Operator: The next question comes from Liping Zhao with CICC. Please go ahead.
Liping Zhao: So since the consolidation of Chengdu in second quarter, the Company has achieved many progresses in terms of home renovation and furnishing infrastructure capabilities and also the enhanced cooperation with transaction business line. Looking ahead, what’s your development strategy of this business? And how will you balance the growth and investment of this sector?
Stanley Peng: Okay. I’m Stanley. Thanks for your question. The home renovation and forging industry is relatively capital intensive and fast integration opportunities, we have our standing to industry that require high standardization and transformation through technology are outstanding. First, we must not rush. It took big years of development to get to where we are now. It’s the same for home renovation and furnishing. We need to look at growth with two or three years for the business and its gradual start does not mean to be not reach greater heights in the future. Second, to achieve long-term growth, we should cultivate needed capabilities and resolve the major outstanding issues in the industry. We have observed the following areas in the industry with challenges and — while there is no online services with a great home renovation and furnishing experience provided in China; two, in terms of production, of localized home renovation and furnishing product tenor for the Chinese market, the industry is still relatively weak.
Three, the home renovation and furnishing services are not standardized. Four, professional skills of service providers need to be improved. Five, we need to identify possible areas of innovation through structural changes in technology materials process and methods. Facing industry problems and opportunities, we need to leverage our store agent network turn traffic and provide more and better products. At the same time, we need to upgrade our capability to capture these opportunities and realize long-term goods. Therefore, we need to make — stay fast and target investment in areas that will enable us to provide more products and iterate on capabilities for long-term benefits instead of making investment to stimulate short-term growth and extend scale without growing our capabilities.
This is why we are not going to advance heavily, but rather invest in service train, for example, our Hangzhou Academy has been months developing cases for home renovation service providers, our home renovation managers throughout the country only to take full-time training for three to four days. During which time, we will be missing out on revenue, but this is an investment we must make also. We are not going to use large onetime subsidiaries to stimulate sales, whether we will spend on system development, online content and home renovation product, R&D, among others, we see investment in home renovation products in the industry inadequate. Going forward, we will engage in more refined development and operations to provide targeted products for different user groups such as products for old neighborhoods and upscale residential communities.
If we do not invest in these areas, it means we have stopped in our tracks results driving for long-term growth. These investments are necessary as they made our vision and expectation for the future. Of course, during our investment, we require our business to manufacture its capability in growing from zero to one and fostering a virtuous cycle of quality, efficiency and scale. So in some of the are ample opportunities in the industry as customers have needs and we want to meet their demand, as such, we will calculate our capabilities and the highest our resources rationally. In my view, it does not make sense to make that investment in this industry for mall financial gains on short-term revenue growth, our investment to drive better development of the long time, timeframe.
That’s my answer to your question. Thank you.
Operator: We are now approaching the end of the conference call. I would now like to turn the call over to your speaker host today, Ms. Siting Li for closing remarks.
Siting Li: Thank you once again for joining us today. If you have any further questions, please feel free to contact Beike’s Investor Relations team through the contact information provided on our website. This concludes today’s call, and we look forward to speaking with you again next quarter. Thank you, and goodbye.
Operator: Thank you. The conference has ended. You may now disconnect your lines.
