Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2023 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-39436 |
Entity Registrant Name | KE Holdings Inc. |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | Oriental Electronic Technology Building |
Entity Address, Address Line Two | No. 2 Chuangye Road, Haidian District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100086 |
Entity Address, Country | CN |
Title of 12(b) Security | Class Aordinary shares, par value US$0.00002 per share |
Trading Symbol | BEKE |
Security Exchange Name | NYSE |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Financial Statement Error Correction [Flag] | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Central Index Key | 0001809587 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Auditor Name | PricewaterhouseCoopers Zhong Tian LLP |
Auditor Firm ID | 1424 |
Auditor Location | Beijing |
Business Contact | |
Entity Address, Address Line One | Oriental Electronic Technology Building |
Entity Address, Address Line Two | No. 2 Chuangye Road, Haidian District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100086 |
City Area Code | 86 |
Local Phone Number | 10 5810 4689 |
Contact Personnel Name | XU Tao |
Contact Personnel Email Address | ir@ke.com |
Entity Address, Country | CN |
Ordinary shares | |
Entity Common Stock, Shares Outstanding | 3,595,215,393 |
Class A Ordinary Shares [Member] | |
Entity Common Stock, Shares Outstanding | 3,443,860,844 |
Entity Common Stock, Shares Outstanding Excluding Shares Reserved For Future Issuance Of ADS | 104,033,244 |
Class B Ordinary Shares [Member] | |
Entity Common Stock, Shares Outstanding | 151,354,549 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | |
Current assets: | ||||
Cash and cash equivalents | ¥ 19,634,716 | $ 2,765,492 | ¥ 19,413,202 | |
Restricted cash | 6,222,745 | 876,455 | 6,181,057 | |
Shortterm investments | 34,257,958 | 4,825,132 | 35,485,908 | |
Accounts receivable and contract assets, net of allowance for credit losses of RMB 2,088,478 and RMB 1,681,127 as of December 31, 2022 and 2023, respectively | 3,176,169 | 447,354 | 4,163,022 | |
Loan receivables from related parties | 28,030 | 3,948 | 50,463 | |
Prepayments, receivables and other assets | 4,666,976 | 657,331 | 4,057,843 | |
Total current assets | 69,753,623 | 9,824,593 | 70,424,675 | |
Noncurrent assets: | ||||
Property, plant and equipment, net | 1,965,098 | 276,778 | 2,036,553 | |
Rightofuse assets | 17,617,915 | 2,481,431 | 11,284,070 | |
Longterm investments, net | 23,570,988 | 3,319,904 | 17,925,653 | |
Intangible assets, net | 1,067,459 | 150,348 | 1,686,976 | |
Goodwill | 4,856,807 | 684,067 | 4,934,235 | |
Other noncurrent assets | 1,473,041 | 207,474 | 1,032,251 | |
Total noncurrent assets | 50,578,308 | 7,123,805 | 38,922,672 | |
TOTAL ASSETS | 120,331,931 | 16,948,398 | 109,347,347 | |
Current liabilities | ||||
Accounts payable (including amounts of the consolidated VIEs without recourse to the primary beneficiaries of RMB 62,910 and RMB 68,000 as of December 31, 2022 and 2023, respectively) | 6,328,516 | 891,353 | 5,843,321 | |
Employee compensation and welfare payable (including amounts of the consolidated VIEs without recourse to the primary beneficiaries of RMB 386,874 and RMB 371,917 as of December 31, 2022 and 2023, respectively) | 8,145,779 | 1,147,309 | 9,365,512 | |
Customer deposits payable (including amounts of the consolidated VIEs without recourse to the primary beneficiaries of RMB 2,915,103 and RMB 2,540,511 as of December 31, 2022 and 2023, respectively) | 3,900,564 | 549,383 | 4,194,828 | |
Income taxes payable (including amounts of the consolidated VIEs without recourse to the primary beneficiaries of RMB 50,383 and RMB 35,274 as of December 31, 2022 and 2023, respectively) | 698,568 | 98,391 | 542,290 | |
Short-term borrowings (including amounts of the consolidated VIEs without recourse to the primary beneficiaries of nil as of both December 31, 2022 and 2023) | 290,450 | 40,909 | 619,000 | |
Lease liabilities current portion (including amounts of the consolidated VIEs without recourse to the primary beneficiaries of RMB 369 and RMB 383 as of December 31, 2022 and 2023, respectively) | 9,368,607 | 1,319,541 | 4,972,345 | |
Contract liabilities (including amounts of the consolidated VIEs without recourse to the primary beneficiaries of RMB 5,572 and RMB 4,291 as of December 31, 2022 and 2023, respectively) | 4,665,201 | 657,080 | 3,260,269 | |
Accrued expenses and other current liabilities (including amounts of the consolidated VIEs without recourse to the primary beneficiaries of RMB 199,443 and RMB 153,102 as of December 31, 2022 and 2023, respectively) | 5,695,948 | 802,257 | 4,118,068 | |
Total current liabilities | 39,523,983 | 5,566,837 | 33,341,318 | |
Noncurrent liabilities | ||||
Deferred tax liabilities (including amounts of the consolidated VIEs without recourse to the primary beneficiaries of RMB 4,483 and RMB 3,788 as of December 31, 2022 and 2023, respectively) | 279,341 | 39,344 | 351,186 | |
Lease liabilities non-current portion (including amounts of the consolidated VIEs without recourse to the primary beneficiaries of RMB 23 and nil as of December 31, 2022 and 2023, respectively) | 8,327,113 | 1,172,849 | 6,599,930 | |
Other noncurrent liabilities | 389 | 55 | 475 | |
Total noncurrent liabilities | 8,606,843 | 1,212,248 | 6,951,591 | |
TOTAL LIABILITIES | 48,130,826 | 6,779,085 | 40,292,909 | |
Commitments and contingencies | ||||
KE Holdings Inc. shareholders' equity: | ||||
Ordinary shares | [1] | 475 | 67 | 487 |
Treasury shares | (866,198) | (122,001) | (225,329) | |
Additional paidin capital | 77,583,054 | 10,927,345 | 80,302,956 | |
Statutory reserves | 811,107 | 114,242 | 660,817 | |
Accumulated other comprehensive income (loss) | 244,302 | 34,409 | (412,721) | |
Accumulated deficit | (5,672,916) | (799,014) | (11,405,850) | |
Total KE Holdings Inc. shareholders' equity | 72,099,824 | 10,155,048 | 68,920,360 | |
Noncontrolling interests | 101,281 | 14,265 | 134,078 | |
TOTAL SHAREHOLDERS' EQUITY | 72,201,105 | 10,169,313 | 69,054,438 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 120,331,931 | 16,948,398 | 109,347,347 | |
Nonrelated Party | ||||
Current assets: | ||||
Short-term financing receivables, net of allowance for credit losses of RMB139,427 and RMB122,482 as of December 31, 2022 and 2023, respectively | 1,347,759 | 189,828 | 667,224 | |
Related Party | ||||
Current assets: | ||||
Amounts due from and prepayments to related parties | 419,270 | 59,053 | 405,956 | |
Noncurrent assets: | ||||
Long-term loan receivables from related parties | 27,000 | 3,803 | 22,934 | |
Current liabilities | ||||
Amounts due to related parties (including amounts of the consolidated VIEs without recourse to the primary beneficiaries of RMB 822 and RMB 905 as of December 31, 2022 and 2023, respectively) | ¥ 430,350 | $ 60,614 | ¥ 425,685 | |
[1]Excluding the Class A ordinary shares registered in the name of the depositary bank for future issuance of ADSs upon the exercise or vesting of awards granted under our share incentive plans and the Class A ordinary shares repurchased but not cancelled in the form of ADSs. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2022 CNY (¥) shares |
Current assets: | ||
Short-term financing receivables, net of allowance for credit losses | ¥ 122,482 | ¥ 139,427 |
Accounts receivable and contract assets, net of allowance for credit losses | 1,681,127 | 2,088,478 |
Current liabilities | ||
Accounts payable | 6,328,516 | 5,843,321 |
Employee compensation and welfare payable | 8,145,779 | 9,365,512 |
Customer deposits payable | 3,900,564 | 4,194,828 |
Income taxes payable | 698,568 | 542,290 |
Short-term borrowings | 290,450 | 619,000 |
Lease liabilities current portion | 9,368,607 | 4,972,345 |
Contract liabilities | 4,665,201 | 3,260,269 |
Accrued expenses and other current liabilities | 5,695,948 | 4,118,068 |
Noncurrent liabilities | ||
Deferred tax liabilities | 279,341 | 351,186 |
Lease liabilities non-current portion | ¥ 8,327,113 | ¥ 6,599,930 |
KE Holdings Inc. shareholders' equity: | ||
Ordinary shares, shares authorized | shares | 25,000,000,000 | 25,000,000,000 |
Class A ordinary shares | ||
KE Holdings Inc. shareholders' equity: | ||
Ordinary shares, shares authorized | shares | 24,114,698,720 | 24,114,698,720 |
Ordinary shares, shares issued | shares | 3,571,960,220 | 3,601,547,279 |
Ordinary shares, shares outstanding | shares | 3,443,860,844 | 3,561,632,933 |
Class B ordinary shares | ||
KE Holdings Inc. shareholders' equity: | ||
Ordinary shares, shares authorized | shares | 885,301,280 | 885,301,280 |
Ordinary shares, shares issued | shares | 151,354,549 | 156,426,896 |
Ordinary shares, shares outstanding | shares | 151,354,549 | 156,426,896 |
Nonrelated Party | ||
Current assets: | ||
Short-term financing receivables, net of allowance for credit losses | ¥ 122,482 | ¥ 139,427 |
Related Party | ||
Current liabilities | ||
Amounts due to related parties | 430,350 | 425,685 |
VIE | ||
Current liabilities | ||
Accounts payable | 68,000 | 62,910 |
Employee compensation and welfare payable | 371,917 | 386,874 |
Customer deposits payable | 2,540,511 | 2,915,103 |
Income taxes payable | 35,274 | 50,383 |
Short-term borrowings | 0 | 0 |
Lease liabilities current portion | 383 | 369 |
Contract liabilities | 4,291 | 5,572 |
Accrued expenses and other current liabilities | 153,102 | 199,443 |
Noncurrent liabilities | ||
Deferred tax liabilities | 3,788 | 4,483 |
Lease liabilities non-current portion | 0 | 23 |
VIE | Related Party | ||
Current liabilities | ||
Accounts payable | 905 | 822 |
Amounts due to related parties | ¥ 905 | ¥ 822 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | |
Net revenues: | ||||
Total net revenues | ¥ 77,776,932 | $ 10,954,652 | ¥ 60,668,779 | ¥ 80,752,439 |
Cost of revenues: | ||||
Commissionsplit | (25,713,752) | (3,621,706) | (20,499,632) | (31,633,827) |
Commission and compensationinternal | (17,884,796) | (2,519,021) | (17,853,694) | (26,303,507) |
Cost of home renovation and furnishing | (7,705,325) | (1,085,272) | (3,562,068) | (195,869) |
Cost related to stores | (2,872,093) | (404,526) | (3,346,436) | (3,809,757) |
Others | (1,882,952) | (265,208) | (1,626,202) | (2,990,064) |
Total cost of revenues | (56,058,918) | (7,895,733) | (46,888,032) | (64,933,024) |
Gross profit | 21,718,014 | 3,058,919 | 13,780,747 | 15,819,415 |
Operating expenses: | ||||
Sales and marketing expenses | (6,654,178) | (937,221) | (4,573,382) | (4,309,116) |
General and administrative expenses | (8,236,569) | (1,160,096) | (7,346,665) | (8,924,470) |
Research and development expenses | (1,936,780) | (272,790) | (2,545,549) | (3,193,988) |
Impairment of goodwill, intangible assets and other long-lived assets | (93,417) | (13,158) | (148,057) | (746,705) |
Total operating expenses | (16,920,944) | (2,383,265) | (14,613,653) | (17,174,279) |
Income (loss) from operations | 4,797,070 | 675,654 | (832,906) | (1,354,864) |
Interest income, net | 1,263,332 | 177,937 | 743,484 | 354,567 |
Share of results of equity investees | 9,098 | 1,281 | 44,588 | 39,520 |
Impairment loss for equity investments accounted for using equity method | (10,369) | (1,460) | (2,914) | |
Fair value changes in investments, net | 78,320 | 11,031 | (512,225) | 564,804 |
Impairment loss for equity investments accounted for using measurement alternative | (28,800) | (4,056) | (591,876) | (183,789) |
Foreign currency exchange gain (loss) | (93,956) | (13,233) | (127,362) | 20,988 |
Other income, net | 1,869,300 | 263,285 | 1,568,587 | 1,702,414 |
Income before income tax expense | 7,883,995 | 1,110,439 | 292,290 | 1,140,726 |
Income tax expense | (1,994,391) | (280,904) | (1,689,574) | (1,665,492) |
Net income (loss) | 5,889,604 | 829,535 | (1,397,284) | (524,766) |
Net loss (income) attributable to noncontrolling interests shareholders | (6,380) | (899) | 11,210 | 637 |
Net income (loss) attributable to KE Holdings Inc. | 5,883,224 | 828,636 | (1,386,074) | (524,129) |
Net income (loss) attributable to KE Holdings Inc.'s ordinary shareholders | 5,883,224 | 828,636 | (1,386,074) | (524,129) |
Other comprehensive income (loss) | ||||
Currency translation adjustments | 574,223 | 80,878 | 2,602,071 | (841,214) |
Unrealized gains (losses) on available-for-sale investments, net of reclassification | 82,800 | 11,662 | (375,069) | 35,578 |
Total other comprehensive income (loss) | 657,023 | 92,540 | 2,227,002 | (805,636) |
Total comprehensive income (loss) | 6,546,627 | 922,075 | 829,718 | (1,330,402) |
Comprehensive loss (income) attributable to noncontrolling interests shareholders | (6,380) | (899) | 11,210 | 637 |
Comprehensive income (loss) attributable to KE Holdings Inc. | 6,540,247 | 921,176 | 840,928 | (1,329,765) |
Comprehensive income (loss) attributable to KE Holdings Inc.'s ordinary shareholders | ¥ 6,540,247 | $ 921,176 | ¥ 840,928 | ¥ (1,329,765) |
Weighted average number of ordinary shares used in computing net income (loss) per share, basic and diluted | ||||
- Basic (in shares) | 3,521,379,938 | 3,521,379,938 | 3,569,179,079 | 3,549,121,628 |
- Diluted (in shares) | 3,611,653,020 | 3,611,653,020 | 3,569,179,079 | 3,549,121,628 |
Net income (loss) per share attributable to ordinary shareholders | ||||
- Basic (per share) | (per share) | ¥ 1.67 | $ 0.24 | ¥ (0.39) | ¥ (0.15) |
- Diluted (per share) | (per share) | ¥ 1.63 | $ 0.23 | ¥ (0.39) | ¥ (0.15) |
Share-based compensation expenses included in: | ||||
Sharebased compensation expenses included in: | ¥ | ¥ 3,215,549 | ¥ 2,425,249 | ¥ 1,538,287 | |
Cost of revenues | ||||
Share-based compensation expenses included in: | ||||
Sharebased compensation expenses included in: | 502,523 | $ 70,779 | 356,844 | 406,131 |
Sales and marketing expenses | ||||
Share-based compensation expenses included in: | ||||
Sharebased compensation expenses included in: | 180,465 | 25,418 | 121,396 | 110,446 |
General and administrative expenses | ||||
Share-based compensation expenses included in: | ||||
Sharebased compensation expenses included in: | 2,345,895 | 330,412 | 1,659,755 | 595,732 |
Research and development expenses | ||||
Share-based compensation expenses included in: | ||||
Sharebased compensation expenses included in: | 186,666 | 26,291 | 287,254 | 425,978 |
Existing home transaction services | ||||
Net revenues: | ||||
Total net revenues | 27,954,135 | 3,937,258 | 24,123,703 | 31,947,953 |
New home transaction services | ||||
Net revenues: | ||||
Total net revenues | 30,575,778 | 4,306,508 | 28,650,374 | 46,472,378 |
Home renovation and furnishing | ||||
Net revenues: | ||||
Total net revenues | 10,850,497 | 1,528,261 | 5,046,627 | 197,452 |
Emerging and other services | ||||
Net revenues: | ||||
Total net revenues | ¥ 8,396,522 | $ 1,182,625 | ¥ 2,848,075 | ¥ 2,134,656 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Total net revenues | ¥ 77,776,932 | ¥ 60,668,779 | ¥ 80,752,439 |
Existing home transaction services | |||
Total net revenues | 27,954,135 | 24,123,703 | 31,947,953 |
New home transaction services | |||
Total net revenues | 30,575,778 | 28,650,374 | 46,472,378 |
Home renovation and furnishing | |||
Total net revenues | 10,850,497 | 5,046,627 | 197,452 |
Emerging and other services | |||
Total net revenues | 8,396,522 | 2,848,075 | 2,134,656 |
Related Party | Existing home transaction services | |||
Total net revenues | 830,295 | 625,979 | 642,909 |
Related Party | New home transaction services | |||
Total net revenues | 2,713 | 1,476 | 3,525 |
Related Party | Home renovation and furnishing | |||
Total net revenues | 6,471 | 3,365 | 171,449 |
Related Party | Emerging and other services | |||
Total net revenues | ¥ 26,168 | ¥ 33,383 | ¥ 30,007 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY ¥ in Thousands, $ in Thousands | Ordinary shares CNY (¥) shares | Treasury shares CNY (¥) shares | Additional paid-In capital CNY (¥) | Statutory reserves CNY (¥) | Accumulated other comprehensive income (loss) CNY (¥) | Accumulated deficit CNY (¥) | Attributable to owners of KE Holdings Inc. CNY (¥) | Non-controlling interests CNY (¥) | CNY (¥) shares | USD ($) shares |
Beginning balance at Dec. 31, 2020 | ¥ 482 | ¥ 77,433,882 | ¥ 392,834 | ¥ (1,834,087) | ¥ (9,227,664) | ¥ 66,765,447 | ¥ 27,069 | ¥ 66,792,516 | ||
Beginning balance (in shares) at Dec. 31, 2020 | shares | 3,491,415,360 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | (524,129) | (524,129) | (637) | (524,766) | ||||||
Exercise of share options | ¥ 7 | 7 | ¥ 7 | |||||||
Exercise of share options (in shares) | shares | 57,076,970 | 57,076,970 | 57,076,970 | |||||||
Share-based compensation | 1,538,287 | 1,538,287 | ¥ 1,538,287 | |||||||
Appropriation to statutory reserves | 91,053 | (91,053) | (91,100) | |||||||
Currency translation adjustments | (841,214) | (841,214) | (841,214) | |||||||
Acquisition of a subsidiary with noncontrolling interests | 55,085 | 55,085 | ||||||||
Unrealized gains on available-for-sale investments, before reclassification | 45,242 | 45,242 | 45,242 | |||||||
Unrealized gains on available-for-sale investments, amounts reclassified from accumulated other comprehensive income (loss) | (9,664) | (9,664) | (9,664) | |||||||
Dividend to shareholders | 0 | |||||||||
Ending balance at Dec. 31, 2021 | ¥ 489 | 78,972,169 | 483,887 | (2,639,723) | (9,842,846) | 66,973,976 | 81,517 | 67,055,493 | ||
Ending balance (in shares) at Dec. 31, 2021 | shares | 3,548,492,330 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income (loss) | (1,386,074) | (1,386,074) | (11,210) | (1,397,284) | ||||||
Exercise of share options | ¥ 3 | 3 | ¥ 3 | |||||||
Exercise of share options (in shares) | shares | 24,383,373 | 24,383,373 | 24,383,373 | |||||||
Vesting of restricted share units (in shares) | shares | 576,720 | |||||||||
Share-based compensation | 2,425,249 | 2,425,249 | ¥ 2,425,249 | |||||||
Cancellation of ordinary shares | ¥ (5) | ¥ 1,094,467 | (1,094,462) | |||||||
Cancellation of ordinary shares (in shares) | shares | (35,246,628) | 35,246,628 | ||||||||
Repurchase of ordinary shares | ¥ (1,319,796) | (1,319,796) | (1,319,796) | |||||||
Repurchase of ordinary shares (in shares) | shares | (41,707,914) | |||||||||
Appropriation to statutory reserves | 176,930 | (176,930) | (176,900) | |||||||
Currency translation adjustments | 2,602,071 | 2,602,071 | 2,602,071 | |||||||
Acquisition of a subsidiary with noncontrolling interests | 63,771 | 63,771 | ||||||||
Unrealized gains on available-for-sale investments, before reclassification | (470,589) | (470,589) | (470,589) | |||||||
Unrealized gains on available-for-sale investments, amounts reclassified from accumulated other comprehensive income (loss) | 95,520 | 95,520 | 95,520 | |||||||
Dividend to shareholders | 0 | |||||||||
Ending balance at Dec. 31, 2022 | ¥ 487 | 80,302,956 | 660,817 | (412,721) | (11,405,850) | 68,920,360 | 134,078 | 69,054,438 | ||
Ending balance (in shares) at Dec. 31, 2022 | shares | 3,538,205,792 | |||||||||
Treasury shares, ending balance at Dec. 31, 2022 | ¥ (225,329) | 225,329 | ||||||||
Treasury shares, ending balance (in shares) at Dec. 31, 2022 | shares | (6,461,286) | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Surrender of ordinary shares (in shares) | shares | 3 | |||||||||
Net income (loss) | 5,883,224 | 5,883,224 | 6,380 | 5,889,604 | $ 829,535 | |||||
Exercise of share options | ¥ 3 | 3 | ¥ 3 | |||||||
Exercise of share options (in shares) | shares | 17,029,713 | 17,029,713 | 17,029,713 | |||||||
Vesting of restricted share units | ¥ 1 | (1) | ||||||||
Vesting of restricted share units (in shares) | shares | 5,963,517 | |||||||||
Vesting of restricted share, net | ¥ 2 | (2) | ||||||||
Vesting of restricted share, net (in shares) | shares | 13,292,404 | |||||||||
Share-based compensation | 3,215,549 | 3,215,549 | ¥ 3,215,549 | |||||||
Cancellation of ordinary shares | ¥ (18) | ¥ 4,509,759 | (4,509,741) | |||||||
Cancellation of ordinary shares (in shares) | shares | 123,459,369 | 123,459,369 | ||||||||
Repurchase of ordinary shares | ¥ (5,150,628) | (5,150,628) | (5,150,628) | |||||||
Repurchase of ordinary shares (in shares) | shares | (141,064,215) | |||||||||
Appropriation to statutory reserves | 150,290 | (150,290) | (150,300) | |||||||
Currency translation adjustments | 574,223 | 574,223 | 574,223 | $ 80,878 | ||||||
Acquisition of non-controlling interests | (51,020) | (51,020) | ||||||||
Acquisition of a subsidiary with noncontrolling interests | 18,852 | 18,852 | ||||||||
Disposal of subsidiaries with non-controlling interests | (2,109) | (2,109) | ||||||||
Unrealized gains on available-for-sale investments, before reclassification | 71,447 | 71,447 | 71,447 | |||||||
Unrealized gains on available-for-sale investments, amounts reclassified from accumulated other comprehensive income (loss) | 11,353 | 11,353 | 11,353 | |||||||
Dividend to shareholders | (1,425,707) | (1,425,707) | (1,425,707) | |||||||
Liquidation of subsidiary | (51,020) | (51,020) | ||||||||
Dividend of subsidiaries for non-controlling interest holder | (4,900) | (4,900) | ||||||||
Ending balance at Dec. 31, 2023 | ¥ 475 | ¥ 77,583,054 | ¥ 811,107 | ¥ 244,302 | ¥ (5,672,916) | ¥ 72,099,824 | ¥ 101,281 | 72,201,105 | 10,169,313 | |
Ending balance (in shares) at Dec. 31, 2023 | shares | 3,451,032,020 | |||||||||
Treasury shares, ending balance at Dec. 31, 2023 | ¥ (866,198) | ¥ 866,198 | $ 122,001 | |||||||
Treasury shares, ending balance (in shares) at Dec. 31, 2023 | shares | (24,066,132) | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Surrender of ordinary shares (in shares) | shares | (37) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Cash flows from operating activities: | ||||
Net income (loss) | ¥ 5,889,604 | $ 829,535 | ¥ (1,397,284) | ¥ (524,766) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation of property, plant and equipment | 775,042 | 109,162 | 918,261 | 879,729 |
Amortization of intangible assets | 627,100 | 88,332 | 584,460 | 491,032 |
Net impairment loss (reversal) on financial assets | 426,352 | 60,050 | (21,059) | 1,326,698 |
Impairment of goodwill, intangible assets and other long-lived assets | 93,417 | 13,158 | 148,057 | 746,705 |
Impairment loss for equity investments accounted for using equity method | 10,369 | 1,460 | 2,914 | |
Impairment loss for equity investments accounted for using measurement alternative | 28,800 | 4,056 | 591,876 | 183,789 |
Provision (reversal) of credit losses for financing receivables | (7,573) | (1,067) | 18,658 | 124,335 |
Deferred tax expenses (benefits) | (328,579) | (46,279) | 301,788 | (170,065) |
Share of results of equity investees | (9,098) | (1,281) | (44,588) | (39,520) |
Dividend received from equity method investments | 14,862 | 2,093 | 27,338 | 14,800 |
Fair value changes in investments | (78,320) | (11,031) | 512,225 | (564,804) |
Investment and interest income | (1,413,018) | (199,019) | (767,330) | (425,905) |
Foreign currency exchange loss (gain) | 93,956 | 13,233 | 127,362 | (20,988) |
Loss (gain) on disposal of property, plant and equipment and intangible assets | 629 | 89 | (653) | 467 |
Sharebased compensation expenses | 3,215,549 | 452,901 | 2,425,249 | 1,538,287 |
Changes in assets and liabilities: | ||||
Accounts receivable and contract assets | 834,677 | 117,562 | 5,160,705 | 2,646,058 |
Amounts due from and prepayments to related parties | (13,314) | (1,875) | 185,386 | (106,993) |
Prepayments, receivables and other assets | (883,309) | (124,411) | (382,652) | 1,450,492 |
Rightofuse assets | (6,333,845) | (892,103) | (3,509,206) | (418,389) |
Other noncurrent assets | (29,481) | (4,152) | (54,005) | (11,331) |
Accounts payable | 482,543 | 67,965 | (866,389) | (566,709) |
Amounts due to related parties | 4,665 | 657 | (158,393) | 329,823 |
Employee compensation and welfare payable | (1,219,733) | (171,796) | (957,551) | (1,399,663) |
Customer deposits payable | (294,264) | (41,446) | 13,491 | (2,561,919) |
Contract liabilities | 1,404,932 | 197,881 | 921,104 | 367,772 |
Lease liabilities | 6,123,445 | 862,469 | 4,073,669 | 588,714 |
Accrued expenses and other current liabilities | 1,585,979 | 223,380 | 652,832 | 80,442 |
Income taxes payable | 156,278 | 22,011 | (41,688) | (418,876) |
Other liabilities | (86) | (12) | (909) | 52,993 |
Net cash provided by operating activities | 11,157,625 | 1,571,522 | 8,460,754 | 3,595,122 |
Cash flows from investing activities: | ||||
Purchases of held-to-maturity debt investments | (14,513,592) | (2,044,197) | (23,799,933) | (11,525,705) |
Maturities of held-to-maturity debt investments | 8,918,346 | 1,256,123 | 15,796,918 | 781,074 |
Purchases of available-for-sale debt investments | (1,242,573) | (8,544,633) | ||
Sales and maturities of available-for-sale debt investments | 1,392,881 | 196,183 | 2,928,668 | 715,957 |
Purchases of other long-term investments | (1,181,611) | (166,426) | (560,575) | (8,751,223) |
Disposal and distributions of other long-term investments | 338,678 | 47,702 | 509,221 | 542,043 |
Purchases of other short-term investments | (38,874,183) | (5,475,314) | (34,718,665) | (37,172,628) |
Maturities of other short-term investments | 41,465,679 | 5,840,319 | 36,540,249 | 37,197,916 |
Cash paid for business combinations, net of cash acquired | (9,893) | (1,393) | (3,147,760) | (21,842) |
Proceeds from disposal of a subsidiary and long-lived assets | 14,838 | 2,090 | 19,126 | 18,521 |
Purchases of property, plant and equipment, intangible assets and other long-lived assets | (873,990) | (123,099) | (793,032) | (1,429,977) |
Financing receivables originated | (27,785,767) | (3,913,544) | (11,529,591) | (32,966,185) |
Collections of financing receivables principal | 27,112,807 | 3,818,759 | 11,556,201 | 36,279,018 |
Loans to related parties | (47,000) | (6,620) | (50,124) | (28,100) |
Repayments of loans from related parties | 65,367 | 9,207 | 19,515 | 21,690 |
Net cash used in investing activities | (3,977,440) | (560,210) | (8,472,355) | (24,884,074) |
Cash flows from financing activities: | ||||
Cash paid for noncontrolling interests in subsidiaries | (870) | |||
Repurchase of ordinary shares | (5,150,628) | (725,451) | (1,319,796) | |
Proceeds from issuance of ordinary shares upon exercise of share option | 2 | 1 | 3 | 7 |
Proceeds from short-term borrowings | 426,634 | 60,090 | 759,000 | 260,000 |
Repayments of short-term borrowings | (755,972) | (106,476) | (400,000) | |
Proceeds from funding debts | 133,400 | 507,543 | ||
Repayments of funding debts | (327,600) | (1,840,853) | ||
Dividends paid to equity holders of the Company | (1,425,707) | (200,807) | ||
Liquidation of subsidiaries | (51,020) | (7,186) | ||
Dividends paid to noncontrolling shareholders of subsidiaries | (4,900) | (690) | ||
Net cash used in financing activities | (6,961,591) | (980,519) | (1,154,993) | (1,074,173) |
Effect of exchange rate change on cash, cash equivalents and restricted cash | 44,608 | 6,278 | 28,644 | (442,141) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 263,202 | 37,071 | (1,137,950) | (22,805,266) |
Cash and cash equivalents at the beginning of the year | 19,413,202 | 2,734,292 | 20,446,104 | 40,969,979 |
Restricted cash at the beginning of the year | 6,181,057 | 870,584 | 6,286,105 | 8,567,496 |
Total | 25,594,259 | 3,604,876 | 26,732,209 | |
Cash and cash equivalents at the end of the year | 19,634,716 | 2,765,492 | 19,413,202 | 20,446,104 |
Restricted cash at the end of the year | 6,222,745 | 876,455 | 6,181,057 | 6,286,105 |
Total | 25,857,461 | 3,641,947 | 25,594,259 | 26,732,209 |
Cash, cash equivalents and restricted cash change during the year | 263,202 | 37,071 | (1,137,950) | (22,805,266) |
Supplemental disclosures: | ||||
Cash paid for income taxes | (2,250,992) | (317,046) | (1,446,640) | (2,295,576) |
Cash paid for interest | (17,479) | (2,462) | (13,625) | (4,671) |
Noncash investing activities | ||||
Changes in accounts payable related to property, plant and equipment addition | ¥ (2,653) | $ (374) | ¥ 93,726 | ¥ 20,142 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2023 | |
ORGANIZATION | |
ORGANIZATION | 1. ORGANIZATION (a) Principle activities, subsidiaries and VIEs KE Holdings Inc. (“the Company”) was incorporated in the Cayman Islands on July 6, 2018 under the Cayman Islands Companies Law as an exempted company with limited liability. The Company through its consolidated subsidiaries, variable interest entities (the “VIE”s) and the subsidiaries of the VIEs (collectively, the “Group”), is principally engaged in operating a leading integrated online and offline platform for housing transactions and services in the People’s Republic of China (the “PRC” or “China”). As of December 31, 2023, the details of the Company’s major subsidiaries and consolidated VIEs (inclusive of the VIEs’ subsidiaries) are as follows: Date of Percentage of incorporation or Place of direct or indirect Name acquisition incorporation economic ownership Subsidiaries Beike Group (Cayman) Limited August 6, 2018 Cayman Islands 100 % Beike Finance Holdings (Cayman) Limited August 14, 2018 Cayman Islands 100 % Sharehome HK International Limited December 16, 2016 Hong Kong 100 % Beike Kestone Holdings (Hong Kong) Limited August 13, 2018 Hong Kong 100 % Beike (Tianjin) Investment Co., Ltd. September 29, 2018 PRC 100 % Beihan(Tianjin) Technology Co., Ltd. November 27, 2019 PRC 100 % Lianjia (Tianjin) Enterprise Management Co., Ltd. August 13, 2018 PRC 100 % Beijing Lianjia Zhidi Real Estate Brokerage Co., Ltd. July 25, 2005 PRC 100 % Beijing Fangyuan Real Estate Consulting Services Co., Ltd. October 24, 2016 PRC 100 % Beijing Gaoce Real Estate Brokerage Co., Ltd. December 27, 2011 PRC 100 % Beijing Lianjia Gaoce Real Estate Brokerage Co., Ltd. September 20, 2016 PRC 100 % Deyou Real Estate Agency Co., Ltd. September 5, 2002 PRC 100 % Shanghai Xiaoheng Internet Technology Co., Ltd. October 30, 2017 PRC 100 % Shanghai Deyou Property Consulting Co., Ltd. April 16, 2014 PRC 100 % Sichuan Lianjia Real Estate Brokerage Co., Ltd. December 30, 2009 PRC 100 % Ningbo Fangjianghu Internet Technology Co., Ltd. July 17, 2018 PRC 100 % Tianjin Haibei Information Technology Co., Ltd. September 14, 2018 PRC 100 % Beike Zhaofang (Beijing) Technology Co., Ltd. August 3, 2015 PRC 100 % Beike Zhaofang Technology Co., Ltd. November 21, 2017 PRC 100 % Beike Technology Co., Ltd. June 28, 2017 PRC 100 % Shanghai Haibi Technology Co., Ltd. October 25, 2018 PRC 100 % Deyou (Tianjin) Real Estate Brokerage Service Co., Ltd. October 16, 2017 PRC 100 % Shanghai Huibeiju Technology Co., Ltd. October 27, 2022 PRC 100 % Shanghai Chenhaibei Internet Technology Co., Ltd. January 16, 2020 PRC 100 % Beijing Beiwoo Decoration Co., Ltd. January 5, 2022 PRC 100 % Beike Meijia Supply Chain Management (Zhejiang) Co., Ltd. December 29, 2022 PRC 100 % Shengdu Home Renovation Co., Ltd. April 20, 2022 PRC 100 % Beijing Meichen Information Consulting Co., Ltd. September 6, 2016 PRC 100 % Shanghai Shengyi Investment Management Co., Ltd. December 25, 2018 PRC 100 % Beijing Lianjia Rongsheng Management Consulting Co., Ltd. August 9, 2016 PRC 100 % Beijing Xinfu Home Rental Co., Ltd. September 5, 2013 PRC 100 % Tianjin Haibei Technology Services Co., Ltd. July 14, 2017 PRC 100 % Consolidated VIEs Beijing Lianjia Real Estate Brokerage Co., Ltd. (“Beijing Lianjia”) (i) September 30, 2001 PRC 100 % Beijing Yiju Taihe Technology Co., Ltd. (“Yiju Taihe”) July 23, 2010 PRC 100 % Tianjin Xiaowu Information & Technology Co., Ltd. (“Tianjin Xiaowu”) November 14, 2017 PRC 100 % Subsidiaries of VIEs Beijing Zhongrongxin Financing Guarantee Co., Ltd. November 10, 2006 PRC 100 % Beijing Ehomepay Technologies Co., Ltd. August 8, 2013 PRC 100 % (i) The Company has 30% direct shareholding in Beijing Lianjia through one of its wholly owned PRC subsidiaries. The Company depends on a series of contractual arrangements to provide its subsidiary with a “controlling financial interest” in the VIEs, as defined in FASB ASC 810. 1. ORGANIZATION (CONTINUED) (b) History and reorganization of the Group The Group commenced operations in the PRC in 2001 through Beijing Lianjia, which was established in September 2001 by Mr. Zuo Hui (the “Founder” and permanent chairman emeritus of the Company). Beijing Lianjia and its subsidiaries developed various businesses over time and expanded nationwide in China. During January 2017, the Group restructured Yiju Taihe, which was originally a subsidiary of Beijing Lianjia and operated financial service businesses, to mirror the holding structure substantially identical to that of Beijing Lianjia. In November 2017, the Group incorporated Tianjin Xiaowu, to conduct operations related to value-added telecommunication services. The Founder is the ultimate controlling party of the Group as he has held majority voting power over the Group throughout the Group’s history. Along with the launch of the Group’s Beike platform, the Company was incorporated in the Cayman Islands in July 2018 as the Group’s holding company to facilitate offshore financing. During July to December 2018, the Company established a series of intermediary holding entities which directly or indirectly hold the equity interests in Beike (Tianjin) Investment Co., Ltd., Jinbei (Tianjin) Technology Co., Ltd. and Beike Jinke (Tianjin) Technology Co., Ltd., all of which are the Company’s wholly – owned PRC subsidiaries (collectively, “WFOEs”). Through a series of transactions, most of the original subsidiaries of Beijing Lianjia have become the subsidiaries of the applicable WFOEs and the Group’s other PRC subsidiaries. For example, most of Beijing Lianjia’s operating entities are transferred to Beijing Lianjia Zhidi Real Estate Brokerage Co., Ltd. and Lianjia (Tianjin) Enterprise Management Co., Ltd., both of which are wholly – owned subsidiaries of Beike (Tianjin) Investment Co., Ltd. Then, through a series of reorganization transactions (the “Reorganization”), the Company became the primary beneficiary of Beijing Lianjia, Yiju Taihe and Tianjin Xiaowu through contractual arrangements. In connection with the Reorganization, most of the shareholders of Beijing Lianjia and Yiju Taihe or such shareholders’ affiliates subscribed for ordinary shares, Series B and C convertible redeemable preferred shares of the Company as applicable, substantially in proportion to their previous respective equity interests in Beijing Lianjia and Yiju Taihe prior to the Reorganization. To effect the Reorganization, the Group returned onshore capital of RMB3,000 million and RMB6,931 million to preferred shareholder in 2018 and 2019, respectively. Such capital was reinjected to the Group offshore in 2019. The Reorganization was completed on December 28, 2018. During the second quarter of 2020, certain subsidiaries of Yiju Taihe operating businesses that do not restrict foreign ownership became the subsidiaries of the WFOEs. On July 22, 2020, the Company effected a 5-for-1 share subdivision, following which each of the Company’s issued ordinary shares and preferred shares was subdivided into five ordinary shares and preferred shares, respectively. Upon the subdivision, the number of shares reserved for issuance under the Company’s existing share incentive plans and the number of shares to be issued under the options and other awards granted by the Company pursuant to the existing share incentive plans were adjusted to reflect the subdivision. All applicable share data, per share amounts and related information in the consolidated financial statements and notes thereto have been adjusted retroactively to give effect to the 5-for-1 share subdivision. The Company has completed its initial public offering and been listed on the New York Stock Exchange since August 2020. The Company has completed its listing on the Main Board of The Stock Exchange of Hong Kong Limited (the “HKEX”) by way of introduction in May 2022. 1. ORGANIZATION (CONTINUED) (c) Due to the restrictions imposed by PRC laws and regulations on foreign ownership of companies engaged in value-added telecommunication services, finance businesses and certain other businesses, the Group operates its platforms and other restricted businesses in the PRC through certain PRC domestic companies, whose equity interests are held by certain management members of the Group and several other individuals and entities affiliated with the Group (“Nominee Shareholders”). The Group depends on a series of contractual arrangements with these PRC domestic companies and their respective Nominee Shareholders to provide its subsidiary with a “controlling financial interest” in the VIEs, as defined in FASB ASC 810, making it the primary beneficiary of the VIEs. These contractual agreements include powers of attorney, exclusive business cooperation agreements, exclusive option agreements, equity pledge agreements and spousal consent letters. These contractual agreements can be extended at the Group’s relevant PRC subsidiaries’ options prior to the expiration dates. Management concludes that these PRC domestic companies are VIEs of the Group, of which the Group is the ultimate primary beneficiary. As such, the Group consolidated the financial results of these PRC domestic companies and their subsidiaries in the Group’s consolidated financial statements. The following is a summary of the contractual agreements (collectively, “Contractual Agreements”) that the Group, through its subsidiaries, entered into with the VIEs and their Nominee Shareholders: i) Contractual Agreements with VIEs Power of Attorney Pursuant to the power of attorney agreements among the WFOEs, the VIEs and their respective Nominee Shareholders, each Nominee Shareholder of the VIEs irrevocably undertakes to appoint the WFOE, or a PRC citizen designated by the WFOE as the attorney-in-fact to exercise all of the rights as a shareholder of the VIEs, including, but not limited to, the right to convene and attend shareholders’ meeting, vote on any resolution that requires a shareholder vote, such as appoint or remove directors and other senior management, and other voting rights pursuant to the articles of association (subject to the amendments) of the VIEs. Each power of attorney agreement is irrevocable and remains in effect as long as the Nominee Shareholder continues to be a shareholder of the VIEs. Exclusive Business Cooperation Agreements Pursuant to the exclusive business cooperation agreements among the WFOEs and the VIEs, respectively, the WFOEs have the exclusive right to provide the VIEs with services related to, among other things, comprehensive technical support, professional training, consulting services and marketing and promotional services. Without prior written consent of the WFOEs, the VIEs agree not to directly or indirectly accept the same or any similar services provided by any others regarding the matters ascribed by the exclusive business cooperation agreements. The VIEs agree to pay the WFOEs services fees, which will be determined by the WFOEs. The WFOEs have the exclusive ownership of intellectual property rights created as a result of the performance of the agreements. The agreements will remain effective except that the WFOEs are entitled to terminate the agreements in writing. 1. ORGANIZATION (CONTINUED) Exclusive Option Agreements Pursuant to the exclusive option agreements among the WFOEs, the VIEs and their respective Nominee Shareholders, the Nominee Shareholders of the VIEs irrevocably grant the respective WFOEs an exclusive option to purchase, or have its designated person to purchase, at its discretion, to the extent permitted under PRC law, all or part of their equity interests in the VIEs (except for 3.03% of Beijing Lianjia’s equity interests pledged to a third party as of December 31, 2018, while the pledge was removed in December 2019 and all equity interests were subject to the exclusive option agreements).The purchase price with respect to the equity interests in Tianjin Xiaowu shall be the amount of paid-in capital or the lowest price permitted by applicable PRC law, and the purchase price with respect to the equity interests in other VIEs shall be the higher of RMB1 or the lowest price permitted by applicable PRC law. The shareholders of the VIEs further undertake to pay to the WFOEs any dividends and other distributions they receive in relation to the equity interests they held in the VIEs, to the extent permitted by PRC law. The shareholders of the VIEs undertake that, without prior written consent of the WFOEs, they will not create any pledge or encumbrance on their equity interests in the VIEs, approve any transfer or in any manner disposal of their equity interests, or any disposition of any assets of the VIEs (other than limited exceptions). The shareholders of each of the VIEs agree, among other things, without prior written consent of the WFOEs, not to cause the relevant VIEs to merge with any other entities, increase or decrease its registered capital, declare or distribute dividends, amend its articles of association, enter into any material contract (other than those occurring in the ordinary course of business), appoint or remove its directors, supervisors or other management, be liquidated or dissolved (unless mandated by PRC laws), lend or borrow money (except for payables incurred in the ordinary course of business other than through loans) or undertake any actions that may adversely affect the VIEs’ operating status and asset value. These agreements will remain effective until all of the equity interests of the relevant VIEs have been transferred to the WFOEs and/or its designated person. Jinbei (Tianjin) Technology Co., Ltd. has the unilateral right to terminate the agreement with Tianjin Xiaowu. Equity Pledge Agreements Pursuant to the equity pledge agreements among the WFOEs, the VIEs and their respective Nominee Shareholders, the Nominee Shareholders of the VIEs pledged all of their respective equity interests in the VIEs to the WFOEs as security for performance of the obligations of the VIEs and their Nominee Shareholders under the exclusive business cooperation agreements, the power of attorney agreements, the exclusive option agreements and the equity pledge agreements, except for 3.03% of Beijing Lianjia’s equity interests pledged to a third party as of December 31, 2018. The pledge was removed in December 2019 and all equity interests became subject to the equity pledge agreements. The Nominee Shareholders of the VIEs also undertake that, during the term of the equity pledge agreements, unless otherwise approved by the WFOEs in writing, they will not transfer the pledged equity interests or create or allow any new pledge or other encumbrance on the pledged equity interests. As of the date of this report, the Group has registered all such equity pledges with the local branch of the State Administration for Market Regulation in accordance with PRC laws to perfect the respective equity pledges. After the completion of the equity pledge registrations, in the event of a breach by the VIEs or its shareholders of contractual obligations under these agreements, the WFOEs will have the right to dispose of the pledged equity interests in the VIEs. Spousal Consent Letters Pursuant to the spousal consent letters, each of the spouses of the applicable individual Nominee Shareholders of the VIEs unconditionally and irrevocably agrees that the equity interest in the VIEs held by and registered in the name of his or her respective spouse will be disposed of pursuant to the relevant exclusive business cooperation agreements, equity pledge agreements, the exclusive option agreements and the power of attorney agreements, without his or her consent. In addition, each of them agrees not to assert any rights over the equity interest in the VIEs held by her respective spouses. In addition, in the event that any of them obtains any equity interest in the VIEs held by their respective spouses for any reason, such spouses agree to be bound by similar obligations and agreed to enter into similar contractual arrangements. 1. ORGANIZATION (CONTINUED) ii) Risks in relation to VIE structure Part of the Group’s business is conducted through the VIEs of the Group, of which the Company is the ultimate primary beneficiary. The Company has concluded that (i) the ownership structure of the VIEs is not in violation of any existing PRC law or regulation in any material respect; and (ii) each of the VIE Contractual Agreements is valid, legally binding and enforceable to each party of such agreements and will not result in any violation of PRC laws or regulations currently in effect. However, uncertainties in the PRC legal system could cause the relevant regulatory authorities to find the current VIE Contractual Agreements and businesses to be in violation of any existing or future PRC laws or regulations. On March 15, 2019, the National People’s Congress adopted the Foreign Investment Law of the PRC, which became effective on January 1, 2020, together with their implementation rules and ancillary regulations. The Foreign Investment Law does not explicitly classify contractual arrangements as a form of foreign investment, but it contains a catch-all provision under the definition of “foreign investment”, which includes investments made by foreign investors through means stipulated in laws or administrative regulations or other methods prescribed by the State Council. It is unclear that whether the Group’s corporate structure will be seen as violating the foreign investment rules as the Group are currently leveraging the contractual arrangements to operate certain businesses in which foreign investors are prohibited from or restricted to investing. If variable interest entities fall within the definition of foreign investment entities, the Group’s ability to use the contractual arrangements with the VIE and the Group’s ability to conduct business through the VIEs could be severely limited. In addition, if the Group’s corporate structure and the contractual arrangements with the VIEs through which the Group conducts its business in the PRC were found to be in violation of any existing or future PRC laws and regulations, the Group’s relevant PRC regulatory authorities could: ● revoke or refuse to grant or renew the Group’s business and operating licenses; ● restrict or prohibit related party transactions between the wholly owned subsidiary of the Group and the VIEs; ● impose fines, confiscate income or other requirements which the Group may find difficult or impossible to comply with; ● require the Group to alter, discontinue or restrict its operations; ● restrict or prohibit the Group’s ability to finance its operations; and ● take other regulatory or enforcement actions against the Group that could be harmful to the Group’s business. 1. ORGANIZATION (CONTINUED) The imposition of any of these penalties may result in a material and adverse effect on the Group’s ability to conduct the Group’s businesses. In addition, if the imposition of any of these penalties causes the Group to lose the rights to direct the activities of the VIEs or the right to receive its economic benefits, the Group would no longer be able to consolidate the VIEs. The management believes that the likelihood for the Group to lose such ability is remote based on current facts and circumstances. However, the interpretation and implementation of the laws and regulations in the PRC and their application to an effect on the legality, binding effect and enforceability of contracts are subject to the discretion of competent PRC authorities, and therefore there is no assurance that relevant PRC authorities will take the same position as the Group herein in respect of the legality, binding effect and enforceability of each of the contractual arrangements. Meanwhile, since the PRC legal system continues to rapidly evolve, the interpretations of many laws, regulations and rules are not always uniform and enforcement of these laws, regulations and rules involve uncertainties, which may limit legal protections available to the Group to enforce the contractual arrangements should the VIEs or the Nominee Shareholders of the VIEs fail to perform their obligations under those arrangements. Summary of Financial Information of the VIEs In accordance with VIE Contractual Agreements, the Company (1) could exercise all shareholder’s rights of the VIEs and has power to direct the activities that most significantly affects the economic performance of the VIEs, and (2) receive the economic benefits of the VIEs that could be significant to the VIEs. Accordingly, the Company is considered as ultimate primary beneficiary of the VIEs and has consolidated the VIEs’ financial results of operations, assets and liabilities in the Company’s consolidated financial statements. Therefore, the Company considers that there are no assets in the VIEs that can be used only to settle obligations of the VIEs, except for the registered capital of the VIEs amounting to approximately RMB2.5 billion and RMB2.5 billion as of December 31, 2022 and 2023, as well as certain non-distributable statutory reserves amounting to approximately RMB109.3 million and RMB142.7 million as of December 31, 2022 and 2023. As the VIEs are incorporated as limited liability companies under the PRC Company Law, creditors do not have recourse to the general credit of the Company for the liabilities of the VIEs. There is currently no contractual arrangement that would require the Company to provide additional financial support to the VIEs. As the Group is conducting certain businesses in the PRC through the VIEs, the Group may provide additional financial support on a discretionary basis in the future, which could expose the Group to a loss. 1. ORGANIZATION (CONTINUED) Summary of Financial Information of the VIEs (Continued) The following table sets forth the assets, liabilities, results of operations and changes in cash, cash equivalents and restricted cash of the consolidated VIEs (inclusive of the VIEs’ subsidiaries, and the consolidated trusts as discussed in Note 2.12) taken as a whole, which were included in the Group’s consolidated financial statements with intercompany transactions eliminated. The following disclosures present the financial positions of the businesses that currently constitute the VIE entities as of December 31, 2022 and 2023 and the operation results for the years ended December 31, 2021, 2022 and 2023. As of December 31, 2022 2023 RMB RMB (in thousands) Cash and cash equivalents 1,873,989 2,232,732 Restricted cash 3,806,783 3,933,122 Short‑term investments 447,583 — Short‑term financing receivables, net 645,884 1,310,625 Accounts receivable, net 23,374 27,610 Amounts due from and prepayments to related parties 335,067 332,192 Loan receivables from related parties 20,000 — Prepayments, receivables and other assets 391,727 369,922 Amounts due from non‑VIE subsidiaries of the Group 3,041,482 2,671,350 Total current assets 10,585,889 10,877,553 Property and equipment, net 82,753 72,754 Right‑of‑use assets 73 199 Intangible assets, net 33,786 26,395 Goodwill 7,522 7,522 Other non‑current assets 66,128 58,420 Total non ‑ current assets 190,262 165,290 Total assets 10,776,151 11,042,843 Accounts payable 62,910 68,000 Amounts due to related parties 822 905 Employee compensation and welfare payable 386,874 371,917 Customer deposits payable 2,915,103 2,540,511 Income taxes payable 50,383 35,274 Lease liabilities current portion 369 383 Contract liabilities 5,572 4,291 Accrued expenses and other current liabilities 199,443 153,102 Amounts due to non‑VIE subsidiaries of the Group 3,432,642 4,802,196 Total current liabilities 7,054,118 7,976,579 Deferred tax liabilities 4,483 3,788 Lease liabilities non‑current portion 23 — Total non ‑ current liabilities 4,506 3,788 Total liabilities 7,058,624 7,980,367 1. ORGANIZATION (CONTINUED) Summary of Financial Information of the VIEs (Continued) For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Total net revenues from third party 946,883 470,564 595,498 Total net revenues from non-VIE subsidiaries of the Group 184,717 183,146 263,430 Total net revenues 1,131,600 653,710 858,928 Net income (loss) (52,557) 97,023 194,948 For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Net cash provided by (used in) operating activities (1,604,900) (1,537,384) 1,598,138 Net cash provided by (used in) investing activities 3,784,129 185,267 (193,772) Net cash used in financing activities (1,440,230) (849,738) (919,284) Net increase (decrease) in cash, cash equivalents and restricted cash 738,999 (2,201,855) 485,082 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
SIGNIFICANT ACCOUNTING POLICIES | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES 2.1 (a) Impact of newly adopted accounting pronouncement In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination as if it had originated the contracts. The standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. We adopted the ASU on January 1, 2023 and will apply the guidance prospectively for future acquisitions. 2.1 (b) Recently issued accounting pronouncements not yet adopted In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting-Improvements to Reportable Segment Disclosures”, which adds a requirement for public entities to disclose its significant segment expense categories and amounts for each reportable segment for all periods presented. This information is required to be disclosed at both interim and annual periods. In addition, this ASU requires a public entity to disclose the title and position of the Chief Operating Decision Maker (“CODM”) in the consolidated financial statements. Public entities are also required to disclose how the CODM uses each reported measure of segment profit or loss to assess performance and allocate resources to the segments. The ASU is effective for public entities for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024. The Group is assessing the impact of adopting this standard on its financial statements. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes: Improvements to Income Tax Disclosures”, which enhances the disaggregation of income tax disclosures. The ASU requires public entities on an annual basis to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold equal to or greater than 5%. Public entities are required to provide an explanation of certain rate reconciling items if not otherwise evident, such as the nature, causes and judgement used to categorize the item. The ASU also requires disclosure of income taxes paid (net of refund received) detailed by federal, state/local and foreign, and amounts paid to individual jurisdictions that are equal or greater than 5% of total income taxes paid. The ASU is effective for public entities for fiscal years beginning after December 15, 2024 and for interim periods for fiscal years beginning after December 15, 2025. The Group is assessing the impact of adopting this standard on its financial statements. 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2.2 Basis of preparation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Significant accounting policies followed by the Group in the preparation of its accompanying consolidated financial statements are summarized below. Change in method of accounting for capitalization of costs to obtain a contract as incurred On January 1, 2022, the Group elected to change its method of accounting for contract cost capitalization. In prior years, the Group used the practical expedient under ASC 606 to expense the costs to obtain a contract as incurred when the expected amortization period is one year or less. Starting in this year, the group recognizes as an asset the incremental costs of obtaining a contract with customer if the Group expects to recover those costs. An asset related to an obligation satisfied over time is amortized using a method consistent with the method used to measure progress and recognize revenue over the contract term. An asset related to an obligation satisfied at point in time is expensed upon the transfer of control of the goods or services to which the asset relates. The new method of accounting is considered preferable as the amortization of the contract cost is consistent with the pattern of the newly acquired home renovation services’ revenue recognition. The 2021 financial statements have not been adjusted as the accumulated effect of the change to the accounting principal on this periods presented is immaterial. The following financial statement line items for fiscal years 2022 were affected by the change in accounting principle. The consolidated balance sheet as of December 31, 2022 was as followed: As of December 31, 2022 As computed As reported under the under the new practical accounting Effect of expedient method change RMB RMB RMB (in thousands) Assets: Prepayments, receivables, other current and non-current assets 4,059,390 4,057,843 (1,547) Total assets 109,348,894 109,347,347 (1,547) Liabilities and shareholders’ equity Accumulated deficit (11,404,303) (11,405,850) (1,547) Total liabilities and shareholders’ equity 109,348,894 109,347,347 (1,547) The consolidated statement of comprehensive income (loss) for the year ended December 31, 2022 was as followed: For the Year Ended December 31, 2022 As computed As reported under the under the new practical accounting Effect of expedient method change RMB RMB RMB (in thousands) Sales and marketing expenses (4,571,835) (4,573,382) (1,547) Total operating expenses (14,612,106) (14,613,653) (1,547) Net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders (1,384,527) (1,386,074) (1,547) Net income (loss) per share attributable to ordinary shareholders - Basic (0.39) (0.39) — - (0.39) (0.39) — 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2.3 Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the consolidated VIEs (inclusive of the VIEs’ subsidiaries) for which the Company is the ultimate primary beneficiary. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power, has the power to appoint or remove the majority of the members of the Board of directors, to cast a majority of votes at the meeting of the Board of directors or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A consolidated VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, has the power to direct the activities that most significantly impact the entity’s economic performance, bears the risks of and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiaries is the primary beneficiary of the entity. All transactions and balances between the Company, its subsidiaries, consolidated VIEs (inclusive of VIEs’ subsidiaries) have been eliminated upon consolidation. The results of subsidiaries and VIEs acquired or disposed of during the year are recorded in the consolidated statements of comprehensive income (loss) from the effective dates of acquisition or up to the effective dates of disposal, as appropriate. 2.4 Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reporting periods in the consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Group’s consolidated financial statements include, but are not limited to (i) revenue recognition, (ii) provision for credit losses of accounts receivable, financing receivables and other receivables, (iii) assessment for impairment of long-lived assets, intangible assets and goodwill, (iv) valuation and recognition of share-based compensation expenses, (v) useful lives of property, plant and equipment and intangible assets, (vi) fair value of short-term and long-term investments, and derivative instruments, (vii) incremental borrowing rate used to account for leases, (viii) valuation of intangible asset arising from business combination transaction, (ix) provision for income tax and valuation allowance for deferred tax assets, (x) liabilities related to employee welfare benefits, and (xi) lower of cost and net realizable value of inventories. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2.5 Foreign currencies and foreign currency translation The Group’s reporting currency is Renminbi (“RMB”). The functional currency of the Company and its subsidiaries incorporated in the Cayman Islands, BVI and Hong Kong is United States dollars (“US$”) and the functional currency of the PRC entities in the Group is RMB. The Company’s subsidiaries with operations in other jurisdictions generally use their respective local currencies as their functional currencies. Transactions denominated in other than the functional currencies are re-measured into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at the balance sheet dates. Net gains and losses resulting from foreign exchange transactions are included in foreign currency exchange gain (loss) in the consolidated statements of comprehensive income (loss). The financial statements of the Group are translated from the functional currencies into RMB. Assets and liabilities denominated in foreign currencies are translated into RMB using the applicable exchange rates at the balance sheet date. Equity accounts other than earnings generated in current period are translated into RMB at the appropriate historical rates. Revenues, expenses, gain and loss are translated into RMB using the periodic average exchange rates. Translation differences are recorded currency translation adjustments as a component of other comprehensive income (loss) in the consolidated statements of comprehensive income (loss). 2.6 Convenience translation Translations of the consolidated balance sheets, the consolidated statements of comprehensive income (loss) and the consolidated statements of cash flows from RMB into US$ as of and for the year ended December 31, 2023 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB7.0999, representing the index rates stipulated by the Federal Reserve Board using the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 29, 2023. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2023, or at any other rate. 2.7 Fair value measurements Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurement for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value: Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Other inputs that are directly or indirectly observable in the marketplace. Level 3—Unobservable inputs which are supported by little or no market activity. Accounting guidance also describes three main approaches to measure the fair value of assets and liabilities: 1) market approach; 2) income approach and 3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates. 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2.8 Cash and cash equivalents Cash and cash equivalents consist of cash on hand, demand deposits and highly liquid investments placed with banks or other financial institutions, which are unrestricted as to withdrawal or use, and which have original maturities less than three months and are readily convertible to known amount of cash. 2.9 Restricted cash Cash that is legally or contractually restricted as to withdrawal or for use or pledged as security is reported separately on the face of the consolidated balance sheets. In accordance with Accounting Standards Codification (“ASC”) 230, the amounts generally described as restricted cash and restricted cash equivalents are included in the total cash, cash equivalents and restricted cash balances in the consolidated statements of cash flows. The Group’s restricted cash is mainly comprised of 1) cash received from the property buyers but not yet paid to the sellers through the Group’s online payment platform, which is placed with banks in escrow accounts; 2) security deposits for the Group’s agency, guarantee and financing services; 3) borrowings from commercial banks for limited purpose; and 4) other miscellaneous restricted cash. 2.10 The Group holds debt classified securities, and accounts for such investments in accordance with ASC Topic 320, Investments—Debt Securities (“ASC 320”). The Group classifies the short-term investments in debt as held-to-maturity, trading or available-for-sale, whose classification determines the respective accounting methods stipulated by ASC 320. Dividend and interest income, including amortization of the premium and discount arising at acquisition, for all categories of investments in securities are included in earnings. Any realized gains or losses on the sale of the short-term investments are determined on a specific identification method, and such gains and losses are reflected in earnings during the period in which gains or losses are realized. Held-to-maturity debt investments include debt instruments issued by private companies for which the Group has the positive intent and ability to hold those securities to maturity, and time deposits represent time deposits placed with banks with maturities more than three months. The Group account for the held-to-maturity debt investments at amortized cost less allowance for credit losses. The allowance for credit losses of the held-to-maturity debt investments reflects the Group’s estimated expected losses over the contractual lives of the held-to-maturity debt investments and is charged to “Other income, net” in the consolidated statements of comprehensive income (loss). Estimated allowances for credit losses are determined by considering reasonable and supportable forecasts of future economic conditions in addition to information about past events and current conditions. As of December 31, 2022 and 2023, the allowance for credit losses provided for the held-to-maturity debt investments held by the Group was insignificant. Debt securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities, in accordance with ASC 320. Unrealized holding gains and losses for trading securities are included in earnings. Debt investments not classified as trading or as held-to-maturity are classified as available-for-sale debt investments, which are reported at fair value, with unrealized gains and losses recorded in “Accumulated other comprehensive income (loss)” on the consolidated balance sheets. Investments with expected maturity of over a year are classified as long-term investments. Investments with maturity date within one year will be reclassified to short-term investments. 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2.11 Accounts receivable represents those receivables derived in the ordinary course of business, net of allowance for credit losses, including receivable from real estate property sellers, buyers and agents from the platform. Starting from January 1, 2020, the Group adopted ASC 326 and assesses the accounts receivable and establishes a reserve to reflect the net amount expected to be collected. The allowance is management’s estimate of expected credit losses after considering historical collection activity, the nature of the receivable, the current business environment and forecasts that may affect the customers’ ability to pay. Management estimated the allowance by segmenting accounts receivable based on certain credit risk characteristics and determining an expected loss rate for each segmentation based on historical loss experience adjusted for judgments about the effects of relevant observable data including current and future economic conditions. Practical Expedients The Group has used the following practical expedients as allowed under ASC 326: The Group use, as a practical expedient, the fair value of the collateral at the reporting date when recording the net carrying amount of the asset and determining the allowance for credit losses for a financial asset for which the repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty based on the entity’s assessment as of the reporting date (collateral-dependent financial asset). The allowance for credit losses and corresponding receivables were written off when they are determined to be uncollectible. 2.12 Financing receivables The Group generates financing receivables by providing personal credit loans to property buyers, tenants and other individual borrowers. The Group has the intent and the ability to hold such financing receivables for the foreseeable future or until maturity or payoff. Financing receivables from consolidated Trusts The Group has entered into arrangements with consolidated trusts (“Trusts”), pursuant to which the Group invested in the financing receivables using funds from the consolidated Trusts. The Trusts are administered by third party trust companies, which act as the trustees, with funds contributed by the Group and/or other third party investors for the purposes of providing returns to the beneficiary of the Trusts. The Group has power to direct the activities of the Trusts and has the obligation to absorb losses or the right to receive benefits from the Trusts that could potentially be significant to the Trusts. As a result, the Trusts are considered consolidated VIEs of the Group under ASC 810—“Consolidation”. Therefore the loans funded by the consolidated Trusts are recorded as the Group’s financing receivables. The proceeds received from the third party investors are recognized as funding debts. Cash received via consolidated Trusts that has not yet been distributed is recorded as restricted cash. Financing receivables from micro-loan platforms The Group also offers micro loans to borrowers via micro loan platforms. The loans offered mainly include: 1) installment loans for home renovation and furnishing to property owners; 2) loans provided to external small property agents; 3) loans provided to other individuals. As the Group undertakes substantially all the risks and rewards, the micro loans are recognized as financing receivables on the consolidated balance sheets. Measurement of financing receivables Financing receivables are measured at amortized cost and reported on the consolidated balance sheets at outstanding principal adjusted for any write offs and the allowance for credit losses. 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2.12 Financing receivables (Continued) Allowance for credit losses Starting from January 1, 2020, the Group adopted ASU No. 2016-13 and estimated the allowance for credit losses to reflect the Group’s estimated expected losses. The Group assesses the allowance for credit losses, mainly based on the past collection experience as well as consideration of current and future economic conditions and changes in the Group’s customer collection trends. The provision for credit losses represents an estimate of the losses expected to be incurred from the Group’s financing receivable portfolio. The Group uses projected risk parameters (e.g. probability of default and loss given default (severity)) to estimate the allowance of different segmentations, driven primarily by business type, on a collective basis. This projected risk parameters are primarily based upon historical loss experience adjusted for judgments about the effects of relevant observable data including current and future economic conditions as well as external historical loan performance trends, recovery rates, credit quality indicators. The allowance for credit losses and corresponding receivables were written off when they are determined to be uncollectible. The Group considers available information in quarterly assessments of the adequacy of the allowance. The Group believes the estimates, including any qualitative adjustments, are reasonable and have considered reasonably available information about past events, current conditions, and reasonable and supportable forecasts of future events and economic conditions. Accrued interest receivable Accrued interest income on financing receivables is calculated based on the effective interest rate of the loan and recorded as interest income as earned. The outstanding principal balance of loans which has not been collected prior to the contractual maturity date is considered to be past due. When a financing receivable reaches 1 day past due, it is placed on non-accrual status, and the Group stops accruing interest of the financing receivables as of such date. The accrued but unpaid interest as of such date is not reversed. The Group assesses the collectability of accrued interest together with the unpaid principal amount and provides reserves if warranted interest income for non-accrual financing receivables is recognized on a cash basis. Cash receipt of non-accrual financing receivables would be first applied to any unpaid principal, late payment fees, if any, before recognizing interest income. The Group does not resume accrual of interest after a loan has been placed on non-accrual basis. For the years ended December 31, 2021, 2022 and 2023, the amount of interest income recognized on non-accrual financial assets was insignificant. 2.13 Derivative instruments Derivative instruments are measured at fair value and recognized as either assets or liabilities on the consolidated balance sheets in either current or non-current other assets or accrued expenses and other current liabilities or other long-term liabilities depending upon maturity and commitment. Changes in the fair value of derivatives are either recognized periodically in the consolidated income (loss) statements or in other comprehensive income (loss) depending on the use of the derivatives and whether they qualify for hedge accounting. The Group selectively uses financial instruments to manage market risk associated with exposure to fluctuations in interest rates and foreign currency rates. These financial exposures are monitored and managed by the Group as an integral part of its risk management program. The Group does not engage in derivative instruments for speculative or trading purposes. The Group’s derivative instruments are not qualified for hedge accounting, thus changes in fair value are recognized in fair value changes in investments, net in the consolidated statements of comprehensive income (loss). The cash flows of derivative financial instruments are classified in the same category as the cash flows from the items subject to the economic hedging relationships. The estimated fair value of the derivatives is determined based on relevant market information. These estimates are calculated with reference to the market rates using industry standard valuation techniques. 2.14 Inventories Inventories, which mainly consist of materials for home renovation business and furniture, electronic and home appliances products available for sale, are valued at the lower of moving weighted average cost or net realizable value. As of December 31, 2023, no adjustment is deemed necessary to reduce inventory to net realizable value due to the rapid turnover and high utilization of inventory. Inventory is included in the prepayments, receivables and other assets line item in the Group’s consolidated balance sheets. 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2.15 Property, plant and equipment, net Property, plant and equipment are stated at cost less accumulated depreciation and impairment, if any. Depreciation is computed based upon the usage of the asset, which is approximated using a straight-line method over the estimated useful lives of the assets, which range as follows: · Office building 20 - 40 years · Vehicles 4 years · Computer equipment 3 - 5 years · Furniture and office equipment 3 - 5 years · Leasehold improvement lesser of the term of the lease or the estimated useful lives of the assets Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property, plant and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive income (loss). 2.16 Intangible assets, net Intangible assets mainly include those acquired through business combinations and purchased intangible assets. Intangible assets acquired through business combinations are recognized as assets separate from goodwill if they satisfy either the “contractual-legal” or “separability” criterion. Intangible assets arising from business combinations are recognized and measured at fair value upon acquisition. Purchased intangible assets are initially recognized and measured at cost upon acquisition. Separately identifiable intangible assets that have determinable lives continue to be amortized over their estimated useful lives based upon the usage of the asset, which is approximated using a straight-line method as follows: · Software 3 · Trademarks and domain names 3 · Customer relationships 3 · Non‑competition agreements 3 · Advertising resources 5 years · Licenses 6 The Group considers the factors listed in ASC 350-30-35-3 when determining the useful life of an intangible asset, such as the expected use of the asset by the entity, and any legal, regulatory, or contractual provisions that may limit the useful life. The useful life of software is mainly determined based on its expected use and contractual provisions. The useful life of trademarks and domain names is determined based on the expected use and legal provisions. The useful life of licenses, which are mainly licenses for franchise business, is determined on the expected cooperation period with franchisees. Separately identifiable intangible assets and other long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amounts of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of any impairment loss for identifiable intangible assets is based on the amounts by which the carrying amounts of the assets exceed the fair values of the assets. 2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 2.17 Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired in a business combination. Goodwill is not depreciated or amortized but is tested for impairment on an annual basis, and between annual tests if events or circumstances indicate that the goodwill may be impaired. The Group adopted ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” in 2019. In accordance with the FASB, a company first has the option to assess qualitative factors to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount. In the qualitative assessment, the Group considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. If the Group decides, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is mandatory. Otherwise, no further testing is required. The quantitative impairment test consists of a comparison of the fair value of each reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss equal to the difference between the fair value and the carrying value is recognized. Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. 2.18 Long-term investments (i) In accordance with ASC 323 — “Investment — Equity Method and Joint Ventures”, the Group applies the equity method of accounting to equity investments, in common stock or in substance common stock, over which it has significant influence but does not own a majority equity interests or otherwise control. An investment in in-substance common stock is an investment that has risk and reward characteristics that are substantially similar to that entity’s common stock. The Group considers subordination, risks and rewards of ownership and obligation to transfer value when determining whether an investment in an entity is substantially similar to one in that entity’s common stock. Under the equity method, the Group initially records its investment at cost. The difference between the cost of the equity investment and the amount of the underlying equity in the net assets of the equity investee is recognized as equity method goodwill or as an intangible asset as appropriate. The Group subsequently adjusts the carrying amount of the investment to recognize the Group’s proportionate share of each equity investee’s net income or loss into the consolidated statements of comprehensive income (loss) after the date of acquisition. When the Group’s share of losses in the equity investee equals or exceeds its interest in the equity investee, the Group does not recognize further losses, unless the Group has incurred obligations or made payments or guarantees on behalf of the equity investee, or the Group holds other investments in the equity investee. The Group continually reviews its investment in equity investees under the equity method to determine whether a decline in fair value to below the carrying value is other than temporary. The primary factors the Group considers in its dete |
CASH, CASH EQUIVALENTS, RESTRIC
CASH, CASH EQUIVALENTS, RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2023 | |
CASH, CASH EQUIVALENTS, RESTRICTED CASH | |
CASH, CASH EQUIVALENTS, RESTRICTED CASH | 3. CASH, CASH EQUIVALENTS, RESTRICTED CASH Cash, cash equivalents and restricted cash consisted of the following: As of December 31, 2022 2023 RMB RMB (in thousands) Cash and cash equivalents (i): Cash 18,641,806 17,994,611 Cash equivalents 771,396 1,640,105 Restricted cash (ii): Current 6,181,057 6,222,745 Total cash, cash equivalents and restricted cash 25,594,259 25,857,461 (i) Cash and cash equivalents consist of cash on hand and demand deposits which have original maturities of three months or less and are readily convertible to a known amount of cash. The weighted average interest rate of cash equivalent for the years ended December 31, 2021, 2022 and 2023 are 0.8 %, 3.6 % and 3.9 %, respectively. (ii) The Group’s restricted cash is mainly comprised of 1) cash received from the property buyers but not yet paid to the sellers through the Group’s online payment platform, which is placed with banks in escrow accounts; 2) security deposits for the Group’s agency, guarantee and financing services; 3) borrowings from commercial banks for limited purpose; and 4) other miscellaneous restricted cash. The proportion for each type of restricted cash are 77.4 %, 12.4 %, 10.0 %, and 0.2% as of December 31, 2022; 76.2% , 19.1% , 4.5% , and 0.2% as of December 31, 2023, respectively. |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2023 | |
SHORT-TERM INVESTMENTS. | |
SHORT-TERM INVESTMENTS | 4. SHORT-TERM INVESTMENTS As of December 31, 2022 2023 RMB RMB (in thousands) Short ‑ term investments: Bank time deposits 3,911,410 7,690,166 Wealth management products 26,491,683 26,415,902 Short-term held-to-maturity debt investments 3,631,732 151,890 Available-for-sale debt investments 1,380,668 — Listed equity securities 70,415 — Total 35,485,908 34,257,958 Bank time deposits are time deposits with original maturities of longer than three months but less than one year or long-term bank deposits with a maturity date within one year. The Group’s wealth management products mainly consist of various financial instruments issued by multiple financial institutions with variable interest rates indexed to performance of underlying asset. The Group elects to measure the investment in wealth management products at fair value with the fair value changes mainly recorded in other income, net and fair value changes in investments, net in the consolidated statements of comprehensive income (loss). Held-to-maturity debt investments include debt instruments issued by financial institutions with maturities of less than one year for which the Group has the positive intent and ability to hold those securities to maturity. Available-for-sale debt investments in short-term investments mainly include investments in debt securities issued by banks and other financial institutions that are redeemable at the issuer’s option, which the group intents to sell in the near term. The proceeds received from the sales of available-for-sale debt investments is RMB1.4 billion for the year of 2023. 4. SHORT-TERM INVESTMENTS (CONTINUED) Listed equity securities in short-term investments are equity securities the group intents to sell in the near term. Held-to-maturity debt investments as of December 31, 2023 are shown as below, which would be due within one year: As of December 31, 2023 Cost or Gross Gross amortized cost unrecognized unrecognized less allowance holding holding for credit losses gains losses Fair value RMB RMB RMB RMB US$ (in thousands) Held-to-maturity debt investments 151,890 — (7,757) 144,133 20,350 |
PREPAYMENTS, RECEIVABLES AND OT
PREPAYMENTS, RECEIVABLES AND OTHER ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
PREPAYMENTS, RECEIVABLES AND OTHER ASSETS | |
PREPAYMENTS, RECEIVABLES AND OTHER ASSETS | 5. PREPAYMENTS, RECEIVABLES AND OTHER ASSETS As of December 31, 2022 2023 RMB RMB (in thousands) Current: Advances to suppliers 618,694 574,170 Deposits paid to real estate developers (i) 530,308 222,604 Prepaid rental and other deposits 1,243,443 1,625,026 Staff advances 68,035 65,253 Receivables from escrow account 34,118 6,676 Interests receivable 11,035 14,664 VAT‑input deductible 660,104 707,416 Prepaid income tax 108,972 177,560 Inventories 127,558 304,208 Capitalized costs of obtaining contracts 155,636 338,811 Others 499,940 630,588 Total 4,057,843 4,666,976 Non ‑ current: Deferred tax asset (Note 18) 856,958 1,113,692 VAT-input deductible 169,879 192,991 Prepayment for land use right (ii) — 154,575 Others 5,414 11,783 Total 1,032,251 1,473,041 (i) Deposits paid to real estate developers Deposits paid to real estate developers refer to the earnest deposits paid by the Group to developers for new home transaction service contracts. (ii) Prepayment for land use right The Company entered into a 40 years land use right purchase agreement in October 2023 at a total consideration of RMB309 million. Pursuant to the agreement, 50% of the total consideration is scheduled to be paid in 2023 with the rest to be paid in 2024. The land use right purchased related to a parcel of land located in Hangzhou, which was acquired for the Group’s home renovation and furnishing business. RMB154.6 million has been paid off as of December 31, 2023 and the rest RMB154.6 million was paid off in January 2024 upon maturity. Currently, the Group’s is going through certain procedures related to the land use right certification. |
ACCOUNTS RECEIVABLE AND CONTRAC
ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET | 12 Months Ended |
Dec. 31, 2023 | |
ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET | |
ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET | 6. ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET Accounts receivable, net consists of the following: As of December 31, 2022 2023 RMB RMB (in thousands) New home transaction services 5,406,009 3,750,996 Existing home transaction services 385,231 483,901 Home renovation and furnishing 103,641 99,935 Emerging and other services 131,959 248,803 Accounts receivable 6,026,840 4,583,635 Allowance for credit losses (1,951,419) (1,566,129) Accounts receivable, net 4,075,421 3,017,506 The contract assets are mainly related to the Group’s home renovation business. The Group’s timing of revenue recognition may differ from the timing of invoicing to customers. The Group’s contract assets represent the amount of contract revenue recognized but not yet billed pursuant to contract terms. Contract assets, net consists of the following: As of December 31, 2022 2023 RMB RMB (in thousands) Contract assets – gross 224,660 273,661 Allowance for credit losses (137,059) (114,998) Contract assets, net 87,601 158,663 The movements in the allowance for credit losses of accounts receivable were as follows: For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Balance at the beginning of the year (1,122,218) (2,151,271) (1,951,419) Reversal/(Additions) (1,216,517) 76,184 (174,237) Write‑offs 187,464 123,668 559,527 Balance at the end of the year (2,151,271) (1,951,419) (1,566,129) The Group usually allows a credit period within 90 days to its customers. Ageing analysis of accounts receivable based on the date of delivery of service to customers is as follows: As of December 31, 2022 2023 RMB RMB (in thousands) – Up to 3 months 2,389,431 2,056,388 – 3 months to 1 year 1,161,639 617,635 – Over 1 year 2,475,770 1,909,612 Accounts receivable 6,026,840 4,583,635 Less: allowance for credit losses (1,951,419) (1,566,129) Accounts receivable, net 4,075,421 3,017,506 |
FINANCING RECEIVABLES, NET
FINANCING RECEIVABLES, NET | 12 Months Ended |
Dec. 31, 2023 | |
FINANCING RECEIVABLES, NET | |
FINANCING RECEIVABLES, NET | 7. FINANCING RECEIVABLES, NET Financing receivables, net as of December 31, 2022 and 2023 consisted of the following: As of December 31, 2022 2023 RMB RMB (in thousands) Short ‑ term: Financing receivables from consolidated Trusts 623,872 1,316,432 Financing receivables from micro‑loan platforms 182,779 153,809 Total short ‑ term financing receivables 806,651 1,470,241 Allowance for credit losses (139,427) (122,482) Total short ‑ term financing receivables, net 667,224 1,347,759 As of December 31, 2022 and 2023, the financing receivables are all due within one year. These balances represent short-term financing receivables that are personal credit loans to home buyers and tenants, and to other individual borrowers. Financing Receivables – Allowance for Credit Losses and Credit Quality Consistent with the adoption of ASU No. 2016-13 effective January 1, 2020, the allowance for credit losses is determined principally based on the past collection experience as well as consideration of current and future economic conditions and changes in the Group’s customer collection trends. All forward-looking statements are, by their nature, subject to risks and uncertainties, many of which are beyond the Group’s control. Primarily as a result of the uncertainty of macroeconomic and real estate agency business in 2023, the management updated the CECL model taking the latest available information into consideration. The major assumption (i.e. forward-looking information) and CECL model parameters (i.e. the one-year probability of default) were updated accordingly. The allowance for credit losses decreased to 8.3% of gross financing receivables (net of unearned income) at December 31, 2023 from 17.3% at December 31, 2022, which were mainly attributable to the reduction in loan delinquency as the Group carried out stricter recovery mechanism in 2023. The activities in the provision for credit losses for the years ended December 31, 2021, 2022 and 2023, respectively, consisted of the following: For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Beginning balance (127,319) (131,762) (139,427) (Provisions) Reversals (124,335) (18,658) 7,573 Write‑offs 119,892 10,993 9,372 Ending balance (131,762) (139,427) (122,482) The Group evaluates expected credit losses of financing receivables on a collective basis based on the type of borrowers and delinquency pattern: Type of borrowers: Property transaction related business: This segmentation includes financing receivables generated by property transaction business. The average loss rate in this category is 7.0% as of December 31, 2023. Non-property transaction related business: This segmentation mainly includes consumer loans. The average loss rate in this category is 47.9% as of December 31, 2023. 7. FINANCING RECEIVABLES, NET (CONTINUED) Delinquency: Based on the past due days, the Group separates the contracts into 5 groups including current, 1-29 days past due, 30-89 days past due, 90-179 days past due and over 180 days past due. The delinquency rate was 22.5% and 11.0% as at December 31, 2022 and 2023, respectively. Credit quality indicators are updated quarterly, and the credit quality of any given customer can change during the life of the portfolio. Financing receivables portfolio based on customer type, origination year and delinquency are as follows: 180 days 1 ‑ 29 Days 30 ‑ 59 Days 60 ‑ 89 Days 90 ‑ 179 Days or greater Total RMB in the thousands Past Due Past Due Past Due Past Due Past Due Past Due Current Total Property transaction related business 2018 and before — — — — 32,037 32,037 — 32,037 2019 — — — — 19,931 19,931 — 19,931 2020 — — — — 19,023 19,023 — 19,023 2021 — — — — 57,261 57,261 — 57,261 2022 2,980 — — 2,963 834 6,777 619,209 625,986 Subtotal 2,980 — — 2,963 129,086 135,029 619,209 754,238 Non-property transaction related business 2018 and before — — — — 3,954 3,954 — 3,954 2019 82 804 4,447 15,547 13,220 34,100 — 34,100 2020 — — 3 — 4,466 4,469 11 4,480 2021 — — — 3 3,286 3,289 5,800 9,089 2022 44 108 55 544 39 790 — 790 Subtotal 126 912 4,505 16,094 24,965 46,602 5,811 52,413 December 31, 2022 3,106 912 4,505 19,057 154,051 181,631 625,020 806,651 Property transaction related business 2018 and before — — — — 31,215 31,215 — 31,215 2019 — — — — 13,222 13,222 — 13,222 2020 — — — — 12,618 12,618 — 12,618 2021 — — — — 46,333 46,333 — 46,333 2022 — — — — 3,740 3,740 — 3,740 2023 5,545 — — 763 1,027 7,335 1,308,553 1,315,888 Subtotal 5,545 — — 763 108,155 114,463 1,308,553 1,423,016 Non-property transaction related business 2018 and before — — — — 4,731 4,731 — 4,731 2019 — — — — 31,137 31,137 — 31,137 2020 — — — — 4,079 4,079 — 4,079 2021 — — — 1,600 5,314 6,914 — 6,914 2022 — — — — 364 364 — 364 Subtotal — — — 1,600 45,625 47,225 — 47,225 December 31, 2023 5,545 — — 2,363 153,780 161,688 1,308,553 1,470,241 |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2023 | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
PROPERTY, PLANT AND EQUIPMENT, NET | 8. PROPERTY, PLANT AND EQUIPMENT, NET As of December 31, 2022 2023 RMB RMB (in thousands) Office building 707,693 689,703 Vehicles 21,821 22,085 Computer equipment 1,049,049 1,046,672 Furniture and office equipment 387,781 373,893 Leasehold improvement 2,444,146 2,717,396 Construction in progress 194,803 293,928 Total 4,805,293 5,143,677 Less: accumulated depreciation (2,749,468) (3,159,307) Less: accumulated impairment (19,272) (19,272) Net book value 2,036,553 1,965,098 Depreciation expenses recognized for the years ended December 31, 2021, 2022 and 2023 amounted to RMB879.7 million, RMB918.3 million and RMB775.0 million, respectively. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2023 | |
INTANGIBLE ASSETS, NET | |
INTANGIBLE ASSETS, NET | 9. INTANGIBLE ASSETS, NET As of December 31, 2022 2023 RMB RMB (in thousands) Software 116,229 115,297 Trademarks and domain names 1,194,482 1,195,161 Customer relationships 4,080 — Non‑competition agreements 1,300 460 Advertising resources 2,437,610 2,478,945 License 349,912 349,912 Total 4,103,613 4,139,775 Less: accumulated amortization (2,158,991) (2,815,803) Less: accumulated impairment (257,646) (256,513) Net book value 1,686,976 1,067,459 Amortization expenses recognized for the years ended December 31, 2021, 2022 and 2023 amounted to RMB491.0 million, RMB584.5 million and RMB627.1 million, respectively. Estimated amortization expenses relating to the existing intangible assets with finite lives for future periods is as follows: Amounts RMB (in thousands) Within 1 year 250,692 Between 1 and 2 years 129,257 Between 2 and 3 years 116,358 Between 3 and 4 years 114,809 Thereafter 456,343 Total 1,067,459 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
LEASES | |
LEASES | 10. LEASES (a) The Group as a lessee The Group has operating leases for sales stores (including brokerage sales stores, transaction closing service centers and home renovation and furnishing service stores), administrative offices, entrusted houses and land use rights in China. The recognition of whether a contract arrangement contains a lease is made by evaluating whether the arrangement conveys the right to use an identified asset and whether the Group obtains substantially all the economic benefits from and has the ability to direct the use of the asset. Operating lease assets and liabilities are included in the items of “Right-of-use assets”, “Lease liabilities current portion”, and “Lease liabilities non-current portion” on consolidated balance sheets. The components of lease cost for the years ended December 31, 2021, 2022 and 2023 were listed as follows: For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Operating lease cost 3,586,026 4,216,897 7,785,841 Short‑term lease cost 47,769 39,941 50,659 Total 3,633,795 4,256,838 7,836,500 Supplemental cash flows information related to leases was as follows: For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows payment from operating leases 3,413,301 3,652,435 7,965,277 Right ‑ of ‑ use assets obtained in exchange for lease liabilities: Total right‑of‑use assets obtained in exchange for new operating lease liabilities 5,749,581 11,427,030 15,489,351 The components of right‑of‑use assets obtained in exchange for new operating lease liabilities were as follows: For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Right ‑ of ‑ use assets obtained in exchange for lease liabilities Store leases 4,341,144 4,054,404 3,262,410 Administrative office leases 1,168,547 493,255 273,088 Leases of rental property management services 239,890 6,879,371 11,953,853 Total 5,749,581 11,427,030 15,489,351 10. LEASES (CONTINUED) Supplemental balance sheet information related to leases was as follows: As of December 31, 2022 2023 RMB RMB (in thousands) Operating leases Store leases 5,269,031 5,460,840 Administrative office leases 629,724 626,652 Leases of rental property management services 5,300,127 11,447,181 Land use rights 85,188 83,242 Total operating lease assets 11,284,070 17,617,915 Operating lease liabilities, current 4,972,345 9,368,607 Operating lease liabilities, non‑current 6,599,930 8,327,113 Total operating lease liabilities 11,572,275 17,695,720 For the Year Ended December 31, 2021 2022 2023 Weighted ‑ average remaining lease term (in years) Operating leases 3.25 2.90 2.43 Land use rights 41.34 44.17 43.18 Weighted ‑ average discount rate Operating leases 4.8 % 4.5 % 4.3 % Land use rights 5.3 % 4.7 % 4.7 % Maturities of lease liabilities were as follows: As of December 31, 2023 RMB (in thousands) 2024 9,645,224 2025 5,484,022 2026 1,618,295 2027 646,558 2028 356,789 Thereafter 657,608 Total undiscounted lease payments 18,408,496 Less: imputed interest (712,776) Total lease liabilities 17,695,720 The Group’s lease agreements generally do not contain an option for the Group to renew a lease for a term agreed by the Group. The Group’s lease agreements generally do not contain any residual value guarantees or material restrictive covenants. Payments under the lease arrangements are primarily fixed. 10. LEASES (CONTINUED) (b) The Group as a lessor The Group generates revenues from rental property management services as a lessor. Lease income recognized for the years ended December 31, 2021, 2022 and 2023 amounted to RMB635.6 million, RMB1,523.0 million and RMB6,002.5 million, respectively. Maturities of undiscounted lease payments to be received were as follows: As of December 31, 2023 RMB (in thousands) 2024 6,856,443 2025 868,460 2026 94,340 2027 17,366 2028 11,062 Thereafter 35,344 Total undiscounted lease payments 7,883,015 |
LONG-TERM INVESTMENTS, NET
LONG-TERM INVESTMENTS, NET | 12 Months Ended |
Dec. 31, 2023 | |
LONG-TERM INVESTMENTS, NET | |
LONG-TERM INVESTMENTS, NET | 11. LONG-TERM INVESTMENTS, NET The following table sets forth a breakdown of the categories of long-term investments held by the Group as of the dates indicated: As of December 31, 2022 2023 RMB RMB (in thousands) Investments in equity method investees 370,985 436,344 Investments accounted for at fair value 1,063,689 660,112 Equity investments without readily determinable fair value using the NAV practical expedient 91,005 86,240 Equity investments without readily determinable fair value using the measurement alternative 61,640 43,746 Long-term time deposits 11,064,516 15,352,785 Held-to-maturity debt investments 147,529 1,729,602 Available-for-sale debt investments 5,126,289 5,262,159 Total long-term investments 17,925,653 23,570,988 Investments in equity method investees The Group applies the equity method of accounting to account for its equity investments in common stock or in-substance common stock, over which it has significant influence but does not own a majority equity interest or otherwise control. 11. LONG-TERM INVESTMENTS, NET (CONTINUED) Amounts RMB (in thousands) Balance at December 31, 2020 689,929 Investments made 258,990 Income (loss) from investment 39,520 Investment impairment (2,914) Disposal of investment (540,433) Dividend received (14,800) Balance at December 31, 2021 430,292 Investments made 12,188 Income (loss) from investment 44,588 Disposal of investment (134,406) Dividend received (27,338) Acquired in a business combination 45,661 Balance at December 31, 2022 370,985 Investments made 183,253 Income (loss) from investment 9,098 Investment impairment (10,369) Disposal of investment (101,761) Dividend received (14,862) Balance at December 31, 2023 436,344 Investments accounted for at fair value Investments accounted for at fair value include (i) marketable equity securities, which are publicly traded stocks or funds measured at fair value, (ii) unlisted equity securities or debt securities and long-term loan receivables which use unobservable inputs to measure the fair value on recurring basis, and (iii) investments in wealth management products with maturity date in over one year, which are financial instruments with variable interest rates or principal not-guaranteed with certain financial institutions and are measured at fair value in accordance with ASC 825-“Financial Instruments”. The following table shows the carrying amount and fair value of investments accounted for at fair value: Gross Gross unrealized unrealized Exchange Cost basis gains losses adjustments Fair value RMB RMB RMB RMB RMB (in thousands) Marketable securities (i) 96,848 — (63,678) 3,964 37,134 Unlisted equity securities and loan receivables measured at fair value (ii) 252,567 444 (164,456) — 88,555 Wealth management product (iii) 937,500 500 — — 938,000 Balance at December 31, 2022 1,286,915 944 (228,134) 3,964 1,063,689 Marketable securities (i) 96,848 — (69,035) 4,932 32,745 Unlisted equity securities and loan receivables measured at fair value (ii) 238,015 778 (161,126) — 77,667 Wealth management product (iii) 537,500 12,200 — — 549,700 Balance at December 31, 2023 872,363 12,978 (230,161) 4,932 660,112 11. LONG-TERM INVESTMENTS, NET (CONTINUED) (i) Marketable securities Marketable securities represent investments in the equity securities of publicly listed companies, for which the Group does not have significant influence. The marketable securities are valued using the market approach based on the quoted prices in active markets at the reporting date. The Group classifies the valuation techniques that use these inputs as Level 1 of fair value measurements. (ii) Unlisted equity securities and loan receivables measured at fair value Investment in IFM Investments Limited (“IFM”) In October 2017, the Group purchased 10% ownership in IFM, a company focusing on real estate agency business in the PRC, through subscription of 308,084,916 convertible redeemable preferred shares newly issued by IFM at an aggregated subscription price of RMB60 million. Concurrent with the preferred share investment, the Group entered into a convertible note purchase agreement on August 14, 2017 to purchase convertible notes issued by IFM in the principal amount of US$ equivalent of RMB40 million with maturity period of 30 months and interest rate per annum of 12%. The convertible notes were convertible into IFM’s preferred shares at a discounted price. The Group elected the fair value option to measure the preferred share investments and the entire convertible note with the assistance of an independent valuation firm. In 2019, the Group launched many incentive programs to incentivize real estate brokerage firms to join the Group’s platform. IFM is one of the leading firms in the real estate agency business industry. In May 2019, to incentivize IFM to join the Group’s platform, the Group made additional investment of RMB308 million to acquire certain percentage of IFM’s preferred and ordinary shares, converted the convertible note into preferred shares and provided RMB130 million loan to IFM’s controlling shareholder, which is secured by 17.5% ownership of IFM. Total consideration of the additional investment in IFM and the loan to IFM’s controlling shareholder was RMB438 million. The fair value of the additional investment in IFM and the loan to IFM’s controlling shareholder was RMB120.1 million on the transaction date. The difference of RMB317.9 million between the consideration paid and the fair value received was considered and recognized as deemed marketing expenses. As the investment in IFM is not in-substance common stock, it does not qualify for equity method accounting, and according to ASC 321, the Group elected to account for this investment at fair value with realized or unrealized gains and losses recorded in the consolidated statements of comprehensive income (loss). As of December 31, 2022 and 2023, the Group held 37.6% in IFM and account for the investment in IFM amounted to RMB58.8 million and RMB57.1 million, and loan to IFM’s controlling shareholder at fair value amounting to RMB1.2 million and RMB1.1 million, respectively. The Group classifies the valuation techniques that use these inputs as Level 3 of fair value measurements. Other than the equity investment in IFM, the investment in unlisted equity securities was primarily equity investments in one private company focusing on home renovation business in the PRC and other private investment companies. (iii) Wealth management products As part of the Group’s cash management program, the Group invested in certain wealth management products with variable interest rates and principal not guaranteed issued by financial institutions in the PRC. These wealth management products were with maturity of over one year, or can be redeemed through advance notice and the Group intended to hold the investments over one year, thus were classified as long-term investments. Equity investments without readily determinable fair value using the NAV practical expedient Equity investments without readily determinable fair value in private equity funds is accounted for under NAV practical expedient. 11. LONG-TERM INVESTMENTS, NET (CONTINUED) Investments in private equity generally are not redeemable due to the closed-ended nature of these funds. Investment in private equity funds over which the Group does not have the ability to exercise significant influence are accounted for under the NAV practical expedient. As of December 31, 2022 and 2023, the carrying amount of the Group’s investment in private equity fund was approximately RMB91.0 million and RMB86.2 million, respectively. During the years ended December 31, 2021, 2022 and 2023, fair value changes recognized for this equity investment were RMB51.6 million, RMB(32.9) million, RMB(4.8) million respectively. Investments in the private equity fund is subject to a lock-up period of 8 years from September 2018 which restricts investor from withdrawing from the fund during the investment period. Equity investments without readily determinable fair value using the measurement alternative Equity investments without readily determinable fair value in private companies is accounted for under measurement alternative. The total carrying value of investment in private companies accounted for under measurement alternative held as of December 31, 2022 and 2023 were as follows: As of December 31, 2022 2023 RMB RMB (in thousands) Initial cost basis 835,790 839,296 Cumulated unrealized losses (including impairment) (774,150) (795,550) Total carrying value 61,640 43,746 For the years ended December 31, 2021, 2022 and 2023, RMB183.8 million, RMB591.9 million and RMB28.8 million impairment was recorded for investments in private companies accounted for under measurement alternative. The impairment was recorded in “Impairment loss for equity investments accounted for using measurement alternative” in the Group’s consolidated statements of comprehensive income (loss). Also, the Group classifies those investments that use similar identifiable transaction prices when applying valuation techniques as Level 2 of fair value measurements and those investments that measured using significant unobservable inputs as Level 3 of fair value measurements. Long-term time deposits The Group’s long-term time deposits are time deposits placed with banks with original maturities more than one year and those matured date within one year will be reclassified to short-term investments. As of December 31, 2022, deposits were denominated in RMB amounting to approximately RMB11.1 billion, among which RMB1.7 billion will be matured in 2024. The remaining RMB9.4 billion will be matured in 2025. As of December 31, 2023, deposits were denominated in RMB amounting to approximately RMB15.4 billion, among which RMB10.1 billion will be matured in 2025 and the remaining RMB5.3 billion will be matured in 2026. 11. LONG-TERM INVESTMENTS, NET (CONTINUED) Held-to-maturity debt investments During the year ended December 31, 2023, the Group recorded investment income from its long-term held-to-maturity debt investments of RMB47.1 million in the consolidated statement of comprehensive income (loss). Long-term held-to-maturity debt investments as of December 31, 2023 are shown as below, which would be due in 1 As of December 31, 2023 Gross Gross Cost or unrecognized unrecognized Amortized holding holding Fair cost gains losses value RMB RMB RMB RMB (in thousands) Held-to-maturity debt investments 1,729,602 — (28,362) 1,701,240 The following table summarizes the amortized cost of held-to-maturity debt investments with stated contractual dates, classified by the contractual maturity date of the investments: As of December 31, 2022 2023 RMB RMB (in thousands) Due in 1 year through 5 years 147,529 1,729,602 Available-for-sale debt investments The Group’s available-for-sale debt investments mainly include investments in debt securities issued by banks and other financial institutions that are redeemable at the issuer’s option, which have no contractual maturity date. As of December 31, 2023, RMB5.3 billion available-for-sale debt investments were held by the Group. Available-for-sale debt investments as of December 31, 2023 are shown as below: As of December 31, 2023 Cost or Gross Gross Amortized unrealized unrealized Fair cost gains losses value RMB RMB RMB RMB (in thousands) Available-for-sale debt investments 5,555,020 — (292,861) 5,262,159 The following table summarizes the Group’s gross unrealized losses and fair value for available-for-sale investments in an unrealized loss position as of December 31, 2023: 12 Months or Greater Fair Unrealized Value Losses RMB RMB (in thousands) Additional Tier1 Bonds 5,262,159 (292,861) Estimated allowances for credit losses of available-for sales are determined by considering reasonable and supportable forecasts of future economic conditions in addition to information about past events and current conditions. Based on this evaluation, no allowance for credit losses on debt securities was recorded as of December 31, 2023. 11. LONG-TERM INVESTMENTS, NET (CONTINUED) The following table summarizes the estimated fair value of available-for-sale debt investments with stated contractual dates, classified by the contractual maturity date of the investments: As of December 31, 2022 2023 RMB RMB (in thousands) Due in 1 year through 5 years 5,126,289 5,262,159 |
GOODWILL.
GOODWILL. | 12 Months Ended |
Dec. 31, 2023 | |
GOODWILL. | |
GOODWILL | 12. GOODWILL For the years ended December 31, 2022 and 2023, the changes in the carrying value of goodwill by segment are as follows: Existing home New home Home transaction transaction renovation services services and furnishing Total RMB RMB RMB RMB (in thousands) Balance as of December 31, 2021 594,908 1,210,781 — 1,805,689 New additions (i) 62,496 — 3,207,805 3,270,301 Impairment provided (ii) (59,022) (82,733) — (141,755) Balance as of December 31, 2022 598,382 1,128,048 3,207,805 4,934,235 New additions (iii) 17,978 — — 17,978 Disposal (1,989) — — (1,989) Impairment provided (iv) (59,163) (34,254) — (93,417) Balance as of December 31, 2023 555,208 1,093,794 3,207,805 4,856,807 (i) During the year ended December 31, 2022, the Group acquired several real estate agency companies operating existing home transaction services in multiple cities, as well as Shengdu, a full-service home renovation service provider in China. On April 20, 2022, the Group completed the acquisition of Shengdu that was added to the home renovation and furnishing segment. The acquisition has been accounted for as a business combination, resulting in the recognition of RMB3,060.8 million of goodwill. (ii) During the year ended December 31, 2022, certain reporting units experienced a significant decrease in revenue and profit as a result of market downturn. This decline was identified by management as a triggering event. Following an impairment assessment, management concluded that the goodwill associated with certain reporting units was impaired. Consequently, a goodwill impairment loss of RMB141.8 million was recorded, with RMB59.0 million attributed to reporting units within the existing home transaction services segment and RMB82.7 million attributed to reporting units within the new home transaction services segment. (iii) During the year ended December 31, 2023, the Group acquired several real estate agency companies engaged in existing home transaction services in multiple cities. (iv) The Group completed its annual goodwill impairment test for all its reporting units as of December 31, 2023. During the year ended December 31, 2023, actual performance of certain reporting units did not meet prior forecasted expectations due to unfavorable local market conditions. The Group performed quantitative impairment testing on these reporting units and recognized goodwill impairment loss of RMB93.4 million, including RMB59.2 million related to reporting units within the existing home transaction services segment and RMB34.3 million related to reporting units within the new home transaction services segment. Following the goodwill impairment charge recorded in relation to these reporting units, the carrying value of the reporting units equaled its fair value as of December 31, 2023. Therefore, if business conditions or expectations were to change materially, it may be necessary to record further impairment charges to these reporting units in the future. The Group also performed a quantitative impairment test for its home renovation and furnishing reporting units using an income approach based on a discounted cash flow model (“DCF model”). As of December 31, 2023, the fair value of the home renovation and furnishing reporting unit exceeded its carrying value by 10%. 12. GOODWILL (CONTINUED) Key assumptions used in quantitative impairment test The quantitative impairment test consists of a comparison of the fair value of each reporting unit with its carrying amount, including goodwill. The Group used a DCF model to estimate the fair value of the reporting units, as management believes forecasted operating cash flows were the best indicator of fair value. A number of significant assumptions were involved in the preparation of the DCF models including future revenues and discount rates. The financial projection covering a five-year period of each reporting unit adopted in DCF models for impairment test purpose is based on the financial budgets approved by the management of the Group, which considering the historical performance and its expectation for future market development. Cash flows beyond the five-year period are extrapolated using a long-term growth rate. Post-tax discount rates reflect market assessment of the weighted average cost of capital in the industry the Group operates and the specific risks relating to the Group. Impairment loss of goodwill recognized for the years ended December 31, 2021, 2022 and 2023 were RMB732.4 million, RMB141.8 million and RMB93.4 million, respectively. As of December 31, 2022 and 2023, the original gross amounts of goodwill were RMB6,462.8 million and RMB6,478.8 million, respectively, and the accumulated impairment losses were RMB1,528.6 million and RMB1,622.0 million, respectively. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2023 | |
BORROWINGS | |
BORROWINGS | 13. BORROWINGS As of December 31, 2022 and 2023, the contractual maturities of the borrowings are all within one year. As of December 31, 2022 2023 RMB RMB (in thousands) Short‑term borrowings 619,000 290,450 In September 2022, Beike Technology Co., Ltd entered into a RMB460.0 million 356-day short-term borrowing contract with a bank at a fixed borrowing rate of 3.58%. RMB 43.3 million, RMB47.8 million, RMB43.3 million and RMB325.6 million were scheduled to be paid off on February 28, 2023, March 21, 2023, August 31, 2023 and September 21, 2023, respectively. By the end of December 31, 2023, the borrowings were fully paid off upon maturity. In December 2022, Beike Technology Co., Ltd entered into a RMB140.0 million 360-day short-term borrowing contract with a bank at a fixed borrowing rate of 3.58%. RMB23.3 million, RMB3.9 million, RMB23.3 million and RMB89.5 million were scheduled to be paid off on March 31, 2023, June 30, 2023, September 30, 2023 and December 25, 2023,respectively, according to the borrowing contract. By the end of December 31, 2023, the borrowings were fully paid off upon maturity. In December 2022, Tianjin Lianjia Baoye Real Estate Brokerage Co., Ltd entered into a RMB19.0 million 360-day short-term borrowing contract with a bank at a fixed borrowing rate of 3.58%. RMB3.2 million and RMB15.8 million were scheduled to be paid off on June 30, 2023 and December 25, 2023, respectively, according to the borrowing contract. By the end of December 31, 2023, the borrowings were fully paid off upon maturity. In September 2023, Beike Technology Co., Ltd entered into a RMB277.8 million 267-day short-term borrowing contract with a bank at a fixed borrowing rate of 3.35%. RMB43.3 million, RMB47.8 million and RMB186.7 million are scheduled to be paid off on February 29, 2024, March 31, 2024 and June 21, 2024, respectively. In December 2023, Tianjin Lianjia Baoye Real Estate Brokerage Co., Ltd entered into a RMB12.7 million 363-day short-term borrowing contract with a bank at a fixed borrowing rate of 3.30%. RMB3.2 million and RMB9.5 million are scheduled to be paid off on June 30, 2024 and December 25, 2024, respectively. |
ACCOUNTS PAYABLE
ACCOUNTS PAYABLE | 12 Months Ended |
Dec. 31, 2023 | |
ACCOUNTS PAYABLE | |
ACCOUNTS PAYABLE | 14. ACCOUNTS PAYABLE As of December 31, 2022 2023 RMB RMB (in thousands) Payable related to new home transaction business 4,333,474 4,081,051 Payable for home renovation materials and construction costs 867,045 1,375,333 Payable for advertising fees 186,604 305,108 Payable for internet service fees 104,603 166,085 Payable for leasehold improvements 90,271 92,924 Others 261,324 308,015 Total 5,843,321 6,328,516 An ageing analysis of the trade payable as of December 31, 2022 and 2023, based on the invoice date, is as follow: As of December 31, 2022 2023 RMB RMB (in thousands) – Up to 3 months 5,259,873 5,980,363 – 3 months to 1 year 270,846 221,018 – Over 1 year 312,602 127,135 Accounts payable 5,843,321 6,328,516 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 15. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES As of December 31, 2022 2023 RMB RMB (in thousands) Deposit related to new home services 1,267,752 1,388,784 Deposit related to franchise services 956,121 1,014,348 Deposit related to home renovation and furnishing services 292,361 961,966 Deposit related to entrusted house lease services 303,793 832,877 Other tax payables 272,610 335,395 Accrued operating expenses 215,234 291,914 Payable related to escrow accounts services (i) 116,025 153,670 Payable related to employees’ exercise of share-based awards 27,736 55,783 Deferred guarantee revenue 32,618 25,671 Others 633,818 635,540 Total 4,118,068 5,695,948 (i) Payable related to escrow accounts services refers to escrow payments such as deposits, down payments and other payments collected from the property buyers on behalf of and payable to the property sellers. The escrow payments will be paid to property sellers according to the payment schedule of the property purchase agreement agreed by both parties. |
OTHER INCOME, NET
OTHER INCOME, NET | 12 Months Ended |
Dec. 31, 2023 | |
OTHER INCOME, NET | |
OTHER INCOME, NET | 16. OTHER INCOME, NET For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Investment income, net 487,724 795,804 950,332 Government grants 1,059,907 668,372 762,070 Net gain (loss) on disposal of property, plant and equipment and intangible assets (467) 653 (629) Others 155,250 103,758 157,527 Total 1,702,414 1,568,587 1,869,300 |
INTEREST INCOME, NET
INTEREST INCOME, NET | 12 Months Ended |
Dec. 31, 2023 | |
INTEREST INCOME, NET | |
INTEREST INCOME, NET | 17. INTEREST INCOME, NET For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Interest income 385,375 769,094 1,291,485 Interest expense (6,105) (14,053) (17,241) Bank charges (18,952) (11,124) (9,068) Others (5,751) (433) (1,844) Total 354,567 743,484 1,263,332 |
TAXATION
TAXATION | 12 Months Ended |
Dec. 31, 2023 | |
TAXATION | |
TAXATION | 18. TAXATION Income tax Current income tax is recorded in accordance with the laws of the relevant tax jurisdictions. The Group applies the assets and liabilities method of income taxes in accordance of ASC 740-“Income Taxes”, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are provided based on temporary differences arising between the tax bases of assets and liabilities and financial statements, using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. Deferred tax assets are recognized to the extent that such assets are more-likely-than-not to be realized. In making such a determination, the Group considers all positive and negative evidence, including results of recent operations and expected reversals of taxable income. Valuation allowances are established to offset deferred tax assets if it is considered more-likely-than-not that the amount of the deferred tax assets will not be realized. Uncertain tax positions The Group accounts for uncertainty in income taxes recognized in the consolidated financial statements by applying the two-step approach to determine the amount of the benefit to be recorded. Under the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more-likely-than-not that the position will be sustained, including resolution of related appeals or litigation processes. If the tax positions meet the “more-likely-than-not” recognition threshold, the second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon settlement. The Group classifies interest and penalties related to income tax matters, if any, as income tax expense. The Group did not have any significant interest or penalties associated with tax positions for the years ended December 31, 2021, 2022 and 2023. The Group did not have any significant unrecognized uncertain tax positions for the years ended December 31, 2021, 2022 and 2023. 18. TAXATION (CONTINUED) Cayman Islands The Cayman Islands currently levies no taxes on individuals or corporations based upon profits, income, gains or appreciation and there is no taxation in the nature of inheritance or estate duty. There are no other taxes likely to be material to the Group levied by the government of the Cayman Islands except for stamp duties which may be applicable on instruments executed in or brought within the jurisdiction of the Cayman Islands. In addition, the Cayman Islands does not impose withholding tax on dividend payments. British Virgin Islands The Group’s subsidiaries incorporated in the British Virgin Islands are not subject to income or capital gains tax under the current laws of the British Virgin Islands. In addition, payment of dividends by the British Virgin Islands subsidiaries to their respective shareholders who are not resident in the British Virgin Islands, if any, is not subject to withholding tax in the British Virgin Islands. Hong Kong Hong Kong income tax rate is two-tiered profits tax regime, under which the tax rate is 8.25% or assessable profits on the first HK dollar 2 million and 16.5% or any assessable profits in excess of HK dollar 2 million. Hong Kong profits tax was provided for the assessable profit that was subject to Hong Kong profits tax during the years ended December 31, 2021, 2022 and 2023. Additionally, payments of dividends by the subsidiaries incorporated in Hong Kong to the Group are not subject to any Hong Kong withholding tax. China On March 16, 2007, the National People’s Congress of PRC enacted a new Corporate Income Tax Law (“new CIT law”), under which Foreign Investment Enterprises (“FIEs”) and domestic companies would be subject to corporate income tax at a uniform rate of 25%. The new CIT law became effective on January 1, 2008. Under the new CIT law, preferential tax treatments will continue to be granted to entities which conduct businesses in certain encouraged sectors and to entities otherwise classified as “small and micro businesses”. Certain enterprises benefit from a preferential tax rate of 15% under the EIT Law if they conducted business in certain encouraged high-tech sectors or areas and got the certificates from the competent tax authorities. Certain enterprises benefit from an exemption from income tax for the first two years and 50% reduction for the next three years from their first profitable year as they conduct business in certain encouraged software industry and get the certificates from the authorized software industry associations. The privileges cannot be applied simultaneously. Two, three and three entities in the Group for the years ended December 31, 2021, 2022 and 2023, respectively, were qualified as “high and new technology enterprise” and had a 15% preferential income tax rate. One entity in the Group has been entitled to the exemption of two years and halving for three years of corporate income tax from the profit – making year as a “software enterprise”. The entity was exempted for income tax for the year ended December 31, 2021 and 2022, and is entitled to a preferential income tax rate of 12.5% for each of the three years in the period ending December 31, 2025. Certain enterprises benefit from a preferential tax rate of 15% under the EIT Law if they are located in applicable PRC regions as specified in the Catalogue of Encouraged Industries in Western Regions (initially effective through the end of 2010 and further extended to 2030), or the Western Regions Catalogue, subject to certain general restrictions described in the EIT Law and the related regulations. Six, six and one entities in the Group for the years ended December 31, 2021, 2022 and 2023, respectively, were qualified as the enterprises within the Catalogue of Encouraged Industry in the Western Region and had a 15% preferential income tax rate. The Group’s other PRC subsidiaries, consolidated VIEs (inclusive of VIEs’ subsidiaries) are subject to the statutory income tax rate of 25%. 18. TAXATION (CONTINUED) China (Continued) According to relevant laws and regulations promulgated by the State Taxation Administration of the PRC announced on March 26, 2023, effective from 2023 onwards, enterprises engaging in research and development activities are entitled to claim 200% of their qualified research and development expenses so incurred as tax deductible expenses when determining their assessable profits for the year (the “R&D Super Deduction”). The components of income (loss) before tax for the years ended December 31, 2021, 2022 and 2023, are as follows: For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Income (loss) before income tax expense Income from China operations 2,484,608 2,936,269 10,550,583 Loss from non‑China operations (1,343,882) (2,643,979) (2,666,588) Total income before income tax expense 1,140,726 292,290 7,883,995 Income tax expense from China operations Current income tax expense 1,759,725 1,275,779 2,243,600 Deferred tax (benefit)/expense (169,673) 237,615 (273,191) Income tax expense from China operations 1,590,052 1,513,394 1,970,409 Income tax expense from non‑China operations 75,440 176,180 23,982 Total income tax expense 1,665,492 1,689,574 1,994,391 For the years ended December 31, 2021, 2022 and 2023, loss from non-China operations are resulted from (i) share-based compensation expenses amounting to RMB1,538.3 million, RMB2,425.2 million and RMB3,215.5 million, respectively; and (ii) gains from investment in wealth management products amounting to RMB502.4 million, RMB192.4 million and RMB452.5 million, respectively. The income tax expense (benefit) applicable to the Group’s operations for the years ended December 31, 2021, 2022 and 2023, differs from the amount computed by applying the PRC statutory income tax rate of 25% to income before tax due to the following: For the Year Ended December 31, 2021 2022 2023 Statutory income tax rate 25.0 % 25.0 % 25.0 % Tax effect of preferential treatments (12.4) % (39.5) % (3.7) % Tax effect of tax-exempt entities 34.0 % 253.4 % 8.4 % Effect on tax rates in different tax jurisdiction 2.1 % 33.0 % 0.3 % Tax effect of permanent difference 49.7 % 151.9 % (4.1) % Tax effect of R&D deduction and others (21.2) % (58.0) % (2.0) % Change in valuation allowance 68.8 % 212.2 % 1.4 % Effect tax rates 146.0 % 578.0 % 25.3 % The changes of effective tax rate for the years ended December 31, 2021 and 2022 are primarily driven by the losses incurred by tax-exempt non-China operations, tax effect of permanent differences resulted from impairments of long-term equity investments, and increased valuation allowances established to offset deferred tax assets as it was considered more-likely-than-not that the amount of the deferred tax assets will not be realized. 18. TAXATION (CONTINUED) China (Continued) The following table sets forth the effect of tax holiday related to China operations: For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands, except for per share data) Tax holiday effect 141,554 115,521 294,698 Basic net income per share effect 0.04 0.03 0.08 Diluted net income per share effect 0.04 0.03 0.08 Denominator for basic net income (loss) per share-weighted average ordinary shares outstanding 3,549,122 3,569,179 3,521,380 Denominator for diluted net income (loss) per share-weighted average ordinary shares outstanding 3,549,122 3,569,179 3,611,653 Deferred tax assets and liabilities The tax effects of temporary differences that give rise to the deferred income tax assets and liabilities as of December 31, 2022 and 2023 are as follows: As of December 31, 2022 2023 RMB RMB (in thousands) Deferred tax assets Net operating loss carrying forward 2,788,131 3,144,161 Asset impairment 688,855 779,493 Deferred rental cost 48,290 17,642 Unrealized profits 184,837 154,012 Accrual expense 417,462 371,329 Others 81,420 75,825 Less: Valuation Allowance (3,310,975) (3,385,876) Deferred tax assets, net of valuation allowance 898,020 1,156,586 Deferred tax liability Fair value change of certain investments (45,559) (18,544) Intangible assets (343,200) (299,025) Deferred revenue (3,489) (4,666) Total deferred tax liability (392,248) (322,235) 18. TAXATION (CONTINUED) Deferred tax assets and liabilities (Continued) The movements of the valuation allowance for the years ended December 31, 2021, 2022 and 2023 are as follows: For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Balance at the beginning of the year (2,178,650) (2,892,268) (3,310,975) Remeasurement due to application of preferential tax rate — — (17,011) Additions (1,293,679) (1,029,453) (794,643) Reversals 571,595 575,365 687,180 Write-offs 8,466 35,381 49,573 Balance at the end of the year (2,892,268) (3,310,975) (3,385,876) A valuation allowance is provided against deferred tax assets when the Group determines that it is more-likely-than-not that the deferred tax assets will not be utilized in the future. The Group considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will be more-likely-than-not realized. This assessment considers, among other matters, the nature, frequency and severity of recent losses and forecasts of future profitability. These assumptions require significant judgment and the forecasts of future taxable income are consistent with the plans and estimates the Group is using to manage the underlying businesses. The statutory income tax rate of 25% or applicable preferential income tax rates were applied when calculating deferred tax assets. As of December 31, 2021, 2022 and 2023, the Group had net operating loss carryforwards of approximately RMB8,925.6 million, RMB11,545.8 million and RMB12,633.6 million, respectively, which arose from the Group’s certain subsidiaries, VIEs and the VIEs’ subsidiaries established in the PRC. As of December 31, 2021, 2022 and 2023, deferred tax assets arose from net operating loss carryforwards amounted to RMB2,210.1 million, RMB2,788.1 million and RMB3,144.2 million respectively, out of which, RMB2,153.5 million, RMB2,702.6 million and RMB2,848.8 million deferred tax assets were offset by valuation allowance, respectively, as it was considered more-likely-than-not that the amount of the deferred tax assets will not be realized. The remaining deferred tax assets, net of valuation allowance arose from net operating loss carryforwards as of December 31, 2021, 2022 and 2023 amounted to RMB56.6 million, RMB85.5 million and RMB295.3 million, respectively, is expected to be utilized prior to expiration considering future taxable income for respective entities. As of December 31, 2023, the net operating loss carryforwards of RMB12,633.6 million will expire in the years ending December 31, 2024 through 2028, respectively, if not utilized. The Group intends to indefinitely reinvest all the undistributed earnings of the VIEs and subsidiaries of the VIEs in China, and does not plan to have any of its PRC subsidiaries to distribute any dividend out of PRC; therefore no withholding tax is expected to be incurred in the foreseeable future. Accordingly, no income tax is accrued on the undistributed earnings of the VIEs and subsidiaries of the VIEs as of December 31, 2021, 2022 and 2023. Although the Group’s certain PRC subsidiaries have generated accumulated earnings as of December 31, 2023, they have not paid any dividends in the past and currently have no plans to pay any dividends out of PRC. These PRC subsidiaries plan to reinvest their profits into the PRC operations. The Group does not intend to have any of its PRC subsidiaries or VIEs distribute any undistributed profit of such subsidiaries or VIEs to their direct overseas parent companies, but rather intends that such profits will be permanently reinvested by such subsidiaries and VIEs for their PRC operations. As of December 31, 2023, the total number of undistributed profits from the PRC subsidiaries and VIEs for which no withholding tax had been accrued was RMB31,917 million, and the unrecognized tax liabilities were RMB3,192 million. 18. TAXATION (CONTINUED) Withholding tax on undistributed dividends The new CIT Law also provides that an enterprise established under the laws of a foreign country or region but whose “de facto management body” is located in the PRC be treated as a resident enterprise for PRC tax purposes and consequently be subject to the PRC income tax at the rate of 25% for its global income. The Implementing Rules of the EIT Law merely define the location of the “de facto management body” as “the place where the exercising, in substance, of the overall management and control of the production and business operation, personnel, accounting, property, etc., of a non-PRC company is located”. Based on a review of surrounding facts and circumstances, the Group does not believe that it is likely that its operations outside of the PRC should be considered a resident enterprise for PRC tax purposes. The new CIT law also imposes a withholding income tax of 10% on dividends distributed by an VIE to its immediate holding company outside of China, if such immediate holding company is considered as a non-resident enterprise without any establishment or place within China or if the received dividends have no connection with the establishment or place of such immediate holding company within China, unless such immediate holding company’s jurisdiction of incorporation has a tax treaty with China that provides for a different withholding arrangement. According to the arrangement between Mainland China and Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion in August 2006, dividends paid by an VIE in China to its immediate holding company in Hong Kong will be subject to withholding tax at a rate of no more than 5% (if the foreign investor owns directly at least 25% of the shares of the VIE). The Group did not record any dividend withholding tax on the retained earnings of its FIEs in the PRC, as the Group intends to reinvest all earnings in China to further expand its business in China, and the VIEs do not intend to declare dividends on the retained earnings to their immediate foreign holding companies. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2023 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | 19. SHARE-BASED COMPENSATION Compensation expenses recognized for share-based awards granted by the Group were as follows: For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Included in: Cost of revenues 406,131 356,844 502,523 Sales and marketing expenses 110,446 121,396 180,465 General and administrative expenses 595,732 1,659,755 2,345,895 Research and development expenses 425,978 287,254 186,666 Total 1,538,287 2,425,249 3,215,549 Share‑based compensation related to share options (a) 1,504,025 970,551 771,151 Share‑based compensation related to restricted share units (b) 34,262 361,071 813,294 Share-based compensation related to restricted shares (c) — 1,093,627 1,631,104 Total 1,538,287 2,425,249 3,215,549 There was no income tax benefit recognized in the consolidated statements of comprehensive income (loss) for share-based compensation expenses and the Group did not capitalize any of the share-based compensation expenses as part of the cost of any assets during the years ended December 31, 2021, 2022 and 2023. 19. SHARE-BASED COMPENSATION (CONTINUED) (a) Share-based compensations related to share options 2018 Share Option Plan On August 20, 2018, the Group adopted the “Pre-IPO Share Option Scheme” (the “2018 Share Option Plan”), an equity-settled share-based compensation plan with the purpose of providing incentives and rewards to its employees, directors and consultants of the Group who have contributed or will contribute to the Group. The maximum number of shares that may be issued under the 2018 Share Option Plan shall be 350,225,435 Class A Ordinary Shares of the Group on December 28, 2018. Share options granted under 2018 Share Option Plan have a contractual term of ten one Under the 2018 Share Option Plan, share options granted to employees of the Group are only exercisable upon the occurrence of an initial public offering of the Group. The following table summarizes activities of the Company’s share options under 2018 Share Option Plan as converted to the number of ordinary shares of the Company: Weighted Weighted average Number of average remaining Aggregate options exercise contractual intrinsic outstanding price life value US$ In Years US$ (in thousands) Outstanding as of December 31, 2020 138,381,390 0.00002 8.29 2,838,661 Granted 20,341,532 0.00002 Exercised (57,076,970) 0.00002 Forfeited (8,913,268) 0.00002 Outstanding as of December 31, 2021 92,732,684 0.00002 8.11 621,926 Outstanding as of December 31, 2021 92,732,684 0.00002 8.11 621,926 Granted 4,073,400 0.00002 Exercised (24,383,373) 0.00002 Forfeited or Cancelled or Lapsed (12,600,293) 0.00002 Outstanding as of December 31, 2022 59,822,418 0.00002 7.30 278,373 Outstanding as of December 31, 2022 59,822,418 0.00002 7.30 278,373 Exercised (17,029,713) 0.00002 Forfeited or Cancelled (2,443,122) 0.00002 Outstanding as of December 31, 2023 40,349,583 0.00002 6.39 218,022 Vested and exercisable as of December 31, 2021 10,816,028 0.00002 6.96 72,539 Vested and exercisable as of December 31, 2022 8,393,147 0.00002 6.56 39,056 Vested and exercisable as of December 31, 2023 7,610,018 0.00002 5.81 41,119 The weighted-average grant date fair value for options granted under 2018 Share Option Plan for the years ended December 31, 2021, and 2022 was US$15.7 and US$5.8, respectively, computed using the binomial option pricing model. No share option was granted under 2018 Share Option Plan for the year ended December 31, 2023. During the years ended December 31, 2021, 2022 and 2023, the aggregate intrinsic value of share options exercised was US$788 million, US$129 million and US$93 million, respectively. The total share-based compensation expenses recognized for share options during the years ended December 31, 2021, 2022 and 2023 was RMB1,504.0 million, RMB970.6 million and RMB771.2 million. 19. SHARE-BASED COMPENSATION (CONTINUED) The fair value of each option granted under the Company’s Share Awards in 2018 Share Option Plan for the years ended December 31, 2021 and 2022 was estimated on the date of each grant using the binomial option pricing model with the assumptions (or ranges thereof) in the following table: For the Year Ended December 31, 2021 2022 Exercise price (US$) US$ 0.00002 US$ 0.00002 Fair value of ordinary shares (US$) 5.51~22.33 3.72 ~ 6.31 Expected volatility 51.0%~52.2 % 48.8% ~ 52.6 % Excepted term (in years) 10 10 Expected dividend yield 0 % 0 % Risk‑free interest rate 1.9%~2.3 % 2.3% ~ 4.2 % Risk-free interest rate is estimated based on the yield curve of US Sovereign Bond as of the option valuation date. The expected volatility at the grant date and each option valuation date is estimated based on annualized standard deviation of daily stock price return of comparable companies with a time horizon close to the expected expiry of the term of the options. The Group did not anticipate any dividend payments in the foreseeable future. Expected term is the contract life of the options. As of December 31, 2023, there was RMB716.0 million of unrecognized compensation expense related to the share options granted to the Group’s employees, which are expected to be recognized over a weighted-average period of 1.4 years and may be adjusted for future changes in forfeitures. (b) Share-based compensations related to restricted share units 2020 Share Incentive Plan In July 2020, the Group adopted a 2020 Global Share Incentive Plan (the “2020 Share Incentive Plan”), pursuant to which the maximum number of shares of the Group available for issuance pursuant to all awards under the 2020 Share Incentive Plan (the “Award Pool”) shall initially be 80,000,000 shares, plus an annual increase on the first day of each fiscal year of the Group during the ten-year term of this plan commencing with the fiscal year beginning January 1, 2021, by an amount equal to the lesser of (i) 1.0% of the total number of shares issued and outstanding on the last day of the immediately preceding fiscal year, and (ii) such number of shares as may be determined by the Board. The size of the Award Pool to be equitably adjusted in the event of any share dividend, subdivision, reclassification, recapitalization, split, reverse split, combination, consolidation or similar transactions. In April 2022, the Group adopted the amended 2020 Global Share Incentive Plan (the “Amended 2020 Share Incentive Plan”), under which the maximum aggregate number of Class A Ordinary Shares, per value of US$0.00002 each, may be issued pursuant to all awards under the Amended 2020 Plan is 253,246,913 upon the Listing. Pursuant to the Amended 2020 Share Incentive Plan, 46,425,615 restricted share units have been granted to employees of the Group during the year ended December 31, 2023, which are generally scheduled to be vested over continuous service period of one 19. SHARE-BASED COMPENSATION (CONTINUED) The following table summarizes activities of the Group’s restricted share units under 2020 Share Incentive Plan: Number of RSU Weighted average grant-date outstanding fair value US$ Outstanding as of December 31, 2020 — — Granted 2,525,730 11.85 Forfeited (83,607) 15.89 Outstanding as of December 31, 2021 2,442,123 11.72 Outstanding as of December 31, 2021 2,442,123 11.72 Granted 44,012,712 5.90 Vested (576,720) 7.89 Forfeited (4,375,617) 7.05 Outstanding as of December 31, 2022 41,502,498 6.08 Outstanding as of December 31, 2022 41,502,498 6.08 Granted 46,425,615 6.03 Vested (5,963,517) 5.90 Forfeited or Cancelled (2,002,524) 6.21 Outstanding as of December 31, 2023 79,962,072 6.07 The total share-based compensation expenses recognized for restricted share units for the year ended December 31, 2021, 2022 and 2023 was RMB34.3 million, RMB361.1 million and RMB813.3 million. As of December 31, 2023, there was RMB2,294.5 million of unrecognized compensation expense related to restricted share units granted to the Group’s employees, which are expected to be recognized over a weighted-average period of 2.8 years and may be adjusted for future changes in forfeitures. The total fair value of shares vested for restricted share units for the year ended December 31, 2021, 2022 and 2023 was nil, RMB29.6 million and RMB231.1 million. 19. SHARE-BASED COMPENSATION (CONTINUED) (c) Share-based compensation related to restricted shares 2022 Share Incentive Plan In Pursuant to the 2022 Share Incentive Plan, 71,824,250 and 53,868,189 restricted Class A ordinary shares have been issued to Mr. PENG Yongdong, chairman and chief executive officer of the Group, and Mr. SHAN Yigang, an executive director of the Group, on May 5, 2022. Such restricted shares are not transferable and may not be sold, pledged or otherwise disposed of and are not entitled to receive dividends paid. Such restrictions will be removed in whole in five years from May 5, 2022 with restriction on certain portion being removed in each year, subject to the approval by a resolution of the Compensation Committee of the Board. The restricted shares are granted in two agreements and the vesting schedule according to each restricted share agreement is as below: — second — One-third third fourth In May 2023, the restrictions on transfer and dividend rights of 50% of the restricted shares granted to Mr. Peng Yongdong and Mr. Shan Yigang The previous resolution for removing the restrictions on certain portion of the Restricted Shares was resolved to be null and void by the Compensation Committee in September 2023 after a discussion with Mr. Peng Yongdong and Mr. Shan Yigang. Such portion of the Restricted Shares will continue to be subject to the restrictions. RMB809.4 million and RMB1,225.9 million has been recognized following the original vesting schedule of the restricted shares for the years ended December 31, 2022 and 2023, respectively. No additional compensation charge related to the re-restriction of these shares for the year ended December 31, 2023. Shengdu Acquisition According to the amended acquisition agreement signed between the Group, Shengdu and Shengdu’s original shareholders, the Group issued 44,315,854 restricted Class A Ordinary Shares to the Shengdu’s original shareholders to acquired Shengdu’s 51% equity 19. SHARE-BASED COMPENSATION (CONTINUED) The following table summarizes activities of the Group’s restricted shares under 2022 Share Incentive Plan and Shengdu Acquisition: Number of restricted shares Weighted average grant-date outstanding fair value US$ Outstanding as of December 31, 2021 — — Granted 170,008,293 4.38 Outstanding as of December 31, 2022 170,008,293 4.38 Outstanding as of December 31, 2022 170,008,293 4.38 Vested * (13,292,404) 4.29 Outstanding as of December 31, 2023 156,715,889 4.39 * 16,416,972 and 12,312,729 restricted shares granted to Mr. PENG Yongdong and Mr. SHAN Yigang that vested and re-restricted during the year 2023 are presented on a net basis. The total share-based compensation expenses recognized for restricted shares for the year ended December 31, 2022 and 2023 was RMB1,093.6 million and RMB1,631.1 million. As of December 31, 2023, there was RMB2,132.2 million of unrecognized compensation expense related to restricted shares granted to the Group’s employees, which are expected to be recognized over a weighted-average period of 2.5 years and may be adjusted for future changes in forfeitures. The total fair value of shares vested for restricted shares for the year ended December 31, 2022 and 2023 was nil and RMB364.9 million. |
ORDINARY SHARES
ORDINARY SHARES | 12 Months Ended |
Dec. 31, 2023 | |
ORDINARY SHARES | |
ORDINARY SHARES | 20. ORDINARY SHARES Shares In August 2020, the Company completed its IPO on the New York Stock Exchange (“NYSE”). The Company received total net proceeds of approximately US$2,358.8 million after deducting US$79.2 million of underwriter commissions and relevant offering expenses. In November 2020, the Company completed a follow-on public offering on the NYSE. The Company received total net proceeds of approximately US$2,322.6 million after deducting US$38.5 million of underwriter commissions and relevant offering expenses. On November 8, 2021, an extraordinary general meeting of shareholders of the Company was held. The Memorandum and Articles of Association was amended that the Class B ordinary shares shall only be held by the Founder and Mr. PENG Yongdong and Mr. SHAN Yigang (“Co-founders”), and the immediatefamily members, any trust for the benefit of the Co-Founder and/or any of the immediate family members, and any corporation, partnership or any other entityultimately controlled by the Co-Founder and/or any of the immediate family members (together, the “Co-Founder Affiliates”). And the shareholders approved that 110,116,275 Class A ordinary shares that were held by Ever Orient International Limited and beneficially owned by Mr. PENG Yongdong, chairman and chiefexecutive officer of the Company, and 47,777,775 Class A ordinary shares that were held by Clover Rich Limited and beneficially owned by Mr. SHAN Yigang, an executive director of the Company, were re-designated and re-classified as Class B Ordinary Shares on a 1:1 basis, such Class B Ordinary Shares to rank pari passuin all respects with all other existing Class B Ordinary Shares in the authorized share capital of the Company, and that the rights, preferences, privileges and restrictions attaching to such re-designated shares shall be varied accordingly (the “Share Re-designation”). Immediately prior to the resolutions above become effective, Propitious Global Holdings Limited converted 157,894,050 of its Class B ordinary shares into Class A ordinary shares on a 1:1 basis. Propitious Global Holdings Limited, the Company’s principal shareholder, is ultimately controlled by Z&Z Trust, the beneficiaries of which are the immediate family members of Mr. ZUO Hui, who has passed away in May 2021. 20. ORDINARY SHARES (CONTINUED) On March 31, 2022, the management of the Group, Shengdu and Shengdu’s selling shareholders agreed to enter into an amended share purchase agreement, pursuant to which the Group agreed to issue 44,315,854 restricted Class A ordinary Shares to the selling shareholders of Shengdu as a part of consideration for acquisition of Shengdu. The restricted shares were issued on April 20, 2022 subject to three years’ restriction. As of December 31, 2023, 13,292,404 shares’restriction was removed. On May 5, 2022, the Group issued 71,824,250 and 53,868,189 restricted Class A ordinary shares under the Company’s 2022 Global Share Incentive Plan toMr. PENG Yongdong and Mr. SHAN Yigang. Such restrictions will be removed in whole in five years from May 5, 2022 with restriction on certain portion being removed in each year, subject to the approval by a resolution of the Compensation Committee of the Board. As of December 31, 2023, there was no shares’ restriction removed. On May 11, 2022, Propitious Global Holdings Limited converted 727,407,230 of its Class B ordinary shares into Class A ordinary shares on a 1:1 basis. Propitious Global Holdings Limited, the Company’s principal shareholder, is ultimately controlled by Z&Z Trust. On August 12, 2022, an amendment to the Memorandum and Articles of Association was approved by the shareholders during an annual general meeting, according to which, the authorised share capital of the Company is US$500,000 divided into 25,000,000,000 shares, comprising (i) 24,114,698,720 Class A ordinary shares with a par value of US$0.00002 each and (ii) 885,301,280 Class B ordinary shares with a par value of US$0.00002 each. On December 8, 2022, Ever Orient International Limited and Clover Rich Limited converted 1,023,202 and 443,952 Class B ordinary shares to Class A Ordinary Shares on a 1:1 basis, respectively. On February 17, 2023, Ever Orient International Limited and Clover Rich Limited converted 212,479 and 92,191 Class B ordinary shares to Class A Ordinary Shares on a 1:1 basis, respectively. On June 29, 2023, Ever Orient International Limited and Clover Rich Limited converted 1,144,392 and 496,534 Class B ordinary shares to Class A Ordinary Shares on a 1:1 basis, respectively. On August 28, 2023, Ever Orient International Limited and Clover Rich Limited converted 1,165,668 and 505,766 Class B ordinary shares to Class A Ordinary Shares on a 1:1 basis, respectively. On November 28, 2023, Ever Orient International Limited and Clover Rich Limited converted 1,014,947 and 440,370 Class B ordinary shares to Class A Ordinary Shares on a 1:1 basis, respectively. As of December 31, 2023, the Company issued 60,852,775 Class A Ordinary Shares to employee trust controlled by the Company upon early exercise of options, of which 49,319,159 shares have been exercised by employees. During the year ended December 31, 2021, 2022 and 2023, the Company issued 38,944,380, 31,999,998 and 88,800,000 Class A Ordinary Shares to the depositary bank for future exercise of employees’ share options, of which 55,711,134 shares have been exercised by employees as of December 31, 2023. 20. ORDINARY SHARES (CONTINUED) Holders of Class A Ordinary Shares and Class B Ordinary Shares have the same rights except for conversion and voting rights. Class B Ordinary Shares shall only be held by Mr. PENG Yongdong and Mr. SHAN Yigang (each of whom, a “Co-Founder”) a Director Holding Vehicle wholly-owned and wholly-controlled by a Co-Founder, as defined in the currently effective memorandum and articles of association. Class B ordinary shares may be converted into the same number of Class A ordinary shares by the holders thereof at any time, while Class A ordinary shares cannot be converted into Class B ordinary shares under any circumstances. Subject to the Hong Kong Listing Rules or other applicable laws or regulations, each Class B ordinary share shall be automatically converted into one Class A ordinary share upon the occurrence of any of the following events: (i) the holder of such Class B ordinary shares dies, ceases to be a director or a Director Holding Vehicle wholly-owned and wholly-controlled by a Co-Founder, or is deemed by the Hong Kong Stock Exchange to be incapacitated for the purpose of performing his or her duties as a director or no longer meet the requirements of a director as set out in the Hong Kong Listing Rules; (ii) the transfer to another person of the beneficial ownership of, or economic interest in, such Class B ordinary share or the control over the voting rights attached to such Class B ordinary share other than (a) the grant of any lien, pledge, charge or other encumbrance over such share which does not result in the transfer of the legal title or beneficial ownership of, or the voting rights attached to, such share, until the same is transferred upon the enforcement of such lien, pledge, charge or other encumbrance and (b) a transfer of the legal title to such share by a Co-Founder to a Director Holding Vehicle wholly-owned and wholly-controlled by him, or by a Director Holding Vehicle wholly-owned and wholly-controlled by a Co-Founder to the Co-Founder holding and controlling it or another Director Holding Vehicle wholly-owned and wholly-controlled by such Co-Founder; and (iii) a Director Holding Vehicle holding such Class B Ordinary Shares no longer complies with the principle that the weighted voting rights attached to a beneficiary’s shares must cease upon transfer to another person of the beneficial ownership of, or economic interest in, those shares or the control over the voting rights attached to them. Upon any sale, transfer, assignment or disposition of any Class B ordinary share by a holder thereof to any person other than the Co-Founders or Co-Founder affiliates, or upon a change of control of the ultimate beneficial ownership of any Class B ordinary share to any person other than the Co-Founders or Co-Founder Affiliates, such Class B ordinary share shall be automatically and immediately converted into one Class A ordinary share. Holders of Class A ordinary shares and Class B ordinary shares shall, at all times, vote together as one class on all matters submitted to a vote by the members at any general meeting of our company. Each Class A ordinary share shall be entitled to one vote on all matters subject to the vote at general meetings of our company, and each Class B ordinary share shall be entitled to ten votes on all matters subject to the vote at general meetings of our company. Share repurchase program In May 2022, the Board of directors of the Company authorized a share repurchase program under which the Company may repurchase up to US$1 billion of its ADSs and/or Class A ordinary shares in the open market at prevailing market prices, through privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations, over a 12-month period, subject to obtaining general mandate from shareholders. On August 12, 2022, general mandate was obtained from the shareholders during Annual General Meeting. As of and for the year ended December 31, 2022, the Company repurchased 41,707,914 Class A ordinary shares in the open market at prevailing market prices, which was classified to treasury shares. Total consideration paid for the purchases was US$187.3 million (RMB1,319.8 million). On December 8, 2022, the Company cancelled 35,246,628 Class A ordinary shares with a par value of US$0.00002 per share, which were repurchased during September and October 2022. On June 15, 2023, the Annual General Meeting approved to grant the board of directors a general unconditional mandate to purchase the Company’s own shares which covers the repurchases under the Extended Share Repurchase Program until the conclusion of the next AGM of the Company. On August 31, 2023, the Board of directors approved modifications to the existing share repurchase program, pursuant to which the repurchase authorization has been increased from US$1 billion of its Class A ordinary shares and/or ADSs to US$2 billion of its Class A ordinary shares and/or ADSs and extended until August 31, 2024. For the year ended December 31, 2023, the Company repurchased 141,064,215 Class A ordinary shares in the open market at prevailing market prices, and the total consideration paid for the purchases was US $723.2 million (RMB5,150.6 million). During the year ended December 31, 2023, the Company cancelled 123,459,369 Class A ordinary share with a par value of US$0.00002 per share, which were repurchased under the share repurchase program. As of December 31, 2023, 182,772,129 Class A ordinary shares have been purchased under the repurchase program with total consideration approximately US$910.5 million (RMB6,470.6 million). |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2023 | |
FAIR VALUE MEASUREMENT | |
FAIR VALUE MEASUREMENT | 21. FAIR VALUE MEASUREMENT The following table sets forth the financial instruments, measured at fair value, by level within the fair value hierarchy on recurring basis as of December 31, 2022 and 2023: Fair value measurement at reporting date using Quoted prices in active Significant Significant markets for other other identical observable unobservable December 31, assets inputs inputs 2022 (Level 1) (Level 2) (Level 3) RMB RMB RMB RMB (in thousands) Assets Fair value disclosure Short-term investments Short-term time deposits 3,911,410 — 3,911,410 — Held-to-maturity debt investments 3,571,060 — 3,571,060 — Long-term investments Long-term time deposits 11,064,516 — 11,064,516 — Held-to-maturity debt investments 138,485 — 138,485 — Fair value measurements on a recurring basis Short-term investments Equity investments at fair value with readily determinable fair value Listed equity securities 70,415 70,415 — — Wealth management products 26,491,683 — 23,492,290 2,999,393 Available-for-sale debt investments 1,380,668 — 1,380,668 — Long-term investments Equity investments without readily determinable fair value using NAV practical expedient (i) 91,005 Equity investments at fair value with readily determinable fair value 37,134 37,134 — — Investments accounted for at fair value 1,026,555 — 900,500 126,055 Available-for-sale debt investments 5,126,289 — 5,126,289 — Total 52,909,220 107,549 49,585,218 3,125,448 21. FAIR VALUE MEASUREMENT (CONTINUED) Fair value measurement at reporting date using Quoted prices in active Significant Significant markets for other other identical observable unobservable December 31, assets inputs inputs 2023 (Level 1) (Level 2) (Level 3) RMB RMB RMB RMB (in thousands) Assets Fair value disclosure Short-term investments Short-term time deposits 7,690,166 — 7,690,166 — Held-to-maturity debt investments 144,133 — 144,133 — Long-term investments — — — — Long-term time deposits 15,352,785 — 15,352,785 — Held-to-maturity debt investments 1,701,240 — 1,701,240 — Fair value measurements on a recurring basis Short-term investments Wealth management products 26,415,902 — 24,000,694 2,415,208 Long-term investments Equity investments without readily determinable fair value using NAV practical expedient (i) 86,240 Equity investments at fair value with readily determinable fair value 32,745 32,745 — — Investments accounted for at fair value 627,367 — 512,200 115,167 Available-for-sale debt investments 5,262,159 — 5,262,159 — Total 57,312,737 32,745 54,663,377 2,530,375 (i) Investments are measured at fair value using NAV as a practical expedient. These investments have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. The following table summarizes the activities related to fair value of the short-term wealth management products: Amounts RMB (in thousands) Balance at December 31, 2021 (Level 3) 2,289,646 Transfer from long-term investment 3,317,493 Change in fair value (i) (1,077) Exchange adjustment 197,924 Disposal (2,804,593) Balance at December 31, 2022 (Level 3) 2,999,393 Change in fair value (i) 136,907 Exchange adjustment 48,354 Disposal (769,446) Balance at December 31, 2023 (Level 3) 2,415,208 (i) Recognized as “Fair value changes in investments, net” on the consolidated statements of comprehensive income (loss). 21. FAIR VALUE MEASUREMENT (CONTINUED) The following table summarizes the activities related to long-term investments accounted for at fair value: Amounts RMB (in thousands) Balance at December 31, 2021 (Level 3) 3,583,898 Change in fair value (i) (283,214) Dividend Received (412) Investment Made 46,972 Exchange adjustment 132,304 Disposal (36,000) Transfer to short-term investment (3,317,493) Balance at December 31, 2022 (Level 3) 126,055 Change in fair value (i) 4,007 Disposal (14,895) Balance at December 31, 2023 (Level 3) 115,167 (i) Recognized as “Fair value changes in investments, net” on the consolidated statements of comprehensive income (loss). Assets Measured at Fair Value on a Non-Recurring Basis Investments without readily determinable fair value. The Group measures equity method investments at fair value on a non-recurring basis only if an impairment charge is recognized. For those equity investments without readily determinable fair value and accounted for other than under the equity method, the Group measures them at at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. If this measurement alternative is elected, changes in the carrying value of the equity investments will be required to be made whenever there are observable price changes in transactions for identical or similar investments of the same issuer. The implementation guidance notes that an entity should make a “reasonable effort” to identify price changes that are known or that can reasonably be known. As of December 31, 2022 and 2023, certain investments were assessed for impairment by considering factors, including but not limited to, the stage of development, the business plan, the financial condition, the sufficiency of funding and the operating performance of the investee companies. These investments were measured using unobservable inputs (Level 3) and written down from their respective carrying values to fair value,with impairment charges incurred and recorded in consolidated statements of comprehensive income (loss) for the years then ended. Non-financial assets. The Group’s non-financial assets, such as intangible assets, goodwill and property, plant and equipment, would be measured at fair value only if they were determined to be impaired. The Group reviews the long-lived assets and certain identifiable intangible assets other than goodwill for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Impairment loss for those assets were recognized based on the impairment test using discounted cash flow method. The impairment recognized on the intangible assets and long-lived assets based on management’s assessment amount to RMB14.3 million, RMB6.3 million and nil, for the years ended December 31, 2021, 2022 and 2023, respectively. 21. FAIR VALUE MEASUREMENT (CONTINUED) The Group has a policy to perform goodwill impairment testing at the reporting unit level on December 31 annually, and between annual tests whenever a triggering event occurs. When performing the quantitative impairment test at reporting unit level, the Group considers a number of factors including but not limited to expected future cash flows, growth rates, discount rates, and comparable multiples from publicly traded companies in the industry. The impairment recognized on goodwill based on management’s assessment amount to RMB732.4 million, RMB141.8 million and RMB93.4 million for the years ended December 31, 2021, 2022 and 2023, respectively. The fair value of reporting units was determined using Level 3 inputs. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 22. SEGMENT INFORMATION (a) Description of segments The Group’s organizational structure is based on a number of factors that the CODM uses to evaluate, view and run its business operations which include, but are not limited to, customer base, homogeneity of services and technology. The Group’s operating segments are based on this organizational structure and information reviewed by the Group’s CODM to evaluate the operating segment results. Prior to the Reorganization, the Group had one reportable segment. Concurrent with the Reorganization, effective from 2019, the Group changed its internal organizational structure and separated its businesses into three segments, which were existing home transaction services, new home transaction services and emerging and other services, in light of the significant growth in new home transaction services business and emerging and other services business. Later in the first quarter of 2020, the Group further updated the financial measures provided to the CODM. As a result of the acquisition of Shengdu, which was closed on April 20, 2022, the Group updated its internal organizational structure resulting in four segments, which were existing home transaction services, new home transaction services, home renovation and furnishing, and emerging and other services. In the second quarter of 2022, the Group updated the financial measures provided to the CODM. These changes in segment reporting align with the manner in which the Group’s CODM currently receives and uses financial information to allocate resources and evaluate the performance of reporting segments. These changes in segment presentation do not affect consolidated balance sheets, consolidated statements of comprehensive income (loss) or consolidated statements of cash flows. The Group retrospectively revised prior period segment information, to conform to current period presentation. The Group now operates its businesses in four segments: existing home transaction services, new home transaction services, home renovation and furnishing, and emerging and other services. The following summary describes the operations in each of the Group’s reportable segment: (1) Existing home transaction services: The existing home transaction segment provides services in existing home market include i) agency services to sales or leases of existing homes, either through acting as the principal agent or a participating agent in collaboration with the principal agents; ii) platform and franchise services to brokerage firms on Beike platform who provide agency services in existing home market; iii) Other transaction services, such as transaction closing service through the Group’s transaction center. (2) New home transaction services: The new home transaction business segment provides new home transaction services in new home market. New home transaction services refer to agency services provided to real estate developers to facilitate sales of new properties developed by the real estate developers to property buyers. The Group signs the new home transaction services contracts with the sales companies of the developers and then mobilizes all agents registered with the platform to fulfil such contracts. (3) Home renovation and furnishing: The home renovation and furnishing business segment provides a one-stop solution to give housing customers access to a comprehensive range of home renovation and furnishing, ranging from interior design, renovation, re-modeling, furnishing, supplies, to after-sales maintenance and repair. 22. SEGMENT INFORMATION (CONTINUED) (4) Emerging and other services: Emerging and other services include rental property management service business, financial service business and other newly developed businesses. Material costs, property leasing costs, commission and compensation costs include material costs related to home renovation and furnishing and compensation to agents, sales professionals or renovation workers who are the Group’s employees or contractors as well as split commission to brokerage firms who signs channel sale agency service agreements with the Group and property leasing costs related to rental property management service. Commission and compensation costs in existing home market are mainly to those who are the Group’s employees or contractors. Commissions and compensation costs in new home market are mainly to brokerage firms who sign channel sale agency service agreements with the Group. Commission and compensation costs in home renovation and furnishing market are mainly to renovation workers who are the Group’s employees or contractors. Material costs in home renovation and furnishing market are mainly to suppliers according to corresponding contracts. Property leasing costs related to rental property management service are mainly to property owners according to corresponding lease contracts. (b) Segments data The following tables present summarized information by segment: For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Net revenues: Existing home transaction services 31,947,953 24,123,703 27,954,135 New home transaction services 46,472,378 28,650,374 30,575,778 Home renovation and furnishing 197,452 5,046,627 10,850,497 Emerging and other services 2,134,656 2,848,075 8,396,522 Total 80,752,439 60,668,779 77,776,932 Material costs, property leasing costs, commission and compensation costs: Existing home transaction services (20,123,501) (14,510,838) (14,762,910) New home transaction services (37,525,240) (21,886,020) (22,455,253) Home renovation and furnishing (195,869) (3,562,068) (7,705,325) Emerging and other services (288,593) (1,956,468) (6,380,385) Total (58,133,203) (41,915,394) (51,303,873) Contribution: Existing home transaction services 11,824,452 9,612,865 13,191,225 New home transaction services 8,947,138 6,764,354 8,120,525 Home renovation and furnishing 1,583 1,484,559 3,145,172 Emerging and other services 1,846,063 891,607 2,016,137 Total 22,619,236 18,753,385 26,473,059 As substantially all of the Group’s long-lived assets are located in the PRC and substantially all of the Group’s revenue of reportable segments are derived from China based on the geographical locations where services and products are provided to customers, no geographical information is presented. |
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2023 | |
NET INCOME (LOSS) PER SHARE | |
NET INCOME (LOSS) PER SHARE | 23. NET INCOME (LOSS) PER SHARE Basic net income (loss) per share is the amount of net income (loss) attributable to each share of ordinary shares outstanding during the reporting period. Diluted net income (loss) per share is the amount of net income (loss) attributable to each share of ordinary shares outstanding during the reporting period adjusted to include the effect of potentially dilutive ordinary shares. 41,217,159 non-vested share options and 31,140 non-vested RSUs on a weighted average basis were excluded from the calculation of diluted net loss per share for the year ended December 31, 2021 because of their anti-dilutive effect. 4,437,739 non-vested RSUs and 24,445,441 non-vested restricted shares on a weighted average basis were excluded from the calculation of diluted net loss per share for the year ended December 31, 2022 because of their anti-dilutive effect. The following table sets forth the computation of basic and diluted net income (loss) per share for the years and periods indicated: For the Year Ended December 31, 2021 2022 2023 (RMB in thousands, except for share and per share data) Numerator: Net income (loss) attributable to KE Holdings Inc. (524,129) (1,386,074) 5,883,224 Net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders (524,129) (1,386,074) 5,883,224 Denominator: Denominator for basic net income (loss) per share-weighted average ordinary shares outstanding 3,549,121,628 3,569,179,079 3,521,379,938 Adjustments for dilutive share options — — 9,338,346 Adjustments for dilutive restricted shares — — 72,916,553 Adjustments for dilutive restricted share units — — 8,018,183 Denominator for diluted net income (loss) per share-weighted average ordinary shares outstanding 3,549,121,628 3,569,179,079 3,611,653,020 Net income (loss) per share attributable to ordinary shareholders: —Basic (0.15) (0.39) 1.67 —Diluted (0.15) (0.39) 1.63 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 24. RELATED PARTY TRANSACTIONS Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Parties are also considered to be related if they are subject to common control. Related parties may be individuals or corporate entities. During the year ended December 31, 2021, 2022 and 2023, other than disclosed elsewhere, the Group had the following material related party transactions. Related Party Relationship with the Group Ziroom Inc. and its subsidiaries (“Ziroom”) A group which management or operating policies significantly influenced by a director of the Company Yuanjing Mingde (Beijing) Holding Group Co., Ltd. and its subsidiaries (“Yuanjing Mingde”) A group which management or operating policies significantly influenced by a director of the Company Vanlian (Beijing) Decoration Co., Ltd. (“Vanlian”) An affiliate company of the Group IFM Investments Limited (“IFM”) An affiliate company of the Group Shengdu An affiliate company of the Group Shanghai Xinhewan Industrial Development Co., Ltd (“Xinhewan”) An affiliate company of the Group Brokerage firms Firms that the Group has significant influence in Tencent Principal owner of the Group Suofeiya Shengdu Home (Zhejiang) Co., Ltd. (“Suofeiya Shengdu”) An affiliate company of the Group Xinhewan was an affiliate company of the Group. On January 9, 2023, the Group terminated the investment in Xinhewan and Xinhewan was no longer a related party thereafter. Vanlian was an affiliate company of the Group. On January 5, 2022, the Group completed the acquisition of Vanlian and Vanlian became a wholly owned subsidiary of the Group. Transactions between the Group and Vanlian before January 4, 2022 are disclosed as related party transactions. On April 20, 2022, the Group completed the acquisition of Shengdu and Shengdu become a consolidated subsidiary of the Group. Suofeiya Shengdu was considered as a related party of the Group from April 20, 2022. Transactions between the Group and Suofeiya Shengdu from the period of April 20, 2022 to December 31, 2023 are disclosed as related party transactions. (i) For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Revenues from related parties Commission support services provided to brokerage firms 423,448 441,471 606,062 Platform services provided to IFM 69,717 65,258 91,825 Online marketing services provided to Ziroom 104,888 90,262 74,961 Agency services provided to Ziroom 53,150 34,197 51,118 Platform and franchise services provided to brokerage firms 8,512 13,011 27,184 Agency services provided to Yuanjing Mingde 4,491 5,183 6,901 Technical services provided to Tencent 1,608 745 — Agency services and other services provided to Shengdu 7,565 8,700 — Agency services, online marketing services and home renovation services provided to Vanlian 174,511 — — Others — 5,376 7,596 Total 847,890 664,203 865,647 Commissoin support services provided to brokerage firms refer to the service fee collected by the Group after the existing home transactions. 24. RELATED PARTY TRANSACTIONS (CONTINUED) Platform services refer to the fees the Group charged for using the Group’s ACN and SaaS system. Franchise services refer to the fees the Group charges for using the Group’s Deyou brand. Online marketing services mainly refer to the technical support, marketing and promotion services provided to the above related parties to promote their own services and products. Agency services refer to services to facilitate home sales or leases. A certain percentage of commission was recognised upon the completion of contracts between referred customers and the related parties stated above. For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Services provided by related parties Referral services from brokerage firms 831,591 673,972 853,139 Online marketing and technical services from Tencent 193,866 159,564 122,452 Services from Ziroom 7,942 8,131 10,661 Rental and property management services from Yuanjing Mingde 30,609 27,379 21,882 Referral services from IFM 10,672 5,590 6,339 Others 1,322 1,122 35,917 Total 1,076,002 875,758 1,050,390 Referral services provided by related parties mainly refer to customer referrals from related parties. Online marketing services mainly refer to the cloud, marketing and promotion services provided by Tencent. Services from Ziroom including referral, cleaning, maintenance, sales and marketing services provided by Ziroom. Rental services mainly include the office rental from Yuanjing Mingde, which was charged based on fair market price. For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Purchase of home furnishing goods from related parties Purchase of home furnishing goods from Suofeiya Shengdu — 1,595 144,119 Total — 1,595 144,119 For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Other income Interest income from loans provided to Xinhewan — 4,301 — Interest income and debt settlement expense related to loans provided to IFM 2,209 (753) 5,076 Interest income from loans provided to others 1,450 2,406 1,911 Total 3,659 5,954 6,987 24. RELATED PARTY TRANSACTIONS (CONTINUED) For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Operating lease cost related to lease with related parties Operating lease cost related to lease with Yuanjing Mingde 18,358 18,092 12,133 Operating lease cost related to lease with Ziroom 100 175 72 Operating lease cost related to lease with brokerage firms 49 — 35 Total 18,507 18,267 12,240 For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Operating lease income from related parties Operating lease income from Suofeiya Shengdu — 2,219 3,046 Total — 2,219 3,046 (ii) As of December 31, 2022 2023 RMB RMB (in thousands) Amounts due from and prepayments to related parties Ziroom 345,212 350,047 IFM 7,400 3,128 Yuanjing Mingde 6,806 7,668 Tencent 2,258 2,542 Brokerage firms 19,551 20,713 Others 24,729 35,172 Total 405,956 419,270 Amounts due to related parties Tencent 34,723 35,002 Ziroom 33,530 35,282 IFM 27,091 31,299 Yuanjing Mingde 6,983 17,819 Brokerage firms 315,977 302,246 Others 7,381 8,702 Total 425,685 430,350 24. RELATED PARTY TRANSACTIONS (CONTINUED) As of December 31, 2023, all amounts due from and prepayments to related parties and amounts due to related parties were trade in nature. As of December 31, 2022 2023 RMB RMB (in thousands) Loan receivables from related parties Short‑term loans to IFM 20,000 15,000 Short-term loans to others (a) 15,846 13,030 Current portion of long-term loans to Xinhewan 14,617 — Long-term loans to Xinhewan 17,934 — Long-term loans to IFM — 27,000 Long-term loans to others (a) 5,000 — Total 73,397 55,030 (a) The balance of loans include loans the Group provided to entities that the Group has significant influence in. As of December 31, 2023, all loan receivables from related parties were non-trade in nature. In relation to the loans provided to the related parties stated above, the Group charged the related parties based on fair market interest rate, and cash flows resulted from the loans were presented within investing activities in the consolidated statements of cash flows. As of December 31, 2022 2023 RMB RMB (in thousands) Operating Leases Store leases from Yuanjing Mingde 77,625 69,391 Administrative office leases from Ziroom 72 — Administrative office leases from brokerage firms — 48 Total operating lease assets 77,697 69,439 Operating lease liabilities, current from Yuanjing Mingde 4,284 4,509 Operating lease liabilities, current from Ziroom 26 — Operating lease liabilities, current from brokerage firms — 41 Operating lease liabilities, non-current from Yuanjing Mingde 75,449 70,940 Operating lease liabilities, non-current from brokerage firms — 7 Total operating lease liabilities 79,759 75,497 (iii) On September 5, 2022 Beike Zhaofang (Beijing) Technology CO., Ltd., a wholly owned subsidiary of the Company, entered into a donation agreement, or the Donation Agreement, with one of our principal shareholder, or the Donator. According to the Donation Agreement, the Donator agreed to donate RMB30 million free of charge during a three-year period to set up a scholarship for Huaqiao Academy run by the Group, or the Huaqiao Scholarship. The Group agreed to manage the Huaqiao Scholarship on behalf of the Donator by solely acting on its instructions. The Huaqiao Scholarship shall only be used to subsidize outstanding students of Huaqiao Academy, who will use the Huaqiao Scholarship to pay the tuition payable to Huaqiao Academy. The Huaqiao Scholarship shall be managed and accounted independently, and shall not be used for any other purpose unless instructed by the Donator, who is responsible for overseeing the use of the donated fund. As of December 31, 2023, accumulated donation payment of RMB20 million was made by the Donator, out of which, RMB10 million payment was made during the year ended December 31, 2023. As of December 31, 2023, RMB2.4 million Huaqiao Scholarship has not been awarded. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 25. COMMITMENTS AND CONTINGENCIES (a) Commitments As of December 31, 2023 RMB (in thousands) Operating leases commitments(i) 427,799 Purchase of land use right(ii) 154,575 Investment commitments(iii) 105,027 Purchase of property and equipment 3,793 Purchase of services 1,818 Total 693,012 Amounts RMB (in thousands) 2024 373,394 2025 115,740 2026 90,821 2027 50,309 Thereafter 62,748 Total 693,012 (i) Operating leases commitments represent the Group’s obligations for leasing premises. (ii) The commitment to purchase land use right is the outstanding consideration for the land use right purchased by Shengdu in 2023. (iii) Investment commitments obligations primarily relate to capital contributions obligation under certain arrangements. (b) Contingencies From time to time, the Group is involved in claims and legal proceedings that arise in the ordinary course of business. Based on currently available information, management does not believe that the ultimate outcome of the unresolved matters, individually and in the aggregate, are likely to have a material adverse effect on the Group’s financial position, results of operations or cash flows. However, litigations are subject to inherent uncertainties and the Group’s view of these matters may change in the future. |
DIVIDENDS
DIVIDENDS | 12 Months Ended |
Dec. 31, 2023 | |
DIVIDENDS | |
DIVIDENDS | 26. DIVIDENDS No dividend was declared by the Company during the years ended December 31, 2021 and 2022. In August 2023, the Group’s Board of Directors approved a special cash dividend of US$0.057 per ordinary share, or US$0.171 per ADS, to holders of ordinary shares and holders of ADSs of record as of the close of business on September 15, 2023, Beijing/Hong Kong Time and New York Time, respectively, payable in U.S. dollars. As a result, US$198.5 million dividend has been paid out during 2023, which funded by surplus cash on the Company’s balance sheet. |
STATUTORY RESERVES AND RESTRICT
STATUTORY RESERVES AND RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS | 27. STATUTORY RESERVES AND RESTRICTED NET ASSETS Pursuant to laws applicable to entities incorporated in the PRC, the Group’s subsidiaries in the PRC must make appropriations from after-tax profit to non-distributable reserve funds. These reserve funds include one or more of the following: (i) a general reserve, (ii) an enterprise expansion fund and (iii) a staff bonus and welfare fund. Subject to certain cumulative limits, the general reserve fund requires an annual appropriation of 10% of after tax profit (as determined under accounting principles generally accepted in the PRC at each year-end) until the accumulative amount of such reserve fund reaches 50% of a company’s registered capital, the other fund appropriations are at the subsidiaries’ discretion. These reserve funds can only be used for specific purposes of enterprise expansion and staff bonus and welfare and are not distributable as cash dividends. During the years ended December 31, 2021, 2022 and 2023, appropriations to the statutory reserve have been made by the Group, which was RMB91.1 million, RMB176.9 million and RMB150.3 million, respectively. In addition, due to restrictions on the distribution of share capital from the Group’s PRC subsidiaries and also as a result of these entities’ unreserved accumulated losses, total restrictions placed on the distribution of the Group’s PRC subsidiaries’ net assets was RMB21.2 billion as of December 31, 2023. Cash transfers from the Company’s PRC subsidiaries to their parent companies outside of China are subject to PRC government control of currency conversion. Shortages in the availability of foreign currency may temporarily restrict the ability of the PRC subsidiaries and consolidated affiliated entities to remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated obligations. The Company performed a test on the restricted net assets of consolidated subsidiaries in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3), “General Notes to Financial Statements” and concluded that it was applicable for the Company to disclose the financial statements for the parent company. For the purpose of presenting parent only financial information, the Company records its investments in its subsidiaries under the equity method of accounting. Such investments are presented on the separate condensed balance sheets of the Company as “Investment in subsidiaries” and “Net assets of VIEs” and the income (loss) of the subsidiaries is presented as “Share of income (loss) of subsidiaries” and “Income (loss) of the VIEs”. Certain information and footnote disclosures generally included in financial statements prepared in accordance with U.S. GAAP have been condensed and omitted. The Company became parent company of the Group upon the completion of the Reorganization on December 28, 2018. The following disclosures present the financial positions of the parent company as of December 31, 2022 and 2023, the operation results for the years ended December 31, 2021, 2022 and 2023, and the statements of cash flows for the years ended December 31, 2021, 2022 and 2023. The Company did not have significant capital and other commitments, long-term obligations, or guarantees as of December 31, 2022 and 2023. 27. STATUTORY RESERVES AND RESTRICTED NET ASSETS (CONTINUED) Condensed balance sheets of the parent company As of December 31, 2022 2023 RMB RMB (in thousands, except for share and per share data) ASSETS Current assets: Cash and cash equivalents 12,818 9,414 Short-term investments 7,372,995 537,847 Amounts due from subsidiaries and VIEs 1,226,906 688,776 Prepayments, receivables and other assets 13,927 2,003 Non ‑ current assets: Investment in subsidiaries 56,064,739 67,805,473 Net assets of the VIEs 3,716,231 3,061,116 Long-term investments, net 516,873 — TOTAL ASSETS 68,924,489 72,104,629 LIABILITIES Current liabilities Accrued expenses and other current liabilities 4,129 4,805 TOTAL LIABILITIES 4,129 4,805 SHAREHOLDERS’ EQUITY Ordinary shares (US$0.00002 par value; 25,000,000,000 ordinary shares authorized, comprising of 24,114,698,720 Class A ordinary shares and 885,301,280 Class B ordinary shares. 3,601,547,279 Class A ordinary shares issued and 3,561,632,933 (1) (1) issued outstanding 487 475 Treasury shares (225,329) (866,198) Additional paid‑in capital 80,302,956 77,583,054 Accumulated other comprehensive income (loss) (412,721) 244,302 Accumulated deficit (10,745,033) (4,861,809) Total shareholders’ equity 68,920,360 72,099,824 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 68,924,489 72,104,629 (1) Excluding the Class A ordinary shares registered in the name of the depositary bank for future issuance of ADSs upon the exercise or vesting of awards granted under our share incentive plans and the Class A ordinary shares repurchased but not cancelled in the form of ADSs. 27. STATUTORY RESERVES AND RESTRICTED NET ASSETS (CONTINUED) Condensed statements of comprehensive income (loss) For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Sales and marketing expenses (10,227) — — General and administrative expenses (82,109) (140,148) (45,781) Research and development expenses (57) — — Interest income, net 3,035 745 52,460 Share of income (loss) of subsidiaries (696,144) (1,436,950) 5,618,262 Income (loss) of the VIEs (52,436) 97,036 194,884 Fair value changes through earnings on investments, net 183,991 4,770 45,235 Foreign currency exchange loss (3,968) (61,317) (30,089) Other income, net 133,786 149,790 48,253 Income (loss) before income tax expense (524,129) (1,386,074) 5,883,224 Income tax expense — — — Net income (loss) (524,129) (1,386,074) 5,883,224 Net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders (524,129) (1,386,074) 5,883,224 Net income (loss) (524,129) (1,386,074) 5,883,224 Other comprehensive income (loss) Currency translation adjustments (841,214) 2,602,071 574,223 Unrealized gains (losses) on available-for-sale investments, net of reclassification 35,578 (375,069) 82,800 Total comprehensive income (loss) (1,329,765) 840,928 6,540,247 Total comprehensive income (loss) attributable to KE Holdings Inc.’s ordinary shareholders (1,329,765) 840,928 6,540,247 Condensed statements of cash flows For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Net cash provided by (used in) operating activities (10,302) (58,875) 62,063 Net cash provided by (used in) investing activities (3,183,233) 1,348,740 6,933,723 Net cash provided by (used in) financing activities 7 (1,319,793) (6,576,333) Effect of exchange rate changes on cash and cash equivalents (12,822) (12,489) (422,857) Net decrease in cash and cash equivalents (3,206,350) (42,417) (3,404) Cash and cash equivalents at the beginning of the year 3,261,585 55,235 12,818 Cash and cash equivalents at the end of the year 55,235 12,818 9,414 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2023 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 28. SUBSEQUENT EVENTS During the period from January 1, 2024 to April 26, 2024, the Company repurchased a total of 23,429,242 ADSs (representing 70,287,726 Class A ordinary shares) on the NYSE at an aggregate consideration of approximately US$323.7 million. During the period from January 1, 2024 to April 26, 2024, a total of 15,345,247 ADSs (representing 46,035,741 Class A ordinary shares) have been cancelled, which were repurchased by the Company in November 2023, December 2023 and January 2024. Concurrent with the share cancellation, a total of 1,859,585 Class B ordinary shares has been converted into Class A ordinary shares on a one-to-one ratio, of which Mr. PENG Yongdong, through Ever Orient International Limited, a corporation wholly-controlled by him, converted 1,296,886 Class B ordinary shares and Mr. SHAN Yigang, through De Chang Trust, a discretionary trust established by him (as the settlor), converted 562,699 Class B ordinary shares. The Company announced the Board of Director approved a final cash dividend (the “Dividend”) of US$0.117 per ordinary share, or US$0.351 per ADS, to holders of ordinary shares and holders of ADSs of record as of the close of business on April 5, 2024, Beijing/ Hong Kong Time and New York Time, respectively, payable in U.S. dollars. The aggregate amount of the Dividend paid was approximately US$0.4 billion, which was funded by surplus cash on the Company’s balance sheet. The Company purchased a 40-year land use right in October 2023 at a total consideration of RMB309 million. 50% of the total consideration amounting of RMB154.6 million has been paid in 2023 with the rest 50% has been paid on January 16, 2024. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Impact of newly adopted accounting pronouncement | 2.1 (a) Impact of newly adopted accounting pronouncement In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination as if it had originated the contracts. The standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. We adopted the ASU on January 1, 2023 and will apply the guidance prospectively for future acquisitions. |
Recently issued accounting pronouncements not yet adopted | 2.1 (b) Recently issued accounting pronouncements not yet adopted In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting-Improvements to Reportable Segment Disclosures”, which adds a requirement for public entities to disclose its significant segment expense categories and amounts for each reportable segment for all periods presented. This information is required to be disclosed at both interim and annual periods. In addition, this ASU requires a public entity to disclose the title and position of the Chief Operating Decision Maker (“CODM”) in the consolidated financial statements. Public entities are also required to disclose how the CODM uses each reported measure of segment profit or loss to assess performance and allocate resources to the segments. The ASU is effective for public entities for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024. The Group is assessing the impact of adopting this standard on its financial statements. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes: Improvements to Income Tax Disclosures”, which enhances the disaggregation of income tax disclosures. The ASU requires public entities on an annual basis to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold equal to or greater than 5%. Public entities are required to provide an explanation of certain rate reconciling items if not otherwise evident, such as the nature, causes and judgement used to categorize the item. The ASU also requires disclosure of income taxes paid (net of refund received) detailed by federal, state/local and foreign, and amounts paid to individual jurisdictions that are equal or greater than 5% of total income taxes paid. The ASU is effective for public entities for fiscal years beginning after December 15, 2024 and for interim periods for fiscal years beginning after December 15, 2025. The Group is assessing the impact of adopting this standard on its financial statements. |
Basis of preparation | 2.2 Basis of preparation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Significant accounting policies followed by the Group in the preparation of its accompanying consolidated financial statements are summarized below. Change in method of accounting for capitalization of costs to obtain a contract as incurred On January 1, 2022, the Group elected to change its method of accounting for contract cost capitalization. In prior years, the Group used the practical expedient under ASC 606 to expense the costs to obtain a contract as incurred when the expected amortization period is one year or less. Starting in this year, the group recognizes as an asset the incremental costs of obtaining a contract with customer if the Group expects to recover those costs. An asset related to an obligation satisfied over time is amortized using a method consistent with the method used to measure progress and recognize revenue over the contract term. An asset related to an obligation satisfied at point in time is expensed upon the transfer of control of the goods or services to which the asset relates. The new method of accounting is considered preferable as the amortization of the contract cost is consistent with the pattern of the newly acquired home renovation services’ revenue recognition. The 2021 financial statements have not been adjusted as the accumulated effect of the change to the accounting principal on this periods presented is immaterial. The following financial statement line items for fiscal years 2022 were affected by the change in accounting principle. The consolidated balance sheet as of December 31, 2022 was as followed: As of December 31, 2022 As computed As reported under the under the new practical accounting Effect of expedient method change RMB RMB RMB (in thousands) Assets: Prepayments, receivables, other current and non-current assets 4,059,390 4,057,843 (1,547) Total assets 109,348,894 109,347,347 (1,547) Liabilities and shareholders’ equity Accumulated deficit (11,404,303) (11,405,850) (1,547) Total liabilities and shareholders’ equity 109,348,894 109,347,347 (1,547) The consolidated statement of comprehensive income (loss) for the year ended December 31, 2022 was as followed: For the Year Ended December 31, 2022 As computed As reported under the under the new practical accounting Effect of expedient method change RMB RMB RMB (in thousands) Sales and marketing expenses (4,571,835) (4,573,382) (1,547) Total operating expenses (14,612,106) (14,613,653) (1,547) Net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders (1,384,527) (1,386,074) (1,547) Net income (loss) per share attributable to ordinary shareholders - Basic (0.39) (0.39) — - (0.39) (0.39) — |
Basis of consolidation | 2.3 Basis of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, the consolidated VIEs (inclusive of the VIEs’ subsidiaries) for which the Company is the ultimate primary beneficiary. A subsidiary is an entity in which the Company, directly or indirectly, controls more than one half of the voting power, has the power to appoint or remove the majority of the members of the Board of directors, to cast a majority of votes at the meeting of the Board of directors or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders. A consolidated VIE is an entity in which the Company, or its subsidiary, through contractual arrangements, has the power to direct the activities that most significantly impact the entity’s economic performance, bears the risks of and enjoys the rewards normally associated with ownership of the entity, and therefore the Company or its subsidiaries is the primary beneficiary of the entity. All transactions and balances between the Company, its subsidiaries, consolidated VIEs (inclusive of VIEs’ subsidiaries) have been eliminated upon consolidation. The results of subsidiaries and VIEs acquired or disposed of during the year are recorded in the consolidated statements of comprehensive income (loss) from the effective dates of acquisition or up to the effective dates of disposal, as appropriate. |
Use of estimates | 2.4 Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reporting periods in the consolidated financial statements and accompanying notes. Significant accounting estimates reflected in the Group’s consolidated financial statements include, but are not limited to (i) revenue recognition, (ii) provision for credit losses of accounts receivable, financing receivables and other receivables, (iii) assessment for impairment of long-lived assets, intangible assets and goodwill, (iv) valuation and recognition of share-based compensation expenses, (v) useful lives of property, plant and equipment and intangible assets, (vi) fair value of short-term and long-term investments, and derivative instruments, (vii) incremental borrowing rate used to account for leases, (viii) valuation of intangible asset arising from business combination transaction, (ix) provision for income tax and valuation allowance for deferred tax assets, (x) liabilities related to employee welfare benefits, and (xi) lower of cost and net realizable value of inventories. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. |
Foreign currencies and foreign currency translation | 2.5 Foreign currencies and foreign currency translation The Group’s reporting currency is Renminbi (“RMB”). The functional currency of the Company and its subsidiaries incorporated in the Cayman Islands, BVI and Hong Kong is United States dollars (“US$”) and the functional currency of the PRC entities in the Group is RMB. The Company’s subsidiaries with operations in other jurisdictions generally use their respective local currencies as their functional currencies. Transactions denominated in other than the functional currencies are re-measured into the functional currency of the entity at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at the balance sheet dates. Net gains and losses resulting from foreign exchange transactions are included in foreign currency exchange gain (loss) in the consolidated statements of comprehensive income (loss). The financial statements of the Group are translated from the functional currencies into RMB. Assets and liabilities denominated in foreign currencies are translated into RMB using the applicable exchange rates at the balance sheet date. Equity accounts other than earnings generated in current period are translated into RMB at the appropriate historical rates. Revenues, expenses, gain and loss are translated into RMB using the periodic average exchange rates. Translation differences are recorded currency translation adjustments as a component of other comprehensive income (loss) in the consolidated statements of comprehensive income (loss). |
Convenience translation | 2.6 Convenience translation Translations of the consolidated balance sheets, the consolidated statements of comprehensive income (loss) and the consolidated statements of cash flows from RMB into US$ as of and for the year ended December 31, 2023 are solely for the convenience of the readers and were calculated at the rate of US$1.00=RMB7.0999, representing the index rates stipulated by the Federal Reserve Board using the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board on December 29, 2023. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on December 31, 2023, or at any other rate. |
Fair value measurements | 2.7 Fair value measurements Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurement for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Accounting guidance establishes three levels of inputs that may be used to measure fair value: Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Other inputs that are directly or indirectly observable in the marketplace. Level 3—Unobservable inputs which are supported by little or no market activity. Accounting guidance also describes three main approaches to measure the fair value of assets and liabilities: 1) market approach; 2) income approach and 3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. When available, the Group uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Group will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates. |
Cash and cash equivalents | 2.8 Cash and cash equivalents Cash and cash equivalents consist of cash on hand, demand deposits and highly liquid investments placed with banks or other financial institutions, which are unrestricted as to withdrawal or use, and which have original maturities less than three months and are readily convertible to known amount of cash. |
Restricted cash | 2.9 Restricted cash Cash that is legally or contractually restricted as to withdrawal or for use or pledged as security is reported separately on the face of the consolidated balance sheets. In accordance with Accounting Standards Codification (“ASC”) 230, the amounts generally described as restricted cash and restricted cash equivalents are included in the total cash, cash equivalents and restricted cash balances in the consolidated statements of cash flows. The Group’s restricted cash is mainly comprised of 1) cash received from the property buyers but not yet paid to the sellers through the Group’s online payment platform, which is placed with banks in escrow accounts; 2) security deposits for the Group’s agency, guarantee and financing services; 3) borrowings from commercial banks for limited purpose; and 4) other miscellaneous restricted cash. |
Short-term investments | 2.10 The Group holds debt classified securities, and accounts for such investments in accordance with ASC Topic 320, Investments—Debt Securities (“ASC 320”). The Group classifies the short-term investments in debt as held-to-maturity, trading or available-for-sale, whose classification determines the respective accounting methods stipulated by ASC 320. Dividend and interest income, including amortization of the premium and discount arising at acquisition, for all categories of investments in securities are included in earnings. Any realized gains or losses on the sale of the short-term investments are determined on a specific identification method, and such gains and losses are reflected in earnings during the period in which gains or losses are realized. Held-to-maturity debt investments include debt instruments issued by private companies for which the Group has the positive intent and ability to hold those securities to maturity, and time deposits represent time deposits placed with banks with maturities more than three months. The Group account for the held-to-maturity debt investments at amortized cost less allowance for credit losses. The allowance for credit losses of the held-to-maturity debt investments reflects the Group’s estimated expected losses over the contractual lives of the held-to-maturity debt investments and is charged to “Other income, net” in the consolidated statements of comprehensive income (loss). Estimated allowances for credit losses are determined by considering reasonable and supportable forecasts of future economic conditions in addition to information about past events and current conditions. As of December 31, 2022 and 2023, the allowance for credit losses provided for the held-to-maturity debt investments held by the Group was insignificant. Debt securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities, in accordance with ASC 320. Unrealized holding gains and losses for trading securities are included in earnings. Debt investments not classified as trading or as held-to-maturity are classified as available-for-sale debt investments, which are reported at fair value, with unrealized gains and losses recorded in “Accumulated other comprehensive income (loss)” on the consolidated balance sheets. Investments with expected maturity of over a year are classified as long-term investments. Investments with maturity date within one year will be reclassified to short-term investments. |
Accounts receivable | 2.11 Accounts receivable represents those receivables derived in the ordinary course of business, net of allowance for credit losses, including receivable from real estate property sellers, buyers and agents from the platform. Starting from January 1, 2020, the Group adopted ASC 326 and assesses the accounts receivable and establishes a reserve to reflect the net amount expected to be collected. The allowance is management’s estimate of expected credit losses after considering historical collection activity, the nature of the receivable, the current business environment and forecasts that may affect the customers’ ability to pay. Management estimated the allowance by segmenting accounts receivable based on certain credit risk characteristics and determining an expected loss rate for each segmentation based on historical loss experience adjusted for judgments about the effects of relevant observable data including current and future economic conditions. Practical Expedients The Group has used the following practical expedients as allowed under ASC 326: The Group use, as a practical expedient, the fair value of the collateral at the reporting date when recording the net carrying amount of the asset and determining the allowance for credit losses for a financial asset for which the repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty based on the entity’s assessment as of the reporting date (collateral-dependent financial asset). The allowance for credit losses and corresponding receivables were written off when they are determined to be uncollectible. |
Financing receivables | 2.12 Financing receivables The Group generates financing receivables by providing personal credit loans to property buyers, tenants and other individual borrowers. The Group has the intent and the ability to hold such financing receivables for the foreseeable future or until maturity or payoff. Financing receivables from consolidated Trusts The Group has entered into arrangements with consolidated trusts (“Trusts”), pursuant to which the Group invested in the financing receivables using funds from the consolidated Trusts. The Trusts are administered by third party trust companies, which act as the trustees, with funds contributed by the Group and/or other third party investors for the purposes of providing returns to the beneficiary of the Trusts. The Group has power to direct the activities of the Trusts and has the obligation to absorb losses or the right to receive benefits from the Trusts that could potentially be significant to the Trusts. As a result, the Trusts are considered consolidated VIEs of the Group under ASC 810—“Consolidation”. Therefore the loans funded by the consolidated Trusts are recorded as the Group’s financing receivables. The proceeds received from the third party investors are recognized as funding debts. Cash received via consolidated Trusts that has not yet been distributed is recorded as restricted cash. Financing receivables from micro-loan platforms The Group also offers micro loans to borrowers via micro loan platforms. The loans offered mainly include: 1) installment loans for home renovation and furnishing to property owners; 2) loans provided to external small property agents; 3) loans provided to other individuals. As the Group undertakes substantially all the risks and rewards, the micro loans are recognized as financing receivables on the consolidated balance sheets. Measurement of financing receivables Financing receivables are measured at amortized cost and reported on the consolidated balance sheets at outstanding principal adjusted for any write offs and the allowance for credit losses. Allowance for credit losses Starting from January 1, 2020, the Group adopted ASU No. 2016-13 and estimated the allowance for credit losses to reflect the Group’s estimated expected losses. The Group assesses the allowance for credit losses, mainly based on the past collection experience as well as consideration of current and future economic conditions and changes in the Group’s customer collection trends. The provision for credit losses represents an estimate of the losses expected to be incurred from the Group’s financing receivable portfolio. The Group uses projected risk parameters (e.g. probability of default and loss given default (severity)) to estimate the allowance of different segmentations, driven primarily by business type, on a collective basis. This projected risk parameters are primarily based upon historical loss experience adjusted for judgments about the effects of relevant observable data including current and future economic conditions as well as external historical loan performance trends, recovery rates, credit quality indicators. The allowance for credit losses and corresponding receivables were written off when they are determined to be uncollectible. The Group considers available information in quarterly assessments of the adequacy of the allowance. The Group believes the estimates, including any qualitative adjustments, are reasonable and have considered reasonably available information about past events, current conditions, and reasonable and supportable forecasts of future events and economic conditions. Accrued interest receivable Accrued interest income on financing receivables is calculated based on the effective interest rate of the loan and recorded as interest income as earned. The outstanding principal balance of loans which has not been collected prior to the contractual maturity date is considered to be past due. When a financing receivable reaches 1 day past due, it is placed on non-accrual status, and the Group stops accruing interest of the financing receivables as of such date. The accrued but unpaid interest as of such date is not reversed. The Group assesses the collectability of accrued interest together with the unpaid principal amount and provides reserves if warranted interest income for non-accrual financing receivables is recognized on a cash basis. Cash receipt of non-accrual financing receivables would be first applied to any unpaid principal, late payment fees, if any, before recognizing interest income. The Group does not resume accrual of interest after a loan has been placed on non-accrual basis. For the years ended December 31, 2021, 2022 and 2023, the amount of interest income recognized on non-accrual financial assets was insignificant. |
Derivative instruments | 2.13 Derivative instruments Derivative instruments are measured at fair value and recognized as either assets or liabilities on the consolidated balance sheets in either current or non-current other assets or accrued expenses and other current liabilities or other long-term liabilities depending upon maturity and commitment. Changes in the fair value of derivatives are either recognized periodically in the consolidated income (loss) statements or in other comprehensive income (loss) depending on the use of the derivatives and whether they qualify for hedge accounting. The Group selectively uses financial instruments to manage market risk associated with exposure to fluctuations in interest rates and foreign currency rates. These financial exposures are monitored and managed by the Group as an integral part of its risk management program. The Group does not engage in derivative instruments for speculative or trading purposes. The Group’s derivative instruments are not qualified for hedge accounting, thus changes in fair value are recognized in fair value changes in investments, net in the consolidated statements of comprehensive income (loss). The cash flows of derivative financial instruments are classified in the same category as the cash flows from the items subject to the economic hedging relationships. The estimated fair value of the derivatives is determined based on relevant market information. These estimates are calculated with reference to the market rates using industry standard valuation techniques. |
Inventories | 2.14 Inventories Inventories, which mainly consist of materials for home renovation business and furniture, electronic and home appliances products available for sale, are valued at the lower of moving weighted average cost or net realizable value. As of December 31, 2023, no adjustment is deemed necessary to reduce inventory to net realizable value due to the rapid turnover and high utilization of inventory. Inventory is included in the prepayments, receivables and other assets line item in the Group’s consolidated balance sheets. |
Property, plant and equipment, net | 2.15 Property, plant and equipment, net Property, plant and equipment are stated at cost less accumulated depreciation and impairment, if any. Depreciation is computed based upon the usage of the asset, which is approximated using a straight-line method over the estimated useful lives of the assets, which range as follows: · Office building 20 - 40 years · Vehicles 4 years · Computer equipment 3 - 5 years · Furniture and office equipment 3 - 5 years · Leasehold improvement lesser of the term of the lease or the estimated useful lives of the assets Expenditures for maintenance and repairs are expensed as incurred. The gain or loss on the disposal of property, plant and equipment is the difference between the net sales proceeds and the carrying amount of the relevant assets and is recognized in the consolidated statements of comprehensive income (loss). |
Intangible assets, net | 2.16 Intangible assets, net Intangible assets mainly include those acquired through business combinations and purchased intangible assets. Intangible assets acquired through business combinations are recognized as assets separate from goodwill if they satisfy either the “contractual-legal” or “separability” criterion. Intangible assets arising from business combinations are recognized and measured at fair value upon acquisition. Purchased intangible assets are initially recognized and measured at cost upon acquisition. Separately identifiable intangible assets that have determinable lives continue to be amortized over their estimated useful lives based upon the usage of the asset, which is approximated using a straight-line method as follows: · Software 3 · Trademarks and domain names 3 · Customer relationships 3 · Non‑competition agreements 3 · Advertising resources 5 years · Licenses 6 The Group considers the factors listed in ASC 350-30-35-3 when determining the useful life of an intangible asset, such as the expected use of the asset by the entity, and any legal, regulatory, or contractual provisions that may limit the useful life. The useful life of software is mainly determined based on its expected use and contractual provisions. The useful life of trademarks and domain names is determined based on the expected use and legal provisions. The useful life of licenses, which are mainly licenses for franchise business, is determined on the expected cooperation period with franchisees. Separately identifiable intangible assets and other long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amounts of such assets may not be recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of any impairment loss for identifiable intangible assets is based on the amounts by which the carrying amounts of the assets exceed the fair values of the assets. |
Goodwill | 2.17 Goodwill represents the excess of the purchase price over the fair value of the identifiable assets and liabilities acquired in a business combination. Goodwill is not depreciated or amortized but is tested for impairment on an annual basis, and between annual tests if events or circumstances indicate that the goodwill may be impaired. The Group adopted ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” in 2019. In accordance with the FASB, a company first has the option to assess qualitative factors to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount. In the qualitative assessment, the Group considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. If the Group decides, as a result of its qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test is mandatory. Otherwise, no further testing is required. The quantitative impairment test consists of a comparison of the fair value of each reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss equal to the difference between the fair value and the carrying value is recognized. Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets and liabilities to reporting units, assigning goodwill to reporting units, and determining the fair value of each reporting unit. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. |
Long-term investments | 2.18 Long-term investments (i) In accordance with ASC 323 — “Investment — Equity Method and Joint Ventures”, the Group applies the equity method of accounting to equity investments, in common stock or in substance common stock, over which it has significant influence but does not own a majority equity interests or otherwise control. An investment in in-substance common stock is an investment that has risk and reward characteristics that are substantially similar to that entity’s common stock. The Group considers subordination, risks and rewards of ownership and obligation to transfer value when determining whether an investment in an entity is substantially similar to one in that entity’s common stock. Under the equity method, the Group initially records its investment at cost. The difference between the cost of the equity investment and the amount of the underlying equity in the net assets of the equity investee is recognized as equity method goodwill or as an intangible asset as appropriate. The Group subsequently adjusts the carrying amount of the investment to recognize the Group’s proportionate share of each equity investee’s net income or loss into the consolidated statements of comprehensive income (loss) after the date of acquisition. When the Group’s share of losses in the equity investee equals or exceeds its interest in the equity investee, the Group does not recognize further losses, unless the Group has incurred obligations or made payments or guarantees on behalf of the equity investee, or the Group holds other investments in the equity investee. The Group continually reviews its investment in equity investees under the equity method to determine whether a decline in fair value to below the carrying value is other than temporary. The primary factors the Group considers in its determination are the duration and severity of the decline in fair value, the financial condition, operating performance and the prospects of the equity investee, and other company specific information such as recent financing rounds. The fair value determination, particularly for investments in early stage privately held companies, requires significant judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investments and the determination of whether any identified impairment is other than temporary. If any impairment is considered other than temporary, the Group writes down the asset to its fair value and takes the corresponding charge to the consolidated statements of comprehensive income (loss). (ii) The Group adopted ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU No. 2016-01”) for all periods presented. Securities with readily determinable fair value are measured at fair value. Equity securities accounted for at fair value include investments in i) marketable equity securities, which are publicly traded stock and ii) unlisted companies, for which the Group measures at fair value on a recurring basis. Pursuant to ASC 321, for equity investments measured at fair value with changes in fair value recorded in earnings, the Group does not assess whether those securities are impaired. For investments in convertible notes and loans receivable with maturities of over one year, the Group elected the fair value option. The fair value option permits the irrevocable election on an instrument by instrument basis at initial recognition of an asset or liability or upon an event that gives rise to a new basis of accounting for that instrument. The investments accounted for under the fair value option are carried at fair value with realized or unrealized gains and losses recorded in the consolidated statements of comprehensive income (loss). For wealth management products with variable interest rates referenced to performance of underlying assets and with original maturities greater than one year, the Group elected the fair value method at the date of initial recognition and carries these investments at fair value in accordance with ASC 825 — “Financial Instruments”. Changes in the fair value of these investments are reflected on the consolidated statements of comprehensive income (loss) as fair value changes in investments, net. Fair value is estimated based on quoted prices of similar products provided by financial institutions at the end of each reporting period. The Group classifies the valuation techniques that use these inputs as Level 2 of fair value measurements. (iii) Private equity funds pursue various investment strategies. Investments in private equity funds generally are not redeemable due to the closed ended nature of these funds. These private equity funds, over which the Group does not have the ability to exercise significant influence, are accounted for under the existing practical expedient in ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”) to estimate fair value using the net asset value per share (or its equivalent) of the investment (“NAV practical expedient”). The Group measures investments in equity securities, other than equity method investments, at fair value through earnings. For those investments without readily determinable fair value and do not qualify for NAV practical expedient, the Group may elect to record these investments at cost, less impairment, and plus or minus subsequent adjustments for observable price changes, in accordance with ASU No. 2016-01. Under this measurement alternative, changes in the carrying value of the equity investment will be required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. For those equity investments that the Group elects to use the measurement alternative, the Group makes a qualitative assessment of whether the investment is impaired at each reporting date. If a qualitative assessment indicates that the investment is impaired, the Group has to estimate the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the Group recognizes an impairment loss in net income (loss) equal to the difference between the carrying value and fair value. (iv) Long-term time deposits represent time deposits placed with banks with maturities more than one year. The Group account for the long-term time deposits at amortized cost less allowance for credit losses. (v) Long-term held-to-maturity debt investments include debt instruments issued by private companies with maturities of greater than one year and for which the Group has the positive intent and ability to hold those securities to maturity. The Group account for the held-to-maturity debt investments at amortized cost less allowance for credit losses. The allowance for credit losses of the held-to-maturity debt investments reflects the Group’s estimated expected losses over the contractual lives of the held-to-maturity debt investments and is charged to “Other income, net” in the consolidated statements of comprehensive income (loss). Estimated allowances for credit losses are determined by considering reasonable and supportable forecasts of future economic conditions in addition to information about past events and current conditions. As of December 31, 2022 and 2023, the allowance for credit losses provided for the held-to-maturity debt investments held by the Group was insignificant. (vi) Available-for-sale debt investments are debt instruments or preferred shares issued by banks and other financial institutions that are redeemable at the issuer’s option, which are measured at fair value. Available-for-sale debt investments that are redeemable at the issuer’s option have no contractual maturity date. Interest income is recognized in earnings. All other changes in the carrying amount of these debt investments are recognized in other comprehensive income (loss). The allowance for credit losses of on available-for-sale debt securities is accounted for in accordance with ASC 326, Financial Instruments - Credit Losses (“ASC 326”). The Group adopted ASC 326 on January 1, 2020, on a modified retrospective basis. Under ASC 326, at each reporting period, available-for-sale debt securities are evaluated at the individual security level to determine whether there is a decline in the fair value below its amortized cost basis (an impairment). In circumstances where the Group intend to sell, or are more likely than not required to sell, the security before it recovers its amortized cost basis, the difference between fair value and amortized cost is recognized as a loss in the consolidated statements of operations, with a corresponding write-down of the security’s amortized cost. In circumstances where neither condition exists, we then evaluate whether a decline is due to credit-related factors. The factors considered in determining whether a credit loss exists can include the extent to which fair value is less than the amortized cost basis, changes in the credit quality of the underlying loan obligors, credit ratings actions, as well as other factors. To determine the portion of a decline in fair value that is credit-related, we compare the present value of the expected cash flows of the security discounted at the security’s effective interest rate to the amortized cost basis of the security. A credit-related impairment is limited to the difference between fair value and amortized cost, and recognized as an allowance for credit loss on the consolidated balance sheet with a corresponding adjustment to net income (loss). Any remaining decline in fair value that is non-credit related is recognized in other comprehensive income (loss), net of tax. Improvements in expected cash flows due to improvements in credit are recognized through reversal of the credit loss and corresponding reduction in the allowance for credit loss. |
Leases | 2.19 Leases (a) A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. For contracts entered into or modified on or after the date of initial application of ASC 842 or arising from business combinations, the Group assesses whether a contract is or contains a lease based on the definition under ASC 842 at inception, modification date or acquisition date, as appropriate. Such contract will not be reassessed unless the terms and conditions of the contract are subsequently changed. (b) The Group mainly leases sales stores (including brokerage sales stores, transaction closing service centers and home renovation and furnishing service stores), administrative offices, entrusted houses and land use rights from property owners. These are all classified as operating leases. Rental contracts for the sales stores and offices are typically made for fixed periods ranging generally from few months to ten years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. Land use rights are amortized on a straight-line basis over the shorter of the estimated useful life, generally from 44 The Group elected not to separate non-lease components from lease components. Therefore, it will account for lease and non-lease components as a single lease component when there is only one vendor in the lease contract. The majority of the Group’s leases have fixed payments schedules, with certain leases including additional payments based on future contract performance. For leases with additional payments based on future contract performance, no amount is included in the calculation of the lease liability or corresponding asset because of the uncertainty for future contract performance and payments. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Under a lease, the lessees are required to recognize right-of-use assets and lease liabilities. Right-of-use assets represent the Group’s right to use an underlying asset for the lease term and are recognized as the amount of the lease liabilities, adjusted for lease incentives received. Lease liabilities represent the Group’s obligation to make lease payments arising from the lease and are recognized at the present value of the future lease payments at the lease commencement date. As the interest rate implicit in most of the Group’s leases is not readily determinable, the Group uses the incremental borrowing rate (“IBR”) to determine the present value of the future lease payments. The IBR is a hypothetical rate based on the Group’s understanding of what its credit rating would be to borrow and resulting interest the Group would pay to borrow an amount equal to the lease payments in a similar economic environment over the lease term with a similar security. Any lease with a term of 12 months or less is considered short-term. As permitted by ASC 842, short-term leases are excluded from the right-of-use asset and lease liabilities accounts on the consolidated balance sheets. Consistent with all other operating leases, short-term lease expense is recorded on a straight-line basis over the lease term. (c) The Group as a lessor The Group generates revenues from rental property management services as a lessor. The Group sources houses from homeowners, subleases the houses or separate rooms to tenants, and provides operational management services such as maintenance. Leases for which the Group is a lessor are classified as operating leases. The terms of the agreements with tenants are generally one year , and rental income from operating leases is recognised in emerging and other services revenue on a straight-line basis over the term of the relevant lease. When the Group serves as an intermediate lessor, it accounts for the head lease and the sublease as two separate contracts. The sublease is classified by reference to the underlying asset arising from the head lease. |
Borrowings | 2.20 Borrowings Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective interest method. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. |
Treasury shares | 2.21 The Group accounts for treasury shares using the cost method. Under this method, the cost incurred to purchase the shares is recorded in “Treasury shares” on the consolidated balance sheets. At retirement of the treasury share, the ordinary shares account is charged only for the aggregate par value of the shares. The excess of the acquisition cost of treasury share over the aggregate par value is allocated between additional paid-in capital and retained earnings. |
Statutory reserves | 2.22 Statutory reserves In accordance with the laws applicable to the Foreign Investment Enterprises (“FIEs”) established in the PRC, the Group’s subsidiaries registered as WFOEs have to make appropriations from their annual after tax profits as determined under generally accepted accounting principles in the PRC (“PRC GAAP”) to reserve funds including the general reserve fund, enterprise expansion fund and staff bonus and welfare fund. The appropriation to the general reserve fund must be at least 10% of the annual after tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the general reserve fund has reached 50% of the registered capital of the company. Appropriations to the enterprise expansion fund and staff bonus and welfare fund are made at the respective company’s discretion. In addition, in accordance with the PRC Company Laws, the consolidated VIEs (inclusive of VIEs’ subsidiaries) incorporated in PRC are required to make appropriations on annual basis from their after tax profits to non distributable reserve funds including statutory surplus fund and discretionary surplus fund. The appropriation to the statutory surplus fund must be 10% of the after tax profits as determined under PRC GAAP. Appropriation is not required if the statutory surplus fund has reached 50% of the registered capital of the company. Appropriation to the discretionary surplus fund is made at the discretion of the respective company. The use of the general reserve fund, enterprise expansion fund, statutory surplus fund and discretionary surplus fund is restricted to offsetting of losses or increasing of the registered capital of the respective company. The staff bonus and welfare fund is a liability in nature and is restricted to fund payments of special bonus to employees and for the collective welfare of all employees. None of these reserves is allowed to be transferred to the company in terms of cash dividends, loans or advances, nor can they be distributed except under liquidation. For the years ended December 31, 2021, 2022 and 2023, profit appropriation to general reserve fund and statutory surplus fund for the Group’s entities incorporated in the PRC was approximately RMB91.1 million, RMB176.9 million and RMB150.3 million, respectively. No appropriation to other reserve funds was made for any of the periods presented. |
Revenue recognition | 2.23 Revenue recognition The Group applied ASC 606 - “Revenue from Contracts with Customers” for all periods presented. According to ASC 606, revenues from contracts with customers are recognized when control of the promised goods or services is transferred to the Group’s customers in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services, after considering reductions by estimates for refund allowances, price concession, discount and Value Added Tax (“VAT”). Existing home transaction services The Group generates revenue from existing home transaction services primarily by earning commissions from housing customers for sales or leases transactions facilitated by the Group’s own Lianjia brand where the Group acts as the principal agent, or splits of commissions with other brokerage firms acting as the principal agents in cooperation with the Group to complete transactions. In these transactions, the principal agent signs a housing agency service contract with housing customers and is responsible for fulfilling the obligations to provide the agency services under the contract. The Beike platform requires platform agreements to be signed by all brokerage firms registered with the platform. The platform agreements establish a cooperative relationship between the principal agent and all participating brokerage firms, which allows the principal agent to combine and control services provided by the participating agent. The platform agreements also set the principal agent’s role and responsibility for overall agency services and a fee allocation structure for various standard cooperating roles of agency services. For each successful transaction completed through the platform, the platform will calculate commissions for each participating agent in accordance with the platform agreements and settle them through the platform’s payment system. When the Group signs the housing agency service contracts with housing customers and splits commissions with other brokerage firms who cooperate with the Group to complete the housing transactions in accordance with the platform agreement, the Group is considered to be the principal agent as it has the right to determine the service price and to define the service performance obligations, it has control over services provided and it is fully responsible for fulfilling the agency services pursuant to the housing agency service contracts it signed with the housing customers. Accordingly, the Group accounts for the commissions from these agency service contracts on a gross basis, with any commissions paid to other brokerage firms recorded as a cost of revenue. Brokerage services and transaction closing services identified in the housing sales agency services contracts are considered to be separate performance obligations. Therefore the consideration is allocated to brokerage services and transaction closing services based on the relative stand-alone selling prices. The Group recognizes them as revenues when the services are provided. When other brokerage firms on Beike platform sign the housing agency service contracts with housing customers and split commissions with the Group in accordance with platform agreement for cooperation services by the Group to complete the housing transactions, the Group is considered as a participating agent who provides services to the principal agents as the Group is not the primary obligor for the agency service contract and does not have the right to determine the service price. Accordingly, the Group accounts for the commissions from these agency service contracts on a net basis. For agency commissions earned by the Group, either as the principal agent or participating agent, the Group recognizes commissions as revenues when the performance obligations are satisfied at the time the housing customers sign the housing sale and purchase agreements or the lease agreements, after deducting estimated potential refunds due to a terminated transaction. The Group also generates revenue from existing home transaction services by earning (i) platform service fees from real estate brokerage firms on the Beike platform as a percentage of the transaction commissions earned on the platform for using the Group’s ACN and SaaS systems; (ii) franchise fees from brokerage firms as a percentage of the transaction commissions earned under the Group’s franchise brands such as the Deyou brand; and (iii) other service fees for various services offered by Beike platform, such as transaction closing service through the Group’s transaction center. For platform service and franchise fees, the Group recognizes the estimated fees that it expects to receive as revenues when the Group obtains the right to payment at the time the housing customers sign the housing sale and purchase agreements or the lease agreements. For other service fees, the Group recognizes them as revenues when the services are provided. New home transaction services The Group generates revenues from new home transaction services principally by earning sales commissions from real estate developers for new home sales facilitated by the Group. The Group signs new home agency service contracts with real estate developers in where the terms and conditions for sales commission earned are defined. The Group recognizes sales commissions as revenues when the confirmations are received from real estate developers that terms and conditions for commissions earned are met or upon cash receipts of service fees if collection of the commissions are not considered probable. The Group subcontracts with other brokerage firms to fulfil its agency services contracts with the real estate developers and splits commissions with these brokerage firms. The Group is considered as the principal agent for the agency service contracts signed with the developers as it has the right to determine the service price and to define the service performance obligations, it has control over the services provided by the other brokerage firms and it is fully responsible for fulfilling agency services pursuant to the new home agency service contracts signed with the real estate developers. Accordingly, the Group accounts for such agency service contracts on a gross basis and recognizes split commissions to collaborating brokerage firms as cost of revenues. Home renovation and furnishing The Group provides interior renovation services to its customers. Such services are recognized as a performance obligation satisfied over time as the customer controls the house that is being enhanced by the renovation services provided by the Group. Revenue is recognized over time by reference to the progress towards complete satisfaction of the relevant performance obligation using input method, measured based on the proportion of contract costs incurred for work performed to date relative to the estimated total contract costs. For sale of furniture, electronic and home appliances products, revenue is recognized when delivery and acceptance occurs, which is defined as receipt by the Group of either a delivery note when delivery has been completed or a customer confirmation that the installation process is completed. Emerging and other services The Group generates revenues from emerging and other services such as rental property management services, financial services and other newly developed businesses. Rental property management services revenues are primarily derived from the leasing operation services for homeowners and tenants. The Group sources houses from homeowners and leases the rooms to tenants, as well as provides operational management services such as maintenance. The terms of the agreements with tenants are generally one year. See the details of rental income recognition policy in Note 2.19 Leases - (b) The Group as a lessor. Service fees for financial services and other newly developed businesses are generally recognized as revenues when services are provided. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to customers. For certain services, customers are required to pay before the services are delivered. The Group recognizes contract assets or contract liabilities in the consolidated balance sheets, depending on the relationship between the Group’s performance and the customer’s payment. The Group classifies its right to consideration in exchange for services transferred to a customer as either a receivable or a contract asset. A receivable is a right to consideration that is unconditional as compared to a contract asset which is a right to consideration that is conditional upon factors other than the passage of time. The Group recognizes an accounts receivable in its consolidated balance sheets when it performs a service in advance of receiving consideration and if it has the unconditional right to receive consideration, and a contract asset if not yet has the unconditional right to receive consideration. Contract liabilities are recognized if the Group receives consideration in advance of performance, which is mainly in relation to the existing home transaction services, new home transaction services, home renovation and furnishing services and emerging and other services. RMB2,749.4 million of revenues recognized in the year ended December 31, 2023 was included in the balance of contract liabilities as of December 31, 2022. As of December 31, 2023, the increase in the balance of contract liabilities was primarily due to more consideration received from home renovation and furnishing services and entrust lease services as a result of increase in business scale compared to the prior year. Due to the nature of services the Group provided, most of the Group’s contracts with an original expected length less than one year. Therefore, the Group expects to recognize a significant majority of the contract liabilities balance as of December 31, 2023 as revenue over the next 12 months. The contract liabilities of the Group as of December 31, 2022 and 2023 are listed in the table below. As of December 31, 2022 2023 RMB RMB (in thousands) Contract liabilities: Existing home transaction services 174,472 178,856 New home transaction services 1,119,534 941,326 Home renovation and furnishing 1,488,294 2,363,394 Emerging and other services 477,969 1,181,625 Total 3,260,269 4,665,201 Incremental Costs of Obtaining a Contract Incremental costs of obtaining a contract with a customer is recognized as an asset in “Prepaid expenses and other current assets” if the Group expects to recover those costs. Incremental costs of obtaining a contract include only those costs the Group incurs to obtain a contract that it would not have incurred if the contract had not been obtained. Incremental costs of obtaining a contract mainly include sales commissions to sales personnel under interior renovation services. Contract cost assets are amortized on the basis consistent with the pattern of the transfer of services to which the assets relate. As of December 31, 2023, the balance of capitalized costs of obtaining contracts with customers was RMB338.8 million. For the years ended December 31, 2021, 2022 and 2023, the Group recognized amortization of nil, RMB258.5 million and RMB587.2 million respectively as “Sales and marketing expenses”. Capitalized costs of obtaining contracts are periodically analyzed for impairment. There were no impairment losses relating to the capitalized costs of obtaining contracts for all periods presented. Practical Expedients The Group has used the following practical expedients as allowed under ASC 606: The effect of a significant financing component has not been adjusted for contracts when the Group expects, at contract inception, that the period between when the Group transfers a promised good or service to the customer will be one year or less. |
Advertising expenses | 2.24 Advertising expenses are generally paid to the third parties for online traffic acquisition and offline advertising services such as television, outdoor and inner-building channels. Advertising expenses are expensed as sales and marketing expenses when the services are received. For the years ended December 31, 2021, 2022 and 2023, advertising expenses recognized in the consolidated statements of comprehensive income (loss) were RMB2,038.4 million, RMB1,340.2 million and RMB2,030.8 million, respectively. |
Share-based compensation | 2.25 Share-based compensation The Group grants share options, restricted shares and restricted share units (“RSUs”) to its employees, directors and consultants with performance conditions and service conditions, and accounts for these share-based awards in accordance with ASC 718-“Compensation-Stock Compensation”. Employees’ share-based awards are classified as equity awards and are measured at the grant date fair value of the awards and recognized as expenses a) immediately at grant date if no vesting conditions are required, or b) using a straight-line method over the requisite service period, which is the vesting period. Share options granted contained both a service condition and required completion of an IPO. The IPO was completed on August 17, 2020 and options for which the service condition had been met became vested. The remaining options will vest as the service conditions are met. All transactions in which goods or services are received in exchange for equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. The Group uses the binomial option pricing model to determine the fair value of stock options. The determination of the fair value of stock options is affected by the fair value of ordinary shares as well as assumptions regarding a number of complex and subjective variables, including the expected share price volatility, actual and projected employee share option exercise behavior, risk free interest rates and expected dividends. Upon the completion of the IPO, the estimated fair value of ordinary shares was based on the Company’s share price. The fair value of the restricted shares and RSUs granted subsequent to IPO are determined with reference to the fair value of the underlying shares. In accordance with ASU No. 2016-09, the Group has chosen to account for forfeitures when they occur. |
Income taxes | 2.26 Income taxes Income taxes Current income tax is recorded in accordance with the laws of the relevant tax jurisdictions. The Group applies the assets and liabilities method of income taxes in accordance of ASC 740—“Income Taxes”, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are provided based on temporary differences arising between the tax bases of assets and liabilities and financial statements, using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. Deferred tax assets are recognized to the extent that such assets are more-likely-than-not to be realized. In making such a determination, the Group considers all positive and negative evidence, including results of recent operations and expected reversals of taxable income. Valuation allowances are established to offset deferred tax assets if it is considered more-likely-than-not that the amount of the deferred tax assets will not be realized. Uncertain tax positions The Group accounts for uncertainty in income taxes recognized in the consolidated financial statements by applying the two-step approach to determine the amount of the benefit to be recorded. Under the two-step approach, the first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more-likely-than-not that the position will be sustained, including resolution of related appeals or litigation processes. If the tax positions meet the “more-likely-than-not” recognition threshold, the second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon settlement. The Group classifies interest and penalties related to income tax matters, if any, as income tax expense. The Group did not have any significant interest or penalties associated with tax positions for the years ended December 31, 2021, 2022 and 2023. The Group did not have any significant unrecognized uncertain tax positions for the years ended December 31, 2021, 2022 and 2023. |
Employee benefits | 2.27 Employee benefits Full time employees of the Group in mainland China are entitled to staff welfare benefits including pension, work related injury benefits, maternity insurances, medical insurances, unemployment benefits and housing fund plans through a PRC government mandated defined contribution plan. Chinese labor regulations require that the Group makes payments to the government for these benefits based on a certain percentage of the employees’ salaries, up to a maximum amount specified by the local government. The Group has no legal obligation for the benefits beyond making the required contributions. Historically, the contributions made by the Group for employees might have been insufficient under the PRC laws and regulations, for which the Group made provisions based on its best estimates considering general administrative practice, historical precedent cases, legal advice and other factors. The provisions made are to be reversed if a) the potential exposures that the provisions were made for do not occur for a period of time and b) the Group believes that the probability that such exposures would materialize in the future is remote based on most recent developments. The balances of the provisions are included in employee compensation and welfare payable. The net impact of additions and reversals of the provisions was an increase /(decrease) in employee welfare benefit expenses of RMB805.0 million, RMB621.0 million, RMB(1,598.4) million for the years ended December 31,2021, 2022 and 2023, respectively. Currently, the Group is implementing a remediation plan to reduce the exposure of non-compliance of relevant law and regulations for employee welfare benefits. The total amounts of such employee welfare benefit expenses, including the provision’s net impact, were approximately RMB3.4 billion, RMB3.0 billion, RMB1.2 billion, for the years ended December 31, 2021, 2022 and 2023 respectively. |
Research and development expenses | 2.28 Research and development expenses Research and development expenses consist primarily of personnel-related compensation expenses, including share-based compensation for employees in engineering, design, product and platform development, depreciation of property, plant and equipment utilized by research and development functions, and bandwidth and server related costs incurred by research and development functions. The Group expenses all research and development expenses as incurred. |
Net income (loss) per share | 2.29 Net income (loss) per share Basic net income (loss) per share is computed by dividing net income (loss) attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted net income (loss) per share is calculated by dividing net income (loss) attributable to ordinary shareholders as adjusted for the effect of income allocation to holders of participating preferred shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares consist of deemed issued shares and options to purchase ordinary shares (using the treasury stock method), unvested restricted shares and unvested RSUs. Ordinary equivalent shares are not included in the denominator of the diluted net income (loss) per share calculation when inclusion of such shares would be anti-dilutive, such as in a period in which a net loss is recorded. |
Comprehensive income (loss) | 2.30 Comprehensive income (loss) is defined to include all changes in equity (deficit) of the Group during a period arising from transactions and other events and circumstances excluding transactions resulting from investments by shareholders and distributions to shareholders. Comprehensive income (loss) includes net income (loss), currency translation adjustments and unrealized gains(losses) on available-for-sale investments, net of reclassification. |
Related parties | 2.31 Related parties Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or significant influence, such as a family member or relative, shareholder, or a related corporation. |
Segment reporting | 2.32 Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker (“CODM”). The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as a management committee including chief executive officer, chief financial officer and two chief operational officers. The Group operates in four operating segments: (i) Existing home transaction services; (ii) New home transaction services; (iii) Home renovation and furnishing and (iv) Emerging and other services, and the segment information is set out in Note 22. |
Contingencies | 2.33 Contingencies In the normal course of business, the Group is subject to contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters. An accrual for a loss contingency is recognized if it is probable that a liability has been incurred and the amount of liability can be reasonably estimated. If a potential loss is not probable, but reasonably possible, or is probable but the amount of liability cannot be reasonably estimated, then the nature of contingent liability, together with an estimate of the range of the reasonably possible loss, if determinable and material, is disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of guarantee would be disclosed. |
Government grants | 2.34 Government grants Government grants are recognized as income in other income, net or as a reduction of specific costs and expenses for which the grants are intended to compensate. Such amounts are recognized in the consolidated statements of the comprehensive income (loss) upon receipt when all conditions attached to the grants have been fulfilled. For the years ended December 31, 2021, 2022 and 2023, the Group recognized government grants of approximately RMB1,060 million, RMB668 million and RMB762 million, respectively, in the consolidated statements of comprehensive income (loss). |
Business combinations and noncontrolling interests | 2.35 Business combinations and non-controlling interests The Group accounts for its business combinations using the acquisition method of accounting in accordance with ASC 805 — “Business Combinations”. The cost of an acquisition is measured as the aggregate of the acquisition date fair value of the assets transferred to the sellers, liabilities incurred by the Group and equity instruments issued by the Group. Transaction costs directly attributable to the acquisition are expensed as incurred. Identifiable assets acquired and liabilities assumed are measured separately at their fair values as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of (i) the total costs of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated statements of comprehensive income (loss). During the measurement period, which can be up to one year from the acquisition date, the Group may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Subsequent to the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any further adjustments are recorded in the consolidated statements of comprehensive income (loss). In a business combination achieved in stages, the Group re-measures the previously held equity interest in the acquiree immediately before obtaining control at its acquisition date fair value and the re-measurement gain or loss, if any, is recognized in the consolidated statements of comprehensive income (loss). |
Concentration and risks | 2.36 Concentration and risks Concentration of customers and suppliers There are no customers or suppliers from whom revenues or purchases individually represent greater than 10% of the total net revenues or the total purchases of the Group for the years ended December 31, 2021, 2022 and 2023. Concentration of credit risk Assets that potentially subject the Group to significant concentrations of credit risk primarily consist of cash and cash equivalents, restricted cash, accounts receivable, other receivables, short-term investments, long-term investments and financing receivables. As of December 31, 2022 and 2023, all of the Group’s cash and cash equivalents, restricted cash and short-term investments were held by major financial institutions located in the PRC, Hong Kong, the USA and Australia, which the management believes are of high credit quality. The Group’s total cash and cash equivalents, restricted cash, and short-term investments held at five financial institutions in mainland China representing 24%, 16%, 11%, 11% and 10% of the Group’s total cash and cash equivalents, restricted cash, and short-term investments as of December 31, 2023, respectively. On May 1, 2015, China’s new Deposit Insurance Regulation came into effect, pursuant to which banking financial institutions, such as commercial banks, established in China are required to purchase deposit insurance for deposits in RMB and in foreign currency placed with them. This Deposit Insurance Regulation would not be effective in providing complete protection for the Group’s accounts, as its aggregate deposits are much higher than the compensation limit. However, the Group believes that the risk of failure of any of these PRC banks is remote. Bank failure is uncommon in China and the Group believes that those Chinese banks that hold the Group’s cash and cash equivalents, restricted cash and short-term investments are financially sound based on public available information. Accounts receivable and other receivables are typically unsecured and are mainly derived from the ordinary course of business in the PRC. The risk with respect to these financial instruments is mitigated by credit evaluations the Group performs on its customers and its ongoing monitoring processes of outstanding balances. The risk with respect to the financing receivables and off-balance sheet guarantees is mitigated by credit evaluations the Group performs on its borrowers and the Group’s ongoing monitoring controls for the outstanding balances. As of December 31, 2022 and 2023, only one customer’s total receivable amounting to RMB788 million and RMB380 million is considered to subject to concentration credit risk. Individually assessed accounts receivable and other receivable are measured for credit loss based on fair value of the collateral, less estimated transaction costs, if the accounts receivable is collateral-dependent. As of December 31, 2023, a portion of accounts receivable and other receivable due from real estate developers is secured by a commercial properties as collateral. For the year ended December 31, 2023, RMB174 million and RMB227 million provision has been provided against accounts receivable and other receivable due to decrease in net realizable values of the collateral, which attribute to the current downturn of commercial real estate market. The expected credit loss rates for accounts receivable and contract assets are 33.4% and 34.6% as of December 31, 2022 and 2023, respectively. The expected credit loss rates for financing receivables are 17.3% and 8.3% as of December 31, 2022 and 2023, respectively. The expected credit loss rates for other receivables (included in prepayments, receivables and other assets) are 8.2% and 14.3% as of December 31, 2022 and 2023, respectively. The expected credit loss of other financial assets subject to the impairment requirements of ASC 326 was immaterial. Currency convertibility risk The PRC government imposes controls on the convertibility of RMB into foreign currencies. The Group’s cash and cash equivalents, restricted cash and short-term investments denominated in RMB that are subject to such government controls amounted to RMB47.0 billion and RMB51.2 billion as of December 31, 2022 and 2023, respectively. The value of RMB is subject to changes in the central government policies and to international economic and political developments affecting supply and demand in the PRC foreign exchange trading system market. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People’s Bank of China (the “PBOC”). Remittances in currencies other than RMB by the Group in the PRC must be processed through PBOC or other Chinese foreign exchange regulatory bodies which require certain supporting documentation in order to process the remittance. Foreign currency exchange rate risk In July 2005, the PRC government changed its decades-old policy of pegging the value of the RMB to the US$, and the RMB appreciated more than 20% against the US$ over the following three years. Between July 2008 and June 2010, this appreciation halted and the exchange rate between the RMB and the US$ remained within a narrow band. Since June 2010, the RMB has fluctuated against the US$, at times significantly and unpredictably. The depreciation of the RMB against the US$ was approximately 2.9% for the year ended December 31, 2023. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the US$ in the future. |
ORGANIZATION (Tables)
ORGANIZATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ORGANIZATION | |
Schedule of major subsidiaries and consolidated VIEs (inclusive of the VIEs' subsidiaries) | Date of Percentage of incorporation or Place of direct or indirect Name acquisition incorporation economic ownership Subsidiaries Beike Group (Cayman) Limited August 6, 2018 Cayman Islands 100 % Beike Finance Holdings (Cayman) Limited August 14, 2018 Cayman Islands 100 % Sharehome HK International Limited December 16, 2016 Hong Kong 100 % Beike Kestone Holdings (Hong Kong) Limited August 13, 2018 Hong Kong 100 % Beike (Tianjin) Investment Co., Ltd. September 29, 2018 PRC 100 % Beihan(Tianjin) Technology Co., Ltd. November 27, 2019 PRC 100 % Lianjia (Tianjin) Enterprise Management Co., Ltd. August 13, 2018 PRC 100 % Beijing Lianjia Zhidi Real Estate Brokerage Co., Ltd. July 25, 2005 PRC 100 % Beijing Fangyuan Real Estate Consulting Services Co., Ltd. October 24, 2016 PRC 100 % Beijing Gaoce Real Estate Brokerage Co., Ltd. December 27, 2011 PRC 100 % Beijing Lianjia Gaoce Real Estate Brokerage Co., Ltd. September 20, 2016 PRC 100 % Deyou Real Estate Agency Co., Ltd. September 5, 2002 PRC 100 % Shanghai Xiaoheng Internet Technology Co., Ltd. October 30, 2017 PRC 100 % Shanghai Deyou Property Consulting Co., Ltd. April 16, 2014 PRC 100 % Sichuan Lianjia Real Estate Brokerage Co., Ltd. December 30, 2009 PRC 100 % Ningbo Fangjianghu Internet Technology Co., Ltd. July 17, 2018 PRC 100 % Tianjin Haibei Information Technology Co., Ltd. September 14, 2018 PRC 100 % Beike Zhaofang (Beijing) Technology Co., Ltd. August 3, 2015 PRC 100 % Beike Zhaofang Technology Co., Ltd. November 21, 2017 PRC 100 % Beike Technology Co., Ltd. June 28, 2017 PRC 100 % Shanghai Haibi Technology Co., Ltd. October 25, 2018 PRC 100 % Deyou (Tianjin) Real Estate Brokerage Service Co., Ltd. October 16, 2017 PRC 100 % Shanghai Huibeiju Technology Co., Ltd. October 27, 2022 PRC 100 % Shanghai Chenhaibei Internet Technology Co., Ltd. January 16, 2020 PRC 100 % Beijing Beiwoo Decoration Co., Ltd. January 5, 2022 PRC 100 % Beike Meijia Supply Chain Management (Zhejiang) Co., Ltd. December 29, 2022 PRC 100 % Shengdu Home Renovation Co., Ltd. April 20, 2022 PRC 100 % Beijing Meichen Information Consulting Co., Ltd. September 6, 2016 PRC 100 % Shanghai Shengyi Investment Management Co., Ltd. December 25, 2018 PRC 100 % Beijing Lianjia Rongsheng Management Consulting Co., Ltd. August 9, 2016 PRC 100 % Beijing Xinfu Home Rental Co., Ltd. September 5, 2013 PRC 100 % Tianjin Haibei Technology Services Co., Ltd. July 14, 2017 PRC 100 % Consolidated VIEs Beijing Lianjia Real Estate Brokerage Co., Ltd. (“Beijing Lianjia”) (i) September 30, 2001 PRC 100 % Beijing Yiju Taihe Technology Co., Ltd. (“Yiju Taihe”) July 23, 2010 PRC 100 % Tianjin Xiaowu Information & Technology Co., Ltd. (“Tianjin Xiaowu”) November 14, 2017 PRC 100 % Subsidiaries of VIEs Beijing Zhongrongxin Financing Guarantee Co., Ltd. November 10, 2006 PRC 100 % Beijing Ehomepay Technologies Co., Ltd. August 8, 2013 PRC 100 % (i) The Company has 30% direct shareholding in Beijing Lianjia through one of its wholly owned PRC subsidiaries. The Company depends on a series of contractual arrangements to provide its subsidiary with a “controlling financial interest” in the VIEs, as defined in FASB ASC 810. |
Schedule of financial positions of the businesses that currently constitute the VIE entities and the operation results for the years | As of December 31, 2022 2023 RMB RMB (in thousands) Cash and cash equivalents 1,873,989 2,232,732 Restricted cash 3,806,783 3,933,122 Short‑term investments 447,583 — Short‑term financing receivables, net 645,884 1,310,625 Accounts receivable, net 23,374 27,610 Amounts due from and prepayments to related parties 335,067 332,192 Loan receivables from related parties 20,000 — Prepayments, receivables and other assets 391,727 369,922 Amounts due from non‑VIE subsidiaries of the Group 3,041,482 2,671,350 Total current assets 10,585,889 10,877,553 Property and equipment, net 82,753 72,754 Right‑of‑use assets 73 199 Intangible assets, net 33,786 26,395 Goodwill 7,522 7,522 Other non‑current assets 66,128 58,420 Total non ‑ current assets 190,262 165,290 Total assets 10,776,151 11,042,843 Accounts payable 62,910 68,000 Amounts due to related parties 822 905 Employee compensation and welfare payable 386,874 371,917 Customer deposits payable 2,915,103 2,540,511 Income taxes payable 50,383 35,274 Lease liabilities current portion 369 383 Contract liabilities 5,572 4,291 Accrued expenses and other current liabilities 199,443 153,102 Amounts due to non‑VIE subsidiaries of the Group 3,432,642 4,802,196 Total current liabilities 7,054,118 7,976,579 Deferred tax liabilities 4,483 3,788 Lease liabilities non‑current portion 23 — Total non ‑ current liabilities 4,506 3,788 Total liabilities 7,058,624 7,980,367 For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Total net revenues from third party 946,883 470,564 595,498 Total net revenues from non-VIE subsidiaries of the Group 184,717 183,146 263,430 Total net revenues 1,131,600 653,710 858,928 Net income (loss) (52,557) 97,023 194,948 For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Net cash provided by (used in) operating activities (1,604,900) (1,537,384) 1,598,138 Net cash provided by (used in) investing activities 3,784,129 185,267 (193,772) Net cash used in financing activities (1,440,230) (849,738) (919,284) Net increase (decrease) in cash, cash equivalents and restricted cash 738,999 (2,201,855) 485,082 |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of change in items in condensed balance sheet due to change in accounting principle | As of December 31, 2022 As computed As reported under the under the new practical accounting Effect of expedient method change RMB RMB RMB (in thousands) Assets: Prepayments, receivables, other current and non-current assets 4,059,390 4,057,843 (1,547) Total assets 109,348,894 109,347,347 (1,547) Liabilities and shareholders’ equity Accumulated deficit (11,404,303) (11,405,850) (1,547) Total liabilities and shareholders’ equity 109,348,894 109,347,347 (1,547) |
Schedule of statement of comprehensive income (loss) | For the Year Ended December 31, 2022 As computed As reported under the under the new practical accounting Effect of expedient method change RMB RMB RMB (in thousands) Sales and marketing expenses (4,571,835) (4,573,382) (1,547) Total operating expenses (14,612,106) (14,613,653) (1,547) Net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders (1,384,527) (1,386,074) (1,547) Net income (loss) per share attributable to ordinary shareholders - Basic (0.39) (0.39) — - (0.39) (0.39) — |
Schedule of estimated useful lives of the assets | · Office building 20 - 40 years · Vehicles 4 years · Computer equipment 3 - 5 years · Furniture and office equipment 3 - 5 years · Leasehold improvement lesser of the term of the lease or the estimated useful lives of the assets |
Schedule of estimated useful lives of identifiable intangible assets | · Software 3 · Trademarks and domain names 3 · Customer relationships 3 · Non‑competition agreements 3 · Advertising resources 5 years · Licenses 6 |
Schedule of contract liabilities of the Group | As of December 31, 2022 2023 RMB RMB (in thousands) Contract liabilities: Existing home transaction services 174,472 178,856 New home transaction services 1,119,534 941,326 Home renovation and furnishing 1,488,294 2,363,394 Emerging and other services 477,969 1,181,625 Total 3,260,269 4,665,201 |
CASH, CASH EQUIVALENTS, RESTR_2
CASH, CASH EQUIVALENTS, RESTRICTED CASH (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
CASH, CASH EQUIVALENTS, RESTRICTED CASH | |
Summary of cash, cash equivalents and restricted cash | As of December 31, 2022 2023 RMB RMB (in thousands) Cash and cash equivalents (i): Cash 18,641,806 17,994,611 Cash equivalents 771,396 1,640,105 Restricted cash (ii): Current 6,181,057 6,222,745 Total cash, cash equivalents and restricted cash 25,594,259 25,857,461 (i) Cash and cash equivalents consist of cash on hand and demand deposits which have original maturities of three months or less and are readily convertible to a known amount of cash. The weighted average interest rate of cash equivalent for the years ended December 31, 2021, 2022 and 2023 are 0.8 %, 3.6 % and 3.9 %, respectively. (ii) The Group’s restricted cash is mainly comprised of 1) cash received from the property buyers but not yet paid to the sellers through the Group’s online payment platform, which is placed with banks in escrow accounts; 2) security deposits for the Group’s agency, guarantee and financing services; 3) borrowings from commercial banks for limited purpose; and 4) other miscellaneous restricted cash. The proportion for each type of restricted cash are 77.4 %, 12.4 %, 10.0 %, and 0.2% as of December 31, 2022; 76.2% , 19.1% , 4.5% , and 0.2% as of December 31, 2023, respectively. |
SHORT-TERM INVESTMENTS (Tables)
SHORT-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SHORT-TERM INVESTMENTS. | |
Schedule of short-term investments | As of December 31, 2022 2023 RMB RMB (in thousands) Short ‑ term investments: Bank time deposits 3,911,410 7,690,166 Wealth management products 26,491,683 26,415,902 Short-term held-to-maturity debt investments 3,631,732 151,890 Available-for-sale debt investments 1,380,668 — Listed equity securities 70,415 — Total 35,485,908 34,257,958 |
Schedule of held-to-maturity and available-for-sale debt investments | As of December 31, 2023 Cost or Gross Gross amortized cost unrecognized unrecognized less allowance holding holding for credit losses gains losses Fair value RMB RMB RMB RMB US$ (in thousands) Held-to-maturity debt investments 151,890 — (7,757) 144,133 20,350 |
PREPAYMENTS, RECEIVABLES AND _2
PREPAYMENTS, RECEIVABLES AND OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PREPAYMENTS, RECEIVABLES AND OTHER ASSETS | |
Schedule of prepayments, receivables and other assets | As of December 31, 2022 2023 RMB RMB (in thousands) Current: Advances to suppliers 618,694 574,170 Deposits paid to real estate developers (i) 530,308 222,604 Prepaid rental and other deposits 1,243,443 1,625,026 Staff advances 68,035 65,253 Receivables from escrow account 34,118 6,676 Interests receivable 11,035 14,664 VAT‑input deductible 660,104 707,416 Prepaid income tax 108,972 177,560 Inventories 127,558 304,208 Capitalized costs of obtaining contracts 155,636 338,811 Others 499,940 630,588 Total 4,057,843 4,666,976 Non ‑ current: Deferred tax asset (Note 18) 856,958 1,113,692 VAT-input deductible 169,879 192,991 Prepayment for land use right (ii) — 154,575 Others 5,414 11,783 Total 1,032,251 1,473,041 (i) Deposits paid to real estate developers (ii) Prepayment for land use right |
ACCOUNTS RECEIVABLE AND CONTR_2
ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET | |
Schedule of accounts receivable, net | As of December 31, 2022 2023 RMB RMB (in thousands) New home transaction services 5,406,009 3,750,996 Existing home transaction services 385,231 483,901 Home renovation and furnishing 103,641 99,935 Emerging and other services 131,959 248,803 Accounts receivable 6,026,840 4,583,635 Allowance for credit losses (1,951,419) (1,566,129) Accounts receivable, net 4,075,421 3,017,506 |
Schedule of contract assets, net | As of December 31, 2022 2023 RMB RMB (in thousands) Contract assets – gross 224,660 273,661 Allowance for credit losses (137,059) (114,998) Contract assets, net 87,601 158,663 |
Schedule of movements in the allowance for credit losses of accounts receivable | For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Balance at the beginning of the year (1,122,218) (2,151,271) (1,951,419) Reversal/(Additions) (1,216,517) 76,184 (174,237) Write‑offs 187,464 123,668 559,527 Balance at the end of the year (2,151,271) (1,951,419) (1,566,129) |
Accounts Receivable, Noncurrent, Past Due | As of December 31, 2022 2023 RMB RMB (in thousands) – Up to 3 months 2,389,431 2,056,388 – 3 months to 1 year 1,161,639 617,635 – Over 1 year 2,475,770 1,909,612 Accounts receivable 6,026,840 4,583,635 Less: allowance for credit losses (1,951,419) (1,566,129) Accounts receivable, net 4,075,421 3,017,506 |
FINANCING RECEIVABLES, NET (Tab
FINANCING RECEIVABLES, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
FINANCING RECEIVABLES, NET | |
Schedule of financing receivables, net | As of December 31, 2022 2023 RMB RMB (in thousands) Short ‑ term: Financing receivables from consolidated Trusts 623,872 1,316,432 Financing receivables from micro‑loan platforms 182,779 153,809 Total short ‑ term financing receivables 806,651 1,470,241 Allowance for credit losses (139,427) (122,482) Total short ‑ term financing receivables, net 667,224 1,347,759 |
Schedule of provision for credit losses, financing receivable | For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Beginning balance (127,319) (131,762) (139,427) (Provisions) Reversals (124,335) (18,658) 7,573 Write‑offs 119,892 10,993 9,372 Ending balance (131,762) (139,427) (122,482) |
Schedule of financing receivables portfolio based on customer type, origination year and delinquency | 180 days 1 ‑ 29 Days 30 ‑ 59 Days 60 ‑ 89 Days 90 ‑ 179 Days or greater Total RMB in the thousands Past Due Past Due Past Due Past Due Past Due Past Due Current Total Property transaction related business 2018 and before — — — — 32,037 32,037 — 32,037 2019 — — — — 19,931 19,931 — 19,931 2020 — — — — 19,023 19,023 — 19,023 2021 — — — — 57,261 57,261 — 57,261 2022 2,980 — — 2,963 834 6,777 619,209 625,986 Subtotal 2,980 — — 2,963 129,086 135,029 619,209 754,238 Non-property transaction related business 2018 and before — — — — 3,954 3,954 — 3,954 2019 82 804 4,447 15,547 13,220 34,100 — 34,100 2020 — — 3 — 4,466 4,469 11 4,480 2021 — — — 3 3,286 3,289 5,800 9,089 2022 44 108 55 544 39 790 — 790 Subtotal 126 912 4,505 16,094 24,965 46,602 5,811 52,413 December 31, 2022 3,106 912 4,505 19,057 154,051 181,631 625,020 806,651 Property transaction related business 2018 and before — — — — 31,215 31,215 — 31,215 2019 — — — — 13,222 13,222 — 13,222 2020 — — — — 12,618 12,618 — 12,618 2021 — — — — 46,333 46,333 — 46,333 2022 — — — — 3,740 3,740 — 3,740 2023 5,545 — — 763 1,027 7,335 1,308,553 1,315,888 Subtotal 5,545 — — 763 108,155 114,463 1,308,553 1,423,016 Non-property transaction related business 2018 and before — — — — 4,731 4,731 — 4,731 2019 — — — — 31,137 31,137 — 31,137 2020 — — — — 4,079 4,079 — 4,079 2021 — — — 1,600 5,314 6,914 — 6,914 2022 — — — — 364 364 — 364 Subtotal — — — 1,600 45,625 47,225 — 47,225 December 31, 2023 5,545 — — 2,363 153,780 161,688 1,308,553 1,470,241 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Schedule of property, plant and equipment, net | As of December 31, 2022 2023 RMB RMB (in thousands) Office building 707,693 689,703 Vehicles 21,821 22,085 Computer equipment 1,049,049 1,046,672 Furniture and office equipment 387,781 373,893 Leasehold improvement 2,444,146 2,717,396 Construction in progress 194,803 293,928 Total 4,805,293 5,143,677 Less: accumulated depreciation (2,749,468) (3,159,307) Less: accumulated impairment (19,272) (19,272) Net book value 2,036,553 1,965,098 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INTANGIBLE ASSETS, NET | |
Schedule of intangible assets, net | As of December 31, 2022 2023 RMB RMB (in thousands) Software 116,229 115,297 Trademarks and domain names 1,194,482 1,195,161 Customer relationships 4,080 — Non‑competition agreements 1,300 460 Advertising resources 2,437,610 2,478,945 License 349,912 349,912 Total 4,103,613 4,139,775 Less: accumulated amortization (2,158,991) (2,815,803) Less: accumulated impairment (257,646) (256,513) Net book value 1,686,976 1,067,459 |
Schedule of estimated amortization expense relating to the existing intangible assets with finite lives for each of the next five years | Amounts RMB (in thousands) Within 1 year 250,692 Between 1 and 2 years 129,257 Between 2 and 3 years 116,358 Between 3 and 4 years 114,809 Thereafter 456,343 Total 1,067,459 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
LEASES | |
Schedule of components of lease cost | For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Operating lease cost 3,586,026 4,216,897 7,785,841 Short‑term lease cost 47,769 39,941 50,659 Total 3,633,795 4,256,838 7,836,500 |
Schedule of supplemental cash flows information related to leases | For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows payment from operating leases 3,413,301 3,652,435 7,965,277 Right ‑ of ‑ use assets obtained in exchange for lease liabilities: Total right‑of‑use assets obtained in exchange for new operating lease liabilities 5,749,581 11,427,030 15,489,351 |
Schedule of rightofuse assets | For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Right ‑ of ‑ use assets obtained in exchange for lease liabilities Store leases 4,341,144 4,054,404 3,262,410 Administrative office leases 1,168,547 493,255 273,088 Leases of rental property management services 239,890 6,879,371 11,953,853 Total 5,749,581 11,427,030 15,489,351 |
Schedule of supplemental balance sheet information related to leases | As of December 31, 2022 2023 RMB RMB (in thousands) Operating leases Store leases 5,269,031 5,460,840 Administrative office leases 629,724 626,652 Leases of rental property management services 5,300,127 11,447,181 Land use rights 85,188 83,242 Total operating lease assets 11,284,070 17,617,915 Operating lease liabilities, current 4,972,345 9,368,607 Operating lease liabilities, non‑current 6,599,930 8,327,113 Total operating lease liabilities 11,572,275 17,695,720 |
Schedule of weighted-average remaining lease term and discount rate | For the Year Ended December 31, 2021 2022 2023 Weighted ‑ average remaining lease term (in years) Operating leases 3.25 2.90 2.43 Land use rights 41.34 44.17 43.18 Weighted ‑ average discount rate Operating leases 4.8 % 4.5 % 4.3 % Land use rights 5.3 % 4.7 % 4.7 % |
Schedule of maturities of lease liabilities | As of December 31, 2023 RMB (in thousands) 2024 9,645,224 2025 5,484,022 2026 1,618,295 2027 646,558 2028 356,789 Thereafter 657,608 Total undiscounted lease payments 18,408,496 Less: imputed interest (712,776) Total lease liabilities 17,695,720 |
Schedule of maturities of undiscounted lease payments | As of December 31, 2023 RMB (in thousands) 2024 6,856,443 2025 868,460 2026 94,340 2027 17,366 2028 11,062 Thereafter 35,344 Total undiscounted lease payments 7,883,015 |
LONG-TERM INVESTMENTS, NET (Tab
LONG-TERM INVESTMENTS, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
LONG-TERM INVESTMENTS, NET | |
Schedule of investments in equity method investees | As of December 31, 2022 2023 RMB RMB (in thousands) Investments in equity method investees 370,985 436,344 Investments accounted for at fair value 1,063,689 660,112 Equity investments without readily determinable fair value using the NAV practical expedient 91,005 86,240 Equity investments without readily determinable fair value using the measurement alternative 61,640 43,746 Long-term time deposits 11,064,516 15,352,785 Held-to-maturity debt investments 147,529 1,729,602 Available-for-sale debt investments 5,126,289 5,262,159 Total long-term investments 17,925,653 23,570,988 Amounts RMB (in thousands) Balance at December 31, 2020 689,929 Investments made 258,990 Income (loss) from investment 39,520 Investment impairment (2,914) Disposal of investment (540,433) Dividend received (14,800) Balance at December 31, 2021 430,292 Investments made 12,188 Income (loss) from investment 44,588 Disposal of investment (134,406) Dividend received (27,338) Acquired in a business combination 45,661 Balance at December 31, 2022 370,985 Investments made 183,253 Income (loss) from investment 9,098 Investment impairment (10,369) Disposal of investment (101,761) Dividend received (14,862) Balance at December 31, 2023 436,344 |
Schedule of carrying amount and fair value of investments | Gross Gross unrealized unrealized Exchange Cost basis gains losses adjustments Fair value RMB RMB RMB RMB RMB (in thousands) Marketable securities (i) 96,848 — (63,678) 3,964 37,134 Unlisted equity securities and loan receivables measured at fair value (ii) 252,567 444 (164,456) — 88,555 Wealth management product (iii) 937,500 500 — — 938,000 Balance at December 31, 2022 1,286,915 944 (228,134) 3,964 1,063,689 Marketable securities (i) 96,848 — (69,035) 4,932 32,745 Unlisted equity securities and loan receivables measured at fair value (ii) 238,015 778 (161,126) — 77,667 Wealth management product (iii) 537,500 12,200 — — 549,700 Balance at December 31, 2023 872,363 12,978 (230,161) 4,932 660,112 |
Schedule of carrying value of investment in private companies accounted for under measurement alternative | As of December 31, 2022 2023 RMB RMB (in thousands) Initial cost basis 835,790 839,296 Cumulated unrealized losses (including impairment) (774,150) (795,550) Total carrying value 61,640 43,746 |
Schedule of long-term held-to-maturity debt securities | As of December 31, 2023 Gross Gross Cost or unrecognized unrecognized Amortized holding holding Fair cost gains losses value RMB RMB RMB RMB (in thousands) Held-to-maturity debt investments 1,729,602 — (28,362) 1,701,240 |
Summary of amortized cost of held-to-maturity debt investments with stated contractual dates classified by the contractual maturity date of the investments | As of December 31, 2022 2023 RMB RMB (in thousands) Due in 1 year through 5 years 147,529 1,729,602 |
Schedule of available-for-sale debt investments | As of December 31, 2023 Cost or Gross Gross Amortized unrealized unrealized Fair cost gains losses value RMB RMB RMB RMB (in thousands) Available-for-sale debt investments 5,555,020 — (292,861) 5,262,159 |
Summary of Group's gross unrealized losses and fair values for available-for-sale debt investments | 12 Months or Greater Fair Unrealized Value Losses RMB RMB (in thousands) Additional Tier1 Bonds 5,262,159 (292,861) |
Summary of the estimated fair value of available-for-sale debt investments with stated contractual dates classified by the contractual maturity date of the investments | As of December 31, 2022 2023 RMB RMB (in thousands) Due in 1 year through 5 years 5,126,289 5,262,159 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
GOODWILL. | |
Schedule of changes in carrying value of goodwill by segment | Existing home New home Home transaction transaction renovation services services and furnishing Total RMB RMB RMB RMB (in thousands) Balance as of December 31, 2021 594,908 1,210,781 — 1,805,689 New additions (i) 62,496 — 3,207,805 3,270,301 Impairment provided (ii) (59,022) (82,733) — (141,755) Balance as of December 31, 2022 598,382 1,128,048 3,207,805 4,934,235 New additions (iii) 17,978 — — 17,978 Disposal (1,989) — — (1,989) Impairment provided (iv) (59,163) (34,254) — (93,417) Balance as of December 31, 2023 555,208 1,093,794 3,207,805 4,856,807 (i) During the year ended December 31, 2022, the Group acquired several real estate agency companies operating existing home transaction services in multiple cities, as well as Shengdu, a full-service home renovation service provider in China. On April 20, 2022, the Group completed the acquisition of Shengdu that was added to the home renovation and furnishing segment. The acquisition has been accounted for as a business combination, resulting in the recognition of RMB3,060.8 million of goodwill. (ii) During the year ended December 31, 2022, certain reporting units experienced a significant decrease in revenue and profit as a result of market downturn. This decline was identified by management as a triggering event. Following an impairment assessment, management concluded that the goodwill associated with certain reporting units was impaired. Consequently, a goodwill impairment loss of RMB141.8 million was recorded, with RMB59.0 million attributed to reporting units within the existing home transaction services segment and RMB82.7 million attributed to reporting units within the new home transaction services segment. (iii) During the year ended December 31, 2023, the Group acquired several real estate agency companies engaged in existing home transaction services in multiple cities. (iv) The Group completed its annual goodwill impairment test for all its reporting units as of December 31, 2023. During the year ended December 31, 2023, actual performance of certain reporting units did not meet prior forecasted expectations due to unfavorable local market conditions. The Group performed quantitative impairment testing on these reporting units and recognized goodwill impairment loss of RMB93.4 million, including RMB59.2 million related to reporting units within the existing home transaction services segment and RMB34.3 million related to reporting units within the new home transaction services segment. Following the goodwill impairment charge recorded in relation to these reporting units, the carrying value of the reporting units equaled its fair value as of December 31, 2023. Therefore, if business conditions or expectations were to change materially, it may be necessary to record further impairment charges to these reporting units in the future. |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
BORROWINGS | |
Schedule of borrowings | As of December 31, 2022 2023 RMB RMB (in thousands) Short‑term borrowings 619,000 290,450 |
ACCOUNTS PAYABLE (Tables)
ACCOUNTS PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ACCOUNTS PAYABLE | |
Schedule of accounts payable | As of December 31, 2022 2023 RMB RMB (in thousands) Payable related to new home transaction business 4,333,474 4,081,051 Payable for home renovation materials and construction costs 867,045 1,375,333 Payable for advertising fees 186,604 305,108 Payable for internet service fees 104,603 166,085 Payable for leasehold improvements 90,271 92,924 Others 261,324 308,015 Total 5,843,321 6,328,516 |
Schedule of ageing analysis of the trade payable | As of December 31, 2022 2023 RMB RMB (in thousands) – Up to 3 months 5,259,873 5,980,363 – 3 months to 1 year 270,846 221,018 – Over 1 year 312,602 127,135 Accounts payable 5,843,321 6,328,516 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |
Schedule of accrued expenses and other current liabilities | As of December 31, 2022 2023 RMB RMB (in thousands) Deposit related to new home services 1,267,752 1,388,784 Deposit related to franchise services 956,121 1,014,348 Deposit related to home renovation and furnishing services 292,361 961,966 Deposit related to entrusted house lease services 303,793 832,877 Other tax payables 272,610 335,395 Accrued operating expenses 215,234 291,914 Payable related to escrow accounts services (i) 116,025 153,670 Payable related to employees’ exercise of share-based awards 27,736 55,783 Deferred guarantee revenue 32,618 25,671 Others 633,818 635,540 Total 4,118,068 5,695,948 (i) Payable related to escrow accounts services refers to escrow payments such as deposits, down payments and other payments collected from the property buyers on behalf of and payable to the property sellers. The escrow payments will be paid to property sellers according to the payment schedule of the property purchase agreement agreed by both parties. |
OTHER INCOME, NET (Tables)
OTHER INCOME, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
OTHER INCOME, NET | |
Schedule of other income, net | For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Investment income, net 487,724 795,804 950,332 Government grants 1,059,907 668,372 762,070 Net gain (loss) on disposal of property, plant and equipment and intangible assets (467) 653 (629) Others 155,250 103,758 157,527 Total 1,702,414 1,568,587 1,869,300 |
INTEREST INCOME, NET (Tables)
INTEREST INCOME, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INTEREST INCOME, NET | |
Schedule of interest income, net | For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Interest income 385,375 769,094 1,291,485 Interest expense (6,105) (14,053) (17,241) Bank charges (18,952) (11,124) (9,068) Others (5,751) (433) (1,844) Total 354,567 743,484 1,263,332 |
TAXATION (Tables)
TAXATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
TAXATION | |
Schedule of components of income (loss) before tax for the years | For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Income (loss) before income tax expense Income from China operations 2,484,608 2,936,269 10,550,583 Loss from non‑China operations (1,343,882) (2,643,979) (2,666,588) Total income before income tax expense 1,140,726 292,290 7,883,995 Income tax expense from China operations Current income tax expense 1,759,725 1,275,779 2,243,600 Deferred tax (benefit)/expense (169,673) 237,615 (273,191) Income tax expense from China operations 1,590,052 1,513,394 1,970,409 Income tax expense from non‑China operations 75,440 176,180 23,982 Total income tax expense 1,665,492 1,689,574 1,994,391 |
Schedule of reconciliation between the PRC statutory income rate and the effective tax rate | For the Year Ended December 31, 2021 2022 2023 Statutory income tax rate 25.0 % 25.0 % 25.0 % Tax effect of preferential treatments (12.4) % (39.5) % (3.7) % Tax effect of tax-exempt entities 34.0 % 253.4 % 8.4 % Effect on tax rates in different tax jurisdiction 2.1 % 33.0 % 0.3 % Tax effect of permanent difference 49.7 % 151.9 % (4.1) % Tax effect of R&D deduction and others (21.2) % (58.0) % (2.0) % Change in valuation allowance 68.8 % 212.2 % 1.4 % Effect tax rates 146.0 % 578.0 % 25.3 % |
Schedule of the effect of tax holiday related to China operations | For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands, except for per share data) Tax holiday effect 141,554 115,521 294,698 Basic net income per share effect 0.04 0.03 0.08 Diluted net income per share effect 0.04 0.03 0.08 Denominator for basic net income (loss) per share-weighted average ordinary shares outstanding 3,549,122 3,569,179 3,521,380 Denominator for diluted net income (loss) per share-weighted average ordinary shares outstanding 3,549,122 3,569,179 3,611,653 |
Schedule of tax effects of temporary differences to the deferred income tax assets and liabilities | As of December 31, 2022 2023 RMB RMB (in thousands) Deferred tax assets Net operating loss carrying forward 2,788,131 3,144,161 Asset impairment 688,855 779,493 Deferred rental cost 48,290 17,642 Unrealized profits 184,837 154,012 Accrual expense 417,462 371,329 Others 81,420 75,825 Less: Valuation Allowance (3,310,975) (3,385,876) Deferred tax assets, net of valuation allowance 898,020 1,156,586 Deferred tax liability Fair value change of certain investments (45,559) (18,544) Intangible assets (343,200) (299,025) Deferred revenue (3,489) (4,666) Total deferred tax liability (392,248) (322,235) |
Schedule of movements of the valuation allowance | For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Balance at the beginning of the year (2,178,650) (2,892,268) (3,310,975) Remeasurement due to application of preferential tax rate — — (17,011) Additions (1,293,679) (1,029,453) (794,643) Reversals 571,595 575,365 687,180 Write-offs 8,466 35,381 49,573 Balance at the end of the year (2,892,268) (3,310,975) (3,385,876) |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of compensation expenses recognized for share-based awards granted | For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Included in: Cost of revenues 406,131 356,844 502,523 Sales and marketing expenses 110,446 121,396 180,465 General and administrative expenses 595,732 1,659,755 2,345,895 Research and development expenses 425,978 287,254 186,666 Total 1,538,287 2,425,249 3,215,549 Share‑based compensation related to share options (a) 1,504,025 970,551 771,151 Share‑based compensation related to restricted share units (b) 34,262 361,071 813,294 Share-based compensation related to restricted shares (c) — 1,093,627 1,631,104 Total 1,538,287 2,425,249 3,215,549 |
Schedule of activities of company's share options | Weighted Weighted average Number of average remaining Aggregate options exercise contractual intrinsic outstanding price life value US$ In Years US$ (in thousands) Outstanding as of December 31, 2020 138,381,390 0.00002 8.29 2,838,661 Granted 20,341,532 0.00002 Exercised (57,076,970) 0.00002 Forfeited (8,913,268) 0.00002 Outstanding as of December 31, 2021 92,732,684 0.00002 8.11 621,926 Outstanding as of December 31, 2021 92,732,684 0.00002 8.11 621,926 Granted 4,073,400 0.00002 Exercised (24,383,373) 0.00002 Forfeited or Cancelled or Lapsed (12,600,293) 0.00002 Outstanding as of December 31, 2022 59,822,418 0.00002 7.30 278,373 Outstanding as of December 31, 2022 59,822,418 0.00002 7.30 278,373 Exercised (17,029,713) 0.00002 Forfeited or Cancelled (2,443,122) 0.00002 Outstanding as of December 31, 2023 40,349,583 0.00002 6.39 218,022 Vested and exercisable as of December 31, 2021 10,816,028 0.00002 6.96 72,539 Vested and exercisable as of December 31, 2022 8,393,147 0.00002 6.56 39,056 Vested and exercisable as of December 31, 2023 7,610,018 0.00002 5.81 41,119 |
Schedule of fair value assumptions | For the Year Ended December 31, 2021 2022 Exercise price (US$) US$ 0.00002 US$ 0.00002 Fair value of ordinary shares (US$) 5.51~22.33 3.72 ~ 6.31 Expected volatility 51.0%~52.2 % 48.8% ~ 52.6 % Excepted term (in years) 10 10 Expected dividend yield 0 % 0 % Risk‑free interest rate 1.9%~2.3 % 2.3% ~ 4.2 % |
Share-based Payment Arrangement, Restricted Stock Unit, Activity | The following table summarizes activities of the Group’s restricted share units under 2020 Share Incentive Plan: Number of RSU Weighted average grant-date outstanding fair value US$ Outstanding as of December 31, 2020 — — Granted 2,525,730 11.85 Forfeited (83,607) 15.89 Outstanding as of December 31, 2021 2,442,123 11.72 Outstanding as of December 31, 2021 2,442,123 11.72 Granted 44,012,712 5.90 Vested (576,720) 7.89 Forfeited (4,375,617) 7.05 Outstanding as of December 31, 2022 41,502,498 6.08 Outstanding as of December 31, 2022 41,502,498 6.08 Granted 46,425,615 6.03 Vested (5,963,517) 5.90 Forfeited or Cancelled (2,002,524) 6.21 Outstanding as of December 31, 2023 79,962,072 6.07 |
2022 Share Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Payment Arrangement, Restricted Stock Unit, Activity | Number of restricted shares Weighted average grant-date outstanding fair value US$ Outstanding as of December 31, 2021 — — Granted 170,008,293 4.38 Outstanding as of December 31, 2022 170,008,293 4.38 Outstanding as of December 31, 2022 170,008,293 4.38 Vested * (13,292,404) 4.29 Outstanding as of December 31, 2023 156,715,889 4.39 * 16,416,972 and 12,312,729 restricted shares granted to Mr. PENG Yongdong and Mr. SHAN Yigang that vested and re-restricted during the year 2023 are presented on a net basis. |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Schedule of the financial instruments, measured at fair value, by level within the fair value hierarchy on recurring basis | Fair value measurement at reporting date using Quoted prices in active Significant Significant markets for other other identical observable unobservable December 31, assets inputs inputs 2022 (Level 1) (Level 2) (Level 3) RMB RMB RMB RMB (in thousands) Assets Fair value disclosure Short-term investments Short-term time deposits 3,911,410 — 3,911,410 — Held-to-maturity debt investments 3,571,060 — 3,571,060 — Long-term investments Long-term time deposits 11,064,516 — 11,064,516 — Held-to-maturity debt investments 138,485 — 138,485 — Fair value measurements on a recurring basis Short-term investments Equity investments at fair value with readily determinable fair value Listed equity securities 70,415 70,415 — — Wealth management products 26,491,683 — 23,492,290 2,999,393 Available-for-sale debt investments 1,380,668 — 1,380,668 — Long-term investments Equity investments without readily determinable fair value using NAV practical expedient (i) 91,005 Equity investments at fair value with readily determinable fair value 37,134 37,134 — — Investments accounted for at fair value 1,026,555 — 900,500 126,055 Available-for-sale debt investments 5,126,289 — 5,126,289 — Total 52,909,220 107,549 49,585,218 3,125,448 Fair value measurement at reporting date using Quoted prices in active Significant Significant markets for other other identical observable unobservable December 31, assets inputs inputs 2023 (Level 1) (Level 2) (Level 3) RMB RMB RMB RMB (in thousands) Assets Fair value disclosure Short-term investments Short-term time deposits 7,690,166 — 7,690,166 — Held-to-maturity debt investments 144,133 — 144,133 — Long-term investments — — — — Long-term time deposits 15,352,785 — 15,352,785 — Held-to-maturity debt investments 1,701,240 — 1,701,240 — Fair value measurements on a recurring basis Short-term investments Wealth management products 26,415,902 — 24,000,694 2,415,208 Long-term investments Equity investments without readily determinable fair value using NAV practical expedient (i) 86,240 Equity investments at fair value with readily determinable fair value 32,745 32,745 — — Investments accounted for at fair value 627,367 — 512,200 115,167 Available-for-sale debt investments 5,262,159 — 5,262,159 — Total 57,312,737 32,745 54,663,377 2,530,375 (i) Investments are measured at fair value using NAV as a practical expedient. These investments have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. |
Short-term wealth management products | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Summary the activities related to fair value of assets | Amounts RMB (in thousands) Balance at December 31, 2021 (Level 3) 2,289,646 Transfer from long-term investment 3,317,493 Change in fair value (i) (1,077) Exchange adjustment 197,924 Disposal (2,804,593) Balance at December 31, 2022 (Level 3) 2,999,393 Change in fair value (i) 136,907 Exchange adjustment 48,354 Disposal (769,446) Balance at December 31, 2023 (Level 3) 2,415,208 (i) Recognized as “Fair value changes in investments, net” on the consolidated statements of comprehensive income (loss). |
Long-term wealth management products | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Summary the activities related to fair value of assets | Amounts RMB (in thousands) Balance at December 31, 2021 (Level 3) 3,583,898 Change in fair value (i) (283,214) Dividend Received (412) Investment Made 46,972 Exchange adjustment 132,304 Disposal (36,000) Transfer to short-term investment (3,317,493) Balance at December 31, 2022 (Level 3) 126,055 Change in fair value (i) 4,007 Disposal (14,895) Balance at December 31, 2023 (Level 3) 115,167 (i) Recognized as “Fair value changes in investments, net” on the consolidated statements of comprehensive income (loss). |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SEGMENT INFORMATION | |
Schedule of information by segment | For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Net revenues: Existing home transaction services 31,947,953 24,123,703 27,954,135 New home transaction services 46,472,378 28,650,374 30,575,778 Home renovation and furnishing 197,452 5,046,627 10,850,497 Emerging and other services 2,134,656 2,848,075 8,396,522 Total 80,752,439 60,668,779 77,776,932 Material costs, property leasing costs, commission and compensation costs: Existing home transaction services (20,123,501) (14,510,838) (14,762,910) New home transaction services (37,525,240) (21,886,020) (22,455,253) Home renovation and furnishing (195,869) (3,562,068) (7,705,325) Emerging and other services (288,593) (1,956,468) (6,380,385) Total (58,133,203) (41,915,394) (51,303,873) Contribution: Existing home transaction services 11,824,452 9,612,865 13,191,225 New home transaction services 8,947,138 6,764,354 8,120,525 Home renovation and furnishing 1,583 1,484,559 3,145,172 Emerging and other services 1,846,063 891,607 2,016,137 Total 22,619,236 18,753,385 26,473,059 |
NET INCOME (LOSS) PER SHARE (Ta
NET INCOME (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
NET INCOME (LOSS) PER SHARE | |
Schedule of earnings per share, basic and diluted | For the Year Ended December 31, 2021 2022 2023 (RMB in thousands, except for share and per share data) Numerator: Net income (loss) attributable to KE Holdings Inc. (524,129) (1,386,074) 5,883,224 Net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders (524,129) (1,386,074) 5,883,224 Denominator: Denominator for basic net income (loss) per share-weighted average ordinary shares outstanding 3,549,121,628 3,569,179,079 3,521,379,938 Adjustments for dilutive share options — — 9,338,346 Adjustments for dilutive restricted shares — — 72,916,553 Adjustments for dilutive restricted share units — — 8,018,183 Denominator for diluted net income (loss) per share-weighted average ordinary shares outstanding 3,549,121,628 3,569,179,079 3,611,653,020 Net income (loss) per share attributable to ordinary shareholders: —Basic (0.15) (0.39) 1.67 —Diluted (0.15) (0.39) 1.63 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
RELATED PARTY TRANSACTIONS | |
Schedule of significant related parties and their relationships with the Group | Related Party Relationship with the Group Ziroom Inc. and its subsidiaries (“Ziroom”) A group which management or operating policies significantly influenced by a director of the Company Yuanjing Mingde (Beijing) Holding Group Co., Ltd. and its subsidiaries (“Yuanjing Mingde”) A group which management or operating policies significantly influenced by a director of the Company Vanlian (Beijing) Decoration Co., Ltd. (“Vanlian”) An affiliate company of the Group IFM Investments Limited (“IFM”) An affiliate company of the Group Shengdu An affiliate company of the Group Shanghai Xinhewan Industrial Development Co., Ltd (“Xinhewan”) An affiliate company of the Group Brokerage firms Firms that the Group has significant influence in Tencent Principal owner of the Group Suofeiya Shengdu Home (Zhejiang) Co., Ltd. (“Suofeiya Shengdu”) An affiliate company of the Group |
Schedule of revenues from, services provided by, and other income from related parties | For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Revenues from related parties Commission support services provided to brokerage firms 423,448 441,471 606,062 Platform services provided to IFM 69,717 65,258 91,825 Online marketing services provided to Ziroom 104,888 90,262 74,961 Agency services provided to Ziroom 53,150 34,197 51,118 Platform and franchise services provided to brokerage firms 8,512 13,011 27,184 Agency services provided to Yuanjing Mingde 4,491 5,183 6,901 Technical services provided to Tencent 1,608 745 — Agency services and other services provided to Shengdu 7,565 8,700 — Agency services, online marketing services and home renovation services provided to Vanlian 174,511 — — Others — 5,376 7,596 Total 847,890 664,203 865,647 For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Services provided by related parties Referral services from brokerage firms 831,591 673,972 853,139 Online marketing and technical services from Tencent 193,866 159,564 122,452 Services from Ziroom 7,942 8,131 10,661 Rental and property management services from Yuanjing Mingde 30,609 27,379 21,882 Referral services from IFM 10,672 5,590 6,339 Others 1,322 1,122 35,917 Total 1,076,002 875,758 1,050,390 For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Purchase of home furnishing goods from related parties Purchase of home furnishing goods from Suofeiya Shengdu — 1,595 144,119 Total — 1,595 144,119 For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Other income Interest income from loans provided to Xinhewan — 4,301 — Interest income and debt settlement expense related to loans provided to IFM 2,209 (753) 5,076 Interest income from loans provided to others 1,450 2,406 1,911 Total 3,659 5,954 6,987 |
Schedule of lease balances and transactions with related parties | For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Operating lease cost related to lease with related parties Operating lease cost related to lease with Yuanjing Mingde 18,358 18,092 12,133 Operating lease cost related to lease with Ziroom 100 175 72 Operating lease cost related to lease with brokerage firms 49 — 35 Total 18,507 18,267 12,240 For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Operating lease income from related parties Operating lease income from Suofeiya Shengdu — 2,219 3,046 Total — 2,219 3,046 As of December 31, 2022 2023 RMB RMB (in thousands) Operating Leases Store leases from Yuanjing Mingde 77,625 69,391 Administrative office leases from Ziroom 72 — Administrative office leases from brokerage firms — 48 Total operating lease assets 77,697 69,439 Operating lease liabilities, current from Yuanjing Mingde 4,284 4,509 Operating lease liabilities, current from Ziroom 26 — Operating lease liabilities, current from brokerage firms — 41 Operating lease liabilities, non-current from Yuanjing Mingde 75,449 70,940 Operating lease liabilities, non-current from brokerage firms — 7 Total operating lease liabilities 79,759 75,497 |
Schedule of amounts due from, due to, and prepayments to related parties | As of December 31, 2022 2023 RMB RMB (in thousands) Amounts due from and prepayments to related parties Ziroom 345,212 350,047 IFM 7,400 3,128 Yuanjing Mingde 6,806 7,668 Tencent 2,258 2,542 Brokerage firms 19,551 20,713 Others 24,729 35,172 Total 405,956 419,270 Amounts due to related parties Tencent 34,723 35,002 Ziroom 33,530 35,282 IFM 27,091 31,299 Yuanjing Mingde 6,983 17,819 Brokerage firms 315,977 302,246 Others 7,381 8,702 Total 425,685 430,350 |
Schedule of loan receivables from related parties | As of December 31, 2022 2023 RMB RMB (in thousands) Loan receivables from related parties Short‑term loans to IFM 20,000 15,000 Short-term loans to others (a) 15,846 13,030 Current portion of long-term loans to Xinhewan 14,617 — Long-term loans to Xinhewan 17,934 — Long-term loans to IFM — 27,000 Long-term loans to others (a) 5,000 — Total 73,397 55,030 (a) The balance of loans include loans the Group provided to entities that the Group has significant influence in. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of commitments and contingencies | As of December 31, 2023 RMB (in thousands) Operating leases commitments(i) 427,799 Purchase of land use right(ii) 154,575 Investment commitments(iii) 105,027 Purchase of property and equipment 3,793 Purchase of services 1,818 Total 693,012 Amounts RMB (in thousands) 2024 373,394 2025 115,740 2026 90,821 2027 50,309 Thereafter 62,748 Total 693,012 (i) Operating leases commitments represent the Group’s obligations for leasing premises. (ii) The commitment to purchase land use right is the outstanding consideration for the land use right purchased by Shengdu in 2023. (iii) Investment commitments obligations primarily relate to capital contributions obligation under certain arrangements. |
STATUTORY RESERVES AND RESTRI_2
STATUTORY RESERVES AND RESTRICTED NET ASSETS (Tables) - Parent | 12 Months Ended |
Dec. 31, 2023 | |
Schedule of Condensed balance sheets | Condensed balance sheets of the parent company As of December 31, 2022 2023 RMB RMB (in thousands, except for share and per share data) ASSETS Current assets: Cash and cash equivalents 12,818 9,414 Short-term investments 7,372,995 537,847 Amounts due from subsidiaries and VIEs 1,226,906 688,776 Prepayments, receivables and other assets 13,927 2,003 Non ‑ current assets: Investment in subsidiaries 56,064,739 67,805,473 Net assets of the VIEs 3,716,231 3,061,116 Long-term investments, net 516,873 — TOTAL ASSETS 68,924,489 72,104,629 LIABILITIES Current liabilities Accrued expenses and other current liabilities 4,129 4,805 TOTAL LIABILITIES 4,129 4,805 SHAREHOLDERS’ EQUITY Ordinary shares (US$0.00002 par value; 25,000,000,000 ordinary shares authorized, comprising of 24,114,698,720 Class A ordinary shares and 885,301,280 Class B ordinary shares. 3,601,547,279 Class A ordinary shares issued and 3,561,632,933 (1) (1) issued outstanding 487 475 Treasury shares (225,329) (866,198) Additional paid‑in capital 80,302,956 77,583,054 Accumulated other comprehensive income (loss) (412,721) 244,302 Accumulated deficit (10,745,033) (4,861,809) Total shareholders’ equity 68,920,360 72,099,824 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 68,924,489 72,104,629 (1) Excluding the Class A ordinary shares registered in the name of the depositary bank for future issuance of ADSs upon the exercise or vesting of awards granted under our share incentive plans and the Class A ordinary shares repurchased but not cancelled in the form of ADSs. |
Schedule of Condensed statements of comprehensive income (loss) | Condensed statements of comprehensive income (loss) For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Sales and marketing expenses (10,227) — — General and administrative expenses (82,109) (140,148) (45,781) Research and development expenses (57) — — Interest income, net 3,035 745 52,460 Share of income (loss) of subsidiaries (696,144) (1,436,950) 5,618,262 Income (loss) of the VIEs (52,436) 97,036 194,884 Fair value changes through earnings on investments, net 183,991 4,770 45,235 Foreign currency exchange loss (3,968) (61,317) (30,089) Other income, net 133,786 149,790 48,253 Income (loss) before income tax expense (524,129) (1,386,074) 5,883,224 Income tax expense — — — Net income (loss) (524,129) (1,386,074) 5,883,224 Net income (loss) attributable to KE Holdings Inc.’s ordinary shareholders (524,129) (1,386,074) 5,883,224 Net income (loss) (524,129) (1,386,074) 5,883,224 Other comprehensive income (loss) Currency translation adjustments (841,214) 2,602,071 574,223 Unrealized gains (losses) on available-for-sale investments, net of reclassification 35,578 (375,069) 82,800 Total comprehensive income (loss) (1,329,765) 840,928 6,540,247 Total comprehensive income (loss) attributable to KE Holdings Inc.’s ordinary shareholders (1,329,765) 840,928 6,540,247 |
Schedule of Condensed statements of cash flows | Condensed statements of cash flows For the Year Ended December 31, 2021 2022 2023 RMB RMB RMB (in thousands) Net cash provided by (used in) operating activities (10,302) (58,875) 62,063 Net cash provided by (used in) investing activities (3,183,233) 1,348,740 6,933,723 Net cash provided by (used in) financing activities 7 (1,319,793) (6,576,333) Effect of exchange rate changes on cash and cash equivalents (12,822) (12,489) (422,857) Net decrease in cash and cash equivalents (3,206,350) (42,417) (3,404) Cash and cash equivalents at the beginning of the year 3,261,585 55,235 12,818 Cash and cash equivalents at the end of the year 55,235 12,818 9,414 |
ORGANIZATION - Consolidated VIE
ORGANIZATION - Consolidated VIEs inclusive of the VIEs subsidiaries (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Beike Group (Cayman) Limited | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
Beike Finance Holdings (Cayman) Limited | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
Sharehome HK International Limited | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
Beike Kestone Holdings (Hong Kong) Limited | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
Beike (Tianjin) Investment Co., Ltd. | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
Beihan(Tianjin) Technology Co., Ltd. | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
Beijing Lianjia Zhidi Real Estate Brokerage Co., Ltd. ("Lianjia Zhidi") | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
Beijing Lianjia Real Estate Brokerage Co., Ltd. ("Beijing Lianjia") | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 30% |
VIEs ownership (as a percent) | 100% |
Beijing Yiju Taihe Technology Co., Ltd. ("Yiju Taihe") | |
Subsidiary or Equity Method Investee | |
VIEs ownership (as a percent) | 100% |
Tianjin Xiaowu Information & Technology Co., Ltd. ("Tianjin Xiaowu") | |
Subsidiary or Equity Method Investee | |
VIEs ownership (as a percent) | 100% |
Beijing Zhongrongxin Financing Guarantee Co., Ltd. | |
Subsidiary or Equity Method Investee | |
VIEs ownership (as a percent) | 100% |
Beijing Ehomepay Technologies Co., Ltd. | |
Subsidiary or Equity Method Investee | |
VIEs ownership (as a percent) | 100% |
Lianjia Enterprise Management | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
Beijing Fangyuan Real Estate Consulting Services Co., Ltd. | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
Beijing Gaoce Real Estate Brokerage Co., Ltd. | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
Beijing Lianjia Gaoce Real Estate Brokerage Co., Ltd. | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
Deyou Real Estate Agency | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
Shanghai Xiaoheng Internet Technology Co., Ltd. | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
Shanghai Deyou Property Consulting Co., Ltd. | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
Shenzhen Lianjia Real Estate Brokerage Co., Ltd. | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
Ningbo Fangjianghu Internet Technology Co., Ltd. | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
Tianjin Haibei Information Technology Co., Ltd. | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
Beike Zhaofang | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
Beike Zhaofang Technology Co., Ltd. | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
Beike Technology Co., Ltd. | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
Shanghai Haibi Technology Co., Ltd. | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
Shanghai Huibeiju Technology Co., Ltd. | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
Shanghai Chenhaibei Internet Technology Co., Ltd. | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
Beijing Beiwoo Decoration Co., Ltd. | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
Beike Meijia Supply Chain Management (Zhejiang) Co., Ltd. | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
Shengdu Home Renovation Co., Ltd. | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
Beijing Meichen Information Consulting Co., Ltd. | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
Shanghai Shengyi Investment Management Co., Ltd. | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
Beijing Lianjia Rongsheng Management Consulting Co., Ltd. | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
Beijing Xinfu Home Rental Co., Ltd. | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
Tianjin Haibei Technology Services Co., Ltd. | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
Deyou (Tianjin) Real Estate Services Co., Ltd. | |
Subsidiary or Equity Method Investee | |
Economic ownership (as a percent) | 100% |
ORGANIZATION - Additional infor
ORGANIZATION - Additional information (Details) ¥ in Millions | 12 Months Ended | ||||
Jul. 22, 2020 | Dec. 31, 2018 CNY (¥) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2019 CNY (¥) | |
Subsidiary or Equity Method Investee | |||||
Onshore capital returned to preferred shareholder | ¥ 3,000 | ¥ 6,931 | |||
Ratio of issued and unissued ordinary shares and preferred shares was subdivided | 5 | ||||
Amount of registered capital of the VIEs | ¥ 21,200 | ||||
Beijing Lianjia | |||||
Subsidiary or Equity Method Investee | |||||
Equity investments, pledge (as a percent) | 3.03% | ||||
VIE | |||||
Subsidiary or Equity Method Investee | |||||
Amount of registered capital of the VIEs | 2,500 | ¥ 2,500 | |||
Amount of non-distributable statutory reserves of the VIEs | ¥ 142.7 | ¥ 109.3 |
ORGANIZATION - Consolidation an
ORGANIZATION - Consolidation and presentation of financial statements (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) |
Variable interest entity | ||||||
Cash and cash equivalents | ¥ 19,634,716 | $ 2,765,492 | ¥ 19,413,202 | $ 2,734,292 | ¥ 20,446,104 | ¥ 40,969,979 |
Restricted cash | 6,222,745 | 876,455 | 6,181,057 | $ 870,584 | 6,286,105 | ¥ 8,567,496 |
Shortterm investments | 34,257,958 | 4,825,132 | 35,485,908 | |||
Accounts receivable, net | 3,017,506 | 4,075,421 | ||||
Prepayments, receivables and other assets | 4,666,976 | 657,331 | 4,057,843 | |||
Total current assets | 69,753,623 | 9,824,593 | 70,424,675 | |||
Property and equipment, net | 1,965,098 | 276,778 | 2,036,553 | |||
Rightofuse assets | 17,617,915 | 2,481,431 | 11,284,070 | |||
Intangible assets, net | 1,067,459 | 150,348 | 1,686,976 | |||
Goodwill | 4,856,807 | 684,067 | 4,934,235 | ¥ 1,805,689 | ||
Other non-current assets | 1,473,041 | 207,474 | 1,032,251 | |||
Total noncurrent assets | 50,578,308 | 7,123,805 | 38,922,672 | |||
TOTAL ASSETS | 120,331,931 | 16,948,398 | 109,347,347 | |||
Accounts payable | 6,328,516 | 891,353 | 5,843,321 | |||
Employee compensation and welfare payable | 8,145,779 | 1,147,309 | 9,365,512 | |||
Customer deposits payable | 3,900,564 | 549,383 | 4,194,828 | |||
Income taxes payable | 698,568 | 98,391 | 542,290 | |||
Lease liabilities current portion | 9,368,607 | 1,319,541 | 4,972,345 | |||
Contract liabilities | 4,665,201 | 657,080 | 3,260,269 | |||
Accrued expenses and other current liabilities | 5,695,948 | 802,257 | 4,118,068 | |||
Total current liabilities | 39,523,983 | 5,566,837 | 33,341,318 | |||
Deferred tax liabilities | 279,341 | 39,344 | 351,186 | |||
Lease liabilities non-current portion | 8,327,113 | 1,172,849 | 6,599,930 | |||
Total noncurrent liabilities | 8,606,843 | 1,212,248 | 6,951,591 | |||
TOTAL LIABILITIES | 48,130,826 | 6,779,085 | 40,292,909 | |||
Nonrelated Party | ||||||
Variable interest entity | ||||||
Short-term financing receivables, net of allowance for credit losses of RMB139,427 and RMB122,482 as of December 31, 2022 and 2023, respectively | 1,347,759 | 189,828 | 667,224 | |||
Related Party | ||||||
Variable interest entity | ||||||
Amounts due from and prepayments to related parties | 419,270 | 59,053 | 405,956 | |||
Amounts due to related parties | 430,350 | $ 60,614 | 425,685 | |||
VIE [member] | ||||||
Variable interest entity | ||||||
Cash and cash equivalents | 2,232,732 | 1,873,989 | ||||
Restricted cash | 3,933,122 | 3,806,783 | ||||
Shortterm investments | 0 | 447,583 | ||||
Short-term financing receivables, net of allowance for credit losses of RMB139,427 and RMB122,482 as of December 31, 2022 and 2023, respectively | 1,310,625 | 645,884 | ||||
Accounts receivable, net | 27,610 | 23,374 | ||||
Prepayments, receivables and other assets | 369,922 | 391,727 | ||||
Amounts due from non-VIE subsidiaries of the Group | 2,671,350 | 3,041,482 | ||||
Total current assets | 10,877,553 | 10,585,889 | ||||
Property and equipment, net | 72,754 | 82,753 | ||||
Rightofuse assets | 199 | 73 | ||||
Intangible assets, net | 26,395 | 33,786 | ||||
Goodwill | 7,522 | 7,522 | ||||
Other non-current assets | 58,420 | 66,128 | ||||
Total noncurrent assets | 165,290 | 190,262 | ||||
TOTAL ASSETS | 11,042,843 | 10,776,151 | ||||
Accounts payable | 68,000 | 62,910 | ||||
Employee compensation and welfare payable | 371,917 | 386,874 | ||||
Customer deposits payable | 2,540,511 | 2,915,103 | ||||
Income taxes payable | 35,274 | 50,383 | ||||
Lease liabilities current portion | 383 | 369 | ||||
Contract liabilities | 4,291 | 5,572 | ||||
Accrued expenses and other current liabilities | 153,102 | 199,443 | ||||
Total current liabilities | 7,976,579 | 7,054,118 | ||||
Deferred tax liabilities | 3,788 | 4,483 | ||||
Lease liabilities non-current portion | 0 | 23 | ||||
Total noncurrent liabilities | 3,788 | 4,506 | ||||
TOTAL LIABILITIES | 7,980,367 | 7,058,624 | ||||
VIE [member] | Related Party | ||||||
Variable interest entity | ||||||
Short-term financing receivables, net of allowance for credit losses of RMB139,427 and RMB122,482 as of December 31, 2022 and 2023, respectively | 0 | 20,000 | ||||
Amounts due from and prepayments to related parties | 332,192 | 335,067 | ||||
Accounts payable | 905 | 822 | ||||
Amounts due to related parties | 905 | 822 | ||||
VIE [member] | Affiliated Entity [Member] | ||||||
Variable interest entity | ||||||
Amounts due to related parties | ¥ 4,802,196 | ¥ 3,432,642 |
ORGANIZATION - Net revenue, net
ORGANIZATION - Net revenue, net loss, operating, investing and financing cash flows (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Variable interest entity | ||||
Total net revenues | ¥ 77,776,932 | $ 10,954,652 | ¥ 60,668,779 | ¥ 80,752,439 |
Net income (loss) | 5,889,604 | 829,535 | (1,397,284) | (524,766) |
Net cash provided by (used in) operating activities | 11,157,625 | 1,571,522 | 8,460,754 | 3,595,122 |
Net cash provided by (used in) investing activities | (3,977,440) | (560,210) | (8,472,355) | (24,884,074) |
Net cash used in financing activities | (6,961,591) | (980,519) | (1,154,993) | (1,074,173) |
Cash, cash equivalents and restricted cash change during the year | 263,202 | $ 37,071 | (1,137,950) | (22,805,266) |
VIE | ||||
Variable interest entity | ||||
Total net revenues from third party | 595,498 | 470,564 | 946,883 | |
Total net revenues from non-VIE subsidiaries of the Group | 263,430 | 183,146 | 184,717 | |
Total net revenues | 858,928 | 653,710 | 1,131,600 | |
Net income (loss) | 194,948 | 97,023 | (52,557) | |
Net cash provided by (used in) operating activities | 1,598,138 | (1,537,384) | (1,604,900) | |
Net cash provided by (used in) investing activities | (193,772) | 185,267 | 3,784,129 | |
Net cash used in financing activities | (919,284) | (849,738) | (1,440,230) | |
Cash, cash equivalents and restricted cash change during the year | ¥ 485,082 | ¥ (2,201,855) | ¥ 738,999 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Change in method of accounting for capitalization of costs to obtain a contract as incurred (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) ¥ / shares | Dec. 31, 2023 USD ($) $ / shares | Dec. 31, 2022 CNY (¥) ¥ / shares | Dec. 31, 2021 CNY (¥) ¥ / shares | Dec. 31, 2023 USD ($) | |
ASSETS | |||||
Total assets | ¥ 120,331,931 | ¥ 109,347,347 | $ 16,948,398 | ||
Liabilities and shareholders' equity | |||||
Accumulated deficit | (5,672,916) | (11,405,850) | (799,014) | ||
Total liabilities and shareholders' equity | 120,331,931 | 109,347,347 | $ 16,948,398 | ||
Sales and marketing expenses | 6,654,178 | $ 937,221 | 4,573,382 | ¥ 4,309,116 | |
Total operating expenses | 16,920,944 | 2,383,265 | 14,613,653 | 17,174,279 | |
Net income (loss) attributable to KE Holdings Inc.'s ordinary shareholders | ¥ 5,883,224 | $ 828,636 | ¥ (1,386,074) | ¥ (524,129) | |
Net income (loss) per share attributable to ordinary shareholders | |||||
- Basic (per share) | (per share) | ¥ 1.67 | $ 0.24 | ¥ (0.39) | ¥ (0.15) | |
- Diluted (per share) | (per share) | ¥ 1.63 | $ 0.23 | ¥ (0.39) | ¥ (0.15) | |
As computed under the practical expedient | Change in method of contract cost capitalization | Cumulative Effect, Period of Adoption, Adjustment | |||||
ASSETS | |||||
Prepayments, receivables, other current and non-current assets | ¥ 4,059,390 | ||||
Total assets | 109,348,894 | ||||
Liabilities and shareholders' equity | |||||
Accumulated deficit | (11,404,303) | ||||
Total liabilities and shareholders' equity | 109,348,894 | ||||
ASC 606 | Change in method of contract cost capitalization | |||||
ASSETS | |||||
Prepayments, receivables, other current and non-current assets | 4,057,843 | ||||
Total assets | 109,347,347 | ||||
Liabilities and shareholders' equity | |||||
Accumulated deficit | (11,405,850) | ||||
Total liabilities and shareholders' equity | 109,347,347 | ||||
Sales and marketing expenses | (4,573,382) | ||||
Total operating expenses | (14,613,653) | ||||
Net income (loss) attributable to KE Holdings Inc.'s ordinary shareholders | ¥ (1,386,074) | ||||
Net income (loss) per share attributable to ordinary shareholders | |||||
- Basic (per share) | ¥ / shares | ¥ (0.39) | ||||
- Diluted (per share) | ¥ / shares | ¥ (0.39) | ||||
ASC 606 | As computed under the practical expedient | Change in method of contract cost capitalization | |||||
Liabilities and shareholders' equity | |||||
Sales and marketing expenses | ¥ (4,571,835) | ||||
Total operating expenses | (14,612,106) | ||||
Net income (loss) attributable to KE Holdings Inc.'s ordinary shareholders | ¥ (1,384,527) | ||||
Net income (loss) per share attributable to ordinary shareholders | |||||
- Basic (per share) | ¥ / shares | ¥ (0.39) | ||||
- Diluted (per share) | ¥ / shares | ¥ (0.39) | ||||
ASC 606 | Effect of change | Change in method of contract cost capitalization | |||||
ASSETS | |||||
Prepayments, receivables, other current and non-current assets | ¥ (1,547) | ||||
Total assets | (1,547) | ||||
Liabilities and shareholders' equity | |||||
Accumulated deficit | (1,547) | ||||
Total liabilities and shareholders' equity | (1,547) | ||||
Sales and marketing expenses | (1,547) | ||||
Total operating expenses | (1,547) | ||||
Net income (loss) attributable to KE Holdings Inc.'s ordinary shareholders | ¥ (1,547) |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Property, plant and equipment, net (Details) | Dec. 31, 2023 |
Vehicles | |
Property, plant and equipment, net | |
Estimated useful life | 4 years |
Maximum | Office building | |
Property, plant and equipment, net | |
Estimated useful life | 40 years |
Maximum | Computer equipment | |
Property, plant and equipment, net | |
Estimated useful life | 5 years |
Maximum | Furniture and office equipment | |
Property, plant and equipment, net | |
Estimated useful life | 5 years |
Minimum | Office building | |
Property, plant and equipment, net | |
Estimated useful life | 20 years |
Minimum | Computer equipment | |
Property, plant and equipment, net | |
Estimated useful life | 3 years |
Minimum | Furniture and office equipment | |
Property, plant and equipment, net | |
Estimated useful life | 3 years |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES (Details) ¥ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Apr. 20, 2022 segment | Jul. 31, 2005 | Dec. 31, 2023 CNY (¥) customer item segment $ / ¥ | Dec. 31, 2023 USD ($) customer item segment | Dec. 31, 2022 CNY (¥) customer | Dec. 31, 2022 USD ($) customer | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | |
Significant accounting policies | ||||||||
Convenience translation rate (USD to RMB) | $ / ¥ | 7.0999 | |||||||
Appropriation to statutory reserves | ¥ 150,300 | ¥ 176,900 | ¥ 91,100 | |||||
Appropriation to other reserve fund | $ | $ 0 | $ 0 | $ 0 | |||||
Advertising expenses | 2,030,800 | 1,340,200 | 2,038,400 | |||||
Increase or (decrease) in employee welfare benefit expenses, net impact of additions and reversals of the provisions | (1,598,400) | 621,000 | 805,000 | |||||
Employee welfare benefit expenses, including the provision's net impact | ¥ 1,200,000 | 3,000,000 | 3,400,000 | |||||
Number of chief operational officers included in management committee | item | 2 | 2 | ||||||
Number of operating segments | segment | 4 | 4 | 4 | |||||
Government grants | ¥ 762,070 | 668,372 | ¥ 1,059,907 | |||||
Accounts receivable, net | ¥ 3,017,506 | ¥ 4,075,421 | ||||||
RMB appreciated against US$ (as a percent) | 2.90% | 2.90% | ||||||
Accounts receivable and contract assets | ||||||||
Significant accounting policies | ||||||||
Expected credit loss rate | 34.60% | 33.40% | ||||||
Financing receivables | ||||||||
Significant accounting policies | ||||||||
Expected credit loss rate | 8.30% | 17.30% | ||||||
Other receivables | ||||||||
Significant accounting policies | ||||||||
Expected credit loss rate | 14.30% | 8.20% | ||||||
Minimum | ||||||||
Significant accounting policies | ||||||||
RMB appreciated against US$ (as a percent) | 20% | |||||||
Accounts receivable | Credit concentration risk | ||||||||
Significant accounting policies | ||||||||
Number of customer | customer | 1 | 1 | 1 | 1 | ||||
Accounts receivable, net | ¥ 380,000 | ¥ 788,000 | ||||||
Cash and cash equivalents, restricted cash and short term investments denominated in RMB | Currency convertibility risk | ||||||||
Significant accounting policies | ||||||||
Cash and cash equivalents, restricted cash and short-term investments | ¥ 51,200,000 | ¥ 47,000,000 |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - Intangible assets, net (Details) | Dec. 31, 2023 |
Advertising resources | |
Intangible assets, net | |
Estimated useful lives of intangible assets | 5 years |
Maximum | |
Intangible assets, net | |
Estimated useful lives of intangible assets | 47 years |
Maximum | Software | |
Intangible assets, net | |
Estimated useful lives of intangible assets | 10 years |
Maximum | Trademarks and domain names | |
Intangible assets, net | |
Estimated useful lives of intangible assets | 10 years |
Maximum | Customer relationships | |
Intangible assets, net | |
Estimated useful lives of intangible assets | 5 years |
Maximum | Non-competition agreements | |
Intangible assets, net | |
Estimated useful lives of intangible assets | 5 years |
Maximum | Licenses | |
Intangible assets, net | |
Estimated useful lives of intangible assets | 10 years |
Minimum | |
Intangible assets, net | |
Estimated useful lives of intangible assets | 44 years |
Minimum | Software | |
Intangible assets, net | |
Estimated useful lives of intangible assets | 3 years |
Minimum | Trademarks and domain names | |
Intangible assets, net | |
Estimated useful lives of intangible assets | 3 years |
Minimum | Customer relationships | |
Intangible assets, net | |
Estimated useful lives of intangible assets | 3 years |
Minimum | Non-competition agreements | |
Intangible assets, net | |
Estimated useful lives of intangible assets | 3 years |
Minimum | Licenses | |
Intangible assets, net | |
Estimated useful lives of intangible assets | 6 years |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES - Leases (Details) | Dec. 31, 2023 | Oct. 31, 2023 |
Change in method of accounting | ||
Term of the rental contracts for the sales stores and offices | 40 years | 40 years |
Term of the agreements with tenants | 1 year | |
Minimum | ||
Change in method of accounting | ||
Estimated useful life | 44 years | |
Maximum | ||
Change in method of accounting | ||
Term of the rental contracts for the sales stores and offices | 10 years | |
Estimated useful life | 47 years |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES - Revenue recognition (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue recognition | |||
Amount of revenue recognized | ¥ 2,749,400,000 | ||
Contract liabilities: | |||
Contract liabilities | 4,665,201,000 | ¥ 3,260,269,000 | |
Capitalized costs of obtaining contracts with customers | 338,811,000 | 155,636,000 | |
Impairment losses of capitalized costs of obtaining contracts with customers | ¥ 0 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |||
Revenue recognition | |||
Period of revenue remaining performance obligation expected timing of satisfaction | 12 months | ||
Sales and marketing expenses | |||
Contract liabilities: | |||
Amortization of contract costs | ¥ 587,200,000 | 258,500,000 | ¥ 0 |
Existing home transaction services | |||
Contract liabilities: | |||
Contract liabilities | 178,856,000 | 174,472,000 | |
New home transaction services | |||
Contract liabilities: | |||
Contract liabilities | 941,326,000 | 1,119,534,000 | |
Home renovation and furnishing | |||
Contract liabilities: | |||
Contract liabilities | 2,363,394,000 | 1,488,294,000 | |
Emerging and other services | |||
Contract liabilities: | |||
Contract liabilities | ¥ 1,181,625,000 | ¥ 477,969,000 |
SIGNIFICANT ACCOUNTING POLIC_10
SIGNIFICANT ACCOUNTING POLICIES - Income taxes (Details) - CNY (¥) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Income taxes | |||
Unrecognized tax benefits accrued for interest and penalties | ¥ 0 | ¥ 0 | ¥ 0 |
SIGNIFICANT ACCOUNTING POLIC_11
SIGNIFICANT ACCOUNTING POLICIES - Concentration and risks (Details) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) Institution | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Concentration Risk | ||||
Number of financial institutions | Institution | 5 | |||
Allowance for doubtful accounts | ¥ 1,566,129 | ¥ 1,951,419 | ¥ 2,151,271 | ¥ 1,122,218 |
Allowance for credit loss, receivable, other, current | 227,000 | |||
Accounts receivable and other receivable | ¥ 174,000 | |||
Cash, Cash Equivalents and Short Term Investments | Geographic Concentration Risk | CN | Financial Institution One | ||||
Concentration Risk | ||||
Concentration risk, percentage | 24% | |||
Cash, Cash Equivalents and Short Term Investments | Geographic Concentration Risk | CN | Financial Institution Two | ||||
Concentration Risk | ||||
Concentration risk, percentage | 16% | |||
Cash, Cash Equivalents and Short Term Investments | Geographic Concentration Risk | CN | Financial Institution Three | ||||
Concentration Risk | ||||
Concentration risk, percentage | 11% | |||
Cash, Cash Equivalents and Short Term Investments | Geographic Concentration Risk | CN | Financial Institution Four | ||||
Concentration Risk | ||||
Concentration risk, percentage | 11% | |||
Cash, Cash Equivalents and Short Term Investments | Geographic Concentration Risk | CN | Financial Institution Five | ||||
Concentration Risk | ||||
Concentration risk, percentage | 10% |
CASH, CASH EQUIVALENTS, RESTR_3
CASH, CASH EQUIVALENTS, RESTRICTED CASH (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) |
Cash and cash equivalents (i): | |||||||
Cash | ¥ 17,994,611 | ¥ 18,641,806 | |||||
Cash equivalents | 1,640,105 | 771,396 | |||||
Restricted cash (ii): | |||||||
Current | 6,222,745 | $ 876,455 | 6,181,057 | $ 870,584 | ¥ 6,286,105 | ¥ 8,567,496 | |
Total cash, cash equivalents and restricted cash | ¥ 25,857,461 | $ 3,641,947 | ¥ 25,594,259 | $ 3,604,876 | ¥ 26,732,209 | ¥ 49,537,475 | |
Weighted average interest rate on cash equivalent | 3.90% | 3.90% | 3.60% | 3.60% | 0.80% | ||
Cash received from the property buyers but not yet been paid to the sellers through the Group's online payment platform, which is placed with banks in escrow accounts | |||||||
Restricted cash (ii): | |||||||
Proportion of type of restricted cash (as a percent) | 76.20% | 76.20% | 77.40% | 77.40% | |||
Security deposits for the Group's guarantee and financing services | |||||||
Restricted cash (ii): | |||||||
Proportion of type of restricted cash (as a percent) | 19.10% | 19.10% | 12.40% | 12.40% | |||
Borrowings from commercial banks | |||||||
Restricted cash (ii): | |||||||
Proportion of type of restricted cash (as a percent) | 4.50% | 4.50% | 10% | 10% | |||
Other miscellaneous restricted cash | |||||||
Restricted cash (ii): | |||||||
Proportion of type of restricted cash (as a percent) | 0.20% | 0.20% | 0.20% | 0.20% |
SHORT-TERM INVESTMENTS (Details
SHORT-TERM INVESTMENTS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | |
SHORT-TERM INVESTMENTS. | |||||
Bank time deposits | ¥ 7,690,166 | ¥ 3,911,410 | |||
Wealth management products | 26,415,902 | 26,491,683 | |||
Short-term held-to-maturity debt investments | 151,890 | 3,631,732 | |||
Available-for-sale debt investments | 1,380,668 | ||||
Listed equity securities | 70,415 | ||||
Total | 34,257,958 | 35,485,908 | $ 4,825,132 | ||
Proceeds received from sales of available-for-sale debt investments | ¥ 1,392,881 | $ 196,183 | ¥ 2,928,668 | ¥ 715,957 |
SHORT-TERM INVESTMENTS - Held-t
SHORT-TERM INVESTMENTS - Held-to-maturity and available-for-sale debt investments (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Held-to-maturity debt investments | |||
Cost or amortized cost less allowance for credit losses | ¥ 151,890 | ¥ 3,631,732 | |
Gross unrecognized holding gains | 0 | ||
Gross unrealized losses | (28,362) | ||
Fair value | 1,701,240 | ||
Held-to-maturity debt investments | |||
Held-to-maturity debt investments | |||
Cost or amortized cost less allowance for credit losses | 151,890 | ||
Gross unrealized losses | (7,757) | ||
Fair value | ¥ 144,133 | $ 20,350 |
PREPAYMENTS, RECEIVABLES AND _3
PREPAYMENTS, RECEIVABLES AND OTHER ASSETS (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Jan. 31, 2024 CNY (¥) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Jan. 16, 2024 | Dec. 31, 2023 USD ($) | Oct. 31, 2023 CNY (¥) | Oct. 08, 2023 CNY (¥) | |
Current: | ||||||||
Advances to suppliers | ¥ 574,170 | ¥ 618,694 | ||||||
Deposits paid to real estate developers (i) | 222,604 | 530,308 | ||||||
Prepaid rental and other deposits | 1,625,026 | 1,243,443 | ||||||
Receivables from escrow account | 6,676 | 34,118 | ||||||
Interests receivable | 14,664 | 11,035 | ||||||
VATinput deductible | 707,416 | 660,104 | ||||||
Prepaid income tax | 177,560 | 108,972 | ||||||
Inventories | 304,208 | 127,558 | ||||||
Capitalized costs of obtaining contracts | 338,811 | 155,636 | ||||||
Others | 630,588 | 499,940 | ||||||
Total | 4,666,976 | 4,057,843 | $ 657,331 | |||||
Noncurrent: | ||||||||
Deferred tax asset (Note 18) | 1,113,692 | 856,958 | ||||||
VAT-input deductible | 192,991 | 169,879 | ||||||
Prepayment for land use right | 154,575 | 0 | ||||||
Others | 11,783 | 5,414 | ||||||
Total | ¥ 1,473,041 | 1,032,251 | $ 207,474 | |||||
Purchase of land use right terms | 40 years | 40 years | 40 years | |||||
Total undiscounted lease payments | ¥ 18,408,496 | ¥ 309,000 | ¥ 309,000 | |||||
Operating lease, percentage of consideration | 50% | 50% | ||||||
Operating cash flows payment from operating leases | ¥ 7,965,277 | 3,652,435 | ¥ 3,413,301 | |||||
Operating cash flows payment from operating leases | 154,600 | |||||||
Subsequent Event | ||||||||
Noncurrent: | ||||||||
Operating lease, percentage of consideration | 50% | |||||||
Operating cash flows payment from operating leases | ¥ 154,600 | |||||||
Related Party | ||||||||
Current: | ||||||||
Amounts due from subsidiaries and VIEs | 419,270 | 405,956 | $ 59,053 | |||||
Employees [Member] | ||||||||
Current: | ||||||||
Amounts due from subsidiaries and VIEs | ¥ 65,253 | ¥ 68,035 |
ACCOUNTS RECEIVABLE AND CONTR_3
ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts receivable, net | ||||
Accounts receivable | ¥ 4,583,635 | ¥ 6,026,840 | ||
Allowance for credit losses | (1,566,129) | (1,951,419) | ¥ (2,151,271) | ¥ (1,122,218) |
Accounts receivable, net | 3,017,506 | 4,075,421 | ||
New home transaction services | ||||
Accounts receivable, net | ||||
Accounts receivable | 3,750,996 | 5,406,009 | ||
Existing home transaction services | ||||
Accounts receivable, net | ||||
Accounts receivable | 483,901 | 385,231 | ||
Home renovation and furnishing | ||||
Accounts receivable, net | ||||
Accounts receivable | 99,935 | 103,641 | ||
Emerging and other services | ||||
Accounts receivable, net | ||||
Accounts receivable | ¥ 248,803 | ¥ 131,959 |
ACCOUNTS RECEIVABLE AND CONTR_4
ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET - Contract assets, net (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Contract assets, net | ||
Contract assets - gross | ¥ 273,661 | ¥ 224,660 |
Allowance for credit losses | (114,998) | (137,059) |
Contract assets, net | ¥ 158,663 | ¥ 87,601 |
ACCOUNTS RECEIVABLE AND CONTR_5
ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET - Movements in the allowance for doubtful accounts (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Movements in the allowance for doubtful accounts | |||
Balance at the beginning of the year | ¥ (1,951,419) | ¥ (2,151,271) | ¥ (1,122,218) |
Reversal/(Additions) | (174,237) | 76,184 | (1,216,517) |
Write-offs | 559,527 | 123,668 | 187,464 |
Balance at the end of the year | ¥ (1,566,129) | ¥ (1,951,419) | ¥ (2,151,271) |
ACCOUNTS RECEIVABLE AND CONTR_6
ACCOUNTS RECEIVABLE AND CONTRACT ASSETS, NET - Ageing analysis of accounts receivable (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Ageing analysis of accounts receivable | ||
Accounts receivable | ¥ 4,583,635 | ¥ 6,026,840 |
Less: allowance for credit losses | (1,566,129) | (1,951,419) |
Accounts receivable, net | 3,017,506 | 4,075,421 |
Up to 3 months | ||
Ageing analysis of accounts receivable | ||
Accounts receivable | 2,056,388 | 2,389,431 |
3 months to 1 year | ||
Ageing analysis of accounts receivable | ||
Accounts receivable | 617,635 | 1,161,639 |
Over 1 year | ||
Ageing analysis of accounts receivable | ||
Accounts receivable | ¥ 1,909,612 | ¥ 2,475,770 |
FINANCING RECEIVABLES, NET (Det
FINANCING RECEIVABLES, NET (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Shortterm: | |||
Allowance for credit losses | ¥ (122,482) | ¥ (139,427) | |
Nonrelated Party | |||
Shortterm: | |||
Short-term financing receivables | 1,470,241 | 806,651 | |
Allowance for credit losses | (122,482) | (139,427) | |
Total short-term financing receivables, net | 1,347,759 | $ 189,828 | 667,224 |
Financing receivables from consolidated Trusts | Nonrelated Party | |||
Shortterm: | |||
Short-term financing receivables | 1,316,432 | 623,872 | |
Financing receivables from microloan platforms | Nonrelated Party | |||
Shortterm: | |||
Short-term financing receivables | ¥ 153,809 | ¥ 182,779 |
FINANCING RECEIVABLES, NET - Ac
FINANCING RECEIVABLES, NET - Activities in the provision for credit losses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Financing Receivable, Provision for credit losses | ||||
Beginning balance | ¥ (139,427) | ¥ (131,762) | ||
(Provisions) Reversals | 7,573 | $ 1,067 | (18,658) | ¥ (124,335) |
Write-offs | 9,372 | 10,993 | 119,892 | |
Ending balance | (122,482) | (139,427) | (131,762) | |
Adjusted balance after adjustment for change in accounting standard | ||||
Financing Receivable, Provision for credit losses | ||||
Beginning balance | ¥ (139,427) | (131,762) | (127,319) | |
Ending balance | ¥ (139,427) | ¥ (131,762) |
FINANCING RECEIVABLES, NET - Ag
FINANCING RECEIVABLES, NET - Aging analysis based on customer type, origination year and delinquency (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financing receivables, net | ||
Financial receivables | ¥ 1,470,241 | ¥ 806,651 |
Property transaction related business | ||
Financing receivables, net | ||
Financial receivables | 1,423,016 | 754,238 |
Property transaction related business | 2017 | ||
Financing receivables, net | ||
Financial receivables | 32,037 | |
Property transaction related business | 2018 | ||
Financing receivables, net | ||
Financial receivables | 31,215 | 19,931 |
Property transaction related business | 2019 | ||
Financing receivables, net | ||
Financial receivables | 13,222 | 19,023 |
Property transaction related business | 2020 | ||
Financing receivables, net | ||
Financial receivables | 12,618 | 57,261 |
Property transaction related business | 2021 | ||
Financing receivables, net | ||
Financial receivables | 46,333 | 625,986 |
Property transaction related business | 2022 | ||
Financing receivables, net | ||
Financial receivables | 3,740 | |
Property transaction related business | 2023 | ||
Financing receivables, net | ||
Financial receivables | 1,315,888 | |
Non-property transaction related business | ||
Financing receivables, net | ||
Financial receivables | 47,225 | 52,413 |
Non-property transaction related business | 2017 | ||
Financing receivables, net | ||
Financial receivables | 3,954 | |
Non-property transaction related business | 2018 | ||
Financing receivables, net | ||
Financial receivables | 4,731 | 34,100 |
Non-property transaction related business | 2019 | ||
Financing receivables, net | ||
Financial receivables | 31,137 | 4,480 |
Non-property transaction related business | 2020 | ||
Financing receivables, net | ||
Financial receivables | 4,079 | 9,089 |
Non-property transaction related business | 2021 | ||
Financing receivables, net | ||
Financial receivables | 6,914 | 790 |
Non-property transaction related business | 2022 | ||
Financing receivables, net | ||
Financial receivables | 364 | |
Total Past Due | ||
Financing receivables, net | ||
Financial receivables | 161,688 | 181,631 |
Total Past Due | Property transaction related business | ||
Financing receivables, net | ||
Financial receivables | 114,463 | 135,029 |
Total Past Due | Property transaction related business | 2017 | ||
Financing receivables, net | ||
Financial receivables | 32,037 | |
Total Past Due | Property transaction related business | 2018 | ||
Financing receivables, net | ||
Financial receivables | 31,215 | 19,931 |
Total Past Due | Property transaction related business | 2019 | ||
Financing receivables, net | ||
Financial receivables | 13,222 | 19,023 |
Total Past Due | Property transaction related business | 2020 | ||
Financing receivables, net | ||
Financial receivables | 12,618 | 57,261 |
Total Past Due | Property transaction related business | 2021 | ||
Financing receivables, net | ||
Financial receivables | 46,333 | 6,777 |
Total Past Due | Property transaction related business | 2022 | ||
Financing receivables, net | ||
Financial receivables | 3,740 | |
Total Past Due | Property transaction related business | 2023 | ||
Financing receivables, net | ||
Financial receivables | 7,335 | |
Total Past Due | Non-property transaction related business | ||
Financing receivables, net | ||
Financial receivables | 47,225 | 46,602 |
Total Past Due | Non-property transaction related business | 2017 | ||
Financing receivables, net | ||
Financial receivables | 3,954 | |
Total Past Due | Non-property transaction related business | 2018 | ||
Financing receivables, net | ||
Financial receivables | 4,731 | 34,100 |
Total Past Due | Non-property transaction related business | 2019 | ||
Financing receivables, net | ||
Financial receivables | 31,137 | 4,469 |
Total Past Due | Non-property transaction related business | 2020 | ||
Financing receivables, net | ||
Financial receivables | 4,079 | 3,289 |
Total Past Due | Non-property transaction related business | 2021 | ||
Financing receivables, net | ||
Financial receivables | 6,914 | 790 |
Total Past Due | Non-property transaction related business | 2022 | ||
Financing receivables, net | ||
Financial receivables | 364 | |
1-29 Days Past Due | ||
Financing receivables, net | ||
Financial receivables | 5,545 | 3,106 |
1-29 Days Past Due | Property transaction related business | ||
Financing receivables, net | ||
Financial receivables | 5,545 | 2,980 |
1-29 Days Past Due | Property transaction related business | 2017 | ||
Financing receivables, net | ||
Financial receivables | 0 | |
1-29 Days Past Due | Property transaction related business | 2018 | ||
Financing receivables, net | ||
Financial receivables | 0 | 0 |
1-29 Days Past Due | Property transaction related business | 2019 | ||
Financing receivables, net | ||
Financial receivables | 0 | 0 |
1-29 Days Past Due | Property transaction related business | 2020 | ||
Financing receivables, net | ||
Financial receivables | 0 | 0 |
1-29 Days Past Due | Property transaction related business | 2021 | ||
Financing receivables, net | ||
Financial receivables | 0 | 2,980 |
1-29 Days Past Due | Property transaction related business | 2022 | ||
Financing receivables, net | ||
Financial receivables | 0 | |
1-29 Days Past Due | Property transaction related business | 2023 | ||
Financing receivables, net | ||
Financial receivables | 5,545 | |
1-29 Days Past Due | Non-property transaction related business | ||
Financing receivables, net | ||
Financial receivables | 0 | 126 |
1-29 Days Past Due | Non-property transaction related business | 2017 | ||
Financing receivables, net | ||
Financial receivables | 0 | |
1-29 Days Past Due | Non-property transaction related business | 2018 | ||
Financing receivables, net | ||
Financial receivables | 0 | 82 |
1-29 Days Past Due | Non-property transaction related business | 2019 | ||
Financing receivables, net | ||
Financial receivables | 0 | 0 |
1-29 Days Past Due | Non-property transaction related business | 2020 | ||
Financing receivables, net | ||
Financial receivables | 0 | 0 |
1-29 Days Past Due | Non-property transaction related business | 2021 | ||
Financing receivables, net | ||
Financial receivables | 0 | 44 |
1-29 Days Past Due | Non-property transaction related business | 2022 | ||
Financing receivables, net | ||
Financial receivables | 0 | |
30-59 Days Past Due | ||
Financing receivables, net | ||
Financial receivables | 0 | 912 |
30-59 Days Past Due | Property transaction related business | ||
Financing receivables, net | ||
Financial receivables | 0 | 0 |
30-59 Days Past Due | Property transaction related business | 2017 | ||
Financing receivables, net | ||
Financial receivables | 0 | |
30-59 Days Past Due | Property transaction related business | 2018 | ||
Financing receivables, net | ||
Financial receivables | 0 | 0 |
30-59 Days Past Due | Property transaction related business | 2019 | ||
Financing receivables, net | ||
Financial receivables | 0 | 0 |
30-59 Days Past Due | Property transaction related business | 2020 | ||
Financing receivables, net | ||
Financial receivables | 0 | 0 |
30-59 Days Past Due | Property transaction related business | 2021 | ||
Financing receivables, net | ||
Financial receivables | 0 | 0 |
30-59 Days Past Due | Property transaction related business | 2022 | ||
Financing receivables, net | ||
Financial receivables | 0 | |
30-59 Days Past Due | Property transaction related business | 2023 | ||
Financing receivables, net | ||
Financial receivables | 0 | |
30-59 Days Past Due | Non-property transaction related business | ||
Financing receivables, net | ||
Financial receivables | 0 | 912 |
30-59 Days Past Due | Non-property transaction related business | 2017 | ||
Financing receivables, net | ||
Financial receivables | 0 | |
30-59 Days Past Due | Non-property transaction related business | 2018 | ||
Financing receivables, net | ||
Financial receivables | 0 | 804 |
30-59 Days Past Due | Non-property transaction related business | 2019 | ||
Financing receivables, net | ||
Financial receivables | 0 | 0 |
30-59 Days Past Due | Non-property transaction related business | 2020 | ||
Financing receivables, net | ||
Financial receivables | 0 | 0 |
30-59 Days Past Due | Non-property transaction related business | 2021 | ||
Financing receivables, net | ||
Financial receivables | 0 | 108 |
30-59 Days Past Due | Non-property transaction related business | 2022 | ||
Financing receivables, net | ||
Financial receivables | 0 | |
60-89 Days Past Due | ||
Financing receivables, net | ||
Financial receivables | 0 | 4,505 |
60-89 Days Past Due | Property transaction related business | ||
Financing receivables, net | ||
Financial receivables | 0 | 0 |
60-89 Days Past Due | Property transaction related business | 2017 | ||
Financing receivables, net | ||
Financial receivables | 0 | |
60-89 Days Past Due | Property transaction related business | 2018 | ||
Financing receivables, net | ||
Financial receivables | 0 | 0 |
60-89 Days Past Due | Property transaction related business | 2019 | ||
Financing receivables, net | ||
Financial receivables | 0 | 0 |
60-89 Days Past Due | Property transaction related business | 2020 | ||
Financing receivables, net | ||
Financial receivables | 0 | 0 |
60-89 Days Past Due | Property transaction related business | 2021 | ||
Financing receivables, net | ||
Financial receivables | 0 | 0 |
60-89 Days Past Due | Property transaction related business | 2022 | ||
Financing receivables, net | ||
Financial receivables | 0 | |
60-89 Days Past Due | Property transaction related business | 2023 | ||
Financing receivables, net | ||
Financial receivables | 0 | |
60-89 Days Past Due | Non-property transaction related business | ||
Financing receivables, net | ||
Financial receivables | 0 | 4,505 |
60-89 Days Past Due | Non-property transaction related business | 2017 | ||
Financing receivables, net | ||
Financial receivables | 0 | |
60-89 Days Past Due | Non-property transaction related business | 2018 | ||
Financing receivables, net | ||
Financial receivables | 0 | 4,447 |
60-89 Days Past Due | Non-property transaction related business | 2019 | ||
Financing receivables, net | ||
Financial receivables | 0 | 3 |
60-89 Days Past Due | Non-property transaction related business | 2020 | ||
Financing receivables, net | ||
Financial receivables | 0 | 0 |
60-89 Days Past Due | Non-property transaction related business | 2021 | ||
Financing receivables, net | ||
Financial receivables | 0 | 55 |
60-89 Days Past Due | Non-property transaction related business | 2022 | ||
Financing receivables, net | ||
Financial receivables | 0 | |
90-179 Days Past Due | ||
Financing receivables, net | ||
Financial receivables | 2,363 | 19,057 |
90-179 Days Past Due | Property transaction related business | ||
Financing receivables, net | ||
Financial receivables | 763 | 2,963 |
90-179 Days Past Due | Property transaction related business | 2017 | ||
Financing receivables, net | ||
Financial receivables | 0 | |
90-179 Days Past Due | Property transaction related business | 2018 | ||
Financing receivables, net | ||
Financial receivables | 0 | 0 |
90-179 Days Past Due | Property transaction related business | 2019 | ||
Financing receivables, net | ||
Financial receivables | 0 | 0 |
90-179 Days Past Due | Property transaction related business | 2020 | ||
Financing receivables, net | ||
Financial receivables | 0 | 0 |
90-179 Days Past Due | Property transaction related business | 2021 | ||
Financing receivables, net | ||
Financial receivables | 0 | 2,963 |
90-179 Days Past Due | Property transaction related business | 2022 | ||
Financing receivables, net | ||
Financial receivables | 0 | |
90-179 Days Past Due | Property transaction related business | 2023 | ||
Financing receivables, net | ||
Financial receivables | 763 | |
90-179 Days Past Due | Non-property transaction related business | ||
Financing receivables, net | ||
Financial receivables | 1,600 | 16,094 |
90-179 Days Past Due | Non-property transaction related business | 2017 | ||
Financing receivables, net | ||
Financial receivables | 0 | |
90-179 Days Past Due | Non-property transaction related business | 2018 | ||
Financing receivables, net | ||
Financial receivables | 0 | 15,547 |
90-179 Days Past Due | Non-property transaction related business | 2019 | ||
Financing receivables, net | ||
Financial receivables | 0 | 0 |
90-179 Days Past Due | Non-property transaction related business | 2020 | ||
Financing receivables, net | ||
Financial receivables | 0 | 3 |
90-179 Days Past Due | Non-property transaction related business | 2021 | ||
Financing receivables, net | ||
Financial receivables | 1,600 | 544 |
90-179 Days Past Due | Non-property transaction related business | 2022 | ||
Financing receivables, net | ||
Financial receivables | 0 | |
180 days or greater Past Due | ||
Financing receivables, net | ||
Financial receivables | 153,780 | 154,051 |
180 days or greater Past Due | Property transaction related business | ||
Financing receivables, net | ||
Financial receivables | 108,155 | 129,086 |
180 days or greater Past Due | Property transaction related business | 2017 | ||
Financing receivables, net | ||
Financial receivables | 32,037 | |
180 days or greater Past Due | Property transaction related business | 2018 | ||
Financing receivables, net | ||
Financial receivables | 31,215 | 19,931 |
180 days or greater Past Due | Property transaction related business | 2019 | ||
Financing receivables, net | ||
Financial receivables | 13,222 | 19,023 |
180 days or greater Past Due | Property transaction related business | 2020 | ||
Financing receivables, net | ||
Financial receivables | 12,618 | 57,261 |
180 days or greater Past Due | Property transaction related business | 2021 | ||
Financing receivables, net | ||
Financial receivables | 46,333 | 834 |
180 days or greater Past Due | Property transaction related business | 2022 | ||
Financing receivables, net | ||
Financial receivables | 3,740 | |
180 days or greater Past Due | Property transaction related business | 2023 | ||
Financing receivables, net | ||
Financial receivables | 1,027 | |
180 days or greater Past Due | Non-property transaction related business | ||
Financing receivables, net | ||
Financial receivables | 45,625 | 24,965 |
180 days or greater Past Due | Non-property transaction related business | 2017 | ||
Financing receivables, net | ||
Financial receivables | 3,954 | |
180 days or greater Past Due | Non-property transaction related business | 2018 | ||
Financing receivables, net | ||
Financial receivables | 4,731 | 13,220 |
180 days or greater Past Due | Non-property transaction related business | 2019 | ||
Financing receivables, net | ||
Financial receivables | 31,137 | 4,466 |
180 days or greater Past Due | Non-property transaction related business | 2020 | ||
Financing receivables, net | ||
Financial receivables | 4,079 | 3,286 |
180 days or greater Past Due | Non-property transaction related business | 2021 | ||
Financing receivables, net | ||
Financial receivables | 5,314 | 39 |
180 days or greater Past Due | Non-property transaction related business | 2022 | ||
Financing receivables, net | ||
Financial receivables | 364 | |
Current | ||
Financing receivables, net | ||
Financial receivables | 1,308,553 | 625,020 |
Current | Property transaction related business | ||
Financing receivables, net | ||
Financial receivables | 1,308,553 | 619,209 |
Current | Property transaction related business | 2017 | ||
Financing receivables, net | ||
Financial receivables | 0 | |
Current | Property transaction related business | 2018 | ||
Financing receivables, net | ||
Financial receivables | 0 | 0 |
Current | Property transaction related business | 2019 | ||
Financing receivables, net | ||
Financial receivables | 0 | 0 |
Current | Property transaction related business | 2020 | ||
Financing receivables, net | ||
Financial receivables | 0 | 0 |
Current | Property transaction related business | 2021 | ||
Financing receivables, net | ||
Financial receivables | 0 | 619,209 |
Current | Property transaction related business | 2022 | ||
Financing receivables, net | ||
Financial receivables | 0 | |
Current | Property transaction related business | 2023 | ||
Financing receivables, net | ||
Financial receivables | 1,308,553 | |
Current | Non-property transaction related business | ||
Financing receivables, net | ||
Financial receivables | 0 | 5,811 |
Current | Non-property transaction related business | 2017 | ||
Financing receivables, net | ||
Financial receivables | 0 | |
Current | Non-property transaction related business | 2018 | ||
Financing receivables, net | ||
Financial receivables | 0 | 0 |
Current | Non-property transaction related business | 2019 | ||
Financing receivables, net | ||
Financial receivables | 0 | 11 |
Current | Non-property transaction related business | 2020 | ||
Financing receivables, net | ||
Financial receivables | 0 | 5,800 |
Current | Non-property transaction related business | 2021 | ||
Financing receivables, net | ||
Financial receivables | 0 | ¥ 0 |
Current | Non-property transaction related business | 2022 | ||
Financing receivables, net | ||
Financial receivables | ¥ 0 |
FINANCING RECEIVABLES, NET - Ad
FINANCING RECEIVABLES, NET - Additional Information (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Financing receivables, net | ||
Allowance for credit losses as a percentage of gross finance receivables (net of unearned income) | 8.30% | 17.30% |
Delinquency rate (as a percent) | 11% | 22.50% |
Property transaction related business | ||
Financing receivables, net | ||
Average credit loss rate (as a percent) | 7% | |
Non-property transaction related business | ||
Financing receivables, net | ||
Average credit loss rate (as a percent) | 47.90% |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | |
Property, plant and equipment, net | |||||
Property and equipment gross | ¥ 5,143,677 | ¥ 4,805,293 | |||
Less: accumulated depreciation | (3,159,307) | (2,749,468) | |||
Less: accumulated impairment | (19,272) | (19,272) | |||
Net book value | 1,965,098 | 2,036,553 | $ 276,778 | ||
Depreciation expense | 775,042 | $ 109,162 | 918,261 | ¥ 879,729 | |
Office building | |||||
Property, plant and equipment, net | |||||
Property and equipment gross | 689,703 | 707,693 | |||
Vehicles | |||||
Property, plant and equipment, net | |||||
Property and equipment gross | 22,085 | 21,821 | |||
Computer equipment | |||||
Property, plant and equipment, net | |||||
Property and equipment gross | 1,046,672 | 1,049,049 | |||
Furniture and office equipment | |||||
Property, plant and equipment, net | |||||
Property and equipment gross | 373,893 | 387,781 | |||
Leasehold improvement | |||||
Property, plant and equipment, net | |||||
Property and equipment gross | 2,717,396 | 2,444,146 | |||
Construction in progress | |||||
Property, plant and equipment, net | |||||
Property and equipment gross | ¥ 293,928 | ¥ 194,803 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
INTANGIBLE ASSETS, NET | |||
Total | ¥ 4,139,775 | ¥ 4,103,613 | |
Less: accumulated amortization | (2,815,803) | (2,158,991) | |
Less: accumulated impairment | (256,513) | (257,646) | |
Net book value | 1,067,459 | $ 150,348 | 1,686,976 |
Software | |||
INTANGIBLE ASSETS, NET | |||
Total | 115,297 | 116,229 | |
Trademarks and domain names | |||
INTANGIBLE ASSETS, NET | |||
Total | 1,195,161 | 1,194,482 | |
Customer relationships | |||
INTANGIBLE ASSETS, NET | |||
Total | 4,080 | ||
Non-competition agreements | |||
INTANGIBLE ASSETS, NET | |||
Total | 460 | 1,300 | |
Advertising resources | |||
INTANGIBLE ASSETS, NET | |||
Total | 2,478,945 | 2,437,610 | |
License | |||
INTANGIBLE ASSETS, NET | |||
Total | ¥ 349,912 | ¥ 349,912 |
INTANGIBLE ASSETS, NET - Additi
INTANGIBLE ASSETS, NET - Additional information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
INTANGIBLE ASSETS, NET | ||||
Amortization expenses | ¥ 627,100 | $ 88,332 | ¥ 584,460 | ¥ 491,032 |
INTANGIBLE ASSETS, NET - Estima
INTANGIBLE ASSETS, NET - Estimated amortization expense (Details) ¥ in Thousands | Dec. 31, 2023 CNY (¥) |
Estimated amortization expenses | |
Within 1 year | ¥ 250,692 |
Between 1 and 2 years | 129,257 |
Between 2 and 3 years | 116,358 |
Between 3 and 4 years | 114,809 |
Thereafter | 456,343 |
Total | ¥ 1,067,459 |
LEASES - Components of lease co
LEASES - Components of lease cost (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
LEASES | |||
Operating lease cost | ¥ 7,785,841 | ¥ 4,216,897 | ¥ 3,586,026 |
Shortterm lease cost | 50,659 | 39,941 | 47,769 |
Total | ¥ 7,836,500 | ¥ 4,256,838 | ¥ 3,633,795 |
LEASES - Supplemental cash flow
LEASES - Supplemental cash flows information related to leases (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows payment from operating leases | ¥ 7,965,277 | ¥ 3,652,435 | ¥ 3,413,301 |
Rightofuse assets obtained in exchange for lease liabilities: | |||
Total rightofuse assets obtained in exchange for new operating lease liabilities | ¥ 15,489,351 | ¥ 11,427,030 | ¥ 5,749,581 |
LEASES - Supplemental balance s
LEASES - Supplemental balance sheet information related to leases (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 USD ($) | |
Leases | ||||
Right-of-use assets obtained in exchange for new operating lease liabilities | ¥ 15,489,351 | ¥ 11,427,030 | ¥ 5,749,581 | |
Operating leases | ||||
Operating lease assets | 17,617,915 | 11,284,070 | $ 2,481,431 | |
Lease liabilities current portion | 9,368,607 | 4,972,345 | 1,319,541 | |
Lease liabilities non-current portion | 8,327,113 | 6,599,930 | $ 1,172,849 | |
Total operating lease liabilities | 17,695,720 | 11,572,275 | ||
Land use rights | ||||
Operating leases | ||||
Operating lease assets | 83,242 | 85,188 | ||
Store leases | ||||
Leases | ||||
Right-of-use assets obtained in exchange for new operating lease liabilities | 3,262,410 | 4,054,404 | 4,341,144 | |
Operating leases | ||||
Operating lease assets | 5,460,840 | 5,269,031 | ||
Administrative office leases | ||||
Leases | ||||
Right-of-use assets obtained in exchange for new operating lease liabilities | 273,088 | 493,255 | 1,168,547 | |
Operating leases | ||||
Operating lease assets | 626,652 | 629,724 | ||
Leases of rental property management services | ||||
Leases | ||||
Right-of-use assets obtained in exchange for new operating lease liabilities | 11,953,853 | 6,879,371 | ¥ 239,890 | |
Operating leases | ||||
Operating lease assets | ¥ 11,447,181 | ¥ 5,300,127 |
LEASES - Weighted average remai
LEASES - Weighted average remaining lease term and discount rate (Details) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Weighted-average remaining lease term (in years) | |||
Operating leases | 2 years 5 months 5 days | 2 years 10 months 24 days | 3 years 3 months |
Weighted-average discount rate | |||
Operating leases | 4.30% | 4.50% | 4.80% |
Land use right | |||
Weighted-average remaining lease term (in years) | |||
Operating leases | 43 years 2 months 5 days | 44 years 2 months 1 day | 41 years 4 months 2 days |
Weighted-average discount rate | |||
Operating leases | 4.70% | 4.70% | 5.30% |
LEASES - Maturities of lease li
LEASES - Maturities of lease liabilities (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Oct. 31, 2023 | Oct. 08, 2023 | Dec. 31, 2022 |
LEASES | ||||
2024 | ¥ 9,645,224 | |||
2025 | 5,484,022 | |||
2026 | 1,618,295 | |||
2027 | 646,558 | |||
2028 | 356,789 | |||
Thereafter | 657,608 | |||
Total undiscounted lease payments | 18,408,496 | ¥ 309,000 | ¥ 309,000 | |
Less: imputed interest | (712,776) | |||
Total lease liabilities | ¥ 17,695,720 | ¥ 11,572,275 |
LEASES - Additional information
LEASES - Additional information (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
LEASES | |||
Operating lease income | ¥ 6,002.5 | ¥ 1,523 | ¥ 635.6 |
LEASES - Maturities of undiscou
LEASES - Maturities of undiscounted lease payments (Details) ¥ in Thousands | Dec. 31, 2023 CNY (¥) |
LEASES | |
2024 | ¥ 6,856,443 |
2025 | 868,460 |
2026 | 94,340 |
2027 | 17,366 |
2028 | 11,062 |
Thereafter | 35,344 |
Total undiscounted lease payments | ¥ 7,883,015 |
LONG-TERM INVESTMENTS, NET - Ch
LONG-TERM INVESTMENTS, NET - Changes in the long term investments (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) |
LONG-TERM INVESTMENTS, NET | |||||
Investments in equity method investees | ¥ 436,344 | ¥ 370,985 | ¥ 430,292 | ¥ 689,929 | |
Investments accounted for at fair value | 660,112 | 1,063,689 | |||
Equity investments without readily determinable fair value using the NAV practical expedient | 86,240 | 91,005 | |||
Equity investments without readily determinable fair value using the measurement alternative | 43,746 | 61,640 | |||
Long-term time deposits | 15,352,785 | 11,064,516 | |||
Held-to-maturity debt investments | 1,729,602 | 147,529 | |||
Available-for-sale debt investments | 5,262,159 | 5,126,289 | |||
Total long-term investments | ¥ 23,570,988 | $ 3,319,904 | ¥ 17,925,653 |
LONG-TERM INVESTMENTS, NET - In
LONG-TERM INVESTMENTS, NET - Investments in equity method investees (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
LONG-TERM INVESTMENTS, NET | ||||
Balance at beginning | ¥ 370,985 | ¥ 430,292 | ¥ 689,929 | |
Investments made | 183,253 | 12,188 | 258,990 | |
Income (loss) from investment | 9,098 | $ 1,281 | 44,588 | 39,520 |
Impairment loss for equity investments accounted for using equity method | (10,369) | $ (1,460) | (2,914) | |
Disposal of investment | (101,761) | (134,406) | (540,433) | |
Dividend received | (14,862) | (27,338) | (14,800) | |
Acquired in a business combination | 45,661 | |||
Balance at ending | ¥ 436,344 | ¥ 370,985 | ¥ 430,292 |
LONG-TERM INVESTMENTS, NET - _2
LONG-TERM INVESTMENTS, NET - Investments accounted for at fair values (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Oct. 31, 2017 |
LONG-TERM INVESTMENTS, NET | |||
Cost basis | ¥ 872,363 | ¥ 1,286,915 | |
Gross unrealized gains | 12,978 | 944 | |
Gross unrealized losses | (230,161) | (228,134) | |
Exchange adjustments | 4,932 | 3,964 | |
Fair value | 660,112 | 1,063,689 | |
Marketable securities | |||
LONG-TERM INVESTMENTS, NET | |||
Cost basis | 96,848 | 96,848 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | (69,035) | (63,678) | |
Exchange adjustments | 4,932 | 3,964 | |
Fair value | 32,745 | 37,134 | |
Wealth management product | |||
LONG-TERM INVESTMENTS, NET | |||
Cost basis | 537,500 | 937,500 | |
Gross unrealized gains | 12,200 | 500 | |
Gross unrealized losses | 0 | 0 | |
Exchange adjustments | 0 | 0 | |
Fair value | 549,700 | 938,000 | |
IFM Investments Limited | |||
LONG-TERM INVESTMENTS, NET | |||
Fair value | 57,100 | 58,800 | |
IFM Investments Limited | Unlisted equity securities | |||
LONG-TERM INVESTMENTS, NET | |||
Cost basis | 238,015 | ¥ 60,000 | |
Gross unrealized gains | 778 | ||
Gross unrealized losses | (161,126) | ||
Exchange adjustments | 0 | ||
Fair value | ¥ 77,667 | ||
IFM Investments Limited | Loan Receivable And Convertible Preferred Stock | |||
LONG-TERM INVESTMENTS, NET | |||
Cost basis | 252,567 | ||
Gross unrealized gains | 444 | ||
Gross unrealized losses | (164,456) | ||
Exchange adjustments | 0 | ||
Fair value | ¥ 88,555 |
LONG-TERM INVESTMENTS, NET - _3
LONG-TERM INVESTMENTS, NET - Investments accounted for at fair values, additional information (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Aug. 14, 2017 CNY (¥) | May 31, 2019 CNY (¥) | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Oct. 31, 2017 CNY (¥) shares | |
LONG-TERM INVESTMENTS, NET | |||||||
Investments in preferred shares | ¥ 872,363 | ¥ 1,286,915 | |||||
Investments made | 1,181,611 | $ 166,426 | 560,575 | ¥ 8,751,223 | |||
Fair value | ¥ 660,112 | ¥ 1,063,689 | |||||
Wealth Management Product [Member] | |||||||
LONG-TERM INVESTMENTS, NET | |||||||
Maturity period | 1 year | 1 year | |||||
IFM Investments Limited | |||||||
LONG-TERM INVESTMENTS, NET | |||||||
Percentage of ownership interest acquired | 37.60% | 37.60% | |||||
Investments made | ¥ 308,000 | ¥ 438,000 | |||||
Deemed marketing expense | 317,900 | ||||||
Fair value | 57,100 | ¥ 58,800 | |||||
IFM Investments Limited | Secured loan to IFM controlling Shareholder | |||||||
LONG-TERM INVESTMENTS, NET | |||||||
Loan provided | ¥ 130,000 | 1,100 | ¥ 1,200 | ||||
Percentage of ownership secured the loan | 17.50% | ||||||
Fair value of additional investment and loan | ¥ 120,100 | ||||||
IFM Investments Limited | Convertible Preferred Stock [Member] | |||||||
LONG-TERM INVESTMENTS, NET | |||||||
Percentage of ownership interest acquired | 10% | ||||||
Number of preferred shares purchased | shares | 308,084,916 | ||||||
Investments in preferred shares | 238,015 | ¥ 60,000 | |||||
Fair value | ¥ 77,667 | ||||||
IFM Investments Limited | Investment in convertible note | |||||||
LONG-TERM INVESTMENTS, NET | |||||||
Principal amount | ¥ 40,000 | ||||||
Maturity period | 30 months | ||||||
Interest rate | 12% |
LONG-TERM INVESTMENTS, NET - Eq
LONG-TERM INVESTMENTS, NET - Equity investments measured under measurement alternative and NAV practical expedient (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Long-term investments, net | ||||
Initial cost basis | ¥ 839,296 | ¥ 835,790 | ||
Cumulated unrealized losses (including impairment) | (795,550) | (774,150) | ||
Total carrying value | 43,746 | 61,640 | ||
Impairment loss for equity investments accounted for using measurement alternative | 28,800 | $ 4,056 | 591,876 | ¥ 183,789 |
Private equity fund | ||||
Long-term investments, net | ||||
Total carrying value | 86,200 | 91,000 | ||
Fair value changes recognized | ¥ (4,800) | ¥ (32,900) | ¥ 51,600 | |
Investment lock-up period | 8 years | 8 years |
LONG-TERM INVESTMENTS, NET - Lo
LONG-TERM INVESTMENTS, NET - Long-term time deposits (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
LONG-TERM INVESTMENTS, NET | |||
Longterm investments, net | ¥ 23,570,988 | $ 3,319,904 | ¥ 17,925,653 |
China, Yuan Renminbi | |||
LONG-TERM INVESTMENTS, NET | |||
Longterm investments, net | 15,400,000 | 11,100,000 | |
Matures in 2024 | 1,700,000 | ||
Remaining Matures in 2025 | ¥ 9,400,000 | ||
Matures in 2025 | 10,100,000 | ||
Matures in 2026 | ¥ 5,300,000 |
LONG-TERM INVESTMENTS, NET - Ad
LONG-TERM INVESTMENTS, NET - Additional Information (Details) ¥ in Millions | 12 Months Ended |
Dec. 31, 2023 CNY (¥) | |
LONG-TERM INVESTMENTS, NET | |
Interest income from its long-term held-to-maturity debt investments | ¥ 47.1 |
Minimum | |
LONG-TERM INVESTMENTS, NET | |
Long-term held-to-maturity debt investments due period | 1 year |
Maximum | |
LONG-TERM INVESTMENTS, NET | |
Long-term held-to-maturity debt investments due period | 2 years |
LONG-TERM INVESTMENTS, NET - _4
LONG-TERM INVESTMENTS, NET - Long-term held to maturity investments (Details) ¥ in Thousands | Dec. 31, 2023 CNY (¥) |
LONG-TERM INVESTMENTS, NET | |
Cost or Amortized cost | ¥ 1,729,602 |
Gross unrealized gains | 0 |
Gross unrealized losses | (28,362) |
Fair value | ¥ 1,701,240 |
LONG-TERM INVESTMENTS, NET - Am
LONG-TERM INVESTMENTS, NET - Amortized cost of held-to-maturity investments with stated contractual dates (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
LONG-TERM INVESTMENTS, NET | ||
Due in 1 year through 5 years | ¥ 1,729,602 | ¥ 147,529 |
LONG-TERM INVESTMENTS, NET - Av
LONG-TERM INVESTMENTS, NET - Available-for-sale debt investments (Details) ¥ in Thousands | Dec. 31, 2023 CNY (¥) |
LONG-TERM INVESTMENTS, NET | |
Cost or Amortized cost | ¥ 5,555,020 |
Gross unrealized losses | (292,861) |
Fair value | ¥ 5,262,159 |
LONG-TERM INVESTMENTS, NET - _5
LONG-TERM INVESTMENTS, NET - Available-for-sale debt investments - Tier 1 Bonds (Details) ¥ in Thousands | Dec. 31, 2023 CNY (¥) |
LONG-TERM INVESTMENTS, NET | |
Additional Tier 1 Bonds - Fair Value | ¥ 5,262,159 |
Additional Tier 1 Bonds - Unrealized losses | (292,861) |
Allowance for credit losses on debt securities | ¥ 0 |
LONG-TERM INVESTMENTS, NET - Es
LONG-TERM INVESTMENTS, NET - Estimated fair value of available-for-sale debt investments (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
LONG-TERM INVESTMENTS, NET | ||
Due in 1 year through 5 years | ¥ 5,262,159 | ¥ 5,126,289 |
GOODWILL (Details)
GOODWILL (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Goodwill | ||||
Beginning balance | ¥ 4,934,235 | ¥ 1,805,689 | ||
New additions | 17,978 | 3,270,301 | ||
Disposal | (1,989) | |||
Impairment provided | (93,417) | (141,755) | ¥ (732,400) | |
Ending balance | 4,856,807 | $ 684,067 | 4,934,235 | 1,805,689 |
Existing home transaction services | ||||
Goodwill | ||||
Beginning balance | 598,382 | 594,908 | ||
New additions | 17,978 | 62,496 | ||
Disposal | (1,989) | |||
Impairment provided | (59,163) | (59,022) | ||
Ending balance | 555,208 | 598,382 | 594,908 | |
New home transaction services | ||||
Goodwill | ||||
Beginning balance | 1,128,048 | 1,210,781 | ||
New additions | 0 | 0 | ||
Disposal | 0 | |||
Impairment provided | (34,254) | (82,733) | ||
Ending balance | 1,093,794 | 1,128,048 | 1,210,781 | |
Home Renovation and Furnishing Services [Member] | ||||
Goodwill | ||||
Beginning balance | 3,207,805 | 0 | ||
New additions | 0 | 3,207,805 | ||
Disposal | 0 | |||
Impairment provided | 0 | 0 | ||
Ending balance | ¥ 3,207,805 | ¥ 3,207,805 | ¥ 0 |
GOODWILL - Additional informati
GOODWILL - Additional information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Apr. 20, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill | ||||
Goodwill impairment loss | ¥ 93,417 | ¥ 141,755 | ¥ 732,400 | |
Goodwill acquired | 17,978 | 3,270,301 | ||
Gross amount of goodwill | 6,478,800 | 6,462,800 | ||
Accumulated impairment losses on goodwill | ¥ 1,622,000 | 1,528,600 | ||
Home Renovation and Furnishing Reporting Units | ||||
Goodwill | ||||
Percentage of fair value in excess of carrying amount | 10% | |||
Existing home transaction services | ||||
Goodwill | ||||
Goodwill impairment loss | ¥ 59,163 | 59,022 | ||
Goodwill acquired | 17,978 | 62,496 | ||
New home transaction services | ||||
Goodwill | ||||
Goodwill impairment loss | 34,254 | 82,733 | ||
Goodwill acquired | 0 | 0 | ||
Home renovation and furnishing | ||||
Goodwill | ||||
Goodwill impairment loss | 0 | 0 | ||
Goodwill acquired | ¥ 0 | ¥ 3,207,805 | ||
Home renovation and furnishing | Shengdu Home Renovation Co Ltd | ||||
Goodwill | ||||
Goodwill acquired | ¥ 3,060,800 |
BORROWINGS (Details)
BORROWINGS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
BORROWINGS | |||
Short-term borrowings | ¥ 290,450 | $ 40,909 | ¥ 619,000 |
BORROWINGS - Additional informa
BORROWINGS - Additional information (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | |||||||||||||||||
Dec. 31, 2023 CNY (¥) | Sep. 30, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Sep. 30, 2022 CNY (¥) | Dec. 25, 2024 CNY (¥) | Jun. 30, 2024 CNY (¥) | Jun. 21, 2024 CNY (¥) | Mar. 31, 2024 CNY (¥) | Feb. 29, 2024 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 25, 2023 CNY (¥) | Sep. 21, 2023 CNY (¥) | Aug. 31, 2023 CNY (¥) | Jun. 30, 2023 CNY (¥) | Mar. 31, 2023 CNY (¥) | Mar. 21, 2023 CNY (¥) | Feb. 28, 2023 CNY (¥) | Dec. 25, 2022 CNY (¥) | |
Borrowings | ||||||||||||||||||
Short-term borrowings | ¥ 290,450 | ¥ 619,000 | $ 40,909 | |||||||||||||||
Beike Technology Co., Ltd. | ||||||||||||||||||
Borrowings | ||||||||||||||||||
Short-term borrowings | ¥ 277,800 | ¥ 140,000 | ¥ 460,000 | |||||||||||||||
Borrowing term | 267 days | 360 days | 356 days | |||||||||||||||
Interest rate for outstanding borrowings | 3.35% | 3.58% | 3.58% | |||||||||||||||
Beike Technology Co., Ltd. | Facility agreement due 2023 | ||||||||||||||||||
Borrowings | ||||||||||||||||||
Borrowing to be paid off on February 28, 2023 | ¥ 43,300 | |||||||||||||||||
Borrowing to be paid off on March 21, 2023 | ¥ 47,800 | |||||||||||||||||
Borrowing to be paid off on August 31, 2023 | ¥ 43,300 | |||||||||||||||||
Borrowing to be paid off on September 21, 2023 | ¥ 325,600 | |||||||||||||||||
Borrowing to be paid off on March 31, 2023 | ¥ 23,300 | |||||||||||||||||
Borrowing to be paid off on June 30, 2023 | ¥ 3,900 | |||||||||||||||||
Borrowing to be paid off on September 30, 2023 | ¥ 23,300 | |||||||||||||||||
Borrowing to be paid off on December 25, 2023 | ¥ 89,500 | |||||||||||||||||
Beike Technology Co., Ltd. | Facility Agreement Due 2024 | ||||||||||||||||||
Borrowings | ||||||||||||||||||
Debt Maturity February 29, 2024 | ¥ 43,300 | |||||||||||||||||
Debt Maturity March 31, 2024 | ¥ 47,800 | |||||||||||||||||
Debt Maturity June 21 2024 | ¥ 186,700 | |||||||||||||||||
Tianjin Lianjia Baoye Real Estate Brokerage Co., Ltd | ||||||||||||||||||
Borrowings | ||||||||||||||||||
Short-term borrowings | ¥ 12,700 | ¥ 19,000 | ||||||||||||||||
Borrowing term | 363 days | 360 days | ||||||||||||||||
Interest rate for outstanding borrowings | 3.30% | 3.58% | 3.30% | |||||||||||||||
Tianjin Lianjia Baoye Real Estate Brokerage Co., Ltd | Facility agreement due 2023 | ||||||||||||||||||
Borrowings | ||||||||||||||||||
Borrowing to be paid off on June 30, 2023 | ¥ 3,200 | |||||||||||||||||
Borrowing to be paid off on December 25, 2023 | ¥ 15,800 | |||||||||||||||||
Tianjin Lianjia Baoye Real Estate Brokerage Co., Ltd | Facility Agreement Due 2024 | ||||||||||||||||||
Borrowings | ||||||||||||||||||
Debt Maturity June 30 2024 | ¥ 3,200 | |||||||||||||||||
Debt Maturity December 25 2024 | ¥ 9,500 |
ACCOUNTS PAYABLE (Details)
ACCOUNTS PAYABLE (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Payable for | |||
Payable related to new home transaction business | ¥ 4,081,051 | ¥ 4,333,474 | |
Payable for home renovation materials and construction costs | 1,375,333 | 867,045 | |
Payable for advertising fees | 305,108 | 186,604 | |
Payable for internet service fees | 166,085 | 104,603 | |
Payable for leasehold improvements | 92,924 | 90,271 | |
Others | 308,015 | 261,324 | |
Total | ¥ 6,328,516 | $ 891,353 | ¥ 5,843,321 |
ACCOUNTS PAYABLE -ageing analys
ACCOUNTS PAYABLE -ageing analysis of the trade payable (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
Accounts Payable, Current, Past Due | |||
Accounts payable | ¥ 6,328,516 | $ 891,353 | ¥ 5,843,321 |
Up to 3 months | |||
Accounts Payable, Current, Past Due | |||
Accounts payable | 5,980,363 | 5,259,873 | |
3 months to 1 year | |||
Accounts Payable, Current, Past Due | |||
Accounts payable | 221,018 | 270,846 | |
Over 1 year | |||
Accounts Payable, Current, Past Due | |||
Accounts payable | ¥ 127,135 | ¥ 312,602 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |||
Deposit related to new home services | ¥ 1,388,784 | ¥ 1,267,752 | |
Deposit related to franchise services | 1,014,348 | 956,121 | |
Deposit related to home renovation and furnishing services | 961,966 | 292,361 | |
Deposit related to entrusted house lease services | 832,877 | 303,793 | |
Other tax payables | 335,395 | 272,610 | |
Accrued operating expenses | 291,914 | 215,234 | |
Payable related to escrow accounts services (i) | 153,670 | 116,025 | |
Payable related to employees' exercise of share-based awards | 55,783 | 27,736 | |
Deferred guarantee revenue | 25,671 | 32,618 | |
Others | 635,540 | 633,818 | |
Total | ¥ 5,695,948 | $ 802,257 | ¥ 4,118,068 |
OTHER INCOME, NET (Details)
OTHER INCOME, NET (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
OTHER INCOME, NET | ||||
Investment income, net | ¥ 950,332 | ¥ 795,804 | ¥ 487,724 | |
Government grants | 762,070 | 668,372 | 1,059,907 | |
Net gain (loss) on disposal of property, plant and equipment and intangible assets | (629) | 653 | (467) | |
Others | 157,527 | 103,758 | 155,250 | |
Total | ¥ 1,869,300 | $ 263,285 | ¥ 1,568,587 | ¥ 1,702,414 |
INTEREST INCOME, NET (Details)
INTEREST INCOME, NET (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
INTEREST INCOME, NET | ||||
Interest income | ¥ 1,291,485 | ¥ 769,094 | ¥ 385,375 | |
Interest expense | (17,241) | (14,053) | (6,105) | |
Bank charges | (9,068) | (11,124) | (18,952) | |
Others | (1,844) | (433) | (5,751) | |
Total | ¥ 1,263,332 | $ 177,937 | ¥ 743,484 | ¥ 354,567 |
TAXATION - Components of income
TAXATION - Components of income tax (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
Income (loss) before income tax expense | ||||
Income from China operations | ¥ 10,550,583 | ¥ 2,936,269 | ¥ 2,484,608 | |
Loss from nonChina operations | (2,666,588) | (2,643,979) | (1,343,882) | |
Income before income tax expense | 7,883,995 | $ 1,110,439 | 292,290 | 1,140,726 |
Income tax expense from China operations | ||||
Current income tax expense | 2,243,600 | 1,275,779 | 1,759,725 | |
Deferred tax (benefit)/expense | (273,191) | 237,615 | (169,673) | |
Income tax expense from China operations | 1,970,409 | 1,513,394 | 1,590,052 | |
Income tax expense from nonChina operations | 23,982 | 176,180 | 75,440 | |
Total income tax expense | ¥ 1,994,391 | $ 280,904 | ¥ 1,689,574 | ¥ 1,665,492 |
TAXATION - Effective tax rates
TAXATION - Effective tax rates (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Effective Income Tax Rate Reconciliation, Percent | |||
Statutory income tax rate | 25% | 25% | 25% |
Tax effect of preferential treatments | (3.70%) | (39.50%) | (12.40%) |
Tax effect of tax-exempt entities | 8.40% | 253.40% | 34% |
Effect on tax rates in different tax jurisdiction | 0.30% | 33% | 2.10% |
Tax effect of permanent difference | (4.10%) | 151.90% | 49.70% |
Tax effect of R&D deduction and others | (2.00%) | (58.00%) | (21.20%) |
Change in valuation allowance | 1.40% | 212.20% | 68.80% |
Effect tax rates | 25.30% | 578% | 146% |
TAXATION - Tax holiday (Details
TAXATION - Tax holiday (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
TAXATION | |||
Tax holiday effect | ¥ 294,698 | ¥ 115,521 | ¥ 141,554 |
Basic net income per share effect | ¥ 0.08 | ¥ 0.03 | ¥ 0.04 |
Diluted net income per share effect | ¥ 0.08 | ¥ 0.03 | ¥ 0.04 |
Denominator for basic net income (loss) per share-weighted average ordinary shares outstanding | 3,521,380 | 3,569,179 | 3,549,122 |
Denominator for diluted net income (loss) per share-weighted average ordinary shares outstanding | 3,611,653 | 3,569,179 | 3,549,122 |
TAXATION - Deferred income tax
TAXATION - Deferred income tax assets and liabilities (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets | ||||
Net operating loss carrying forward | ¥ 3,144,161 | ¥ 2,788,131 | ||
Asset impairment | 779,493 | 688,855 | ||
Deferred rental cost | 17,642 | 48,290 | ||
Unrealized profits | 154,012 | 184,837 | ||
Accrual expense | 371,329 | 417,462 | ||
Others | 75,825 | 81,420 | ||
Less: Valuation Allowance | (3,385,876) | (3,310,975) | ¥ (2,892,268) | ¥ (2,178,650) |
Deferred tax assets, net of valuation allowance | 1,156,586 | 898,020 | ||
Deferred tax liability | ||||
Fair value change of certain investments | (18,544) | (45,559) | ||
Intangible assets | (299,025) | (343,200) | ||
Deferred revenue | (4,666) | (3,489) | ||
Total deferred tax liability | ¥ (322,235) | ¥ (392,248) |
TAXATION - Valuation allowance
TAXATION - Valuation allowance (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred Tax Assets, Valuation Allowance | |||
Balance at the beginning of the year | ¥ (3,310,975) | ¥ (2,892,268) | ¥ (2,178,650) |
Remeasurement due to application of preferential tax rate | (17,011) | ||
Additions | (794,643) | (1,029,453) | (1,293,679) |
Reversals | 687,180 | 575,365 | 571,595 |
Write-offs | 49,573 | 35,381 | 8,466 |
Balance at the end of the year | ¥ (3,385,876) | ¥ (3,310,975) | ¥ (2,892,268) |
TAXATION - Additional informati
TAXATION - Additional information (Details) ¥ in Thousands, $ in Millions | 12 Months Ended | 36 Months Ended | ||||||
Mar. 16, 2007 | Dec. 31, 2023 CNY (¥) entity | Dec. 31, 2023 HKD ($) entity | Dec. 31, 2022 CNY (¥) entity | Dec. 31, 2022 HKD ($) entity | Dec. 31, 2021 CNY (¥) entity | Dec. 31, 2021 HKD ($) entity | Dec. 31, 2025 | |
Taxation | ||||||||
Statutory income tax rate (in percent) | 25% | 25% | 25% | 25% | 25% | 25% | ||
Sharebased compensation expenses included in: | ¥ 3,215,549 | ¥ 2,425,249 | ¥ 1,538,287 | |||||
Net operating loss carryforwards | 12,633,600 | 11,545,800 | 8,925,600 | |||||
Deferred tax assets arose from net operating loss carryforwards provided for full valuation allowance | 3,144,200 | 2,788,100 | 2,210,100 | |||||
Deferred tax assets | 2,848,800 | 2,702,600 | 2,153,500 | |||||
Net operating loss carrying forward expected to be utilized prior to expiration | 295,300 | 85,500 | 56,600 | |||||
Net operating loss carryforwards will expire in the year ending December 31, 2024 through 2028 | 12,633,600 | |||||||
Income tax accrued on undistributed earnings | 0 | ¥ 0 | ¥ 0 | |||||
Undistributed profits from the PRC subsidiaries and VIEs for which no withholding tax had been accrued | 31,917,000 | |||||||
Unrecognized Tax liabilities | ¥ 3,192,000 | |||||||
Withholding income tax on dividends distributed by an VIE to its immediate holding company outside of China | 10% | 10% | ||||||
High and new technology enterprise | ||||||||
Taxation | ||||||||
Tax exemption period | 2 years | 2 years | ||||||
Percentage of reduction in income tax for the next three years | 50% | 50% | ||||||
Income tax reduction period | 3 years | 3 years | ||||||
Preferential income tax rate (in percent) | 15% | 15% | ||||||
Number of entities qualified | entity | 3 | 3 | 3 | 3 | 2 | 2 | ||
Software enterprise | ||||||||
Taxation | ||||||||
Tax exemption period | 2 years | 2 years | ||||||
Income tax reduction period | 3 years | 3 years | ||||||
Number of entities qualified | entity | 1 | 1 | ||||||
Software enterprise | Forecast | ||||||||
Taxation | ||||||||
Preferential income tax rate (in percent) | 12.50% | |||||||
Enterprises within Catalogue of Encouraged Industries in Western Regions | ||||||||
Taxation | ||||||||
Preferential income tax rate (in percent) | 15% | 15% | 15% | 15% | 15% | 15% | ||
Hongkong | ||||||||
Taxation | ||||||||
Tax rate on assessable profits on the first HK dollar 2 million | 8.25% | 8.25% | 8.25% | 8.25% | 8.25% | 8.25% | ||
Assessable profits, under which the tax rate is 8.25%. | $ | $ 2 | $ 2 | $ 2 | |||||
Assessable profits, under which the tax rate is 16.5%. | $ | $ 2 | $ 2 | $ 2 | |||||
Statutory income tax rate (in percent) | 16.50% | 16.50% | 16.50% | 16.50% | 16.50% | 16.50% | ||
Foreign investor ownership in the shares of VIE | 25% | 25% | ||||||
Hongkong | Maximum | ||||||||
Taxation | ||||||||
Withholding income tax on dividends distributed by an VIE to its immediate holding company outside of China | 5% | 5% | ||||||
CN | ||||||||
Taxation | ||||||||
Statutory income tax rate (in percent) | 25% | |||||||
CN | Enterprises within Catalogue of Encouraged Industries in Western Regions | ||||||||
Taxation | ||||||||
Number of entities qualified | entity | 1 | 1 | 6 | 6 | 6 | 6 | ||
Non-China operations | ||||||||
Taxation | ||||||||
Sharebased compensation expenses included in: | ¥ 3,215,500 | ¥ 2,425,200 | ¥ 1,538,300 | |||||
Gains from investment in wealth management products | ¥ 452,500 | ¥ 192,400 | ¥ 502,400 |
SHARE-BASED COMPENSATION - Comp
SHARE-BASED COMPENSATION - Compensation expenses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | |
SHARE-BASED COMPENSATION | ||||||
Sharebased compensation related to share options | ¥ 3,215,549 | ¥ 2,425,249 | ¥ 1,538,287 | |||
Tax Benefit From Compensation Expense | $ | $ 0 | $ 0 | $ 0 | |||
Cost of revenues | ||||||
SHARE-BASED COMPENSATION | ||||||
Sharebased compensation related to share options | 502,523 | 70,779 | 356,844 | 406,131 | ||
Sales and marketing expenses | ||||||
SHARE-BASED COMPENSATION | ||||||
Sharebased compensation related to share options | 180,465 | 25,418 | 121,396 | 110,446 | ||
General and administrative expenses | ||||||
SHARE-BASED COMPENSATION | ||||||
Sharebased compensation related to share options | 2,345,895 | 330,412 | 1,659,755 | 595,732 | ||
Research and development expenses | ||||||
SHARE-BASED COMPENSATION | ||||||
Sharebased compensation related to share options | 186,666 | $ 26,291 | 287,254 | 425,978 | ||
Employee Stock Option | ||||||
SHARE-BASED COMPENSATION | ||||||
Sharebased compensation related to share options | 771,151 | 970,551 | 1,504,025 | |||
Restricted Stock Units (RSUs) [Member] | ||||||
SHARE-BASED COMPENSATION | ||||||
Sharebased compensation related to share options | 813,294 | 361,071 | 34,262 | |||
Share-based compensation related to restricted shares (c) | ||||||
SHARE-BASED COMPENSATION | ||||||
Sharebased compensation related to share options | ¥ 1,631,104 | ¥ 1,093,627 | ¥ 0 |
SHARE-BASED COMPENSATION - Shar
SHARE-BASED COMPENSATION - Share-based compensation related to share options (Details) ¥ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||||
May 05, 2022 agreement shares | Apr. 20, 2022 shares | Mar. 31, 2022 | Dec. 28, 2018 shares | May 31, 2023 | Apr. 30, 2022 $ / shares shares | Jul. 31, 2020 shares | Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 $ / shares shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2021 $ / shares | Dec. 31, 2018 | May 31, 2022 shares | |
SHARE-BASED COMPENSATION | ||||||||||||||
Granted (in shares) | 4,073,400 | 20,341,532 | ||||||||||||
Share awards granted were cancelled | 2,443,122 | 12,600,293 | 8,913,268 | |||||||||||
Share options granted, exercise price | $ / shares | $ 0.00002 | $ 0.00002 | ||||||||||||
Exercise of share options (in shares) | 17,029,713 | 24,383,373 | 57,076,970 | |||||||||||
Sharebased compensation related to share options | ¥ | ¥ 3,215,549 | ¥ 2,425,249 | ¥ 1,538,287 | |||||||||||
Shengdu | ||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||
Percentage of ownership interest acquired | 51% | |||||||||||||
RSU | ||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||
Sharebased compensation related to share options | ¥ | ¥ 813,294 | ¥ 361,071 | ¥ 34,262 | |||||||||||
Class A Ordinary Shares | ||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||
Ordinary shares, shares issued | 3,571,960,220 | 3,601,547,279 | 3,601,547,279 | |||||||||||
Restricted class A ordinary shares | Shengdu | ||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||
Restriction period | 3 years | |||||||||||||
Number of shares issued in acquisition | 44,315,854 | |||||||||||||
Restricted class A ordinary shares | First anniversary | Shengdu | ||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||
Percentage of restrictions on restricted shares | 30% | |||||||||||||
Restricted class A ordinary shares | Second anniversary | Shengdu | ||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||
Percentage of restrictions on restricted shares | 30% | |||||||||||||
Restricted class A ordinary shares | Third anniversary | Shengdu | ||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||
Percentage of restrictions on restricted shares | 40% | |||||||||||||
2018 Share Option Plan | ||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||
Percentage of vesting of granted share options on the first, second, third and fourth anniversary | 25% | |||||||||||||
2018 Share Option Plan | Minimum | ||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||
Options exercisable term | 1 year | |||||||||||||
2018 Share Option Plan | Maximum | ||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||
Options exercisable term | 5 years | |||||||||||||
2018 Share Option Plan | Class A Ordinary Shares | ||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||
Granted (in shares) | 350,225,435 | |||||||||||||
2020 Global Share Incentive Plan | RSU | ||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||
Options exercisable term | 10 years | |||||||||||||
Granted (in shares) | 80,000,000 | 46,425,615 | ||||||||||||
Number of shares percentage on issued and outstanding | 1% | |||||||||||||
2020 Global Share Incentive Plan | RSU | Minimum | ||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||
Options exercisable term | 1 year | |||||||||||||
2020 Global Share Incentive Plan | RSU | Maximum | ||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||
Options exercisable term | 5 years | |||||||||||||
2020 Global Share Incentive Plan | Class A Ordinary Shares | ||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||
Share options granted, exercise price | $ / shares | $ 0.00002 | |||||||||||||
Ordinary shares, shares issued | 253,246,913 | |||||||||||||
2022 Share Incentive Plan | Maximum | ||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||
Maximum number of shares of the company available for issuance | 125,692,439 | |||||||||||||
2022 Share Incentive Plan | RSU | ||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||
Vesting schedule of the restricted shares | ¥ | ¥ 1,225,900 | ¥ 809,400 | ||||||||||||
Sharebased compensation related to share options | ¥ | ¥ 0 | |||||||||||||
2022 Share Incentive Plan | Class A Ordinary Shares | RSU | ||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||
Restriction period | 5 years | |||||||||||||
Number of agreements | agreement | 2 | |||||||||||||
2022 Share Incentive Plan | Class A Ordinary Shares | RSU | Mr. PENG Yongdong, chairman and chief executive officer | ||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||
Percentage of restrictions on restricted shares | 50% | |||||||||||||
2022 Share Incentive Plan | Class A Ordinary Shares | RSU | Mr. SHAN Yigang, an executive director | ||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||
Percentage of restrictions on restricted shares | 50% | |||||||||||||
2022 Share Incentive Plan | Class A Ordinary Shares | RSU | First anniversary | ||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||
Percentage of restrictions on restricted shares | 50% | |||||||||||||
2022 Share Incentive Plan | Class A Ordinary Shares | RSU | Second anniversary | ||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||
Percentage of restrictions on restricted shares | 50% | |||||||||||||
2022 Share Incentive Plan | Class A Ordinary Shares | RSU | Third anniversary | ||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||
Percentage of restrictions on restricted shares | 33% | |||||||||||||
2022 Share Incentive Plan | Class A Ordinary Shares | RSU | Fifth anniversary | ||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||
Percentage of restrictions on restricted shares | 33% | |||||||||||||
2022 Share Incentive Plan | Restricted class A ordinary shares | Shengdu | ||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||
Restriction period | 5 years | |||||||||||||
2022 Share Incentive Plan | Restricted class A ordinary shares | RSU | Fourth anniversary | ||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||
Percentage of restrictions on restricted shares | 33% | |||||||||||||
2022 Share Incentive Plan | Mr. PENG Yongdong, chairman and chief executive officer | Class A Ordinary Shares | RSU | ||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||
Number of shares issued | 71,824,250 | |||||||||||||
2022 Share Incentive Plan | Mr. PENG Yongdong, chairman and chief executive officer | Restricted class A ordinary shares | Shengdu | ||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||
Number of shares issued | 71,824,250 | |||||||||||||
2022 Share Incentive Plan | Mr. SHAN Yigang, an executive director | Class A Ordinary Shares | RSU | ||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||
Number of shares issued | 53,868,189 | |||||||||||||
2022 Share Incentive Plan | Mr. SHAN Yigang, an executive director | Restricted class A ordinary shares | Shengdu | ||||||||||||||
SHARE-BASED COMPENSATION | ||||||||||||||
Number of shares issued | 53,868,189 |
SHARE-BASED COMPENSATION - Sh_2
SHARE-BASED COMPENSATION - Share options activities (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding | |||||||
Number of options Outstanding beginning | shares | 59,822,418 | 59,822,418 | 92,732,684 | 92,732,684 | 138,381,390 | 138,381,390 | |
Granted (in shares) | shares | 4,073,400 | 4,073,400 | 20,341,532 | 20,341,532 | |||
Exercised (in shares) | shares | (17,029,713) | (17,029,713) | (24,383,373) | (24,383,373) | (57,076,970) | (57,076,970) | |
Forfeited (in shares) | shares | (2,443,122) | (2,443,122) | (12,600,293) | (12,600,293) | (8,913,268) | (8,913,268) | |
Number of options Outstanding ending | shares | 40,349,583 | 40,349,583 | 59,822,418 | 59,822,418 | 92,732,684 | 92,732,684 | 138,381,390 |
Vested and exercisable (in shares) | shares | 7,610,018 | 8,393,147 | 10,816,028 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | |||||||
Weighted Average Exercise Price, outstanding beginning | $ 0.00002 | $ 0.00002 | $ 0.00002 | ||||
Weighted Average Exercise Price, granted | 0.00002 | 0.00002 | |||||
Weighted Average Exercise Price, exercised | 0.00002 | 0.00002 | 0.00002 | ||||
Weighted Average Exercise Price, forfeited | 0.00002 | 0.00002 | 0.00002 | ||||
Weighted Average Exercise Price, outstanding ending | 0.00002 | 0.00002 | 0.00002 | $ 0.00002 | |||
Weighted Average Exercise Price, Vested and exercisable | $ 0.00002 | $ 0.00002 | $ 0.00002 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures | |||||||
Weighted Average Remaining Contractual Life outstanding | 6 years 4 months 20 days | 6 years 4 months 20 days | 7 years 3 months 18 days | 7 years 3 months 18 days | 8 years 1 month 9 days | 8 years 1 month 9 days | 8 years 3 months 14 days |
Weighted Average Remaining Contractual Life | 5 years 9 months 21 days | 5 years 9 months 21 days | 6 years 6 months 21 days | 6 years 6 months 21 days | 6 years 11 months 16 days | 6 years 11 months 16 days | |
Aggregate Intrinsic Value, Outstanding | $ | $ 218,022 | $ 278,373 | $ 621,926 | $ 2,838,661 | |||
Aggregate Intrinsic Value, Vested and exercisable | $ | $ 41,119 | $ 39,056 | $ 72,539 | ||||
Weighted average grant date fair value | $ 0 | $ 5.8 | $ 15.7 | ||||
Aggregate intrinsic value of share options exercised | $ | $ 93,000 | $ 129,000 | $ 788,000 | ||||
Sharebased compensation expenses included in: | ¥ | ¥ 3,215,549 | ¥ 2,425,249 | ¥ 1,538,287 | ||||
Employee Stock Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures | |||||||
Sharebased compensation expenses included in: | ¥ | ¥ 771,151 | ¥ 970,551 | ¥ 1,504,025 |
SHARE-BASED COMPENSATION - Bino
SHARE-BASED COMPENSATION - Binomial option pricing model assumptions (Details) - Employee Stock Option [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology | ||
Exercise price (US$) | $ 0.00002 | $ 0.00002 |
Expected volatility minimum | 48.80% | 51% |
Expected volatility maximum | 52.60% | 52.20% |
Excepted term (in years) | 10 years | 10 years |
Expected dividend yield | 0% | 0% |
Risk-free interest rate minimum | 2.30% | 1.90% |
Risk-free interest rate maximum | 4.20% | 2.30% |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology | ||
Fair value of ordinary shares (US$) | $ 6.31 | $ 22.33 |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology | ||
Fair value of ordinary shares (US$) | $ 3.72 | $ 5.51 |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of Company's restricted share units under 2020 Share Incentive Plan (Details) ¥ in Millions | 12 Months Ended | |||||
Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2023 CNY (¥) $ / shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 CNY (¥) $ / shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2021 CNY (¥) $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | ||||||
Share-based compensation expenses recognized for restricted share units | ¥ | ¥ 813.3 | ¥ 813.3 | ¥ 34.3 | ¥ 34.3 | ||
2020 Share Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | ||||||
Beginning balance | 41,502,498 | 2,442,123 | 0 | |||
Granted | 46,425,615 | 44,012,712 | 2,525,730 | |||
Vested | (5,963,517) | (576,720) | ||||
Forfeited or Cancelled | (2,002,524) | (4,375,617) | (83,607) | |||
Ending balance | 79,962,072 | 41,502,498 | 2,442,123 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | ||||||
Beginning balance | $ / shares | ¥ 6.08 | $ 11.72 | ¥ 0 | |||
Granted | $ / shares | 6.03 | 5.90 | 11.85 | |||
Vested | $ / shares | 5.90 | 7.89 | ||||
Forfeited or Cancelled | $ / shares | 6.21 | 7.05 | 15.89 | |||
Ending balance | $ / shares | ¥ 6.07 | $ 6.08 | 11.72 | |||
Unrecognized compensation expense | ¥ | ¥ 2,294.5 | ¥ 2,294.5 | ||||
Recognized weighted-average period | 2 years 9 months 18 days | |||||
Share-based compensation expenses recognized for restricted share units | ¥ | ¥ 361.1 | $ 361.1 | ||||
Vested | 5,963,517 | 576,720 | ||||
2022 Share Incentive Plan and Shengdu Acquisition | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | ||||||
Beginning balance | 170,008,293 | 0 | ||||
Granted | 170,008,293 | |||||
Vested | (13,292,404) | |||||
Ending balance | 156,715,889 | 170,008,293 | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | ||||||
Beginning balance | $ / shares | ¥ 4.38 | $ 0 | ||||
Granted | $ / shares | 4.38 | |||||
Vested | $ / shares | 4.29 | |||||
Ending balance | $ / shares | ¥ 4.39 | $ 4.38 | ¥ 0 | |||
Unrecognized compensation expense | ¥ | ¥ 2,132.2 | ¥ 2,132.2 | ||||
Recognized weighted-average period | 2 years 6 months | |||||
Share-based compensation expenses recognized for restricted share units | ¥ | ¥ 1,631.1 | 1,631.1 | ¥ 1,093.6 | $ 1,093.6 | ||
Vested | 13,292,404 | |||||
Non-vested RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | ||||||
Total fair value of shares | ¥ | ¥ 231.1 | 29.6 | ¥ 0 | |||
Non-vested RSUs | 2022 Share Incentive Plan and Shengdu Acquisition | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | ||||||
Total fair value of shares | ¥ | ¥ 364.9 | ¥ 0 | ||||
Locked up Restricted Share Units | 2022 Share Incentive Plan and Shengdu Acquisition | Mr. PENG Yongdong, chairman and chief executive officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | ||||||
Vested | (16,416,972) | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | ||||||
Vested | 16,416,972 | |||||
Locked up Restricted Share Units | 2022 Share Incentive Plan and Shengdu Acquisition | Mr. SHAN Yigang, an executive director | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares | ||||||
Vested | (12,312,729) | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | ||||||
Vested | 12,312,729 | |||||
Employee Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | ||||||
Unrecognized compensation expense | ¥ | ¥ 716 | ¥ 716 | ||||
Recognized weighted-average period | 1 year 4 months 24 days |
SHARE-BASED COMPENSATION - Sh_3
SHARE-BASED COMPENSATION - Share based compensation related to preferred and ordinary shares (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SHARE-BASED COMPENSATION | |||
Sharebased compensation expenses included in: | ¥ 3,215,549 | ¥ 2,425,249 | ¥ 1,538,287 |
Share-based compensation related to restricted shares (c) | |||
SHARE-BASED COMPENSATION | |||
Sharebased compensation expenses included in: | 1,631,104 | 1,093,627 | 0 |
Employee Stock Option [Member] | |||
SHARE-BASED COMPENSATION | |||
Sharebased compensation expenses included in: | ¥ 771,151 | ¥ 970,551 | ¥ 1,504,025 |
ORDINARY SHARES - General infor
ORDINARY SHARES - General information (Details) $ / shares in Units, ¥ in Thousands, $ in Millions | 1 Months Ended | 4 Months Ended | 12 Months Ended | |||||||||
Dec. 08, 2022 $ / shares shares | May 11, 2022 shares | Nov. 08, 2021 shares | Nov. 30, 2020 USD ($) | Aug. 31, 2020 USD ($) | Apr. 26, 2024 shares | Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 shares | Aug. 12, 2022 $ / shares shares | |
Ordinary shares | ||||||||||||
Ordinary shares, shares authorized | 25,000,000,000 | 25,000,000,000 | ||||||||||
Ordinary shares par value (in dollars per share) | $ / shares | $ 0.00002 | $ 0.00002 | ||||||||||
Number of shares for which options exercised | 17,029,713 | 17,029,713 | 24,383,373 | 24,383,373 | 57,076,970 | |||||||
Stock Repurchased During Period, Value | ¥ | ¥ 5,150,628 | ¥ 1,319,796 | ||||||||||
IPO | ||||||||||||
Ordinary shares | ||||||||||||
Proceeds from issuance of initial public offering, net of offering costs | $ | $ 2,358.8 | |||||||||||
Underwriter commissions and relevant offering expenses | $ | $ 79.2 | |||||||||||
Follow-on public offering | ||||||||||||
Ordinary shares | ||||||||||||
Underwriter commissions and relevant offering expenses | $ | $ 38.5 | |||||||||||
Proceeds from issuance of ordinary shares, net of offering costs | $ | $ 2,322.6 | |||||||||||
Propitious Global Holdings Limited | ||||||||||||
Ordinary shares | ||||||||||||
Conversion ratio for the re-designated shares | 1 | |||||||||||
Mr. SHAN Yigang, an executive director | ||||||||||||
Ordinary shares | ||||||||||||
Conversion ratio for the re-designated shares | 1 | |||||||||||
Class A Ordinary Shares | ||||||||||||
Ordinary shares | ||||||||||||
Ordinary shares, shares authorized | 24,114,698,720 | 24,114,698,720 | 24,114,698,720 | |||||||||
Ordinary shares par value (in dollars per share) | $ / shares | $ 0.00002 | |||||||||||
Repurchase of ordinary shares (in shares) | 70,287,726 | |||||||||||
Class A Ordinary Shares | Employee trust controlled by the company upon exercise of options | ||||||||||||
Ordinary shares | ||||||||||||
Ordinary share issuance upon follow-on public offering, net of issuance costs | 60,852,775 | 60,852,775 | ||||||||||
Number of shares for which options exercised | 49,319,159 | 49,319,159 | ||||||||||
Class A Ordinary Shares | Depositary Bank | ||||||||||||
Ordinary shares | ||||||||||||
Ordinary share issuance upon follow-on public offering, net of issuance costs | 88,800,000 | 88,800,000 | 31,999,998 | 31,999,998 | 38,944,380 | |||||||
Number of shares for which options exercised | 55,711,134 | 55,711,134 | ||||||||||
Class A Ordinary Shares | Prevailing market prices | ||||||||||||
Ordinary shares | ||||||||||||
Ordinary shares par value (in dollars per share) | $ / shares | $ 0.00002 | $ 0.00002 | ||||||||||
Repurchase of ordinary shares (in shares) | 182,772,129 | 182,772,129 | 41,707,914 | 41,707,914 | ||||||||
Stock Repurchased During Period, Value | ¥ 6,470,600 | $ 910.5 | ¥ 1,319,800 | $ 187.3 | ||||||||
Shares Issued, Shares, Share-Based Payment Arrangement, Forfeited | 35,246,628 | |||||||||||
Class A Ordinary Shares | Propitious Global Holdings Limited | ||||||||||||
Ordinary shares | ||||||||||||
Number of Class B ordinary shares converted into Class A ordinary shares | 727,407,230 | |||||||||||
Class B Ordinary Shares | ||||||||||||
Ordinary shares | ||||||||||||
Ordinary shares, shares authorized | 885,301,280 | 885,301,280 | 885,301,280 | |||||||||
Ordinary shares par value (in dollars per share) | $ / shares | $ 0.00002 | |||||||||||
Class B Ordinary Shares | Mr. Zuo Hui, founder and chairman of the board of directors | ||||||||||||
Ordinary shares | ||||||||||||
Number of Class B ordinary shares converted into Class A ordinary shares | 157,894,050 | |||||||||||
Class B Ordinary Shares | Mr. PENG Yongdong, chairman and chief executive officer | ||||||||||||
Ordinary shares | ||||||||||||
Number of Class B ordinary shares converted into Class A ordinary shares | 110,116,275 | |||||||||||
Class B Ordinary Shares | Mr. SHAN Yigang, an executive director | ||||||||||||
Ordinary shares | ||||||||||||
Number of Class B ordinary shares converted into Class A ordinary shares | 47,777,775 |
ORDINARY SHARES - Public offeri
ORDINARY SHARES - Public offerings (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class A Ordinary Shares [Member] | Depositary Bank | |||
Ordinary shares | |||
Ordinary share issuance upon follow-on public offering, net of issuance costs | 88,800,000 | 31,999,998 | 38,944,380 |
ORDINARY SHARES - Additional in
ORDINARY SHARES - Additional information (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 4 Months Ended | 12 Months Ended | |||||||||||||||
Nov. 28, 2023 shares | Aug. 28, 2023 shares | Jun. 29, 2023 shares | Feb. 17, 2023 shares | Dec. 08, 2022 $ / shares shares | May 11, 2022 shares | May 05, 2022 shares | Mar. 31, 2022 shares | May 31, 2022 USD ($) | Apr. 26, 2024 shares | Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Aug. 31, 2023 USD ($) | Aug. 30, 2023 USD ($) | Aug. 12, 2022 USD ($) $ / shares shares | |
Ordinary shares | ||||||||||||||||||
Repurchase of ordinary shares | ¥ | ¥ 5,150,628 | ¥ 1,319,796 | ||||||||||||||||
Repurchase of ordinary shares | ¥ 5,150,628 | $ 725,451 | 1,319,796 | |||||||||||||||
Ordinary shares and convertible redeemable preferred shares, authorized (in shares) | 25,000,000,000 | |||||||||||||||||
Ordinary shares and convertible redeemable preferred shares, share capital authorized | $ | $ 500,000 | |||||||||||||||||
Ordinary shares authorized (in shares) | 25,000,000,000 | 25,000,000,000 | 25,000,000,000 | |||||||||||||||
Ordinary shares par value (in dollars per share) | $ / shares | $ 0.00002 | $ 0.00002 | ||||||||||||||||
RSU | Mr. SHAN Yigang, an executive director | ||||||||||||||||||
Ordinary shares | ||||||||||||||||||
Share restriction removed | 13,292,404 | 13,292,404 | ||||||||||||||||
Restricted class A ordinary shares | Shengdu Home Renovation Co Ltd | ||||||||||||||||||
Ordinary shares | ||||||||||||||||||
Restriction period | 3 years | |||||||||||||||||
Number of shares agreed to issue | 44,315,854 | |||||||||||||||||
Restricted class A ordinary shares | Shengdu Home Renovation Co Ltd | 2022 Share Incentive Plan | ||||||||||||||||||
Ordinary shares | ||||||||||||||||||
Restriction period | 5 years | |||||||||||||||||
Restricted class A ordinary shares | Shengdu Home Renovation Co Ltd | 2022 Share Incentive Plan | Mr. PENG Yongdong, Chairman and Chief executive officer [Member] | ||||||||||||||||||
Ordinary shares | ||||||||||||||||||
Number of shares issued | 71,824,250 | |||||||||||||||||
Restricted class A ordinary shares | Shengdu Home Renovation Co Ltd | 2022 Share Incentive Plan | Mr. SHAN Yigang, an executive director | ||||||||||||||||||
Ordinary shares | ||||||||||||||||||
Number of shares issued | 53,868,189 | |||||||||||||||||
Class A Ordinary Shares | ||||||||||||||||||
Ordinary shares | ||||||||||||||||||
Repurchase of ordinary shares (in shares) | 70,287,726 | |||||||||||||||||
Repurchase of common stock shares | 141,064,215 | 141,064,215 | ||||||||||||||||
Ordinary shares authorized (in shares) | 24,114,698,720 | 24,114,698,720 | 24,114,698,720 | 24,114,698,720 | ||||||||||||||
Ordinary shares par value (in dollars per share) | $ / shares | $ 0.00002 | |||||||||||||||||
Class A Ordinary Shares | Prevailing market prices | ||||||||||||||||||
Ordinary shares | ||||||||||||||||||
Repurchase of ordinary shares | ¥ 6,470,600 | $ 910,500 | ¥ 1,319,800 | $ 187,300 | ||||||||||||||
Repurchase of ordinary shares (in shares) | 182,772,129 | 182,772,129 | 41,707,914 | 41,707,914 | ||||||||||||||
Total consideration paid | ¥ 5,150,600 | $ 723,200 | ||||||||||||||||
Forfeited (in shares) | 35,246,628 | |||||||||||||||||
Repurchased and retired shares | 123,459,369 | 123,459,369 | ||||||||||||||||
Ordinary shares par value (in dollars per share) | $ / shares | $ 0.00002 | $ 0.00002 | ||||||||||||||||
Class A Ordinary Shares | Propitious Global Holdings Limited | ||||||||||||||||||
Ordinary shares | ||||||||||||||||||
Conversion ratio | 1 | |||||||||||||||||
Number of Class B ordinary shares converted into Class A ordinary shares | 727,407,230 | |||||||||||||||||
Class A Ordinary Shares | Ever Orient International Limited | ||||||||||||||||||
Ordinary shares | ||||||||||||||||||
Conversion ratio | 1 | 1 | 1 | 1 | ||||||||||||||
Number of Class B ordinary shares converted into Class A ordinary shares | 1,014,947 | 1,165,668 | 1,144,392 | 1,023,202 | ||||||||||||||
Class A Ordinary Shares | Clover Rich Limited | ||||||||||||||||||
Ordinary shares | ||||||||||||||||||
Conversion ratio | 1 | 1 | 1 | 1 | ||||||||||||||
Number of Class B ordinary shares converted into Class A ordinary shares | 440,370 | 505,766 | 496,534 | 443,952 | ||||||||||||||
Class A Ordinary Shares | RSU | 2022 Share Incentive Plan | ||||||||||||||||||
Ordinary shares | ||||||||||||||||||
Restriction period | 5 years | |||||||||||||||||
Class A Ordinary Shares | RSU | 2022 Share Incentive Plan | Mr. PENG Yongdong, Chairman and Chief executive officer [Member] | ||||||||||||||||||
Ordinary shares | ||||||||||||||||||
Number of shares issued | 71,824,250 | |||||||||||||||||
Class A Ordinary Shares | RSU | 2022 Share Incentive Plan | Mr. SHAN Yigang, an executive director | ||||||||||||||||||
Ordinary shares | ||||||||||||||||||
Number of shares issued | 53,868,189 | |||||||||||||||||
Class B Ordinary Shares | ||||||||||||||||||
Ordinary shares | ||||||||||||||||||
Ordinary shares authorized (in shares) | 885,301,280 | 885,301,280 | 885,301,280 | 885,301,280 | ||||||||||||||
Ordinary shares par value (in dollars per share) | $ / shares | $ 0.00002 | |||||||||||||||||
Class B Ordinary Shares | Ever Orient International Limited | ||||||||||||||||||
Ordinary shares | ||||||||||||||||||
Conversion ratio | 1 | |||||||||||||||||
Number of Class B ordinary shares converted into Class A ordinary shares | 212,479 | |||||||||||||||||
Class B Ordinary Shares | Clover Rich Limited | ||||||||||||||||||
Ordinary shares | ||||||||||||||||||
Conversion ratio | 1 | |||||||||||||||||
Number of Class B ordinary shares converted into Class A ordinary shares | 92,191 | |||||||||||||||||
ADS | ||||||||||||||||||
Ordinary shares | ||||||||||||||||||
Consideration for repurchase of shares | $ | $ 1,000,000 | |||||||||||||||||
Repurchase of share authorization | $ | $ 2,000,000 | $ 1,000,000 |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
FAIR VALUE MEASUREMENT | ||
Total | ¥ 57,312,737 | ¥ 52,909,220 |
Short-term time deposits | ||
FAIR VALUE MEASUREMENT | ||
Short-term investments | 7,690,166 | 3,911,410 |
Long-term time deposits | ||
FAIR VALUE MEASUREMENT | ||
Long-term investments | 15,352,785 | 11,064,516 |
Held-to-maturity debt investments | ||
FAIR VALUE MEASUREMENT | ||
Short-term investments | 144,133 | 3,571,060 |
Long-term investments | 1,701,240 | 138,485 |
Quoted prices in active markets for identical assets (Level 1) | ||
FAIR VALUE MEASUREMENT | ||
Total | 32,745 | 107,549 |
Quoted prices in active markets for identical assets (Level 1) | Short-term time deposits | ||
FAIR VALUE MEASUREMENT | ||
Short-term investments | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Long-term time deposits | ||
FAIR VALUE MEASUREMENT | ||
Long-term investments | 0 | 0 |
Quoted prices in active markets for identical assets (Level 1) | Held-to-maturity debt investments | ||
FAIR VALUE MEASUREMENT | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Significant other observable inputs (Level 2) | ||
FAIR VALUE MEASUREMENT | ||
Total | 54,663,377 | 49,585,218 |
Significant other observable inputs (Level 2) | Short-term time deposits | ||
FAIR VALUE MEASUREMENT | ||
Short-term investments | 7,690,166 | 3,911,410 |
Significant other observable inputs (Level 2) | Long-term time deposits | ||
FAIR VALUE MEASUREMENT | ||
Long-term investments | 15,352,785 | 11,064,516 |
Significant other observable inputs (Level 2) | Held-to-maturity debt investments | ||
FAIR VALUE MEASUREMENT | ||
Short-term investments | 144,133 | 3,571,060 |
Long-term investments | 1,701,240 | 138,485 |
Significant other unobservable inputs (Level 3) | ||
FAIR VALUE MEASUREMENT | ||
Total | 2,530,375 | 3,125,448 |
Significant other unobservable inputs (Level 3) | Short-term time deposits | ||
FAIR VALUE MEASUREMENT | ||
Short-term investments | 0 | 0 |
Significant other unobservable inputs (Level 3) | Long-term time deposits | ||
FAIR VALUE MEASUREMENT | ||
Long-term investments | 0 | 0 |
Significant other unobservable inputs (Level 3) | Held-to-maturity debt investments | ||
FAIR VALUE MEASUREMENT | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Recurring | Equity investments without readily determinable fair value using NAV practical expedient | ||
FAIR VALUE MEASUREMENT | ||
Long-term investments | 86,240 | 91,005 |
Recurring | Equity investments at fair value with readily determinable fair value | ||
FAIR VALUE MEASUREMENT | ||
Long-term investments | 32,745 | 37,134 |
Recurring | Investments accounted for at fair value | ||
FAIR VALUE MEASUREMENT | ||
Long-term investments | 1,026,555 | |
Investments accounted for at fair value | 627,367 | |
Recurring | Listed equity securities | ||
FAIR VALUE MEASUREMENT | ||
Short-term investments | 70,415 | |
Recurring | Wealth management products | ||
FAIR VALUE MEASUREMENT | ||
Short-term investments | 26,415,902 | 26,491,683 |
Recurring | Available-for-sale debt investments | ||
FAIR VALUE MEASUREMENT | ||
Short-term investments | 1,380,668 | |
Long-term investments | 5,262,159 | 5,126,289 |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Equity investments at fair value with readily determinable fair value | ||
FAIR VALUE MEASUREMENT | ||
Long-term investments | 32,745 | 37,134 |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Investments accounted for at fair value | ||
FAIR VALUE MEASUREMENT | ||
Long-term investments | 0 | |
Investments accounted for at fair value | 0 | |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Listed equity securities | ||
FAIR VALUE MEASUREMENT | ||
Short-term investments | 70,415 | |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Wealth management products | ||
FAIR VALUE MEASUREMENT | ||
Short-term investments | 0 | 0 |
Recurring | Quoted prices in active markets for identical assets (Level 1) | Available-for-sale debt investments | ||
FAIR VALUE MEASUREMENT | ||
Short-term investments | 0 | |
Long-term investments | 0 | 0 |
Recurring | Significant other observable inputs (Level 2) | Equity investments at fair value with readily determinable fair value | ||
FAIR VALUE MEASUREMENT | ||
Long-term investments | 0 | 0 |
Recurring | Significant other observable inputs (Level 2) | Investments accounted for at fair value | ||
FAIR VALUE MEASUREMENT | ||
Long-term investments | 900,500 | |
Investments accounted for at fair value | 512,200 | |
Recurring | Significant other observable inputs (Level 2) | Listed equity securities | ||
FAIR VALUE MEASUREMENT | ||
Short-term investments | 0 | |
Recurring | Significant other observable inputs (Level 2) | Wealth management products | ||
FAIR VALUE MEASUREMENT | ||
Short-term investments | 24,000,694 | 23,492,290 |
Recurring | Significant other observable inputs (Level 2) | Available-for-sale debt investments | ||
FAIR VALUE MEASUREMENT | ||
Short-term investments | 1,380,668 | |
Long-term investments | 5,262,159 | 5,126,289 |
Recurring | Significant other unobservable inputs (Level 3) | Equity investments at fair value with readily determinable fair value | ||
FAIR VALUE MEASUREMENT | ||
Long-term investments | 0 | 0 |
Recurring | Significant other unobservable inputs (Level 3) | Investments accounted for at fair value | ||
FAIR VALUE MEASUREMENT | ||
Long-term investments | 126,055 | |
Investments accounted for at fair value | 115,167 | |
Recurring | Significant other unobservable inputs (Level 3) | Listed equity securities | ||
FAIR VALUE MEASUREMENT | ||
Short-term investments | 0 | |
Recurring | Significant other unobservable inputs (Level 3) | Wealth management products | ||
FAIR VALUE MEASUREMENT | ||
Short-term investments | 2,415,208 | 2,999,393 |
Recurring | Significant other unobservable inputs (Level 3) | Available-for-sale debt investments | ||
FAIR VALUE MEASUREMENT | ||
Short-term investments | 0 | |
Long-term investments | ¥ 0 | ¥ 0 |
FAIR VALUE MEASUREMENT - Activi
FAIR VALUE MEASUREMENT - Activities related to fair value of assets (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Summary of activities related to fair value of assets | ||
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Fair value changes in investments, net | Fair value changes in investments, net |
Level 3 | Long-term wealth management products | ||
Summary of activities related to fair value of assets | ||
Beginning balance | ¥ 126,055 | ¥ 3,583,898 |
Change in fair value | 4,007 | (283,214) |
Exchange adjustment | 132,304 | |
Dividend Received | (412) | |
Investment Made | 46,972 | |
Disposal | (14,895) | (36,000) |
Transfer to short-term investment | (3,317,493) | |
Ending balance | 115,167 | 126,055 |
Recurring | Level 3 | Short-term wealth management products | ||
Summary of activities related to fair value of assets | ||
Beginning balance | 2,999,393 | 2,289,646 |
Transfer from long-term investment | 3,317,493 | |
Change in fair value | 136,907 | (1,077) |
Exchange adjustment | 48,354 | 197,924 |
Disposal | (769,446) | (2,804,593) |
Ending balance | ¥ 2,415,208 | ¥ 2,999,393 |
FAIR VALUE MEASUREMENT - Additi
FAIR VALUE MEASUREMENT - Additional information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
FAIR VALUE MEASUREMENT | |||
Impairment on acquired intangible assets | ¥ 0 | ¥ 6,300 | ¥ 14,300 |
Impairment charge on goodwill | 93,417 | 141,755 | 732,400 |
Significant other unobservable inputs (Level 3) | |||
FAIR VALUE MEASUREMENT | |||
Impairment charge on goodwill | ¥ 93,400 | ¥ 141,800 | ¥ 732,400 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Apr. 20, 2022 segment | Dec. 31, 2023 CNY (¥) segment | Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
SEGMENT INFORMATION | |||||
Number of reportable segments | segment | 1 | 1 | |||
Number of operating segments | segment | 4 | 4 | 4 | ||
Net revenues | ¥ 77,776,932 | $ 10,954,652 | ¥ 60,668,779 | ¥ 80,752,439 | |
Material costs, property leasing costs, commission and compensation costs: | (51,303,873) | (41,915,394) | (58,133,203) | ||
Contribution | 26,473,059 | 18,753,385 | 22,619,236 | ||
Existing home transaction services | |||||
SEGMENT INFORMATION | |||||
Net revenues | 27,954,135 | 24,123,703 | 31,947,953 | ||
Material costs, property leasing costs, commission and compensation costs: | (14,762,910) | (14,510,838) | (20,123,501) | ||
Contribution | 13,191,225 | 9,612,865 | 11,824,452 | ||
New home transaction services | |||||
SEGMENT INFORMATION | |||||
Net revenues | 30,575,778 | 28,650,374 | 46,472,378 | ||
Material costs, property leasing costs, commission and compensation costs: | (22,455,253) | (21,886,020) | (37,525,240) | ||
Contribution | 8,120,525 | 6,764,354 | 8,947,138 | ||
Home renovation and furnishing | |||||
SEGMENT INFORMATION | |||||
Net revenues | 10,850,497 | 5,046,627 | 197,452 | ||
Material costs, property leasing costs, commission and compensation costs: | (7,705,325) | (3,562,068) | (195,869) | ||
Contribution | 3,145,172 | 1,484,559 | 1,583 | ||
Emerging and other services | |||||
SEGMENT INFORMATION | |||||
Net revenues | 8,396,522 | 2,848,075 | 2,134,656 | ||
Material costs, property leasing costs, commission and compensation costs: | (6,380,385) | (1,956,468) | (288,593) | ||
Contribution | ¥ 2,016,137 | ¥ 891,607 | ¥ 1,846,063 |
NET INCOME (LOSS) PER SHARE (De
NET INCOME (LOSS) PER SHARE (Details) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Non-vested share options | ||
NET INCOME (LOSS) PER SHARE | ||
Shares on a weighted average basis are excluded from the calculation of diluted net loss per share | 41,217,159 | |
Non-vested RSUs | ||
NET INCOME (LOSS) PER SHARE | ||
Shares on a weighted average basis are excluded from the calculation of diluted net loss per share | 4,437,739 | 31,140 |
Non-vested restricted shares | ||
NET INCOME (LOSS) PER SHARE | ||
Shares on a weighted average basis are excluded from the calculation of diluted net loss per share | 24,445,441 |
NET INCOME (LOSS) PER SHARE - C
NET INCOME (LOSS) PER SHARE - Computation of basic and diluted net loss per share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) ¥ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | |
Numerator | ||||
Net income (loss) attributable to KE Holdings Inc. | ¥ 5,883,224 | $ 828,636 | ¥ (1,386,074) | ¥ (524,129) |
Net income (loss) attributable to KE Holdings Inc.'s ordinary shareholders | ¥ 5,883,224 | $ 828,636 | ¥ (1,386,074) | ¥ (524,129) |
Denominator | ||||
Denominator for basic net income (loss) per share-weighted average ordinary shares outstanding | 3,521,379,938 | 3,521,379,938 | 3,569,179,079 | 3,549,121,628 |
Denominator for diluted net income (loss) per share-weighted average ordinary shares outstanding | 3,611,653,020 | 3,611,653,020 | 3,569,179,079 | 3,549,121,628 |
Net income (loss) per share attributable to ordinary shareholders | ||||
- Basic (per share) | (per share) | ¥ 1.67 | $ 0.24 | ¥ (0.39) | ¥ (0.15) |
- Diluted (per share) | (per share) | ¥ 1.63 | $ 0.23 | ¥ (0.39) | ¥ (0.15) |
Employee Stock Option | ||||
Denominator | ||||
Adjustments for dilutive share options | 9,338,346 | 9,338,346 | 0 | 0 |
Restricted Stock | ||||
Denominator | ||||
Adjustments for dilutive share options | 72,916,553 | 72,916,553 | 0 | 0 |
RSU | ||||
Denominator | ||||
Adjustments for dilutive share options | 8,018,183 | 8,018,183 | 0 | 0 |
RELATED PARTY TRANSACTIONS - Re
RELATED PARTY TRANSACTIONS - Revenues from related parties (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Related party | |||
RELATED PARTY TRANSACTIONS | |||
Revenues | ¥ 865,647 | ¥ 664,203 | ¥ 847,890 |
Online marketing services | Ziroom | |||
RELATED PARTY TRANSACTIONS | |||
Revenues | 74,961 | 90,262 | 104,888 |
Platform services | IFM | |||
RELATED PARTY TRANSACTIONS | |||
Revenues | 91,825 | 65,258 | 69,717 |
Agency services | Ziroom | |||
RELATED PARTY TRANSACTIONS | |||
Revenues | 51,118 | 34,197 | 53,150 |
Agency services | Yuanjing Mingde | |||
RELATED PARTY TRANSACTIONS | |||
Revenues | 6,901 | 5,183 | 4,491 |
Technical Services | Tencent | |||
RELATED PARTY TRANSACTIONS | |||
Revenues | 0 | 745 | 1,608 |
Agency services and other services | Shengdu | |||
RELATED PARTY TRANSACTIONS | |||
Revenues | 0 | 8,700 | 7,565 |
Agency services, online marketing services and home renovation services | Vanlian | |||
RELATED PARTY TRANSACTIONS | |||
Revenues | 0 | 0 | 174,511 |
Commission support services | Brokerage firms | |||
RELATED PARTY TRANSACTIONS | |||
Revenues | 606,062 | 441,471 | 423,448 |
Platform and franchise services | Brokerage firms | |||
RELATED PARTY TRANSACTIONS | |||
Revenues | 27,184 | 13,011 | 8,512 |
Others | |||
RELATED PARTY TRANSACTIONS | |||
Revenues | ¥ 7,596 | ¥ 5,376 | ¥ 0 |
RELATED PARTY TRANSACTIONS - Se
RELATED PARTY TRANSACTIONS - Services provided by related parties (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
RELATED PARTY TRANSACTIONS | ||||
Cost of Revenue | ¥ 56,058,918 | $ 7,895,733 | ¥ 46,888,032 | ¥ 64,933,024 |
Home Furnishing Services [Member] | ||||
RELATED PARTY TRANSACTIONS | ||||
Purchase of home furnishing goods | 144,119 | 1,595 | ||
Tencent | Online marketing services | ||||
RELATED PARTY TRANSACTIONS | ||||
Cost of Revenue | 122,452 | 159,564 | 193,866 | |
Yuanjing Mingde | Rental and property management services | ||||
RELATED PARTY TRANSACTIONS | ||||
Cost of Revenue | 21,882 | 27,379 | 30,609 | |
Ziroom | Referral services | ||||
RELATED PARTY TRANSACTIONS | ||||
Cost of Revenue | 10,661 | 8,131 | 7,942 | |
IFM | Referral services | ||||
RELATED PARTY TRANSACTIONS | ||||
Cost of Revenue | 6,339 | 5,590 | 10,672 | |
Brokerage firms | Referral services | ||||
RELATED PARTY TRANSACTIONS | ||||
Cost of Revenue | 853,139 | 673,972 | 831,591 | |
Others | ||||
RELATED PARTY TRANSACTIONS | ||||
Cost of Revenue | 35,917 | 1,122 | 1,322 | |
Related party | ||||
RELATED PARTY TRANSACTIONS | ||||
Cost of Revenue | 1,050,390 | 875,758 | ¥ 1,076,002 | |
Affiliated Entity [Member] | ||||
RELATED PARTY TRANSACTIONS | ||||
Purchase of home furnishing goods | ¥ 144,119 | ¥ 1,595 |
RELATED PARTY TRANSACTIONS - Ot
RELATED PARTY TRANSACTIONS - Other income (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
RELATED PARTY TRANSACTIONS | ||||
Interest income, net | ¥ 1,263,332 | $ 177,937 | ¥ 743,484 | ¥ 354,567 |
Related party | ||||
RELATED PARTY TRANSACTIONS | ||||
Interest income, net | 6,987 | 5,954 | 3,659 | |
Related party | IFM | ||||
RELATED PARTY TRANSACTIONS | ||||
Interest income, net | 5,076 | (753) | 2,209 | |
Related party | Xinhewan | ||||
RELATED PARTY TRANSACTIONS | ||||
Interest income, net | 0 | 4,301 | 0 | |
Related party | Others Related Parties [Member] | ||||
RELATED PARTY TRANSACTIONS | ||||
Interest income, net | ¥ 1,911 | ¥ 2,406 | ¥ 1,450 |
RELATED PARTY TRANSACTIONS - Le
RELATED PARTY TRANSACTIONS - Lease balances and transactions (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
RELATED PARTY TRANSACTIONS | |||
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenue from Contract with Customer, Excluding Assessed Tax | Revenue from Contract with Customer, Excluding Assessed Tax | |
Operating lease, Total | ¥ 6,002,500 | ¥ 1,523,000 | ¥ 635,600 |
Yuanjing Mingde | |||
RELATED PARTY TRANSACTIONS | |||
Total operating lease cost | 12,133 | 18,092 | 18,358 |
Operating lease liabilities, current | 4,509 | 4,284 | |
Operating lease liabilities, non-current | 70,940 | 75,449 | |
Yuanjing Mingde | Store leases | |||
RELATED PARTY TRANSACTIONS | |||
Total operating lease assets | 69,391 | 77,625 | |
Ziroom | |||
RELATED PARTY TRANSACTIONS | |||
Total operating lease cost | 72 | 175 | 100 |
Operating lease liabilities, current | 26 | ||
Ziroom | Administrative office leases | |||
RELATED PARTY TRANSACTIONS | |||
Total operating lease assets | 72 | ||
Brokerage firms | |||
RELATED PARTY TRANSACTIONS | |||
Total operating lease cost | 35 | 0 | 49 |
Operating lease liabilities, current | 41 | ||
Operating lease liabilities, non-current | 7 | ||
Brokerage firms | Administrative office leases | |||
RELATED PARTY TRANSACTIONS | |||
Total operating lease assets | 48 | ||
Related party | |||
RELATED PARTY TRANSACTIONS | |||
Total operating lease cost | 12,240 | 18,267 | 18,507 |
Operating lease, Total | 3,046 | 2,219 | 0 |
Total operating lease assets | 69,439 | 77,697 | |
Total operating lease liabilities | 75,497 | 79,759 | |
Suofeiya Shengdu | |||
RELATED PARTY TRANSACTIONS | |||
Operating lease, Total | ¥ 3,046 | ¥ 2,219 | ¥ 0 |
RELATED PARTY TRANSACTIONS - Ba
RELATED PARTY TRANSACTIONS - Balances with related parties (Details) - Related party ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
RELATED PARTY TRANSACTIONS | |||
Amounts due from and prepayments to related parties | ¥ 419,270 | $ 59,053 | ¥ 405,956 |
Amounts due to related parties | 430,350 | $ 60,614 | 425,685 |
Ziroom | |||
RELATED PARTY TRANSACTIONS | |||
Amounts due from and prepayments to related parties | 350,047 | 345,212 | |
Amounts due to related parties | 35,282 | 33,530 | |
Yuanjing Mingde | |||
RELATED PARTY TRANSACTIONS | |||
Amounts due from and prepayments to related parties | 7,668 | 6,806 | |
Amounts due to related parties | 17,819 | 6,983 | |
IFM | |||
RELATED PARTY TRANSACTIONS | |||
Amounts due from and prepayments to related parties | 3,128 | 7,400 | |
Amounts due to related parties | 31,299 | 27,091 | |
Brokerage firms | |||
RELATED PARTY TRANSACTIONS | |||
Amounts due from and prepayments to related parties | 20,713 | 19,551 | |
Amounts due to related parties | 302,246 | 315,977 | |
Tencent | |||
RELATED PARTY TRANSACTIONS | |||
Amounts due from and prepayments to related parties | 2,542 | 2,258 | |
Amounts due to related parties | 35,002 | 34,723 | |
Others | |||
RELATED PARTY TRANSACTIONS | |||
Amounts due from and prepayments to related parties | 35,172 | 24,729 | |
Amounts due to related parties | ¥ 8,702 | ¥ 7,381 |
RELATED PARTY TRANSACTIONS - Lo
RELATED PARTY TRANSACTIONS - Loan receivables from related parties (Details) - Related party ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) |
RELATED PARTY TRANSACTIONS | |||
Long-term loan receivables from related parties | ¥ 27,000 | $ 3,803 | ¥ 22,934 |
Total | 55,030 | 73,397 | |
IFM | |||
RELATED PARTY TRANSACTIONS | |||
Short-term loans to related parties | 15,000 | 20,000 | |
Long-term loan receivables from related parties | 27,000 | 0 | |
Others | |||
RELATED PARTY TRANSACTIONS | |||
Short-term loans to related parties | 13,030 | 15,846 | |
Long-term loan receivables from related parties | 0 | 5,000 | |
Xinhewan | |||
RELATED PARTY TRANSACTIONS | |||
Current portion of long-term loans to related parties | 0 | 14,617 | |
Long-term loan receivables from related parties | ¥ 0 | ¥ 17,934 |
RELATED PARTY TRANSACTIONS - Do
RELATED PARTY TRANSACTIONS - Donation Agreement (Details) - Donation Agreement - CNY (¥) ¥ in Millions | 12 Months Ended | |
Sep. 05, 2022 | Dec. 31, 2023 | |
Beike Zhaofang (Beijing) Technology Co Ltd Member | ||
RELATED PARTY TRANSACTIONS | ||
Amount of donation agreed | ¥ 30 | |
Donation period | 3 years | |
Accumulated donation paid | ¥ 20 | |
Donation payment made by the Donator | 10 | |
Beike Zhaofang (Beijing) Technology Co Ltd Member | ||
RELATED PARTY TRANSACTIONS | ||
Amount of scholarship | ¥ 2.4 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) ¥ in Thousands | Dec. 31, 2023 CNY (¥) |
COMMITMENTS AND CONTINGENCIES | |
Total | ¥ 693,012 |
Operating leases commitments | |
COMMITMENTS AND CONTINGENCIES | |
Total | 427,799 |
Land use rights | |
COMMITMENTS AND CONTINGENCIES | |
Total | 154,575 |
investment commitments | |
COMMITMENTS AND CONTINGENCIES | |
Total | 105,027 |
Purchase of property and equipment | |
COMMITMENTS AND CONTINGENCIES | |
Total | 3,793 |
Purchase of services | |
COMMITMENTS AND CONTINGENCIES | |
Total | ¥ 1,818 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Maturity (Details) ¥ in Thousands | Dec. 31, 2023 CNY (¥) |
Purchase Obligations | |
2024 | ¥ 373,394 |
2025 | 115,740 |
2026 | 90,821 |
2027 | 50,309 |
Thereafter | 62,748 |
Total | ¥ 693,012 |
DIVIDENDS (Details)
DIVIDENDS (Details) $ / shares in Units, ¥ in Thousands, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2023 $ / shares | Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
DIVIDENDS | |||||
Dividends | ¥ | ¥ 1,425,707 | ¥ 0 | ¥ 0 | ||
Ordinary share, per share | $ 0.057 | ||||
Dividend paid | $ | $ 198.5 | ||||
ADS | |||||
DIVIDENDS | |||||
Ordinary share, per share | $ 0.171 |
STATUTORY RESERVES AND RESTRI_3
STATUTORY RESERVES AND RESTRICTED NET ASSETS (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS | |||
Appropriation to statutory reserves | ¥ 150.3 | ¥ 176.9 | ¥ 91.1 |
Net assets subject to restriction on the distribution of share capital | ¥ 21,200 |
STATUTORY RESERVES AND RESTRI_4
STATUTORY RESERVES AND RESTRICTED NET ASSETS - Condensed balance sheets of the parent company (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | Dec. 31, 2023 CNY (¥) shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 USD ($) $ / shares shares | Aug. 12, 2022 $ / shares shares | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Current assets: | ||||||||
Cash and cash equivalents | ¥ 19,634,716 | $ 2,765,492 | ¥ 19,413,202 | $ 2,734,292 | ¥ 20,446,104 | ¥ 40,969,979 | ||
Short-term Investments | 34,257,958 | 4,825,132 | 35,485,908 | |||||
Prepayments, receivables and other assets | 4,666,976 | 657,331 | 4,057,843 | |||||
Noncurrent assets: | ||||||||
Longterm investments, net | 23,570,988 | 3,319,904 | 17,925,653 | |||||
TOTAL ASSETS | 120,331,931 | 16,948,398 | 109,347,347 | |||||
Current liabilities | ||||||||
Accrued expenses and other current liabilities | 5,695,948 | 802,257 | 4,118,068 | |||||
TOTAL LIABILITIES | 48,130,826 | 6,779,085 | 40,292,909 | |||||
SHAREHOLDERS' EQUITY | ||||||||
Ordinary shares | [1] | 475 | 67 | 487 | ||||
Treasury shares | (866,198) | (122,001) | (225,329) | |||||
Additional paidin capital | 77,583,054 | 10,927,345 | 80,302,956 | |||||
Accumulated other comprehensive income (loss) | 244,302 | 34,409 | (412,721) | |||||
Accumulated deficit | (5,672,916) | (799,014) | (11,405,850) | |||||
Total KE Holdings Inc. shareholders' equity | 72,099,824 | 10,155,048 | 68,920,360 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | ¥ 120,331,931 | $ 16,948,398 | ¥ 109,347,347 | |||||
Ordinary Shares, par value | $ / shares | $ 0.00002 | $ 0.00002 | ||||||
Ordinary shares, shares authorized | shares | 25,000,000,000 | 25,000,000,000 | 25,000,000,000 | 25,000,000,000 | ||||
Related Party | ||||||||
Current assets: | ||||||||
Amounts due from subsidiaries and VIEs | ¥ 419,270 | $ 59,053 | ¥ 405,956 | |||||
Class A Ordinary Shares | ||||||||
SHAREHOLDERS' EQUITY | ||||||||
Ordinary Shares, par value | $ / shares | $ 0.00002 | |||||||
Ordinary shares, shares authorized | shares | 24,114,698,720 | 24,114,698,720 | 24,114,698,720 | 24,114,698,720 | 24,114,698,720 | |||
Ordinary shares, shares issued | shares | 3,571,960,220 | 3,571,960,220 | 3,601,547,279 | 3,601,547,279 | ||||
Ordinary shares, shares outstanding | shares | 3,443,860,844 | 3,443,860,844 | 3,561,632,933 | 3,561,632,933 | ||||
Class B Ordinary Shares | ||||||||
SHAREHOLDERS' EQUITY | ||||||||
Ordinary Shares, par value | $ / shares | $ 0.00002 | |||||||
Ordinary shares, shares authorized | shares | 885,301,280 | 885,301,280 | 885,301,280 | 885,301,280 | 885,301,280 | |||
Ordinary shares, shares issued | shares | 151,354,549 | 151,354,549 | 156,426,896 | 156,426,896 | ||||
Ordinary shares, shares outstanding | shares | 151,354,549 | 151,354,549 | 156,426,896 | 156,426,896 | ||||
Parent | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | ¥ 9,414 | ¥ 12,818 | ¥ 55,235 | ¥ 3,261,585 | ||||
Short-term Investments | 537,847 | 7,372,995 | ||||||
Prepayments, receivables and other assets | 2,003 | 13,927 | ||||||
Noncurrent assets: | ||||||||
Investment in subsidiaries | 67,805,473 | 56,064,739 | ||||||
Net assets of the VIEs | 3,061,116 | 3,716,231 | ||||||
Longterm investments, net | 516,873 | |||||||
TOTAL ASSETS | 72,104,629 | 68,924,489 | ||||||
Current liabilities | ||||||||
Accrued expenses and other current liabilities | 4,805 | 4,129 | ||||||
TOTAL LIABILITIES | 4,805 | 4,129 | ||||||
SHAREHOLDERS' EQUITY | ||||||||
Ordinary shares | 475 | 487 | ||||||
Treasury shares | (866,198) | (225,329) | ||||||
Additional paidin capital | 77,583,054 | 80,302,956 | ||||||
Accumulated other comprehensive income (loss) | 244,302 | (412,721) | ||||||
Accumulated deficit | (4,861,809) | (10,745,033) | ||||||
Total KE Holdings Inc. shareholders' equity | 72,099,824 | 68,920,360 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | ¥ 72,104,629 | ¥ 68,924,489 | ||||||
Ordinary Shares, par value | $ / shares | $ 0.00002 | $ 0.00002 | ||||||
Ordinary shares, shares authorized | shares | 25,000,000,000 | 25,000,000,000 | 25,000,000,000 | 25,000,000,000 | ||||
Parent | Affiliated Entity [Member] | ||||||||
Current assets: | ||||||||
Amounts due from subsidiaries and VIEs | ¥ 688,776 | ¥ 1,226,906 | ||||||
Parent | Class A Ordinary Shares | ||||||||
SHAREHOLDERS' EQUITY | ||||||||
Ordinary shares, shares authorized | shares | 24,114,698,720 | 24,114,698,720 | 24,114,698,720 | 24,114,698,720 | ||||
Ordinary shares, shares issued | shares | 3,571,960,220 | 3,571,960,220 | 3,601,547,279 | 3,601,547,279 | ||||
Ordinary shares, shares outstanding | shares | 3,443,860,844 | 3,443,860,844 | 3,571,960,220 | 3,571,960,220 | ||||
Parent | Class B Ordinary Shares | ||||||||
SHAREHOLDERS' EQUITY | ||||||||
Ordinary shares, shares authorized | shares | 885,301,280 | 885,301,280 | 885,301,280 | 885,301,280 | ||||
Ordinary shares, shares issued | shares | 151,354,549 | 151,354,549 | 156,426,896 | 156,426,896 | ||||
Ordinary shares, shares outstanding | shares | 151,354,549 | 151,354,549 | 156,426,896 | 156,426,896 | ||||
[1]Excluding the Class A ordinary shares registered in the name of the depositary bank for future issuance of ADSs upon the exercise or vesting of awards granted under our share incentive plans and the Class A ordinary shares repurchased but not cancelled in the form of ADSs. |
STATUTORY RESERVES AND RESTRI_5
STATUTORY RESERVES AND RESTRICTED NET ASSETS - Condensed statements of comprehensive income (loss) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS | ||||
Sales and marketing expenses | ¥ (6,654,178) | $ (937,221) | ¥ (4,573,382) | ¥ (4,309,116) |
General and administrative expenses | (8,236,569) | (1,160,096) | (7,346,665) | (8,924,470) |
Research and development expenses | (1,936,780) | (272,790) | (2,545,549) | (3,193,988) |
Interest income, net | 1,263,332 | 177,937 | 743,484 | 354,567 |
Share of income (loss) of subsidiaries | 9,098 | 1,281 | 44,588 | 39,520 |
Fair value changes through earnings on investments, net | 78,320 | 11,031 | (512,225) | 564,804 |
Foreign currency exchange loss | (93,956) | (13,233) | (127,362) | 20,988 |
Other income, net | 1,869,300 | 263,285 | 1,568,587 | 1,702,414 |
Income before income tax expense | 7,883,995 | 1,110,439 | 292,290 | 1,140,726 |
Income tax expense | (1,994,391) | (280,904) | (1,689,574) | (1,665,492) |
Net income (loss) attributable to KE Holdings Inc. | 5,883,224 | 828,636 | (1,386,074) | (524,129) |
Net income (loss) attributable to KE Holdings Inc.'s ordinary shareholders | 5,883,224 | 828,636 | (1,386,074) | (524,129) |
Other comprehensive income (loss) | ||||
Unrealized gains (losses) on available-for-sale investments, net of reclassification | 82,800 | 11,662 | (375,069) | 35,578 |
Total comprehensive income (loss) | 6,540,247 | 921,176 | 840,928 | (1,329,765) |
Comprehensive income (loss) attributable to KE Holdings Inc.'s ordinary shareholders | 6,540,247 | $ 921,176 | 840,928 | (1,329,765) |
Parent | ||||
STATUTORY RESERVES AND RESTRICTED NET ASSETS | ||||
Sales and marketing expenses | 0 | 0 | (10,227) | |
General and administrative expenses | (45,781) | (140,148) | (82,109) | |
Research and development expenses | 0 | 0 | (57) | |
Interest income, net | 52,460 | 745 | 3,035 | |
Share of income (loss) of subsidiaries | 5,618,262 | (1,436,950) | (696,144) | |
Income (loss) of the VIEs | 194,884 | 97,036 | (52,436) | |
Fair value changes through earnings on investments, net | 45,235 | 4,770 | 183,991 | |
Foreign currency exchange loss | (30,089) | (61,317) | (3,968) | |
Other income, net | 48,253 | 149,790 | 133,786 | |
Income before income tax expense | 5,883,224 | (1,386,074) | (524,129) | |
Income tax expense | 0 | 0 | 0 | |
Net income (loss) attributable to KE Holdings Inc. | 5,883,224 | (1,386,074) | (524,129) | |
Net income (loss) attributable to KE Holdings Inc.'s ordinary shareholders | 5,883,224 | (1,386,074) | (524,129) | |
Other comprehensive income (loss) | ||||
Currency translation adjustments | 574,223 | 2,602,071 | (841,214) | |
Unrealized gains (losses) on available-for-sale investments, net of reclassification | 82,800 | (375,069) | 35,578 | |
Total comprehensive income (loss) | 6,540,247 | 840,928 | (1,329,765) | |
Comprehensive income (loss) attributable to KE Holdings Inc.'s ordinary shareholders | ¥ 6,540,247 | ¥ 840,928 | ¥ (1,329,765) |
STATUTORY RESERVES AND RESTRI_6
STATUTORY RESERVES AND RESTRICTED NET ASSETS - Condensed statements of cash flows (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 CNY (¥) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | |
STATUTORY RESERVES AND RESTRICTED NET ASSETS | ||||
Net cash provided by (used in) operating activities | ¥ 11,157,625 | $ 1,571,522 | ¥ 8,460,754 | ¥ 3,595,122 |
Net cash provided by (used in) investing activities | (3,977,440) | (560,210) | (8,472,355) | (24,884,074) |
Net cash provided by (used in) financing activities | (6,961,591) | (980,519) | (1,154,993) | (1,074,173) |
Effect of exchange rate changes on cash and cash equivalents | 44,608 | 6,278 | 28,644 | (442,141) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 263,202 | 37,071 | (1,137,950) | (22,805,266) |
Cash and cash equivalents at the beginning of the year | 19,413,202 | 2,734,292 | 20,446,104 | 40,969,979 |
Cash and cash equivalents at the end of the year | 19,634,716 | $ 2,765,492 | 19,413,202 | 20,446,104 |
Parent | ||||
STATUTORY RESERVES AND RESTRICTED NET ASSETS | ||||
Net cash provided by (used in) operating activities | 62,063 | (58,875) | (10,302) | |
Net cash provided by (used in) investing activities | 6,933,723 | 1,348,740 | (3,183,233) | |
Net cash provided by (used in) financing activities | (6,576,333) | (1,319,793) | 7 | |
Effect of exchange rate changes on cash and cash equivalents | (422,857) | (12,489) | (12,822) | |
Net increase (decrease) in cash and cash equivalents and restricted cash | (3,404) | (42,417) | (3,206,350) | |
Cash and cash equivalents at the beginning of the year | 12,818 | 55,235 | 3,261,585 | |
Cash and cash equivalents at the end of the year | ¥ 9,414 | ¥ 12,818 | ¥ 55,235 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ / shares in Units, ¥ in Thousands, $ in Millions | 1 Months Ended | 4 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jan. 31, 2024 CNY (¥) | Aug. 31, 2023 $ / shares | Apr. 26, 2024 USD ($) shares | Jun. 30, 2024 USD ($) $ / shares | Dec. 31, 2023 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Jan. 16, 2024 | Oct. 31, 2023 CNY (¥) | Oct. 08, 2023 CNY (¥) | |
SUBSEQUENT EVENTS | ||||||||||
Repurchase of ordinary shares | ¥ | ¥ 5,150,628 | ¥ 1,319,796 | ||||||||
Common stock, dividends, Per share | $ / shares | $ 0.057 | |||||||||
Total consideration of lease payments | ¥ | 18,408,496 | ¥ 309,000 | ¥ 309,000 | |||||||
Maturity amount paid off | ¥ | ¥ 7,965,277 | ¥ 3,652,435 | ¥ 3,413,301 | |||||||
Purchase of land use right terms | 40 years | 40 years | ||||||||
Operating lease, percentage of consideration | 50% | |||||||||
Total consideration amount | ¥ | ¥ 154,600 | |||||||||
ADS | ||||||||||
SUBSEQUENT EVENTS | ||||||||||
Common stock, dividends, Per share | $ / shares | $ 0.171 | |||||||||
Class A ordinary shares | ||||||||||
SUBSEQUENT EVENTS | ||||||||||
Repurchase of ordinary shares (in shares) | 70,287,726 | |||||||||
Subsequent Event | ||||||||||
SUBSEQUENT EVENTS | ||||||||||
Repurchase of ordinary shares | $ | $ 323.7 | |||||||||
Conversion ratio | 1 | |||||||||
Common stock, dividends, Per share | $ / shares | $ 0.117 | |||||||||
Dividend payable | $ | $ 400 | |||||||||
Maturity amount paid off | ¥ | ¥ 154,600 | |||||||||
Operating lease, percentage of consideration | 50% | |||||||||
Subsequent Event | ADS | ||||||||||
SUBSEQUENT EVENTS | ||||||||||
Repurchase of ordinary shares (in shares) | 23,429,242 | |||||||||
Cancelled (in shares) | 15,345,247 | |||||||||
Common stock, dividends, Per share | $ / shares | $ 0.351 | |||||||||
Subsequent Event | Class A ordinary shares | ||||||||||
SUBSEQUENT EVENTS | ||||||||||
Cancelled (in shares) | 46,035,741 | |||||||||
Subsequent Event | Class B ordinary shares | ||||||||||
SUBSEQUENT EVENTS | ||||||||||
Number of Class B ordinary shares converted into Class A ordinary shares | 1,859,585 | |||||||||
Subsequent Event | Class B ordinary shares | Mr. PENG Yongdong, Chairman and Chief executive officer [Member] | ||||||||||
SUBSEQUENT EVENTS | ||||||||||
Number of Class B ordinary shares converted into Class A ordinary shares | 1,296,886 | |||||||||
Subsequent Event | Class B ordinary shares | Mr. SHAN Yigang, an executive director | ||||||||||
SUBSEQUENT EVENTS | ||||||||||
Number of Class B ordinary shares converted into Class A ordinary shares | 562,699 |