Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% within the next 6-12 months [1][6]. Core Views - The company's Q1 2024 performance showed a decline in both revenue and profit, with revenue at 16.4 billion yuan, down 19.2% year-on-year, and adjusted net profit at 1.39 billion yuan, down 60.9% year-on-year [1]. - The decrease in revenue is attributed to reduced income from existing and new housing businesses, although growth in home decoration and rental services helped mitigate the overall revenue decline [1]. - The company's gross margin fell by 6.1 percentage points to 25.2%, with gross profit decreasing by 35.1% to 4.1 billion yuan [1]. - The "One Body, Three Wings" strategy is being effectively implemented, with significant growth in home decoration and rental services, which now account for 35.0% of total revenue, up 21.7 percentage points year-on-year [1]. - Despite a challenging market environment, the company expects Non-GAAP net profits to grow from 10.79 billion yuan in 2024 to 11.62 billion yuan in 2026, with respective growth rates of 10.2%, 1.6%, and 6.0% [1]. Summary by Sections Performance Analysis - Q1 2024 revenue was 16.4 billion yuan, down 19.2% year-on-year; adjusted net profit was 1.39 billion yuan, down 60.9% year-on-year; net profit attributable to shareholders was 430 million yuan, down 84.3% year-on-year [1]. - The decline in revenue was primarily due to decreased income from existing and new housing businesses, while home decoration and rental services saw revenue growth [1]. Business Strategy - The company is focusing on its "One Body, Three Wings" strategy, which has led to rapid growth in home decoration and rental services, contributing significantly to overall revenue [1]. - Home decoration GTV reached 3.4 billion yuan, up 26.1% year-on-year, and rental income surged to 2.63 billion yuan, up 189.3% year-on-year [1]. Financial Forecast - The company maintains its profit forecast, expecting Non-GAAP net profits of 10.79 billion yuan in 2024, 10.96 billion yuan in 2025, and 11.62 billion yuan in 2026, with respective growth rates of 10.2%, 1.6%, and 6.0% [1]. - The stock's closing price corresponds to a PE ratio of 15.6x for 2024, 15.4x for 2025, and 14.5x for 2026 [1].

Financial Data and Key Metrics Changes - In Q1 2024, revenue reached RMB 16.4 billion, down from RMB 20.3 billion in the same period last year, representing a year-over-year decline of 19.2% [18] - Gross margin decreased to 25.2% from 31.3% year-over-year [18] - GAAP net income was RMB 432 million, a significant drop from RMB 2.75 billion in Q1 2023 [28] - Non-GAAP net income also fell to RMB 1.39 billion from RMB 3.56 billion year-over-year [28] Business Line Data and Key Metrics Changes - Revenue from existing home transactions was RMB 5.7 billion, down 37.6% year-over-year, with GTV at RMB 453.2 billion, down 31.8% [19] - New home transaction revenue was RMB 4.9 billion, a decline of 41.5% year-over-year, with GTV at RMB 151.8 billion, down 45.4% [21] - Home renovation and furniture business revenue grew by 71.1% year-over-year to RMB 2.4 billion, with contracted sales reaching RMB 3.4 billion, up 26.1% [22] - Home rental services revenue surged by 189.3% year-over-year to RMB 2.6 billion, with over 250,000 units managed [25][63] Market Data and Key Metrics Changes - The overall housing market saw a year-over-year decline in Q1, but some cities experienced transaction volume increases compared to the same period last year [17] - The new home market remains sluggish, with sales from the top 100 developers down nearly 50% year-over-year [21] - Existing home transaction volume on the platform increased by 14% year-over-year in April, indicating a recovery trend [35] Company Strategy and Development Direction - The company is focusing on enhancing the quality and efficiency of its housing transaction business, actively connecting with high-quality brands and agents [46] - A strategic expansion of connected stores is underway, with over 1,000 new stores added, maintaining a high retention rate [46] - The company aims to improve customer acquisition through innovative online content and service models, including live streaming and short videos [40][42] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the existing home market, while acknowledging the ongoing challenges in the new home market [33] - Positive government policies aimed at stimulating demand and reducing inventory are expected to support market recovery [34][56] - The company anticipates improved liquidity in the new home market and a gradual recovery in market confidence [33] Other Important Information - The company has allocated USD 220 million towards share repurchase in Q1 2024, with total cash liquidity reaching RMB 75.6 billion [29] - The company is committed to enhancing shareholder returns and optimizing capital operations despite challenging market conditions [30] Q&A Session Summary Question: Views on recent policies and market outlook - Management noted that despite price adjustments, transaction volumes in the existing home market remain stable, with some cities exceeding expectations [33] - The new home market is sluggish, but policies aimed at inventory reduction are expected to improve liquidity and market sentiment [34] Question: Customer acquisition channels and online traffic efficiency - The company is focusing on building online infrastructure and enhancing customer connection methods through live streaming and short videos [40] - New service models are being developed to better understand and meet customer needs [40] Question: Investments in core home transition business - The company is focused on growth with enhanced quality and efficiency, connecting with more high-quality brands and agents [46] - The number of active stores increased by 1.4% compared to the previous quarter, with a high retention rate for newly connected stores [46] Question: Outlook for new home sales - The new home market remains tough, but the company believes it will show resilience due to improved channel service capabilities and strategic partnerships with developers [50][51] Question: Home replacement policies and overall housing demand - Management views the government’s destocking policies as positive for market sentiment and liquidity, with Beike actively promoting old-for-new models [56][58] Question: Progress in decoration and window home services - The home renovation and furniture business achieved strong growth, with significant improvements in customer acquisition and delivery capabilities [60][62]

Core Insights - KE Holdings Inc. (BEKE) has reached an important support level and is considered a good stock pick from a technical perspective due to a recent "golden cross" event [1] - The golden cross indicates a bullish breakout, occurring when the 50-day simple moving average surpasses the 200-day simple moving average, which is a strong indicator of potential upward momentum [1] - BEKE's shares have increased by 37.4% over the past four weeks, and the company holds a 1 (Strong Buy) rating on the Zacks Rank, suggesting a favorable outlook for further price appreciation [1] Technical Analysis - A golden cross consists of three stages: the stock price bottoms out, the shorter moving average crosses above the longer moving average, and the stock maintains upward momentum [1] - The golden cross is contrasted with a death cross, which signals potential bearish price movement [1] Earnings Outlook - The positive earnings outlook for BEKE further supports the bullish case, as no earnings estimates have been cut for the current quarter [1]

Core Viewpoint - KE Holdings Inc. reported a significant decline in gross transaction value and net revenues for the first quarter of 2024, reflecting challenges in the housing market while also highlighting growth in home renovation and rental services [2][7][10]. Financial Performance - Gross transaction value (GTV) decreased by 35.2% year-over-year to RMB629.9 billion (US$87.2 billion) [2][7]. - Net revenues fell by 19.2% year-over-year to RMB16.4 billion (US$2.3 billion) [7][19]. - Net income was RMB432 million (US$60 million), a decrease from RMB2,750 million in the same period of 2023 [19][20]. - Adjusted net income was RMB1,392 million (US$193 million), down from RMB3,561 million year-over-year [19][20]. Segment Performance - Existing home transaction services GTV decreased by 31.8% to RMB453.2 billion (US$62.8 billion) [2][8]. - New home transaction services GTV dropped by 45.4% to RMB151.8 billion (US$21.0 billion) [2][10]. - Home renovation and furnishing revenues increased by 71.1% to RMB2.4 billion (US$0.3 billion) [11]. - Home rental services revenues surged by 189.3% to RMB2.6 billion (US$0.4 billion) [11]. Operational Metrics - The number of stores increased by 7.1% year-over-year to 44,216 [2]. - Active agents decreased by 3.0% year-over-year to 399,159 [2]. - Mobile monthly active users averaged 47.7 million, up from 45.4 million in the same period of 2023 [2]. Strategic Initiatives - The company is focusing on enhancing customer experience and service capabilities through innovative approaches such as short videos and live streaming [3]. - A "one body, three wings" strategy is being implemented to adapt to the evolving market environment [5]. Shareholder Returns - Approximately US$220 million was allocated to share repurchases in the first quarter [6][25]. - The company aims to provide sustained returns to shareholders while optimizing capital allocation [6]. Cash Position - As of March 31, 2024, the combined balance of cash, cash equivalents, restricted cash, and short-term investments was RMB60.8 billion (US$8.4 billion) [21]. Business Line Changes - The company has begun separately reporting financials for home rental services to provide better insight into revenue structure and margin trends [22][23].

Financial Performance - Total transaction value for Q1 2024 was RMB 629.9 billion (USD 87.2 billion), a year-on-year decrease of 35.2%[1] - Net revenue for Q1 2024 was RMB 16.4 billion (USD 2.3 billion), down 19.2% year-on-year[2] - Adjusted net profit for Q1 2024 reached RMB 1.392 billion (USD 193 million)[2] - In Q1 2024, net revenue decreased by 19.2% to RMB 16.4 billion ($2.3 billion) from RMB 20.3 billion in Q1 2023, primarily due to declines in existing and new housing business revenues[5] - Total transaction value in Q1 2024 fell by 35.2% to RMB 629.9 billion ($87.2 billion) compared to RMB 971.5 billion in Q1 2023, attributed to a high base effect from Q1 2023 and weakened supply and demand[5] - Revenue from existing housing business dropped by 37.6% to RMB 5.7 billion ($0.8 billion), with total transaction value decreasing by 31.8% to RMB 453.2 billion ($62.8 billion)[5] - New housing business revenue fell by 41.5% to RMB 4.9 billion ($0.7 billion), with total transaction value down 45.4% to RMB 151.8 billion ($21.0 billion)[6] - Gross profit in Q1 2024 decreased by 35.1% to RMB 4.1 billion ($0.6 billion), with a gross margin of 25.2%, down from 31.3% in Q1 2023[9] - Operating profit for Q1 2024 was RMB 12 million ($2 million), a significant drop from RMB 2.978 billion in Q1 2023, with an operating margin of 0.1%[11] - Adjusted operating profit for Q1 2024 was RMB 960 million ($133 million), down from RMB 3.83 billion in Q1 2023, with an adjusted operating margin of 5.9%[11] - In Q1 2024, the net profit was RMB 432 million (USD 60 million), a significant decrease from RMB 2,750 million in Q1 2023, representing a decline of approximately 84.3%[12] - Adjusted net profit for Q1 2024 was RMB 1,392 million (USD 193 million), down from RMB 3,561 million in Q1 2023, indicating a decrease of about 61.0%[12] - Basic and diluted earnings per American Depositary Share (ADS) for Q1 2024 were RMB 0.38 (USD 0.05) and RMB 0.37 (USD 0.05), respectively, compared to RMB 2.32 and RMB 2.26 in Q1 2023, reflecting a decline of approximately 83.7% and 83.7%[13] Revenue Breakdown - Revenue from home decoration and furnishing reached RMB 2.4 billion, a year-on-year increase of 71.1%[4] - Revenue from housing rental services was RMB 2.6 billion, up 189.3% year-on-year[4] - The revenue from emerging businesses and others increased by 112.9% year-on-year, contributing to 35% of total revenue, up 21.7 percentage points from the same period in 2023[4] - Home decoration and furnishing revenue increased by 71.1% to RMB 2.4 billion ($0.3 billion), driven by synergies between property transactions and home decoration services[6] - Rental services revenue surged by 189.3% to RMB 2.6 billion ($0.4 billion), mainly due to an increase in rental listings under the "worry-free rental" model[6] Cash and Assets - As of March 31, 2024, the total cash, cash equivalents, restricted cash, and short-term investments amounted to RMB 60.8 billion (USD 8.4 billion)[14] - The company's cash and cash equivalents decreased from RMB 19,634,716,000 as of December 31, 2023, to RMB 17,845,299,000 as of March 31, 2024, a decline of about 9.1%[25] - The total equity attributable to shareholders decreased from RMB 72,099,824,000 as of December 31, 2023, to RMB 68,993,774,000 as of March 31, 2024, a reduction of approximately 4.4%[27] - The company's short-term investments increased from RMB 34,257,958,000 as of December 31, 2023, to RMB 36,034,979,000 as of March 31, 2024, representing a growth of about 5.2%[25] Share Repurchase and Governance - The company repurchased approximately USD 220 million worth of shares in Q1 2024[4] - The share repurchase program allows the company to buy back up to USD 2 billion of Class A common stock and/or ADSs by August 31, 2024, with approximately 76.6 million ADSs repurchased for a total consideration of about USD 1,129.8 million as of March 31, 2024[15] - The board of directors includes experienced executives, ensuring strong governance and strategic oversight[23] Operational Insights - The company utilizes non-GAAP financial metrics to assess operational performance, including adjusted operating profit and adjusted net profit, which help identify underlying business trends[19] - The company emphasizes that non-GAAP metrics should not be viewed in isolation and encourages investors to review financial data comprehensively[19] - The company aims to reshape service operation models to provide more efficient real estate transaction and living services[21] - The management's forward-looking statements involve inherent risks and uncertainties that could lead to significant differences in actual performance[22] - The company is committed to protecting its systems and infrastructure from cyberattacks, which is crucial for maintaining trust in its brokerage brands[22] - The company has established a strong online and offline integrated real estate transaction and service platform[21] Asset and Liability Changes - As of December 31, 2023, total assets amounted to RMB 120,331,931,000, while total assets as of March 31, 2024, decreased to RMB 119,021,436,000, representing a decline of approximately 1.1%[25] - Total current assets increased from RMB 69,753,623,000 as of December 31, 2023, to RMB 70,543,525,000 as of March 31, 2024, reflecting a growth of about 1.1%[25] - Total liabilities rose from RMB 48,130,826,000 as of December 31, 2023, to RMB 49,896,460,000 as of March 31, 2024, indicating an increase of approximately 3.7%[26] - The total non-current assets decreased from RMB 50,578,308,000 as of December 31, 2023, to RMB 48,477,911,000 as of March 31, 2024, reflecting a decline of about 4.1%[25] - The company's total current liabilities increased from RMB 39,523,983,000 as of December 31, 2023, to RMB 41,755,435,000 as of March 31, 2024, an increase of approximately 5.7%[26] - The total non-current liabilities decreased from RMB 8,606,843,000 as of December 31, 2023, to RMB 8,141,025,000 as of March 31, 2024, a reduction of about 5.4%[26]

Group 1 - KE Holdings Inc. Sponsored ADR (BEKE) has gained approximately 16.7% year-to-date, outperforming the Finance sector average gain of 5.1% [2][3] - The Zacks Consensus Estimate for BEKE's full-year earnings has increased by 18.8% over the past three months, indicating improved analyst sentiment [2] - KE Holdings Inc. is ranked 1 (Strong Buy) in the Zacks Rank system, which focuses on earnings estimates and revisions [2] Group 2 - KE Holdings Inc. is part of the Real Estate - Operations industry, which consists of 38 stocks and is currently ranked 91 in the Zacks Industry Rank [3] - The Real Estate - Operations industry has an average year-to-date gain of 3.3%, showing that BEKE is performing better than its industry peers [3] - BrightSphere Investment Group (BSIG), another Finance stock, has returned 16.4% year-to-date and is also ranked 1 (Strong Buy) [2][3]

Core Viewpoint - KE Holdings Inc. will report its unaudited financial results for Q1 2024 on May 23, 2024, before the U.S. market opens [1] Group 1: Financial Results Announcement - The earnings conference call is scheduled for 8:00 A.M. Eastern Time on May 23, 2024 [1] - Participants must register online at least 20 minutes prior to the call to receive dial-in numbers and access information [1] Group 2: Company Overview - KE Holdings Inc. is a leading integrated online and offline platform for housing transactions and services in China [3] - The company operates Lianjia, a prominent real estate brokerage brand, and has over 22 years of experience since its inception in 2001 [3] - The company aims to build infrastructure and standards to enhance the efficiency of housing transactions and services [3]

Core Insights - Investors in the Real Estate - Operations sector may consider KE Holdings Inc. Sponsored ADR (BEKE) and Zillow (Z) as potential undervalued stocks [1] - KE Holdings Inc. has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Zillow has a Zacks Rank of 3 (Hold) [1] Valuation Metrics - KE Holdings Inc. has a forward P/E ratio of 15.79, significantly lower than Zillow's forward P/E of 25.55 [2] - The PEG ratio for KE Holdings Inc. is 0.33, compared to Zillow's PEG ratio of 1.42, indicating better value relative to expected earnings growth [2] - KE Holdings Inc. has a P/B ratio of 2.01, while Zillow's P/B ratio is slightly higher at 2.08 [2] Value Grades - KE Holdings Inc. has earned a Value grade of B, whereas Zillow has received a Value grade of F, suggesting that KE Holdings Inc. is currently viewed as the better investment option [3]

Core Viewpoint - KE Holdings Inc. has filed its annual report on Form 20-F for the fiscal year ended December 31, 2023, with the SEC, highlighting its ongoing commitment to transparency and investor relations [1]. Company Overview - KE Holdings Inc. is a leading integrated online and offline platform for housing transactions and services in China, operating under the brand Lianjia, which has over 22 years of experience since its inception in 2001 [2]. - The company aims to reinvent housing transactions by building infrastructure and standards that enhance efficiency for service providers and customers across various services, including home sales, rentals, renovations, and furnishings [2].

Financial Performance - Total transaction volume for 2023 reached RMB 3,142.9 billion, a 20.4% increase from RMB 2,609.6 billion in 2022[5] - Net revenue for 2023 was RMB 77.8 billion, a 28.2% increase from RMB 60.7 billion in 2022[5] - Net profit for 2023 was RMB 5,890 million, compared to a net loss of RMB 1,397 million in 2022[5] - Adjusted net profit for 2023 was RMB 9,798 million, compared to RMB 2,843 million in 2022[5] - Gross profit grew 57.6% to RMB 21.7 billion in 2023 from RMB 13.8 billion in 2022, with gross margin rising to 27.9% from 22.7%[60] - Operating profit for 2023 was RMB 4.8 billion, compared to an operating loss of RMB 833 million in 2022, with an operating profit margin of 6.2%[61] - Adjusted operating profit for 2023 was RMB 8,719.3 million, compared to RMB 2,307.3 million in 2022[65] - Adjusted EBITDA for 2023 was RMB 11,344.7 million, compared to RMB 4,743.6 million in 2022[65] - Adjusted net profit attributable to Ke Holdings Inc. ordinary shareholders was RMB 9,792.1 million in 2023, compared to RMB 2,853.9 million in 2022[66] - Net cash provided by operating activities increased from RMB 8,460,754 thousand in 2022 to RMB 11,157,625 thousand in 2023[76] - Net cash used in investing activities decreased from RMB 8,472,355 thousand in 2022 to RMB 3,977,440 thousand in 2023[76] - Net cash used in financing activities in 2023 was RMB 6.962 billion, mainly due to repurchase of ordinary shares (RMB 5.151 billion) and dividend payments (RMB 1.431 billion)[81] - Capital expenditures were RMB 793 million and RMB 874 million in 2022 and 2023, respectively[82] - The company paid a special cash dividend of $0.057 per ordinary share or $0.171 per ADS, totaling approximately $200 million on August 31, 2023[128] - The company paid a final cash dividend of $0.117 per ordinary share or $0.351 per ADS, totaling approximately $400 million on March 14, 2024[128] Business Operations and Growth - Number of stores as of December 31, 2023, was 43,817, an 8.1% increase from 40,516 in 2022[5] - Number of active stores as of December 31, 2023, was 42,021, a 12.2% increase from 37,446 in 2022[5] - Number of agents as of December 31, 2023, was 427,656, an 8.5% increase from 394,020 in 2022[5] - Number of active agents as of December 31, 2023, was 397,135, a 13.6% increase from 349,681 in 2022[5] - Average monthly active users on mobile in Q4 2023 was 43.2 million, compared to 36.6 million in Q4 2022[5] - The company's platform completed approximately 4.4 million property transactions in 2023, with a total transaction value of RMB 3,142.9 billion (USD 442.7 billion)[7] - The company operates Lianjia, a leading real estate brokerage brand in China, which has accumulated over 22 years of operational experience since its establishment in 2001[7] - The company launched its platform in 2018, which has become a leading online and offline integrated property transaction and service platform in China[8] - The company's ACN network facilitates collaboration among brokerage brands, stores, and agents, streamlining the entire property transaction process[9] - The company provides a comprehensive range of services to consumers, including brokerage services for second-hand and new property transactions, leasing services, and home decoration services[10] - The company offers platform services to brokerage brands, stores, and agents, enabling role-based automatic commission distribution and access to infrastructure modules such as SaaS and training[10] - The company serves as a powerful sales channel for real estate developers, offering comprehensive sales and marketing solutions, including channel marketing and innovative tools[10] - The company is digitizing and standardizing workflows for home decoration and other service providers, aiming to improve operational efficiency and industry practices[10] - The company's platform infrastructure includes SaaS systems, client applications, community networks, and transaction service centers, benefiting ecosystem participants[9] - The company's platform hosts the largest database of authentic property listings in China, providing professional and efficient services throughout the property lifecycle[10] - The company has four main revenue sources: existing home business, new home business, home renovation and furnishing, and emerging businesses and others[11] - In 2023, approximately 74% of second-hand home transactions completed on the platform involved cross-store collaboration under the ACN network[13] - The company has verified approximately 5.69 million real listings for second-hand home transactions as of December 31, 2023[15] - The ACN network promotes collaboration and commission sharing among agents, enhancing service efficiency and customer experience[12] - The company provides SaaS systems to ecosystem participants, including A+ SaaS for affiliated brokerages and Link SaaS for internal operations[17] - The platform governance mechanism includes incentives like the "Shell Score" to encourage compliance with ACN network rules and high professional standards[14] - The company's infrastructure includes modules such as AI technology, virtual reality, and payment solutions to support various stages of property transactions and living services[16] - The company focuses on expanding service categories to enhance the network effect of its ecosystem and provide a one-stop solution for customer needs throughout the living cycle[11] - The company encourages agents to specialize in specific geographic areas and become experts in nearby properties, fostering community engagement[13] - The company's platform governance mechanism aims to create a safer environment for agents by addressing issues like private deals and client information leaks[14] - The company's platform provides a wide range of real estate resources, including second-hand homes, new homes, and rental properties, with detailed visual presentations and community information[18] - The platform offers tools for home decoration services, including quick quote calculations, design case references, and style effect previews, enhancing customer decision-making efficiency[19] - The company has established a deep community network, leveraging local insights and offline touchpoints to improve service accessibility and efficiency[20] - The platform integrates online and offline transaction services, including the "Ji Qian" signing system and NTS (Online Transaction Support System), streamlining property transfer and management processes[23] - The company has set up offline signing service centers in multiple cities, collaborating with banks, guarantors, and government agencies to simplify transaction procedures[23] - The platform provides comprehensive training and support for brokers, combining online courses, offline training, and practical tasks to enhance service quality[22] - The company is expanding its services to include home decoration recommendations at signing centers, offering a one-stop solution for post-transaction needs[23] - The platform showcases broker profiles, including transaction records, ratings, and rankings, to help customers evaluate service quality[19] - The company is transitioning brokers into "living" consultants, enabling them to provide insights across various residential services beyond real estate transactions[21] - The platform facilitates frequent community interactions, such as free printing and charging services, to generate real estate leads and prepare for additional residential services[21] - Lijia has approximately 97,500 active agents and 5,320 active offline brokerage stores as of December 31, 2023[26] - Lijia operates in 25 cities across China, with over 25,100 active agents in Beijing and 26,100 in Shanghai as of December 31, 2023[26] - The platform has over 397,000 active agents and 42,000 active brokerage stores representing 256 brokerage brands as of December 31, 2023[25] - Approximately 86% of second-hand housing listings on the platform are posted by agents from Beilian stores (including Deyou franchise stores) as of December 31, 2023[29] - Around 66% of the total transaction value for existing and new homes on the platform in 2023 was generated by Beilian stores and the company's new home sales channels[29] - The platform is associated with 255 brokerage brands (excluding Lijia), operating approximately 36,000 active brokerage stores with 299,500 active agents as of December 31, 2023[29] - Lijia pioneered the three-party agreement in property transactions, enhancing transparency and trust[26] - Lijia launched the "Property Dictionary" in 2008 and its Link SaaS system in 2010, leading the industry in transitioning from offline to online operations[26] - Lijia established the prototype of ACN in 2011, which was later tested, improved, and launched on the Beike platform[26] - Lijia has developed a comprehensive agent development program, including campus recruitment, regular exams, offline training, and online courses[26] - Total transaction value of new home transactions facilitated through the platform in 2023 was RMB 1,003 billion[30] - Accounts receivable turnover days for new home business improved to 43 days in Q4 2023, compared to 64 days in the same period of 2022[30] - The "prepaid commission" model accounted for approximately 53% of the net revenue from new home business in Q4 2023, up from 44% in the same period of 2022[30] - Home SaaS 2.5 system was fully upgraded and implemented in Beijing in the second half of 2023, focusing on improving the quality and efficiency of home furnishing services[34] - AI展厅 and smart construction sites were developed to enhance customer experience and construction management through AI design, online inspections, and project timeline management[35] - The company has built and continuously optimized a self-operated logistics system for customized furniture, improving storage and delivery efficiency nationwide[36] - The company provides comprehensive training and incentive mechanisms for home furnishing service providers, including post-training certification and performance-based resource allocation[37] - The number of managed properties under the "省心租" service increased from approximately 70,000 units at the end of 2022 to over 200,000 units by the end of 2023, with an occupancy rate rising by 6.0 percentage points to 95.1%[38] - The company's centralized apartment business managed over 10,000 units by the end of 2023[38] - The "楼盘字典" database covered approximately 277 million housing units as of December 31, 2023[40] - The company's AI applications include intelligent search and prediction, smart opportunity allocation, and property promotion systems, leveraging machine learning and deep learning algorithms[41] - The "贝壳好房" system uses a rating system based on property characteristics, browsing history, and display records to recommend high-quality properties to consumers, leading to higher exposure and faster transaction decisions[42] - The company developed AI assistants like "小贝" for real-time interaction and training for agents, and a property maintenance assistant for owners, which has shown effectiveness in improving service quality and transaction conversion rates[42] - The AI-powered home design product "设牛" allows designers and users to quickly generate and switch between multiple styles of renovation renderings, reducing trial-and-error costs in actual renovations[43] - The company invested RMB 2,546 million in R&D in 2022 and RMB 1,937 million in 2023, focusing on improving technology and developing new products[45] - The company relies on six data center facilities and third-party cloud services like Tencent Cloud for computing, storage, bandwidth, and other services, ensuring operational flexibility and disaster recovery capabilities[46] - Net revenue increased by 28.2% from RMB 60.7 billion in 2022 to RMB 77.8 billion in 2023, driven by a 20.4% increase in total transaction volume from RMB 2,609.6 billion to RMB 3,142.9 billion[54] - Existing home business net revenue grew by 15.9% from RMB 24.1 billion in 2022 to RMB 28.0 billion in 2023, with total transaction volume increasing by 28.6% from RMB 1,576.5 billion to RMB 2,028.0 billion[54] - New home business net revenue rose by 6.7% from RMB 28.7 billion in 2022 to RMB 30.6 billion in 2023, with total transaction volume increasing by 6.7% from RMB 940.5 billion to RMB 1,003.0 billion[54] - Commission income from existing home transactions increased by 10.8% from RMB 20.6 billion in 2022 to RMB 22.9 billion in 2023, with total transaction volume growing by 13.6% from RMB 746.4 billion to RMB 847.6 billion[54] - Platform services, franchise services, and other value-added services revenue increased by 45.8% from RMB 3.5 billion in 2022 to RMB 5.1 billion in 2023, driven by a 42.2% increase in total transaction volume from RMB 830.1 billion to RMB 1,180.4 billion[54] - Home furnishing business net revenue increased to RMB 10.9 billion in 2023 from RMB 5.0 billion in 2022, driven by increased orders from synergy between housing transactions and home furnishing, growth in new retail contributions, and improved delivery capabilities[55] - Emerging businesses and others net revenue surged 194.8% to RMB 8.4 billion in 2023 from RMB 2.8 billion in 2022, primarily due to increased rental housing management services under the worry-free rental model[55] - Total operating costs rose to RMB 56.1 billion in 2023 from RMB 46.9 billion in 2022, with external commissions and rental housing costs increasing to RMB 25.7 billion from RMB 20.5 billion[56] - Home furnishing operating costs jumped 116.3% to RMB 7.7 billion in 2023 from RMB 3.6 billion in 2022, reflecting the growth in net revenue[56] - Contribution margin for existing home business improved to 47.2% in 2023 from 39.8% in 2022, driven by reduced fixed salary costs[57][59] - Contribution margin for new home business increased to 26.6% in 2023 from 23.6% in 2022, supported by higher net revenue and lower fixed salary costs[57][59] Technology and Innovation - The company's platform infrastructure includes SaaS systems, client applications, community networks, and transaction service centers, benefiting ecosystem participants[9] - The company's platform hosts the largest database of authentic property listings in China, providing professional and efficient services throughout the property lifecycle[10] - The company's infrastructure includes modules such as AI technology, virtual reality, and payment solutions to support various stages of property transactions and living services[16] - The company's AI applications include intelligent search and prediction, smart opportunity allocation, and property promotion systems, leveraging machine learning and deep learning algorithms[41] - The "贝壳好房" system uses a rating system based on property characteristics, browsing history, and display records to recommend high-quality properties to consumers, leading to higher exposure and faster transaction decisions[42] - The company developed AI assistants like "小贝" for real-time interaction and training for agents, and a property maintenance assistant for owners, which has shown effectiveness in improving service quality and transaction conversion rates[42] - The AI-powered home design product "设牛" allows designers and users to quickly generate and switch between multiple styles of renovation renderings, reducing trial-and-error costs in actual renovations[43] - The company invested RMB 2,546 million in R&D in 2022 and RMB 1,937 million in 2023, focusing on improving technology and developing new products[45] - The company relies on six data center facilities and third-party cloud services like Tencent Cloud for computing, storage, bandwidth, and other services, ensuring operational flexibility and disaster recovery capabilities[46] - The company's VR technology, introduced in 2015, has been integrated into real estate transactions and services, allowing virtual property tours and real-time agent interactions[47] - The company's financial technology includes an electronic wallet developed by Li Fang Tong, enabling high-frequency and high-value monetary transactions within its ecosystem[48] Corporate Governance and Leadership - The company's board consists of 8 directors, including 4 executive directors, 1 non-executive director, and 3 independent non-executive directors[93] - Zuo Hui, the founder and honorary chairman, has been a visionary leader in China's real estate transaction and service industry, contributing to the company's growth and success over 20 years[94] - Peng Yongdong, aged 44, is the co-founder, chairman, executive director, and CEO, with extensive experience in technology and strategic consulting[95] - Shan Yigang, aged 51, is a co-founder and executive director, with deep expertise in the real estate brokerage industry[95] - Xu Wangang, aged 58, serves as the vice chairman and executive director, with a background in operations management and real estate brokerage[96] - Xu Tao, aged 50, is the executive director and CFO, with a strong financial background and experience in various tech companies[97] - Li Zhaohui, aged 48, is a non-executive director and currently serves as the vice president and head of investment at Tencent[98] - Li Chaohui has served as a director of Kuaishou Technology (listed on HKEX, stock code: 1024) since March 2017 and as a director of Zhihu (listed on NYSE and HKEX, stock codes: ZH and 2390) since September 2015[99] - Li Chaohui held director positions at Fenbi Limited (listed on HKEX, stock code: 2469) from December 2020 to March 2023 and at Howbuy Wealth Management Co., Ltd. (listed on NEEQ, stock code: 834418) from December 2013 to August 2022[99] - Chen Xiaohong has been an independent non-executive director of the company since August 2020 and was re-designated as such in May 2022[100] - Zhu Hansong founded Jiangyin Xiake Private Fund Management Co., Ltd. in March 2022 and serves as its chairman and general manager[101] - Wu Jun has been an independent non