Net Income Per Share

12 Months Ended

Dec. 31, 2021

17. NET INCOME PER SHARE

Basic net income per share is the amount of net income available to each share of ordinary shares outstanding during the reporting period. Diluted net income per share is the amount of net income available to each share of ordinary shares outstanding during the reporting period adjusted to include the effect of potentially dilutive ordinary shares. For the year ended December 31, 2021, the Company had potential ordinary shares, including stock options granted, outstanding restricted share units and ordinary shares issuable upon the conversion of the Notes. For the years ended December 31, 2019, 2020 and 2021, stock options to purchase ordinary shares and restricted share units that were anti‑dilutive and excluded from the calculation of diluted net income per share were 7,627,967 shares, 11,398,012 shares and 9,826,578 shares, on a weighted average basis, respectively.

The following table sets forth the computation of basic and diluted net income per share for the periods indicated:


	For the Year Ended December 31,
	2019		2020		2021
	(RMB in thousands, except for share and per share data)
Basic net income per share calculation:
Numerator:
Net income attributable to ordinary shareholders		2,294,552		594,980		2,333,923
Denominator:
Weighted average number of ordinary shares outstanding—basic		355,625,970		364,733,164		368,460,867
Net income per share attributable to ordinary shareholders—basic		6.45		1.63		6.33
Diluted net income per share calculation:
Numerator:
Net income attributable to ordinary shareholders		2,294,552		594,980		2,333,923
Interest expense associated with convertible notes reversed		14,261		47,781		44,865
Net income attributable to ordinary shareholders for calculating diluted net income per share		2,308,813		642,761		2,378,788
Denominator:
Weighted average number of ordinary shares outstanding—basic		355,625,970		364,733,164		368,460,867
Ordinary shares issuable upon the exercise of outstanding stock options using the treasury stock method		6,470,848		3,255,913		3,381,510
Ordinary shares issuable upon the vesting of outstanding restricted share units using the treasury stock method		1,170,713		383,590		293,196
Ordinary shares issuable upon the conversion of convertible notes using the if—converted method		12,563,600		42,857,143		42,857,143
Weighted average number of ordinary shares outstanding—diluted		375,831,131		411,229,810		414,992,716
Net income per share attributable to ordinary shareholders—diluted		6.14		1.56		5.73