IFM Investments' (Century 21 China Real Estate) CEO Discusses Q4 2011 Results - Q&A Session Transcript

Kevin Wei

Yes 340 is the second wheel of this year.

Harry Lu

Okay.

Ella Ji – Oppenheimer

Okay, great. That’s helpful. And then, in terms of those transactions you made since February, the purpose of those purchases are these mostly for own residence or for investments?

Harry Lu

Actually majority of them are still is, like you know, people will purchase home for themselves. You know, especially in the early stage of this rebound, with majority of home buyer is, like new home buyer buying smaller units. But recently we do see some buyers buying some, you know, relatively large units as well.

Ella Ji – Oppenheimer

Okay, thank you. And lastly, would you give us an update in terms of E-Houses transaction? And also, you know, if we assumed the transaction is successfully completed, could you comment you know, how do you plan to do the primary businesses in the, you know, Beijing area, you know, E-House is also a primary agency in the same market.

Harry Lu

I think for E-House, basically you know, we already disclosed have the list of press release talking about after we signed these term sheet. You know, we did have this discussion and then, you know, we are pending you know a discussion between founder and the avenue capital (inaudible) settlement talk. You know, once we you know, finish this settlement talk we’re going to resume this negotiation within this discussion.

But talking about in future, we believe you know, we already kind of set the model right now to sell the new home through our existing secondary network which is quite different compared with what E-House has right now. You can look at the commission we collect from developer is more than 2% and but you know typical commission they get from developer is 1%.

We are more like, you know, the using our precision network to kind of bring our own customer to please the developer to have them move their products and that’s a big difference. We’re going to keep doing that in the future. So, I think that that model would be quite different with existing primary agency business.

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