2022-03-10 07:22Financial Data and Key Metrics Changes - In Q4 2021, net revenues were RMB 17.8 billion, down from RMB 22.7 billion in Q4 2020, primarily due to a 34.6% decline in total GTV to RMB 732.4 billion from RMB 1,120.0 billion in the same period of 2020 [53] - Gross profit decreased to RMB 2.9 billion in Q4 2021 from RMB 5.4 billion in Q4 2020, with a gross margin of 16.4% compared to 23.9% in the same period of 2020 [56] - For the fiscal year 2021, net revenues increased by 14.6% to RMB 80.8 billion from RMB 70.5 billion in 2020, despite a challenging market environment [66] Business Line Data and Key Metrics Changes - Existing home transaction services net revenues were RMB 6 billion in Q4 2021, down from RMB 9.2 billion in Q4 2020, with GTV of existing home transactions dropping 39.4% to RMB 354.6 billion [54] - New home transaction services net revenues decreased by 12.2% to RMB 11.3 billion in Q4 2021 from RMB 12.9 billion in Q4 2020, with GTV of new home transactions dropping 24% [55] - Emerging and other services net revenues were RMB 0.5 billion in Q4 2021, slightly down from RMB 0.6 billion in Q4 2020 [56] Market Data and Key Metrics Changes - The number of agents on the Beike platform declined by 7.8% year-over-year to approximately 455,000 by the end of Q4 2021 [19] - Active agents were around 407,000, down 8.7% year-over-year, reflecting the broader market's challenges [19] - The existing home market shrank by approximately 43% year-over-year in Q4 2021, while the new home market declined by 20% year-over-year [22][25] Company Strategy and Development Direction - The company launched a "one body, two wings" strategy at the end of 2021, focusing on core home transaction services and expanding into home renovation and inclusive housing services [12] - The strategy aims to enhance service quality and customer trust while addressing evolving consumer demands in the housing market [12][13] - The company plans to invest in infrastructure and agent training to improve operational efficiency and support the growth of its two wings [75] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the unprecedented challenges faced in 2021, including market corrections and changes in consumer behavior [7][11] - The company remains optimistic about market recovery, expecting gradual improvements in transaction volumes and market sentiment in 2022 [52][76] - Management emphasized the importance of adapting to market changes and focusing on internal capabilities to navigate future challenges [11][30] Other Important Information - The company maintained a strong cash position with RMB 56.1 billion in cash and short-term investments as of December 31, 2021 [65] - The company faced allegations from a short-seller report in December 2021, which were later found to be unsubstantiated following an internal review [72][73] - The company is committed to high standards of data integrity and corporate governance [73] Q&A Session Summary Question: Market conditions and housing recovery trends - Management noted that the market has shown signs of stabilization with improving credit conditions and pent-up demand, but recovery will take time [86][88] - They expect existing home transaction GTV to decline by about 50% year-over-year in Q1 2022, with gradual recovery anticipated in the second half of the year [95][102] Question: Company's strategy and investment in 2022 - The company will focus on operational efficiency and profitability while investing in its two wings, home renovation and inclusive housing services [104][106] - Management highlighted the importance of leveraging existing capabilities to capture new demand and mitigate downturns in the core business [108]