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Hello, ladies and gentlemen, thank you for standing by for our KE Holdings Inc.'s First Quarter 2021 Earnings Conference Call. [Operator Instructions] Today's conference 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 First Quarter 2021 Earnings Conference Call. The company's financial and operating results were published in the press release earlier today and are posted on our 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 strategic and business developments, and Mr. Xu will provide additional details on the company's financial results.
Before we continue, I refer you to our safe harbor statement in our earnings press release, which applies to this call as we will make forward-looking statements. Please also note that Beike's earnings press release and this conference call include discussions of an audit GAAP financial information as well as audit 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 renminbi.
With that, I will now turn the call over to our CEO, Mr. Stanley Peng. Please go ahead, Stanley.
Thank you, Matthew. Hello, everyone, and thank you for joining us today on our first quarter 2021 earnings conference call. We are very grateful to have achieved operational and financial results in the first quarter that considerably exceeded expectations, thanks to the tailwinds from China's robust economic growth following the COVID-19 pandemic and an adherence of the national policy housing [indiscernible] not for speculation as well as our unveiling focus on the long-term goal of delivering an excellent consumer experience through quality service.
Our total GTV grew rapidly to RMB 1.07 trillion, up 224.2% year-over-year. Meanwhile, the self-reinforcing virtual cycle of efficiency and stack scalability driven by quality service was further enhanced on our platform. We continue promoting industry digitalization by further building online infrastructure. In the first quarter, our housing dictionary contained data for over 244 million homes in China. Average MAUs, including our platforms, apps and retail mini programs reached 48.5 million in the first quarter, up 78% year-over-year. The expansion of our network scale also continue at a robust pace, while we remain focused on the quality of our network. By the end of the first quarter, the total number of connected stores reached 48,700, up 25.4% year-over-year. Seamlessly, a win-win collaboration among stores and brands continue to prevail on our platform.
In the first quarter, 76% of transactions on our platform were completed through cross-store collaborations and the transactions completed through cross-brand collaborations, remains steady at 36% on our platform, while connected stores accounted for 83% of existing home listings. In addition we continuously supported our connected stores and brands in recruiting, cultivating and retaining agents in the first quarter, which led to 41.8% year-over-year growth of the number of agents on our platform, reaching a total of 528,000.
With that overview, I would now like to provide you with some color on our existing home transaction services business. Total GTV of existing home transactions in China grew 133% year-over-year in the first quarter. The substantial gain was in part due to the low base in 2020 caused by the severe impact of the pandemic as well as the impact of some structural transaction growth at the regional level. On our platform, GTV of existing home transaction reached RMB 673.4 billion in the fourth quarter, increasing 244.2% and unit store GTV of existing home transactions achieved 174.7% year-over-year expansion, continuously improved service quality and efficiency of connected stores with the primary driver of this robust gains.
In the first quarter, we initiated an Agent Specialization Strategy, which encourages agents to focus on either existing home sales, new home sales or home rentals rather than their traditional mix functions in the industry, added by the cooperative reinforced among agents, along with clearly defined roles and the performance-based commission allocation mechanisms. This strategy has agents sharpened their focus, cultivate stronger professional service capabilities, promote efficiency and efficient customer conversion across different offerings. And ultimately improve store efficiency and the consumer experience. The Agent Specialization Strategy has proven very effective in enhancing consumer experience and store efficiency. Taking the pilot city of Hangzhou, as an example, over 30,000 agents were assigned to different roles in the first quarter. Unit store GTV was 11% higher in the store where Agent Specialization was implemented compared to stores that have not divided agents for functions. At the end of the first quarter, we had implemented this mechanism in 20 cities, covering 17,800 stores. Given the encouraging earning results, we plan to adopt this strategy in batch in at least 30 cities this year.
In order to create value for our consumers one step further and improve the real estate transaction process, we began opening offline contract service centers in our major cities. Our goal is to further guarantee transaction security, streamline the signing process and enhance the efficiency by multi-parties. The real estate contract and signing process tends to be very complicated and often requires comprehensive knowledge across financial, legal and tax builds. The lack of professional service offerings that fit these needs left consumers imposed to transaction risk. Our contract service center address exactly this pain point as they become the go-to location for customers regarding all contract-related services. The process is completed with a professional contract manager to ensure compliance and full risk disclosure, which provides a safe, efficient and a convenient contract insurance for our customers.
By the end of the first quarter, we have opened 74 contract signing service centers in 21 cities, switching deals to our new home transaction services. In the first quarter, GTV for our new home transaction increased 96% year-over-year in China, which was attributable to the low base last year as well as developers drawing incentive to accelerate sales through. GTV on our new home transaction services were RMB 343.4 billion, up 194.9% year-over-year, driven by the 220% GTV growth of connected stores and other channels as we continue to enhance the efficiency and professional training to our connected agents.
On par with our stellar financial performance, we also made a substantial stride in new home transaction in digitalization content, enriched in ecosystem governance. This aim to empower service providers such as developers and continue to enhance the service quality and maximize value for the customer. As we communicated during our fourth quarter earnings call, we are dedicated to build online content for new home transactions to improve the consumer experience, online penetration and to facilitate this segment's digital transformation. As of March 31, we enriched comprehensive multi-dimensional information for more than consulted new home sales projects on our platform, covering 34 cities and offering consumer with more online information such as 3D property booked through data processing. Together with platform and AI generated online content, such as valuation assessment reports and AI housing layout plans, we were able to better satisfy the consumers' needs for new home online information. We also optimize our new home sales traffic and the lease acquisition strategy. Thanks to all these initiatives, we generated, on average, a 10% increase in new home customer lease in those 34 cities in the first quarter and significantly enhanced the online experience for customers. Moreover, we launched a new home business contact improvement plan to advocate for our transparent and healthy new home sales environment based on governance and better collaboration mechanism in the new home transaction services.
Our goal is to facilitate a fair, self-efficient and orderly ecosystem for the new home transaction services that addresses the improper process that have existed for a long time, such as visors, competition for customers, customer information leakage and forced rebate. By promoting governance mechanisms in the industry, including rules and the protocols as well as the capability to implement them, we aim to protect agents' rights and offer a sense of security and certainty to them. Eventually this would substantially protect the optimization interest of developers and the improved agent efficiency and income, enhance the customer experience and create a venture cycle that enhance the overall operating efficiency of the new home industry.
In the first quarter, we implemented a verification system at the agent level and put in place city level supervision teams. We have also signed agreements with 91% of developers on our platform on 5 tones, making a firm commitment to the developers and the overall industry. For new homes and other important initiatives is the new home sales empowerment plan by cultivating dedicated agents with the expertise on new home transaction services as well as online and offline full spectrum customer acquisition capabilities, the plan caters to consumers' different needs when purchasing new home projects compared with existing homes. At the same time, the portfolio of new home sales channels we offer to developers is further enriched, better meeting their needs for more focused and efficient sales channels.
Lastly, on our emerging services, we have made steady progress in home renovation services and financial services. We completed 451 home renovation units in Beijing in the fourth quarter, while progressively iterating the infrastructure, including multiple self-developer -- self-developed systems. Among them, our self-developed system version 1 was launched in the first quarter. As part of the industry infrastructure, the Bay Beam system successfully digitalized home renovation and decoration design. For designers, the beam system enable automatic drawing up accurate real-time quotation and the generation of digital bill of materials bond as well as accurate VR design efforts supported by the VR capability available on our platform. This not only solved the industry-wide problem of visualizing and translating the abstract design from the designer's mind but also lays out the foundation for the final construction feasibility with higher enhanced data accuracy. For customers, it's gradually reforcing the notion that on our platform, what you see is what you get and them to take control of renovation costs. In real time, the service reliability is greatly enhanced. We believe we have established the industry-leading position in the infrastructure we provide for home renovation and decoration, including the system, products and applications for both consumers and service providers in terms of financial services. Recognizing 60% of our sellers in this new home transaction have a demand for property redemption, we promoted the engine bar products to meet owners' redemption needs for more efficiently and at an average 26% decrease in cost.
At the end of the first quarter, this product ed entered 7 cities, improving the overall transaction experience for homeowners in existing home transactions.
In summary, 2021 is off to a strong start with financial -- our financial and operational performance has spotlighted our core strength, and we continue to gain traction with our AC network in new and existing home markets. The national policy of house and now for living not for speculation that underpins the foundation for a steady and healthy real estate market provides added supported to our mission to transform the housing transaction and service industry in China. Going forward, we will continue to involve our business and invest in initiatives close to our core, while creating a new and better normal for the industry, building trust and increasing value for everyone along the way.
With that, I would like to turn the call over to our CFO, Xu Tao, for a closer review of our financial -- our first quarter financials. Thank you.
Thank you, Stanley, Thank you, everyone, for joining us. I would like to provide a brief overview for our first quarter 2021 financial results.
We are pleased to deliver another strong quarter of financial results, marked by high revenue growth and the strong profitability. Our net revenue increased by 190.7% year-over-year to RMB 20.7 billion in Q1, exceeding both high ends of our guidance and the Street consensus. The revenue growth of net revenue was driven by solid GTV growth of 224.2% year-over-year to RMB 1.07 trillion. The high-growth rate in the first quarter of 2021 was primarily attributed to a lower base in the same period of last year on the of 2019. However, also the experience the impact of in Q1. Our net revenue to still surpassed revenue in both Q2 and Q3 of last year and only declined single digit on a sequential basis, demonstrating the strong momentum of top line growth.
In particular, our net revenue from leasing home construction services increased by 202.1% year-over-year to RMB 10.2 billion in Q1, mainly due to a 244.2% year-over-year increase in GTV of its in-home construction to RMB 673.4 billion. Our net revenue from new home company services increased by 187.6% year-over-year to RMB 9.9 billion in Q1, primarily due to 194.9% year-over-year increase from GTV of new home transactions to RMB 343.4 billion in Q1. Our net revenue from merchant and after services increased by 96.2% year-over-year to RMB 0.6 billion in Q1. The increase was primarily due to an increase in GTV for financial services around housing tech services as well as increased the number of home tech region units completed supply base on.
Part revenue increased by 140% year-over-year to RMB 15.9 billion in Q1. Gross profit increased by 860.4% year-over-year to RMB 4.8 billion in Q1. Gross margin decreased to 23.3% from 7% in the same period of 2020. The increase in gross margin, mainly attributable to a lower base in the fourth quarter of 2020 under the impact of COVID-19 offering. Operating expenses were RMB 3.8 billion in Q1 compared to RMB 2.1 billion in the same period of 2020. General and administrative expenses were RMB 2.1 billion compared to RMB 1.1 billion in the same period of 2020, mainly due to the increase in as well as share-based compensation expenses.
Sales and marketing expenses were RMB 1.1 billion compared to RMB 577 million in the same period of 2020, mainly due to increased online/offline overtime and the branding teams. Research and development expenses were RMB 638 million in Q1 compared to RMB 451 million in the same period of 2020 mainly due to increase of experienced R&D personnel as well as increased share-based compensation expenses.
Income from operations were RMB 1 billion in Q1 compared to loss of operation RMB 1.6 billion in the same period of 2020. Operating margin was 4.9% in Q1 compared to negative 22.9% in the same period of 2020 primarily due to the increase of net branding and impact of COVID-19 offering in last Q1. Excluding non-GAAP items, our adjusted income from operation was RMB 1.6 billion in Q1 compared to adjusted loss from operations of RMB 1.5 billion in the same period of 2020. Other operating margin was 7.6% in Q1 compared to negative 20.8% in the same period of 2020.
Adjusted EBITDA was RMB 2.0 billion in Q1 compared to negative RMB 1.2 billion in the same period of 2020. Net income was RMB 1.1 billion in Q1 compared to a net loss of RMB 1.2 billion in the same period of 2020. Excluding non-GAAP items, our adjusted net income was RMB 1.5 billion in Q1 compared to adjusted net loss of RMB 1.1 billion in the same period of 2020. Net income attributable to ordinary shareholders was RMB 1.1 billion in Q1 compared to net loss attributable to alternate shareholders of RMB 1.9 billion in the same period of 2020.
Adjusted attributable to pro holding was RMB 1.5 billion in Q1 compared to adjusted net loss attributable to of RMB 1.1 billion in the same period of 2020. Diluted net income for GAAP attributable for holding in shareholders was RMB 0.88 in Q1 compared to negative RMB 3.92 in the same period of 2020. Adjusted diluted net income per ADS attributable to ordinary shareholders was RMB 1.25 in Q1 compared to negative RMB 3.64 in the same period of 2020.
As of March 31, 2021, the combined balance of our cash, cash equivalents, received cash and short-term investments amount to RMB 62 billion or USD 9.5 billion.
Looking forward to the second quarter of 2021. We expect our net revenue to be between RMB 22.5 billion and RMB 23.5 billion representing an increase of approximately 11.7% to 16.7% from the same quarter of 2020. Directly low year-over-year growth rate of our revenue guidance, mainly due to the higher base in the same period of last year, which results from a meaningful portion of transaction shipped from Q1 to Q2 last year due to the impact of COVID-19 offering. This business outlook reflects company's current plan review of the business situation and market conditions which is subject to change. Meanwhile, just our business operation business negatively impacted by COVID-19 operated in Q1 last year. And a meaningful portion of the transaction has been shipped to Q2 of last year. We suggest look at and compare our financial performance as a whole for the first half of 2021 versus the first half 2020 to better reflect our business progress.
Last, we noted certain cities have implemented new city level real estate policy change during the fourth quarter to control overhead housing price, which may bring active impact to the regional real estate market in the short term. Nevertheless, we believe that the stable real estate market explanation for the sustainable development of vehicle and the whole industry. Since the and upgrade amount of customers remains the main stream in housing concession market with the industry-leading service will continue to attract more customers and allow us to mitigate shorter saturation in 10 cities.
In conclusion, with the long-term outlook and market, we are confident in our growth trajectory. Our commitment is consistently enhancing our efforts in bringing value to consumers and the service provider while continuing to support and realize.
That concludes our prepared remarks. We would like now to open the call to questions. Operator, please go ahead.
[Operator Instructions] Our first question comes from the line of Elsie Cheng from Goldman Sachs.
[Foreign Language] And congrats on the strong quarter again. I have 3 questions. First is about the efficiency at Lianjia stores. Can you share a bit more color into the GTV per stock growth as well as the main drivers of the growth for the quarter? And then second is on antitrust regulations in China. How does management think about the regulatory environment and it impacts our company, if any? Third is about the macro and housing industry, where we've seen some tightening policies in a couple of Tier 1 cities. And what would be the impact from those cities? And how should we think about future trends?
Thank you, Elsie. Let me regarding our store efficiency for Lianjia online stores. The first quarter 2021, the average TV per store increased 163.3% year-over-year and quarter-over-quarter, sequentially, we decreased 2%. Our competitor brand of Lianjia year-over-year has increased 182% and the quarter-on-quarter increase 2%. Our connected store increased year-over-year, 193%, whereas quarter-over-quarter increased 5%. The year-over-year increase is mainly due to net impact of COVID-19 because last year into 2019 operate, we shut down our business for 1.5 months to secure the safety of our agents and the bonds. That's during the period our 2 was not fully affected, but deduct very well. So a lot of and meaningful portal transaction shift from Q1 to Q2. This is the main reason. For the quarter-on-quarter decrease, just owing to 2019 because normally, every Q4 strong quarter, every Q1 is relatively weak quarter owing to the Chinese New Year holiday. But if you look at this a Q1 versus -- Q1 versus last Q4, the number for this quarter is very meaningful because we -- even though we have the impact for the Chinese New Year, but revenue effect of quality, efficiency and scalability on stock is further played out. That the traditional low season for fourth quarter, and it's a big seasonal first quarter did not show much impact and just at Q1, we still delivered robust results at number exceeds last Q2 and Q3.
Looking back in 2020 store for our brand of Lianjia 164 million to 48 million other connected store of 36 million. Back end of 2020, there were more than 31% store past the 50 million. Looking forward, this number increased to 36.7% in this quarter. That means more than 17,000 stores in paper platform already passed the 50 million price. We anticipate by 2025, more than 90% of our store on price and the 50 million. According to our IT model and the 2019 business and we are very confident that our active brand of Lianjia from 2019 to 2024, the CAGR every year will be reached 11% to 12% and connected store efficiency is 15% to 16% CAGR year-over-year. In the long run, we would like to say that will continue to reveal with network effect. The new home sales business development increase efficiency given for the scientific store management and support service green customer satisfaction, all of this were for to enhance store efficiency. This is regarding your questions for recent untied trust regulation that comes from paper. So paper consistently operate within the bounds of the laws, regulations and the rules. We always prioritize to increase of user and spend efforts to achieve when we result through the call of GTV mechanism. Paper insists and are committed to promote the health development of the industry, devoted in solving new profitability, just problem caused by the housing supply and demand balance and the bigger striving to be outselling compliance with the rules and regulations. For the monthly, our understanding the antitrust governance is to regulate and promotes housing sustainable industry development for selected industry towards being more platform-based, digitalized and automated and to prevent the disorderly expansions through captive investment to and the combined competition environments. Regulations are in place to promote house development for the industry and to encourage development the non-public sectors in the economy. Though this run frequent communication with government authorities as a corporate system, we are even more determined to take social response as top priorities. At the same time, the government also gained a better understanding of our Beike's business model and the contribution we have made to have industry growth and the situation over the past 20 years. Beike sincerely welcomes the supervision, compliance and suggesting from customers that the public so that we can fixed the product and with ourselves and the impact to society. At the same time, we're also very grateful that the regulatory authority for the understanding and the guidance on our business. And recognition of what we have brought to the entire industry.
Regarding your third question for the macro economy and some policy change, per our understanding, the central coming conference in this year drives the real estate market-related to people's livelihood welfare. That is we always mentioned housing for living, not for speculation. And this is a key policy to promote the study and the housing market. The goal for this policy is to protect to market down to of operations. Based on the judgment in this year, some settings have been introduced relatively mild mirrors. This manner have effectively prevents market from heating in some cities by changes and wide severe matters and rate of fluctuation down the road and posted the market with a stable growth which provides a beneficial environment for vacancy operation.
From a market perspective, what government wanted the stability is not freezing. In other words, the market cannot to halt and cannot to and moderate gross market penetration to the China economy, especially post the pandemic period. A market with reasonable volatility is the best market to prevent and trucks that sometimes people pull forward future transactions. And just is very conducive for the operation of the companies that has a long-term and outlook such as we do. Because the bigger we want along with government demand, which is steady transaction volume for the long run instead of benefiting only during the peak seasons.
From a macro perspective, obviously, with the all regulatory policy pertaining to speculative demand in market, with the goal of squeezing out. But the mainstream demand was still in site market, such as rating housing demands and the people's readiness to upgrade demand. We will be gradually released all of this demand while we gradually released in the remaining months of the year, and we will work on to produce it. Also some things need to be cut on once the remaining transaction in most of other cities will be still secured. So from this perspective, we do not believe nationwide transaction volume will be significantly affected. One page to reference is excluding the GTV in our Tier 1 site micro Beijing, Shanghai, Guangdong, so our GTV in March compared with general still increased 55.5% in March. As a national platform allow us to mitigate fluctuation in 2 cities and in Beike, we are very confident to deliver robust results for the rest of the year.
The 19 years history of Beike and Lianjia has proven that a neutral market with balanced supply and demand provides the best foundation for our long-term development. And our cost of development from 2017 to 2020 also demonstrate Beike is a firm supporter and the beneficiary of the natural policy house for living and as
Your next question comes from the line of Thomas Chong from Jefferies.
[Foreign Language] And congratulations on a very solid set of results. My question is more about the second outlook as well as the trend for different segments. Can management comment about how the trend will look like for the GTV, revenue and the profitability, together with -- on a by segment basis, how should we think about the trend for the existing home, new home as well as the emerging services outlook as we come to the second half?
Okay. Thank you, Thomas. And regarding the first question, for our second half outlook because has delivered factors in financial performance in past 3 quarters continues to. So looking forward, we have confidence to continue to deliver strong growth for the rest of the year. Just now, we give our guidance of Q2 revenue is 22.5 billion to 23.5 billion is the year-over-year still have 11% to 15% increase. So in 2021 fundamental purpose of regulatory policy in certain cities is preventing housing price going up too fast and the question now. So I just -- as I just answered the question to IOC, we still sort the second half our market will be stable and healthy owing to the rigid demand and the people's earnings will change to continue to improve the living conditions. So we do not believe the national concession volume will be continue to affect. So we are very confident to deliver the robust results for the rest of the year. This is our answer to first question.
The second is regarding your question for our take rate on our commission rate. So I think this question will reiterate time to time during the year calls. The level commission rate actually reflects the report production efficiency and a number of service expansion we offer. Today, China residential market, both for the existing home and the new home is a market with a full competition and balanced a supply. The platform can launch and does not have the capability to actively chart, mainly raising the commission rate without being justified by the service quality, transaction efficiency and the number of service guarantees offered is not sustainable, especially for the new home sales market is the digital 3D market. more at the dominant position.
And this number talks in our past 4 years oiling to papers sold efficiency and excellent service quality, our new home commission rate [indiscernible] increased from 2.55 to 2.66, 2.71 and 2.74. And in the first quarter, our commission rate for the new home is at 2.89. Beike does not have any intention to increase our commission rate.
We stand that we will focus on to pioneer with devices to jointly and continuously promote by the [indiscernible]. And so for example, we are doing [indiscernible] together, we were partners process in production. And for [indiscernible] in the past 3 years, our property brand of Lianjia commission rate gradually grows from 2.3 to 2.4. And the financial stock quietly grew from 1.89 to 2.05. In the future, we still say the changing commission rates while continuing to rely on the progression of the service quality, efficiency and the service agreement we offer to clients. This is regarding your second question.
Regarding your last question for our [indiscernible] financial services and bank for our declaration, let me talk about the renovation acquisition first. In 2020, our Board -- renovation declaration, the total contract signing is 2,500 and we complete the units more than 2,300. And in this Q1, even if there is some impact for Chinese New Year holiday, but we still complete the project with 551 units. And we recently foresee post the contract signing at the number of units that recently completed in 2021 will be doubled compared to 2020.
The very important thing is we believe the key success factor for [indiscernible] constructing business, our customer acquisition efficiency, control over the tenants and control over delivered process and the service quality. And this market in China is big, it's around CNY 3.6 trillion in 2020 and with low market concentration and in the last 5 years. We estimate will be 0.5% paper, which is a huge market opportunities. So big growth, we have our parent upon doing the first we have on page in customer acquisition. The industry partner and operation channel was very fragmented. Just leverage up of the advantage from the home transaction, and we anticipate the 6% part of this in home concession are strong related to speculation of demand. In addition, we have a powerful in an online/off-line integrated capabilities. And the Beike had a powerful open management and power and have business experience. So we foresee our system is rooted in the business demand and continuously to improve, effectively assist management's operation and Internet business road map to see over control quality of the workers and the programs. And for our financial business, the growth of financial service PTV in Q1 exceeded our expectation. This is mainly due to our sustainable growth of our home transaction services and our stable financial service penetration rate. And regarding, regarding some petition rate of financial service in has slightly. This was mainly due to the fact that the Q1 market is very volatile and the major cities have undergone various regulation adjustments and the consumers' tax variability driving other friction costs that have in new period has been increased. With sense, we natural for financial services to assist with these new home transaction and how consumers the transaction. So we have strategically launched under the span the scope of green fund financial services in some cities, especially to current travel services.
So we actually reflect, we pass over some benefit to our transaction business by providing some reliable financial service free of charge to our customers, and we're not very hardly to realize a profit from those services soon. And this is also in line with network policy of house for living and not for speculation. We will continue to support the neutral market view and doing same, too, for consumers. Okay hope this clarifies.
[Interpreted] Thomas, this is Stanley. Let me add on in terms of our philosophy to develop of the new business in the future. So firstly, when we look at the new business, we always look at the big potentials of big market size in those kind of areas. We noticed a rounding of the residential topics, there always be some of the big market potentials, such as renovation and decoration. And when we noticed those kind of industries, they always have some of the common pain points such as overall user experience are extremely low. And there's -- the overall players in that market are quite fragmented as well as overall service procedures are quite completed. So based on our past 19 years of experience from the Lianjia's practice to Beike, we believe the transforming of the industrial Internet would definitely go to the routine, firstly, doing deeply than doing horizontally. So we believe it's the only way to do that, right? Especially when we're doing deeply, it means we will dig deep into that industry, and I understand the standard and build up a new standard for the services. So in the past 19 years, we actually get a couple of the takes firstly, is what we used to call the 3 standards, right? So firstly, it's about the service provider standard. What kind of services could be called good services and how we define that. So that will be the first thing is we can further empower to the service providers in the industry such as decoration and renovation. And secondly, is the standard for the overall service procedures, right? Especially, for example, like the renovation business during of the whole construction part and how we can provide the SOP as well as define of the new standard for the overall services is what we continue to work on. And the third part, it would standard for -- the standard for the data as well as the system, right? So we noticed the industry such as other markets such as decoration, there's no systematic data has been online and has been digitalized. So that is why in the past period, we really focus on how we can build up the standard, how we build up the protocols, as I have already mentioned, during my prepared remarks. For example, we also build up the beam system as well as other initiatives in order to further increase of the standard as well as the protocols understanding for this part of business. So in summary, when we look at the new business, as we mentioned, so we always has a full commitment as well as the endeavor to further transform of that power business. So we strongly look at -- encourage investors to look at our effort for the new business, at least on the 3-year basis, right? So -- and that will give us more confidence to continue and prepare more efforts to further transforming of the new business in the future.
Your next question comes from the line of Liping from CICC.
[Foreign Language] I have 2 questions here. First one is related to the new home transaction. Some believe the entry barrier of new home transaction business is relatively lower compared to existing home transactions. There are more players in the market recently. What is Beike's core competitive advantage in new home transaction and what's your strategy to protect and gain more market share? And second question related to existing home transaction. So compared with property service company, Baker has strong efficiency in matching buyers and listed homes. However, those property service companies have the advantage of being localized players and tight relationship with property owners. In the long run, whether our plans to involve more players around the industry value chain, for example, those property service companies.
Okay. Regarding your first question for the new home sales and our core competency, one, Beike, we would like to see, as we mentioned earlier year-over-year cost, right of the Beike more capital play on into this industry and the third is. And we truly welcome more buyers to decide where to our to keep more continuously reevaluate and polish our strategy and it ourselves. And from Beike, we do hope to cooperate offer with everyone to make this industry a better environment for agents and to increase agent efficiency and to improve the customer experience for the housing transactions. So far, we do realize there's some stringent slight unfair competition and the capital based disorderly functions such as setting low commission rates, higher rebate or so-called unrealistic banking valuation premise. This is definitely both proposition and which is made of deep understanding of how to do business for the new home transactions. And in the past and last year, with Internet of the a industry with high-profile than, which ended up with acquisition at a disapproved distribution now. So the core competence of the new home business, only 2 things. The first is caring about agents. agents basic interest and timely repayment. But in Q1, we paid CNY 4.3 billion secured to secure agent interest and make sure that people will get money in time. The second is a about customers, improving the customer experience in new home-buying process and promoting the 3 days cooling down period, et cetera. This is what we have, continues to do it. Also we are not perfect at this moment, but we are already on the way of doing so. Where there is a will, there's a way. So currently, Beike, we are currently focused on the online information building and should become even more closer with the bankers to be built on orderly and better sales office. connected brand in-store outside sing to further promote the customer force and the service to be infinitely close to is what will new to stress unless need to put this up.
Okay. Regarding the second question for the 2 homes, I would like to say -- your question is for some sticking orders. So this is nothing new. The so-called order issue in this market in passengers, which we treated this as a kind of normal rated loss to our business. We called this model as a peracetic model. We have always believed that as long as we insist on providing quality service and using for China consumers, consumer will vote with their feet, which have been also verified by our past 19 years of histories. And for those who want to take advantage from the skipping orders whether their property management companies or other companies may be ultimately punished by the market. We believe that as the trends market entering the year of balance between supply and demand. Consumer demand for the service will rise for and the consumer will increasingly choose better quality service provider like better growth. The business volumes through the skip order will also decrease, which will now been impact to us in the future. For some actually, they do have some local -- the local committee advantage that is difficult to provide consumer with the most comprehensive source of listing. Most owners will not change houses in the same complex. This is a common practice from our observation. At the complement countries announced for most listing and source within. At the same time, the real estate developers do not have the ability to outweigh the most professional and efficient service provider in the real estate brokerage industry. Therefore, from best model perspective, it is difficult for the proxy management companies to generate credibility for real estate brokers service on large scale. This property companies have prevented broker company from serving owner and the damage to owner's rights and interest. According to the civil code, the owner has their own rights to vote of the project contents. In the long run, we believe the development of property management in the China benefits hundreds of people. Actually, the property have always been opted for our study. We believe as long as the property management companies that aim to provide consumer with good service by will not to competition by taking our carton orders from their consumers. We also welcome the more actively established contact with the leading problematic companies as is for to build our partnership in the residential solutions.
Our next question comes from the line of Binbin Ding from JPMorgan.
[Foreign Language] I have 2 questions. So the notice that recently, the management of Antico made some comments on labor regarding the industry as well as Beike. So my first question is a follow-up on antitrust. I know from a market share perspective, we are not -- apparently not obvious dominant position in the market. But in other aspects or processes are exposed to the highest potential antitrust risk in your? Second question is related to competition. So from a competitive angle, will the changes in recent competitive dynamic, including the listing of ANGI could bring any changes or make you become more aggressive in terms of certain operational strategies?
Okay. Regarding your second question for the antitrust, I believe I have already gave a very clear answer on the operation. We will answer the question from IOC and government. So regarding your first question, we would like to say used to be a leading online information company in China real estate verticals. It has been and accumulate online user traffic and used to establish some competitive advantage in this area, just like e-House gain more fund in the. That is one of the fellow industry participants and we have risk respect. Normally, we don't comment other peers' performance directly, but I'd like to take the chance to share our view on how to build capable company when doing housing transaction in China.
Maintaining and providing authentic listing is not option. It is a foundation for or real transactions, eliminating inauthentic and fake listing marks the beginning of the success for any business model. This is I want to mentioned, the point one. The point 2 is when select new home project work with people should care to a comprehensive on the straight risk management system with 3 key requirements, scale of the project, reasonable commission rate to incentivize agents and the solid payment core capability as well as the positive cash flow of the business operation. Otherwise, the business model is not sustainable. To serve the comprehensive risk assessment system and tested and experienced offline operation forms, housing receivable turnover days and big profit for commissioning the ones to secure agent's interest. The monitor and prevented rebate and the customer interception figures, this is a long way to go. The competition through the shortened behavior such as an excessive commission sharing and lower price while brings a high uncertainty to the -- its model in the long run. This is definitely the form's competition and we go for deep on of the market. So we're just come one Singapore ANGI. We not take the cash position might be a bottleneck for ANGI new home business as doing new home business requires strong hedge position of the audit. According to ANGI's prospectors as of February 28, 2021, the balance of cash, cash equivalent and short investment total amounted to RMB 1.63 billion. While in the same period, the Beike just paid commission in the banks of RMB 4.3 billion to agents to secure their interest, which covers 166 and 130,000 payments and recovered 5,018 projects. From to basis, our cash, cash equivalents and short-term investments amounted to RMB 49.1 billion by end of Q1, which is 30x of ANGI. Regarding recent notice from Yaoxin bar on social media, we're reluctant when they go slow, we go high. Don't waste time on this guy. Operator
We are now approaching the end of the conference call. I will now turn the call over to your speaker host today, Mr. Matthew Zhao, for closing remarks.
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 teams through the information provided on our website. This concludes today's call, and we're looking forward to speaking with you again next quarter. Thank you, and goodbye.
This concludes today's conference call. Thank you for participating. You may now disconnect.
[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]