Operator: The next question comes from Timothy Zhao with Goldman Sachs. Please go ahead.
Timothy Zhao: I have two questions here. First, can you manage share some outlook on how our Lianjia store and store network expansion plan into next year? And what is the operating efficiency and income level of the store and agents at this moment? And in the third quarter, we achieved very strong probability, but that’s — that means that the income level of the stores and agents is coming down. And secondly, it’s related to the SOE versus the price developers break down with new home sales, as I noticed that prior deeper still accounts for over 50% of the new home sales on Beike platform. May I check what are the top customers in the private developers and considering that some of the price developers recently also default on bonds or delayed the interest payment? Are we expecting more risk related to the current receivables?
Tao Xu: Thank you, Timothy. Regarding your first question, store and agent numbers are stabilizing and even start to grow in some cities. We see stabilizing store and agent network scale. Since the second quarter, the number of active stores and agents has started to stabilize. And in the third quarter, the quarter-over-quarter decrease in active store and agent narrowed to 3% and 2%, respectively. Amongst in nearly 30 cities, including Nanjing, Changsha and Hefei, the number of active stores grew quarter-over-quarter and the number of active agents increased quarter-over-quarter in 40 cities, including Shenzhen. There’s no significant network function needed going forward in Shore. A large number of practitioner life industry, following the recent round of market corrections, and we believe many of them might not return even when the market recovers.
Therefore, looking ahead, we do not expect the rapid growth in the number of stores the agent industry-wide in short to medium term, and the number of store and agent on our platform will also remain relatively stable over coming quarters. The steady improvement in store and agent productivity facilities organic business growth. We believe increasing per store and proactive income is a key to the organic growth. The industry has shaped the way from the front of the pure skills function towards the pursuit of the refined high-quality services. Only in such environment, our service providers who take our customers to stand out from the pack and to see the improvement in their living conditions. In 2021, the average income of vital agent nationwide was still far below the average local salary.
77% and 63% of average and medium local salary, respectively. Therefore, while maintaining a relatively stable scale of the store and agent on our platform, we hope to support each high-quality store and agent to grow revenue and profit, thereby realizing the high quality and sustainable growth for the overall business on our platform. The productivity also improvement, the productivity improvement has delivered results. Overall speaking, we implement a series of strategy, including reforming loss-making stores, noting the large stores, facilitating the business shift from the new homes to in-home and focusing on the new home project. We insisted on taking care of agent and help agents and store owners transcend cycle, although it takes time for our effort to pay off.
We have observed a clear coverage in store and agent productivity on our platform. In the third quarter, while GTV on Beike dropped by 11% and our revenue fell by 3% year-over-year. The unit store commission revenue of our franchise and the connected store on Beike platform grew by 25% and 26%, respectively, year-over-year and 14% and 12%, respectively, quarter-over-quarter. Meanwhile, commission revenue per agent of Connected Store grew by 25% year-over-year and 9% quarter-over-quarter. Of course, there are structural regions that partially expand increase, but overall store and agent income on Beike platform has been improving. Just take Zhengzhou as a showcase. Due to the market corrections, our revenue income growth decreased by 43% in the first three quarters and 23% year-over-year in the third quarter.
However, our operating port margin in the city rose significantly from last year’s average 6% to 24% in the third quarter. Operating profit grew by 69% for the first three quarters and was 14 points in the third quarter compared with the same period of last year. While we improved the profitability in Zhengzhou as a whole, the connect store in Zhengzhou have also achieved significant improvement in their operational and financial performance in the third quarter. Their unit store commission revenue grew by 57% year-over-year and 14% quarter-over-quarter. Looking for the future in the year of 2023, assuming market enters a period for a steady recovery, we hope to help more agent store to reach above the price line. Regarding your second question, first, I need to apace again the Beike’s risk is minimal mainly for three reasons.
Number one, as Beike continue to increase the cooperation with the state and centrally owned developers that are accounting for increasingly higher proportion of our new home sales. In third quarter, the proportion of the new home sales from state and central owned developers further expanded by 5% quarter-over-quarter to 42%. Number two, the new coverage on the debt crisis created a so-called halo effect, given the impression that the majority of the profit developers are in that prices, but in the real world, a significant number of the local private developer remained prices free. Contrary to the common perception, this is more yet strong developers with low leverage are our important corporate partners. Meanwhile, it is not subject to the concentration risk.
We currently serve more than 1,000 private developers, of which only six who each count for more than 1% of the total sales contribution. The robust house of our local private developer and our low business customer concentration empower Beike to maintain active control of our risk exposure. We continue to increase the coverage of the commission in the box model, particularly among the private enterprise, the percentage of the revenue from the commission in the box model to the total private developer new home revenue, in cities at Beijing and Shanghai already exceeded 32% in first three quarter quarters and reached 44% in September. As such, or further deterioration in the operating condition of a single or even multiple private developers will not have a material impact on our accounts receivable collections.
And number three, we are equipped with the industry-leading risk strategy under strong baton power, we have never slackened in our new home risk into measures and the new home receivable collection is a core KPI in this year. This year, we continue to strictly manage our DSO with an emphasis on the detection and the professional risk in advance, revenue safety and the settlement of the historical receivables. There are some examples up from rate detection and under prevention, we continue to iterate our developers risk assessment system to conduct up from rate detection and classification. We also strictly managed the cooperation with developers in accordance with different risk levels. Contract with the hire developers are completely prohibited and only with advanced commission payments and the settlement of historical receivables can such cooperation be resumed.
Moreover, safeguard our newly generated revenues comprehensively expand the scale of the commission in the bond payment and the percentage of the cooperation with the state and the centrally owned developers. In addition, we also resolved to the legal remedy as much as possible against the high-risk developers with delinquent accounts to ensure receivable preservation, conduct corporate-to-corporate corporation with a low risk developers to reach the settlement agreement on receivable in arrear to expedite the settlement of historical receivables. As a result of the series initiatives in Q3, our new home sales cash inflow reached RMB9.7 billion, almost 10% higher quarter-over-quarter. While the book value of our new home receivable decreased to RMB6.15 billion.
The receivable pricing cycle shortened by 30 days to 78 days in Q3. In the first three quarters of this year, our cumulative new home transaction revenue reached RMB28.4 billion, but our cumulative cash collection reached RMB26.4 billion. Our accounting treatment against the bad debt provision has always been prudent with the maximum provision. For almost all of developers who had previously generated for the risk as the maximum amount receivable was booked as a bad debt provision. Meanwhile, we are in effective and indispensable china for developers to generate sales and resume liquidity. We continue to receive the questions from developers, which will previously recognized bad debt provision. Therefore, in Q1 and Q3 of this year, we were able to write back provisions for the bad debt in amount of RMB150 million and RMB195 million, respectively.
While our cumulative bad debt provision amounted to almost RMB2 billion, covering 32% of the new home accounts receivable. We think this is a sufficient bad debt provision and there is a very little chance for a larger amount, onetime bad debt provision in the future. Given to our highly decentralized business and the implementation of the strict risk control, we believe our new home receivable will continue to become more secure. And our bad debt from the new home sales will not deteriorate maturely any further. Thank you.
