Financial Data and Key Metrics Changes - In Q4 2021, net revenues were RMB 17.8 billion, down from RMB 22.7 billion in Q4 2020, primarily due to a 34.6% decline in total GTV to RMB 732.4 billion from RMB 1,120.0 billion in the same period of 2020 [53] - Gross profit decreased to RMB 2.9 billion in Q4 2021 from RMB 5.4 billion in Q4 2020, with a gross margin of 16.4% compared to 23.9% in the same period of 2020 [56] - For the fiscal year 2021, net revenues increased by 14.6% to RMB 80.8 billion from RMB 70.5 billion in 2020, despite a challenging market environment [66] Business Line Data and Key Metrics Changes - Existing home transaction services net revenues were RMB 6 billion in Q4 2021, down from RMB 9.2 billion in Q4 2020, with GTV of existing home transactions dropping 39.4% to RMB 354.6 billion [54] - New home transaction services net revenues decreased by 12.2% to RMB 11.3 billion in Q4 2021 from RMB 12.9 billion in Q4 2020, with GTV of new home transactions dropping 24% [55] - Emerging and other services net revenues were RMB 0.5 billion in Q4 2021, slightly down from RMB 0.6 billion in Q4 2020 [56] Market Data and Key Metrics Changes - The number of agents on the Beike platform declined by 7.8% year-over-year to approximately 455,000 by the end of Q4 2021 [19] - Active agents were around 407,000, down 8.7% year-over-year, reflecting the broader market's challenges [19] - The existing home market shrank by approximately 43% year-over-year in Q4 2021, while the new home market declined by 20% year-over-year [22][25] Company Strategy and Development Direction - The company launched a "one body, two wings" strategy at the end of 2021, focusing on core home transaction services and expanding into home renovation and inclusive housing services [12] - The strategy aims to enhance service quality and customer trust while addressing evolving consumer demands in the housing market [12][13] - The company plans to invest in infrastructure and agent training to improve operational efficiency and support the growth of its two wings [75] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the unprecedented challenges faced in 2021, including market corrections and changes in consumer behavior [7][11] - The company remains optimistic about market recovery, expecting gradual improvements in transaction volumes and market sentiment in 2022 [52][76] - Management emphasized the importance of adapting to market changes and focusing on internal capabilities to navigate future challenges [11][30] Other Important Information - The company maintained a strong cash position with RMB 56.1 billion in cash and short-term investments as of December 31, 2021 [65] - The company faced allegations from a short-seller report in December 2021, which were later found to be unsubstantiated following an internal review [72][73] - The company is committed to high standards of data integrity and corporate governance [73] Q&A Session Summary Question: Market conditions and housing recovery trends - Management noted that the market has shown signs of stabilization with improving credit conditions and pent-up demand, but recovery will take time [86][88] - They expect existing home transaction GTV to decline by about 50% year-over-year in Q1 2022, with gradual recovery anticipated in the second half of the year [95][102] Question: Company's strategy and investment in 2022 - The company will focus on operational efficiency and profitability while investing in its two wings, home renovation and inclusive housing services [104][106] - Management highlighted the importance of leveraging existing capabilities to capture new demand and mitigate downturns in the core business [108]

Exhibit 99.1 KE Holdings Inc. Announces Fourth Quarter and Fiscal Year 2021 Unaudited Financial Results BEIJING, China, March 9, 2022 - KE Holdings Inc. ("Beike" or the "Company") (NYSE: BEKE), a leading integrated online and offline platform for housing transactions and services, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2021. Business and Financial Highlights for the Fourth Quarter and the Fiscal Year 2021 • Gross transaction value (GTV) in 2 ...

Financial Performance - Gross transaction value (GTV) for Q3 2021 was RMB830.7 billion (US$128.9 billion), a decrease of 20.9% year-over-year[2] - Net revenues decreased by 11.9% to RMB18.1 billion (US$2.8 billion) in Q3 2021 from RMB20.5 billion in Q3 2020[12] - Net loss was RMB1,766 million (US$274 million), with an adjusted net loss of RMB888 million (US$138 million)[2] - Net revenues from existing home transaction services were RMB6.1 billion (US$0.9 billion), a decrease from RMB8.8 billion in Q3 2020[12] - Net revenues from new home transaction services increased by 2.5% to RMB11.3 billion (US$1.8 billion) in Q3 2021[15] - Total net revenues for the three months ended September 30, 2021, were RMB 18,096,140, a decrease of 12% compared to RMB 20,548,915 for the same period in 2020[58] - Existing home transaction services generated RMB 6,138,020 in revenue for the three months ended September 30, 2021, down 30% from RMB 8,849,706 in the same period of 2020[58] - New home transaction services revenue increased to RMB 11,348,472 for the three months ended September 30, 2021, up 2.5% from RMB 11,074,424 in the same period of 2020[58] - The overall net revenues for the nine months ended September 30, 2021, reached RMB 25,962,650, compared to RMB 21,404,907 for the same period in 2020, reflecting a growth of about 21.3%[75] Loss and Adjusted Metrics - Loss from operations was RMB2,300 million (US$357 million) in Q3 2021, compared to RMB81 million in Q3 2020[24] - Adjusted loss from operations was RMB1,435 million (US$223 million) in Q3 2021, compared to adjusted income from operations of RMB1,740 million in Q3 2020, resulting in an adjusted operating margin of negative 7.9%[26] - Net loss was RMB1,766 million (US$274 million) in Q3 2021, compared to net income of RMB75 million in Q3 2020[27] - Adjusted net loss attributable to KE Holdings Inc. was RMB887 million (US$138 million) in Q3 2021, compared to adjusted net income of RMB1,857 million in Q3 2020[28] - Diluted net loss per ADS attributable to KE Holdings Inc. was RMB1.50 (US$0.23) in Q3 2021, compared to RMB0.33 in Q3 2020[31] - Adjusted EBITDA was negative RMB550 million (US$85 million) in Q3 2021, compared to RMB2,248 million in Q3 2020[26] - The company reported a total comprehensive loss of RMB 1,652,458 for the three months ended September 30, 2021, compared to a comprehensive income of RMB 669,704 in the same period of 2020[58] - Net income for the three months ended September 30, 2021, was a loss of RMB 1,765,875, compared to a profit of RMB 75,341 for the same period in 2020[65] User and Agent Metrics - Number of active agents increased by 13.1% year-over-year to 468,014 as of September 30, 2021[6] - Mobile monthly active users (MAU) averaged 46.1 million, down from 47.9 million in the same period of 2020[6] Cash and Assets - As of September 30, 2021, the combined balance of cash, cash equivalents, restricted cash, and short-term investments amounted to RMB52.7 billion (US$8.2 billion)[32] - Total current assets decreased from RMB 87,539,101 as of December 31, 2020 to RMB 70,311,349 as of September 30, 2021, a decline of approximately 19.7%[51] - Total non-current assets increased significantly from RMB 16,756,435 as of December 31, 2020 to RMB 31,829,725 as of September 30, 2021, an increase of approximately 89.9%[51] - Total liabilities decreased from RMB 37,503,020 as of December 31, 2020 to RMB 33,985,421 as of September 30, 2021, a reduction of approximately 9.5%[53] - KE Holdings Inc. shareholders' equity increased from RMB 66,765,447 as of December 31, 2020 to RMB 68,102,505 as of September 30, 2021, an increase of approximately 2.0%[55] - Cash and cash equivalents decreased from RMB 40,969,979 as of December 31, 2020 to RMB 21,780,230 as of September 30, 2021, a decline of approximately 46.9%[51] - Accounts receivable decreased from RMB 13,183,559 as of December 31, 2020 to RMB 10,516,025 as of September 30, 2021, a decrease of approximately 20.2%[51] - Total assets decreased from RMB 104,295,536 as of December 31, 2020 to RMB 102,141,074 as of September 30, 2021, a decrease of approximately 2.1%[54] Operational Expenses - Operating expenses for the three months ended September 30, 2021, totaled RMB 5,054,455, an increase of 13% compared to RMB 4,464,246 for the same period in 2020[58] - Research and development expenses for the three months ended September 30, 2021, were RMB 1,042,906, an increase from RMB 789,089 in the same period of 2020[62] - Share-based compensation expenses for the three months ended September 30, 2021, were RMB 349,599, compared to RMB 1,668,195 in the same period of 2020[65] Future Outlook and Strategy - For Q4 2021, the company expects total net revenues to be between RMB14.5 billion (US$2.3 billion) and RMB15.5 billion (US$2.4 billion), representing a decrease of approximately 31.6% to 36.0% from the same quarter of 2020[33] - The company plans to enhance service quality and technological empowerment to adapt to new regulatory measures in the real estate market[11] - The company is focusing on expanding its market presence and enhancing its service offerings to drive future growth[75] - The financial performance indicates a need for strategic adjustments in the existing home transaction services segment to improve profitability[75]

KE Holdings Inc. (NYSE:BEKE) Q3 2021 Earnings Conference Call November 8, 2021 8:00 PM ET Company Participants Matthew Zhao – Directions-Investor Relations Stanley Yongdong Peng – Co–Founder, Chairman and Chief Executive Tao Xu – Executive Director and Chief Financial Officer Conference Call Participants Liping Zhao – CICC Miranda Zhuang – Bank of America John Lam – UBS [Transcript provided to Seeking Alpha by the company] Operator Hello, ladies and gentlemen. Thank you for standing by for KE Holdings Incor ...

KE Holdings Inc. (NYSE:BEKE) Q2 2021 Earnings Conference Call August 11, 2021 9:00 PM ET Company Participants Matthew Zhao - Director Investor Relations Peng Yongdong - Co Founder and Chief Executive Officer Tao Xu - Executive Director and Chief Financial Officer Conference Call Participants Liping Zhao - CICC Piyush Mubayi - Goldman Sachs Steven Tsai - Morgan Stanley Ashley Xu - Credit Suisse (Transcript provided to Seeking Alpha by the company.) Operator Hello, ladies and gentlemen, thank you for standing ...

KE Holdings Inc. (NYSE:BEKE) Q1 2021 Earnings Conference Call May 19, 2021 9:00 PM ET Company Participants Matthew Zhao - Director Investor Relations Stanley Yongdong Peng - Co-Founder & Chief Executive Officer Tao Xu - Chief Financial Officer Conference Call Participants Elsie Cheng - Goldman Sachs Thomas Chong - Jefferies Liping Zhao - CICC Binbin Ding - JPMorgan Operator Hello, ladies and gentlemen, thank you for standing by for KE Holdings Incorporated’s First Quarter 2021 Earnings Conference Call. At t ...

PART I [Item 3. Key Information](index=9&type=section&id=Item%203.%2E%20Key%20Information) This section provides selected historical financial data, showcasing significant revenue growth, a shift to net income in 2020, and details non-GAAP metrics and comprehensive risk factors [A. Selected Financial Data](index=9&type=section&id=A.%20Selected%20Financial%20Data) Total net revenues significantly increased from **RMB 28.6 billion** in 2018 to **RMB 70.5 billion** in 2020, with the company achieving a **net income of RMB 2.8 billion** in 2020 after prior losses Selected Consolidated Statements of Operations (2018-2020) | Indicator | 2018 (RMB, thousands) | 2019 (RMB, thousands) | 2020 (RMB, thousands) | | :--- | :--- | :--- | :--- | | **Total net revenues** | 28,646,499 | 46,014,906 | 70,480,978 | | Existing home transaction services | 20,154,642 | 24,568,508 | 30,564,584 | | New home transaction services | 7,471,924 | 20,273,860 | 37,937,886 | | **Gross profit** | 6,869,976 | 11,268,044 | 16,859,857 | | **Net income (loss)** | (427,681) | (2,180,127) | 2,778,323 | Contribution Margin by Business Line (2018-2020) | Business Line | 2018 (%) | 2019 (%) | 2020 (%) | | :--- | :--- | :--- | :--- | | Existing home transaction services | 38.4% | 38.9% | 40.9% | | New home transaction services | 40.5% | 24.3% | 21.5% | | Emerging and other services | 71.2% | 80.4% | 83.9% | Reconciliation of Net Income (Loss) to Adjusted Net Income and Adjusted EBITDA (2018-2020) | Metric | 2018 (RMB, thousands) | 2019 (RMB, thousands) | 2020 (RMB, thousands) | | :--- | :--- | :--- | :--- | | **Net income (loss)** | (427,681) | (2,180,127) | 2,778,323 | | **Adjusted net income** | 130,802 | 1,656,003 | 5,719,704 | | **Adjusted EBITDA** | 606,852 | 2,917,227 | 7,737,665 | [D. Risk Factors](index=14&type=section&id=D.%20Risk%20Factors) The company faces diverse risks including real estate market fluctuations, government regulations, VIE structure challenges, uncertainties in China's legal system, and potential delisting under the HFCAA - The business is **highly susceptible** to fluctuations in China's residential real estate market and is subject to **extensive government regulations**, including policies aimed at stabilizing the market, which can adversely affect transaction volumes and prices[38](index=38&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk) - The company operates parts of its business through a **Variable Interest Entity (VIE) structure** to comply with PRC foreign ownership restrictions, and this structure relies on contractual arrangements which may be deemed **non-compliant** by PRC authorities, potentially leading to **severe penalties**[151](index=151&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk) - The company's ADSs may be **delisted** from U.S. exchanges under the **Holding Foreign Companies Accountable Act (HFCAA)** if the PCAOB is unable to inspect its China-based auditor for **three consecutive years**, which could **materially harm** the value of the investment[206](index=206&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk) - A **dual-class voting structure** gives the founder, Mr. ZUO Hui, **81.1% of the aggregate voting power** as of February 28, 2021, limiting the ability of other shareholders to influence corporate matters[224](index=224&type=chunk)[226](index=226&type=chunk) [Item 4. Information on the Company](index=83&type=section&id=Item%204.%20Information%20on%20the%20Company) This section outlines the company's history, business model, and organizational structure, detailing the evolution to the Beike platform, its core components, and the use of VIEs to comply with PRC regulations [A. History and Development of the Company](index=83&type=section&id=A.%20History%20and%20Development%20of%20the%20Company) Founded as Beijing Lianjia in 2001, the company launched the Beike platform in 2018, completed its NYSE IPO in August 2020 raising **US$2.36 billion**, and uses a VIE structure for PRC operations - The company was founded as **Beijing Lianjia** in 2001 and launched its integrated platform, **Beike**, in 2018[265](index=265&type=chunk)[266](index=266&type=chunk) - KE Holdings Inc. completed its IPO on the NYSE on August 13, 2020, raising net proceeds of approximately **US$2.36 billion**, with a follow-on offering in November 2020 raising an additional **US$2.32 billion**[268](index=268&type=chunk) - Due to PRC restrictions on foreign ownership in value-added telecommunication and finance services, the company uses a **VIE structure**, controlling entities like Beijing Lianjia and Yiju Taihe through contractual arrangements[269](index=269&type=chunk) [B. Business Overview](index=85&type=section&id=B.%20Business%20Overview) Beike, China's leading integrated housing transaction platform, achieved a **GTV of RMB 3.5 trillion** in 2020, leveraging its Agent Cooperation Network (ACN) and proprietary technologies to generate revenue across various services - Beike is the **leading integrated online and offline platform** for housing transactions and services in China, generating a GTV of **RMB 3,499.1 billion (US$536.3 billion)** in 2020[271](index=271&type=chunk) - The platform's foundation is the **Agent Cooperation Network (ACN)**, an operating system that fosters collaboration among agents and standardizes property listings, with **over 493,000 agents** and **47,000 stores** as of December 31, 2020[275](index=275&type=chunk)[300](index=300&type=chunk) - The company's proprietary "**Housing Dictionary**" is a comprehensive property database covering approximately **240 million properties** across **332 cities** in China as of December 31, 2020[312](index=312&type=chunk) - The company has invested heavily in technology, including its **RealSee Virtual Reality (VR) platform**, which hosted approximately **1.29 billion views** of property showings in 2020[320](index=320&type=chunk) [C. Organizational Structure](index=137&type=section&id=C.%20Organizational%20Structure) KE Holdings Inc., a Cayman Islands holding company, operates in China via PRC subsidiaries and VIEs, controlled through contractual arrangements to comply with foreign ownership restrictions and consolidate financial results - The company uses a **VIE structure** to operate in PRC sectors with **foreign ownership restrictions**, such as value-added telecommunication and financial services[429](index=429&type=chunk) - Control over the VIEs is established through a series of **contractual arrangements**, including **Power of Attorney**, **Equity Pledge Agreements**, and **Exclusive Business Cooperation Agreements**, which enable the **consolidation of the VIEs' financial results**[431](index=431&type=chunk)[432](index=432&type=chunk)[434](index=434&type=chunk) - The company's PRC legal counsel is of the opinion that the ownership structure and contractual arrangements are **valid** and do not violate current PRC laws, but notes that **substantial uncertainties** remain regarding the interpretation and application of these laws[436](index=436&type=chunk)[437](index=437&type=chunk) [D. Property, Plant and Equipment](index=140&type=section&id=D.%20Property%2C%20Plant%20and%20Equipment) The company leases its Beijing headquarters and **8,000 facilities** for brokerage stores across **29 cities**, while owning a **55,210 square meter** training center in Kunshan - The company leases its headquarters in Beijing and approximately **8,000 facilities** for its Lianjia brokerage stores across China[438](index=438&type=chunk) - The company owns a **55,210 square meter** training center in Kunshan, Jiangsu Province[438](index=438&type=chunk) [Item 5. Operating and Financial Review and Prospects](index=142&type=section&id=Item%205.%20Operating%20and%20Financial%20Review%20and%20Prospects) This section analyzes the company's financial performance, highlighting **53.2% revenue growth** to **RMB 70.5 billion** and a shift to **RMB 2.8 billion net income** in 2020, driven by platform expansion and covering liquidity and accounting policies [A. Operating Results](index=142&type=section&id=A.%20Operating%20Results) Operating results demonstrate strong growth, with total revenues increasing **53.2%** to **RMB 70.5 billion** in 2020, achieving a **net income of RMB 2.8 billion** after a prior net loss, and detailing critical accounting policies Year-over-Year Revenue Growth (2019 vs 2020) | Revenue Stream | 2019 (RMB, billions) | 2020 (RMB, billions) | YoY Growth | | :--- | :--- | :--- | :--- | | Existing home transaction services | 24.6 | 30.6 | 24.4% | | New home transaction services | 20.3 | 37.9 | 87.1% | | Emerging and other services | 1.2 | 2.0 | 68.7% | | **Total net revenues** | **46.0** | **70.5** | **53.2%** | - The company achieved net income of **RMB 2,778 million** in 2020, compared to a **net loss of RMB 2,180 million** in 2019, with adjusted net income growing from **RMB 1,656 million** in 2019 to **RMB 5,720 million** in 2020[509](index=509&type=chunk)[510](index=510&type=chunk) - General and administrative expenses decreased by **9.4%** in 2020, primarily due to a **RMB 1.8 billion** decrease in share-based compensation expenses compared to a large one-time recognition in 2019[504](index=504&type=chunk) - The company identified a **material weakness** in internal control over financial reporting related to a **lack of sufficient competent financial reporting and accounting personnel**[149](index=149&type=chunk) [B. Liquidity and Capital Resources](index=186&type=section&id=B.%20Liquidity%20and%20Capital%20Resources) Liquidity significantly improved, with cash, cash equivalents, and restricted cash reaching **RMB 49.5 billion** by December 31, 2020, driven by **RMB 9.4 billion** from operating activities and **RMB 25.4 billion** from financing activities, including IPO proceeds Summary of Cash Flows (2019 vs 2020) | Cash Flow Activity | 2019 (RMB, millions) | 2020 (RMB, millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | 113 | 9,362 | | Net cash used in investing activities | (3,874) | (14,978) | | Net cash provided by financing activities | 23,026 | 25,406 | - As of December 31, 2020, the company held **RMB 49.5 billion (US$7.6 billion)** in cash, cash equivalents, and restricted cash[589](index=589&type=chunk) - Financing activities in 2020 were primarily driven by net proceeds of **RMB 16.3 billion** from the IPO and **RMB 15.3 billion** from the follow-on public offering[602](index=602&type=chunk) [Item 6. Directors, Senior Management and Employees](index=193&type=section&id=Item%206.%20Directors%2C%20Senior%20Management%20and%20Employees) This section details the company's leadership, compensation, and employee base, highlighting the Baihui Partnership, **119,658 employees** as of 2020, and the founder's **81.1% voting control** via a dual-class share structure - The company has established an executive partnership, the **Baihui Partnership**, which has the right to **appoint Executive Directors** and **nominate the CEO**, ensuring management's **long-term influence** on corporate governance[616](index=616&type=chunk)[622](index=622&type=chunk) - As of December 31, 2020, the company had **119,658 employees**, with the largest group (**91,210**) being agents and supporting staff[669](index=669&type=chunk)[670](index=670&type=chunk) Share Ownership of Key Individuals and Entities (as of Feb 28, 2021) | Shareholder | % of Beneficial Ownership | % of Aggregate Voting Power | | :--- | :--- | :--- | | ZUO Hui (Founder & Chairman) | 38.8% | 81.1% | | Entities affiliated with Tencent | 11.6% | 3.6% | | SVF II Holdings Subco (DE) LLC. | 7.1% | 2.2% | | Entities affiliated with Hillhouse | 5.0% | 1.5% | [Item 7. Major Shareholders and Related Party Transactions](index=215&type=section&id=Item%207.%20Major%20Shareholders%20and%20Related%20Party%20Transactions) This section identifies major shareholders and details significant related party transactions, primarily with entities controlled by founder Mr. ZUO Hui and principal shareholder Tencent, involving various services and loans - The company engages in **significant related party transactions** with entities controlled by its founder, Mr. ZUO Hui, including **Ziroom Inc.** and **Yuanjing Mingde Management Consulting Co., Ltd**, involving agency services, online marketing, and loans[683](index=683&type=chunk)[685](index=685&type=chunk) - In 2020, the company incurred expenses of **RMB 39 million** for services from Tencent, a principal shareholder, related to advertising and cloud technology[690](index=690&type=chunk) - The company has granted **registration rights** (demand, piggyback, and Form F-3) to certain shareholders, allowing them to have their shares registered for public sale under specific conditions[693](index=693&type=chunk)[694](index=694&type=chunk)[695](index=695&type=chunk) [Item 8. Financial Information](index=219&type=section&id=Item%208.%20Financial%20Information) This section confirms consolidated financial statements, discloses an ongoing legal proceeding with claims of approximately **RMB 150 million**, and states the company's policy to retain all earnings for business growth - The company is involved in a civil lawsuit with a real estate developer, where a court of first instance ruled for the company to pay damages of **~RMB 12.7 million** and for the plaintiff to pay the company service fees of **~RMB 12.9 million**, with the case currently **under appeal**[699](index=699&type=chunk) - The company does not have a present plan to pay any cash dividends and intends to **retain earnings** to operate and expand its business[701](index=701&type=chunk) [Item 10. Additional Information](index=222&type=section&id=Item%2010.%20Additional%20Information) This section details corporate governance, including a dual-class share structure granting the founder significant control, and outlines PRC exchange controls and tax implications, including Passive Foreign Investment Company (PFIC) risk - The company has a **dual-class share structure** where Class A ordinary shares have one vote per share, while Class B ordinary shares have **ten votes per share**, and Class B shares can be converted to Class A, but not vice-versa[706](index=706&type=chunk)[709](index=709&type=chunk) - The company is an **exempted company** incorporated under the laws of the **Cayman Islands**, which provides certain **corporate flexibilities** compared to U.S. corporations, such as not being required to hold an annual general meeting[725](index=725&type=chunk) - The company does not believe it was a **Passive Foreign Investment Company (PFIC)** for the 2020 taxable year but notes that the determination is a **factual one made annually** and is subject to changes in income, assets, and market capitalization[765](index=765&type=chunk) [Item 11. Quantitative and Qualitative Disclosures about Market Risk](index=246&type=section&id=Item%2011.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risks include foreign exchange risk due to RMB/USD fluctuations, interest rate risk from floating-rate borrowings, and potential inflation impacts - The company's primary market risk is **foreign exchange risk**, as its business is conducted in RMB while its ADSs are traded in USD, making the investment's value affected by **RMB-USD exchange rate fluctuations**[782](index=782&type=chunk)[783](index=783&type=chunk) - **Interest rate risk** exposure comes mainly from **floating-rate long-term borrowings**[785](index=785&type=chunk) PART II [Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds](index=249&type=section&id=Item%2014.%20Material%20Modifications%20to%20the%20Rights%20of%20Security%20Holders%20and%20Use%20of%20Proceeds) This section details the use of proceeds from the **US$2.36 billion IPO** and **US$2.32 billion follow-on offering** in 2020, with **US$311.0 million** of IPO proceeds utilized by year-end - The company raised net proceeds of approximately **US$2.36 billion** from its August 2020 IPO and **US$2.32 billion** from its November 2020 follow-on offering[794](index=794&type=chunk)[797](index=797&type=chunk) - As of December 31, 2020, **US$311.0 million** of the IPO proceeds had been used for R&D, expansion of new home transaction services, and general corporate purposes[795](index=795&type=chunk) [Item 15. Controls and Procedures](index=251&type=section&id=Item%2015.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective as of December 31, 2020, due to a material weakness in internal control over financial reporting, with remediation efforts underway - Management concluded that disclosure controls and procedures were **not effective** as of December 31, 2020, due to an identified **material weakness**[799](index=799&type=chunk) - The **material weakness** relates to a **lack of sufficient competent financial reporting and accounting personnel** with appropriate knowledge of U.S. GAAP and SEC reporting requirements[802](index=802&type=chunk) - **Remediation efforts** include hiring qualified personnel, establishing an internal audit team, implementing new financial reporting policies, and providing ongoing training[804](index=804&type=chunk) PART III [Item 18. Financial Statements](index=255&type=section&id=Item%2018.%20Financial%20Statements) This section presents the audited consolidated financial statements for 2018-2020, highlighting critical audit matters in revenue recognition and credit loss estimation, and providing detailed accounting policy explanations [Report of Independent Registered Public Accounting Firm](index=261&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) PricewaterhouseCoopers Zhong Tian LLP issued an unqualified opinion on the consolidated financial statements, identifying critical audit matters related to revenue recognition for new home services and allowance for credit losses - The auditor, PricewaterhouseCoopers Zhong Tian LLP, issued an **unqualified opinion** on the consolidated financial statements[828](index=828&type=chunk) - A **critical audit matter** was identified related to **revenue recognition for new home transaction services**, focusing on the **management judgment** required to determine if **commission collection is probable**[833](index=833&type=chunk)[834](index=834&type=chunk) - A second **critical audit matter** was the **allowance for credit loss on accounts receivable**, which involved **significant management judgment** and a high degree of auditor subjectivity in evaluating the estimates[836](index=836&type=chunk)[837](index=837&type=chunk) [Notes to Consolidated Financial Statements](index=270&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the company's reorganization, VIE structure, significant accounting policies, balance sheet item breakdowns, preferred share terms, segment information, and related party transactions - The company's **reorganization in 2018**, establishing the current holding structure, was accounted for as a **common control transaction**, with assets and liabilities stated at **historical carrying amounts**[870](index=870&type=chunk)[872](index=872&type=chunk) - **Revenue from new home transaction services** is recognized when commission terms are met and **collection is probable**, with the company acting as the **principal agent** and recording commissions on a **gross basis**[966](index=966&type=chunk)[967](index=967&type=chunk) - The company granted a significant number of share options under its 2018 Share Option Plan, with total share-based compensation expense at **RMB 2.3 billion** in 2020, up from **RMB 382 million** in 2018 but down from **RMB 3.0 billion** in 2019[1105](index=1105&type=chunk)[1110](index=1110&type=chunk) - Prior to the IPO, the company had multiple series of **convertible redeemable preferred shares** (Series B, C, D, D+), which were classified as **mezzanine equity** and accreted to their redemption value, and all preferred shares were **automatically converted to Class A Ordinary Shares upon the IPO** in August 2020[1135](index=1135&type=chunk)[1159](index=1159&type=chunk)

KE Holdings Inc. (NYSE:BEKE) Q4 2020 Earnings Conference Call March 15, 2021 9:00 PM ET Company Participants Matthew Zhao - Director Investor Relations Stanley Peng - Co-Founder & Chief Executive Officer Xu Tao - Chief Financial Officer Conference Call Participants Elsie Cheng - Goldman Sachs Binbin Ding - J.P. Morgan Steven Tsai - Morgan Stanley John Lam - UBS Thomas Chong - Jefferies Operator Hello, ladies and gentlemen, thank you for standing by for KE Holdings Inc.'s Fourth Quarter and Fiscal Year 2020 ...