Operator: Your next question comes from Eddy Wang with Morgan Stanley.
Eddy Wang: My question is regarding the new home business. So we have seen that our new home business have been significantly outperformed the industry performance. So what’s the reason behind? And considering that the sales of the new home has been more difficult going forward. Do we expect the penetration rate of the brokerage channel to keep going up? And what’s our strategy and outlook for the new home business in this year?
Tao Xu: As you said, the China new home market faced a big challenge in the year of 2023. In such a tough market, Beike, we achieved around 7% growth in full year of new home GTV, significantly outperforming the industry. Our operating metrics also reached historical highs. Throughout the year, we deepened our insights into the new home business as the market evolves, and our efforts in the operation and business management also paid off. Operationally, the industry is still on a strong move, shifting to a buyers’ market. Consumers now need more professional services. In the past, with the home pricing was always going up, agents get used to just focusing on listing and to find buyers. This approach is not effective anymore because there is the lack of understanding and insight into the customer needs.
To boost the sales conversion, it’s the key for agent to think from the buyer side, identify who is buying the new homes and what thereafter. Meanwhile, on the device side, with the weak demand, traditional promotional methods such as the price cards are not working anymore. Developers have a stronger need for the broker services. In the 20 key cities we manage, the proportion of the project developers choose to cooperate with brokerage sales channel reached 82% at the second half of 2023. This is an increase of 11 percentage points compared to the first half of last year. Given this context, and in line with our group’s strategy adjustment, last year, we have shifted our new home strategy from a defensive to a proactive manner with a focus on growth and its quality.
We deepened our online consumer coverage and insights and established better online presence with initiatives like the live streaming for quality homes. Based on our consumer insights, accumulated user data and a close connection with existing home customers, in the second half of 2023, we started to build new type of partnership with developers. We introduced innovative services on marketing and sales. This helped boost our coverage of the high-quality new home projects. In 2023, our new home cooperation project coverage ratio improved significantly to 51% in Q4, up by 10 percentage points from Q1 in the same year. We remain committed to strengthening our ecosystem development. In 2023, more than 6,500 new projects have been covered by the commitment with both developers and the platform to transparent operations.
Over 3,500 cooperating new home projects have embraced the private phone number protection services. On our financial management, in the first half of 2023, our focus on the risk control and the profitability as core KPIs, strictly manage receivable collection and the financial safety. In the second half of 2023, while maintaining a strict risk baseline, we specifically emphasize the commission amount model and collection management for the hybrid developers. Thanks to these efforts, our new home DSO shortened to only 43 days in Q4. Commissioning advanced model accounted for 53% of total new home revenue improved Q4 last year. The percentage of commission income from SOE developers reached at 43% level. Our new home commission rate in the fourth quarter also increased modestly.
Based on our outlook regarding the new home market, we will change the following steps to improve the operations. Number one, on the supply side, we will further promote new strategic collaborations with high-quality developers to secure higher-quality new home supply for our services. On sell-through side, we aim to empower our service providers on both the productivity and the job satisfactory. We will probably raise the commission rate for downstream brokers. We will also enhance operations for our actual new home sales channel and optimize our product offer to brokers. And number three, we’ll also strengthen our infrastructure, including our new home housing dictionaries, ecosystems and online new home content development, giving our richer and higher quality new home listings, deeper customer understanding and stronger sales through capabilities.
We believe, our new home business will consistently outperform the market. Thank you.
Operator: We are now approaching the end of the conference call. I will now turn the call over to your speaker host today, Ms. Siting Li for closing remarks.
Siting Li: Thank you, operator. 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 next quarter again. Thank you, and goodbye.
