Ke Holdings Inc (BEKE) 2024 Q1 法說會逐字稿

Hello, ladies and gentlemen. Thank you for standing by for KE Holdings Inc. First Quarter 2024 Earnings Conference Call. 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. To access the call in Chinese, you will need to dial into the Chinese language line. (Operator Instructions) Today's conference call is being recorded.

各位女士、先生，大家好。感謝您撥入KE Holdings Inc. 2024年第一季財報電話會議。請注意，本次電話會議，包括管理層的發言和問答環節，將全部以英語進行。會議期間，我們將提供中文同聲傳譯，請撥入中文線。 （操作說明）本次電話會議將進行錄音。

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

現在我將把電話交給主持人李思婷女士，她是貴公司的投資人關係總監。請李思婷女士發言。

Thank you, operator. Good evening, and good morning, everyone. Welcome to KE Holdings, or Beike's first quarter 2024 earnings conference call. The company's financial and operating results were published in the press release earlier today and are posted on the company's IR website, investors.ke.com.

謝謝接線生。各位晚上好，各位早安。歡迎參加貝殼控股（KE Holdings）2024年第一季財報電話會議。本公司財務與營運績效已於今日稍早發佈在新聞稿中，並已發佈在本公司投資者關係網站 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 development, and Mr. Xu will provide additional details on the company's financial results.

在今天的電話會議上，我們邀請到了聯合創始人、董事長兼首席執行官彭志強先生，以及執行董事兼首席財務官徐濤先生。彭先生將概述公司的策略和業務發展情況，徐先生將詳細介紹公司的財務表現。

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.

在繼續之前，請各位參閱我們在盈利新聞稿中的安全港聲明，該聲明適用於本次電話會議，因為我們將做出前瞻性陳述。

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.

另請注意，貝科的獲利新聞稿和本次電話會議均包含未經審計的GAAP財務資訊以及未經審計的非GAAP財務指標。請參閱本公司新聞稿，其中包含未經審計的非GAAP指標與可比較GAAP指標的調節表。最後，除非另有說明，本次電話會議中提及的所有數字均以人民幣為單位。

For today's call, management will use English as main language. Please note that the Chinese translation is for convenience purpose only. In the case of any discrepancy, management statements in their original language will prevail.

本次電話會議，管理層將使用英語作為主要語言。請注意，中文翻譯僅供參考。如有任何歧義，以管理原文為準。

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

接下來，我將把電話交給我們的董事長兼執行長彭定康先生。請您發言，彭定康先生。

Thank you, Siting. Hello, everyone. Thank you for joining Beike's first quarter 2024 earnings conference call. In the first quarter of 2024, the transaction volume of existing homes on our platform prevailed, surpassing that of new homes in 74 cities despite a high base set in the first quarter of last year. The existing home transaction continued to show year-over-year growth in 16 cities.

謝謝席婷。大家好。感謝各位參加貝殼2024年第一季業績電話會議。 2024年第一季度，儘管去年第一季基數較高，但我們平台的二手房交易量在74個城市超過了新房交易量。二手房交易量在16個城市持續維持年增。

The steady growth in the existing home [market, coupled with signs of bottoming out in the new home market, is also a manifestation of China's housing market rapidly transitioning into a "new era." The concentrated release of pent-up demand and seasonality made for a very high base in the first quarter of last year. While this significantly impacted our year-over-year performance, this was mostly a one-time effect specific to the first quarter. Total GTVs on our platform was approximately] (added by company after the call) RMB 630 billion in the first quarter, down 35% year-over-year.

現有住宅市場的穩定成長，加上新房市場觸底反彈的跡象，也反映了中國房地產市場正迅速邁入「新時代」。去年第一季度，積壓需求集中釋放以及季節性因素導致基數很高。雖然這顯著影響了我們同比的業績，但這主要是第一季特有的一次性影響。我們平台第一季的總成交額約為人民幣6,300億元（公司在電話會議後補充），較去年同期下降35%。

At the same time, GTV on existing home and new home transactions declined by 32% and 45% year-over-year, respectively. The overall performance is expected to improve in the coming quarters. At the end of the first quarter, the total number of active stores on our platform reached over 42,500, an addition of nearly 3,000 stores compared with last year, primarily attributable to a substantial increase in number of connected stores, in particular. Our strategy on active partnering with connected stores has paid off, with additional key partner brands joining us across Wuhan, Xiamen, Nanjing, Jining and other cities. It also demonstrated that more industry partners are finding inroads to improve efficiency nowadays.

同時，二手房和新房交易的總成交額比去年同期分別下降了32%和45%。預計未來幾季整體業績將有所改善。截至第一季末，我們平台上的活躍門市總數超過42,500家，較去年同期新增近3,000家，主要得益於連網門市數量的大幅成長。我們積極與連網門市合作的策略已取得成效，更多重要合作夥伴品牌已加入我們在武漢、廈門、南京、濟寧等城市的合作網路。這也表明，如今越來越多的產業合作夥伴正在尋求提升效率的途徑。

Since the fourth quarter of 2023, the performance of newly connected stores had also exceeded our expectations. There have also been a positive surprise in agent productivity in the newly connected stores with only a handful of employees compared to those of large stores, having withstood stores major market fluctuations. These smaller stores boasted operational efficiency and community outreach capabilities far beyond our expectations.

自2023年第四季以來，新接入系統的門市業績也超出了我們的預期。與大型門市相比，這些新接入系統且員工人數較少的門市，其員工效率也出乎意料地高，並且經受住了市場劇烈波動的考驗。這些小型門市的營運效率和社區拓展能力都遠遠超出了我們的預期。

Their performance also motivated to improve our service competencies to better serve the diversified type of stores. The scaling up of agent and store network also further enhances the most fundamental infrastructure of our one-stop residential services.

他們的出色表現也激勵我們提升服務能力，以便更好地服務各類門市。代理商和門市網路的擴張也進一步完善了我們的一站式住宅服務最基本的基礎設施。

On the agent and store front, Lianjia Shanghai has adopted innovative business formats to achieve growth. Looking back to 2022, our home listing coverage rate in Shanghai was around 65%. This told us there was room for improvement in our community outreach and that our traditional large store model was too heavy handed and impersonal.

在代理商和門市方面，聯佳上海採用了創新的商業模式來成長。回顧2022年，我們在上海的房源覆蓋率約為65%。這顯示我們在社區推廣方面還有提升空間，而且我們傳統的大型門市模式過於強勢和缺乏人情味。

We advocate to a limitless agent store model where stores and service providers with strong community ties are indispensable strategic components. Over the years, we have explored many ways to make improvement on agent side. And in 2023, Lianjia Shanghai discovered more possibilities on store front, exploring various innovative practices under the large store model with introducing nearly 60% of community mini services outlets derived from these large stores, which we call community mini stores.

我們倡導無限代理商門市模式，將與社區緊密聯繫的門市和服務提供者視為不可或缺的策略組成部分。多年來，我們不斷探索提升代理商端營運效率的多種途徑。 2023年，聯佳上海在門市層級發掘出更多可能性，在大店模式下探索創新實踐，並引進近60%源自這些大店的社區迷你服務網點，我們稱之為社區迷你門市。

This streamlined approach included providing local convenience services such as printing at various small stores or mobile service kiosks and reception points located in high-traffic areas like community centers, shopping malls and subway stations. By deepening our exposure in neighborhood and establishing a closed community operational presence, we strengthened customers as well as agents' sense of security.

這種精簡且有效率的模式包括在社區中心、購物中心和地鐵站等高人流量區域的各個小型商店或行動服務亭提供列印服務等當地便利服務，以及設立接待點。透過加深我們在社區的影響力，並建立封閉式的社區運作網絡，我們增強了客戶和代理商的安全感。

We have achieved deeper community coverage and better identify local customer needs. In 2003, our coverage of the 3.5 million target residential households rose to 95% compared to 87% in 2022. And our home listing coverage rate in Shanghai soar from 65% to 84%. We also made new attempts to enhance the customer experience in housing transactions.

我們實現了更深層的社群覆蓋，並且更能掌握了本地客戶的需求。 2003年，我們對350萬目標住宅家庭的覆蓋率達到95%，而2022年則為87%。我們在上海的房源覆蓋率也從65%飆升至84%。此外，我們也做出了提升房屋交易的客戶體驗的新嘗試。

In terms of online operations, the rise of new media platform over the past few years has led more agents to leverage those channels to acquire and engage customers. Capitalize on this trend, agent and store owners of our platform also begun using tools like short videos and live streaming to present home listings, introduced residential neighborhoods and share real estate knowledge. Despite these early efforts, the lake of a new media strategy resulted in inconsistent customer acquisition efficiency.

在網路營運方面，過去幾年新媒體平台的興起促使更多經紀人利用這些管道來獲取和吸引客戶。為了適應這一趨勢，我們平台上的經紀人和店鋪所有者也開始使用短視頻和直播等工具來展示房源資訊、介紹住宅社區並分享房地產知識。儘管早期做出了這些努力，但由於缺乏新媒體策略，導致客戶獲取效率不穩定。

In response, we kicked off the Galaxy initiatives in 2022, incubating and empowering more agents and store owners to acquire customers through short videos and live streaming. By the end of the first quarter of this year, our improved influencer network has grown to over 12,000 with almost 36 million followers, making it one of the largest real estate MCN networks nationwide.

為此，我們在2022年啟動了Galaxy計劃，旨在孵化和賦能更多經紀人和店主，讓他們能夠透過短影片和直播獲取客戶。截至今年第一季末，我們改進後的網紅網路已發展到超過12,000名網紅，擁有近3,600萬粉絲，使其成為全國最大的房地產多頻道網路之一。

The traffic led to thousands of transactions last year. More importantly, this can better satisfy customer needs. Service providers can connect with a wide audience via those new media platforms which offer potential customers, more impartial interaction compared with traditional offline methods.

去年，流量促成了數千筆交易。更重要的是，這能更好地滿足客戶需求。服務提供者可以透過這些新媒體平台與更廣大的受眾建立聯繫，與潛在客戶相比，這些平台能提供更客觀的互動，而這比傳統的線下方式更為有效。

This approach gives agents edge in uncovering hidden customer needs, for us, the emergence of these real estate content. Influencers is not just a trend of a result of technological advancement. Rather it reflects and results from the further specification of buyers and sellers agents within the industry.

這種方法使經紀人能夠更好地挖掘客戶的潛在需求，對我們而言，正是這些房地產內容的出現。影響力人物的出現不僅是技術進步帶來的趨勢，它更反映了產業內買賣雙方經紀人角色的進一步細分。

As for our offline operations, we are advancing the iteration of a series of services that directly improve customers' experience. This includes a direct connection with the housing provident fund to facilitate easier access. We also implemented measures that enhanced customer experience by elevating our business partners' engagement such as public supervision and control program to enhance ecosystem governance and tiered agent operations.

在本地營運方面，我們正在推動一系列服務的迭代升級，以直接提升客戶體驗。這包括與房屋公積金直接對接，方便客戶更方便地取得服務。此外，我們也透過提升合作夥伴的參與度來增強客戶體驗，例如透過公共監督和控制機制來強化生態系統治理，以及推行分級代理營運模式。

Taking the one-stop transaction services model, we implemented in Suzhou, as an example. Historically, customers need to go to 4 separate places to complete the required procedures for existing home transactions and are often hard-pressed to schedule appointments in advance. This externalized process also hindered our ability to ensure a seamless experience throughout the entire transaction.

以我們在蘇州實施的一站式交易服務模式為例。以往，客戶需要前往四個不同的地方才能完成現有房屋交易所需的各項手續，而且往往很難提前預約。這種分散的流程也阻礙了我們確保客戶在整個交易過程中獲得流暢體驗。

So we sought ways to streamline this experience by promoting collaboration among the government agencies, banks and related enterprises in Suzhou, alongside our technology support. All this effort provided one-stop post-sale services for existing home transaction, covering transactions funds escrow, face-to-face bank mortgage, sign-ups, home title transfers, tax payments and connection of property ownership certificates.

因此，我們尋求簡化流程的方法，透過促進蘇州政府機構、銀行和相關企業之間的合作，並結合我們的技術支持，最終為現有房屋交易提供一站式售後服務，涵蓋交易資金託管、面對面銀行抵押貸款、簽約、房屋所有權轉移、稅款繳納以及產權證對接等。

As Suzhou successfully pioneer the one-stop services model with an end-to-end post-sales transaction process. For existing homes, we plan to replicate its model in more cities and significantly improve customer experience going forward.

蘇州成功率先推出了一站式服務模式，實現了端到端的售後交易流程。對於現有住宅，我們計劃將其模式複製到更多城市，並在未來大幅提升客戶體驗。

Regarding customer experience in our new initiatives, there is still ample room for improvement as we dive deeper into customer needs and iterate our service products. For example, in home rental services last year, we conducted a survey involving the needs of 100,000 tenants and identified several major pain points, such as delay service response, nonstandard housing amenities after moving in, the high cost of changing rentals and a lack of lease termination guarantees.

就我們新措施的客戶體驗而言，仍有很大的提升空間，我們需要更深入地了解客戶需求並不斷迭代我們的服務產品。例如，去年我們在房屋租賃服務方面開展了一項針對10萬租戶的需求調查，並發現了一些主要痛點，例如服務響應延遲、入住後房屋配套設施不達標、更換租賃房屋成本高昂以及缺乏租賃終止保障等。

As a response, on March 16, 2023, we upgraded our services to include 7 service offerings: timely repair; housekeeping; broadband setup; smart door lock, worry free rental change; flexible payments; and dedicated butlers. Also, we implemented five service communities 3-day unconditional refund upon lease termination, guaranteed refund for rental change, a home security guarantee, compensation for unsatisfactory rental experience and the timely deposit refunds.

作為回應，我們於2023年3月16日昇級了服務，新增7項服務：及時維修、家事服務、寬頻安裝、智慧門鎖、無憂租約變更、靈活付款方式以及專屬管家服務。此外，我們還推出了五項服務：租約終止後3天內無條件退款、租約變更保證退款、房屋安全保障、不滿意租房體驗補償以及及時退還押金。

These services benefits and guarantees are specifically designed to address customer most critical pain points. We have created a standard service fulfillment processes based on best practices in this area. The result has been a notable improvement in the standardized services, fulfillment rate, higher customer satisfaction rates 3 days after moving and a better customer recommendation rate.

這些服務優勢和保障旨在解決客戶最迫切的痛點。我們根據該領域的最佳實踐，制定了一套標準化的服務履行流程。最終成果顯著：標準化服務品質、服務完成率、搬家後3天內的客戶滿意度以及客戶推薦率都大幅提升。

The area I have just touched on cover some of these key initiatives we have been exploring over the quarters. What we are working toward is assembling a group of people to forge a better path forward that enables us to navigate the changing times. We are looking to evolve our agent store model for housing transaction services, enhance the quality and efficiency of our new initiatives and elevate overall Beike platform to new heights, striving to meet and address opportunities presented by the new era in China's housing market. Thank you.

我剛才提到的內容涵蓋了我們過去幾季一直在探索的一些關鍵措施。我們正在努力組建一個團隊，共同探索一條更好的發展道路，以應對時代的變化。我們致力於改善房屋交易服務的代理門市模式，提升新措施的品質和效率，並將貝殼平台整體提升到新的高度，力求掌握中國房地產市場新時代帶來的機會。謝謝。

Next, I would like to turn the call over to our CFO, Xu Tao, to review our first quarter financials.

接下來，我想把電話交給我們的財務長徐濤，讓他回顧一下我們第一季的財務狀況。

Thank you, Stanley, and thank you, everyone, for joining us. Before we dive into the performance of Q1, I would like to quickly touch upon some updates on recent housing marketing. The housing market saw a year-over-year decline in Q1, primarily due to the high base effect from the release of the pent-up demand early last quarter, or early last year, following the pandemic.

謝謝史丹利，也謝謝各位的參與。在深入探討第一季業績之前，我想先簡單介紹一下近期房地產市場的最新情況。第一季房地產市場年減，主要原因是上個季度（或去年年初）疫情爆發後積壓的需求釋放造成的高基數效應。

However, compared with the typical first quarter market performance, the existing home market was fairly stable in this Q1. Some cities transaction volumes exceed those of the same period last year. This improvement can be partly attributable to the city specific policy optimization that further relaxed the criteria of the home buyers' eligibility.

然而，與往年第一季的市場表現相比，今年第一季二手房市場相對穩定。部分城市的成交量甚至超過了去年同期。這項改善部分歸功於各城市針對購屋者資格條件的進一步優化政策。

The other reason is the active entry of the first-time home buyers into the market, primarily driven by the reduced mortgage rates and the housing price adjustments. These factors further lowered the home purchase thresholds and costs. At the same time, due to home buyers' performance for readily available existing homes, more demand was met at existing home market.

另一個原因是首次購屋者積極進入市場，這主要是由於抵押貸款利率降低和房價調整。這些因素進一步降低了購屋門檻和成本。同時，由於購屋者對現有房源的需求旺盛，二手房市場也得到了更多滿足。

Turning to our performance in Q1. Our revenue reached RMB 16.4 billion compared with RMB 20.3 billion in the same period last year. Gross margin stood at 25.2% compared with 31.3% in Q1 last year. GAAP net income reached RMB 432 million compared with RMB 2.75 billion in the same quarter last year. And non-GAAP net income was RMB 1.39 billion compared with RMB 3.56 billion in the same period last year.

接下來回顧我們第一季的業績。我們的營收達到人民幣164億元，去年同期為人民幣203億元。毛利率為25.2%，去年同期為31.3%。以美國通用會計準則（GAAP）計算的淨利為人民幣4.32億元，去年同期為人民幣27.5億元。以非美國通用會計準則（Non-GAAP）計算的淨利為人民幣13.9億元，去年同期為人民幣35.6億元。

Our Q1 performance was weaker than the same period last year, mainly due to the higher base performance from the onetime impact. It can be partly attributable to the concentrated release of pent-up demand in the same period last year.

我們第一季的業績弱於去年同期，主要原因是受一次性因素影響，基數較高。部分原因在於去年同期的積壓需求集中釋放。

The other reason was the optimistic expectations for housing market continued to surge demand in Q1 last year. At the same time, the new home market continues experience depression. We believe the first 2 factors are onetime impact. And our future performance will be better reflected our business operation.

另一個原因是去年第一季對房地產市場的樂觀預期持續推高了需求。同時，新房市場持續低迷。我們認為前兩個因素是一次性影響，而我們未來的業績將更能反映我們的業務運作。

Regarding the home transaction services in Q1, both new and existing home markets saw a year-over-year decline, primarily due to the higher base performance from the onetime impact, as I previously mentioned.

關於第一季的房屋交易服務，無論是新房市場還是二手房市場，都出現了同比下降，這主要是由於一次性影響導致基數較高，正如我之前提到的那樣。

Revenue from existing home transactions reached RMB 5.7 billion, down 37.6% with GTV reaching RMB 453.2 million, down 31.8% based on year-over-year basis. GTV outperformed the revenue year-over-year, mainly due to a higher contribution from the GTV of the existing home transaction services facilitated by the connected agents. The revenue was recorded on a net basis.

現有房屋交易收入達人民幣57億元，較去年同期下降37.6%；交易總額達人民幣4.532億元，較去年同期下降31.8%。交易總額的年增幅高於收入，主要得益於連網經紀人促成的現有房屋交易服務交易總額的增加。收入以淨額計入。

Our strategic expansion of the more connected stores played a key role in driving this growth. The contribution margin from the existing home transaction services reached 44.5%, remaining steady quarter-over-quarter, but dropped [4.6%] (corrected by company after the call) year-over-year. The change was mainly due to the increase of fixed labor costs related to the growth of the number of Lianjia agents as the negative leverage influence from the reduced revenue.

我們策略性地拓展了更多互聯門市，這在推動這一成長中發揮了關鍵作用。現有家庭交易服務的貢獻毛利率達44.5%，環比維持穩定，但年減4.6%（公司在電話會議後進行了修正）。這項變化主要是由於聯家代理商數量成長導致固定人工成本增加，而收入下降則產生了負面影響。

In terms of the new home transaction services, the industry is still in a risk clearance phase with supply and demand dynamics remaining subdued. CRIC shows that the sales from the top 100 developers decreased by nearly 50% year-over-year in this Q1. Since the sustained refinement of our new home business operations, we have expanded our channel partnership while upholding our risk threshold.

就新房交易服務而言，產業仍處於風險規避階段，供需動態依然疲軟。 CRIC數據顯示，今年第一季度，排名前100名的開發商銷售額較去年同期下降近50%。在持續優化新房業務營運的同時，我們已在維持風險控制水準的前提下，拓展了通路夥伴。

In Q1, new home GTV reached RMB 151.8 billion, down 45.4% year-over-year. Revenue from new home transaction was RMB 4.9 billion, dropping by 41.5% year-over-year. The outperformance of revenue over GTV year-over-year was due to our strong monetization capabilities. The contribution margin for new homes transaction services was 22.3%, falling by [4.1%] (corrected by company after the call) quarter-over-quarter and [4.8%] (corrected by company after the call) year-over-year. The decline was attributable to the rise in the variable commissions and the negative leverage influence due to the relatively stable fixed labor costs and the lower revenue.

第一季度，新房屋交易總額達人民幣1,518億元，較去年同期下降45.4%。新房交易收入為人民幣49億元，較去年同期下降41.5%。營收年增率優於交易總額，主要得益於我們強大的變現能力。新房交易服務的貢獻毛利率為22.3%，環比下降4.1%（公司在電話會議後進行了修正），年減4.8%（公司在電話會議後進行了修正）。毛利率下降的原因在於變動佣金的增加，以及固定勞動成本相對穩定和收入下降所帶來的負面槓桿效應。

In Q1, the commission income percentage from SOE developers was around 49%, maintaining a relatively high level. Revenue for home renovation and furnishing business, home rental services, emerging and other services grew by 112.9% year-over-year in Q1, accounting for an increasing portion of our total revenue at 35% and surging by [21.7%] (corrected by company after the call) from the same period of 2023.

第一季度，國營企業開發商的佣金收入佔比約為 49%，維持了相對較高的水平。第一季度，房屋裝修及家具業務、房屋租賃服務、新興服務和其他服務的收入同比增長 112.9%，佔總收入的比例上升至 35%，較 2023 年同期增長 21.7%（公司在電話會議後進行了修正）。

Our home renovation and furnishing business continued to grow at a fast pace. In Q1, contracted sales reached RMB 3.4 billion, up 26.1% year-over-year. Revenue reached RMB 2.4 billion, rising by 71.1% year-over-year.

我們的家居裝修及家具業務持續保持快速成長。第一季度，合約銷售額達人民幣34億元，較去年成長26.1%；營業收入達人民幣24億元，較去年同期成長71.1%。

The growth rate of revenue outpaced that of the contracted sales. This was primarily due to the concentrated release of the pent-up demand after the lifting of the pandemic restriction in the same period last year, leading to a substantial rise in contracted sales and creating a high base of GTV, but due to insufficient delivery capacity, the revenue recognition was slow in the same period last year, led to a lower base of revenue.

營收成長速度超過了合約銷售額成長速度。這主要是由於去年同期疫情限制解除後，積壓的需求集中釋放，導致合約銷售額大幅成長，從而建立了較高的總交易額基數。但由於去年同期配送能力不足，營收確認速度較慢，導致營收基數較低。

In terms of the highlights in the first quarter, total contracted sales in March reached nearly RMB 2 billion, up around 53% year-over-year. Particularly noteworthy was the record-breaking March contracted sales in Beijing, surpassing RMB 400 million.

第一季亮點方面，3月總簽約銷售額接近20億元人民幣，較去年同期成長約53%。尤其值得一提的是，北京3月簽約銷售額創歷史新高，突破4億元。

The contribution margin for the home renovation and the furnishing business was 30.6%, remaining flat year-over-year and up [2.8%] (corrected by company after the call) sequentially. This was mainly attributable to the rebound in gross margin of furniture and home furnishing quarter-over-quarter. The percentage of contracted sales contributed by our home transaction services continued to increase, representing around 51% of total GTV in Q1, making an [11%] (corrected by company after the call) increase year-over-year.

家居裝修及家具業務的貢獻毛利率為30.6%，與去年同期持平，環比增長2.8%（公司在電話會議後進行了修正）。這主要歸功於家具及​​家居用品業務毛利率較上月回升。家居交易服務貢獻的合約銷售額佔比持續成長，第一季約佔總交易額的51%，年增11%（公司在電話會議後進行了修正）。

It further highlights the synergies between our housing transactions and other residential services. Moreover, our home renovation and furnishing business has grown more diverse. Furniture and the home furnishing sales reached around RMB 940 million in Q1, accounting for around 27.8% of total contracted sales, representing a [5.1%] (corrected by company after the call) improvement from the same period of 2023.

這進一步凸顯了我們房屋交易與其他住宅服務之間的綜效。此外，我們的家居裝修及家具業務也更加多元化。第一季家具及家居用品銷售額約為人民幣9.4億元，約佔總簽約銷售額的27.8%，較2023年同期增長5.1%（公司在電話會議後進行了修正）。

The contracted sales of the furniture and home furnishing retail which are outside of our home renovation package reached around RMB 882 million in Q1, accounting for around 26% of total contracted sales, representing a [4.7%] (corrected by company after the call) improvement from the same period of 2023.

第一季度，家具和家居用品零售（不包括家居裝修套餐）的合約銷售額達到約8.82億元人民幣，約佔合約銷售額的26%，比2023年同期增長了4.7%（公司在電話會議後進行了更正）。

Starting from this year, we have begun to disclose the financials of our home rental services due to their growing scale and the significance in our business. And the revenue from this service accounted for over 10% of total revenue in the first quarter.

從今年開始，鑑於房屋租賃服務規模不斷擴大及其在我們業務中的重要性，我們開始揭露該服務的財務資訊。第一季度，該項服務的收入佔總收入的10%以上。

In Q1, revenue from our home rental services reached RMB 2.6 billion, up 189.3% year-over-year, mainly due to the rapid growth of the numbers of the rental units under our management. At the end of Q1, the number of units managed by our home rental services exceeded 250,000, reflecting 159.1% rise year-over-year. Within the revenue generated from our home rental services, our decentralized rental management services, Carefree Rent contributed to more than 95% of total.

第一季度，我們的房屋租賃服務收入達人民幣26億元，年增189.3%，主要得益於旗下租賃房源數量的快速成長。截至第一季末，我們管理的房屋租賃服務房源數量已超過25萬套，較去年同期成長159.1%。在房屋租賃服務收入中，我們的分散式租賃管理服務「無憂租」貢獻了超過95%的收入。

Other revenue sources include centralized rental apartment services, monetization of platform traffic and online rental management services. In Q1, our net revenue from emerging and other services increased by 85.3% year-over-year to RMB 700 million.

其他收入來源包括集中式公寓租賃服務、平台流量變現和線上租賃管理服務。第一季度，新興服務及其他服務的淨收入年增85.3%，達到人民幣7億元。

Next, let's move on our other costs and expenses in Q1. Our store costs totaled RMB 685 million in Q1, remaining stable overall compared with the same period of 2023. Other costs decreased by 10.7% year-over-year to RMB 379 million, primarily due to the reduction in taxes and the surcharges.

接下來，讓我們來看看第一季的其他成本和費用。第一季我們的門市成本總計人民幣6.85億元，與2023年同期相比整體保持穩定。其他成本較去年同期下降10.7%至人民幣3.79億元，主要原因是稅收和附加費的減少。

As a result of our decreased operating leverage, our gross profit dropped by 35.1% year-over-year to RMB 4.1 billion, with gross margin of 25.2%, down [0.3%] (corrected by company after the call) quarter-over-quarter, remaining relatively stable. Year-over-year gross margin fell by [6.1%] (corrected by company after the call), mainly due to the lower contribution margin from the existing and the new home transactions along with the decreasing share of the revenue from the existing home transaction. This decline in gross margin was partially offset by the larger proportion of revenue from our home renovation and furnishing business.

由於營運槓桿降低，我們的毛利年減35.1%至人民幣41億元，毛利率為25.2%，環比下降0.3%（公司在電話會議後進行了修正），整體保持相對穩定。毛利率年減6.1%（公司在電話會議後進行了修正），主要原因是二手房和新房交易的貢獻毛利率下降，以及二手房交易收入佔比降低。毛利率的下降部分被家居裝修及家具業務收入佔比的增加所抵銷。

In Q1, our GAAP operating expenses totaled RMB 4.1 billion, showing a 21.9% year-over-year increase and 22.7% quarter-over-quarter decrease. Specifically, G&A expenses climbed by 24.5% year-over-year to RMB 2 billion, driven by the higher personnel costs associated with our home renovation and home transaction services. The rise in G&A expenses on a year-over-year basis was mainly due to the provision for the bad debt, totaling approximately RMB 19 million in Q1, whereas around RMB 127 million of the provision for bad debts, were reversed in the same period of last year.

第一季度，我們以美國通用會計準則（GAAP）計算的營運費用總計人民幣41億元，較去年同期成長21.9%，較上季下降22.7%。其中，一般及行政費用年增24.5%至人民幣20億元，主要受房屋裝修及房屋交易服務相關人員成本增加的影響。一般及行政費用較去年同期成長的主要原因是提列了約人民幣1,900萬元的壞帳準備，而去年同期約人民幣1.27億元的壞帳準備已被沖回。

Sales and marketing expenses grew by 25.5% year-over-year to RMB 1.6 billion, propelled by the rapid expansion of our home renovation and furnishing business. Our R&D expenses amounted to RMB 467 million with only a slight change compared with the first quarter last year.

受家居裝修及家具業務快速擴張的推動，銷售及市場推廣費用年增25.5%至人民幣16億元。研發費用為人民幣4.67億元，與去年同期相比變化不大。

In terms of the profitability, GAAP income from operations totaled RMB 12 million in Q1 compared with RMB 2.98 billion from the same period of 2023. GAAP operating margin was 0.1% compared with 14.7% from the Q1 2023. Non-GAAP income from operations amounted to RMB 960 million compared with RMB 3.83 billion from the same period of 2023.

就獲利能力而言，第一季GAAP營業收入總計人民幣1,200萬元，而2023年同期為人民幣29.8億元。 GAAP營業利潤率為0.1%，而2023年第一季為14.7%。非GAAP營業收入為人民幣9.6億元，而2023年同期為人民幣38.3億元。

Non-GAAP operating margin was 5.9% compared with 18.9% from Q1 2023. The year-over-year decline in operating margin was mainly due to the lower gross margin and the higher operating expenses ratio.

非GAAP營業利益率為5.9%，而2023年第一季為18.9%。營業利益率較去年同期下降主要是由於毛利率下降和營業費用率上升所致。

GAAP net income totaled RMB 432 million in Q1 compared with RMB 2.75 billion from the same period of 2023. Non-GAAP net income amounted to RMB 1.39 billion compared with RMB 3.56 billion from the same period of 2023.

第一季GAAP淨利總額為人民幣4.32億元，而2023年同期為人民幣27.5億元。非GAAP淨利為人民幣13.9億元，2023年同期為35.6億元人民幣。

Shifting to cash flow and the balance sheet metrics. We realized the net operating cash outflow of RMB 915 million in Q1, largely due to the seasonal impact of the bonus payment during this Q1. On top of that, USD 220 million allocated towards the share repurchase during the first quarter. Our total cash liquidity which excludes customer deposits payable, reached RMB 75.6 billion.

接下來我們來看現金流和資產負債表指標。第一季我們實現了淨經營現金流出人民幣9.15億元，主要原因是受第一季派發紅股的季節性影響。此外，第一季我們也撥出2.2億美元用於股份回購。扣除應付客戶存款後，我們的現金流動總額達到人民幣756億元。

This year the external market remains challenging. And internally, that is the year we will increase our strategic investment. Under the circumstance, we remain committed to enhancing shareholder returns, refining the company's capital structure and optimizing capital operations.

今年外部市場依然充滿挑戰。而對公司內部而言，今年我們將加大策略投資。在此背景下，我們將持續致力於提升股東回報、優化公司資本結構並提升資本運作效率。

Our goal is to provide shareholders with consistent returns, enabling them to navigate the economic cycles alongside us. Our actions demonstrate that we have delivered on our promise. Throughout 2023 we allocated around USD 719 million to the share buyback program and recently completed the payment of the final cash dividend plan, distributing around USD 400 million in aggregate.

我們的目標是為股東提供持續穩定的回報，使他們能夠與我們共同應對經濟週期。我們的行動表明，我們已兌現了承諾。 2023年全年，我們撥款約7.19億美元用於股票回購計劃，並於近期完成了最終現金股息計劃的支付，總計派發約4億美元。

Our total shareholder returns from repurchase and dividends significantly exceeded our net income, accounting for around 159% of our net income in 2023. In 2024, as of May 10, we have allocated around USD 344 million for the share repurchase. And the number of the repurchase share accounted for around 2% of the total shares at the beginning of the year.

2023年，我們透過股票回購和分紅獲得的股東總回報顯著超過淨利潤，約佔淨利潤的159%。截至2024年5月10日，我們已撥出約3.44億美元用於股票回購。年初回購股份數量約佔總股本的2%。

This year we are focusing on strategic investments to expand our store network, enhancing training for the frontline service providers, iterate the product technology, upgrade quality services and improve middle to back office operations for our emerging business. This initiatives requires more efficient financial management.

今年，我們將專注於策略性投資，以拓展門市網路、加強第一線服務人員培訓、迭代產品技術、提升服務品質並改善新興業務的中後台營運。這些舉措需要更有效率的財務管理。

As such, we are committed to supporting our business in optimizing financial resources allocation and making our efforts to help our business to achieve long-term development. Simultaneously, we will maintain our high standards for risk management and the capital allocation efficiency to ensure our investment generates better returns in the future and create long-term value to our shareholders. Thank you.

因此，我們致力於優化財務資源配置，支援業務發展，並努力幫助業務實現長期發展。同時，我們將維持高標準的風險管理和資本配置效率，以確保投資在未來獲得更佳回報，並為股東創造長期價值。謝謝。

Operator, we can move to Q&A session.

操作員，我們可以進入問答環節了。

(Operator Instructions) Your first question comes from Sofie Xiaodan Zhang with CICC.

（操作員說明）您的第一個問題來自中金公司的張曉丹女士。

I got 2 questions here. First of all, could you please share your views on recent policies as well as market outlook? And secondly, since the customer acquisition channels are becoming increasingly diverse for real estate agencies, how are you going to ensure your efficiency in online traffic acquisition and especially regarding the new home transaction services? Developers started to allocate part of their sales and marketing budget on emerging media platform. So I wonder if the company has considered about investing more in video-based products or content to better activate the unused traffic?

我有兩個問題。首先，能否請您分享一下對近期政策和市場前景的看法？其次，鑑於房地產仲介的客戶獲取管道日益多元化，您將如何確保線上流量獲取的效率，尤其是在新房屋交易服務方面？開發人員已開始將部分銷售和行銷預算投入新興媒體平台。因此，我想知道貴公司是否考慮過加大對視訊產品或內容的投入，以更好地啟動未充分利用的流量？

Thank you, Sophie. Regarding your first question, despite ongoing price adjustments in the existing home market, the overall transaction volume has remained relatively stable. The market performance in some cities even exceeded the expectations, which made us cautiously optimistic about future existing home market.

謝謝Sophie。關於你的第一個問題，儘管二手房市場價格持續調整，但整體成交量保持相對穩定。部分城市的市場表現甚至超乎預期，這讓我們對二手房市場的未來持謹慎樂觀態度。

Nevertheless, the new home market is still somewhat sluggish with the rollout of the policies aimed on inventory reduction. We anticipate improved liquidity on the new home market supply side and the recovery in market confidence.

儘管如此，隨著旨在減少庫存的政策逐步出台，新房市場依然略顯疲軟。我們預期新房市場供應端的流動性將有所改善，市場信心也將有所恢復。

Let me have some further elaboration. Regarding the policies in this year, the positive policies can be classified into 3 categories. Firstly, policies aimed at releasing and attracting buying power, such as the cancellation or the optimization of the purchase restriction in cities like Hangzhou, Chengdu and Shenzhen and removing the minimum mortgage rate. Secondly, policies facilitating sell old homes for new ones and the government buying unsold homes to help digest inventory. Thirdly, policies to optimize the supply of new homes such as directive to limit residential land supply in areas with high inventory levels.

讓我再詳細闡述。關於今年的政策，積極的政策可以分為三類。第一類是旨在釋放和吸引購買力的政策，例如取消或優化杭州、成都、深圳等城市的購屋限制，以及取消最低抵押貸款利率。第二類是鼓勵以舊換新以及政府收購滯銷房屋以幫助消化庫存的政策。第三類是優化新房供應的政策，例如限制高庫存地區住宅用地供應的指示。

The policies are very supportive to the existing housing market. Since the beginning of the year, GTV for existing homes has remained largely stable. Also not matching the higher base set as the release of the pent-up demand in the first quarter last year.

這些政策對現有房屋市場非常有利。自年初以來，現有房屋的總交易額（GTV）基本上保持穩定，並未超過去年第一季因積壓需求釋放而設定的較高基數。

It also has showed the recovery in March of the spring festival, followed by a normal seasonal adjustment in April. In April, the number of existing home transactions on our platform did not experience the rapid decline seen in the same period of last year, instead recording a year-over-year increase of 14%. Cities such as Shanghai, Shenzhen, Nanjing, Hangzhou, Changsha, Wuhan and Xiamen saw a notable increase.

數據顯示，3月春節過後，市場出現復甦跡象，4月則經歷了正常的季節性調整。 4月份，我們平台上的二手房成交量並未像去年同期那樣快速下滑，反而較去年同期成長了14%。上海、深圳、南京、杭州、長沙、武漢和廈門等城市的成交量增幅尤為顯著。

At the same time, the recent trend indicates that the weekly transaction volume has not continued to decline sequentially. The total number of the existing home transaction on our platform increased by over 20% year-over-year for the first 3 weeks of May, while the GTV increased by over 10%, higher than the level of the decline from the higher base in the same period of last year.

同時，近期趨勢表明，每週交易量並未持續環比下降。 5月前三週，我平台現有房屋交易總量年增超過20%，而總交易額（GTV）成長超過10%，高於去年同期較高基數下的下降幅度。

Meanwhile, existing home prices are still in deep adjustment, while the market is in a state of decreasing price for increasing volume. Looking at the leading indicators, April's volume of the home tours were higher than last year's average, indicating that buyers are actively seeking to purchase homes. Meanwhile, so far in this year, the growth rate of both month-over-month and year-over-year in home listings in the top 50 key cities have a slowdown unlike in September of last year, with numbers of listings surged under the more policy loosenings.

同時，現有房屋價格仍在深度調整，市場呈現成交量增加但價格下降的趨勢。從領先指標來看，4月的房屋看房量高於去年平均水平，顯示購屋者正在積極尋找房源。此外，與去年9月份政策寬鬆導致掛牌量激增的情況不同，今年迄今為止，重點50個城市的房屋掛牌量環比和同比增速均有所放緩。

There has been no similar surge this year. Overall, people in the market have become more rational. In terms of the transaction structure, the proportion of the home purchase by the first-time buyers has increased in the short term, rising from around 30% to around 35%. This is partly due to the price adjustments and the easing policies, which have lowered the barriers of the cost for buyers, which need to, like school enrollment for their kids -- or the residential permit registration.

今年並未出現類似的激增。總體而言，市場參與者變得更加理性。從交易結構來看，首次購屋者的比例在短期內上升，從約30%升至約35%。這部分歸功於價格調整和寬鬆政策，這些措施降低了購屋者的成本門檻，例如子女入學或居住證登記等。

In addition, issues with new home pre-sales, lacking of effective supply and a trend towards the luxury housing have pushed some first-time home buyers out of the new home market. Positive trends in the first-time buyers entering the market are aiding at the front end of the housing upgrade chain, increasing the customer accumulation and activation.

此外，新房預售問題、有效供應不足以及高端住宅市場趨勢，已將部分首次購房者擠出了新房市場。而首次購屋者進入市場的正面趨勢，則有助於提升房屋升級鏈前端的顧客數量和活躍度。

For new home market, the new home market continued to see weakness in supply and demand with low expectations. From January to April, GTV of top 100 real estate companies declined by around 47% year-over-year. This is historic low.

新房市場供需持續疲軟，市場預期也較低。 1月至4月，前100名的房地產公司總成交額年減約47%，創歷史新低。

On the demand side, potential buyers with home upgrade demand are more focused on large-sized homes. Data from China Index Academy indicates that in key cities the proportion of the new home units with 4 or more rooms has increased from 21% in 2020 to 25% this year.

在需求方面，有房屋升級需求的潛在購屋者更傾向於選擇大戶型住宅。中國指數研究院的數據顯示，在重點城市，新建住宅中四房以上戶型的比例已從2020年的21%上升至今年的25%。

Additionally, a substantial demand for other type of new homes is flowing into the existing home market. On supply side, in light of sagging new home sales, developers are adopting pro-cyclical business strategy, getting back from the land acquisition and project launches within insufficient new effective supply and high inventory levels at the end of March 2024.

此外，對其他類型新房的大量需求正流入二手房市場。在供應方面，鑑於新房銷售疲​​軟，開發商正採取順週期經營策略，在2024年3月底新房供應不足、庫存水平高企的情況下，逐步減少土地收購和項目啟動。

For the CRIC data shows that the average inventory turnover period for the new homes in 80 cities was extended to 24.4 months. With the strengthening of policies, we believe that the expectation for new home market will improve.

根據CRIC的數據顯示，80個城市新房的平均庫存週轉期延長至24.4個月。隨著政策的加強，我們相信新房市場前景將會改善。

For your second question, this year, one of Beike's key focus areas is the construction of online infrastructure at the customer front end and the business leads acquisition.

關於你的第二個問題，今年貝殼重點關注的領域之一是客戶前端的線上基礎設施建設和業務線索獲取。

In the past, we firmly invested in solving the pain points that the customers encounter when actively searching for homes through our authentic listing and the home listing centric emphasis. In today's buyers' market, customers have a wider range of choices and longer decision-making periods, making it even more crucial to start from the customer perspective.

過去，我們一直致力於解決客戶在主動尋找房源時遇到的痛點，透過真實房源資訊和以房源為中心的策略來實現這一目標。在現今的買方市場中，客戶擁有更廣泛的選擇和更長的決策週期，因此從客戶角度出發顯得尤為重要。

We aim to provide the real and effective information and better understand and translate customer needs. Therefore, we are updating our ways of connecting with customers, our service models and the online content that we provide.

我們的目標是提供真實有效的訊息，更好地了解和轉換客戶需求。因此，我們正在更新與客戶的溝通方式、服務模式以及提供的線上內容。

Regarding the user connection methods, previously, users would only connect with us on the APP when they're needed. Now we have added proactive ways to connect with users, hoping to better utilize both internal and external traffic channels to proactively reach out to them.

關於用戶連線方式，以往用戶只有在需要時才會透過APP與我們聯繫。現在，我們新增了主動聯絡用戶的方式，希望更能利用內部和外部流量管道，主動接觸用戶。

For example, we use live streaming and short videos, which better align with user habits. In terms of the service models, we are making service provider rather than the house itself, the first online contact point for the customer. We believe that only by doing so can we better explore and understand customer needs and provide better services.

例如，我們使用直播和短視頻，這更符合用戶的使用習慣。在服務模式方面，我們讓服務提供者而非房屋本身成為客戶在線上接觸的第一點。我們相信，只有這樣才能更了解和理解客戶需求，並提供更優質的服務。

On this approach, we have introduced the new online roles for the service providers, such as streamers, house selection consultants. This will help build personal brands and attract customers. On the content front, in addition to the shelf-style information display, we have diversified our content, including market trends in commercial area, land auction information and the property analysis.

基於此，我們為服務提供者引入了新的線上角色，例如主播、房屋選擇顧問等。這將有助於他們建立個人品牌並吸引客戶。在內容方面，除了傳統的貨架式資訊展示外，我們還豐富了內容，涵蓋商業區的市場趨勢、土地拍賣資訊和房產分析等。

We explain property listing and provide professional home buying consultation services to short videos and the live streaming. One of our initiatives is the Galaxy Plan just as our Chairman introduced in his letter, which aims to cultivate the new media talent from the store owners and agents on our platform, helping them acquire customers to short video and live streaming on external video platforms, enhancing both agents and the platform transaction activity.

我們透過短視頻和直播等形式講解房源訊息，並提供專業的購屋諮詢服務。正如董事長在信中所述，我們的一項舉措是“銀河計劃”，旨在培養平台上的商家和經紀人的新媒體人才，幫助他們通過短視頻和直播在外部視頻平台獲取客戶，從而提升經紀人和平台的交易活躍度。

Currently, the Galaxy plan in Beike covers the 63 cities nationwide, empowering a total of over 12,000 people. The influencer network has accumulated tens of millions of the followers with more than 600 agents having over 10,000 followers each.

目前，貝殼的Galaxy計畫已覆蓋全國63個城市，惠及超過12,000人。其網紅網絡已累積數千萬粉絲，其中600多名代理商每人粉絲超過10,000人。

In the first quarter of 2024, a total over 2,000 housing transactions were achieved by the influencers through the new media customer acquisition, increasing by 103% year-over-year. We have also established a comprehensive empowerment system for the online influencers, including online and offline courses systems and the mentorship program.

2024年第一季度，網紅透過新媒體管道促成了超過2,000筆房屋交易，較去年同期成長103%。我們也為網路紅人建立了完善的賦能體系，包括線上線下課程體系和導師計畫。

This system covers the various stage of empowerment from the account incubation through long-term operation and business leads efficient conversion. In terms of the content, Beike's massive housing resources provide a strong content support for the agents. Meanwhile, we empower agents to improve their online influence through the various methods such as the sector analysis, property evaluation, dynamic maps and skills in popular tools and also the copyright.

該系統涵蓋從帳戶孵化到長期營運以及業務線索高效轉換等各階段的賦能。在內容方面，貝殼海量的房源資源為經紀人提供強大的內容支援。同時，我們透過產業分析、房產評估、動態地圖、熱門工具使用技巧以及版權等多種方式，賦能經紀人提升其線上影響力。

We also graded accounts based on the indicators such as the followers' numbers, conversion rate and the performance matching with their traffic support and other incentive mechanisms to give more streamer sustained growth on the long-term return opportunities.

我們還根據粉絲數量、轉換率以及與流量支援和其他激勵機制相符的表現等指標對帳戶進行評級，以便為更多主播提供持續成長的長期回報機會。

Your next question comes from Timothy Zhao with Goldman Sachs.

下一個問題來自高盛的趙添福。

I have 2 questions here. The first one is regarding our investments into the core home transaction business. I was just wondering can management share any color on what is our key focus for this year in terms of investments and how to evaluate the ROI of investments?

我有兩個問題。第一個問題關於我們對核心房屋交易業務的投資。我想請管理階層透露一下，今年我們在投資方面的重點是什麼，以及如何評估投資報酬率？

And we used to mention that for this year one of the big key focus is to increase the number of connected stores. Just wondering what is the latest updates? And how do you think about the efficiency impact on the existing stores from increasing connected store number?

我們之前提到過，今年的重點工作之一是增加連網門市的數量。請問目前進展如何？您認為增加連網門市數量會對現有門市的營運效率產生什麼影響？

And the second question is on our outlook for the new home sales, or the new home GTV on the platform after a relatively weak first quarter. Just wondering what is your outlook here?

第二個問題是關於我們對新房銷售或平台上新房總成交額（GTV）的展望，畢竟第一季表現相對疲軟。請問您對此有何看法？

Yes. Thank you, Timothy. For your first question, in this year, we are majorly focused on the growth with enhanced quality and efficiency with our housing transaction business, actively connecting with more high-quality brands, stores and agents is one of our main investment directions.

是的，謝謝你，提摩西。關於你的第一個問題，今年我們的主要重點是提高房屋交易業務的品質和效率，實現成長，積極與更多優質品牌、店鋪和代理商合作是我們的主要投資方向之一。

The results have surpassed our expectation in both scale and efficiency. On store connection, we have been proactively connecting with stores to our network since September last year. By end of the first quarter, the number of active stores increased by 1.4% compared to the previous quarter.

無論從規模或效率來看，結果都超出了我們的預期。在門市接入方面，我們自去年9月起就積極主動地將門市接入我們的網路。截至第一季末，活躍門市數量較上一季增加了1.4%。

In addition, over 1,000 new stores, including those being prepared for opening or signed in the first quarter. The 90-day retention rate of those newly connected stores remained at a high level of around 98%. Our market penetration has further improved, showing considerable gains in cities, for example, in Ningbo and Yantai.

此外，第一季新增門市超過1,000家，包括正在籌備開業或已簽約的門市。這些新接入系統的門市90天留存率維持在98%左右的高點。我們的市場滲透率進一步提升，在寧波、煙台等城市取得了顯著成長。

Regarding the efficiency, we have not lowered entry barrier of the threshold or so-called to sacrifice quality for the sake of expansion. The average number of agents per new store is slightly lower than that of the platform existing stores, but it maintains steady growth. The efficiency of newly connected stores continued to rise rapidly.

在效率方面，我們並未降低進入門檻，也沒有為了擴張而犧牲品質。雖然每家新店的平均代理商數量略低於平台現有門市，但保持了穩定成長。新接入門店的效率持續快速提升。

Other stores connected to since last September and up to March of this year. The average revenue per store was increased by 100% within 6 months of the operation. Moreover, by the end of March, the productivity per agent in these newly signed stores reached over 90% of that in the -- in the existing stores on the platform.

其他門市自去年九月至今年三月期間陸續接入平台。在營運六個月內，每家門市的平均收入成長了100%。此外，截至三月底，這些新簽約門市的每位代理商的生產力已達到平台現有門市的90%以上。

In addition, we are seeing that in the newly connected stores, some small stores such as family operated stores with around 2 agents have performed well due to their deep community involvement, especially considering for per capita efficiency. Within 3 months of the connecting to network, the agent productivity into small stores was a 16% higher than the average of agent productivity of stores connected during the same period.

此外，我們發現，在新接入網路的門市中，一些小型門市，例如只有大約兩名代理商的家庭式門市，由於其與社區的深度融合，表現優異，尤其是在人均效率方面。在網路後的三個月內，這些小型門市代理商的生產力比同期所有接入門店的平均生產力高出16%。

Those competitive small stores also inspire us to further connect with the various types of stores, enhancing our ability to serve them on the platform. We aim to implement more refined stores tier management. We also achieved better-than-expected ROI for those investments from the overall perspective. The stores newly connected in Q4 2023 achieved a positive ROI by March of this year.

這些競爭激烈的小型商店也激勵我們進一步與各類商店建立聯繫，從而提升我們在平台上服務它們的能力。我們的目標是實施更精細的商店層級管理。從整體來看，這些投資也獲得了超出預期的回報。 2023年第四季新接入平台的商店，到今年3月就實現了正回報。

In supporting our growth in scale, we are also very cautious with our investment strategy. We primarily provide performance-based support, such as the funding, storefront renovation and business development to newly connected stores rather than increasing personnel. This ensures the flexibility in our investment and streamlines our operation.

為了支持規模擴張，我們在投資策略上也十分謹慎。我們主要提供基於績效的支持，例如為新接入的門市提供資金、店面裝修和業務拓展，而不是增加員工人數。這確保了我們投資的靈活性，並簡化了營運流程。

For your second question, the new home market has remained tough since start of the year. In Q1, our new home GTV reached RMB 151.8 billion, a 45% drop year-over-year, but still better to the market. Revenue from new home transaction was RMB 4.92 billion, down 41.5% from the same period of last year. This smaller decline compared to the GTV shows our stronger monetization capabilities.

關於您的第二個問題，新房市場自年初以來一直較為疲軟。第一季度，我們的新房屋交易總額（GTV）為1,518億元，年減45%，但仍優於市場整體水準。新房交易收入為49.2億元人民幣，較去年同期下降41.5%。與交易總額相比，這一降幅較小，顯示我們擁有更強的變現能力。

We believe our new home business will continue to show greater resilience and solid performance. In Q1, we showcased the strength in multiple ways. Number one, we made a significant breakthrough in our channel service operation capabilities. This year the number of developers that achieved the strategic cooperation increased by 20% from the same period of last year. And the quality of those collaborations continued to improve, as we are expanding our coverage to most core and the large-scale state owned developers.

我們相信，新房業務將持續展現出更強的韌性和穩健的業績。第一季度，我們從多個方面展現了這一優勢。首先，我們在通路服務營運能力方面取得了重大突破。今年，達成策略合作的開發商數量較去年同期成長了20%。隨著我們不斷拓展業務範圍，涵蓋更多核心開發商和大型國有開發商，合作品質也持續提升。

We have already established strategic partnerships with the 6 out of the top 10 developers. Those high level of in-depth cooperation has facilitated our local teams to more actively pursue regional business expansion. We also made new breakthroughs in our cooperation terms. This includes not only strategic initiative from the past, but also the new guaranteed payment terms that ensure the improved cash collection from our new home business.

我們已與排名前十的開發商中的六家建立了戰略合作夥伴關係。這種高水準的深度合作使我們的本地團隊能夠更積極地擴展區域業務。同時，我們在合作條款方面也取得了新的突破。這不僅包括以往的策略性舉措，還包括新的付款保障條款，從而確保我們新房業務的現金回收更加順暢。

Based on those improvements, our new home cooperation project coverage ratio was 55% in Q1, an increase of 25% year-over-year. This has also led to a more stable supply of new homes.

基於這些改善措施，我們第一季的新房合作項目覆蓋率達到55%，較去年同期成長25%。這也使得新房供應更加穩定。

Number two, regarding our channel sell-through capability, as I mentioned earlier, we integrated our new and existing home business to develop an innovative model that make it easier for consumers to replace their old apartments with new ones. Considering customer needs, we also introduced a service like worry free repayment and the carefree renovation, collaborating with developers, banks and others to boost new home sales and address customers' home purchase challenges.

第二，關於我們的通路銷售能力，正如我之前提到的，我們整合了新房和二手房業務，開發了一種創新模式，讓消費者更容易用新房替換舊房。考慮到客戶需求，我們還推出了無憂還款和無憂裝修等服務，並與開發商、銀行等機構合作，以促進新房銷售，並解決客戶購房過程中遇到的難題。

Number 3, we're also strictly adhered to the risk control and the baseline management. In Q1, new home DSO was 69 days. The commission in advance model covered 46% of the total commission being at a high level. The percentage of commission from SOE developers remains at high at around 50%.

第三，我們也嚴格遵守風險控制和基準管理。第一季度，新房的DSO（交付週期）為69天。預付佣金模式涵蓋了總佣金的46%，處於較高水準。國營企業開發商的佣金比例也維持在50%左右的高點。

Your next question comes from Griffin Chan with Citi.

下一個問題來自花旗銀行的 Griffin Chan。

So my question is about home replacement policies. The whole government ruled out replacement policies to support upgrade demand. How does the management view the effect on overall housing demand? And how will Beike as a service leader in the new and existing home market to participate?

所以我的問題是關於房屋置換政策的。政府已經全面否決了房屋置換政策以支持升級需求。管理階層如何看待這對整體住房需求的影響？作為新房和二手房市場的服務領導者，貝科將如何應對？

Thank you, Griffin. For policy on inventory reduction, Everyone is very focused on the inventory reduction of so-called destocking policy, which is a positive approach in response to evolving supply and demand dynamics. The destocking policy has been reintroduced since its last implementation in the year of 2016.

謝謝格里芬。關於庫存削減政策，大家都非常關注所謂的去庫存政策，這是一種積極應對不斷變化的供需動態的方法。去庫存政策自2016年上次實施以來，已重新推出。

A new round of inventory reduction efforts is expected to help rebalance market supply and demand and improved market sentiment also stabilized the price system in the market. It will also help developers to sell off inventory and improve liquidity, supporting stabilization in the new home market and ensuring project completion.

新一輪庫存削減措施可望協助重新平衡市場供需，市場情緒的改善也有助於穩定市場價格體系。此外，這將有助於開發商銷售庫存，提高流動性，從而支持新房市場的穩定，並確保項目順利完工。

Government-led repurchase of the homes for the conversion into affordable housing will also better met the housing needs of the new urban residents. Currently, the relevant supporting policies are still in the formation stage. For example, the Central Bank will provide CNY 300 billion in relending funds to support the local governments in acquiring some unsold homes and to convert them into affordable housing.

政府主導的房屋回購計劃，旨在將其改造為保障性住房，這將更好地滿足新城鎮​​居民的住房需求。目前，相關配套政策仍在製定中。例如，央行將提供3,000億元的再貸款資金，支持地方政府收購部分滯銷房屋並將其改造為保障性住宅。

More time is needed to observe the scope and impact of this policy's implementation. The other one is the major policy innovation this year regarding the destocking is initiatives to encourage residents to replace their old homes with new ones. This is the first time a policy has linked to previously independent existing and the new homes market.

還需要更多時間來觀察這項政策實施的範圍和影響。今年關於減少房屋庫存的另一項重大政策創新是鼓勵居民用新房子置換舊房子。這是首次將先前各自獨立的現有房屋市場和新房市場連結起來的政策。

This is intended to stimulate the transactions and contributed to the stability of the market going forward. As of now, over 60 cities had introduced the housing old for new policies, generally falling into 2 categories that is brokerage agency-led models and the government-led models through the subsidy or the acquisition of the old home through the state-owned enterprise or developers.

此舉旨在刺激交易，並有助於市場未來的穩定發展。截至目前，已有超過60個城市推出了以舊換新的住房政策，這些政策大致可分為兩類：一類是由中介機構主導的模式，另一類是由政府主導的模式，政府透過補貼或國有企業或開發商收購舊房來實現這一目標。

Regarding the Beike's participation opportunities, we would like to say where developer agents and the homebuyer sign agreement and also under this model. This will promote the old homes and the buyer locking in the new home listing. We have been deeply involved and actively promoting this implementation. We pioneered old for new models in Qingdao in the year of 2022 in collaboration with developers and the stores on our platform.

關於貝可的參與機會，我們想說明的是，開發商代理和購屋者可以在此模式下簽訂協議。這將有助於舊房出售，並幫助購屋者鎖定新房房源。我們一直積極參與並推動此模式的實施。 2022年，我們與開發商和平台上的商家合作，在青島率先推出了「舊房換新房」模式。

This initiative brought innovative practice to local government by activating transactions and has inspired other city governments and the industrial association to reference and promote the Qingdao model. In Qingdao, our model has also received government endorsement and a substantial support in the form of one-stop administrative services.

這項舉措透過啟動交易，為地方政府帶來了創新實踐，並啟發了其他市政府和行業協會借鑒和推廣青島模式。在青島，我們的模式也獲得了政府的認可和大力支持，包括一站式行政服務。

With our strong capabilities in existing home sell-through and the coverage of the homeowners for sell one and buy one transaction, we helped developers attract additional and incremental buyers to accelerate the sales of new homes and collect back funds, offering a more efficient and lower risk of housing exchange experience to the client.

憑藉我們在現有房屋銷售方面的強大能力以及對「賣一買一」交易的業主覆蓋範圍，我們幫助開發商吸引更多增量買家，加速新房銷售並收回資金，為客戶提供更有效率、風險更低的房屋交換體驗。

Under our innovative, sell old homes for new ones model in Qingdao in the year of 2023, we completed nearly 200 transactions. Original dormant deals were activated under this model. Currently, such model known as a worry free exchange, has already been introduced in 12 cities.

2023年，我們在青島推行了創新的「舊房換新房」模式，完成了近200筆交易，啟動了原本閒置的房產計畫。目前，這種被稱為「無憂置換」的模式已在12個城市推廣。

We're also engaging with developers in more cities to iterate and innovate on this model. Looking forward, we hope to explore more new methods with the government and developers to accelerate the inventory reduction.

我們也在與更多城市的開發商合作，不斷迭代和創新這個模式。展望未來，我們希望與政府和開發商共同探索更多新方法，以加快庫存削減。

Your next question comes from John Lam with UBS.

下一個問題來自瑞銀集團的John Lam。

Could management share a bit about the decoration business and also the window home services business in terms of the progress and also any highlights?

管理階層能否介紹一下裝飾業務和門窗服務業務的進度以及亮點？

Thank you, John. Let me talk about the home renovation and furnishing services. We achieved strong growth in our home renovation and furnishing business in Q1. As for scale, our contract sales reached RMB 3.4 billion, up 26% year-over-year, with revenue growing by 71% to reach RMB 2.4 billion. In March, the total contract sales reached nearly RMB 2 billion, up around 53% year-over-year. The March contracted sales in Beijing achieved a historic breakthrough.

謝謝約翰。讓我來談談居家裝潢及家具服務。第一季度，我們的家居裝修及家具業務實現了強勁成長。規模方面，合約銷售額達34億元，年增26%；營業收入成長71%，達24億元人民幣。 3月份，合約銷售額接近人民幣20億元，較去年同期成長約53%。 3月北京地區的合約銷售額更是取得了歷史性突破。

On the operations side, the contribution of the contracted sale attributable to the customer referral from our real estate agents in Q1 also hit its record high. This achievement resulted from the improvement of our customer acquisition ability and also the stronger delivery capability.

在營運方面，第一季由房地產經紀人推薦促成的簽約銷售額也創下歷史新高。這項成績得益於我們客戶獲取能力的提升以及交付能力的增強。

Let me elaborate on that. First, better integration for our housing transaction and the home renovation services, highly improved our customer acquisition capability. In 2023, we aligned with our organizational structure, enabling each renovation business unit to work with brokerage stores. In turn, renovation business also helps some home transactions.

讓我詳細解釋一下。首先，我們更好地整合了房屋交易和房屋裝修服務，大大提升了客戶獲取能力。 2023年，我們調整了組織架構，使每個裝修業務部門都能與經紀公司合作。反過來，裝修業務也促成了一些房屋交易。

Customers received a rough plan and budget for the home renovation before the housing transactions are completed. Our one-stop residential service model is taking initial shape. Meanwhile, the improving customer acquisition requires strong delivery capabilities.

在房屋交易完成之前，客戶就收到了房屋裝修的初步方案和預算。我們的一站式住宅服務模式正在逐步成型。同時，不斷提升的客戶獲取能力也需要強大的服務交付能力。

Our great efforts in delivery capability over the past few years have paid off. For instance, our average construction time line dropped to 104 days in this Q1, decreasing by around 18 days compared to the same period of last year. We used a strategy that encourages healthy competition to ensure sufficient labor capabilities.

過去幾年我們在提升交付能力所做的努力已經取得了成效。例如，今年第一季我們的平均工期縮短至104天，比去年同期減少了約18天。我們採取了鼓勵良性競爭的策略，以確保充足的勞動力供應。

We also managed key process points strictly, including identifying potential delay risks ahead of time to resolve the problem quickly and avoid delays. In this year, while ensuring steady growth in our business scale, we will focus on enhancing quality by implementing one-stop site management services and online quality control. We aim to proactively prevent issues, reduce their occurrence and improve customer satisfaction.

我們也嚴格把控關鍵流程環節，包括事先辨識潛在的延誤風險，以便快速解決問題，避免延誤。今年，在確保業務規模穩定成長的同時，我們將專注於提升服務質量，並推動一站式現場管理服務和線上品質控制。我們的目標是主動預防問題，減少問題發生，並提高客戶滿意度。

Regarding the Beike rental business, in Q1, revenue from Beike rental services reached RMB 2.63 billion, increasing by 189.3% year-over-year, mainly due to the rapid increase in scale of rental property management services. Under our Carefree Rent model, we are managing over 240,000 units by end of this Q1 compared to over 90,000 in the same period of last year.

貝科租賃業務方面，第一季貝科租賃服務收入達26.3億元人民幣，較去年同期成長189.3%，主要得益於租賃物業管理服務規模的快速成長。在「安心租」模式下，截至本季末，我們管理的物業數量超過24萬套，而去年同期為9萬套。

As of now, we have a total of nearly 270,000 units managed by Carefree Rent. The number of units managed under the centralized long-term apartment exceeded 11,000 by end of Q1 compared to around 7,000 in the same period of last year. In terms of efficiency improvements and the operational risk control, the occupancy rate for Carefree Rent model increased by around [2.7%] (corrected by company after the call) year-over-year to 96.5% at the end of Q1.

截至目前，我們旗下「無憂租」管理的公寓單位總數近27萬套。截至第一季末，集中式長期公寓管理的單位數量超過1.1萬套，而去年同期約為7,000套。在效率提升和營運風險控制方面，「無憂租」模式的入住率年增約2.7%（公司在電話會議後進行了修正），第一季末達到96.5%。

We significantly reduced the risk of the vacancies by increasing coverage of low-risk Carefree Rent model and clearing out a batch of long-term vacant properties. Also at the end of the first quarter, the occupancy rate of our self-operated apartments that have opened for over 6 months increased by around [3.8%] (corrected by company after the call) year-over-year, reaching 94.8%.

我們透過擴大低風險的「無憂租屋」模式的覆蓋範圍，並清理一批長期空置房產，顯著降低了空置風險。此外，截至第一季末，我們自營公寓（已開業超過6個月）的入住率年增約3.8%（公司在電話會議後進行了修正），達94.8%。

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

今天的電話會議即將結束。現在我將把電話交給今天的主持人李思婷女士，請她作總結發言。

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. This concludes today's call. And we look forward to speaking with you again next quarter. Thank you and goodbye.

再次感謝您今天參加我們的電話會議。如果您有任何其他疑問，請隨時透過我們網站上提供的聯絡方式聯繫貝殼投資者關係團隊。今天的電話會議到此結束。我們期待下個季度再次與您交流。謝謝，再見。