You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our consolidated financial statements and the related notes included elsewhere in this annual report. This discussion contains forward-looking statements that involve risks and uncertainties about our business and operations. Our actual results and the timing of selected events may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those we describe under “Item 3. Key Information—D. Risk Factors” and elsewhere in this annual report on Form 20-F. A. Operating Results Overview Beike is the leading integrated online and offline platform for housing transactions and services. We are a pioneer in building the industry infrastructure and standards to reinvent how service providers and customers efficiently navigate and complete housing transactions and services in China, ranging from existing and new home sales, home rentals, to home renovation and furnishing, and other services. We believe our proactive engagement with platform participants both online and offline enables us to know them better and serve them better. In 2025, we facilitated approximately 5.6 million housing transactions on our platform with an aggregate GTV of RMB3,183.3 billion (US$455.2 billion). We have five main revenue streams, namely existing home transaction services, new home transaction services, home renovation and furnishing, home rental services, and emerging and other services. For existing home transaction services, we generate revenues (i) from our own Lianjia brand where we charge commissions for existing home sales and home rentals, and split of commissions from other brokerage firms that operate brokerage stores on our Beike platform in collaboration with Lianjia agents to complete transactions, (ii) from brokerage firms which own and operate brokerage stores on our Beike platform where we receive platform service fees, and those under our franchise brands such as Deyou to which we charge an additional franchise fee, and (iii) by providing other value-added services including transaction closing services, field work assistance such as on-site verification, agent recruiting and training services. For new home transaction services, we recognize revenues from sales commissions charged to real estate developers. For home renovation and furnishing, we generate revenues by providing renovation and furnishing services to customers. For home rental services, we generate revenues by providing rental property management, leasing agency and operation services as well as various other rental-related services. In addition, we generate revenues from a variety of other housing related services, including financial services and other newly developed businesses. Our total revenues increased by 20.2% from RMB77.8 billion in 2023 to RMB93.5 billion in 2024, and further increased by 1.2% to RMB94.6 billion (US$13.5 billion) in 2025. We recorded net incomes of RMB5,890 million, RMB4,078 million and RMB2,991 million (US$428 million) in 2023, 2024 and 2025, respectively. General Factors Affecting Our Results of Operations We primarily engage in the housing related industry and are building an infrastructure for all industry participants in China. Activity level on our platform is greatly influenced, temporarily or in the long term, by the overall growth and prosperity of the housing related industry, which in turn is affected by many factors, including: ● China’s overall economic growth, ● the increase in per capita disposable income, ● the change in price, supply and demand dynamics in different geographic regions, ● the urbanization trend and demographic changes, and ● regulatory environment for China’s housing related industry and the financial condition of the industry players. 135 Table of Contents In particular, the evolving regulations have significantly affected the growth of China’s housing related industry. The resulting fluctuations have affected the demand for housing transaction and services. We expect the development of China’s housing related industry to continue to have significant impacts on our results of operations in the foreseeable future. Specific Factors Affecting Our Results of Operations While our business is exposed to general factors affecting the housing related industry in China, we believe our results of operations are primarily and more directly affected by the following specific factors: Our ability to attract housing customers and enhance customer experience Our ability to attract housing customers through facilitating housing transaction and providing home renovation and furnishing, and home rental services to customers affects our net revenues. Home ownership involves difficult decisions by most housing customers. Therefore, they tend to choose brokerage stores and agents that are most reliable and efficient in locating the ideal property and completing the transaction, and can provide high service quality and transparency. Our deep understanding of China’s housing market and goodwill accumulated through our 24 years of operation have helped us gain trust from housing customers. We have also expanded into home renovation and furnishing and home rental services, addressing long-standing industry pain points such as fragmented service quality and lack of transparency. By providing standardized and professional renovation and rental services, we are allowed to serve customers’ broader residential needs beyond housing transactions. In addition to facilitating housing transactions, we have also expanded into home renovation and furnishing and home rental services, addressing long-standing industry pain points such as fragmented service quality and lack of transparency. By providing standardized and professional renovation and rental services, we are allowed to serve customers across a broader range of housing-related needs, which enhances customer engagement and lifetime value. In 2023, 2024 and 2025, we facilitated 4.4, 5.0 and 5.6 million housing transactions on our platform, respectively, and recorded a GTV of RMB3,142.9 billion, RMB3,349.4 billion and RMB3,183.3 billion (US$455.2 billion) in aggregate, respectively. We believe we are able to attract customers mainly through our online and offline touch points, extensive and authentic property listings, and high-quality services. We aim to enhance customer experience by improving service quality, introducing AI-powered technologies, and upgrading our platform infrastructure. As we gain trust through our integrated services, customers often refer us to their contacts and return to us for their evolving housing-related needs throughout the residential life cycle, be it home rentals, home renovation and furnishing, or other services, thereby increasing customer stickiness and lifetime value. Our ability to empower real estate brokerage stores, agents, and other service providers on our platform The gross transaction value on our platform and our platform service fees are also affected by the scale, productivity and service excellence of real estate brokerage stores, agents and other service providers on our platform. While maintaining our scale advantage, we prioritize empowering real estate brokerage stores and agents and other service providers through our extensive authentic property listing database, the large number of customers, the efficient collaborative efforts promoted by our Agent Cooperation Network. Furthermore, our AI-powered technologies digitalize and standardize the professional capabilities while integrating industry best practices, enabling our service providers to efficiently navigate business opportunities and deliver high-quality services across home transactions, home renovation and furnishing, and home rental services. Our ability to deepen cooperation with real estate developers The sales commissions earned from real estate developers for our new home transaction services remains to big component to our net revenue. As China’s housing market undergoes a structural transition, we are increasingly valued by real estate developers. Real estate developers choose to work with us to take advantage of the infrastructure our platform has built, who cooperate with us in diverse ways and build up our thriving ecosystem. We believe our reputation for high-quality service among the large housing customer base and our large network of real estate brokerage stores and agents that transact actively on our platform well position us to deepen cooperation with existing and new real estate developers. 136 Table of Contents Our ability to monetize the activities on our platform The rapid adoption of our Beike platform has proven the compatibility of our infrastructure in empowering brokerage stores and agents. As of December 31, 2025, there were over 445,000 active agents and over 58,000 active brokerage stores on our platform, facilitating over 5.6 million housing transactions in 2025. As we continue to evolve our platform, we focus on enhancing the value proposition to both housing customers and service providers. For housing customers, we aim to improve service quality, transaction efficiency and overall experience across various housing-related scenarios. For service providers, we continuously enhance their capabilities through refined operations, AI-enabled technologies and optimized resource allocation, enabling them to better capture business opportunities and improve productivity. These efforts contribute to improved service quality and customer experience on our platform, which in turn support the long-term sustainability of our monetization model. We also believe that improving productivity of agents on our platform will strengthen their stickiness to our ecosystem and enhances their income potential, which in turn results in higher service fees to us as a portion of their income. Our ability to expand service offerings on our platform Our platform brings us close to a variety of participants in China’s housing transactions and services industry. In addition to housing customers, brokerage agents and real estate developers, additional industry participants are drawn to our platform and actively transact and engage with each other. We see great monetization potential by increasing our value proposition to customers and expanding our service offerings in the vast residential industry. We have built up our home renovation and furnishing services, which aim to provide a one-stop solution. According to customer needs and preferences, we provide professional services including home design, construction, customized furniture and soft furnishings delivery, to create an ideal and comfortable living space for our customers. We also developed home rental services, primarily to provide rental property management services to landlords and a worry-free experience for both landlords and tenants throughout the lease term with a full-range of rental services. We believe these efforts will help diversify our revenue mix. Our ability to manage operating costs and expenses Our results of operations are affected by our ability to control our operating costs and expenses. Our cost of revenues consists primarily of compensation to internal agents and sales professionals, and split commission to connected agents and other sales channels, cost of home renovation and furnishing, cost of home rental and cost related to Lianjia stores. For our operating expenses, we incurred share-based compensation expenses to attract and retain talents required for our platform business. Excluding share-based compensation expenses, our operating expenses as a percentage of revenue decreased from 18.3% in 2023 to 18.2% in 2024, and further decreased to 17.6% in 2025. We believe that, as we continue to optimize our business model and enhance the scalability of our platform, together with ongoing improvements in service provider productivity, we will be able to further improve our operating efficiency and benefit from greater operating leverage over time. Key Components of Results of Operations Segment information In view of the increased scale and business importance of our home rental services, with reported revenues exceeding the quantitative threshold for a reportable segment, effective from the first quarter of 2024, we split out the home rental services into a separate segment, apart from the emerging and other services segment. We have also aligned our internal financial and segment reporting to reflect this change. The amounts for prior periods have been recast to conform to the new reporting structure. 137 Table of Contents Net revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended December 31, ​ ​ 2023 ​ 2024 ​ 2025 ​ ​ ​ ​ RMB ​ ​ ​ % ​ ​ ​ RMB ​ ​ ​ % ​ ​ ​ RMB ​ ​ ​ US$ ​ ​ ​ % ​ ​ (in thousands, except for percentages) Net revenues: ​ ​ ​ ​ ​ ​ ​ Existing home transaction services 27,954,135 35.9 28,201,003 30.2 ​ 25,020,035 ​ 3,577,817 ​ 26.5 New home transaction services 30,575,778 39.3 33,653,403 36.0 ​ 30,597,319 ​ 4,375,358 ​ 32.3 Home renovation and furnishing ​ 10,850,497 ​ 14.0 ​ 14,768,947 ​ 15.8 ​ 15,426,141 ​ 2,205,909 ​ 16.3 Home rental services ​ 6,099,747 ​ 7.8 ​ 14,334,479 ​ 15.3 ​ 21,900,320 ​ 3,131,704 ​ 23.2 Emerging and other services 2,296,775 3.0 2,499,666 2.7 ​ 1,636,390 ​ 234,001 ​ 1.7 Total net revenues 77,776,932 100.0 93,457,498 100.0 ​ 94,580,205 ​ 13,524,789 ​ 100.0 ​ Existing home transaction services. We generate revenue (i) from our own Lianjia brand where we charge commissions for existing home sales and home rentals, and split of commissions from other brokerage firms that operate brokerage stores on Beike platform in collaboration with Lianjia agents to complete transactions, (ii) from brokerage firms which own and operate brokerage stores on our Beike platform where we receive platform service fees, and those under our franchise brands such as Deyou to which we charge an additional franchise fee, and (iii) by providing other value-added services including transaction closing services, field work assistance such as on-site verification, agent recruiting and training services. New home transaction services. We generate revenue from new home transaction services from sales commissions charged to real estate developers. Home renovation and furnishing services. We generate revenue by providing renovation and furnishing services to customers. Home rental services. We generate revenue from home rental services by providing rental property management, leasing agency services and operation services as well as other rental-related services, including monetization of platform traffic and online management services. Emerging and other services. We generate revenue from a variety of other housing related services, including financial services and other newly developed businesses. Cost of revenues Our cost of revenues consists primarily of compensation to our internal agents and sales professionals and split commissions to connected agents and other sales channels, cost of home renovation and furnishing, cost of home rental and cost related to Lianjia stores. Our compensation paid to our internal agents and other sales professionals is composed of fixed salaries and variable commissions based on the transactions they assist in closing; and we also pay commissions to connected agents and other sales channels for their services to assist us in completing new home and existing home transactions. We are acting as the principal agent for all new home transactions and a majority of existing home transactions. When connected agents and other sales channels assist us to complete these transactions, we will pay them a split of the total commissions we receive, which is recorded as commission – split in our cost of revenues. Cost of home renovation and furnishing mainly includes material costs related to home renovation and furnishing and compensation to renovation workers who are mostly contractors. Cost of home rental mainly includes property leasing costs paid to property owners according to corresponding lease contracts and direct compensation to sales professionals. Cost related to stores mainly includes rent, decoration, depreciation and utility bills for real estate brokerage stores under our Lianjia brand and signing-to-closing support facilities. 138 Table of Contents The following table sets forth the components of our cost of revenues by amounts and percentages of our total net revenues for the periods presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended December 31, ​ ​ ​ ​ 2023 ​ ​ ​ 2024 ​ ​ ​ 2025 ​ ​ ​ ​ RMB ​ ​ ​ % ​ ​ ​ RMB ​ ​ ​ % ​ ​ ​ RMB ​ ​ ​ US$ ​ ​ ​ % ​ ​ (in thousands, except for percentages) Cost of revenues: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commission — split ​ 20,419,577 ​ 26.3 ​ 22,766,957 ​ 24.4 ​ 20,873,405 ​ 2,984,857 ​ 22.1 Commission and compensation — internal ​ 17,015,927 ​ 21.9 ​ 18,903,786 ​ 20.2 ​ 17,656,184 ​ 2,524,801 ​ 18.6 Cost of home renovation and furnishing ​ 7,705,325 ​ 9.9 ​ 10,229,696 ​ 10.9 ​ 10,581,816 ​ 1,513,180 ​ 11.2 Cost of home rental services ​ 6,163,044 ​ 7.9 ​ 13,619,506 ​ 14.6 ​ 20,020,954 ​ 2,862,958 ​ 21.2 Cost related to stores ​ 2,872,093 ​ 3.7 ​ 2,854,988 ​ 3.1 ​ 2,851,831 ​ 407,806 ​ 3.0 Others ​ 1,882,952 ​ 2.4 ​ 2,138,510 ​ 2.3 ​ 2,383,938 ​ 340,898 ​ 2.5 Total cost of revenues ​ 56,058,918 ​ 72.1 ​ 70,513,443 ​ 75.4 ​ 74,368,128 ​ 10,634,500 ​ 78.6 ​ Operating Expenses Our operating expenses consist of sales and marketing expenses, general and administrative expenses, research and development expenses, and impairment of goodwill, intangible assets and other long-lived assets. The following table breaks down our total operating expenses by categories, both in absolute amount and as a percentage of total net revenues, for the periods presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended December 31, ​ ​ 2023 ​ 2024 ​ 2025 ​ ​ ​ ​ RMB ​ ​ ​ % ​ ​ ​ RMB ​ ​ ​ % ​ ​ ​ RMB ​ ​ ​ US$ ​ ​ ​ % ​ ​ (in thousands, except for percentages) Operating Expenses: ​ ​ ​ ​ ​ ​ ​ Sales and marketing expenses 6,654,178 ​ 8.6 ​ 7,783,341 ​ 8.3 ​ 7,328,909 ​ 1,048,020 ​ 7.8 General and administrative expenses 8,236,569 ​ 10.6 ​ 8,960,747 ​ 9.6 ​ 8,075,414 ​ 1,154,769 ​ 8.5 Research and development expenses 1,936,780 ​ 2.5 ​ 2,283,424 ​ 2.4 ​ 2,580,564 ​ 369,016 ​ 2.7 Impairment of goodwill, intangible assets and other long-lived assets 93,417 ​ 0.1 ​ 151,576 ​ 0.2 ​ 116,332 ​ 16,635 ​ 0.1 Total operating expenses 16,920,944 ​ 21.8 ​ 19,179,088 ​ 20.5 ​ 18,101,219 ​ 2,588,440 ​ 19.1 ​ Sales and marketing expenses. Our sales and marketing expenses mainly consist of (i) advertising and promotional expenses (ii) salaries, bonuses and benefits for our personnel engaged in sales and marketing activities, including personnel costs, rental expenses, and other expenses related to home renovation and furnishing (iii) depreciation and amortization expenses related to sales and marketing activities (iv) travel, reception and related expenses, and (v) share-based compensation expenses. General and administrative expenses. Our general and administrative expenses mainly consist of (i) salaries, bonuses and benefits for our personnel engaged in general corporate functions, (ii) rental and related expenses, (iii) general office expenses, (iv) recruitment and training expenses, (v) professional fees, (vi) travel, reception and related expenses, (vii) depreciation and amortization expenses related to general corporate activities, (viii) share-based compensation expenses, and (ix) provision for credit losses. Research and development expenses. Our research and development expenses mainly consist of (i) payroll and related expenses for the personnel engaged in research and development activities, (ii) depreciation and amortization of our technology infrastructure, and (iii) service fees related to research and development activities. 139 Table of Contents Impairment of goodwill, intangible assets and other long-lived assets. We performed goodwill impairment assessments for all our reporting units as of December 31, 2025, and weighed the qualitative relevant factors and quantitative assessment results in totality. RMB116.3 million goodwill impairment loss was recorded, including RMB31.8 million related to reporting units within the existing home transaction services segment and RMB84.5 million related to reporting units within the new home transaction services segment. 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 and other long-lived assets is based on the amounts by which the carrying amounts of the assets exceed the fair values of the assets. Contribution and Contribution Margin Our Chief Operating Decision Maker, or CODM, reviews segment contribution to evaluate performance and allocate resources, predominately in the budgeting, planning, and forecasting processes. We define contribution for each service line as the revenue less variable costs directly attributable to the reportable segment. For existing home and new home transaction services, variable costs including direct compensation to our internal agents and sales professionals, split commission to connected agents and other sales channels for such services. For home renovation and furnishing services, variable costs including material costs and compensation costs to renovation workers who are our employees or contractors. For home rental services, variable costs including property leasing costs paid to property owners according to corresponding lease contracts and direct compensation to sales professionals. The following table presents the calculation to arrive at contribution from net revenues, for each of the periods indicated: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended December 31, ​ ​ ​ ​ 2023 ​ ​ ​ 2024 ​ ​ ​ 2025 ​ ​ ​ ​ RMB ​ ​ ​ RMB ​ ​ ​ RMB ​ ​ ​ US$ ​ ​ (in thousands) Existing home transaction services ​ ​ ​ ​ ​ ​ ​ ​ Net revenues ​ 27,954,135 ​ 28,201,003 ​ 25,020,035 ​ 3,577,817 Less: Commission and compensation ​ (14,762,910) ​ (16,016,079) ​ (15,185,117) ​ (2,171,443) Contribution ​ 13,191,225 ​ 12,184,924 ​ 9,834,918 ​ 1,406,374 New home transaction services ​ ​ ​ ​ ​ ​ ​ ​ Net revenues ​ 30,575,778 ​ 33,653,403 ​ 30,597,319 ​ 4,375,358 Less: Commission and compensation ​ (22,455,253) ​ (25,304,481) ​ (22,950,571) ​ (3,281,888) Contribution ​ 8,120,525 ​ 8,348,922 ​ 7,646,748 ​ 1,093,470 Home renovation and furnishing ​ ​ ​ ​ ​ ​ ​ ​ Net revenues ​ 10,850,497 ​ 14,768,947 ​ 15,426,141 ​ 2,205,909 Less: Material costs, commission and compensation ​ (7,705,325) ​ (10,229,696) ​ (10,581,816) ​ (1,513,180) Contribution ​ 3,145,172 ​ 4,539,251 ​ 4,844,325 ​ 692,729 Home rental services ​ ​ ​ ​ ​ ​ ​ ​ Net revenues ​ 6,099,747 ​ 14,334,479 ​ 21,900,320 ​ 3,131,704 Less: Property leasing costs, commission and compensation ​ (6,163,044) ​ (13,619,506) ​ (20,020,954) ​ (2,862,958) (Deficit)/Contribution ​ (63,297) ​ 714,973 ​ 1,879,366 ​ 268,746 Emerging and other services ​ ​ ​ ​ ​ ​ ​ ​ Net revenues ​ 2,296,775 ​ 2,499,666 ​ 1,636,390 ​ 234,001 Less: Commission and compensation ​ (217,341) ​ (350,183) ​ (393,901) ​ (56,327) Contribution ​ 2,079,434 ​ 2,149,483 ​ 1,242,489 ​ 177,674 ​ 140 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended December 31, ​ ​ ​ ​ 2023 ​ ​ ​ 2024 ​ ​ ​ 2025 ​ ​ RMB ​ RMB ​ RMB ​ ​ ​ US$ ​ ​ (in thousands, except for percentages) Contribution (existing home transaction services) 13,191,225 ​ 12,184,924 ​ 9,834,918 ​ 1,406,374 ​ Contribution margin (existing home transaction services) 47.2 % 43.2 % 39.3 % 39.3 % Contribution (new home transaction services) 8,120,525 ​ 8,348,922 ​ 7,646,748 ​ 1,093,470 ​ Contribution margin (new home transaction services) 26.6 % 24.8 % 25.0 % 25.0 % Contribution (home renovation and furnishing) ​ 3,145,172 ​ 4,539,251 ​ 4,844,325 ​ 692,729 ​ Contribution margin (home renovation and furnishing) ​ 29.0 % 30.7 % 31.4 % 31.4 % (Deficit)/Contribution (home rental services) ​ (63,297) ​ 714,973 ​ 1,879,366 ​ 268,746 ​ Contribution margin (home rental services) ​ (1.0) % 5.0 % 8.6 % 8.6 % Contribution (emerging and other services) 2,079,434 ​ 2,149,483 ​ 1,242,489 ​ 177,674 ​ Contribution margin (emerging and other services) 90.5 % 86.0 % 75.9 % 75.9 % ​ Contribution margin demonstrates the margin that we generate after costs directly attributable to the respective revenue streams, including existing home transaction services, new home transaction services, home renovation and furnishing, home rental services, and emerging and other services. The costs and expenses related to the platform infrastructure building and enhancement, including cost related to our Lianjia stores and the development cost of our technological platform, which are not directly attributable to the respective revenue streams, are not deducted from revenue when calculating contribution. The contribution margin for existing home transaction services decreased from 47.2% in 2023 to 43.2% in 2024, primarily attributable to a higher fixed compensation costs for Lianjia agents as percentage of net revenues from existing home transaction services, mainly driven by the increased number of Lianjia agents and improved benefits for them. The contribution margin for existing home transaction services decreased from 43.2% in 2024 to 39.3% in 2025, primarily attributable to a higher fixed compensation costs for Lianjia agents as percentage of net revenues from existing home transaction services, mainly driven by the increase in weighted average number of Lianjia agents and improved benefits for them. The contribution for new home transaction services increased from RMB8.1 billion in 2023 to RMB8.3 billion in 2024, while the contribution margin decreased from 26.6% in 2023 to 24.8% in 2024, primarily attributable to a higher commission-split as percentage of net revenues from new home transaction services paid to connected agents and other channels. The contribution margin for new home transaction services was 25.0% in 2025, relatively stable compared with 24.8% in 2024. The contribution margin for home renovation and furnishing increased from 29.0% in 2023 to 30.7% in 2024, primarily attributable to refined operation management, optimized product packages and enhanced supply chain capabilities. The contribution margin for home renovation and furnishing increased from 30.7% in 2024 to 31.4% in 2025, primarily attributable to enhanced supply chain capabilities. The contribution margin for home rental services changed from negative 1.0% in 2023 to 5.0% in 2024, primarily attributable to enhanced operational efficiency and optimized product model, which optimized initial lease success and lease renewals rates, and reduced vacancy rates. The contribution margin for home rental business increased from 5.0% in 2024 to 8.6% in 2025, primarily attributable to an increasing proportion of the new product offering with a higher contribution margin under the Carefree Rent business, as well as enhanced operational efficiency. Leveraging our industry know-hows and close connection with platform participants, we have also tapped into adjacent market opportunities. These emerging and other services can efficiently utilize our infrastructure in place, and some of them require relatively less variable and direct costs to deliver. The contribution margin for our emerging and other services were 90.5% in 2023, 86.0% in 2024 and 75.9% in 2025. Taxation 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 us levied by the government of 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. 141 Table of Contents British Virgin Islands Our 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, China Hong Kong income tax rate is a two-tiered profits tax regime, under which 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 periods presented. Under Hong Kong tax law, our Hong Kong subsidiaries are exempted from Hong Kong income tax on their foreign-derived income. Hong Kong does not impose a withholding tax on dividends. Mainland China Generally, our PRC subsidiaries, consolidated variable interest entities and their subsidiaries, which are considered PRC resident enterprises under PRC tax law, are subject to enterprise income tax on their worldwide taxable income as determined under PRC tax laws and accounting standards at a rate of 25%. A “high and new technology enterprise,” which is reassessed every three years, is entitled to favorable income tax rate of 15%. Certain of our PRC subsidiaries are currently enjoying favorable tax rates as high and new technology enterprises. We are also subject to value added tax at a rate of 6% on most of the services we provide, less any deductible value-added tax we have already paid or borne. We are also subject to surcharges on value-added tax payments in accordance with PRC law. Dividends paid by our wholly foreign-owned subsidiaries in China to our intermediary holding companies in Hong Kong will be subject to a withholding tax rate of 10%, unless the Hong Kong entity satisfies all the requirements under the Arrangement between the PRC and the Hong Kong Special Administrative Region on the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income and Capital and receives approval from the tax authority. If a Hong Kong subsidiary satisfies all the requirements under the tax arrangement and receives approval from the tax authority, then the dividends paid to the Hong Kong subsidiary would be subject to withholding tax at the standard rate of 5%. See “Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China—We may rely on dividends and other distributions on equity paid by our PRC subsidiaries to fund any cash and financing requirements we may have, and any limitation on the ability of our PRC subsidiaries to make payments to us could have a material and adverse effect on our ability to conduct our business.” If our holding company in the Cayman Islands or any of our subsidiaries outside of China were deemed to be a “resident enterprise” under the PRC Enterprise Income Tax Law, it would be subject to enterprise income tax on its worldwide income at a rate of 25%. See “Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China—If we are classified as a PRC resident enterprise for PRC enterprise income tax purposes, such classification could result in unfavorable tax consequences to us and our non-PRC shareholders and ADS holders.” 142 Table of Contents Results of Operations The following table sets forth a summary of our consolidated results of operations for the periods presented. This information should be read together with our consolidated financial statements and related notes included elsewhere in this annual report. The results of operations in any particular period are not necessarily indicative of our future trends. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended December 31, ​ ​ 2023 ​ 2024 ​ 2025 ​ ​ ​ ​ RMB ​ ​ ​ RMB ​ ​ ​ RMB ​ ​ ​ US$ ​ ​ (in thousands, except for share and per share data) Net revenues: ​ ​ ​ ​ Existing home transaction services 27,954,135 ​ 28,201,003 ​ 25,020,035 ​ 3,577,817 New home transaction services 30,575,778 ​ 33,653,403 ​ 30,597,319 ​ 4,375,358 Home renovation and furnishing ​ 10,850,497 ​ 14,768,947 ​ 15,426,141 ​ 2,205,909 Home rental services ​ 6,099,747 ​ 14,334,479 ​ 21,900,320 ​ 3,131,704 Emerging and other services 2,296,775 ​ 2,499,666 ​ 1,636,390 ​ 234,001 Total net revenues 77,776,932 ​ 93,457,498 ​ 94,580,205 ​ 13,524,789 Cost of revenues: ​ ​ ​ ​ ​ ​ ​ Commission — split (20,419,577) ​ (22,766,957) ​ (20,873,405) ​ (2,984,857) Commission and compensation — internal (17,015,927) ​ (18,903,786) ​ (17,656,184) ​ (2,524,801) Cost of home renovation and furnishing ​ (7,705,325) ​ (10,229,696) ​ (10,581,816) ​ (1,513,180) Cost of home rental services ​ (6,163,044) ​ (13,619,506) ​ (20,020,954) ​ (2,862,958) Cost related to stores (2,872,093) ​ (2,854,988) ​ (2,851,831) ​ (407,806) Others (1,882,952) ​ (2,138,510) ​ (2,383,938) ​ (340,898) Total cost of revenues(1) ​ (56,058,918) ​ (70,513,443) ​ (74,368,128) ​ (10,634,500) Gross profit 21,718,014 ​ 22,944,055 ​ 20,212,077 ​ 2,890,289 Sales and marketing expenses(1) (6,654,178) ​ (7,783,341) ​ (7,328,909) ​ (1,048,020) General and administrative expenses(1) (8,236,569) ​ (8,960,747) ​ (8,075,414) ​ (1,154,769) Research and development expenses(1) (1,936,780) ​ (2,283,424) ​ (2,580,564) ​ (369,016) Others 2,993,508 ​ 2,953,526 ​ 2,449,913 ​ 350,333 Income before income tax expense 7,883,995 ​ 6,870,069 ​ 4,677,103 ​ 668,817 Income tax expense (1,994,391) ​ (2,791,889) ​ (1,686,089) ​ (241,108) Net income 5,889,604 ​ 4,078,180 ​ 2,991,014 ​ 427,709 Weighted average number of ordinary shares used in computing net income per share, basic and diluted ​ ​ ​ ​ ​ ​ ​ — Basic 3,521,379,938 ​ 3,409,772,592 ​ 3,326,149,994 ​ 3,326,149,994 — Diluted 3,611,653,020 ​ 3,537,408,029 ​ 3,472,076,149 ​ 3,472,076,149 Net income per share attributable to ordinary shareholders ​ ​ ​ ​ ​ ​ ​ — Basic 1.67 ​ 1.19 ​ 0.90 ​ 0.13 — Diluted 1.63 ​ 1.15 ​ 0.86 ​ 0.12 Note: (1) Share-based compensation expenses were allocated as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended December 31, ​ ​ ​ ​ 2023 ​ ​ ​ 2024 ​ ​ ​ 2025 ​ ​ RMB ​ RMB ​ RMB ​ ​ ​ US$ ​ ​ ​ ​ (in thousands) Cost of revenues 502,523 ​ 521,293 ​ 446,120 ​ 63,794 Sales and marketing expenses 180,465 ​ 197,320 ​ 181,877 ​ 26,008 General and administrative expenses 2,345,895 ​ 1,821,817 ​ 1,111,415 ​ 158,931 Research and development expenses 186,666 ​ 185,645 ​ 165,512 ​ 23,668 Total 3,215,549 ​ 2,726,075 ​ 1,904,924 ​ 272,401 ​ 143 Table of Contents Year ended December 31, 2025 Compared to Year ended December 31, 2024 Net revenues Our net revenues increased by 1.2% to RMB94.6 billion (US$13.5 billion) in 2025 from RMB93.5 billion in 2024, primarily attributable to the increase of net revenues from home rental services and home renovation and furnishing, which was partially offset by the decrease of net revenues from new home and existing home transaction services. Total GTV decreased by 5.0% to RMB3,183.3 billion (US$455.2 billion) in 2025 from RMB3,349.4 billion in 2024, amid the overall pressure in the housing-related industry. Existing home transaction services. Our net revenues from existing home transaction services decreased by 11.3% to RMB25.0 billion (US$3.6 billion) in 2025 from RMB28.2 billion in 2024. GTV of existing home transactions decreased by 4.2% to RMB2,151.5 billion (US$307.7 billion) in 2025 from RMB2,246.5 billion in 2024. The steeper decline in net revenues relative to GTV in existing home transaction services was primarily attributable to a higher contribution from GTV of existing home transaction services served by connected agents on our platform, for which revenue is recorded on a net basis from platform service, franchise service and other value-added services, while for GTV served by Lianjia brand, the revenue is recorded on a gross commission revenue basis. Commission revenue decreased by 13.5% to RMB20.0 billion (US$2.9 billion) in 2025, from RMB23.1 billion in 2024, primarily due to the decreased GTV of existing home transactions served by Lianjia stores of 12.7% to RMB802.1 billion (US$114.7 billion) in 2025 from RMB918.5 billion in 2024. Additionally, revenues derived from platform service, franchise service and other value-added services, which are mostly charged to connected stores and agents on our platform, were RMB5.0 billion (US$0.7 billion) in 2025, relatively stable compared with RMB5.1 billion in 2024, while GTV of existing home transactions served by connected agents on our platform increased by 1.6% to RMB1,349.4 billion (US$193.0 billion) in 2025 from RMB1,328.0 billion in 2024. New home transaction services. Our net revenues from new home transaction services decreased by 9.1% to RMB30.6 billion (US$4.4 billion) in 2025 from RMB33.7 billion in 2024, primarily due to the decrease of GTV of new home transactions of 8.2% to RMB890.9 billion (US$127.4 billion) in 2025 from RMB970.0 billion in 2024. Of these, the GTV of new home transactions facilitated on Beike platform through connected agents, dedicated sales team with the expertise in new home transaction services and other sales channels decreased by 7.0% to RMB729.2 billion (US$104.3 billion) in 2025 from RMB784.4 billion in 2024, and the GTV of new home transactions served by Lianjia brand decreased by 12.9% to RMB161.6 billion (US$23.1 billion) in 2025 from RMB185.6 billion in 2024. Home renovation and furnishing. Our net revenues from home renovation and furnishing increased by 4.4% to RMB15.4 billion (US$2.2 billion) in 2025 from RMB14.8 billion in 2024, primarily attributable to the increase of net revenues from furniture and home furnishing sales. Home rental services. Our net revenues from home rental services increased by 52.8% to RMB21.9 billion (US$3.1 billion) in 2025 from RMB14.3 billion in 2024, primarily attributable to the increase in the number of rental units under the Carefree Rent model, partially offset by a shift in revenue recognition mix resulting from an increasing proportion of the new product offering within the Carefree Rent. Under the new model, the homeowners retain control over and beneficial interest in the properties, while we provide leasing agency services and lease term management services to both homeowners and tenants. Accordingly, under the new model, revenue is recognized based on net service fees derived from two sources: (1) commissions earned for facilitating the signing of lease agreements between homeowners and tenants; and (2) fees for lease term management services rendered throughout the lease period. Emerging and other services. Our net revenues from emerging and other services decreased by 34.5% to RMB1.6 billion (US$0.2 billion) in 2025 from RMB2.5 billion in 2024, primarily attributable to the decrease of revenues from ancillary services. Cost of revenues Our cost of revenues increased by 5.5% to RMB74.4 billion (US$10.6 billion) in 2025 from RMB70.5 billion in 2024. ● Commission — split. Our cost of revenues for commissions to connected agents and other sales channels decreased by 8.3% to RMB20.9 billion (US$3.0 billion) in 2025 from RMB22.8 billion in 2024, primarily due to the decrease in GTV of new home transactions facilitated through connected agents and other sales channels. 144 Table of Contents ● Commission and compensation — internal. Our cost of revenues for internal commission and compensation decreased by 6.6% to RMB17.7 billion (US$2.5 billion) in 2025 from RMB18.9 billion in 2024, primarily due to the decrease in commission of home transaction services for Lianjia agents, resulting from the decreased GTV of home transactions they served by. ● Cost of home renovation and furnishing. Our cost of revenues for home renovation and furnishing increased by 3.4% to RMB10.6 billion (US$1.5 billion) in 2025 from RMB10.2 billion in 2024, which was in line with the growth of net revenues from home renovation and furnishing. ● Cost of home rental services. Our cost of revenues for home rental services increased by 47.0% to RMB20.0 billion (US$2.9 billion) in 2025 from RMB13.6 billion in 2024, primarily attributable to the growth of net revenues from home rental services, partially offset by an improved contribution margin resulting from an increasing proportion of the new product offering with a higher contribution margin under the Carefree Rent business, as well as enhanced operational efficiency. ● Cost related to stores. Our cost related to stores was RMB2.9 billion (US$0.4 billion) in 2025, relatively flat compared with RMB2.9 billion in 2024. ● Other costs. Our other costs increased by 11.5% to RMB2.4 billion (US$0.3 billion) in 2025 from RMB2.1 billion in 2024, primarily attributable to the increase in the direct technical infrastructure costs such as cloud storage costs. Please see “—Contribution Margin” for the analysis of our segment profitability. Operating expenses Sales and marketing expenses. Our sales and marketing expenses decreased by 5.8% to RMB7.3 billion (US$1.0 billion) in 2025 from RMB7.8 billion in 2024, primarily due to our cost optimization initiatives, including lower personnel costs as well as reduced advertising and promotion expenses. General and administrative expenses. Our general and administrative expenses decreased by 9.9% to RMB8.1 billion (US$1.2 billion) in 2025 from RMB9.0 billion in 2024, primarily due to the decrease in share-based compensation expenses and provision for credit losses. Research and development expenses. Our research and development expenses increased by 13.0% to RMB2.6 billion (US$0.4 billion) in 2025 from RMB2.3 billion in 2024, primarily due to the increased personnel costs. Impairment of goodwill, intangible assets and other long-lived assets. We recorded impairment of goodwill of RMB116.3 million (US$16.6 million) in 2025, compared to RMB98.2 million in 2024, primarily attributable to the impairment of goodwill triggered by the market fluctuation and its impact on our operations. No impairment of intangible assets and other long-lived assets has been recorded in 2025, compared to RMB53.4 million in 2024. Income tax expense We recorded an income tax expense of RMB1,686.1 million (US$241.1 million) in 2025, compared to RMB2,791.9 million in 2024. Net income As a result of the foregoing, we recorded a net income of RMB2,991.0 million (US$427.7 million) in 2025, compared to RMB4,078.2 million in 2024. Year ended December 31, 2024 Compared to Year ended December 31, 2023 Net revenues Our net revenues increased by 20.2% to RMB93.5 billion in 2024 from RMB77.8 billion in 2023, primarily attributable to the increase of net revenues from new home transaction services and the expansion of home renovation and furnishing and home rental business. Total GTV increased by 6.6% to RMB3,349.4 billion in 2024 from RMB3,142.9 billion in 2023, primarily attributable to our proactive growth strategy and enhanced capabilities in market coverage. 145 Table of Contents Existing home transaction services. Our net revenues from existing home transaction services were RMB28.2 billion in 2024, relatively flat compared with RMB28.0 billion in 2023. GTV of existing home transactions increased by 10.8% to RMB2,246.5 billion in 2024 from RMB2,028.0 billion in 2023. Commission revenue increased by 1.0% to RMB23.1 billion in 2024, from RMB22.9 billion in 2023, primarily because the GTV of existing home transactions served by Lianjia stores increased by 8.4% to RMB918.5 billion in 2024 from RMB847.6 billion in 2023, mainly offset by a lower commission rate of existing home transaction services charged by Lianjia stores in Beijing. Additionally, revenue derived from platform service, franchise service and other value-added services, which are mostly charged to connected stores and agents on our platform, were RMB5.1 billion in 2024, relatively flat compared with RMB5.1 billion in 2023, while the GTV of existing home transactions served by connected agents on our platform increased by 12.5% to RMB1,328.0 billion in 2024 from RMB1,180.4 billion in 2023. The increase was mainly offset by the decrease in revenues from certain value-added services which were not directly driven by GTV of existing home transactions served by connected agents. New home transaction services. Our net revenues from new home transaction services increased by 10.1% to RMB33.7 billion in 2024 from RMB30.6 billion in 2023, primarily due to the improved monetization capability, which was partially offset by the decrease of GTV of new home transactions of 3.3% to RMB970.0 billion in 2024 from RMB1,003.0 billion in 2023. Among that, the GTV of new home transactions facilitated on Beike platform through connected agents, dedicated sales team with the expertise on new home transaction services and other sales channels decreased by 3.1% to RMB784.4 billion in 2024 from RMB809.9 billion in 2023, and the GTV of new home transactions served by Lianjia brand decreased by 3.9% to RMB185.6 billion in 2024 from RMB193.2 billion in 2023. Home renovation and furnishing. Our net revenues from home renovation and furnishing increased by 36.1% to RMB14.8 billion in 2024 from RMB10.9 billion in 2023, primarily attributable to (i) the increase of orders driven by the synergetic effects from customer acquisition and conversion between home transaction services and home renovation and furnishing business, (ii) a larger contribution from furniture and home furnishing sales in categories such as customized furniture, soft furnishings, and electrical appliances, and (iii) the shortened lead time driven by enhanced delivery capabilities. Home rental services. Our net revenues from home rental services increased by 135.0% to RMB14.3 billion in 2024 from RMB6.1 billion in 2023, primarily attributable to the increase of the number of rental units under the Carefree Rent model. Emerging and other services. Our net revenues from emerging and other services increased by 8.8% to RMB2.5 billion in 2024 from RMB2.3 billion in 2023, primarily attributable to the increase of net revenues from financial services. Cost of revenues Our cost of revenues increased by 25.8% to RMB70.5 billion in 2024 from RMB56.1 billion in 2023. ● Commission — split. Our cost of revenues for commissions to connected agents and other sales channels increased by 11.5% to RMB22.8 billion in 2024 from RMB20.4 billion in 2023, primarily due to the increase in net revenues from new home transaction services derived from transactions facilitated through connected agents and other sales channels. ● Commission and compensation — internal. Our cost of revenues for internal commission and compensation increased by 11.1% to RMB18.9 billion in 2024 from RMB17.0 billion in 2023, primarily due to an increase in the net revenues from new home transactions derived from transactions facilitated through Lianjia agents and the increase in fixed compensation costs mainly driven by the increased number of Lianjia agents and improved benefits for them. ● Cost of home renovation and furnishing. Our cost of home renovation and furnishing increased by 32.8% to RMB10.2 billion in 2024 from RMB7.7 billion in 2023, which was in line with the growth of net revenues from home renovation and furnishing. ● Cost of home rental services. Our cost of home rental services increased by 121.0% to RMB13.6 billion in 2024 from RMB6.2 billion in 2023, primarily attributable to the growth of net revenues from home rental services. ● Cost related to stores. Our cost related to stores was RMB2.9 billion in 2024, relatively flat compared with RMB2.9 billion in 2023. 146 Table of Contents ● Other costs. Our other costs increased by 13.6% to RMB2.1 billion in 2024 from RMB1.9 billion in 2023, mainly due to the increased tax and surcharges in line with the increased net revenues and an increase in provision and funding costs of financial services. Please see “—Contribution Margin” for the analysis of our segment profitability. Operating expenses Sales and marketing expenses. Our sales and marketing expenses increased by 17.0% to RMB7.8 billion in 2024 from RMB6.7 billion in 2023, mainly due to the increase in sales and marketing expenses for home renovation and furnishing business. General and administrative expenses. Our general and administrative expenses increased by 8.8% to RMB9.0 billion in 2024 from RMB8.2 billion in 2023, mainly due to the increase in personnel costs. Research and development expenses. Our research and development expenses increased by 17.9% to RMB2.3 billion in 2024 from RMB1.9 billion in 2023, primarily due to the increased headcount of research and development personnel and the increased technical service costs. Impairment of goodwill, intangible assets and other long-lived assets. We recorded impairment of goodwill, intangible assets and other long-lived assets of RMB151.6 million in 2024, compared to RMB93.4 million in 2023, primarily attributable to the impairment of goodwill triggered by the market fluctuation and its impact on our operations. Income tax expense We recorded an income tax expense of RMB2,791.9 million in 2024, compared to RMB1,994.4 million in 2023. Net income As a result of the foregoing, we recorded a net income of RMB4,078.2 million in 2024, compared to RMB5,889.6 million in 2023. Discussion of Key Balance Sheet Items Cash, cash equivalents, restricted cash, and short-term investments Cash, cash equivalents, restricted cash, and short-term investments constitute our most liquid assets. Short-term investments include bank time deposits and investments in wealth management products issued by financial institutions. These products normally offer returns higher than bank deposits, maintain relatively low risk, and provide sufficient liquidity as they are redeemable upon short notice. We therefore consider such wealth management products part of our cash management program. The total amount increased from RMB60.1 billion as of December 31, 2023 to RMB61.6 billion as of December 31, 2024, which was mainly attributable to the cash generated from operating activities in 2024, partially offset by the cash used in investing activities. The total amount decreased from RMB61.6 billion as of December 31, 2024 to RMB55.5 billion (US$7.9 billion) as of December 31, 2025, mainly used in financing activities in 2025, partially offset by the cash provided by investing activities. Accounts receivable, net of allowance for credit losses A significant portion of accounts receivable was due from real estate developers for our new home transaction services. Our accounts receivable, net of allowance for credit losses, increased from RMB3.2 billion as of December 31, 2023 to RMB5.5 billion as of December 31, 2024, primarily due to the growth of net revenues from new home transaction services. Our accounts receivable and contract assets, net of allowance for credit losses decreased from RMB5.5 billion as of December 31, 2024 to RMB3.9 billion (US$0.6 billion) as of December 31, 2025, primarily due to the decline of net revenues from new home transaction services. 147 Table of Contents We serve real estate developers in our new home transaction services and grant them credit terms relatively longer compared to individual and small brokerage firm clients in accordance with the market practice. As such, we may face risks related to the collection of our accounts receivable from real estate developers, especially during times when tightened regulatory measures negatively affect the operations and liquidity conditions of these real estate developers. See “Item 3. Key Information—D. Risk Factors—Risks Related to Our Business and Industry—Our business is subject to government regulations and policies guiding China’s economy in general and, specifically, on existing and new home sales and home rentals” and “Item 3. Key Information—D. Risk Factors—Risks Related to Our Business and Industry—We face risk in collecting our accounts receivable and deposits from real estate developers” for more details. In light of the liquidity concerns faced by certain real estate developers started from 2021, we have been implementing various prudent measures such as the “commission in advance” model to ensure effective risk control and timely collection of accounts receivable. Our collection of accounts receivable for new home transaction services amounted to RMB33.5 billion in 2023, RMB33.4 billion in 2024 and RMB34.6 billion (US$4.9 billion) in 2025, compared to the net revenue from new home transaction services of RMB30.6 billion in 2023, RMB33.7 billion in 2024 and RMB30.6 billion (US$4.4 billion) in 2025. In addition, we maintained our accounts receivable turnover days for new home transaction services at a relatively low level at 56 days in 2025, compared with 52 days in 2024 and 55 days in 2023. The accounts receivable turnover days for existing home transaction services, where our clients are individual housing customers and brokerage firms on our platform, were 6 days in 2023, 7 days in 2024 and 7 days in 2025. We plan to continue to prudently manage our accounts receivable, in particular with respect to new home transaction services. Accounts receivable turnover days for a given period are equal to average balances of accounts receivable at the beginning and the end of the period divided by total net revenues during the period and multiplied by the number of days during the period. Intangible assets, net Our intangible assets net of accumulated amortization and impairment amounted to RMB1,067 million, RMB858 million and RMB723 million (US$103 million) as of December 31, 2023, 2024 and 2025, respectively. The decrease in 2024 was primarily due to the expiration of the business cooperation agreement. The decrease in 2025 was primarily due to the amortization of the intangible assets. Long-term investments, net Our long-term investments amounted to RMB23.6 billion, RMB23.8 billion and RMB20.1 billion (US$2.9 billion) as of December 31, 2023, 2024 and 2025, respectively. The increase in 2024 was mainly due to an increase in wealth management products. The decrease in 2025 was mainly due to a decrease in long-term time deposits and available-for-sale debt investments, which was partially offset by increase in wealth management products. Goodwill Our goodwill was RMB4,857 million, RMB4,777 million and RMB4,660 million (US$666 million) as of December 31, 2023, 2024 and 2025, respectively. The decrease in 2024 was primarily due to the RMB98.2 million impairment of the goodwill related to reporting units within the existing home transaction services segment and new home transaction services segment in certain cities as a result of changes in local market conditions. The decrease in 2025 was primarily due to the RMB116.3 million (US$16.6 million) impairment of the goodwill related to reporting units within the existing home transaction services segment and new home transaction services segment in certain cities as a result of changes in local market conditions. 148 Table of Contents Prepayments, receivables and other assets The following table set forth the breakdown of this account as of the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, ​ ​ 2024 ​ 2025 ​ ​ ​ ​ RMB ​ ​ ​ RMB ​ ​ ​ US$ ​ ​ (in thousands) Current: ​ ​ ​ Prepaid rental and other deposits ​ 1,552,279 ​ 1,154,495 ​ 165,091 Advances to suppliers 692,542 ​ 448,522 ​ 64,138 VAT-input deductible ​ 637,686 ​ 745,485 ​ 106,603 Capitalized costs of obtaining contracts and prepaid initial direct costs(1) 551,461 ​ 511,450 ​ 73,136 Deposits paid to real estate developers(2) 196,241 ​ 178,249 ​ 25,489 Funds advanced to potential investees(3) 153,577 ​ — ​ — Deposit paid for acquisition of land used for properties development(4) 122,430 ​ — ​ — Prepaid income tax 64,163 ​ 146,646 ​ 20,970 Staff advances 59,762 ​ 48,126 ​ 6,882 Receivable related to employees’ exercise of share-based awards 44,521 ​ 35,137 ​ 5,025 Interests receivable ​ 15,263 ​ 7,340 ​ 1,050 Receivables from escrow account ​ 9,992 ​ 23,030 ​ 3,293 Others 542,907 ​ 427,648 ​ 61,152 Total 4,642,824 ​ 3,726,128 ​ 532,829 Non-current: ​ ​ ​ ​ ​ Deferred tax asset 1,005,127 ​ 1,257,595 ​ 179,834 VAT-input deductible ​ 194,818 ​ 357,511 ​ 51,124 Others 22,332 ​ 147,996 ​ 21,163 Total 1,222,277 ​ 1,763,102 ​ 252,121 Notes: (1) For the years ended December 31, 2024 and 2025, RMB876.2 million and RMB1,403.4 million (US$200.7 million) are amortized respectively. (2) Deposits paid to real estate developers refer to the earnest deposits we pay to developers for new home transaction service contracts, and will be collected back after we meet our service commitment. We implement stringent selection process for the real estate projects for which we provide marketing services and will only agree to make earnest deposits for those we are confident in meeting our sales commitment. (3) Funds advanced to potential investees represent funds paid to potential Beihaojia business investees before obtaining the equity interests. (4) Deposit paid for acquisition of land used for properties development represents the deposit paid for acquisition of the residential land parcel in Shanghai under the Beihaojia business. Accounts payable Our accounts payable increased from RMB6,329 million as of December 31, 2023 to RMB9,493 million as of December 31, 2024 which was in line with the revenues from new home transaction services and home renovation and furnishing. Our accounts payable decreased from RMB9,493 million as of December 31, 2024 to RMB6,052 million (US$865 million) as of December 31, 2025, which was in line with the revenues from new home transaction services. ​ 149 Table of Contents Short-term borrowings As of December 31, 2023, 2024 and 2025, our short-term borrowings were RMB290 million, RMB288 million and RMB208 million (US$30 million), respectively. The total balance of short-term loans as of December 31, 2023 mainly included two bank loans, starting from September and December 2023, with fixed loan interest rates of 3.35% and 3.30%, respectively. The total balance of short-term loans as of December 31, 2024 mainly included two bank loans in January 2024 with fixed loan interest rates of 3.00%, as well as two bank loans in May and June 2024 with fixed loan interest rates of 2.83%. The total balance of short-term loans as of December 31, 2025 mainly includes one bank loan in May 2025 with interest at one-year LPR (Loan Prime Rate) minus 89 basis points, as well as two bank loans in January and May 2025 with fixed loan interest rates of 2.48% and 2.38%, respectively. B. Liquidity and Capital Resources The following table sets forth a summary of our cash flows for the periods presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended December 31, ​ ​ 2023 ​ 2024 ​ 2025 ​ ​ ​ ​ RMB ​ ​ ​ RMB ​ ​ ​ RMB ​ ​ ​ US$ ​ ​(in thousands) Selected Consolidated Cash Flow Data ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by (used in) operating activities 11,414,244 ​ 9,447,137 ​ (376,170) ​ (53,794) Net cash provided by (used in) investing activities (3,977,440) ​ (9,378,025) ​ 5,894,327 ​ 842,878 Net cash used in financing activities (7,218,210) ​ (5,794,635) ​ (9,793,199) ​ (1,400,409) Effect of exchange rate change on cash, cash equivalents and restricted cash 44,608 ​ 169,476 ​ (82,585) ​ (11,807) Net increase (decrease) in cash, cash equivalents and restricted cash 263,202 ​ (5,556,047) ​ (4,357,627) ​ (623,132) Cash, cash equivalents and restricted cash at the beginning of the year 25,594,259 ​ 25,857,461 ​ 20,301,414 ​ 2,903,063 Cash, cash equivalents and restricted cash at the end of the year 25,857,461 ​ 20,301,414 ​ 15,943,787 ​ 2,279,931 ​ To date, we have financed our operating and investing activities through cash flows from operations and cash provided by historical equity and debt financing activities. As of December 31, 2023, 2024 and 2025, our cash, cash equivalents, restricted cash and short-term investments were RMB60.1 billion, RMB61.6 billion and RMB55.5 billion (US$7.9 billion), respectively. Our cash and cash equivalents primarily consist of cash on hand, demand deposits and highly liquid investments placed with banks or other financial institutions with original maturities of less than three months. Our restricted cash are primarily pledged for bank borrowings, and escrow payments collected from the property buyers on behalf of and payable to the property sellers. We believe that our cash balance and expected net cash inflows will be sufficient to meet our current and anticipated working capital requirements and capital expenditures for an extended period of time. We may, however, need additional cash resources in the future if we experience changes in business conditions or other developments. We may also need additional cash resources in the future if we identify and wish to pursue opportunities for investment, acquisition, capital expenditure or similar actions. Although we consolidate the results of the VIEs and their subsidiaries, we only have access to the assets or earnings of the VIEs and their subsidiaries through our contractual arrangements with the VIEs and their shareholders. See “Item 4. Information on the Company— C. Organizational Structure—Contractual Arrangements with the VIEs and Their Shareholders.” For restrictions and limitations on liquidity and capital resources as a result of our corporate structure, see “—Holding Company Structure.” Substantially all of our revenues have been, and we expect they are likely to continue to be, denominated in Renminbi. Under the existing PRC foreign exchange regulations, payments of current account items, including profit distributions, interest payments and trade and service-related foreign exchange transactions, can be made in foreign currencies without prior SAFE approval as long as certain routine procedural requirements are fulfilled. Therefore, our PRC subsidiaries are allowed to pay dividends in foreign currencies to us without prior SAFE approval by following certain routine procedural requirements. However, current PRC regulations permit our PRC subsidiaries to pay dividends to us only out of their accumulated profits, if any, determined in accordance with Chinese accounting standards and regulations. Our PRC subsidiaries are required to set aside at least 10% of its after-tax profits after making up previous years’ accumulated losses each year, if any, to fund certain reserve funds until the total amount set aside reaches 50% of its registered capital. These reserves are not distributable as cash dividends. Historically, our PRC subsidiaries have not paid dividends to us, and they will not be able to pay dividends until they generate accumulated profits. Furthermore, capital account transactions, which include foreign direct investment and loans, must be approved by and/or registered with SAFE, its local branches and certain local banks. 150 Table of Contents As a Cayman Islands exempted company and offshore holding company, we are permitted under PRC laws and regulations to provide funding to our PRC subsidiaries only through loans or capital contributions, subject to the approval or registration of government authorities and limits on the amount of capital contributions and loans. This may delay us from using the proceeds from our initial public offering in July 2020 and our ADS offering in November 2020 to make loans or capital contributions to our PRC subsidiaries. See “Item 3. Key Information—D. Risk Factors—Risks Related to Doing Business in China—PRC regulation of loans to and direct investment in PRC entities by offshore holding companies may delay us from using the proceeds of our offshore offerings to make loans or additional capital contributions to our PRC subsidiaries and to make loans to the VIEs, which could materially and adversely affect our liquidity and our ability to fund and expand our business.” Operating activities Net cash used in operating activities in 2025 was RMB376.2 million (US$53.8 million). The difference between net cash used in operating activities and net income of RMB2,991 million (US$428 million) in 2025 was the result of adding back RMB3,114 million (US$445 million) for adjustments of non-cash items, adding back RMB9 million (US$1 million) for dividend received from equity method investments and RMB210 million (US$30 million) of investment and interest income received from wealth management products and time deposits, as well as removing RMB6,700 million (US$958 million) used in working capital. The adjustment of non-cash items primarily consisted of RMB1,905 million (US$272 million) in share-based compensation expenses, RMB934 million (US$134 million) in depreciation expenses, and RMB138 million (US$20 million) in amortization of intangible assets. The additional cash used in working capital was the result of: (i) a RMB3,344 million (US$478 million) decrease in accounts payable, (ii) a RMB1,910 million (US$273 million) decrease in employee compensation and welfare payable, (iii) a RMB1,006 million (US$144 million) decrease in prepayments, receivables and other assets, (iv) a RMB4,729 million (US$676 million) decrease in lease liabilities, and (v) a RMB1,251 million (US$179 million) decrease in inventories, partially offset by a RMB4,213 million (US$602 million) increase in right-of-use assets and a RMB1,483 million (US$212 million) increase in accounts receivable and contract assets. Net cash generated from operating activities in 2024 was RMB9.4 billion. The difference between net cash generated from operating activities and net income of RMB4,078 million in 2024 was the result of adding back RMB3,681 million for adjustments of non-cash items, adding back RMB16 million for dividend received from equity method investments and removing RMB253 million of investment and interest income, which are by nature investing activities, and adding RMB1,925 million released from working capital. The adjustment of non-cash items primarily consisted of RMB2,726 million in share-based compensation expenses, RMB744 million in depreciation expenses, RMB269 million in amortization of intangible assets, and RMB313 million in fair value changes in investments. The additional cash released from working capital was the result of a RMB4,674 million increase in lease liabilities, a RMB2,457 million increase in accounts payable, a RMB1,387 million increase in contract liabilities and deferred revenue, and a RMB1,093 million increase in accrued expenses and other current liabilities, partially offset by a RMB5,599 million increase in right-of-use assets, a RMB2,410 million increase in accounts receivable and contract assets, and a RMB270 million increase in prepayments, receivables and other assets. Net cash generated from operating activities in 2023 was RMB11.4 billion. The difference between net cash generated from operating activities and net income of RMB5,890 million in 2023 was the result of adding back RMB4,848 million for adjustments of non-cash items, adding back RMB15 million for dividend received from equity method investments and removing RMB1,413 million of investment and interest income, which are by nature investing activities, and adding RMB2,075 million released from working capital. The adjustment of non-cash items primarily consisted of RMB3,216 million in share-based compensation expenses, RMB775 million in depreciation expenses, RMB29 million in impairment loss for equity investments accounted for using measurement alternative, RMB627 million in amortization of intangible assets, and RMB78 million in fair value changes in investments. 151 Table of Contents The additional cash released from working capital was the result of a RMB835 million decrease in accounts receivable and contract assets, a RMB6,123 million increase in lease liabilities, a RMB1,405 million increase in contract liabilities, and a RMB1,548 million increase in accrued expenses and other current liabilities, partially offset by a RMB6,334 million increase in right-of-use assets, a RMB883 million increase in prepayments, receivables and other assets, and a RMB1,220 million decrease in employee compensation and welfare payable. Investing activities Net cash provided by investing activities in 2025 was RMB5.9 billion (US$0.8 billion), consisting primarily of (i) RMB20.9 billion (US$3.0 billion) of maturities of time deposits and held-to-maturity debt investments, offset by RMB8.9 billion (US$1.3 billion) used to purchase time deposits and held-to-maturity debt investments, (ii) RMB83.0 billion (US$11.9 billion) of financing receivables principal collected, partially offset by RMB81.6 billion (US$11.7 billion) of financing receivables originated, (iii) RMB27.3 billion (US$3.9 billion) maturities of other short-term investments, offset by RMB27.1 billion (US$3.9 billion) used to purchase other short-term investments, (iv) RMB1.3 billion (US$0.2 billion) of repayments of loans from related parties and others, and (v) partially offset by RMB6.5 billion (US$0.9 billion) used to purchases other long-term investments. Net cash used in investing activities in 2024 was RMB9.4 billion, consisting primarily of (i) RMB58.1 billion (US$8.0 billion) of financing receivables originated, offset by RMB56.6 billion of financing receivables principal collected, (ii) RMB33.3 billion of used to purchase other short-term investments, offset by RMB42.6 billion maturities of other short-term investments, and (iii) RMB24.0 billion used to purchase time deposits and held-to-maturity debt investments, offset by RMB12.1 billion of maturities of time deposits and held-to-maturity debt investments. Net cash used in investing activities in 2023 was RMB4.0 billion, consisting primarily of (i) RMB38.9 billion used to purchase other short-term investments, offset by RMB41.5 billion maturities of other short-term investments, (ii) RMB27.8 billion of financing receivables originated, offset by RMB27.1 billion of financing receivables principal collected, (iii) RMB1.2 billion of purchases of other long-term investments, and (iv) RMB14.5 billion used to purchase time deposits and held-to-maturity debt investments, offset by RMB8.9 billion of maturities of time deposits and held-to-maturity debt investments and RMB1.4 billion of sales of available-for-sale debt investments. Financing activities Net cash used in financing activities in 2025 was RMB9.8 billion (US$1.4 billion), consisting primarily of (i) RMB6,581 million (US$941 million) of repurchase of ordinary shares, (ii) RMB2,884 million (US$412 million) of dividend payment, and (iii) RMB1,676 million (US$240 million) outflow of change in customer deposits payable and other amounts collected and payable on behalf of others, net, partially offset by RMB839 million (US$120 million) proceeds from related party loans, net, as well as a RMB413 million (US$59 million) rental deposits received on behalf of others, net. Net cash used in financing activities in 2024 was RMB5,795 million, consisting primarily of (i) RMB5,101 million of repurchase of ordinary shares, (ii) RMB2,831 million of dividend payment, and (iii) RMB608 million of repayments of short-term borrowings, partially offset by a RMB2,140 million increase in customer deposits payable and payable related to escrow accounts services. Net cash used in financing activities in 2023 was RMB7,218 million, consisting primarily of (i) RMB5,151 million of repurchase of ordinary shares, (ii) RMB756 million of repayments of short-term borrowings, and (iii) RMB1,431 million of dividend payment, partially offset by RMB427 million of proceeds from short-term borrowings. Material Cash Requirements Our material cash requirements as of December 31, 2025 and any subsequent period primarily include our capital expenditures and contractual obligations. We intend to fund our material cash requirements with our cash balance. We will continue to make cash commitments, including capital expenditures, to meet the expected growth of our business. 152 Table of Contents Capital Expenditures Our capital expenditures were RMB874 million in 2023, RMB1,037 million in 2024 and RMB608 million (US$87 million) in 2025. In the years of 2023, 2024 and 2025, our capital expenditures primarily represent cash paid for purchase of property, plant and equipment, intangible assets and other long-lived assets. We funded our capital expenditures primarily with net cash flows generated from operating activities. Contractual Obligations Our material contractual obligations primarily consist of the following: (i)as of December 31, 2025, we have payment obligations totaling RMB402.4 million (US$57.5 million) under existing construction contracts for the development of our self-developed properties. We expect to make the majority of these payments within the next two years, assuming that the contractors meet the contractual construction milestones; (ii)other obligations and commitments. The following table sets forth other contractual obligations as of December 31, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ 2026 ​ ​ ​ 2027 ​ ​ ​ 2028 ​ ​ 2029 ​ ​ 2030 ​ ​ Thereafter ​ ​ ​ ​ (RMB in thousands) Short-term and long-term borrowings 390,634 ​ 207,717 ​ 182,917 ​ — ​ — ​ — ​ — Lease liability obligations 18,351,672 ​ 11,054,303 ​ 4,171,509 ​ 1,608,921 ​ 749,959 ​ 318,772 ​ 448,208 Operating lease commitments ​ 771,354 ​ 220,962 ​ 229,618 ​ 182,053 ​ 90,934 ​ 38,981 ​ 8,806 Investment commitments ​ 240,000 ​ 240,000 ​ — ​ — ​ — ​ — ​ — Capital commitments ​ 232,009 ​ 82,398 ​ 82,398 ​ 67,213 ​ — ​ — ​ — Purchase of services ​ 1,307 ​ 1,307 ​ — ​ — ​ — ​ — ​ — ​ Except for commitments and obligations as disclosed above and financial guarantees as discussed in section below, we did not have any other long-term obligations or material guarantees as of December 31, 2025. Off-Balance Sheet Arrangements We provide financial guarantees through our subsidiaries for loans that we facilitate for certain financial partners or individual lenders. We are obligated to compensate the lenders for the principal and interest payment in the event of the borrowers’ default. Therefore, we effectively provide guarantees to lenders against the credit risk. Other than the above, we have not entered into any other commitments to guarantee the payment obligations of any third parties. We have not entered into any derivative contracts that are indexed to our shares and classified as shareholder’s equity or that are not reflected in our consolidated financial statements. Furthermore, we do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. We do not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages in leasing, hedging or product development services with us. Holding Company Structure KE Holdings Inc. is not an operating company in China but a Cayman Islands holding company with no material operations of its own. We conduct our operations primarily through our subsidiaries and the VIEs in China. As a result, KE Holdings Inc.’s ability to pay dividends depends upon dividends paid by our PRC subsidiaries. Our PRC subsidiaries in turn generate income from their own operation, and in addition enjoy all economic benefit and receive service fees from the VIEs pursuant to the exclusive business cooperation agreement with the VIEs. The VIEs collectively held 42.7% of our cash, cash equivalents and restricted cash and 11.9% of our total assets as of December 31, 2025. Revenues contributed by the VIEs, excluding inter-group transactions, accounted for 0.8%, 0.8% and 0.9% of our total net revenues for the fiscal years 2023, 2024 and 2025, respectively. Investors in our ADSs are not purchasing equity interest in the VIEs in China but instead are purchasing equity interest in KE Holdings Inc., a holding company incorporated in the Cayman Islands. 153 Table of Contents Beijing Lianjia, one of the VIEs, and its subsidiaries used to be the operating entities of our existing home transaction and new home transaction services and certain other home-related emerging and other services before the completion of our reorganization, which started from November 2018 and was completed in July 2019. Through a series of restructuring transactions, most of such subsidiaries of Beijing Lianjia, as well as all of the operating branches of Beijing Lianjia, have become wholly-owned by the applicable WFOEs and our other PRC subsidiaries. Since July 2019, consequently, our PRC subsidiaries have replaced Beijing Lianjia to be the providers of such home transaction services, home rental services and certain home-related emerging and other services. Net revenues, excluding inter-group transactions, contributed by the VIEs accounted for 0.8% in 2023, 0.8% in 2024 and 0.9% in 2025, respectively. If our existing PRC subsidiaries or any newly formed ones incur debt on their own behalf in the future, the instruments governing their debt may restrict their ability to pay dividends to us. Under PRC law, each of our subsidiaries and the VIEs in China is required to set aside at least 10% of its after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of its registered capital. In addition, each of our subsidiaries and the VIEs in China may allocate a portion of its after-tax profits based on PRC accounting standards to a surplus fund at its discretion. The statutory reserve funds and the discretionary funds are not distributable as cash dividends. Remittance of dividends by a wholly foreign-owned company out of China is subject to examination by the banks designated by SAFE. Our PRC subsidiaries have not paid dividends and will not be able to pay dividends until they generate accumulated profits and meet the requirements for statutory reserve funds. C. Research and Development, Patents and Licenses, etc. See “Item 4. Information on the Company—B. Business Overview—Our Technology and Research and Development” and “Item 4. Information on the Company—B. Business Overview—Intellectual Property.” D. Trend Information Other than as disclosed elsewhere in this annual report, we are not aware of any trends, uncertainties, demands, commitments or events for the period from January 1, 2026 that are reasonably likely to have a material effect on our net revenues, income, profitability, liquidity or capital resources, or that would cause the disclosed financial information to be not necessarily indicative of future operating results or financial conditions. E. Critical Accounting Estimates We prepare our consolidated financial statements in accordance with U.S. GAAP, which requires our management to make estimates that affect the reported amounts of assets, liabilities and disclosures of contingent assets and liabilities at the balance sheet dates, as well as the reported amounts of revenues and expenses during the reporting periods. To the extent that there are material differences between these estimates and actual results, our financial condition or results of operations would be affected. We base our estimates on our own historical experience and other assumptions that we believe are reasonable after taking account of our circumstances and expectations for the future based on available information. We evaluate these estimates on an ongoing basis. We consider an accounting estimate to be critical if: (i) the accounting estimate requires us to make assumptions about matters that were highly uncertain at the time the accounting estimate was made, and (ii) changes in the estimate that are reasonably likely to occur from period to period or use of different estimates that we reasonably could have used in the current period, would have a material impact on our financial condition or results of operations. There are other items within our financial statements that require estimation but are not deemed critical, as defined above. Changes in estimates used in these and other items could have a material impact on our financial statements. For a detailed discussion of our significant accounting policies and related judgments, see “Note 2 Significant Accounting Policies” in the Notes to Consolidated Financial Statements included elsewhere in this annual report. 154 Table of Contents Provision for credit losses of accounts receivable and other receivable from new home transactions For accounts receivable from new home transactions, we make estimates of the allowance for credit losses based upon assessment of various factors, including historical experience, the age of the accounts receivable balances, creditworthiness of the customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect our ability to collect from the customers. We estimate the allowance by segmenting accounts receivable from new home transactions 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. We consider one of the most significant judgements involved in estimating the allowance for credit losses relates to segmentation of accounts receivable from new home transactions. A series of credit risk characteristics are incorporated during the segmentation process, which includes credit risk characteristics such as price fluctuation of equity and debt securities, existing financing arrangement, default events in the public market, liquidity of the customer, and public credit ratings. Due to the uncertainty and potential volatility of these characteristics, segmentation result may vary, which could materially affect our financial condition and results of operations. Recognizing that segmentation of accounts receivable from new home transactions and forecasts of macroeconomic conditions are inherently uncertain, we believe that our process to consider the available information and associated risks and uncertainties is appropriately governed and that our estimates of expected credit losses were reasonable and appropriate as of December 31, 2025. Impairment assessment of goodwill associated with home renovation and furnishing reporting unit For goodwill, we test for impairment annually as of December 31, or when events or circumstances indicate that their carrying value may not be recoverable. A significant amount of judgment is required in performing impairment tests, including the optional assessment of qualitative factors for the annual impairment test, which is used 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, we consider primary factors such as, industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. This assessment serves as a basis for determining whether it is necessary to perform a quantitative impairment test. The quantitative evaluation compares the carrying value of each reporting unit that has goodwill with the estimated fair value of the respective reporting unit. Should the carrying value of a reporting unit be in excess of the estimated fair value of that reporting unit, a goodwill impairment loss will be recognized. As of December 31, 2025, our goodwill balance was RMB4.7 billion, and the goodwill associated with the home renovation and furnishing reporting unit was RMB3.2 billion. We performed a quantitative impairment test on the goodwill associated with home renovation and furnishing reporting unit. We estimated the fair value of home renovation and furnishing reporting unit using an income approach based on a discounted cash flow model. Significant estimates and assumptions used in the discounted cash flow model included management’s best estimate of forecast revenues used to calculate projected future cash flows and discount rate. Forecasted revenues. The financial projection covering a five-year period of each reporting based on the financial budgets approved by our management, which considering the historical performance and its expectation for future market development. Discount rate. When measuring possible impairment, future cash flows are discounted at a rate that is consistent with a weighted-average cost of capital that we anticipate a potential market participant would use. Weighted-average cost of capital is an estimate of the overall risk-adjusted rate of return expected by equity and debt holders of a business enterprise. The following table sets out the key assumptions on which management had based its cash flow projections to undertake impairment testing of goodwill of home renovation and furnishing reporting unit: ​ ​ ​ ​ ​ ​ ​ As of December 31, 2025 ​ ​ Home renovation and furnishing reporting unit Annual growth rate of revenue in the projected period -7.3%-5.1% Post-tax discount rate 14% ​ 155 Table of Contents The headroom for home renovation and furnishing reporting unit as of December 31, 2025, is as follows, and the fair value of this reporting unit would equal to its carrying amount if the key assumptions were to change as follows: ​ ​ ​ ​ ​ ​ ​ As of December 31, 2025 ​ ​ Home renovation and furnishing reporting unit Headroom (RMB in thousands) ​ 40,254 Headroom % ​ 9.3% Forecasted revenue -0.9% for each forecasted year Post-tax discount rate +0.2% ​ Certain future events and circumstances, including deterioration of market conditions, increases in interest rates, and unfavorable impacts to the projections used in the impairment tests for the reporting unit discussed above, including changes in customer behavior, decrease in delivery capability, and delays or difficulties in achieving our profitability goals, could cause the fair value of this reporting unit to fall below its carrying value and a noncash impairment charge would be required. Such a charge could have a material effect on the consolidated statements of comprehensive income and consolidated balance sheets. ​