Summary of Key Points from the Conference Call Company Overview - **Company**: Beike - **Industry**: Real Estate Services Financial Performance - **Q3 2025 Revenue**: Decreased by 3.6% year-on-year to 6 billion RMB [2][3] - **Non-GAAP Net Income**: Decreased by 27.8% year-on-year to 1.29 billion RMB [2][3] - **Gross Profit**: Decreased by 3.9% year-on-year to 4.9 billion RMB, with a gross margin of 21.4%, down 1.3 percentage points [2][3] - **Total Operating Expenses**: 4.3 billion RMB, down 1.8% year-on-year [3] Business Segments Real Estate Transaction Services - **GTV (Gross Transaction Value)**: Increased by 5.8% year-on-year to 50.56 billion RMB, but decreased by 13.3% quarter-on-quarter [2][5] - **AI Contribution**: AI systems identified quality business opportunities contributing over 50% of transaction volume [2][5] - **Revenue**: 6 billion RMB, down 3.6% year-on-year [5] Home Decoration and Furniture - **Revenue**: Approximately 4.3 billion RMB, stable year-on-year [2][6] - **Gross Margin**: Increased by 0.8 percentage points to 32% due to expanded centralized procurement and improved dispatch efficiency [2][6] Family Rental Services - **Revenue**: Reached a record high of 5.7 billion RMB, up 45.3% year-on-year [2][7] - **Managed Units**: Over 660,000 units, a 75% increase year-on-year [2][7] - **Gross Margin**: 8.7%, up 4.3 percentage points year-on-year [2][7] Shareholder Returns - **Stock Buyback**: Totaled approximately 675 million USD in Q3, a 15.7% increase year-on-year, with a cumulative buyback of about 2.3 billion USD [2][8] Cost Control and Efficiency Improvements - **Labor Cost Reduction**: Fixed labor costs decreased by over 20% due to organizational optimization [21] - **Material Cost Reduction**: Centralized procurement expanded from 4 to 13 categories, with some product prices dropping by over 20% [21] - **AI Implementation**: AI-driven systems led to a 10% reduction in staff while increasing new lease signings by 10% [4][11] Challenges and Future Opportunities - **Market Challenges**: New family transaction business affected by market fluctuations, but long-term growth is expected [14] - **Expansion Plans**: B+ business pilot in 4 cities, with plans to expand to over 30 cities by year-end [16] Technology and Innovation - **AI Utilization**: AI systems integrated into property management, lead identification, and pricing strategies, resulting in significant cost savings [11][12][13] - **Operational Efficiency**: AI-driven decision-making improved operational efficiency and reduced costs across various business segments [11][12] Conclusion - **Overall Performance**: Beike's Q3 2025 results reflect a mixed performance across its business segments, with significant growth in family rental services but challenges in real estate transaction services. The company is leveraging technology and cost control measures to enhance efficiency and shareholder returns while preparing for future growth opportunities in emerging markets.