A：The financial highlights for the fiscal year 2025 include a strategic pivot towards efficiency-driven growth, optimization of the fixed model, better leverage of technology, and improved cost structure and new economy. A revenue of 41% from Lu housing transaction business, a 67.6% in home GTV, and a 63% increase in the GTV contribution from the Kinetic brand were reported. The in-home platform service revenue remained stable, showcasing the resilience of the platform business model.

A：Operational efficiency and cost structure optimization were demonstrated through a sequential decline in home-only safe labor costs, a significant enhancement in property elasticity, and the release of operating leverage in the contribution margin of the in-home business. In the new home business, the variable cost ratio and fixed personnel expenses decreased. The home renovation business narrowed its operating losses, and the home rental services became profitable at an operating level, with a contribution margin increase of 0.7 and 3.6 percentage points, respectively.

A：The bottom line performance in the fourth quarter was affected by one-time expenses related to the cost optimization initiatives. Despite the decline in profitability, the focus remained on delivering active shareholder returns, evidenced by a total share repurchase range of approximately $392 million, a year-on-year increase of around 29%, and a proposed final cash dividend plan of approximately $0.3 billion.

A：The financial performance of each business segment was detailed as follows: the in-home transaction business experienced a decline in transaction scale but saw profitability improve, with PTB funding down 35.3% year-on-year. The new home business was impacted by higher payments but showed an improvement in profitability, with PTV reaching R207 billion. The home renovation and front-end services revenue declined by 15.9% but saw a rise in contribution margin to 28.8%. The home rental company revenue increased by 18.1%, with a robust growth trajectory and a contribution margin of 10.4%, up 5.9 percentage points year-on-year.

A：The main reason for the decrease in sales and marketing expenses was the lower personnel cost driven by operational efficiency improvement.

A：The non-GAAP operating income from operations in Q4 was RMB 323 million, which decreased 81.6% year-over-year and 72.5% from the prior quarter.

A：The company generated net operating cash inflow of RMB 1.9 billion in Q4. For the full year, the net operating cash flow was below the profit performance of the previous year, but the online operating cash flow performance was broadly consistent.

A：The company spent approximately US dollar 921 million on share repurchase for the full year of 2025, representing approximately 4.1% of total shares outstanding at the end of 2024. This signifies a consistent dedication to fulfilling their promise to shareholders since the launch of the share repurchase program.

A：In 2026, the company wants to improve financial discipline and the balance between efficiency and growth, continuing to provide running quality, optimizing capital efficient structure while supporting long-term competitiveness.

A：Over the past year, the housing market has seen an evolution in transaction structures, with an increasing share of existing home transactions. The new home market has experienced depreciation with higher quality projects attracting stronger demand. More young people are choosing to rent, while rental yields are improving. Customer transaction behavior is changing with more complex decision-making processes and higher谨慎性. The cost of making a mistake has increased and consumers are more cautious when buying homes.

A：Despite the changes, the overall demand for better living remains stable and consumers still demand safe, professional, transparent, and reliable sources for housing services.

A：The company's long-term growth aim is to improve operational governance and continue driving progress across the residential service industry, as well as to upgrade the strategy by leveraging data and AI to improve customer coverage, resource conversion efficiency, and unit outputs.

A：The company is focusing on delivering greater certainty in transactions for customers, improving match precision, and strengthening unit economics. The existing home business facilitated R and B 2.5 trillion in GTV from existing home transactions in 2025, with a 10% year-over-year increase in the number of existing home sales transactions and a 15% year-over-year increase in transaction volume from platform stores. The productivity of agents increased by 6% year over year.

A：The company is using AI to upgrade transaction services into full process decision support services, optimizing resource allocation, embedding AI into service workflows, and adopting a consultative approach to support clients in making informed decisions. AI is being integrated into core operational scenarios across the platform to enhance marketing, provide simulation tools for service providers, and support professional skill sharing.

A：The new home business is transitioning from relying on channel distribution advantages to driving growth through structural efficiency improvements. This includes optimizing the mix of customers, projects, and service providers, as well as improving matching precision for home buyers. The business is enhancing capabilities in customer demand identification, cross-project comparison, service provider making, and decision support for developers. Early stage project product positioning insights and integrated marketing and sales services are being provided in the later stage of project sales. Efforts are also being made to evaluate system and operational tools and refine resource allocation mechanisms.

A：The new home business is upgrading from a model focused on traffic distribution to one that delivers greater certainty of results for all participants in the ecosystem. It aims to focus on profit quality and build sustainable and replicable operational models. In the home renovation and furnishing segment, full-year revenue grew by 4.4%, profitability improved meaningfully, and the contribution margin increased to 31.4%. The home renovation business is evolving towards a more scalable and replicable service model from a project-based model relying on individual end.

A：In the home renovation and furnishing segment, the company has focused on product standardization and design digitalization through a system of packaged and modularized product offerings and an AI-enabled online design workflow. This has helped turn design capabilities into system capabilities, reducing service variance and improving conversion efficiency. Supply chain integration and standardization have been advanced, improving the customer experience and profitability. The home renovation business is moving from a project-based model to a more scalable and replicable service model.

A：The home rental services segment has established a clear path to long-term profitability with the number of major units exceeding 700,000 per year, a 62% year-over-year increase. Full-year profitability was achieved with a contribution margin improving to 8.6%, up 3.6 percentage points year over year. The company continues to upgrade the product structure to lighter, more resilient, and more controllable models while strengthening unit economics at the individual property level.

A：At the organizational level, the company is advancing structural optimization and rebuilding capabilities to continuously improve the customer experience. This includes aligning organizational structures, simplifying management layers that do not directly create customer value, and encouraging managers to move closer to the front line to better understand and create customer value. These efforts contribute to better operational efficiency and improved capital allocation while maintaining a strong cash position and the ability to invest for long-term.

A：For 2026, the company maintains a new home market view, focusing on validating their decision support service model. The emphasis will be on testing how this model improves conversion rates and units economics. The company will also focus on strengthening service and organizational capabilities to demonstrate greater operational resilience as the industry enters a new cycle. True leadership is believed to come from capability and continuously creating real and verifiable value for customers.

A：The limitations of the traditional operating model lie in its effectiveness being constrained to certain projects and buyers, and in providing a relatively constrained choice for home buyers. The new stage for home buyers involves not just the availability of information but also the certainty in the purchase decision.

A：The company aims to upgrade the role of its new home business from a China player to an integrated capability by enhancing online integration and digitalization, optimizing traffic resource allocation, and providing long-term integrated solutions to developers.

A：The company believes AI will reshape the division of labor, value creation, and organizational structure of the real estate brokerage industry. It views AI not as a replacement for real estate agents but as a tool to improve efficiency in information gathering, demand matching, and other standardized tasks, allowing professionals to focus on complex decision-making and client service.

A：AI is being used to automate tasks such as information gathering, demand matching, process reminders, and preliminary risk checks. It is also assisting in property acquisition decisions, rental pricing recommendations, and risk identification. This allows agents to focus on customer needs and transaction support, and helps in determining property suitability and rental range.

A：AI is expected to split the real estate industry workflow into two parts: one that becomes highly automated with efficiency improving rapidly, and the other that increasingly concentrates on professional expertise, accountability, and high-value services.

A：As AI advances, human intervention will become more important in tasks that involve judgment, coordination, trust, and accountability, which are currently not efficiently processed by AI. The role of humans will increasingly focus on these critical aspects rather than on the more standardized and automated tasks.

A：The company plans to use AI to further upgrade its services into a comprehensive housing service infrastructure, aiming for more efficient information matching and collaboration processes, as well as more reliable transactional responsibility, fulfillment assurance, and service delivery.

A：The real estate industry's characteristics that AI cannot fully address include the difficulty of articulating consumer demand and the highly non-standard nature of the supply, which introduces uncertainty in pricing, suitability, and risk level.

A：The company views new media and influencers as channels that provide a different form of value by focusing on the person behind the decision, rather than just the property itself. They assist customers in understanding the market, comparing options, and reflecting on their needs, thereby helping reduce decision costs and anxiety.

A：The phenomenon of self media reminds companies that customers need more than just information; they increasingly require decision support, professional judgment, and trust centered around the individual company.

A：The development in supply chain centralization and procurement is focused on cost optimization, material cost structure strengthening, product quality improvement, and reducing exposure to price volatility.

A：An inflection point for revenue growth in home renovation is expected to come in 2026 as unit economics continue to improve and the delivery capability solidifies.

A：The core approach for the skills function is to improve traffic conversion efficiency through optimizing the product portfolio, replicating a high conversion showroom model, and implementing a neighborhood-focused operating module in most cities.

A：The company views the long-term unique economics trajectory of the home rental business positively, with revenue growth driven by structural improvement in unit economics. This improvement is attributed to factors like workforce productivity, lower customer acquisition costs, and better post-rental service experiences. The company aims to build the rental business into one characterized by sustainable skills function, improving profitability, and increasingly stable cash flow.