的管理人員的處理人員前往前線提供幫助（聽不清）

Our market neutral view has allowed us to strengthen our muscles and watch for recovery when the market was in a downturn. Facing the current market recovery, we will continue prioritizing our market neutral view, acting as a counterbalance against the market changing behaviors. Since significant market volatility haunts the industry in the long run, we hope to facilitate a healthy and orderly market recovery.

我們的市場中立觀點使我們能夠在市場低迷時加強我們的力量並關注復甦。面對當前的市場復甦，我們將繼續優先考慮我們的市場中性觀點，作為對市場變化行為的平衡。由於長期市場波動較大，我們希望促進市場健康有序復甦。

Second, the capability of Beike as a platform have been further validated during the large market saturations. We established the Beike platform in 2018 in order to open up the capabilities we have accumulated nearly 20 years to the industry. We have constantly refined our protocols, ecosystems and digital infrastructure to further unlock the ACN network effects and the scale effort of our platform, providing support for customers, service providers and industry partners, such as developers, helping them to better interact, cooperate, learn from one another and achieve win-win results. This round of market vitality is the first major test we have experienced as a platform. We have delivered more stable profitability than before, proving our ability to expand our business, which demonstrates our strength as a digital service platform for the housing industry.

其次，北客作為平台的能力在市場大飽和的情況下得到進一步驗證。我們在2018年成立了北科平台，將我們近20年積累的能力開放給行業。我們不斷完善我們的協議、生態系統和數字基礎設施，以進一步釋放 ACN 網絡效應和我們平台的規模效應，為客戶、服務提供商和行業合作夥伴（例如開發人員）提供支持，幫助他們更好地互動、合作、學習彼此取長補短，實現雙贏。這一輪市場活力，是我們作為平台經歷的第一次重大考驗。我們已經交付了比以前更穩定的盈利能力，證明了我們擴展業務的能力，這表明了我們作為住宅行業數字化服務平台的實力。

We have also prepared the momentum needed for the industry long-term development, high-quality industries [suppliers] have been protected and stabilized. And the low quality and efficient supplies not only on our platform, but also outside of our platform has accelerated their asset, which is a good thing for the entire industry. We improved our more stable profitability. In 2022, the national existing home market GTV fell by 31% year-over-year and sales of the top 100 new home developers fell by 42% year-over-year. However, our annual non-GAAP net profit backed the trend and achieved a year-over-year increase of 24%. Our operating cash inflow grew by 135% in 2022 against the significant fluctuations in the external market. We have demonstrated the stability of profitability and power of our platform model.

我們也為行業長期發展準備好了動力，優質行業[供應商]得到保護和穩定。而低質高效的供應不僅在我們平台內，在我們平台外加速了他們的資產化，這對整個行業來說是一件好事。我們提高了更穩定的盈利能力。 2022年，全國成屋市場GTV同比下降31%，百強新房開發商銷售額同比下降42%。然而，我們的年度非 GAAP 淨利潤支持這一趨勢，實現了 24% 的同比增長。在外部市場大幅波動的情況下，我們的經營性現金流入在 2022 年增長了 135%。我們已經證明了盈利能力的穩定性和我們平台模式的力量。

We also tested our testing out our platforms with a stability. In 2022, the first year for us to advance our one body two wing strategy, our home renovation and furnishings contracted sales reached RMB 6.9 billion, increased 31% year-over-year on a pro forma basis, also backing the market trend is benefited from our network infrastructure of stores and agents, our digital transformation capabilities for low frequency, complex and heavy decision-making industries and our full integration in Shengdu in Beijing.

我們還穩定地測試了我們對平台的測試。 2022年是我們推進一體兩翼戰略的第一年，我們的家裝及家具合約銷售額達到人民幣69億元，按備考同比增長31%，也支持市場趨勢受益從我們門店和代理的網絡基礎設施，我們對低頻、複雜、重決策行業的數字化轉型能力，以及我們在北京盛都的全面整合。

Two wings accounted for more than 10% of our revenue in 2022, increasing from less than 3% in 2021, while our one body provided more than 90% of their customer leads. The ability of our platform to extend to a wide range of services around the sector of meeting has been initially validated, showcasing the high replicability of our industrial capabilities and our ability to meet more and more complex needs of our customers. This represented a solid step in our never-ending innovation and development.

到 2022 年，兩翼占我們收入的 10% 以上，而 2021 年不到 3%，而我們的一體機提供了超過 90% 的客戶線索。平台圍繞會議領域廣泛服務的能力得到初步驗證，顯示了我們產業能力的高度可複制性，以及滿足客戶越來越複雜需求的能力。這標誌著我們在永無止境的創新和發展中邁出了堅實的一步。

Third, our view on the (inaudible) of the era, our agent empowerment and the quality service has been validated. With accelerated set of low-quality and efficient supply in the industry, we expect an increase in unit store productivity in the future. The trend of large stores will become more pronounced given their wide coverage of both home listings and communities customer leads and more diversified business operations, leading to stronger risk resistance. As such, store efficiency has become a key management variable and high-quality agents are crucial to our operations. Store owners' abilities in store operations, team management as well as recruiting and energizing agents have become differentiating factors in successful operations.

第三，我們對時代（聽不清）的看法、我們的代理授權和優質服務得到了驗證。隨著行業低質高效供給加速集聚，我們預計未來單店產能將有所提升。大店化趨勢更加明顯，主播和社區客流覆蓋面廣，經營方式更加多元化，抗風險能力更強。因此，門店效率已成為關鍵的管理變量，高素質的代理商對我們的運營至關重要。店主的門店運營能力、團隊管理能力以及招攬代理的能力，已成為成功經營的差異化因素。

With respect to agent, the industry will not and should not be flat with excess capability. In the future, the industry will enter the era of the efficiency improvement of existing capability and agent empowerment. The productivity of high-level agents is 2x the industry media, which shows that the mid-level group of agents will become the most vital force in the industry in the future. We have always been and will continue to be committed to helping agent improving our efficiency, obtain (inaudible) and stable income, realized long-term employment and pride themselves of their professionalism on our platform. Therefore, we have been firmly moving forward with our large store strategy.

在代理商方面，行業不會也不應該持平產能過剩。未來，行業將進入存量能力提效和代理人賦能時代。高層代理人的生產力是行業媒體的2倍，可見中層代理人群體將成為未來行業最具活力的力量。我們一直並將繼續致力於幫助代理商提高我們的效率，獲得（聽不清）穩定的收入，實現長期就業，並以他們在我們平台上的專業精神為榮。因此，我們一直堅定地推進大店戰略。

In 2022, we supported and empowered the reorganization of over 3,000 stores on our platform. We also consistently strengthened the professional competencies of store owners. At the end of 2022, more than 6,900 store owners completed the study in our Beike Huaqiao Academy. Moreover, we build out the store and agent ranking infrastructure with competencies ranking standards, which improved the management and the operating capabilities of the platform and store owners assisted in building agent talent pipeline.

2022年，支持賦能平台3000餘家門店重組。我們還不斷加強店主的專業能力。 2022年底，已有6900多名店主在我們北科華僑學堂完成學習。此外，我們以能力排名標準構建店鋪和代理商排名基礎設施，提高了平台的管理和運營能力，並協助店主建立了代理商人才管道。

We also advanced the governance of existing and new home business conducts, resolutely cracking down on incidences of wrong behavior. We setup a comprehensive monitoring mechanism to encourage customers, business partners and platform employees to supervise and report violations such as off-platform transactions. We also fully implemented and jointly promised with new home developers that there will be no customer information leakage, customer poaching and so on and promoting the customer contact information to be private throughout the showing process. All this work to enhance security in agents operations.

推進新舊居家經營行為治理，堅決打擊不當行為發生。我們建立完善的監督機制，鼓勵客戶、合作夥伴和平台員工對平台外交易等違規行為進行監督和舉報。我們還全面落實與新房開發商的共同承諾，不會出現客戶信息洩露、客戶挖角等情況，並在放映過程中推進客戶聯繫方式保密。所有這些都是為了增強代理操作的安全性。

While the store and agent comp on our platform declined in 2022 with a number of actual stores and actual agents at around 37,400 and [3,500] respectively. The structure and efficiency of store and agents on our platform continued to improve throughout our efforts. In the fourth quarter, the proportion of 8 active stores in cities, excluding Beijing and Shanghai, increased by 5.5 percentage points year-over-year and the monthly agents true rate dropped to less than 5% for [non-lean general stores] and only 3.1% for lean general stores. Together as the group, we have gone through a difficult winter, and this experience has given us a lot of strength. Our team will be more determined than ever and become the backbone of the industry. It's also the most available assets of Beike. One who possesses a piece should have his peace of mind.

雖然我們平台上的商店和代理商收入在 2022 年有所下降，實際商店和實際代理商的數量分別約為 37,400 家和 [3,500]。通過我們的努力，我們平台上商店和代理商的結構和效率不斷提高。四季度，除北京、上海以外的8個城市活躍門店佔比同比提升5.5個百分點，【非精益綜合門店】月度代理真實率降至5%以下，精益雜貨店僅為 3.1%。作為一個團隊，我們一起度過了一個艱難的冬天，這段經歷給了我們很大的力量。我們的團隊將比以往任何時候都更加堅定，成為行業的中堅力量。這也是北科最可用的資產。擁有一件的人應該心安理得。

Turning to our [one body], our existing and new home transaction services. In 2022, we transitioned to a stage of quality growth from one-off scale expansion. We quickly adjusted our operations to improve efficiency and cut expenses, scaling down the P&L units for operation and management. With digital tools, we can check gross margin on a per order and personnel basis as well as profit for each store, which encourages business team to focus on profitability indicators as well as cultivate cost-effective mindset among managers at all levels. Driven by these initiatives, we significantly enhanced our platform's operational efficiency and optimized cost and expenses.

轉向我們的 [one body]，我們現有的和新的房屋交易服務。 2022年，我們從一次性的規模擴張過渡到有質量的增長階段。我們迅速調整經營方式，提效降費，壓減經營管理損益單位。借助數字化工具，我們可以查看每個訂單和人員的毛利率以及每個商店的利潤，這可以鼓勵業務團隊關注盈利指標，並培養各級經理的成本效益思維。在這些舉措的推動下，我們顯著提高了平台的運營效率並優化了成本和費用。

Moving to existing home transaction services. According to data from the Beike Research Institute, full year GTV of existing home sales in China were [RMB 4.93 trillion] in 2022, growing by about 31% year-over-year, a decline by about 3% year-over-year in the fourth quarter, whereas existing home transaction GTV on Beike's platform fell by only 23% year-over-year in 2022 and rose by 1.5% year-over-year in the fourth quarter.

轉向現有的房屋交易服務。北科研究院數據顯示，2022年中國成屋銷售全年GTV為【4.93萬億元】，同比增長約31%，同比下降約3%。第四季度，而貝殼平台上的現房交易GTV在2022年同比僅下降23%，第四季度同比增長1.5%。

We outperformed the industry amidst challengers. Thanks to our empowerment and the retention of high-quality store owners and agents, enhance the ACN network events, continuously deepening platform operations and increased user value delivered to end customers and business partners. For example, we reviewed our platform's lead allocation mechanisms for existing homes in 2022. The new mechanism allocates leads based on store performance scores, raising the percentage of agents mentioned with familiar home listing by 10%. It's reduced the number of uproductive actions agent to acquire leads, allow them to be more focused. And as such, agent provided customers with more professional services.

我們在挑戰者中跑贏行業。得益於我們的賦能和留住優質店主和代理商，提升ACN網絡活動，不斷深化平台運營，提升終端客戶和商業夥伴的用戶價值。例如，我們在 2022 年審查了我們平台的現有房屋線索分配機制。新機制根據商店績效分數分配線索，將提到熟悉房屋清單的代理商比例提高了 10%。它減少了代理獲取線索的生產性行為的數量，讓他們更加專注。也正因如此，代理商為客戶提供了更專業的服務。

Next, moving to new home transaction services. On the market front, according to data from National Bureau Statistics, GTV on new residential home sales in China amounted to RMB 11.7 trillion in 2022, down 28% and 27% year-over-year for the full year and the fourth quarter respectively. GTV of CRIC's top 100 real estate companies fell by 42% and 30% year-over-year in 2022 and the fourth quarter respectively. In comparison, GTV of new home sales on our platform declined by 42% year-over-year in 2022 and by 26% in the fourth quarter, while our full year GTV performance was in line with the market.

接下來，轉向新房交易服務。市場方面，國家統計局數據顯示，2022年中國新房銷售GTV為11.7萬億元，全年和四季度同比分別下降28%和27%。克而瑞房地產百強企業GTV在2022年和四季度分別同比下降42%和30%。相比之下，我們平台上新房銷售的 GTV 在 2022 年同比下降了 42%，在第四季度下降了 26%，而我們全年的 GTV 表現與市場一致。

We realized a write-back of our new home and debt provision for the year. And our DSO was the lowest, while our profitability reached a record high since our listing. This represents the excellent results of our core strategy, which is not compromising items and consumers' interest in exchange for expansion. At the same time, we proactively strengthened our risk controls, security and profitability specifically. We consistently interacted our developer risk evaluation system to manage business risk in pre-emptive way.

我們實現了今年新房和債務撥備的回記。而我們的DSO是最低的，而我們的盈利能力創下了上市以來的歷史新高。這代表了我們核心戰略的卓越成果，即不以犧牲商品和消費者的利益來換取擴張。同時，我們積極加強風控、安全和盈利能力建設。我們始終與開發人員風險評估系統進行交互，以先發製人的方式管理業務風險。

In the fourth quarter, Commission in Advance model accounted for 44% of our total commission, doubling from the beginning of the year. It ensures the security of agents' receivable collection. Moreover, the average number of homes sold by projects under the Commission in Advance model was 35% higher than general new home projects, reflecting the developers' sell-through were also accelerated. The proportion of state-owned developers continue to rise with their projects accounting for 45% of our new home revenues in the fourth quarter.

第四季度，預付佣金模式占我們總佣金的 44%，比年初翻了一番。保證代理人應收賬款的安全。此外，預付佣金模式下的項目平均售出套數比一般新房項目高出35%，反映開發商的銷售速度也有所加快。國有開發商的比例繼續上升，第四季度他們的項目占我們新房收入的 45%。

Next, moving to our two wings businesses. Over the past years, we have validated the authenticity of our strengths and capabilities in the two wings industry and further demonstrated that our two wings business are not only natural fit for our core business, but also feedback to it. 2022 was also a challenging year for the home renovation and furnishing industry. According to data from China Building Decoration Association, the total revenue of leading home renovation and furnishing companies in 2022 decreased by about 9% year-over-year.

接下來，轉向我們的兩翼業務。在過去的幾年裡，我們驗證了我們在雙翼行業的優勢和能力的真實性，並進一步證明我們的雙翼業務不僅與我們的核心業務自然契合，而且還可以對其進行反饋。 2022年對於家居裝修行業來說也是充滿挑戰的一年。中國建築裝飾協會數據顯示，2022年家裝龍頭企業總營收同比下降約9%。

Our home renovation and furnishing business generated contracted sales of RMB 6.9 billion in 2022, rising by 31% year-over-year on a pro forma basis. Among our contracted sales, 33% was attributable to core business customer referrals. On top of this, in April 2022, we launched our new retail sales of home furniture and furnishing strategy, which leverages our full service renovation offerings. New retail home furnishings contribution to our total contracted sales grew from 12% in the first quarter to 26% in the fourth quarter of 2022, further retaining the platform's business beyond low frequency transactions.

我們的家居裝修及家具業務於 2022 年實現合約銷售額人民幣 69 億元，按備考基準同比增長 31%。在我們的合約銷售額中，33% 歸因於核心業務客戶推薦。除此之外，我們於 2022 年 4 月推出了新的家居家具零售戰略，該戰略利用了我們的全方位裝修服務。 2022 年第四季度，新零售家居對我們合同總銷售額的貢獻從第一季度的 12% 增長至 26%，進一步保留了平台在低頻交易之外的業務。

With respect to our rental services, in 2022, the number of rental units managed by our home rental services exceeded 120,000 with over 17,000 units under centralized leasing management or Carefree Rent, more than 90% of this was contributed by core business customer referrals. Clearly, the mobilization and the empowerment of our core business has enabled our two wings business to substantially outperform the market. Meanwhile, the broad market space of the two wings business as well as the recognition from customers and society, gradually boosted adding professionals value, and more importantly, fresh enduring mortality into our organization, setting the stage of boundless possibilities for us to unleash our potential.

在我們的租賃服務方面，2022 年，我們的房屋租賃服務管理的出租單位數量超過 120,000 個，其中集中租賃管理或 Carefree Rent 超過 17,000 個單位，其中超過 90% 來自核心業務客戶推薦。顯然，我們核心業務的動員和賦能使我們的兩翼業務大幅跑贏市場。同時，兩翼業務廣闊的市場空間以及客戶和社會的認可，逐漸為我們的組織增加了專業價值，更重要的是新鮮的持久性，為我們提供了無限可能的舞台釋放我們的潛力.

Leveraging our digitalized transformation endurance in decision heavy industries with low transaction frequencies, complex processes and our focus on offline operations, we have been looking to reshape the home renovation and furnishing industry through digitalization and online operations. We also standardized the construction [pads] when restructuring the home renovation construction and customized furniture delivery process. We established our quality-based service, service provider management and the incentive mechanism as well as our order dispatching system as part of our scientific management capabilities.

憑藉在交易頻率低、流程複雜的決策重行業的數字化轉型能力，以及我們對線下運營的關注，我們一直在尋求通過數字化和線上運營來重塑家裝行業。我們在重組家裝施工和定製家具交付流程時，還對施工[墊]進行了標準化。我們建立了以質量為基礎的服務、服務供應商管理和激勵機制以及我們的訂單調度系統作為我們科學管理能力的一部分。

Additionally, our Home SaaS 2 will also take part in these initiatives to lead and implement the industry digital transformation. In December 2022, 80% of our orders in key cities were automatically dispatched. Our renovation delivery cycles were shortened by 5 days from previous year. And our (inaudible) service providers' retention rate reached 97%. These capabilities will help us to grow with quality. In 2022, we worked even harder to fulfill our society responsibilities and be an enterprise of the era as the only private enterprise set among the first group or affordable rental housing operations service enterprises in Chengdu.

此外，我們的Home SaaS 2也將參與這些舉措，引領和實施行業數字化轉型。 2022 年 12 月，我們在重點城市的 80% 訂單實現了自動派送。我們的裝修交付週期比去年縮短了 5 天。我們的（聽不清）服務提供商的保留率達到 97%。這些能力將幫助我們有質量地成長。 2022年，我們更加努力履行社會責任，成為成都唯一一家首批入選的民營企業或保障性租賃住房運營服務企業，成為時代企業。

We have provided more than 11,700 rental homeowners and the talent business superior leasing operation services, including leading brokerage services as of the end 2022, leaving behind a year of challenges and also the loss. We have relatively embarked on our new journey in 2023, facing the recent notable market recovery. We will maintain a consistent strategy for our core business based on our market neutral view that is on top of cost reductions, efficiency enhancement and risk controls. We will continue to deepen our operations and improve our ecosystem to capture high-quality growth opportunities.

截至2022年底，我們已經為超過11,700個出租屋主和人才業務提供了卓越的租賃運營服務，包括領先的經紀服務，留下了一年的挑戰和損失。面對近期顯著的市場復甦，我們已經相對踏上了 2023 年的新征程。我們將基於我們的市場中立觀點，在降低成本、提高效率和控制風險之上，對我們的核心業務保持一致的戰略。我們將繼續深化運營和完善生態系統，以抓住高質量的增長機會。

In 2023, we will work to enhance our long-term capabilities, which require position and continuous investment in areas such as business conduct government services and product delivery for home renovation and incremental efficiency enhancement of our existing core of agents. Through these efforts, we will seek and fill the gap between our capability and the needs of consumers and service providers, fulfilling our society responsibilities to be a great company in the heart of the society and the people. Thank you.

2023年，我們將努力提升我們的長期能力，這需要在業務行為、政府服務和家居裝修產品交付等領域的定位和持續投資，以及我們現有核心代理商的增量效率提升。通過這些努力，我們將尋求並填補我們的能力與消費者和服務提供者的需求之間的差距，履行我們的社會責任，成為社會和人民心中的偉大公司。謝謝。

Next, I would like to turn the call over to our CFO, Tao, to review our fourth quarter and full year financials.

接下來，我想將電話轉給我們的首席財務官 Tao，以審查我們的第四季度和全年財務狀況。

Thank you, Stanley, and thank you everyone for joining us.

謝謝你，Stanley，也謝謝大家加入我們。

Before discussing in more detail about our first quarter and the full year 2022 financial results, I'd like to provide a brief update on the housing market in 2022. In 2022, China housing market encountered unprecedented challenges, affected by the frequent disruptions from pandemic, macro economy softened and the customers' uncertainty around the future expectations heightened. These factors dampened buyers home purchase willingness and the ability to pay. We're also impeding transaction process.

在更詳細地討論我們第一季度和 2022 年全年的財務業績之前，我想簡要介紹一下 2022 年房地產市場的最新情況。2022 年，中國房地產市場遇到了前所未有的挑戰，受到流行病頻繁干擾的影響，宏觀經濟走軟，客戶對未來預期的不確定性加劇。這些因素削弱了購房者的購房意願和支付能力。我們也在阻礙交易過程。

Additionally, in the new home market, consumers' confidence in the housing product delivery hit a troll given the risk among the real estate developers. All of that quickly diluted the positive effects of the favorable policies, resulting in a performed and sustained market correction. Facing the predictment, we took decisive actions and seek answers from the frontline operations. Sharpening our focus on the sense of business, risk control and efficiency enhancement, we managed to achieve a strategic transformation in 2022 through high-quality growth from scale expansion. Particularly, we reported a smaller contraction in net revenue compared with the market adjustment, realized significant year-over-year gross margin increase and (inaudible) non-GAAP net income growth, effectively mitigating the impact of the macro conditions, especially in profitability and cash flow, further strengthening our leading position in the industry.

此外，在新房市場，鑑於房地產開發商的風險，消費者對住房產品交付的信心受到打擊。所有這些都迅速稀釋了利好政策的積極影響，導致市場出現持續的調整。面對預測，我們果斷行動，向一線行動尋求答案。 2022年，我們強化經營意識、風控增效，實現規模擴張高質量增長的戰略轉型。特別是，與市場調整相比，我們報告淨收入收縮幅度較小，實現了毛利率和（聽不清）非美國通用會計準則淨收入的顯著同比增長，有效減輕了宏觀條件的影響，特別是在盈利能力和現金流，進一步鞏固了我們在行業中的領先地位。

Now let's turn to the financial details for Q4. Our net revenues were RMB 16.7 billion in Q4, exceeding both the end of our guidance and Street consensus, mainly because, first, people's day-to-day life as well as existing home transaction normalized after the pandemic peak in some core Chinese cities at the end of December. Second, the existing home market in Chengdu and some cities in Yangtze River Delta performed well in Q4, leading to a year-on-year increase for [non-Lianjia] existing home revenues from the lower base in 2021.

現在讓我們來看看第四季度的財務細節。我們第四季度的淨收入為人民幣 167 億元，超過了我們的指引和華爾街共識的結束，主要是因為，首先，中國一些核心城市的大流行高峰過後，人們的日常生活和現房交易正常化十二月底。其次，成都和長三角部分城市的成都現房市場在第四季度表現良好，導致2021年[非鏈家]現房收入從較低的基數同比增長。

Third, new home sales settlement performed well in Beijing and Shanghai in Q4 under our sales conversion initiatives. In particular, our net revenues from this in-home transaction services decreased by 11.8% year-over-year to RMB 5.3 billion in Q4. Our GTV of this in-home transactions actually increased by 1.5% year-over-year in Q4 with the GTV by connected agents increased by 24.3% year-over-year in Q4. Nevertheless, we recorded our net business in revenue, while GTV from Lianjia decreased as top-tier cities took a heavier blow of COVID in Q4 and that we recorded on a gross basis in revenue.

第三，在我們的銷售轉換計劃下，第四季度北京和上海的新房銷售結算表現良好。特別是，第四季度我們來自家庭交易服務的淨收入同比下降 11.8% 至人民幣 53 億元。我們的家庭交易 GTV 在第四季度實際同比增長 1.5%，關聯代理的 GTV 在第四季度同比增長 24.3%。儘管如此，我們將淨業務記錄在收入中，而鏈家的 GTV 有所下降，因為一線城市在第四季度受到了 COVID 的較重打擊，我們在收入中記錄了毛收入。

Our net revenues from the new home transaction services decreased by 26.8% year-over-year to RMB 8.3 billion in Q4, primarily due to the decrease of new home GTV of 26.1% to RMB 263.5 billion in the period. Net revenues from the home renovation and furnishing were RMB 2.1 billion in Q4 compared to RMB 58 million in the same period of 2021, primarily because we completed the acquisition of Shengdu as well as organic growth of this line of business.

我們來自新房交易服務的淨收入在第四季度同比下降 26.8% 至人民幣 83 億元，這主要是由於同期新房 GTV 下降 26.1% 至人民幣 2635 億元。第四季度家居裝修和家具的淨收入為人民幣 21 億元，而 2021 年同期為人民幣 5800 萬元，這主要是因為我們完成了對盛都的收購以及該業務線的有機增長。

Our net revenues from emerging and other services increased by 152% year-over-year to RMB 1.1 billion in Q4, primarily attributable to the increase of net revenues from our rental property management services and financial services. Gross profit increased by 40.4% to RMB 4.1 billion in Q4. Gross margin increased to 24.4% in Q4 from 16.4% in Q4 2021. The increase was primarily due to, A, a shift of revenue mix towards its in-home transaction services and home renovation and furnishing with a relatively higher contribution margin than new home transaction services. B, higher contribution margin for both existing and new home transaction services as a result of effective cost control. And C, a relatively lower percentage of cost related to store and other costs of net revenues in Q4.

我們來自新興服務和其他服務的淨收入在第四季度同比增長 152% 至人民幣 11 億元，這主要歸因於我們的租賃物業管理服務和金融服務的淨收入增加。第四季度毛利增長 40.4% 至人民幣 41 億元。毛利率從 2021 年第四季度的 16.4% 增加到第四季度的 24.4%。增加的主要原因是，A，收入組合轉向其家庭交易服務和家庭裝修和家具，其貢獻率相對高於新房交易服務。 B，由於有效的成本控制，現有和新房交易服務的貢獻率更高。 C，第四季度與商店相關的成本和其他成本占淨收入的百分比相對較低。

Operating expenses decreased by 9.6% year-over-year to RMB 3.7 billion in Q4. General and administrative expenses decreased by 18.6% to RMB 1,792 million, mainly due to the decrease of the provision for credit loss and the personnel cost and overhead. Sales and marketing expenses were RMB 1,333 million in Q4 compared to RMB 809 million in the same period of 2021. This increase was mainly due to the consolidation Shengdu.

第四季度營業費用同比下降 9.6% 至人民幣 37 億元。一般及行政費用為人民幣 17.92 億元，下降 18.6%，主要是由於信貸損失準備以及人員成本和間接費用的減少。第四季度的銷售和營銷費用為人民幣 13.33 億元，而 2021 年同期為人民幣 8.09 億元。這一增長主要是由於合併聖都。

Research and development expenses decreased by 31.1% to RMB 509 million, mainly due to the decrease of personnel costs and share-based compensation as a result of decreased high cost. Income from operations was RMB 387 million in Q4 compared to loss from operations of RMB 1,184 million in Q4 2021. The increase in gross margin and the decrease in operating expenses have brought about the increase in operating margin to 2.3% in Q4 from negative 6.7% in Q4 2021.

研發費用下降31.1%至人民幣5.09億元，主要是高成本下降導致人員成本和股權激勵下降。 2021 年第四季度營業收入為人民幣 3.87 億元，而 2021 年第四季度營業虧損為人民幣 11.84 億元。毛利率的上升和營業費用的減少導致營業利潤率從負的 6.7% 上升至第四季度的 2.3% 2021 年第四季度。

Our non-GAAP income from operations was RMB 1,339 million with non-GAAP operating margin reached 8.0% in Q4 compared to negative 2.2% in the same period of 2021. Adjusted EBITDA was RMB 2,164 million in Q4 compared to RMB 484 million in Q4 2021. Net income was RMB 372 million in Q4 compared to a net loss of RMB 933 million in the Q4 2021. Non-GAAP net income was RMB 1,547 million in Q4 compared to RMB 42 million in the same period of 2021.

我們的非美國通用會計準則營業收入為人民幣 13.39 億元，第四季度非美國通用會計準則營業利潤率為 8.0%，而 2021 年同期為負 2.2%。調整後的 EBITDA 第四季度為人民幣 21.64 億元，而 2021 年第四季度為人民幣 4.84 億元. 第四季度淨收入為人民幣 3.72 億元，而 2021 年第四季度為淨虧損人民幣 9.33 億元。第四季度非美國通用會計準則淨收入為人民幣 15.47 億元，而 2021 年同期為人民幣 4200 萬元。

Turning to our financial detail in fiscal year 2022. Our net revenue decreased by 24.9% year-over-year to RMB 60.7 billion, while the GTV declined by 32.3% to RMB 2,609.6 billion due to the soft market sentiment and the COVID-19 disruptions. Our gross profit reported a narrower decrease of 12.9% year-over-year to RMB 13.8 billion. Gross margin increased by 3.1 percentage points to 22.7% in 2022.

談到我們 2022 財年的財務細節。由於市場情緒疲軟和 COVID-19 中斷，我們的淨收入同比下降 24.9% 至人民幣 607 億元，而 GTV 下降 32.3% 至人民幣 26,096 億元.我們的毛利同比下降 12.9% 至 138 億元人民幣。 2022 年毛利率增長 3.1 個百分點至 22.7%。

Our loss from operations was RMB 333 million in 2022 compared to a loss from operations of RMB 1.4 billion in 2021. Operating margin was negative 1.4% in 2022 compared to negative 1.7% in 2021, primarily due to a relatively higher gross profit margin, which was partially offset by the increased spending in home renovation and furnishing and emerging and other services in 2022 compared to 2021.

我們的運營虧損在 2022 年為人民幣 3.33 億元，而 2021 年的運營虧損為人民幣 14 億元。營業利潤率在 2022 年為負 1.4%，而在 2021 年為負 1.7%，這主要是由於相對較高的毛利率，這與 2021 年相比，2022 年家庭裝修和家具以及新興服務和其他服務的支出增加部分抵消了。

Non-GAAP income from operations was RMB 2.3 billion in 2022 compared to RMB 1.4 billion in 2021. Non-GAAP operating margin was 3.8% compared to 1.7% in 2021. Our net loss was RMB 1,397 million in 2022 compared to RMB 525 million in 2021. Non-GAAP net income was RMB 2,843 million in 2022 compared to RMB 2,294 million in 2021.

2022 年非美國通用會計準則運營收入為 23 億元人民幣，2021 年為 14 億元人民幣。非美國通用會計準則營業利潤率為 3.8%，2021 年為 1.7%。2022 年我們的淨虧損為 13.97 億元人民幣，而 2022 年為 5.25 億元人民幣2021 年。2022 年非美國通用會計準則淨收入為人民幣 28.43 億元，而 2021 年為人民幣 22.94 億元。

Now I'd like to highlight the following financial highlights for the full year. Firstly, China's real estate market experienced a severe adjustment in 2022. According to Beike Research Institute, this new housing market fell 31% in the year, while data from CRIC showed new home sales from the country's top 100 developers tumbled 42%. However, due to our diversified business structure and the better retention of high-quality service capacity, our annual GTV saw a milder fall of 32%.

現在我想強調以下全年的財務亮點。首先，中國房地產市場在2022年經歷了劇烈調整。根據北科研究院的數據，全年新房市場下降了31%，而CRIC的數據顯示，全國百強開發商的新房銷售量下降了42%。然而，由於我們多元化的業務結構和更好地保留優質服務能力，我們的年度 GTV 下降了 32%。

Thanks to the stronger market vision strategy of our new home and this in-home business as well as the increase in the proportion of the home renovation and furnishing services with the higher monetization rate. Our revenue declined by only 25% year-on-year, a much smaller contraction compared with the market adjustments. More encouragingly, our non-GAAP net profit saw a (inaudible) growth of 24% for the full year of 2022 on the series of the cost optimization measures. The value of the platform has supported us in achieving impressive results in profit quality management.

得益於我們新房和家居業務更強大的市場眼光戰略，以及更高貨幣化率的家居裝修和家具服務的比例增加。我們的收入同比僅下降了 25%，與市場調整相比下降幅度要小得多。更令人鼓舞的是，由於一系列成本優化措施，我們的非 GAAP 淨利潤在 2022 年全年增長了 24%（聽不清）。平台的價值支撐我們在利潤質量管理上取得了驕人的成績。

Secondly, our one body business, which is the home construction services, delivered a strong performance in profitability and financial health and achieved remarkable results in cost and expense optimization. In terms of the cost control, the fixed cost of our one body business fell by over 1/3 year-on-year in Q4 and the variable cost as a percentage of revenue dropped around 6 percentage points year-over-year.

其次，我們的整體業務，即房屋建築服務，在盈利能力和財務健康方面表現強勁，並在成本和費用優化方面取得了顯著成果。在成本控制方面，四季度我們一體式業務的固定成本同比下降超過1/3，可變成本佔收入的比例同比下降約6個百分點。

In face of the market downturn, we also made a forcible measures to scale down the P&L unit for operation management, encouraging the business team to focus on the profitability indicators through the performance evaluations. For Lianjia, we made a considerable effort in 2022 to deepen this operation and achieve notable results. Proportion of loss-making stores declined by 7 percentage points in 2022 from 2021. On the Lianjia to connected stores, agent productivity ratio in cities, excluding Beijing and Shanghai, increased to 1.3% in 2022 versus 1.2% in 2021.

面對市場低迷，我們也採取了強行壓減經營管理損益單元的措施，通過績效考核鼓勵業務團隊關注盈利指標。鏈家方面，我們在2022年下了很大功夫，深化運營，取得了顯著成效。 2022 年虧損門店佔比較 2021 年下降 7 個百分點。從鏈家到關聯門店，除北京和上海外的城市代理生產率從 2021 年的 1.2% 上升至 2022 年的 1.3%。

The adjusted improvement in agent compensation and efficiency also helped reduce our cost. In addition, in 2022, we continue to expand strategic collaborations with the state-owned developers with purchase from those partnerships accounting for 45% of our sales in Q4, rising from 28% in Q1. The proportion was 41% for the full year of 2022. On top of this trend, we still managed to have a new home acquisition rate increase moderately in 2022.

代理人薪酬和效率的調整改進也有助於降低我們的成本。此外，到 2022 年，我們將繼續擴大與國有開發商的戰略合作，從這些合作夥伴購買的商品占我們第四季度銷售額的 45%，高於第一季度的 28%。 2022 年全年這一比例為 41%。除此趨勢外，我們仍設法在 2022 年實現了新房購置率的適度增長。

Although the profitability of our in-home transaction services saturated quarter-over-quarter due to the pandemic impact, on a full year basis, the contribution margin of its in-home business reached 39.8%, up 2.8 percentage points from 2021 driven by stronger operating leverage due to the fixed cost optimization and higher revenue contribution from platform services. As our revenues from this in-home service continues to expand, we expect this business while input further in profitability.

儘管受疫情影響，到家交易業務的盈利能力環比飽和，但全年來看，到家業務的貢獻率達到39.8%，較2021年上升2.8個百分點。由於固定成本優化和平台服務的更高收入貢獻，經營槓桿。隨著我們從這項上門服務中獲得的收入不斷擴大，我們預計這項業務在進一步投入盈利能力的同時。

In the full year for 2022, the contribution margin of new home transaction services reached 23.6%, up 4.4 percentage points from 2021, mainly driven by the increased percentage of high profitability projects and a significant fixed cost reductions, validating our strategy of strictly balancing risk and profits in a high volatile market. In particular, new home contribution margin climbed to 26.2% in Q4, keeping another record high since our listing, supported by incremental improvements in the new home market in some high-tier cities. With the increase in its in-home and new home contribution margin, our gross margin for the full year of 2022 responded notably to 22.7%, up 3.1 percentage points year-over-year.

2022年全年新房交易服務貢獻率達到23.6%，較2021年上升4.4個百分點，主要受高盈利項目佔比提升和固定成本大幅下降的推動，嚴格平衡風險策略得到驗證和高波動市場中的利潤。特別是，在部分一線城市新房市場逐步改善的支持下，第四季度新房貢獻率攀升至 26.2%，再創上市以來新高。隨著住宅和新房貢獻率的提高，我們 2022 年全年的毛利率顯著上升至 22.7%，同比上升 3.1 個百分點。

Thirdly, in terms of the operating expenses, while maintaining our investment in new business, including home renovation and furniture, our total non-GAAP expenses in 2022 declined by 20% year-over-year to RMB 11.8 billion. The productivity of the platform operation teams in terms of their support to frontline agents increased by 20% year-over-year end of 2022.

第三，在運營費用方面，在保持我們對新業務（包括家居裝修和家具）的投資的同時，我們 2022 年的非美國通用會計準則總費用同比下降 20% 至人民幣 118 億元。到2022年底，平台運營團隊對一線代理的支持效率同比增長20%。

For new home business, we continue to promoting Commission in Advance model to ensure more secure commission collected by platform and agents and speed up the project sell-through. Commission in Advance accounted for 44% of our total commission in Q4, up from 20% in Q1. In Q4, Commission in Advance accounted over 36% of commissions from state-owned developers and 49% of that from private developers.

對於新房業務，我們繼續推廣預付佣金模式，確保平台和代理商收取的佣金更加安全，加快項目銷售。預付佣金占我們第四季度總佣金的 44%，高於第一季度的 20%。第四季度，預付佣金佔國有開發商佣金的 36% 以上，佔私營開發商佣金的 49%。

Under such efforts, in 2022, we had a better provision written-back of RMB 206 million for the new home business and RMB 21 million for the whole group compared with a better provision of RMB 1.3 billion in Q1. Just to reflect our principle of adopting most prudent accounting treatment, while oversizing the treatments on the risk management with a sharp focus on receivable collections and improving the sense of the security of agents.

在這樣的努力下，2022 年，我們的新房業務和整個集團的準備金分別回撥了 2.06 億元人民幣和 2100 萬元人民幣，而第一季度的準備金為 13 億元人民幣。只是為了體現我們採用最審慎會計處理的原則，同時在風險管理上加大處理力度，突出應收賬款，提高代理人的安全感。

Fourthly, our home renovation and furnishing business has gained considerable traction, benefiting from powerful synergies between Beike and Shengdu, our pro forma revenue for 2022 amounted to RMB 6.2 billion. Revenue totaled RMB 2.1 billion in Q4, up 13% quarter-over-quarter. Specifically, full year contract sales in Hangzhou and Beijing exceeded RMB 1 billion with Hangzhou achieving city level profitability and Beijing breakeven in the second half of 2022.

第四，我們的家裝業務取得了可觀的發展，受益於北科和盛都強大的協同效應，我們2022年的預估收入達到人民幣62億元。第四季度總收入為人民幣 21 億元，環比增長 13%。其中，杭州和北京全年合同銷售額均超過10億元，杭州實現市級盈利，北京2022年下半年實現盈虧平衡。

Our leading growth in these top cities demonstrate our ability to achieve the fast break-throughs in scale during the dry cell stage, while making notable improvements in profitability. Aided by our total supply chain build-out, product delivery and digitalization capabilities, we are confident that we will accomplish the high quality function in most cities.

我們在這些頂級城市的領先增長表明我們有能力在乾電池階段實現規模的快速突破，同時盈利能力也有顯著提升。借助我們的整體供應鏈建設、產品交付和數字化能力，我們有信心在大多數城市完成高質量的功能。

Fifthly, our cash position and cash flow remained robust and sufficient and we have a strong capital management. At the end of 2022, the combined balance of cash, cash-like items totaled RMB 78.3 billion or USD11.4 billion, up by RMB 1.1 billion from end of September and RMB 7.3 billion from end of 2021. Among which, the combined balance of our cash, cash equivalents, restricted cash and short-term investment was RMB 51.1 billion. The balance of our long-term cash-like items that included in the long-term investments amounted to RMB 70.2 billion.

五是現金狀況和現金流保持穩健充裕，資本管理能力強。 2022年末，現金及現金類項目餘額合計783億元人民幣或114億美元，較9月末增加11億元人民幣，較2021年末增加73億元人民幣。其中，合併餘額現金、現金等價物、受限制現金及短期投資511億元。本行計入長期投資的長期現金類項目餘額702億元。

Our net operating cash flow was RMB 2.6 billion in Q4, remaining positive for the fifth quarter in a row. Moreover, we have a zero deposit in (inaudible) and Credit Suisse. We have maintained a steadfast commitment to risk control and receivable management. Cash collection from new home business has exceeded the new home revenue for 6 quarters in a row, totaling RMB 35.9 billion for the full year with cash to revenue ratio at 1.25. New home DSO was at 64 days in Q4, shortening by 14 days from Q3 and 28 days from the same period of 2021.

我們第四季度的淨經營現金流為人民幣 26 億元，連續第五個季度保持正數。此外，我們在（聽不清）和瑞士信貸的存款為零。我們一直堅定不移地致力於風險控制和應收賬款管理。新房業務現金回籠連續6個季度超過新房收入，全年總計359億元，現金收入比為1.25。第四季度新房 DSO 為 64 天，比第三季度縮短 14 天，比 2021 年同期縮短 28 天。

Turning to the guidance of the first quarter of 2023. We expect total net revenues to be between RMB 18.0 billion to RMB 18.5 billion in Q1, representing an increase of approximately 43.4% to 47.4% from the same period of 2022. This forecast consists of potential impact of the recent real estate-related policies, the macro economy recovery status as well as release of the pent-up demand in 2022. It constitutes current and preliminary view on our business situation and market conditions, which are subject to change.

轉向 2023 年第一季度的指引。我們預計第一季度總淨收入將在人民幣 180 億元至人民幣 185 億元之間，比 2022 年同期增長約 43.4% 至 47.4%。該預測包括近期房地產相關政策的潛在影響，宏觀經濟復甦狀況以及2022年被壓抑的需求釋放。它構成了我們對業務狀況和市場狀況的當前和初步看法，可能會發生變化。

Entering Q4 of last year, policy relief initiatives were rolled out on a large scale on both supply and demand side. In early December, COVID-19 curves were optimized, and since then, infection have quickly picked out, driving an opportunity in market. Notably, since the beginning of this year, home prices added sequential decline, transactions started to rebound. We think this should be viewed rationally and objectively.

進入去年四季度，供需雙方都在大規模出台政策性舉措。 12 月初，COVID-19 曲線得到優化，此後感染迅速出現，推動了市場機會。值得注意的是，今年以來，房價環比回落，成交開始回升。我們認為應該理性、客觀地看待這一點。

The recent uptick can be attributed to 2 factors. One, the higher sales volume partly generated by the released pent-up demand once the pandemic situation eased, which further illustrates that the housing demand can only be defaulted not eliminated. The other reason is that the market expectation has gradually improved against the backdrop of macroeconomic recovery and the success in introduction of supportive policies.

最近的上漲可歸因於兩個因素。一是疫情緩解後積壓的需求得到釋放，導致銷量上升，進一步說明購房需求只能違約，不能消除。另一個原因是在宏觀經濟復甦和支持政策成功出台的背景下，市場預期逐漸改善。

As an eventful 2022 passed in the week of numerous unexpected shocks, demand policy in this year will be priced forward with a pragmatic approach to promote economic recovery and the revised the market confidence. Supporting the house upgrade is on the top of initiatives for expanding domestic demand. As an enterprise, we will remain equally practical and rational and always uphold market neutral view, that is steady long-term market development is aligned with the fundamental interest of the consumers, the government and the industry. It has been and will continue to be our belief that the industry enduring value is built up on stable transaction volume and prices rather than fluctuations. As market stability leads to sustainable transactions, which accentuate the value of agents and agents should be the counterforce to the market's ups and downs. This is our social responsibility as well as professional dignity.

2022年在充滿意外衝擊的一周過去了，今年的需求政策將以務實的方式推動經濟復甦，並修正市場信心。支持住房升級是擴大內需的重中之重。作為企業，我們將同樣務實、理性，始終堅持市場中立的觀點，即市場的長期穩定發展符合消費者、政府和行業的根本利益。我們一直並將繼續相信，行業持久的價值建立在穩定的交易量和價格而非波動之上。由於市場穩定導致可持續交易，這突出了代理商的價值，代理商應該是市場起伏的反作用力。這是我們的社會責任，也是職業尊嚴。

In 2023, our one body two wings strategy will drive more diversified developments and the continued securities function, which post a higher requirement for our operational stability, resources allocation and profitability. As such, our financial strategy will remain focused on the sense of business operations on the basis of optimized cost expense structure in 2022. This year, we will reap profits from efficiency of our business goals and continue to improve the service quality. At the same time, we will continue to strictly control the risks, balance the relationship between the efficiency, receivable collection and the skill growth and promote cooperation with upstream and downstream under the condition of safe accounts receivable.

2023年，我們的一體兩翼戰略將推動更加多元化的發展和持續的證券功能，這對我們的經營穩定性、資源配置和盈利能力提出了更高的要求。因此，2022年我們的財務戰略將在優化成本費用結構的基礎上，繼續以業務運營為中心。今年，我們將在業務目標的效率中獲得收益，並繼續提高服務質量。同時，我們將繼續嚴控風險，平衡好效率、應收賬款回款與技能成長的關係，在應收賬款安全的前提下，推進與上下游的合作。

Under the neutral market view, we are fully confident in the housing market's stable development in the long run. This does not provide a stable environment for our long-term development, but also offers a great opportunity for us to further elevate the quality of our operations. Going forward, we will continue to forward to head with the enduring strength in our hearts and face hard headwinds with the tenacity and optimism, powered by our relentless pursuit of creating [expensable] value for the box-leading service sector and our specialty. That concludes my prepared remarks. We would like now to open the call to your questions. Operator, please go ahead.

在中性的市場觀點下，我們對房地產市場的長期穩定發展充滿信心。這不僅為我們的長遠發展提供了穩定的環境，同時也為我們進一步提升經營質量提供了良機。展望未來，我們將以不懈追求為領先的服務行業和我們的專業創造價值的不懈追求，繼續以內心持久的力量向前邁進，以堅韌和樂觀的態度面對艱難的逆風。我準備好的發言到此結束。我們現在想打開您的問題的電話。接線員，請繼續。

Thank you. (Operator Instructions) Today's first question comes from Timothy Zhao with Goldman Sachs.

謝謝。 （操作員說明）今天的第一個問題來自高盛的 Timothy Zhao。

Congratulations on the strong results to end of the year. My question is on the industry outlook. Could management share your updated outlook for the existing home and new home market for '23? And especially related to the strong growth of the existing home volume in China over the past 2 months, could you share some color on how much about the rebound is from the pent-up demand? And how sustainable do you think is the current run rate in the existing home market?

祝賀您在年底取得的優異成績。我的問題是關於行業前景。管理層能否分享您對 23 年現房和新房市場的最新展望？特別是與過去 2 個月中國現房量的強勁增長有關，您能否分享一些關於被壓抑的需求反彈的顏色？您認為現有房屋市場目前的運行率有多可持續？

Regarding the recent market performance to the uncertainty caused by COVID-19, we see this, the Chinese resident mortality has a shift back to the pursuit of the wealth, security and growth from precautoinary saving and risk aversion. In terms of the real state policies, there were over 1,000 similar policies released across country in 2022 compared to roughly 450 tightening policies into year of 2021. As a result, support for market recovery is accumulating, we saw increased policy support in December and January, with almost the strong second-tier cities, loosening their home purchase and mortgage restrictions. Among cities, for example, Dongguan and Foshan implemented the full relaxation. [2010], this policy change has a support of bolting out in the market. According to recent real estate market data, consumer sentiment towards the housing market also has significantly improved on the demand side.

關於近期市場對COVID-19帶來的不確定性的表現，我們看到，中國居民死亡率已經從預防性儲蓄和風險規避轉向追求財富、安全和增長。實體政策方面，2022 年全國出台 1000 多條類似政策，2021 年約 450 條收緊政策。因此，對市場復甦的支持正在積累，我們看到 12 月和 1 月政策支持力度加大，與強二線城市幾乎一樣，放寬了購房和房貸限制。以東莞、佛山等城市為例，實施了全面放寬。 [2010]，這一政策變化具有市場脫銷的支撐。從近期的房地產市場數據來看，需求端的消費情緒也明顯好轉。

For existing home sales, weekly transaction on our platform before the Chinese New Year holiday in January were close to those in July 2021. And the monthly is in-home GTV, our platform in February was close to the historical high in March 2021. Among that, the GTV of Tier 1 cities in February was just 8.6% lower than the peak of March 2021, while the GTV for the stronger Tier 2 cities and the weaker Tier 2 cities plus Tier 3 and Tier 4 cities grew 11.3% and 5.5% from the 2021 peak, respectively. Particularly, stronger Tier 2 cities showed a strong momentum with the Chengdu, Suzhou, Nanjing, Zhengzhou and Tianjin all exceeded the high point of March 2021 by 20%. This strength was partly due to the onetime release of the pent-up demand accumulated during the pandemic.

對於成屋銷售，我們平台在 1 月份農曆新年假期前的周交易量接近 2021 年 7 月的交易量。月度是在家 GTV，我們平台 2 月份的成交量接近 2021 年 3 月的歷史高位。其中，2 月份一線城市的 GTV 僅比 2021 年 3 月的峰值低 8.6%，而強二線城市和弱二線城市加上三四線城市的 GTV 分別增長了 11.3% 和 5.5%分別從 2021 年的峰值開始。尤其是強二線城市表現強勁，成都、蘇州、南京、鄭州、天津均超過2021年3月高點20%。這種力量部分是由於大流行期間積累的被壓抑的需求的一次性釋放。

For new home sales, it has also demonstrated a notable recovery trend. Our new home subscription growth turned positive in January, growing 20% year-over-year. In February, our new home subscription increased by 148% year-over-year from the lower base in 2022, reaching the level of June 2021, driving a year-on-year new home sales growth since February of this year.

新屋銷售也呈現出明顯的複蘇趨勢。我們的新房訂閱增長在 1 月份轉正，同比增長 20%。 2 月份，我們的新房認購量較 2022 年較低的基數同比增長 148%，達到 2021 年 6 月的水平，推動了今年 2 月以來的同比新房銷售增長。

Regarding housing prices, despite very strong momentum in transaction volume, fortunately, we haven't seen significant fluctuation in housing prices. In January, prices for both existing and new home ended a long state of the monthly decline across the country. And in February, existing home price grew 1.6% quarter-over-quarter, but it still posted a year-over-year decline of 5%, as the increased number of customer visits to our homes were upgrading demand amid relaxed government policies this year. The number of (inaudible) hitting home nationwide grew 10% year-over-year. The ample existing home listing keeps the market supply and demand relatively balanced.

在房價方面，儘管成交量的勢頭非常強勁，但幸運的是，我們沒有看到房價出現大幅波動。 1月份，全國二手房和新房價格結束了長期的月度下跌狀態。而2月份成屋價格環比上漲1.6%，但仍同比下跌5%，原因是今年政府政策放寬，來訪客戶增加，需求升級.全國（聽不清）回家的人數同比增長 10%。充足的現房掛牌使市場供需保持相對平衡。

We still hold the neutral market view. The recent rebound in transaction volume demonstrates the housing market high resilience and elasticity on the demand side. This strong change rebound was driven by several factors, including normalized transaction demand, onetime covering of the accumulated pent-up demand during the pandemic that flares up and even earlier release of the future purchase needs from the customers who are concerned with the potential housing price run. These factors led to the sales volume being built up within a very short time.

我們仍然保持中性的市場觀點。近期成交量的回升，體現了房地產市場在需求端的高韌性和彈性。此次強勁的變化反彈是由多方面因素推動的，包括交易需求常態化、疫情期間積壓需求的一次性回補，以及關注潛在房價的客戶未來購房需求的提前釋放。跑步。這些因素導致銷售量在很短的時間內建立起來。

Speaking to a market neutral view, we believe the market will gradually normalize and will enter into a more stable growth stage over the long run. Since March, we have also noticed that the weekly transaction volume of existing and new home subscriptions on platform began to steadily normalize. Regarding the future market in terms of the market sustainability based on our analysis of top 30 cities, we view that market to be relatively stable in the future for fourth-tier cities.

從市場中性的角度來看，我們認為市場將逐漸正常化，長期來看將進入一個更穩定的增長階段。 3月以來，我們也注意到平台現有和新房訂閱的每週交易量開始穩步正常化。關於未來市場，根據我們對前 30 名城市的市場可持續性分析，我們認為四線城市未來市場相對穩定。

The average floor space of the house transact and the home buyers demographic since this year was very similar to the prior 3 years. These transactions have been driven mainly by the home upgrade and the ready demand for the property within the floor area of 90 square meters. In addition, the distribution of purchase by local and nonlocal residents has also been stable. For second tier cities, home upgrade demand was significantly stimulated just drove a 3% increase in share of transacted house over 90 square meters and a 5% increase in percentage of customer age over 35 and a 4% increase in percentage of nonlocal homebuyers. Going forward, such market metrics might experience volatilities in the short term due to the structural change. Nevertheless, with the nonlocal taking root in the cities, more supportive policies and stabilizing housing prices, home upgrade demand from the local resident might follow up and might bring solid demand support and help the market stabilize in the long run.

自今年以來，房屋交易的平均建築面積和購房者人口統計與前 3 年非常相似。這些交易主要受住宅升級和對90平方米以內物業的現成需求推動。此外，本地和外地居民的購買分佈也保持穩定。在二線城市，家居升級需求得到顯著刺激，僅帶動 90 平方米以上的成交份額增加 3%，35 歲以上的客戶比例增加 5%，外地購房者的比例增加 4%。展望未來，由於結構性變化，此類市場指標可能會在短期內出現波動。不過，隨著外地人紮根城市、更多扶持政策和房價企穩，本地居民的家居升級需求或將跟進，或將帶來堅實的需求支撐，有助於市場長期企穩。

For existing home market in 2023 based on our neutral market view, we prudently believe that the in-home market will grow by around 15% year-over-year in 2023, where prices remain relatively stable. We believe there is plenty of upside for the market given the transaction unit of the existing and the new home in China accounted only for 3.5% of the total number of existing homes in 2022. And the [transactional] rate for its new homes was only 0.7% versus the normal rate, at least 1% historically. We need to consider the potentially unfavorable factors, such as the impact from the global economy slowdown, growing geopolitical tensions and muted export growth on the macro economy and housing demand.

對於 2023 年的現房市場，基於我們中性的市場觀點，我們謹慎地認為 2023 年自住市場將同比增長 15%左右，價格保持相對穩定。鑑於 2022 年中國現房和新房的交易單位僅佔現房總數的 3.5%，我們認為市場有很大的上行空間。而且其新房的 [交易] 率僅為0.7% 與正常利率相比，歷史上至少為 1%。我們需要考慮潛在的不利因素，例如全球經濟放緩、地緣政治緊張局勢加劇以及出口增長放緩對宏觀經濟和住房需求的影響。

For new home market in 2023, we expect the total GTV of the market in 2023 to remain at the same level as in 2022. Housing project delivery has become less of a concern for consumers with the deployments of the financing policies for developers and the improvement of their funding status as well as gradually resumption of the project construction. In the meantime, with the price stabilizing, home upgrade demand will return back to its new home market. The new home market recovery will further ease relative to developers cash flow constraints. Recently, land auction went well in the city like Hangzhou and Suzhou where several private developers appear on the land auctions list. Private developer renewed in (inaudible) but land auction in more areas is also a critical indicator.

對於 2023 年的新房市場，我們預計 2023 年市場總 GTV 將與 2022 年持平。隨著開發商融資政策的出台和改善，住房項目交付已不再是消費者關注的焦點他們的資金狀況以及項目建設的逐步恢復。同時，隨著價格趨穩，家居升級需求將回歸新房市場。新房市場復甦將進一步緩解相對於開發商現金流的限制。近期，杭州、蘇州等城市的土地拍賣進展順利，多家民營開發商出現在土地拍賣名單上。私人開發商續約（聽不清），但更多地區的土地拍賣也是一個關鍵指標。

Over the past few years, China's housing market has seen great highs and lows. Looking back, certain uncertainties are inevitable, and we mustn't be overly optimistic or pessimistic about the sub trends. Yet as we navigate through the highs of market volatility and cycles, our unwavering belief in the long-term outlook for the China housing market remains steadfast. We firmly believe that against the backdrop of the housing (inaudible) regulation, the existing home market will increasingly take center stage, while new home operations demand among refined approach as (inaudible) service will come to the forefront. The time forces change this approach. Thank you, Timothy.

在過去的幾年裡，中國的房地產市場經歷了高潮和低谷。回過頭來看，一定的不確定性在所難免，對子趨勢既不能過度樂觀，也不能過度悲觀。然而，在我們渡過市場波動和周期的高潮時，我們對中國房地產市場長期前景的堅定信念依然堅定。我們堅信，在住房（聽不清）調控的背景下，現房市場將越來越成為中心舞台，而精細化方式（聽不清）服務中的新房運營需求將走上前列。時間的力量改變了這種方法。謝謝你，蒂莫西。

And our next question today comes from Harry Chen with Citigroup.

我們今天的下一個問題來自花旗集團的 Harry Chen。

And this is Harry Chen from Citigroup. Thanks management for the question opportunity and also congratulations on the very solid results for the fourth quarter and also for the whole year. So my question would be that both the new home and existing home markets will be entering a healthier and a more stable development stage in 2023. Can management share with us whether the company will dynamically adjust its strategies in response to changing market conditions, such as channel expansion to gain more market share? Where are you targeting markets this year? And will you expand through Lianjia or online just stores? What is expansion strategy in markets where you have relatively low market share, such as Shanghai, [indiscernible[and Fujian? And how will you deal with the competition with the local leaders?

這是來自花旗集團的 Harry Chen。感謝管理層提供提問機會，並祝賀第四季度和全年取得的非常穩固的結果。所以我的問題是，2023 年新房和現房市場都將進入更健康、更穩定的發展階段。管理層能否與我們分享公司是否會根據不斷變化的市場條件動態調整其戰略，例如渠道擴張以獲得更多市場份額？您今年的目標市場在哪裡？你會通過鏈家或在線商店進行擴張嗎？在上海、[音頻不清晰[和福建等市場份額相對較低的市場，擴張策略是什麼？您將如何應對與當地領導的競爭？

Our view on the market share is we don't operate with market share as our KPI. The management team has always been adhering to the core principle of taking care of the customers and helping service providers to be good to customers. Nevertheless, we must reach a certain skill threshold citywide to realize the network (inaudible) of our core business. and to fully benefit from the extensibility of our agents and store network as infrastructure around the leading services. Therefore, we need to pay attention to skill and the need to achieve the sufficient skill through connecting and empowering our connected store and agents. For its in-home transaction services, this round of massive market correction has presented us with opportunities to secure faster, and we anticipate a greater number of customers while enjoyed quality service offered by Beike this year. In past 2 years, the market correction was long and deep, resulting in significant industry supply side reductions in various regions. Still, we have better capacity retention, the number of active agents in 25 key cities even increased year-over-year at the end of 2022. Moreover, we have focused on retaining high-quality agents, which also to benefit more from the market rebound during the recovery cycle. Specific initiatives in different cities. For our top-performing cities, we will continue to explore the opportunity in specific market segments such as middle to high-end market, suburban market, et cetera. in the cities with a competitive environment, we saw a business responder at a relatively fast pace starting in the second half of last year as our better capacity retention, our business conduct governance, our focused operations and our community as per training generated remarkable results. We have even bigger opportunities in the cities where there's still a lot of room for improvement in our skill and the market is relatively fragmented. For example, in Shanghai, our trading on the market, our market penetration is still significantly lower in Beijing. To expand our business into cities, we will actively implement a series of initiatives such as establishing more connections to the high-quality service providers investing in our brand and service quality and strengthening operational efficiency.

我們對市場份額的看法是，我們不以市場份額作為我們的 KPI。管理團隊一直秉承以照顧客戶為核心，幫助服務商對客戶好。儘管如此，我們必須在全市範圍內達到一定的技能門檻，才能實現我們核心業務的網絡化（聽不清）。並充分受益於我們的代理商和商店網絡作為領先服務基礎設施的可擴展性。因此，我們需要關注技能，並需要通過連接和授權我們連接的商店和代理商來獲得足夠的技能。對於其家庭交易服務，這一輪大規模的市場調整為我們提供了更快獲得機會的機會，我們預計今年將有更多的客戶享受貝科提供的優質服務。近兩年，市場回調時間長、深度大，導致各地行業供給側明顯下降。儘管如此，我們有更好的能力保留，25個重點城市的活躍代理人數在2022年底甚至同比增長。此外，我們專注於保留優質代理，這也將更多地從市場中受益在恢復週期中反彈。不同城市的具體舉措。對於我們表現最好的城市，我們將繼續探索特定細分市場的機會，例如中高端市場、郊區市場等。在競爭激烈的城市，我們看到業務響應者從去年下半年開始以相對較快的速度出現，因為我們更好的能力保留、我們的業務行為治理、我們的重點運營和我們的社區根據培訓產生了顯著的成果。在我們的技能仍有很大提升空間且市場相對分散的城市，我們有更大的機會。比如在上海，我們在市場上交易，我們的市場滲透率在北京還是要低很多。為了將我們的業務擴展到城市，我們將積極實施一系列舉措，例如與優質服務提供商建立更多聯繫，投資於我們的品牌和服務質量，以及提高運營效率。

Regarding new home concerned services. This year, we will persistently advertise the risk aversion as a top priority as we did in the year of 2022 and 2021. We were not proactively loosening our risk controls or compromise business security, especially the security of agents' receivable collection in exchanges, so-called platform scale expansion, but we will also make a dynamic adjustment depending on the market and the recovery of the developers. As (inaudible) cash flow situation improves, the receivable payment tours will improve as well, which will lead to the upgrade they're reaching in [Beike] credit ranking system. That improved credit ranking will allow us to respond our cooperation and the addressable market for our new home transaction services may also respond. Meanwhile, new home channel sales market has seen significant increase in concentration in the recent bounce of market correction. Our better and safer receivable collection and health of new home business conduct gain the trust from a large number of service providers and agent on the sectors. The connect with [ACA] and the (inaudible) channel, becoming the cornerstone of the continued function of our new home transaction services as the market recovers.

關於新房相關服務。今年我們會像2022年和2021年一樣，堅持把規避風險作為重中之重。我們沒有主動放鬆風險控制，也沒有損害業務安全，尤其是代客在交易所的應收賬款安全，因此， - 稱為平台規模擴張，但我們也會根據市場和開發者的恢復情況進行動態調整。隨著（聽不清）現金流狀況的改善，應收款項旅行也會有所改善，這將導致他們在 [Beike] 信用評級系統中達到升級。信用評級的提高將使我們能夠對我們的合作做出回應，我們新的家庭交易服務的目標市場也可能會做出回應。同時，新房渠道銷售市場在近期市場回調反彈中，集中度明顯提升。我們更好、更安全的應收賬款催收和健康的新房經營行為贏得了行業內眾多服務商和代理商的信賴。隨著市場復甦，與 [ACA] 和（聽不清）渠道的連接成為我們新房交易服務繼續發揮作用的基石。

And our next question today comes from Jiong Shao with Barclays.

我們今天的下一個問題來自巴克萊銀行的邵炯。

And let me add to my congratulations on the very strong results and the guidance. And you talked about improving efficiencies of your agents and of your stores. I was just wondering, could you talk about your target, if you have any for the stores and agents for this year? And you have already improved their productivity quite a bit last year, how can you improve the productivity further from here while sort of not losing the very strong cultural and the performance element of the equation?

讓我對非常好的結果和指導表示祝賀。你談到了提高代理商和商店的效率。我只是想知道，你能談談你的目標嗎，如果你有今年的商店和代理商？去年你已經大大提高了他們的生產力，你怎麼能從這裡進一步提高生產力，同時又不失去等式中非常強大的文化和績效元素？

Overall, we have no plans for significant function for our stores and agents. As we mentioned last quarter, our focus is on improving per-store and per-agent efficiency while enhancing the agent income rather than pursuing a large scale function. This approach will not change. Only when the income of stores and agents increase steadily as the industry retain high-quality people and achieve healthy development. Furthermore, given the current trend of balanced supply and demand market and the broader emphasis on the housing is for the mean of speculation, we do not anticipate a significant increase in industry capability following this market recovery. Our plans for the agent and stores this year including foreign, regarding the scale store-wise, we plan to focus on the large and high-quality stores and the drive the onboarding of (inaudible) stores for new home sales to our platform as connect stores. Agent-wise, we plan to recruit agents during the spring recruiting season in 2023, after which, we expect to maintain a stable agent count. This is increasing of the proportion of middle level agents and the increasing the number of agents in a few cities, which need skills function.

總的來說，我們沒有計劃讓我們的商店和代理商發揮重要作用。正如我們上個季度提到的，我們的重點是提高每家商店和每家代理商的效率，同時提高代理商收入，而不是追求大規模的功能。這種做法不會改變。只有門店和代理商收入穩步增長，行業才能留住高素質人才，實現健康發展。此外，鑑於目前市場供需平衡的趨勢以及更廣泛的強調住房是為了投機，我們預計市場復甦後行業能力不會顯著增加。我們今年的代理商和門店計劃，包括國外，就門店規模而言，我們計劃專注於大型優質門店，並推動（聽不清）新房銷售門店加入我們的平台，作為連接商店。代理方面，我們計劃在 2023 年春招期間招募代理，此後，我們預計將保持穩定的代理數量。這是中層代理人比例的增加，少數城市代理人數量的增加，需要技能發揮作用。

Regarding the cost and efficiency, let me talk about the store productivity first. In 2023, we expect to see a significant improvement in store productivity as a result of our ongoing efforts in large store and agent ranking system with conduct governance and (inaudible). We are committed to improving the management on loss-making and inefficient stores, and we believe that the inefficiency could be temporary. Regarding the agent productivity, the general agent productivity has a huge room to improve in the long run. Beijing could be a benchmark where our agent productivity is 3 to 4x higher than the industry average. For Lianjia, in 2022, excluding Beijing and Shanghai, Lianjia's agent productivity was 1.3x that of connected agents and our target this year is to further increase its ratio to 1.4x.

關於成本和效率，我先說門店生產力。到 2023 年，由於我們在具有行為治理和（聽不清）的大型商店和代理商排名系統方面的持續努力，我們預計商店生產力將顯著提高。我們致力於改善虧損和低效門店的管理，我們相信低效可能是暫時的。在代理人生產力方面，總代理人生產力從長遠來看還有巨大的提升空間。北京可以作為一個基準，我們的代理生產力比行業平均水平高 3 到 4 倍。鏈家方面，2022 年，不包括北京和上海，鏈家的代理人生產力是關聯代理人的 1.3 倍，我們今年的目標是將其比率進一步提高到 1.4 倍。

For (inaudible) connect stores, also, we will not set a specific target for agent productivity this year. We will improve a range of operating metrics to improve the agent productivity, such metrics include cross-stock, cross-brand cooperation ratio, accompanying the home tools by home listing agents, price difference management between the listing and transaction prices and the (inaudible) ratio for one transaction. In terms of the (inaudible), we believe in the value of taking good care of customers. We believe in the value of sharing successful experience and infrastructure to the industry to empower and enhance industry efficiency. We believe in the value of protecting the interest of the service providers, paying commission timely. We believe in the value of improving the industry code of conduct and help developers and all participants to work with a sense of security and fairness. We believe in the value of our hundreds of thousands of excellent service providers who have been serving the communities for many years and established this unique mode in home services, and we believe in the value of time. This is what we have been doing, not perfectly, but where (inaudible).

對於（聽不清）連接商店，我們今年也不會為代理生產力設定具體目標。我們將改進一系列運營指標以提高代理生產力，這些指標包括跨庫存、跨品牌合作比例、家居掛牌代理的家居工具、上市和交易價格之間的差價管理以及（聽不清）一筆交易的比率。就（聽不清）而言，我們相信照顧好客戶的價值。我們相信與行業分享成功經驗和基礎設施以增強和提高行業效率的價值。我們相信保護服務提供商利益的價值，及時支付佣金。我們相信完善行業行為準則的價值，幫助開發者和所有參與者以安全和公平的方式工作。我們相信我們數十萬優秀服務商的價值，他們多年來一直服務於社區，並建立了這種獨特的家庭服務模式，我們相信時間的價值。這就是我們一直在做的事情，雖然不完美，但在哪裡（聽不清）。

And our next question today comes from John Lam at UBS.

我們今天的下一個問題來自瑞銀的 John Lam。

And also, congratulations for the results. So my question is regarding on the cost optimization. So we have seen that in the third quarter last year, the cost optimization was very effective. Is there any room for further improvement in the cost optimization? And also, can the expense ratio from the third quarter last year 2022 could be used to infer the subsequent profitability?

而且，祝賀結果。所以我的問題是關於成本優化。所以我們看到，在去年第三季度，成本優化非常有效。成本優化是否還有進一步提升的空間？還有，去年2022年第三季度的費用率是否可以用來推斷後續的盈利能力？

Thank you, John. For cost expense for our one body business, we quickly implemented a series of cost reduction and efficiency enhancement initiatives in 2022. Consequently, the cost and expenses for our one

謝謝你，約翰。針對一體式車身業務的成本費用，我們在 2022 年迅速實施了一系列降本增效舉措。因此，我們一體式車身業務的成本和費用

Body business were optimized to reach the level in the year of 2019, which we believe is relatively sustainable. In terms of the cost control in the fourth quarter of 2022, the fixed cost of our one body business fell by 36% year-over-year and its variable cost as a percentage of revenue dropped by 5.6 percentage points year-over-year.

車身業務優化達到2019年水平，我們認為是比較可持續的。在2022年四季度的成本控制方面，我們一體機業務的固定成本同比下降36%，可變成本佔收入的比重同比下降5.6個百分點。

In terms of expenses, the total amount of non-GAAP operating expenses declined by 70% year-over-year to the same level in the year of 2019. The expense reduction will be more significant if we exclude the impact from the consolidation of Shengdu. Commissioning (inaudible) account for 44% of total new home commission in fourth quarter, up from 20% in the first quarter. This ensures the collection of the new home receivables, mitigating the negative impact of the new home better provisions of the expenses.

費用方面，非美國通用會計準則運營費用總額同比下降70%至2019年同期水平，若剔除並表盛都的影響，費用下降幅度更大.調試（聽不清）佔第四季度新房佣金總額的 44%，高於第一季度的 20%。這確保了新房應收賬款的回收，減輕了新房更好地撥備費用的負面影響。

In 2023, our platforms agent productivity will see even greater improvement, and we will implement incentive to develop and retain on our employees. We also hope to offset the cost of such initiatives through the continuous cost control of the nonpersonnel expenses. In addition, we hope to improve agents' productivity by technology investments to reduce their time spend on the low productivity matters and low engine to get workers earlier spend more time with their families and contributing to further industry optimization as well as potential profitability improvements. All in all, our financial strategy for our one body business will remain focused on efficiency with optimized cost and the expense level in 2022, we will support the quality growth cost effectively. Meanwhile, we will continue to strictly control the risk and strike a balance between the efficiency, receivable collection speed and the skill expansion. With ensured security of the accounts receivable, we will enhance our cooperation with partners in upstream and downstream.

2023年，我們的平台代理生產力將有更大的提升，我們將實施激勵措施來發展和留住我們的員工。我們還希望通過對非人事費用的持續成本控制來抵消此類舉措的成本。此外，我們希望通過技術投資來提高代理人的生產力，減少他們在低生產力問題和低引擎上花費的時間，讓員工更早地花更多時間陪伴家人，為進一步的行業優化和潛在的盈利能力提升做出貢獻。總而言之，到 2022 年，我們一體式業務的財務戰略將繼續以優化成本和費用水平的效率為重點，我們將以有效的成本支持高質量的增長。同時，我們將繼續嚴控風險，在效率、應收賬款速度和技能拓展之間取得平衡。在確保應收賬款安全的前提下，加強與上下游合作夥伴的合作。

For two wings business, regarding our home renovation and furnishing business, in addition to making sure total loss ratio will not further expand where we will capture opportunities to reinforce our fundamental capabilities, including the products, supply chain and service deliverability and invest in high-quality service providers. On the whole, we will reflect some of our redundant investment we made during the last round of market growth. And while continuing to promote our business growth, strictly control cost and expense to balance the growth and the profitability.

對於兩翼業務，關於我們的家居裝修和家具業務，除了確保總損失率不會進一步擴大外，我們將抓住機會加強我們的基本能力，包括產品、供應鍊和服務交付能力，並投資於高-優質服務商。整體上，我們會反映出我們在上一輪市場增長中做的一些冗餘投資。在繼續推動業務增長的同時，嚴格控製成本和費用，以平衡增長和盈利能力。

Sorry, can I ask one more question? So you also mentioned about the two wings. So what is your plan regarding on skill expansion and also efficiency improvement for two wings? In terms of the strategy for expansion and also the scale of investment, could I say that for the full surface home renovation and furnishing model, do you achieve the (inaudible) in 2022? Is 2023 a critical year to go from 1 to 10 (inaudible) with us with key focuses and goes in 2023.

抱歉，我可以再問一個問題嗎？所以你也提到了兩個翅膀。那麼你對兩個側翼的技能擴展和效率提升有什麼計劃？在擴張策略和投資規模方面，我能說對於全表面家裝模式，你們在2022年達到（聽不清）嗎？ 2023 年是從 1 到 10（聽不清）的關鍵一年嗎？我們將重點放在 2023 年。

Okay. I will answer your question. 2022 was a year our two wings were born and took a route. We have taken a solid step for in both our home renovation and furnishing business and our rental business. It will still barely stay in more cities on the home renovation and furnishing side, our total contract sales backed a trend and increased by more than 30% year-over-year. With total revenue exceeding RMB6 billion in both Beijing and Hangzhou, we reached the first milestone of over RMB1 billion in annual contracted sales. And for rental services, we enter certain cities in 2022 and the total number of rental units under management in the city, 120,000. In 2023, we will establish benchmark cities achieved breakthrough and make commitment investment to build long-term capabilities. In 2023, our two wings business will build on the current momentum in the cities we enter, we will not be pursuing comprehensive and rapid skill expansion. First, instead of focusing on short-term and rapid skill expansion, we will continue to decisively invest in our long-term capabilities, including the ability to stand out services and provide better online (inaudible) as well as our online operations of the supply chain digitalization capabilities, product specification for Chinese consumers and professionalism of service providers.

好的。我會回答你的問題。 2022 年是我們的兩個翅膀誕生並走上一條路線的一年。我們在家居裝修和家具業務以及租賃業務方面都邁出了堅實的一步。家裝端仍將勉強留在更多城市，我們的合同銷售總額逆勢增長，同比增長超過30%。北京和杭州的總收入均超過人民幣 60 億元，我們實現了年合同銷售額超過人民幣 10 億元的第一個里程碑。在租賃服務方面，我們在2022年進入部分城市，全市管理的租賃單位總數為120,000個。 2023年，我們將建立取得突破的標杆城市，並進行承諾投資以建立長期能力。 2023年，我們的兩翼業務將在我們進入的城市中建立現有的勢頭，我們不會追求全面快速的技能擴張。首先，我們將繼續果斷地投資於我們的長期能力，而不是專注於短期和快速的技能擴展，包括脫穎而出的服務和提供更好的在線（聽不清）以及我們的供應在線運營的能力連鎖數字化能力、適合中國消費者的產品規格和服務商的專業度。

Second, based on these capabilities, we hope to achieve comprehensive scientific management, business need conversion and operating efficiency improvement for both renovation and refurnishing. We also expect to reduce the vacancy period for our rental units, improve consumer satisfaction and enhance the efficiency of our service providers and our business. Our 2023 goal is to penetrate several key cities deeply (inaudible) as benchmarkers enabling our two wings to truly complete the breakthrough. In 2024, we will replicate and promote this benchmark to more cities. Yes, it's my answers.

其次，基於這些能力，我們希望實現對裝修和裝修的全面科學管理、業務需求轉換和運營效率提升。我們還希望減少出租單位的空置期，提高消費者滿意度，並提高我們的服務提供商和業務的效率。我們2023年的目標是深入（聽不清）幾個重點城市作為標杆，讓我們的兩翼真正完成突破。 2024年，我們將把這個標杆複製推廣到更多的城市。是的，這是我的答案。

Thank you. We are now approaching the end of the conference call. I will now turn the call over to your speaker host today, Ms. Siting Li for closing remarks.

謝謝。我們現在接近電話會議的尾聲。現在，我將把電話轉給今天的演講主持人 Siting Li 女士作閉幕詞。

Thank you once again for joining us today. If you have any further questions, please feel free to contact Beike's Investor Relations team through the contact information provided on our website. We conclude today's call. And we look forward to speaking with you again next quarter. Thank you, and goodbye.

再次感謝您今天加入我們。如果您有任何其他問題，請隨時通過我們網站上提供的聯繫信息聯繫北科的投資者關係團隊。我們結束今天的電話會議。我們期待下個季度再次與您交談。謝謝，再見。

Thank you. This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines, and have a wonderful day.

謝謝。今天的電話會議到此結束。感謝大家出席今天的演講。您現在可以斷開線路，度過美好的一天。