Ladies and gentlemen, thank you for standing by for KE Holdings Inc.'s Fourth Quarter and Fiscal Year 2020 Earnings Conference Call. At this time, all participants are in the listen only mode. Today's conference call is being recorded. I will now turn the call over to your host, Mr. Matthew Zhao, IR Director of the company. Please go ahead, Matthew. Thank you, operator. Good evening and good morning, everyone. Welcome to KE Holdings Inc., or Beike's Fourth Quarter and Fiscal Year 2020 Earnings Conference Call. The company's financial and operating results were published in the press release earlier today and are posted on the company's IR website, www.investors.ke.com. On today's call, we have Mr. Stanley Yongdong Peng, our Co-founder and Chief Executive Officer, and Mr. Tao Xu, our Chief Financial Officer. Mr. Peng will provide an overview of our strategies and business developments. Mr. Xu will provide additional details on the company's financial results and discuss the financial outlook. Before we continue, I refer you to our safe harbor statement in our earnings press release, which apply to this call as we will make forward-looking statements. Please also know that Beike's earnings press release and this conference call include discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. Please refer to the company's press release, which contains a reconciliation of the unaudited non-GAAP measures to comparable GAAP measures. Lastly, unless otherwise stated, all figures mentioned during this conference call are in CNY. With that, I will now turn the call over to our CEO, Mr. Stanley Peng. Please go ahead, sir. Thank you, Matthew. Hello, everyone, and thank you for joining us today on our Fourth Quarter and Fiscal Year 2020 Earnings Conference Call. We achieved exceptional growth in 2020, closing the year with strong fourth quarter operational and financial results. Our massive scale, operating efficiency, and quality of service, combined with the strong network effects, have created the self-reinforcing virtuous cycle. It drove our full year's GTV to increase by 64.5% to reach a historical high of CNY 3.5 trillion and helped us solidify our leadership position as the largest housing transaction and services platform in China, and the second largest commerce platform across all industries in China. 2020 marked the 19th anniversary of Lianjia's operations and the third year since the Beike platform's inception. The ground we have covered over the past years, as well as our outstanding results in 2020, have provided further affirmation of our belief that the path we are taking is doing the right thing. Even if it is difficult, it's the right path. It also brings us closer to our vision of providing comprehensive and trusted housing services to 300 million families in China. I would now like to provide you with a closer look at exactly what we accomplished over the past year. Looking back, 2020 was a challenging year for our business and for the world. Facing the COVID-19 pandemic, we worked hand in hand with the connected brands, stores, agents, developers, and other platform participants to overcome these tremendous obstacles and emerge stronger. We carried out a series of measures to help our own and connected agents persist during this difficult period. This included fee waivers, timely payments, supporting brand owners and store owners to ensure their agents continue to be paid, and et cetera. With offline activities severely hampered by the pandemic, we promoted online agent training, online VR property showing, and online property sales when the pandemic just broke out. These initiatives supported agent capabilities to continue to push forward online, lock in sales opportunities, and build out the inventory of potential buyers during the period. As the impacts from COVID-19 started to ease in China, the sales performance of connected stores and agents on our platform recovered rapidly, demonstrating the significant value of our platform. This period of shared adversity enhanced trust to brand owners, store owners, and agents in the Beike platform, while in turn contributed to accelerated momentum and improved operational efficiencies. In 2020, we focused on expanding the scale of our ACN network with quality growth. The total number of connected stores grew by 25.1% year-over-year, reaching 46,900 by the end of 2020. Among which, over 30% of stores have annual GTV of CNY 15 million or more, which we believe is an adequate level to support sustainable growth of the stores, compared to only 19% in 2019. The total number of agents on the Beike platform grew by 37.9% to 493,100 by the end of 2020. More than 30% of the agents in our ACN have college backgrounds. 75% of the total existing home transactions were completed through cross-store collaborations, while connected stores contributed over 81% of existing home listings, indicating continuously enhanced cooperation on the platform. Our offline expansion was underpinned by increased industry digitalization. Along with our growing online presence, we recorded data for almost 240 million homes in our Housing Dictionary, and VR data for more than 9 million homes. More than 73% of our existing home listings were covered by VR property showing by the end of 2020. The number of VR property showing exceeded 66 million in 2020, compared with 3.9 million in 2019. Total MAUs of our platform's apps and WeChat mini programs increased by 88.3% to 48.2 million in the fourth quarter of 2020. While Beike Scores were viewed online more than 1.1 billion times, growing almost 150x year-on-year. Which implies the increasing significance of the Beike Score in assessing service quality for both consumers and agents. Next, let me give you more colors in terms of our existing home transaction services business. In the past year, we further solidified our competitive advantages in the existing home transactions market, continued enhancing consumer experience, and empowering brands, stores, and agents to improve productivity and service quality, and achieved substantial growth on multiple fronts. According to Beike Research Institute, GTV of existing home transaction in China grew 6.7% to CNY 9 trillion in 2020, while including CNY 7.5 trillion of existing home sales, increasing 11.8% year-over-year. On our platform, GTV of existing home transaction grew 49.5% to CNY 1.94 trillion in 2020. GTV of connected stores grew 109.9% year-over-year, accounting for 48% of total GTV from existing home transactions, compared with 34% in 2019. As third-party stores are increasingly playing a vital role on our platform. We always focus on creating value for our customers and providing them with a wide range of commitments as well as value-added services. We endeavor to promote the eight core commitments, including authentic listing guarantees, no markup in pricing, transaction fund escrow, and et cetera. 84% of stores in top 30 major cities pledged to honor these eight core commitments in the fourth quarter of 2020. 100% of these stores have endorsed the most foundational commitments, such as authentic listing guarantees. Given that consumer fund safety has been one of the biggest concerns in home transactions, we strengthened the escrow services for transaction funds, which covered more than 80% of transactions, non-mortgage payments volume at the end of December. In terms of value-added services, one particular note was the premium package for home sellers services, through which 45,000 housing transactions were completed. Our focus on quality services brought us not only recognition from customers and agents, but also financial rewards. As a result, in 2020, the commission rate of our existing home transaction services increased slightly for both Lianjia and connected stores. Meanwhile, brands, stores, and agents on our platform increasingly benefit from efficiency improvement as our ACN effects play out. In terms of operational enhancement, we vigorously promoted the store scoring and ranking system to find and reward the finest service providers in supporting them to flourish. We also deployed a series of digital operational tools to help both brand owners and store owners carry out systematic business analysis and measures. Unit store GTV of existing home sales for both Lianjia and connected stores achieved the mid to high teens percentage growth rate in 2020. Turning to the new home transaction services business. According to the National Bureau of Statistics of China, GTV of China overall, new home transaction grew by 10.8% to CNY 15.5 trillion in 2020. Our new home transaction services business delivered robust all around results, reaching annual GTV of CNY 1.38 trillion with 85% year-over-year growth. This solid performance was primarily driven by the strong GTV growth of connected stores and other channels. In order to take better care of our customers, in 2020, we focused on advocating the three-day free return commitment for new home sales, which we collaborated with developers to pioneer. In the fourth quarter, this commitment was offered in 100 cities. We put considerable effort to support brands, stores, owners, and agents, and improved their experience in the new home transaction services. Thanks to our advanced risk control mechanism, our AR turnover in new home transaction was 103 days in 2020, only slightly increased from 2019, which was an achievement given that the GTV or our new home transaction grew 85% from 2019, the industry will still impact from COVID-19 pandemic. As such, agent on our platform have been able to receive their commissions on a timely basis. Meanwhile, to further support the agents, the commission advances, we extended cover more than 40% of new home sales commission splits. We successfully brought the whole commission advance progress online and enabled the 24 hours commission advances payments. For operational enhancement in new home sales, we invested in online infrastructure and equipped agents with advanced tools and methodologies. Leveraging our stronger capability to mobilize agents, we made concentrated sales forces possible for certain projects in order to increase productivity and project sales through certainty. These initiatives led to continuously improved capabilities of both our own and the connected agents, and resulted in more than 20% growth in terms of unit store GTV or new home sales. We have built relationship with an increasing number of real estate developers and have provided more tailored and efficient services. As of the end of 2020, the number of new home projects on sale listed on our platform reached 8,600, compared with 7,700 at the end of 2019. In the second half of 2020, we directed our emphasis to accelerate new home sales through promoting and implementing cross-city and cross-region sales. We are pleased that our efforts are bearing fruit, and our market share and leadership position in the new home transaction services market have gone from strength to strength. A few comments on our emerging services. Regarding our new home renovation services in 2020, we focused on Beijing market to expand our capabilities and product meaningful results. We developed the beta version of the in-house SaaS platform for service providers and an app for consumers, as well as detailed SOPs management. We completed more than 1,200 projects and connected more than 400 foremen, 5,000 workers and 200 designers at the end of 2020. For real estate financial services, we have been continuously upgrading products and offerings to optimize customer experience and encouraging financial advisors to interact with customers at an easier stage of the transaction process to improve penetration and customer experience. In 2020, the penetration of our financial services averaged 8.4% and reached 10.5% in the fourth quarter. Looking to 2021, we have five key focus area stepped in taking care of the customers, supporting the service providers, nurturing our emerging services, creating social value, and fostering the critical role technology plays in the broad market opportunity. First, we continue to see clear sign of the rising power of customers. To embrace this, we have an unwavering commitment to consistently refine the consumer experience to increase digitalization and enhance service quality. In 2021, we will leverage our capabilities in systematic data collection and artificial intelligence, as well as our extensive offline network to enrich the content offering in new home sales to meet consumers' demand for abundant and accurate online information for new homes. We will start by building out the Housing Dictionary for new house. Each house will have more than 200 description fields that incorporate basic housing information as well details that our user insight tools have identified as particularly important to Chinese customers. Leveraging our AI technology, we can provide more extensive information, even pinpointing the lighting and noise conditions on different floors. In terms of service quality, we intended to provide our customers and the platform participants with even more security and quality through the continuous construction of our platform's infrastructure. Specifically, we plan to make all customer complaints public for increased transparency and further improve customer satisfaction. Second, we are increasingly convinced of the tremendous value of service providers through tools that we plan to launch in 2021, such as a 30-day churn rate, early warning, and intervention model, and the professional scoring, ranking, and training framework for more platform participants. We aspire to identify and retain the finest service providers, including brand owners, store owners, and agents, and empower them to flourish. Third, we will nurture the healthy development of emerging and other services. Our focus will be on building out our core competencies in home renovation services to achieve multi-faceted customer satisfaction improvement by providing a seamlessly integrated transaction experience. Meanwhile, we will continuously upgrade the product and service offerings and increase the service efficiency of our real estate financial services. For example, we will launch the system to bring all of the financial advisors' daily operations online in 2021. Fourth, we are committed to creating more social value. We believe it is our corporate responsibility to assist in building a stable real estate market characterized by a neutral market view. Our social responsibility intends to facilitating transition in the residential real estate market from an opportunistic one to a more orderly and sustainable one. Meanwhile, we aim to fulfill our broader social responsibilities through a series of initiatives in 2021. For example, our platform will offer agent recruiting and returning program to provide more job opportunities to the community, especially for new graduates. We will continue to upgrade our rental services, offering young tenants more convenient and affordable experience. Furthermore, since our deeply rooted community-centric stores and agents have gradually become gathering points for local residents, we will continue to contribute in community services across the country. For example, we will continue the smartphone training sessions, volunteer our agents, which we offered to more than 140,000 elderly citizens in the past year. Lastly, on the technology front in 2021, we will continue leveraging our massive and authentic housing and transaction data and our deep understanding of business scenarios to innovate AI-driven technologies that drive optimal alignment between agents, consumers, and home through smart matching and personal recommendations in housing transaction. This will be implemented with products including our AI assistant, Xiao Bei, Beike's Pick, VR, and the center. We will also push forward data and AI-driven intelligence operations, such as the intelligent operations of Beike Home, in order to improve the overall platform operations efficiency. In summary, the market is rich with opportunity. By ensuring consumers' needs are met while simultaneously supporting service providers online and offline, we are driving transformational industry change. The progress we made in 2020 shows us we are on the right path. We are confident in our growth trajectory forward as we continue to expand our self-referencing network that is greater than the sum of its parts. With this in mind, we will work to create further value for the consumers, agents, store owners, brands, real estate developers, and all other platform participants. With that, I would like to turn the call over to our CFO, Xu Tao, for a close view of our first quarter and full-year financials. Thank you. Thank you, Stanley. Thank you, everyone, for joining us. I would like to provide a brief overview for our fourth quarter of the fiscal year 2020 financial results. We are pleased to deliver another strong quarter of financial results, marked by high revenue growth and strong profitability. Our net revenue has reached a historical high for the fourth quarter of 2020, driven by strong GTV growth. Our net revenue increased by 57.6% year-over-year to CNY 22.7 billion in Q4, exceeding both high end of our guidance and the street consensus. The rapid growth of net revenue was driven by solid GTV growth of 65.4% year-over-year to CNY 1.12 trillion, along with increased productivity and a continuously improved service cost on our platform. In particular, our net revenue from existing home transaction services increased by 56.1% year-over-year to CNY 9.2 billion in Q4. Mainly due to a 69.8% year-over-year increase in GTV of its new home transaction to CNY 584.7 billion in Q4. Our net revenue from new home transaction services increased by 58.8% year-over-year to CNY 12.9 billion in Q4, primarily due to a 55.5% year-over-year increase in GTV of new home transaction to CNY 469.2 billion in Q4. Our net revenue from merchant and other services increased by 58.1% year-over-year to CNY 0.6 billion in Q4. The increase was primarily due to the increase of penetration level in company's financial services around our housing transaction services, as well as increased number of home decoration units completed through company's platform. Cost of revenues increased by 48.2% year-over-year to CNY 17.2 billion in Q4. Gross profit increased by 97.4% year-over-year to CNY 5.4 billion in Q4. Gross margin increased to 23.9% from 19.1% in the same period of 2019. The increase of gross margin was mainly due to the decrease of internal commission and the compensation as a percentage of net revenue from the existing home transaction service completed through the Beike brand, as well as the decrease of commission to be as a percentage of net revenue from new home transaction services completed through connected agent and other sales channel. Operating expenses were CNY 4.2 billion in Q4, compared to CNY 5.9 billion in the same period of 2019. General and administrative expenses were CNY 1.88 billion, compared to CNY 4.56 billion in the same period of 2019, mainly due to the decrease of share-based compensation expenses. Sales and marketing expenses were CNY 1.32 billion, compared to CNY 831 million in the same period of 2019. Mainly due to the increase of brand advertising and the promotion marketing activities. Research and development expenses were CNY 714 million in Q4, compared to CNY 478 million in the same period of 2019. Mainly due to the increase of share-based compensation expenses. Income from operations was CNY 1.27 billion in Q4, compared to loss from operation of CNY 3.12 billion in the same period of 2019. Operating margin was 5.6% in Q4, compared to - 21.7% in the same period of 2019. Primarily due to the decrease of share-based compensation expenses. Excluding non-GAAP items, our adjusted income from operations were CNY 2.23 billion in Q4, compared to - CNY 18 million in the same period of 2019. Adjusted operating margin was 9.8% in Q4, compared to - 0.6% in the same period of 2019. Mainly attributable to increased gross margin and improvement of operating leverage. Adjusted EBITDA increased by 2,183.9% year-over-year to CNY 2.9 billion in Q4. Net income was CNY 1.1 billion in Q4, compared to net loss of CNY 1 billion in the same period of 2019. Excluding non-GAAP items, our adjusted net income increased by 4424.8% year-over-year to CNY 2 billion in Q4. Net income attributable to KE Holdings Inc.'s ordinary shareholders was CNY 1.1 billion in Q4, compared to negative CNY 3.7 billion in the same period of 2019. Adjusted net income attributable to KE Holdings Inc. increased by 4,508.2% year-over-year to CNY 2 billion in Q4. For the fourth quarter of 2020, diluted net income per ADS attributable to KE Holdings Inc.'s ordinary shareholders was CNY 0.93, compared to - CNY 7.99 in the same period of 2019. Adjusted diluted net income per ADS attributable to KE Holdings Inc.'s ordinary shareholders was CNY 1.71, compared to - CNY 1.15 in the same period of 2019. As of December 31st, 2020, the combined balance of our cash equivalents, restricted cash, and short-term investment amounted to CNY 65.2 billion, or $10 billion. For the full year of 2020, our business achieved a robust operation and financial growth, and our GTV increased by 64.5% year-over-year to a historical high of CNY 3.5 trillion, from CNY 2.13 trillion, enabling us remain the second-largest commerce platform across all industry in China and the third-largest spending platform globally. Our net revenue increased by 53.2% year-over-year to a historical high of CNY 70.5 billion from CNY 46 billion. Our net income reached a historical high of CNY 2.78 billion, compared to net loss of CNY 2.18 billion in 2019. Our adjusted net income increased by 245.4% year-over-year to a historical high of CNY 5.72 billion from CNY 1.66 billion. Looking forward to our first quarter of 2021, we expect our net revenue to be between CNY 18.5 billion- CNY 19.5 billion, representing an increase approximately of 159.8%-173.9% from the same quarter of 2020. The relatively high year-over-year growth of our revenue guidance is mainly due to the significant negative impact of COVID-19 for our business in the same period last year, which results in a meaningful portion of the transaction shifting from Q1 to Q2 last year. The business outlook reflects the company's current and preliminary view of the business situation and market conditions, which is subject to change. Last but not least, we believe the long run under the principle, Housing for Living, Not for Speculation. The real estate market in China will continue to shift toward a more stable and steady growth. This, in turn, will create a more favorable environment for us to carry out our commitment to reinvent the industry and deliver the highest quality service to 300 million families in China. Going forward, we will remain focused on taking better care of the consumer and support platform participants such as brokerage brands, store owners, agents, and real estate developers to take better care of the consumers, while continuously strengthening our competitive moats and our growing business at a faster pace. As we continue to reinvent our Agent Cooperation Network infrastructure, user business functions, and innovative AI technologies, we are confident we will further enhance our monetization capability and deliver sustainable growth. That concludes our prepared remarks. We would like to now open the call to questions. Operator, please go ahead. Thank you so much. Ladies and gentlemen, we will now begin the question and answer session. As a reminder, if you wish to ask a question, you will need to press star and one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press the hash key. Again, it's star and one if you wish to ask a question. For the benefit of all participants on today's call, please limit yourself to one question. If you have additional questions, you may re-enter the queue. If you are going to ask a question in Chinese, please follow the English translation. Thank you so much. Your first question comes from the line of Elsie Cheng from Goldman Sachs. Elsie, your line is now open. [Foreign language] Thank you, management, for taking my questions. Congratulations on the strong results again. I have three questions here. One is really about the changing macro environment and tightening regulation in the housing industry in China. How does it impact Beike and its operations in major cities? How should we think about its impact to our full-year results? The second is on the competitive landscape. It's been a while since 58 got privatized. We also observed some developers are proactively building their own digitalized team. Can management share a little bit more color on your observation in the key trends in the industry and Beike's strategy in sustaining the competitive mode? The last one is about emerging businesses. [Foreign language] We continue to see the GTV and revenue scale robustly in the segment. Can management share a little bit more color into the progress of the operations in home decoration and financial services? Thank you. Thank you, Elsie. This is Xu Tao. Let me address your first question. Let me talk about some policy changes recently. The overall China housing policy is aiming at promoting houses are for living in, not for speculation, and preventing the financial systematic risk arising from the real estate market with layered measure and city-specific policies. In Chinese, we call this [Foreign language] A stable real estate market is beneficial for the sustainable development for Beike and the industry as a whole. The so-far policy we saw to slow the market from overheating by using a relatively mild regulation and implement a timely manner to prevent more severe regulation measures and a greater market fluctuation down the road. As part of the long-term mechanism to maintain a productive housing market, it also consumes the volatility of the real estate market that was often seen in the past and makes the competitive landscape more about sustainability, quality, and efficiency, and creates a favorable environment for Beike and the whole industry. From our observation, the recent housing policy had no significant or direct impact on the national real estate transaction momentum, nor brought significant changes in overall market price or the transaction volume. Since the policy has been limited to some overheated cities like Shenzhen and Shanghai, but the housing is still necessary and rigid demand in China. Let me talk about Shenzhen. In Beike, actually, we have a business presence for 102 cities, and all of our incremental revenue was mainly coming from our newly connected platform business. Shenzhen is a star city of Beike. Its market share improved from 70% in 2018 when we launched Beike to 29% in 2020. That still counts low single digits. Percentage of Beike total GTV in 2020. We would like to say as president, we don't have centralization problem for specific cities. Beike is a platform company, and our nationwide platform is able to mitigate the downside risk of the deviation from any particular cities. Also for Shanghai. Shanghai is the largest existing home sales market in China, with the largest housing stock over 2 million. Measures in Shanghai are relatively mild, with limited impact on the transaction volume, and we believe the city will return to a housing market with active trading in due time. The recent measures in Shanghai are not as strong as Shenzhen, and the impact on the transaction volume and the price will be relatively mild. This is your first question. Regarding some competition, yes, we do notice some peers step into this area. Normally, we don't comment on other peers' performance directly. The two things are very certain. The first, Beike's IPO has inspired so many people, and there will be more players and capital step into the residential real estate market. The second, Beike is very confident and is very happy to see new industry entrants to step into this area and allowing us to further enhance our capability to be the leader of the industrial internet and think deeply about our strategy. That is, how to take care of our clients and how platform participants to take better care of our clients. Regardless the market conditions, I would like to say it's right, there are still some competitions among the developers. The developers may be hesitant to use one developer as their broker channel due to the competition or might worry about the customer long term, which makes the cooperation mechanism even unlikely. Beike will host the different value proposition against to set target or make a promise on the future valuation at the beginning of the entrepreneurship. As I just reiterate again, our strategy is to take care of customer and help service provider to take care of customers. From the financial number and the business performance perspective, no impact to Beike. If you look at the GTV, our take rate and contribution margin DSO in past three years, the GTV will increase from CNY 280 billion to CNY 747 billion, and last year we further increased to CNY 1.38 trillion. The take rate for the new home sales, we have a modest increase. Our take rate increased from 2.68% to 2.71%, and last year increased to 2.74%. Its contribution margin for the new home continues to improve, and it improved from CNY 3 billion to CNY 4.9 billion, and the last year is CNY 8.2 billion. The DSO, we also, owing our scalability doubles year-over-year, but our DSO is improved. In 2018, 117 days, and 2019, 96 days. Last year, we have slightly increased to 103 days. This is a combined impact of COVID-19. If you look at the Q3 and Q4 number, we are reduced to 87 days. There's no significant impact. The last question regarding our business strategy for the new business, I would like to invite our CEO Stanley to give the answer. [Foreign language] This is Elsie Let me address your question in terms of the emerging services development. The next month we will to enter the 3 years of anniversary for the Beike's platform, as well as the Lianjia's almost 20 years of anniversary. In the past 20 years, we actually accumulate a lot of experience, especially during our procedures to restructuring of the housing transaction industries. We really focus on how we can build up the overall standard to the industry. What we get to take from the past 20 years experience is we need to doing the business horizontally firstly. [Foreign language] After that, when we get to know the knowhow of the industry, we can start doing the platform business vertically. That's also what we get to take. We noticed for a lot of different kind of the business, such as housing transaction or the decoration, as well as the furnitures, each of them has a significant big of the potential market size. We'll continue develop of the opportunities there. [Foreign language] We are looking for the opportunities in the industrial internet going forward. When we look at the potential sectors to develop, we always look at the following of the characteristics: firstly, the industry should be very big enough, secondly is we also look at how we can copycat and iterate of our capabilities from the past years of the operational experience, and thirdly, we also look at the potential opportunities within that tracks. From that perspective, I can give you two examples going forward in terms of our continued development. [Foreign language] First is about the decoration business, and secondly is about the financial business. For the decoration business, in the year of 2021, as I described in the prepared remarks, we will continue to focus on the Beijing market. We will focus on to build up the SOP for this industry and build up the SaaS system, as well as continue iterate of the system's capabilities. We will focus on the workers management as well as the overall industry chain management in order to further build up our capability within the decoration business in Beijing. [Foreign language] In terms of financial business, for this year, we will continue to improve our capability to promote the online process. We will try to build up the system for the financial advisors to ensure the working procedures can be completed online. Meanwhile, in terms of the customer side, we also trying to promote the products such as the safeguard products for home sellers mortgage redemption needs, in order to connect the buyer's mortgage with the sellers together to further improve the user experience. In the future, as I mentioned, looking into 2021, we will continue to explore the good practice as well as other explorations within the financial services. Thank you. [Foreign language] Thank you. Thank you so much. Your next question comes from the line of Binnie Wong from JP Morgan. Binnie Wong, your line is now open. [Foreign language] So, my question is about the pricing strategies. We noticed that recently Beike has gradually raised the secondary home transaction commission rate to 3% in some cities. So I was wondering, number one is in how many cities have they started to adopt the 3% commission rate? Second is in each city, how do they differentiate the pricing of our in-house store versus third party connected stores? The third one is, are we going to further expand the 3% pricing to more cities in China? How should we look at the secondary home commission take rate in the rest of the year? A related question is, do we have any plan to increase the commission rate in new home transactions in the near future? Thank you very much. Okay. Thank you. Let me address your question. For our commission rate for the new home, actually we want to clarify the level commission rate actually reflects the service quality and transaction efficiency. The market of existing home sales is a market with a full competition and a balanced supply and demand market. Rising commission without being justified by service quality or transaction efficiency is just like water without a source and a tree without roots. In other words, it is not sustainable. With a neutral market view, our platform will actively explore a bilateral commission model to balance the financial burden between the buyers and sellers, while striving to improve the overall service quality, commitment coverage, and ability to identify the customer with strong purchase power in order to support the local branch to increase their bargaining power. The basic infrastructure of Beike is community-centric store network. To balance our existing home and the new home sales is very crucial, and we encourage our agents to take part in the community services and know client better and serve client better, and build up the long-term commitments and professional dignity to continuously improve their service quality, efficiency, and offer the most service guarantees. If you look at our take rate for our existing home sales in the past 3 years, so there's still a modest increase for our proprietary brand of Lianjia. In the past 2 years, the commission rate from 2.32% to 2.38%, and the last year is 2.4%. For our franchise brand of Deyou, the commission rate up and down in a very limited range. It's changed from 2.15% and 1.99%, and last year is 2.00%. For our connected brands in Beike platform for 278 brands. The weekly average, the take rate, they have a modest increase from 1.89% to 1.92%, and the last year, 2.07%. In conclusion, for our existing home commission rate, we expect a steady growth in both Lianjia, Deyou, and our connected stores. The existing home sales commission rate are more commitment covered and the quality service are improved. This will be the benefit from our platform. For the new home commission rate, actually for new home sales market is also a B2B market, in which we play an important and equal role with the developers. This is the perfect market and the high commission rate reflects our high efficiency, fast cash collection, as well as the high level of customer recognition. In the long run for the new home commission rate, in order to maintain mutual and beneficial and sustainable relationship with the growth developer, we expect commission rate to remain stable and at around 2.77%. Thank you. [Foreign language] Thank you very much. Thank you so much. Your next question comes from the line of Steven Tsai from Morgan Stanley. Steven, your line is now open. [Foreign language] Thank you, management, for taking my question. My question is related to the sales efficiency improvement for the connected stores. You previously mentioned that on a cohort basis, the third-party stores improved GTV per store by 100% and 26% in their first and second year, respectively, on the platform. Just wondering if there is any difference for the stores that joined later in the second half of 2019 or first half of 2020 in terms of the sales improvement trend that you have observed so far? Thanks. Okay. Thank you. We would like to say in 2020, Beike connect more than 47,000 stores and 493,000 agents. Our GTV year-over-year, as I mentioned just now, increased 64.5%. Amongst the incremental facts, we always emphasize the importance of our operating system, namely the ACN, the Agent Cooperation Network, to promote healthy platform development and prevent the vicious competition through the ecosystem governance. In 2020, within Beike platform, more than 81.5% listing actually come from third-party stores, and more than 75% is cross-store transaction, and more than 36% is cross-brand collaboration. As a consequence of this, if you look at our number, the store efficiency, namely the annual GTV per store in 2020, this is the total number. The big picture for our proprietary brand of Lianjia year-over-year increased 21.2%. For our franchise brand of Deyou, year-over-year, they increased 18.7%. For our connected brands in Beike platform, year-over-year, the efficiency increased by 17.2%. This is a big picture. If you look at the cohort base, their efficiency year-over-year increased is over 26%. Thank you. [Foreign language] Thank you. It's very clear. Thank you so much. Your next question comes from the line of John Lam from UBS. John, your line is now open. [Foreign language] Thank you very much. So, there are two questions from me. Number one is about what do we see in terms of the GTV trend for the primary and also secondary transaction, and also do we have the guidance for 2021 GTV? My second question is regarding the margin. We see that during the fourth quarter, adjusted net margin is about 8.8%, which city has the highest adjusted net margin, and what is the level of that margin? Thank you. Thank you, John. Let me address your question. We see steady growth especially for the existing home sales sector. This will be reflected in our outlook for the first quarter. As I mentioned just now, we expect the revenue for the first quarter of 2021 will be reached CNY 18.5 billion to CNY 19.5 billion. We cannot give the very detailed number for the Q1, because Q1 is still in progress. Regarding the second question, which city's margin is the high? Let me clarify, internally we do not measure our financial performance by cities. We are just a consolidation of the legal entities. We just can come and say internally we have a measurement, it's a managerial measurement, it's like the store efficiency. As I just talked with the last analyst, we measure the store efficiency by different city, different brand. This is our internal measurement so far. We can see the Shanghai city, the store efficiency is very good, because we step into Shanghai for 3 years, and we continuously recruit new graduates from the college. In Shanghai, our local management teams, each have so many service guarantee and so many business conduct for the agent. Overall, the client satisfaction has improved and the KPI has continuously improved. The efficiency of our store as a consequence continuously improve as well. Thank you. [Foreign language] Great, thank you. Thank you. Thank you so much. Our last question comes from the line of Thomas Zhao from Jefferies. Thomas, your line is now open. [Foreign language] Thanks management for taking my questions, and congratulations for a strong set of results. My question is more about the long term outlook. Can management talk about how we should think about the long term trends in terms of the GTV and profitability? Are we getting a bit even more optimistic about the outlook in the next few years? On the other hand, can you comment about any technological upgrade that we should be aware with regards to our back-end ecosystem? Thank you. Thank you for your question. This is Tao Xu, let me address your first question. Regarding our long-term GTV revenue and profitability projection, actually last year when we prepared the IPO, we have this IPO model and the releases to the market. We still keep our IPO model as unchanged. In that model in 2024, we see the GTV will be CNY 7.6 trillion, that revenue will be over CNY 161 billion and net profit, adjusted net profit will be CNY 18 billion. Far, we will not change this projection, because we need to balance our investment in future and also our profitability. As the management of Beike, we have a strong confidence to beat and raise on this. Regarding your second question, I will invite our CEO to give some further explanation. [Foreign language] This is Stanley, let me address your second question. Since we actually has been accumulate huge amounts of data in our operational history. In terms of the ACN evolution this year, we'll continue using the technology as well as the AI capability to continue to iterate our products and to further help the agents to get better services as well as serve better to our customers. We're using a lot of different types of the tools as I mentioned before, such as Beike's Pick as well as our AI assistant, Xiao Bei, which has helped the agent people to continue optimize as well as improve their efficiency as well as productivity. In the previous of the experience, in terms of the industrial internet, we truly believe the engineer's capability definitely can help of the service as well as the service providers within the industry can bring better. Definitely in the future, we will combine the two parts of the culture and the capability together to continue improve the efficiency and productivity for the ACN network. Thank you. [Foreign language] Thank you. Thank you so much. Due to the time limits, I will now turn the call over to your speaker host today, Mr. Matthew Zhao, for closing remarks. Yes, thank you, operator. Thank you once again for joining us today. If you have further questions, please feel free to contact Beike's investor relations teams 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. That does conclude our conference for today. Thank you for participating. You may all now disconnect.