By contracts, the primary sector remains somewhat volatile, developers who are not cash [headwind] can hold arm to inventory partner and therefore more reluctant to this conference stock they have. We saw relatively low transaction volumes, across the primary marketing in the first quarter, probably because buyers the better values in this current market all because it translate the developers to more further discount.
Through the rest of year, we expect that government will continue to try to achieve the market relatively subdue by sending signals from time-to-time about the commitment to policy restrictions. As well, we do expect that this management will keep some buyers of the market. We are relatively confident that the volumes should stabilize at reasonable levels, especially in the secondary market.
Overall, we are encouraged by the market trends in the first quarter [then] to carry into the second quarter. The recovery of the secondary market of cost plays to the trend of our core business. At the same time, the strategy of the revenue diversification that we viewed up through the last year as we showed that we are now well accelerated against the worse of the market volatility.
Looking forward, we are convinced that we have the strategy in the network and the team in place to take the advantage as the market continues to stabilize.I would like now to turn the call over to Harry, who will take you through our first quarter performance in more details and display our strategy for the coming quarters. Thank you. Harry Lu Thank you, Donald. And as Donald mentioned, there were signs in the first quarter that overall transaction volume are recovering, and our encouraging financial performance reflects this. Revenue in the first quarter was RMB130.5 million, which was above the high-end of our guidance. Although, this [returned] a decrease of 5% year-over-year, it’s important to remember that we achieve this with an average of 340 store across our primary home focused network. It is compared to an average of 600 wholesale in-stores in the network in the same quarter last year. I will talk more later about the steps, we’ve been taking to improve network productivities, as Donald said secondary transaction volume return to much happier level in quarter one. Read the rest of this transcript for free on seekingalpha.com