2025-11-10 13:02Financial Data and Key Metrics Changes - In Q3 2025, the total GTV was RMB 736.7 billion, remaining flat year over year, while total revenues reached RMB 23.1 billion, up 2.1% year over year [5] - Gross margin declined by 1.3 percentage points year over year to 21.4%, and GAAP net income was RMB 747 million, down 36.1% year over year [6][14] - Non-GAAP net income was RMB 1.29 billion, down 27.8% year over year [16] Business Line Data and Key Metrics Changes - Revenue from in-home transactions was RMB 6 billion in Q3, down 3.6% year over year, while GTV was RMB 505.6 billion, up 5.8% year over year [7] - Revenue from new home transactions was RMB 6.6 billion, decreasing by 14.1% year over year [9] - Revenue from home renovation and furniture services was RMB 4.3 billion, remaining relatively flat year over year, with a contribution margin of 32%, up 0.8 percentage points year over year [10] - Home rental services revenue reached a record high of RMB 5.7 billion, up 45.3% year over year, with a contribution margin of 8.7%, up 4.3 percentage points year over year [11][13] Market Data and Key Metrics Changes - The number of rental units under management increased to over 660,000, compared to over 370,000 in the same period of 2023 [12] - The contribution margin for home rental services improved significantly, driven by enhanced gross margin from carefully run business [13] Company Strategy and Development Direction - The company is focusing on balancing skill and efficiency, optimizing business structure, and enhancing operational efficiency through AI technology [5] - A strategic shift from scale to efficiency is being implemented, with innovative initiatives rolled out across businesses [20] - The company aims to build a residential services ecosystem, leveraging technological innovation and a well-structured operating system [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the new home business despite near-term market volatility [37] - The company is optimistic about the home rental services' profitability and plans to continue improving operational efficiency [45] - The home renovation market in second and third-tier cities is viewed as a critical long-term growth driver [53] Other Important Information - The company spent approximately $281 million on share repurchase in Q3, with a cumulative amount of approximately $675 million in 2025, up 15.7% year over year [17][18] - The company has made significant progress in optimizing its business structure and enhancing shareholder returns [18] Q&A Session Summary Question: What is the outlook for the new home business? - Management acknowledged that while the new home business has faced challenges, they remain confident in its long-term growth potential, citing market maturation and improved brokerage penetration [37][39] Question: How did the leasing service business turn losses into profits? - Management attributed the improvement to economies of scale, rapid growth in rental units, and enhanced operational efficiency, resulting in significant year-over-year revenue growth [45][46] Question: How does the company plan to motivate agents in cities outside of major markets? - Management highlighted the importance of a systematic operational framework to engage agents, including innovative incentive programs and leveraging AI to boost conversion efficiency [56][58] Question: What measures are being taken to control costs? - Management detailed various cost control measures across business lines, including labor cost reductions, supply chain integration, and operational efficiency improvements [61][62]