Ke Holdings Inc (BEKE) 2024 Q3 法說會逐字稿

Hello, ladies and gentlemen. Thank you wefor standing by for KE Holdings, Inc.'s third-quarter 2024 earnings conference call. (Operator Instructions) Today's conference call is being recorded.

女士們、先生們，大家好。感謝您出席 KE Holdings, Inc. 的 2024 年第三季財報電話會議。（操作員指示）今天的電話會議正在錄音。

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

現在我將電話轉接給你們的主持人，公司IR總監李思婷女士。請繼續，賽廷。

Thank you, operator. Good evening, and good morning, everyone. Welcome to KE Holding's Beike's third-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.

謝謝你，接線生。大家晚上好，早安。歡迎參加貝科控股旗下貝殼2024年第三季財報電話會議。該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，並發佈在該公司的投資者關係網站 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.

出席今天的電話會議的有我們的共同創辦人、董事長兼執行長彭士丹先生；徐濤先生，我們的執行董事兼財務長。彭先生將概述我們的策略和業務發展；徐先生將提供有關公司財務業績的更多細節。

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.

在我們繼續之前，我請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，因為我們將做出前瞻性聲明。另請注意，北科的收益新聞稿和本次電話會議包括對未經審計的 GAAP 財務資訊以及未經審計的非 GAAP 財務指標的討論。

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.

請參閱該公司的新聞稿，其中包含未經審計的非公認會計原則措施與可比較公認會計原則措施的調節表。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。

Certain statistical and other information relating to the industry in which the company is engaged to be mentioned in this call has been obtained from various publicly available official or unofficial resources. Neither the company nor any of its representatives have independently verified such data which may involve a number of assumptions and limitations, and you are cautioned not to give undue way to such information and estimation. For today's call, management will use English as the main language. Please note that the Chinese translation is for convenience purpose only. In case of any discrepancy, management statements in their original language will prevail.

本次電話會議中提到的與該公司從事的行業相關的某些統計數據和其他資訊是從各種公開的官方或非官方資源獲得的。本公司及其任何代表均未獨立驗證此類數據，這些數據可能涉及許多假設和限制，請注意不要對此類資訊和估計給予不當的認可。對於今天的電話會議，管理層將使用英語作為主要語言。請注意，中文翻譯僅供方便之用。如有任何差異，以原始語言的管理層聲明為準。

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

現在，我將把電話轉給我們的董事長兼執行長彭定康先生。請繼續，史丹利。

Thank you, Siting. Hello, everyone. Thank you for joining Beike's third-quarter 2024 earnings conference call. In the third quarter, we continued demonstrating our dynamics and sustainable growth momentum. Despite challenges in the market, each of our business segments delivered solid results.

謝謝你，席廷。大家好。感謝您參加北科2024年第三季財報電話會議。第三季度，我們持續展現活力和永續成長動力。儘管市場面臨挑戰，我們的各個業務部門仍取得了穩健的表現。

GTV for our existing home transaction business reached RMB477.8 billion in the third quarter, up 8.8% year-over-year. According to the estimate from data disclosed by the housing bureaus and housing associations of the first-tier cities, total number of online registered transactions for existing home grew by about 21% year-over-year in the third quarter. While the number on Beike platform soared by 44% year-over-year for reference.

第三季現房交易業務GTV達人民幣4,778億元，較去年成長8.8%。根據第一線城市房管局、房協揭露的數據測算，第三季現房網上登記交易總量年增約21%。而北科平台的參考人數則是年增44%。

For new home transactions, GTV on Beike platform increased by an impressive 18% to RMB227.6 billion in the third quarter, while new home transaction GTV or CRIC top 100 developer declined 29% year-over-year. In the third quarter, our home renovation and furnishing and home rental services revenue grew year-over-year by around 33% and 118%, respectively.

新房交易方面，北科平台GTV第三季成長18%，達到2,276億元人民幣，而CRIC百大開發商的新房交易GTV較去年同期下降29%。第三季度，我們的家居裝修及家居和房屋租賃服務收入較去年同期分別成長約33%和118%。

At the end of Q3, a noticeable shift in policy also boost a solid market rebound. In this market cycle, one thing we have become increasingly certain about is the importance of thinking long term. We are growing to deeply understanding the power of our long-term perspective for our organization survival and development are our core imperatives.

三季末，政策的明顯轉變也推動了市場的強勁反彈。在這個市場週期中，我們越來越確定的一件事是長期思考的重要性。我們越來越深刻地認識到我們的長期願景對我們組織的生存和發展的力量是我們的核心當務之急。

Among this, our foremost priority is to survive, enduring and surviving, therefore, our focus is not just how to navigate next year, but on how to become a company that can survive for 30, 50 or even 100 years. The greatest threat to our company's longevity and rigidity, bureaucracy and loss of vitality to grow and innovate. To truly last, a company needs two things. the first is integrity, doing the right things and create value for society. And second, creativity. Every step we take today is guided by these principles, doing the right things, even if it's difficult and fostering creativity. This is how we will become a company that they stand the test of time.

其中，我們的首要任務是生存、持久、生存，因此，我們關注的不僅是明年如何航行，而是如何成為一家能夠生存30年、50年甚至100年的公司。對我們公司長壽的最大威脅是僵化、官僚主義和失去成長和創新的活力。為了真正持久，公司需要兩件事。首先是誠信，做正確的事，為社會創造價值。第二，創造力。我們今天採取的每一步都遵循這些原則，做正確的事情，即使這很困難，並培養創造力。這就是我們如何成為一家經得起時間考驗的公司。

Let me share how we are putting this vision into action. For any large organization, the biggest threat is lack of growth. The proactive of business growth strategy we put in place this year has yielded remarkable results. In terms of scale, by the end of the third quarter, we have increased the number of active stores on our platform by 14.6% year-over-year, with a net additional almost 6,000 stores compared with the same period last year.

讓我分享一下我們如何將這個願景付諸行動。對於任何大型組織來說，最大的威脅是缺乏成長。今年我們實施的積極主動的業務成長策略取得了顯著成效。從規模來看，截至三季末，我們平台活躍店鋪數量年增14.6%，較去年同期淨增近6,000家。

We now have more than of 46,800 active stores. The number of active agents also grew to over 420,000, which means we added 24,000 agents since the third quarter of last year. Our strategic collaboration in the new home markets now span all top-tier developers. In August, the number of transactions from our strategic partner developers accounted for 26% of our total new home transactions.

我們現在擁有超過 46,800 家活躍商店。活躍客服人員數量也成長至超過 42 萬名，這意味著自去年第三季以來我們增加了 24,000 名客服人員。我們在新房市場的策略合作現已涵蓋所有頂級開發商。8月份，策略夥伴開發商的交易量占我們新房交易總額的26%。

We also made strides in improving store and platform operating efficiencies. In the third quarter, the average revenue per store on our platform, excluding Beijing and Shanghai, surpassed levels from the same period in previous years. The support ratio of platform staff to frontline agents also reached a record high. We also maintained robust risk control and strive for higher service quality. The right mechanisms are also crucial for fostering organizational creativity.

我們在提高商店和平台營運效率方面也取得了長足進步。第三季度，除北京、上海外，平台單店平均收入超過往年同期水準。平台工作人員對第一線代理商的支援比例也創歷史新高。我們也保持穩健的風險控制，努力提升服務品質。正確的機制對於培養組織創造力也至關重要。

In the third quarter, we officially established a small leadership committee as an innovative step towards rethinking large organizations governance. It's a governance system that ensure forward-thinking and our long-term outlook. After a year of trail implementation, the committee is now officially in place. It consists of the leaders of our main business lines as well as the head of our finance and HR departments. Xu Wangang, Li Fengyan, Wang Yongqun, Xu Tao and Zuo Donghua.

第三季度，我們正式成立了一個小型領導委員會，作為重新思考大型組織治理的創新步驟。這是一個確保前瞻性思維和長期前景的治理體系。經過一年的試點實施，該委員會現已正式成立。它由我們主要業務線的領導以及財務和人力資源部門的負責人組成。徐萬剛、李鳳艷、王永群、徐濤、左東華。

The committee will report directly to me, and is tasked with carefully considering and planning the Company's key strategies and initiatives. Its goal is to ensure collaborative leadership, clear accountability and continuous self-reflection. By design, this model brings together diverse perspectives to help us make better decisions and strengthen our unity as a team. In the future, we will continue to refine and promote the innovation of our company's governance mechanism to further strengthen our leadership framework.

該委員會將直接向我匯報，並負責仔細考慮和規劃公司的關鍵策略和舉措。其目標是確保協作領導、明確的責任和持續的自我反思。透過設計，這個模型匯集了不同的觀點，幫助我們做出更好的決策並加強我們作為一個團隊的團結。未來，我們將持續改善並推動公司治理機制創新，進一步強化領導架構。

In addition, we officially appointed the CEOs of our new initiative businesses. Xu Wangang, who has already been serving as the CEO of Beihaojia, will now also lead our home renovation and furnishing business. Wang Yongqun will head our home rental services business and also continue in his role as the COO of Lianjia. They will both report to me. These appointments reflect our commitment to tackling future challenges and our focus on aligning resources to achieve greater synergies across the Group.

此外，我們也正式任命了新舉措業務的執行長。已擔任北豪家CEO的徐萬剛也將領導北豪家的家居裝修及家居業務。王永群將負責我們的房屋租賃服務業務，並繼續擔任鍊家首席營運長。他們都會向我報告。這些任命反映了我們對應對未來挑戰的承諾，以及我們對整合資源以在整個集團內實現更大協同效應的關注。

With development over the past few years, our home renovation and furnishing, and home rental services businesses have achieved several key milestones. In the first three quarters of this year alone, revenue from our home renovation and furnishing business surpassed RMB10 billion across more than 45,000 projects.

經過過去幾年的發展，我們的家居裝修及家居、房屋租賃服務業務已取得多個重要里程碑。光是今年前三季度，我們的家裝業務收入就超過100億元人民幣，項目超過45,000個。

Revenue from our home rental services business approached RMB10 billion during the first three quarters, with the number of rental units managed under Carefree Rent exceeding 360,000. I am truly grateful to our excellent team for fostering these achievements. That said, we have more work to do. There are still many fundamental unresolved problems in the industry. We will iterate our scientific management and other capabilities to address the industry's underlying issues related to quality and commitment, among others.

前三季度，我們的房屋租賃服務業務收入接近人民幣100億元，安心租管理的租賃單位數量超過36萬套。我衷心感謝我們優秀的團隊促成了這些成就。也就是說，我們還有更多工作要做。業界仍有許多根本性問題尚未解決。我們將迭代我們的科學管理和其他能力，以解決行業中與品質和承諾等相關的根本問題。

We hope that when people talk about this industry and our brand in a few years, they will say, your quality is exceptional. Today, we are at a pivotal moment in this undertaking. Over the next two years, we will strengthen our core capabilities to reach our vision.

我們希望幾年後當人們談論這個行業和我們的品牌時，他們會說，你們的品質非常出色。今天，我們正處於這項事業的關鍵時刻。未來兩年，我們將加強核心能力以實現我們的願景。

For our platform ecosystem, we are more committed than ever to working with store owners and store managers. They are the high-frequency players in this low-frequency industry. Our top priority is helping them achieve better returns. If they adopt a long-term mindset, our platform can achieve lasting growth. In the third quarter, we introduced new operational mechanisms to support this goal.

對於我們的平台生態系統，我們比以往任何時候都更致力於與店主和商店經理合作。他們是這個低頻產業的高頻玩家。我們的首要任務是幫助他們獲得更好的回報。如果他們採取長期思維，我們的平台就能達到持久成長。第三季度，我們引入了新的營運機制來支持這一目標。

We launched a store points incentive program that rewards store owners for long-term platform loyalty, strong performance, integrity and innovative business practices. This initiative is to significantly enhance store owners' satisfaction and allegiance to our platform. In Q3, we distributed around RMB18 million in cash equivalent incentives to store owners in pilot cities.

我們推出了商店積分激勵計劃，獎勵長期平台忠誠度、強勁業績、誠信和創新業務實踐的店主。這項措施旨在顯著提高店主對我們平台的滿意度和忠誠度。第三季度，我們向試點城市的店主發放了約1,800萬元人民幣等值現金獎勵。

Take Shenzhen, one of our pilot cities, as an example. Over the past two to three years, more than 1,000 new stores have joined our network in Shenzhen. While growing in scale, these new stores faced three major challenges: insufficient emphasis on existing home transactions, slow progress in the new initiatives like home renovation and rentals, and weak collaboration across the platform with relatively high post-transaction customer complaint rates.

以我們試點城市之一的深圳為例。過去兩三年，我們在深圳新增了 1,000 多家新店。這些新店在規模不斷壯大的同時，也面臨三大挑戰：對現房交易重視不夠，裝修、租賃等新業務進展緩慢，全平台協作不力，交易後客訴率較高。

We tailored specific incentives within the store points system to address these issues and motivate positive change. Stores can now receive 20% extra bonus points for completing existing home listing transactions. They also receive 2 times to 3 times bonus points for conducting non-housing transaction businesses. Stores are also awarded separate bonus points if they have been in our network for a long time and have a history of compliance and collaboration.

我們在商店積分系統中製定了具體的激勵措施來解決這些問題並激勵積極的變革。現在，商店完成現有房屋掛牌交易即可獲得 20% 的額外獎勵積分。辦理非房屋交易業務還可獲得2倍至3倍獎勵積分。如果商店已經在我們的網路中存在很長時間並且有合規和合作的歷史，那麼它們也會獲得單獨的獎勵積分。

Store owners can convert their points into additional benefits. In October, store owners in Shenzhen received a total of RMB2.49 million equivalent incentives and 930,000 Beike coins, with top single store receiving RMB210,000 equivalent incentives. Notably, the platform's profit-sharing payouts to store owners boosted their income, offsetting the costs of renting a storefront.

店主可以將積分轉換為額外福利。10月，深圳店主共獲得等值獎勵249萬元、貝殼幣93萬，其中單店排名靠前的店主獲得等值獎勵21萬元。值得注意的是，該平台向店主的利潤分享增加了他們的收入，抵消了租用店面的成本。

At the same time, we effectively addressed the three core problems. Monthly existing home transactions began to recover and increased by 12% sequentially in September. Number of units leased out under Carefree Rent grew by 21% in Q3 compared with Q2. And cross-store existing home transactions reached 74.5% of total transactions, a record high.

同時，有效解決了三個核心問題。9 月現房每月交易開始復甦，較上季成長 12%。第三季 Carefree Rent 出租的單位數量比第二季增加了 21%。而跨店現房交易量達到總交易量的74.5%，創歷史新高。

Of course, these metrics only indicate short-term achievements. More importantly, our goal is to use the store membership points system to encourage store owners to think long-term, share value with them, and provide a clear development path on the platform, driving growth for both stores and the platform.

當然，這些指標僅顯示短期成就。更重要的是，我們的目標是利用店舖會員積分制度，鼓勵店主長遠思考，與店主分享價值，為平台提供清晰的發展路徑，帶動店鋪和平台共同成長。

Moving on to our to brand, Lianjia, we have continued to advance its Take-off Plan this year. Our decision to invest in Lianjia during tough market adjustments is also firmly rooted in our long-term vision. First, Lianjia is the cornerstone of our one body, three wings strategy. Maintaining Lianjia's solid fundamentals is critical while we promote its expansion based on sustainable operations and ongoing efficiency.

鍊家品牌今年持續推進起飛計畫。我們在市場的嚴峻調整中決定投資鏈家，也是基於我們的長期願景。第一，鏈家是我們一體三翼策略的基石。在我們以永續營運和持續效率為基礎推動鏈家擴張的同時，保持鍊家堅實的基礎至關重要。

Lianjia also needs to lead the way in innovation and be the frontrunner in tackling industry challenges, reconstructing organizational capabilities and advancing agents' professional development. The number of Lianjia's active agents grew by almost 13% year-over-year, exceeding 110,000. The Lianjia agent attrition rate in cities, excluding Beijing and Shanghai, dropped to 4.4% by the end of September, down 0.4 percentage-points from 2023.

鏈家也需要在創新上走在前列，成為應對產業挑戰、重構組織能力、推動代理商專業發展的領跑者。鏈家活躍代理商數量年增近13%，超過11萬。截至9月底，除北京和上海以外的城市鏈家代理商流失率下降至4.4%，較2023年下降0.4個百分點。

In addition, we also continued to make headway in the large-store model, with the average number of agents per store across Lianjia nationwide climbing to 19.2. As of September, nearly 3,800 Lianjia manager-level employees and above had trained in the Lianjia Large Store Leadership Development Program.

此外，我們在大店模式上也持續取得進展，鏈家全國平均每店代理商數量攀升至19.2人。截至9月，已有近3,800名鏈家經理級及以上員工接受了連鎖大店領導力發展計畫的培訓。

To sustain creativity, we will consistently map out new opportunities and possibilities for the future. We cannot afford to wait until growth slows down to start innovating, nor should we fall into complacency or simply defend what we have. Instead, we must plan ahead, remain open to embracing new ideas, and invest in long-term strategies.

為了保持創造力，我們將持續為未來規劃新的機會和可能性。我們不能等到成長放緩才開始創新，也不應該自滿或只是捍衛我們所擁有的東西。相反，我們必須提前規劃，保持開放的態度接受新想法，並投資於長期策略。

That said, we won't make blind bets. Each segment in our industry is substantial, and entering any new venture requires intensive decision-making process. Our approach includes extensive forethought, pilot trials by dedicated teams and deep engagement. A thorough understanding is essential before taking any action, we don't rush. Our underlying rationale for exploring Beihaojia's business opportunities.

也就是說，我們不會盲目下注。我們行業的每個細分市場都很重要，進入任何新企業都需要密集的決策過程。我們的方法包括廣泛的深思熟慮、專門團隊的試點試驗和深入參與。在採取任何行動之前，徹底的了解是至關重要的，我們不急。我們探索北豪家商機的根本原因。

Lastly, we are greatly encouraged by the central government's recent positive statements, and a series of coordinated policy measures to support stabilize the property market. Since the end of September, the market's reaction has been strong and far-reaching. We're now seeing signs of market recovery, with regards to both volume and prices.

最後，中央政府近期的積極表態以及一系列協調一致的支持穩定房地產市場的政策措施令我們深受鼓舞。自9月底以來，市場反應強烈且影響深遠。我們現在看到市場在數量和價格方面復甦的跡象。

As we navigate through highs and lows, we must remain calm at the peaks, steadfast at the troughs, and grounded in the reality in between, this is how we find true stability. With the broader environment improving, the truths we have learned during this period of market adjustment are clear. Staying committed to the long term, maintaining optimism, fostering resilience and unity. These truths, and the bold efforts we made in challenging times, will enable us to go even further in a more favorable environment.

當我們經歷高潮和低潮時，我們必須在高峰時保持冷靜，在低潮時保持堅定，在兩者之間立足於現實，這樣才能找到真正的穩定。隨著大環境的好轉，我們在這次市場調整中得到的真相已經很清楚了。致力於長期發展，保持樂觀，培養韌性和團結。這些真理，以及我們在充滿挑戰的時期所做的大膽努力，將使我們在更有利的環境中走得更遠。

Thank you. Next, I would like to turn the call over to our CFO, Xu Tao, to review our third-quarter 2024 financials.

謝謝。接下來，我想請我們的財務長徐濤回顧我們 2024 年第三季的財務狀況。

Thank you, Stanley, and thank you everyone for joining us. Before we dive into our Q3 performance, I would like to briefly touch on some updates in the housing market.

謝謝你，史丹利，也謝謝大家加入我們。在我們深入探討第三季的表現之前，我想先簡單介紹一下房地產市場的一些最新情況。

The market's performance in Q3 was in line with our previous projections. The market experienced gradually retreated following the pulse-like rebound fueled by intensive supportive policies released in May. Particularly in September, the year-over-year decline in market performance widened due to higher base.

第三季的市場表現符合我們先前的預測。5月份，在政策密集推出的刺激下，市場出現脈衝式反彈，逐漸回落。特別是9月份，由於基數較高，市場表現較去年同期降幅擴大。

In Q3, the existing home market was relatively stable, with a year-over-year increase in transaction volume. This was primarily attributed to home buyers' preference for readily available existing homes. In comparison, the new home market was still in a bottoming-out stage with weak supply and demand, as it would take time to resolve real estate developers' debt risks.

三季度，現房市場相對穩定，成交量較去年同期成長。這主要歸因於購屋者對現成房屋的偏好。相較之下，新房市場仍處於觸底階段，供需疲軟，房地產開發商債務風險的化解尚需時日。

By the end of September, there was an intensive array of real estate policies from the central and local authorities. These included lowering interest rates, reducing mortgage rates for existing homes, and aligning the minimum down payment ratio for first-time and second-time home buyers. These policies further stimulated housing demand, encouraging more people to enter the market. Meanwhile, other macro-economic policy such as monetary policies indirectly fueled market confidence, which stimulated market activity. We are highly anticipating the market's performance after the third quarter.

9月底，中央和地方房地產政策密集出台。其中包括降低利率、降低現有房屋抵押貸款利率，以及調整首次和第二次購屋者的最低首付比例。這些政策進一步刺激了住房需求，鼓勵更多人入市。同時，貨幣政策等其他宏觀經濟政策也間接提振了市場信心，刺激了市場活躍度。我們非常期待第三季之後的市場表現。

Turning to our financial performance in Q3. Our total GTV reached RMB736.8 billion, up 12.5% year-over-year. Net revenue was RMB22.6 billion, representing a year-over-year increase of 26.8%. Gross margin declined by 4.7 percentage-points year-over-year to 22.7%.

轉向我們第三季的財務業績。總GTV達人民幣7,368億元，年增12.5%。淨收入為人民幣226億元，較去年成長26.8%。毛利率年減4.7個百分點至22.7%。

GAAP net income reached RMB1.2 billion, showing a year-over-year decrease of 0.2%. Non-GAAP net income reached RMB1.8 billion, reflecting a year-over-year decrease of 17.5%. Non-GAAP net income exceeded market consensus.

GAAP淨利達12億元，年減0.2%。非美國通用會計準則淨利達人民幣18億元，較去年同期下降17.5%。非公認會計準則淨利超出市場共識。

Moving to our home transaction services. Revenue from existing home transactions reached RMB6.2 billion, down 1.4% year-over-year and 15.2% quarter-over-quarter. GTV was RMB477.8 billion, up 8.8% year-over-year and down 16.3% quarter-over-quarter. Our GTV and revenue showed similar sequential declines, keeping our monetization rate relatively stable. Year-over-year GTV growth surpassed revenue, which was mainly due to a higher contribution from GTV of existing home transaction services facilitated by connected agents.

轉向我們的家庭交易服務。二手房交易收入達人民幣62億元，較去年同期下降1.4%，季減15.2%。GTV為人民幣4,778億元，較去年成長8.8%，季減16.3%。我們的 GTV 和收入也出現了類似的連續下降，使我們的貨幣化率保持相對穩定。GTV 的同比增長超過了收入，這主要是由於互聯代理推動的現房交易服務的 GTV 貢獻較高。

Their revenue was recorded on a net basis. The contribution margin from existing home transaction services reached 41%, a decline of 7.7 percentage-points year-over-year and 6.5 percentage-points quarter-over-quarter. This decrease was primarily due to increased fixed labor costs related to an increased number of agents and improved welfare of agents under the retreated market circumstances.

他們的收入是按淨額記錄的。二手房交易服務貢獻率達41%，較去年同期下降7.7個百分點，季減6.5個百分點。這一下降主要是由於在市場回落的情況下，與代理商數量增加以及代理商福利改善相關的固定勞動力成本增加。

In terms of new home transaction services, although the market remained sluggish, we significantly outperformed the market across various metrics. CRIC shows that sales from the Top 100 developers decreased by around 29% year-over-year and around 27% sequentially in Q3. In contrast, our new home GTV reached RMB227.6 billion in Q3, up 18.4% year-over-year while down 3.3% quarter-over-quarter. This remarkable performance, notably above the industry's, was mainly propelled by deeper cooperation with developers and our refined operations that strengthened our capabilities.

新房交易服務方面，儘管市場依然低迷，但我們在各項指標上均明顯優於市場。CRIC顯示，第三季百強開發商的銷售額年減約29%，較上季下降約27%。相較之下，第三季我們的新房GTV達到人民幣2,276億元，年增18.4%，季減3.3%。這一顯著高於行業的業績，主要得益於與開發商的深入合作以及我們精細化營運增強了我們的能力。

Revenue from new home transactions rose by 30.9% year-over-year to RMB7.7 billion but dropped around 2.6% from the previous quarter. Revenue outperformed GTV both year-over-year and sequentially, once again demonstrating our strong and steady monetization capabilities in new home transactions. The contribution margin from new home transaction services fell by 0.4 percentage-points year-over-year to 24.8%, largely as a result of the strategic increase in variable commissions due to greater emphasis on building harmonious ecosystem and better rewards to agents.

新房交易收入較去年同期成長30.9%至人民幣77億元，但較上季下降約2.6%。營收年比和季比均優於GTV，再次證明了我們在新房交易方面強大而穩定的變現能力。新房交易服務貢獻率年減0.4個百分點至24.8%，主要是因為更重視建構和諧生態及更好地獎勵代理商，策略性增加可變佣金。

Sequentially, the new home contribution margin declined by 0.3 percentage-points due to the increase in fixed labor costs. In Q3, the commission income percentage from SOE developers rose to 58%, and the proportion of Commission in Advance projects maintained a relatively high level at 44%.

隨後，由於固定勞動成本的增加，新房屋貢獻率下降了0.3個百分點。三季度，國營開發商佣金收入佔比上升至58%，預收佣金項目佔比維持在44%的較高水準。

Revenue from home renovation and furnishing business, home rental services, emerging and other services grew by 54.3% year-over-year in Q3, accounting for a portion of our total revenue at 38.3% with a record high and surging by 6.8 percentage-points from the same period of 2023.

第三季家飾業務、房屋租賃服務、新興及其他服務收入年增54.3%，佔總營收比重達38.3%，創歷史新高，年增6.8個百分點從 2023 年同期開始。

Our home renovation and furnishing business maintained steady growth. In Q3, contracted sales reached RMB4.1 billion, up 24.6% year-over-year. Revenue amounted to RMB4.2 billion, rising by 32.6% year-over-year. Our revenue growth rate outpaced that of contracted sales, mainly due to higher delivery efficiency. The contribution margin for the home renovation and furnishing business reached 31.2%, up 2.1 percentage-points year-over-year and relatively flat sequentially. This was primarily driven by gross margin improvements in our home renovation business.

家居裝修及家居業務保持穩定成長。第三季合約銷售額達人民幣41億元，較去年同期成長24.6%。收入達人民幣42億元，較去年成長32.6%。我們的收入增速超過合約銷售增速，主要是由於交付效率提高。家裝業務貢獻率達31.2%，較去年同期上升2.1個百分點，較上季持平。這主要是由於我們的家居裝修業務的毛利率改善所致。

The contracted sales of furniture and home furnishing retail, which are outside of our home renovation package, reached approximately RMB1.1 billion in Q3, accounting for approximately 28.1% of total contracted sales, improving by 2.1 percentage-points from the same period of 2023.

第三季度，家居裝潢套餐外的家具及家居零售合約銷售額約人民幣11億元，佔總合約銷售額約28.1%，較2023年同期提升2.1個百分點。

Our home rental services business continued to grow at an accelerated pace. In Q3, its revenue reached RMB3.9 billion, up 118.4% year-over-year, benefiting from the rapid growth in the number of rental units under management. By end of Q3, the number of units managed by our home rental services exceeded 370,000.

我們的房屋租賃服務業務持續加速成長。第三季度，受惠於管理租賃單位數量的快速成長，其收入達到人民幣39億元，較去年同期成長118.4%。截至第三季末，我們的房屋租賃服務管理的單位數量超過37萬套。

The number of rental units managed under Carefree Rent exceeded 360,000, compared with around 160,000 in the same period of last year. Its contribution margin was 4.4%, declined by 1.4 percentage-points sequentially. This was mainly due to higher commission expenses due to seasonality. In Q3, our net revenue from emerging and other services decreased by 21.5% year-over-year to RMB487 million.

逍遙租管理的出租單位數量超過36萬個，去年同期約16萬個。其貢獻率為4.4%，較上一季下降1.4個百分點。這主要是由於季節性因素導致佣金費用增加。第三季度，我們來自新興及其他服務的淨收入年減21.5%至人民幣4.87億元。

Next, let's move on to our other costs and expenses in Q3. Our store costs and other costs remained generally stable year-over-year and quarter-over-quarter at RMB703 million and RMB502 million, respectively.

接下來，讓我們繼續討論第三季的其他成本和費用。我們的門市成本和其他成本年比和季比基本保持穩定，分別為人民幣7.03億元和人民幣5.02億元。

Gross profit rose by 5.2% year-over-year to RMB5.1 billion. Gross margin was 22.7%, down 4.7 percentage-points year-over-year and 5.2 percentage-points sequentially. The primary reason for the decline was the falling contribution margin of the existing home transaction services led by the increased fix labor costs.

毛利年增5.2%至人民幣51億元。毛利率為22.7%，較去年同期下降4.7個百分點，較上季下降5.2個百分點。下降的主要原因是固定勞動成本增加導致現房交易服務貢獻率下降。

In Q3, our GAAP operating expenses were RMB4.4 billion, up 11% year-over-year and down 2.1% sequentially. G&A expenses were relatively stable year-over-year at RMB1.9 billion while falling sequentially by 8.6%. This was mainly attributable to the reduction in share-based compensation. Sales and marketing expenses grew by 18.6% year-over-year to RMB1.9 billion as we invested in the rapid expansion of our home renovation and furnishing business, increasing associated sales and marketing expenses.

第三季度，我們的 GAAP 營運費用為 44 億元，年增 11%，季減 2.1%。一般及行政費用較去年同期相對穩定，為人民幣 19 億元，但季減 8.6%。這主要是由於股權激勵減少所致。銷售及行銷費用年增18.6%至19億元，因我們投資家居裝修及家居業務快速擴張，相關銷售及行銷費用增加。

Quarter-over-quarter, sales and marketing expenses rose by 2.8%, remaining largely stable. Our R&D expenses were RMB573 million, rising by 21.5% year-over-year and 13.6% sequentially, primarily due to increased R&D expenses in our home transaction services and higher expenses of exploration for some advanced R&D projects.

銷售和行銷費用較上季成長 2.8%，基本保持穩定。研發費用為人民幣5.73億元，年增21.5%，季增13.6%，主要是由於國內交易服務研發費用增加以及部分先進研發項目勘探費用增加所致。

In terms of profitability, GAAP income from operations totaled RMB727 million in Q3, down 20.2% year-over-year and 63.9% sequentially. GAAP operating margin was 3.2%, a decrease of 1.9 percentage-points and 5.4 percentage-points from Q3 2023 and Q2 2024, respectively. Non-GAAP income from operations totaled RMB1.4 billion, declining by 27.7% from the same period of last year and 51.5% quarter-over-quarter.

獲利能力方面，第三季GAAP營運收入總計人民幣7.27億元，較去年同期下降20.2%，季減63.9%。公認會計準則營業利潤率為 3.2%，分別較 2023 年第三季和 2024 年第二季下降 1.9 個百分點和 5.4 個百分點。非美國通用會計準則營業收入總計人民幣14億元，較去年同期下降27.7%，較上季下降51.5%。

Non-GAAP operating margin reached 6%, down 4.6 percentage-points and 6 percentage-points from Q3 2023 and Q2 2024, respectively. The decline in operating margin was mainly due to lower gross margin. GAAP net income totaled RMB1.2 billion in Q3, showing a year-over-year decrease of 0.2% while dropping by 38.5% quarter-over-quarter. Non-GAAP net income reached RMB1.8 billion, down 17.5% year-over-year and 33.8% quarter-over-quarter.

非 GAAP 營運利潤率達 6%，分別較 2023 年第三季和 2024 年第二季下降 4.6 個百分點和 6 個百分點。營業利益率下降主要是因為毛利率下降。第三季公認會計準則淨利為人民幣12億元，較去年同期下降0.2%，季減38.5%。非美國通用會計準則淨利達人民幣18億元，較去年同期下降17.5%，季減33.8%。

Moving to our cash flow and balance sheet. We realized a net operating cash inflow of RMB449 million in Q3. The new home DSO was 47 days in Q3, which is a testament to our effective risk management. On top of the approximately USD204 million allocated to share repurchases during Q3, our total cash liquidity remained at a high level of RMB76.3 billion, which excludes customer deposits payable.

轉向我們的現金流和資產負債表。第三季度，我們實現經營性現金流淨流入4.49億元人民幣。第三季新家 DSO 為 47 天，證明了我們有效的風險管理。除了第三季分配給股票回購的約2.04億美元之外，我們的現金流動性總額仍保持在人民幣763億元的高水平，其中不包括應付客戶存款。

With our robust cash reserves, we continued to reward our shareholders who have grown with us through active share buybacks, enhancing capital operation efficiency and sharing the benefits of our development with investors. As of the end of Q3, we had repurchased around USD584 million worth of shares this year, which accounted for around 3.3% of the Company's total shares outstanding at the end of 2023.

我們憑藉著雄厚的現金儲備，持續積極回購股份，回饋與我們共同成長的股東，提高資本運作效率，與投資人分享發展紅利。截至第三季末，我們今年已回購了價值約5.84億美元的股份，約占公司2023年底流通股總數的3.3%。

We have consistently delivered on our promise to reward shareholders. Since the launch of our share repurchase program in September 2022, we have repurchased around USD1.49 billion worth of shares as of the end of Q3, which accounts for around 8.1% of the Company's total shares outstanding before the program began.

我們始終如一地兌現回報股東的承諾。自2022年9月啟動股票回購計畫以來，截至第三季末，我們已回購了價值約14.9億美元的股票，約佔計畫開始前公司已發行股份總數的8.1%。

As our business becomes more diverse and expands in scale, we have set higher requirements for the reasonable allocation of resources and financial prudence. Our financial strategy is to focus on the essence of the operations and support the growth of our one body, three wings business by strictly controlling our risk threshold and maintaining a healthy cash flow.

隨著業務的多元化和規模的擴大，我們對資源的合理配置和財務審慎提出了更高的要求。我們的財務策略是聚焦經營本質，嚴格控制風險門檻，維持健康的現金流，並支持一體三翼業務的發展。

For housing transaction services, under the situation of our store expansion strategy, we have implemented a comprehensive upgrade of the financial accounting module. Regarding our home renovation and furnishing business, while upgrading our centralized purchasing module nationwide, we have further enhanced the level of automation in business and financial processes.

對於房屋交易服務，在我們門市擴張策略的情況下，我們實施了財務核算模組的全面升級。家裝業務方面，在升級全國集中採購模組的同時，進一步提升了業務和財務流程的自動化水準。

As for our home rental services, with the continuous iteration of our business model and the rapid scale-up in the number of management properties, we continue to comb through and update our business and financial processes to facilitate business development.

房屋租賃服務方面，隨著業務模式的不斷迭代和管理物業數量的快速擴大，我們不斷梳理和更新業務和財務流程，促進業務發展。

Regardless how the external environment changes, we still remain true to our original intentions, facilitating consumers' better living, enabling service providers' bright prospect, promoting industry's advancement and building harmonious ecosystem. We believe we will gain huge potential growth in the vast market, and advance towards one-stop residential service platform.

無論外在環境如何變化，我們始終不忘初心，讓消費者過上美好生活，讓服務商有美好前景，推動產業進步，建構和諧生態。我們相信，我們將在廣闊的市場中獲得巨大的成長潛力，朝著一站式住宅服務平台邁進。

This concludes my prepared remarks for today. Operator let's open for the questions.

我今天準備的發言到此結束。接線生讓我們開始提問。

(Operator Instructions)

（操作員說明）

John Lam, UBS.

林約翰，瑞銀。

(spoken in foreign language) So maybe I translate my question in English. So my question is more regarding on the recent property policy. So how does the management view about this policy versus in the past? And so far, how you see effect from the policy easing? How is the sustainability and also what kind of market forces is required in order to have a market stabilization? Thank you.

（用外語說）所以也許我可以用英語翻譯我的問題。所以我的問題更多的是關於最近的房地產政策。那麼，與過去相比，管理階層如何看待這項政策呢？到目前為止，您如何看待政策寬鬆的效果？永續性如何？謝謝。

Thank you, John. In Q3, overall, our market performance was muted, as the effect of the May 17 policies receded, coupled with the low summer season, the existing home transaction market shows a month-by-month decline in July, August and September. For the new home market, the year-over-year decline in GTV of CRIC top 100 real estate developers also worsened month by month in Q3, even after seasonal improvement middle year.

謝謝你，約翰。第三季整體市場表現較為平淡，隨著5月17日政策效應的消退，加上暑期淡季，7、8、9月現房交易市場呈現逐月下滑趨勢。新房市場方面，克而瑞百強房企GTV年減幅在年中季節性改善後，第三季也逐月惡化。

However, since the launch of the policy package at the end of September, transaction volume in existing and the new home market surged nationwide. Tier 1 cities led this jump. Meanwhile, with a huge transaction volumes, home prices also show signs of temporary stabilization. Overall, this round of policies has driven stronger market recovery than last two previous rounds on August 31 last year and May 17 this year.

然而，自9月底一攬子政策推出以來，全國二手房和新房市場成交量激增。一線城市引領這一躍升。同時，在成交量龐大的情況下，房價也出現暫時穩定的跡象。整體來看，本輪政策對市場復甦的帶動作用強於去年8月31日和今年5月17日的前兩輪。

For details, this round of the policy exceeded the last two rounds in both scope and intensity. Unlike previous relaxation in either purchase restriction or mortgage condition, this round of policy introduced a whole package of the countercyclical policies, directly initiated by the Politburo in response to new issues in the current macro economy combined with greater credit support from the Central Bank and the swift implementation of purchase restriction relaxation in Tier 1 cities that led to the market outperformance.

具體來看，本輪政策無論是範圍或力度都超過了前兩輪。與以往放鬆限購、放款條件不同的是，本輪政策推出了一攬子逆週期政策，由政治局針對當前宏觀經濟新問題直接啟動，並結合央行和央行加大信貸支持力度。落地，帶動市場表現突出。

In particular, the Politburo meeting explicitly emphasize the first time to stop decline of the real estate market. This words shows the country's commitment to stabilizing the housing market that leads to a stronger recovery in market expectation compared to previous two rounds.

特別是政治局會議明確強調，要第一時間阻止房地產市場下滑。這句話體現了國家穩定房地產市場的決心，導致市場預期較前兩輪更強勁的復甦。

For the new home market, following this round of policies, transaction volumes have increased significantly across first, second and third-tier cities. This contrast with post May 17 policy response, where the rebound was mainly in the first-tier cities. In October, the number of existing home transaction on our platform marks the highest monthly level, rising by over 70% year-over-year and 60% from September.

新房市場方面，本輪政策推出後，一、二、三線城市成交量大幅成長。這與5月17日後的政策反應形成鮮明對比，當時的反彈主要集中在一線城市。10月份，平台現房成交量創單月最高水平，較去年同期成長超70%，較上季成長60%。

Notably, the transaction volume in Tier 1 cities saw year-over-year, increase is over 100%, with Shenzhen up by over 250%. In October, Shenzhen average daily transaction volume reached the highest level in nearly four years. Year-over-year growth in Beijing and Shanghai was also more than 120%. For Tier 2 and Tier 3 cities, transaction volumes saw a year-over-year growth of more than 60%.

值得注意的是，一線城市成交量較去年同期增幅超100%，其中深圳增幅超250%。10月，深圳日均成交量創近四年來最高。北京和上海的年增率也超過120%。二、三線城市成交量較去年同期成長超過60%。

Regarding existing home prices, a positive signal is that October saw a month-by-month price stabilization with a slight 0.3% increase, thanks to the surge in transaction volume and the improving market sentiment. This marks a notable improvement from the 2.1% decline in September and is the first increase since the beginning of 2023.

就現房價格而言，一個正面的訊號是，10月份，受成交量激增和市場情緒改善的影響，價格環比穩定，小幅上漲0.3%。這標誌著 9 月下降 2.1% 的情況顯著改善，也是自 2023 年初以來的首次成長。

Prices in Beijing, Shanghai and Shenzhen were up 2.2%, 2% and 0.7%, respectively, compared with September. This was mainly due to the fewer homeowners are rushing to sell at the steep discounts. This shift is reflected in the Beike's Prosperity Index, which tracks the percentage of the price increase in all price adjustment of listed homes on Beike platform.

北京、上海、深圳房價較9月分別上漲2.2%、2%及0.7%。這主要是因為急於以大幅折扣出售的房主越來越少。這種轉變反映在北科繁榮指數中，該指數追蹤北科平台上掛牌房屋所有價格調整中價格上漲的百分比。

After hovering below 10 since it rise early this year, the index recently recovered to 14. In Tier 1 cities, this rose to 19, with Shenzhen jumping to 32 to a relatively active range. This shift indicates an incremental increase in the number of homeowners rising their home listing prices.

自今年年初上升以來，該指數一直徘徊在10以下，最近又回升至14。一線城市中，這一數字上升至19個，其中深圳躍升至32個，處於相對活躍的區間。這種轉變表明，提高房屋掛牌價格的房主數量不斷增加。

Regarding transaction structure, the market was primarily led by home upgrades, who had previously been viewing properties, but were in a wait and see mode. According to Beike Research Institute survey, after policy rollout, the proportion of consumers looking to buy a home quickly increased by 5 percentage-points. In Tier 1 cities, this grew from the 17% to 31%. The proportion of the wait and see consumer decreased.

從成交結構來看，市場以自住升級為主，先前一直看房，但處於觀望狀態。根據北科研究院調查顯示，政策推出後，消費者購屋比例迅速提升5個百分點。在一線城市，這一比例從 17% 增長至 31%。觀望消費者比例下降。

Regarding the new home market, the latest round of policies also led to a rebound in the new home market. In October, the GTV of CRIC top 100 developers increased by 73% from September and 7% from the same time last year. New home subscriptions on our Beike platform during National Day holiday nearly matched the subscription level for the entire month of September.

新房市場方面，最新一輪政策也帶動了新房市場的回溫。10月份，克而瑞百強開發商GTV較9月份成長73%，較去年同期成長7%。國慶日期間北殼平台的新房訂閱量幾乎與9月整月的訂閱量持平。

New home experienced a greater month-by-month rebound in existing homes. One reason is the lower base in September, the other reason is that the new policies mitigates the consumers' concern about the home delivery issues and developers' active promotion during the National Day holiday also helped boost the new policy effectiveness and accelerate sell-through.

新房環比現房反彈幅度大。一是9月基數較低，二是新政緩解了消費者對送貨上門問題的擔憂，而開發商國慶期間的積極促銷也有利於新政成效的提升，加速銷售。

Regarding the market outlook in the future, the latest round of policy has more enduring effect on housing market, given its wider scope and the intensity compared to previous ones. It is worth noting that since October and through the first two weeks of November, the weekly existing home transaction volume on the platform have remained stable at a high level, demonstrating a strong short-term momentum. We expect the market to be relatively stable in the fourth quarter.

就未來市場前景而言，新一輪政策對房地產市場的影響更加持久，與以往相比，其範圍更廣、更為廣泛。值得注意的是，自10月以來至11月前兩週，該平台每週現房成交量均穩定在高位，展現出強勁的短期動能。我們預計第四季市場將相對穩定。

For existing home prices, they are remaining stable in the short term, but their sustainability requires further observation. However, beyond the boost to sentiment, the further recovery of the economy fundamental is key to ensure the property market bottom out. This relies on enhanced policy focused on the overall macroeconomic improvement.

就現房價格而言，短期內保持穩定，但其可持續性仍需進一步觀察。然而，除了提振市場情緒之外，經濟基本面的進一步復甦也是確保樓市觸底的關鍵。這取決於以整體宏觀經濟改善為重點的強化政策。

On top of policy stimulating housing demand to further roll out of the measures on supply side such as the support for developers and inventory reduction will help rebalance supply and demand in new home market and revitalize the industry.

在政策刺激房屋需求的基礎上，進一步推出扶持開發商、去庫存等供給面措施，將有利於新房市場供需重新平衡，振興產業。

Continued favorable policy for the real economy will also provide greater support for residents' income expectations and purchasing power, fundamentally stabilizing the real estate market. Thank you.

持續的實體經濟利好政策也將為居民收入預期和購買力提供更大支撐，從根本上穩定房地產市場。謝謝。

Timothy Zhao, Goldman Sachs.

提摩西·趙，高盛。

Great. My question is regarding your home renovation and furnishing business. As we have seen signs of recovery in the home transactions in both existing home and new home markets in September, how should we think about the growth outlook for home renovation business? Could you share some recent progress on this business line such as how you managed to improve the operating efficiency?

偉大的。我的問題是關於你們的家居裝修和家具業務。9月現房新房市場成交均有復甦跡象，那麼我們該如何看待家居裝修業務的成長前景呢？您能否分享一下該業務線最近的一些進展，例如您如何設法提高營運效率？

Thank you, Timothy. In Q3, our home renovation and furnishing business achieved steady growth. As for scale, our contracted sales reached RMB4.1 billion, marking a year-over-year increase around 25%, with revenue rising to RMB4.2 billion, up 33% year-over-year. Our cities, such as Beijing, Guangzhou, Zhengzhou and Nanchang performed especially well and each achieved over 50% year-over-year growth in contracted sales.

謝謝你，提摩西。第三季度，我們的家居裝修及家居業務實現穩定成長。從規模來看，合約銷售額達人民幣41億元，較去年成長25%左右，營收達人民幣42億元，較去年同期成長33%。北京、廣州、鄭州、南昌等城市表現特別出色，合約銷售較去年同期成長均超過50%。

As for the profitability, home renovation contribution margin reached 31.2% in Q3, showing an improvement compared to the same period last year That's mainly due to the following factors. First, we focus on refined operation management. Since the home renovation construction involves lots of complex steps, we conduct a thorough review of each phase to identify key areas for the improvement.

從獲利能力來看，第三季家裝貢獻率達31.2%，較去年同期有所改善，主要得益於以下因素。一是注重精細化營運管理。由於房屋裝修施工涉及許多複雜的步驟，我們對每個階段進行徹底審查，以確定需要改進的關鍵領域。

For example, when we noticed excess materials, we quickly adjust our construction price and strengthen internal control to minimize the material waste. We also continue to updating our product package. During the initial design phase we carefully analyze the cost and the construction standards for each type of product. Running profitability model to ensure that each package maintained a reasonable gross margin during the initial development phase.

例如，當我們發現材料過剩時，我們會迅速調整施工價格，並加強內部控制，以最大程度地減少材料浪費。我們也繼續更新我們的產品包。在最初的設計階段，我們仔細分析每種產品的成本和施工標準。運行獲利模型，確保每個包在開發初期保持合理的毛利率。

Additionally, we increased the proportion of a centralized purchasing. For products with a high degree of standardization, we scale up the centralized purchasing at a group level. The centralized procurement ratio for both maintain and supplementary material reached over 30% in this quarter -- in third quarter while it was over 20% in the second quarter.

此外，我們也增加了集中採購的比例。對於標準化程度高的產品，我們加大集團層面的集中採購力道。本季維保輔料集中採購率均達30%以上，第三季為30%以上，第二季為20%以上。

As our home renovation business has expanded rapidly, we not only increase the purchase volume from existing products, but also renegotiate unit prices to reflect our large scale. While strengthening the profitability management, we also continuously focus on improving our operational process and models to enhance quality and boost customer satisfaction.

隨著我們的家居裝修業務迅速擴張，我們不僅增加現有產品的採購量，而且還重新協商單價以反映我們的規模。在加強獲利管理的同時，我們不斷注重改善營運流程和模式，提升品質，提升顧客滿意度。

For timeline channel management, we further shortened the construction time lines by optimizing workflow and dispatch efficiency. This brought the combined time line for basic construction and preliminary material to average around 99.5 days in Q3 compared to 109.3 days in the same period last year.

在時線渠道管理上，我們透過優化工作流程和調度效率，進一步縮短了施工時線。這使得第三季基本施工和初步材料的綜合時間平均約為 99.5 天，而去年同期為 109.3 天。

Regarding after sales, while implementing proactive maintenance services, we expanded our in-house aftersales team nationwide. Our aftersales team grew from over 200 people at the end of last year to over 500 at the end of September this year. This team promptly and carefully adressed customer repair requirements and further enhance our customer satisfaction.

售後方面，在實施主動維護服務的同時，我們將內部售後團隊擴展到全國。我們的售後團隊從去年年底的200多人增加到今年9月底的500多人。團隊及時、細緻地解決了客戶的維修需求，進一步提高了客戶滿意度。

In our home renovation business model of the quality, scale and efficiency, quality remains as a core. We will continue to iterate and invest in building our infrastructure and the capability to strengthen quality foundation, which is essential to remained competitive in the future. Thank you.

在我們的品質、規模、效率的家居裝修商業模式中，品質仍然是核心。我們將繼續迭代和投資建立我們的基礎設施和加強品質基礎的能力，這對於未來保持競爭力至關重要。謝謝。

Griffin Chan, Citi.

格里芬·陳，花旗銀行。

(spoken in foreign language) This is Griffin from Citi. I will translate my own questions. Beike has outperformed the market for both existing and new home business. Would the management have confidence in sustaining this outperformance? Besides, we know Beike has been actively expanding store this year. Would management please share your plan going forward?

（用外語發言）我是花旗銀行的格里芬。我會翻譯我自己的問題。北科現有住宅和新住宅業務的表現均優於市場。管理階層有信心維持這種優異的業績嗎？此外，據了解，今年北科一直在積極拓展門市。管理階層能否分享您的未來計畫？

Thank you, Griffin. This year, we're focused on agent and store network expansion and ecosystem development. And proactively strengthening high-level collaborations with developers in new home business. These efforts have all paid off, enabling us to continuously outperform the market. Regarding scaling our platform, our agent store network continued to expand. By end of Q3, the total number of active non-Lianjia stores on our platform was more than 41,000, and the number of active non-Lianjia agents was 315,000, up 16% and 4% year-over-year, respectively.

謝謝你，格里芬。今年，我們的重點是代理商和商店網路的擴張以及生態系統的發展。積極加強與開發商在新房業務方面的高層合作。這些努力都得到了回報，使我們能夠不斷跑贏大盤。在平台擴展方面，我們的代理店網路不斷擴大。截至三季末，平台活躍非鏈家店舖總數超過4.1萬家，活躍非鏈家代理商數量為31.5萬家，較去年同期分別成長16%及4%。

We provided brands with fee discounts, installment plans and other support to attracting to join our network. And in a volatile market, our platforms rich customer resources, extensive cooperation network, professional empowerment and a diversified service such as new home and home renovation had a stronger appeal to store outside of network.

我們為品牌提供費用折扣、分期付款計劃等支持，以吸引品牌加入我們的網絡。而在動盪的市場中，我們平台豐富的客戶資源、廣泛的合作網絡、專業的賦能以及新房、家居裝修等多元化服務對網外店具有更強的吸引力。

Returns from our investment in store expansion have remained good. From the platform perspective, by end of September, newly-signedstore in Q1 this year had a positive ROI with, all regions covering their cost. As we made steady progress in connecting stores, we have further shifted our strategy in the second half of this year from connecting small and scattered community stores to large stores. Accordingly, we raised the threshold of the average number of agents per store performance requirements and incentives.

我們在門市擴張方面的投資回報仍然良好。從平台角度來看，截至9月底，今年第一季新簽約門市投資報酬率正，所有地區均涵蓋成本。隨著門市對接的穩定推進，今年下半年我們的策略進一步從小型、分散的社區店的對接轉向大型門市的對接。據此，我們提高了每店平均代理人數的績效要求和激勵門檻。

Our goal was to attract more quality store in the industry to join Beike to boost overall scale and efficiency. Regarding the store network operation, we adopt a more refined strategy at each individual business district level. For the areas fully covered by our network. We place more emphasis on ecosystem optimization. We helped store owner and agent retain more income through a series of platform benefits and supportive measures. Store productivity in these commercial areas was 1.2 times as high as other commercial areas.

我們的目標是吸引更多業界的優質店家加入北客，提升整體規模和效率。在門市網路營運方面，我們在各個商圈層面採取更精細的策略。對於我們的網路完全覆蓋的區域。我們更加重視生態系統的最佳化。我們透過一系列平台福利和支援措施，幫助店主和代理商保留更多收入。這些商業區域的商店生產力是其他商業區域的1.2倍。

In areas where our store collaboration was insufficient, we focus on target management and empowerment through the platform data analysis, problem diagnosis and the strategic support along with the involvement of the store owner or governance council. We promoted the focus on quality home listings, enhance sell-through and boosted cooperation among stores. In areas with insufficient network coverage, we actively connect to the new stores through various type of store expansion package.

對於門市協作不足的領域，我們透過平台數據分析、問題診斷、策略支援以及店主或治理委員會的參與，專注於目標管理和賦能。推動精品房源聚焦，提升銷路，加強門市合作。在網路覆蓋不足的地區，我們透過各類擴店套餐積極對接新店。

For existing stores, we pilot a point-based incentive system in Q3 to motivate stores to enhance efficiency and optimize our ecosystem. This system is essentially a membership program for the store owners through which the platform giving back returns as incentive to outstanding stores. This was aimed to achieving share value and win-win between the platform stores. Among nine pilot cities in Q3, the platform issues over RMB18 million in equivalent cash benefit to store owners with 30% of store receiving this reward.

對於現有門市，我們在第三季試行積分激勵制度，激勵門市提高效率，優化生態系統。這個系統本質上是一個針對店主的會員計劃，平台透過回報來獎勵優秀的店鋪。此舉旨在實現平台門市之間的共享價值、共贏。在第三季的9個試點城市中，平台向店主發放了超過1,800萬元的等值現金福利，其中30%的門市獲得了該獎勵。

The incentive system will bring more flexibility to our housing transaction business operations, while motivating store owners to engage more in our new business, including renovation and rentals.

激勵制度將為我們的房屋交易業務營運帶來更大的靈活性，同時激勵店主更多參與我們的新業務，包括裝修和租賃。

In our new home business, we continue to outperform the industry. In Q3, our new home GTV reached RMB227.6 billion, up 18.4% year-over-year compared with 29% decline in the GTV of CRIC’s Top 100developers. Meanwhile, our monetization rate continued to increase in Q3, the proportion of revenue from “Commission in Advance” model remained at 44%,DSO was as low as 47 days in Q3. These helped us maintain a high level of operational health. In our new home business outperformance mainly come from continuous increase in the number of cooperativeprojects, which reached a high of over 8,000 in Q3.

在我們的新家居業務中，我們繼續領先於行業。第三季度，我們的新房GTV達到2,276億元，年增18.4%，而克而瑞百強開發商GTV則下降了29%。同時，第三季我們的變現率持續提升，「預收佣金」模式營收佔比維持在44%，第三季DSO低至47天。這些幫助我們維持高水準的營運健康。新房業務的優異表現主要來自於合作專案數量的持續增加，三季合作專案數量達到8,000多個的高點。

In September, the number of our cooperative new projects accounted for 64% of all new home projects across cities where we operate, excluding Beijing and Shanghai compared with 53% in the same period of last year. This was a result of growing recognition among developers for our sales capability as well as a proactive effort to expandcollaborations. We continue to make the breakthrough in strategic collaboration. We have already covered the 7 out of top 10 developers.

9月份，我們合作的新房計畫數量占我們經營的城市（除北京和上海外）所有新房計畫的64%，而去年同期為53%。這是開發商對我們的銷售能力越來越認可以及積極擴大合作的結果。我們在戰略合作上不斷取得突破。我們已經涵蓋了前 10 名開發商中的 7 家。

Strategic collaboration differ from our past single project cooperation, which typically featured a competitive relationship between the two sides. In strategic collaboration, the two sides work as partner to enhance a mutual understanding. We informed our corporate partner of the operations and the needs of our agents, market dynamics and additional service and value our platform offers beyond the brokerage channel. Through the top-down promotions of such awareness real estate companies, we helped overcome difficulties in negotiation of city-level projects, leading to more cooperative projects.

策略合作不同於我們過去的單一專案合作，通常表現為雙方之間的競爭關係。在策略合作中，雙方作為夥伴，增進相互了解。我們向我們的企業合作夥伴通報了我們的代理商的營運和需求、市場動態以及我們的平台在經紀管道之外提供的附加服務和價值。透過對此類認知度房地產企業自上而下的推廣，幫助我們克服了市級計畫的談判困難，帶來了更多的合作項目。

Through the strategic collaboration, we can also better protect agents' rights. For instance, we incorporate customer private phone number protection and equalprotection period into the strategic collaboration framework to promote the fair cooperation. Moreover, we enhanced the business conduct, governance to improve operational transparency, putting developers minds at ease in their cooperation with us.

透過策略合作，我們也可以更好地保護代理商的權益。例如，我們將客戶私人電話號碼保護和平等保護期納入策略合作框架，促進公平合作。此外，我們也加強了商業行為和治理，以提高營運透明度，讓開發商放心與我們合作。

Our stable monetization and receivables collection also motivate agents to work more actively on the new home sales, boosting our new home sell-through. Meanwhile, the agents' operational ecosystem has continued to improve the penetration of the customer private phone number protection rose to 67% in Q3, up by 11 percentage pointsfrom Q2, bringing more sense of security of agent, which also improves our willingness to sell the new homes. Thank you.

我們穩定的貨幣化和應收帳款回收也激勵代理商更積極地進行新房銷售，從而提高了我們的新房銷售。同時，代理商營運生態持續完善，第三季顧客私號保護滲透率上升至67%，較第二季提升11個百分點，為代理商帶來更多的安全感，也提高了我們的銷售意願。謝謝。

Thomas Chong, Jefferies.

托馬斯莊，杰弗里斯。

(spoken in foreign language) My question is about our home rental business. As we see our Carefree Rent is undergoing fast growth pace. While this business requires quite a lot of involvement in operation, can management share about how we are different from others in terms of operations?

（外語）我的問題是關於我們的房屋租賃業務。正如我們所見，我們的無憂租金正在快速增長。雖然這項業務需要大量參與運營，但管理層能否分享我們在營運方面與其他公司有何不同？

Thank you, Thomas. In Q3, our revenue from our home rental services reached RMB3.94 billion, up 118.4% year-over-year. It's mainly due to the continuous increase in the number of the home unit under our management. By end of Q3, we were managing over 360,000 units on our Carefree Rent model compared to over 160,000 in Q3 last year. The contribution margin of our home rental services fell slightly quarter-over-quarter in Q3 due to the seasonality.

謝謝你，托馬斯。第三季度，我們的房屋租賃服務收入達到人民幣39.4億元，年增118.4%。主要是由於我們管理的住宅單位數量不斷增加。截至第三季末，我們透過 Carefree Rent 模式管理了超過 36 萬個單位，而去年第三季管理的單位數量超過 16 萬個。由於季節性因素，我們的房屋租賃服務的貢獻率在第三季度環比略有下降。

In the summer peak season of July and August, our Carefree Rent saw a rapid growth in unit signups and occupancy, which increased commission costs for the channel referrals and related personnel, which impacts contribution margin. Excluding the seasonal impact, the core metrics of the Carefree Rent improved significantly year-over-year from January to September. Our operations focus on quality and efficiency have yield good results.

在七月和八月的夏季旺季，我們的安心租單位註冊量和入住率快速增長，這增加了通路推薦和相關人員的佣金成本，從而影響了貢獻率。剔除季節性影響，1-9月安心租核心指標較去年同期大幅提升。我們的營運注重品質和效率，並取得了良好的成果。

On improving services to customers, we provide premoving inspections, standardized handover services and the tenant side property transfer services with a cumulative service count exceeding 970,000, provide a series of the core interests and rights guarantees to our tenants. Also, we centralized the management of the two type of the property managers, tenant service manager and property service manager to realize the centralized empowerment and standardized services. This has enhanced our post-lease service capabilities and quality while also leading to a continuous decrease in customer complaint rate.

在提升客戶服務方面，我們提供搬家前檢查、標準化交接服務以及租戶方物業過戶服務，累計服務次數超過97萬次，為租戶提供一系列核心利益保障。對租戶服務經理及物業服務經理兩類物業經理進行集中管理，實現集中賦能、標準化服務。這增強了我們的租後服務能力和質量，同時也導致客戶投訴率持續下降。

In terms of the operational efficiency, we're continuing to increase the percentage of the lease renewals, which helps reduce the channel costs associated with the rerenting and finding new tenants. We achieved this through improved post-lease services, leading to increased tenant satisfaction and user retention. At the same time, we're actively engaged with tenants prior to lease expiration to discuss renewals, thereby boosting the renewal rate. By end of Q3, the lease renewal rate was around 52% compared to 48% in the same period last year.

在營運效率方面，我們持續提高續租比例，這有助於降低與重新出租和尋找新租戶相關的通路成本。我們透過改善租賃後服務實現了這一目標，從而提高了租戶滿意度和用戶保留率。同時，我們在租約到期前積極與租戶討論續租事宜，從而提高續約率。截至第三季末，續租率約為 52%，而去年同期為 48%。

Regarding management in rental cost due to the vacancies, we shortened the days needs to rent out the properties through the refined operations. The time required to rent out the property for the second time, decreased to 7.5 days at the end of Q3 from 14.7 days at the beginning of the year. We also continue to optimize and upgrade our product module. The coverage of our new product model, which incurs no vacancy period continue to rise in Q3. This model enhance our resilience against the rental price volatility and reduce the vacancy costs.

在空置租金成本管理方面，我們透過精細化運營，縮短房屋出租天數。第二次出租所需時間由年初的14.7天減少至第三季末的7.5天。我們也不斷優化升級我們的產品模組。第三季度，我們無空缺期的新產品型號的覆蓋率持續上升。這種模式增強了我們抵禦租金價格波動的能力並降低了空置成本。

The deposit cost per unit of our new Carefree Rent product module also dropped. This was mainly due to the improvement in a successful rate of the first-time rentals, which rose to 82% at end of Q3 from 76% in the same time of last year, driven by higher personnel productivities.

我們新的無憂租賃產品模組的單位押金成本也有所下降。這主要是由於在人員生產力提高的推動下，首次租賃成功率有所提高，從去年同期的 76% 上升至第三季末的 82%。

We continue to build our own rental occupancy team with enhanced leasing efficiency, while keeping overall cost lower than the channel cost. By end of Q3, the rental occupancy contribution by this team was at 19%, up 5 percentage-points from the same period last year. In addition, regarding Q3 operations, we took targeted measures to ensure the health and efficiency of our business in peak and the light seasons, respectively. The specialization strategy for the service providers based on their roles significantly boost our efficiency, leading to large scale growth and incremental profit margin.

我們持續打造自有租賃團隊，提高租賃效率，同時維持整體成本低於通路成本。截至第三季末，該團隊的租金出租率貢獻為19%，較去年同期上升5個百分點。此外，在第三季營運方面，我們採取了針對性措施，分別確保旺季和淡季業務的健康和效率。基於服務提供者角色的專業化策略顯著提高了我們的效率，從而實現了大規模成長和增量利潤率。

In the peak season of July and August, in particular, the personnel productivity of the unit signups and occupancy improved notably year-over-year. Since entering the off season in September, we have implemented multiple strategies, including strengthening the rental occupancy made through our self-build team and agent and improving their productivity, using various marketing methods for the targeted customers, continuously manage lease with renewals and the second-time leasing presales, and focusing on keys areas of the housing units signups and effectively manage inventory. Thank you.

尤其是7、8月的旺季，單位簽約和入住的人員生產力較去年同期明顯提高。自9月進入淡季以來，我們實施了多種策略，包括透過自建團隊和代理商加強出租出租率並提高他們的生產力，針對目標客戶使用多種行銷手段，持續管理續租和二次出租。 ——分時租賃預售，並專注於重點區域的房源簽約和有效管理庫存。謝謝。

Miranda Zhuang, Bank of America Securities.

Miranda Zhuang，美國銀行證券。

(spoken in foreign language) My question is about Beihaojia. We see the news that Beihaojia has successfully bid a land in Chengdu City. So can management share with us about the project and the rationale about it? And then what's company's business model for the Beihaojia?

（外語）我的問題是關於北豪家的。我們看到北豪家成功競得成都會土地的消息。那麼管理層可以與我們分享一下該專案及其理由嗎？那麼北豪家公司的商業模式是怎麼樣的呢？

Thank you, Miranda. Our new business, Beihaojia won a piece of land through the auction in Chengdu core areas of Jinjiang District, Financial City Phase III in September. We undertook this project after carefully review and the selection and it will be operated by Beihaojia team independently. We aim to use the pilot project like this to better validate our ability to implement our C2M solutions at every stage, including the land auction, product positioning, design and marketing.

謝謝你，米蘭達。我們的新業務北豪家於9月在成都錦江區核心區金融城三期拍賣中獲得了一塊土地。經過認真審核和篩選，我們承接了這個項目，並由北豪嘉團隊獨立運作。我們的目標是透過這樣的試點計畫來更好地驗證我們在土地拍賣、產品定位、設計和行銷等各個階段實施C2M解決方案的能力。

By creating model projects, we can build trust with future partners such as developers, contractors and property owners towards our business model and the product solution, ultimately helping us achieving a long-term light asset service platform model.

透過打造樣板項目，我們可以與未來的開發商、承包商、業主等合作夥伴建立對我們的商業模式和產品解決方案的信任，最終幫助我們實現長期的輕資產服務平台模式。

But it is very clear that we do not intend to become a real estate developer. In terms of our long-term business model, we will not use our own capital for larger scale heavy assets investment. We positioned Beihaojia as a data driven residential development service platform achieved through our one plus two business model. This includes C2M product solutions supported by our accumulated user insight and big data and complemented by efficient customer acquisition and the marketing capability. This empower all partners in the industry chain to create homes that are well suited to customers.

但很明顯，我們無意成為房地產開發商。從我們長期的商業模式來看，我們不會用自有資金進行更大規模的重資產投資。我們將北豪家定位為透過一加二業務模式實現的數據驅動的住宅開發服務平台。這包括以我們累積的用戶洞察和大數據為支撐，並輔以高效的獲客和行銷能力的C2M產品解決方案。賦能產業鏈上的所有合作夥伴，打造最適合顧客的家。

C2M will be our core capability. It leveraged the vast amount of data and AI technology to ensure the customer preference and demand are reflected in the new home plans such as possible. Regarding commercialization, we will charge service fees for offering an integrated set of solutions, including product positioning, initial and in-depth design rather than through the large scale capital contribution or earning investment returns.

C2M將是我們的核心能力。它利用大量數據和人工智慧技術來確保客戶的偏好和需求盡可能反映在新房屋規劃中。在商業化方面，我們會收取一整套解決方案的服務費，包括產品定位、初步設計和深入設計，而不是透過大規模出資或賺取投資回報。

Lastly, we were fortunate to acquire the land on September 20, right before the government roll out the subsequent bundle of favorable policies. This has made the land acquisition price highly competitive. We believe this project will serve us the test bed for our capabilities, allowing us to accumulate know-how to support the realization of our long-term platform model. Thank you.

最後，我們很幸運在9月20日拿到了這塊土地，就在政府推出後續一系列優惠政策之前。這使得土地收購價格極具競爭力。我們相信這個計畫將為我們的能力提供測試平台，使我們能夠累積專業知識以支持我們長期平台模型的實現。謝謝。

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.

我們現在電話會議即將結束。現在我將把電話轉給今天的演講主持人李思婷女士致閉幕詞。

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.

再次感謝您今天加入我們。如果您還有任何疑問，請隨時透過我們網站上提供的聯絡資訊聯絡北科投資者關係團隊。

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

今天的電話會議到此結束，我們期待下個季度再次與您交談。謝謝你，再見。