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RELATED PARTY TRANSACTIONS
12 Months Ended
Dec. 31, 2022
RELATED PARTY TRANSACTIONS  
RELATED PARTY TRANSACTIONS

26. RELATED PARTY TRANSACTIONS

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Parties are also considered to be related if they are subject to common control. Related parties may be individuals or corporate entities.

During the years ended December 31, 2020, 2021 and 2022, other than disclosed elsewhere, the Group had the following material related party transactions.

Related Party

    

Relationship with the Group

Ziroom Inc. and its subsidiaries (“Ziroom”)

A group which management or operating policies significantly influenced by a director of the Company

Yuanjing Mingde (Beijing) Holding Group Co., Ltd. and its subsidiaries (“Yuanjing Mingde”)

A group which management or operating policies significantly influenced by a director of the Company

Vanlian (Beijing) Decoration Co., Ltd. (“Vanlian”)

An affiliate company of the Group

IFM Investments Limited (“IFM”)

An affiliate company of the Group

Shengdu

An affiliate company of the Group

Shanghai Xinhewan Industrial Development Co., Ltd (“Xinhewan”)

An affiliate company of the Group

Brokerage firms

Firms that the Group has significant influence in

Tencent

Principal owner of the Group

Shengdu was considered as a related party of the Group from December 10, 2021. On April 20, 2022, the Group completed the acquisition of Shengdu and Shengdu became a consolidated subsidiary of the Group (Note 23). Transactions between the Group and Shengdu from the period of December 10, 2021 to April 19, 2022 are disclosed as related party transactions.

Vanlian was an affiliate company of the Group. On January 4, 2022, the Group completed the acquisition of Vanlian and Vanlian became a wholly owned subsidiary of the Group. Transactions between the Group and Vanlian before January 3, 2022 are disclosed as related party transactions.

(i)The Group entered into the following transactions with related parties:

    

For the Year Ended December 31, 

2020

2021

2022

RMB

    

RMB

    

RMB

(in thousands)

Revenues from related parties

 

  

 

  

 

  

Online marketing services provided to Ziroom

 

72,309

104,888

90,262

Platform services provided to IFM

 

41,704

69,717

65,258

Agency services provided to Ziroom

 

55,447

53,150

34,197

Agency services and other services provided to Shengdu

 

7,565

8,700

Agency services provided to Yuanjing Mingde

 

35,154

4,491

5,183

Technical services provided to Tencent

 

1,608

745

Agency services, online marketing services and home renovation services provided to Vanlian

14,706

174,511

Commission support services provided to brokerage firms

 

201,385

423,448

441,471

Platform and franchise services provided to brokerage firms

1,870

8,512

13,011

Others

5,376

Total

 

422,575

847,890

664,203

Agency services refer to services to facilitate home sales or leases. A certain percentage of commission was recognised upon the completion of contracts between referred customers and the related parties stated above.

26. RELATED PARTY TRANSACTIONS (CONTINUED)

Online marketing services mainly refer to the technical support, marketing and promotion services provided to the above related parties to promote their own services and products.

Platform services refer to the fees the Group charged for using the Group’s ACN and SaaS system. Franchise services refer to the fees the Group charges for using the Group’s Deyou brand.

For the Year Ended December 31, 

2020

2021

2022

    

RMB

    

RMB

    

RMB

(in thousands)

Services provided by related parties

 

  

 

  

Online marketing and technical services from Tencent

 

38,943

193,866

159,564

Rental and property management services from Yuanjing Mingde

 

8,753

30,609

27,379

Services from Ziroom

 

1,025

7,942

8,131

Referral services from IFM

8,656

10,672

5,590

Referral services from brokerage firms

 

426,233

831,591

673,972

Others

 

16,343

1,322

2,717

Total

 

499,953

1,076,002

877,353

Online marketing services mainly refer to the cloud, marketing and promotion services provided by Tencent.

Rental services mainly include the office rental from Yuanjing Mingde, which was charged based on fair market price.

Referral services provided by related parties mainly refer to customer referrals from related parties.

Services from Ziroom including referral, cleaning, maintenance, sales and marketing services provided by Ziroom.

For the Year Ended December 31, 

2020

2021

2022

    

RMB

    

RMB

    

RMB

(in thousands)

Other income

  

  

  

Interest income from loans provided to Xinhewan

 

4,301

Interest income from loans provided to IFM

 

2,289

2,209

(753)

Interest income from loans provided to Yuanjing Mingde

 

92,013

Interest income from loans provided to executive directors

1,800

Interest income from loans provided to others

 

1,949

1,450

2,406

Total

 

98,051

3,659

5,954

(ii)On May 31, 2021, the Group invested in 29.16% of the equity interests of Yuanjing Mingchuang with certain preference rights with a total cash consideration of RMB700 million. Yuanjing Mingchuang is a subsidiary of Yuanjing Mingde. For the detail, please refer to Note 11.

26. RELATED PARTY TRANSACTIONS (CONTINUED)

(iii)As of December 31, 2021 and 2022, the Group had the following lease balances and transactions with related parties:

As of December 31,

2021

2022

    

RMB

    

RMB

(in thousands)

Operating Leases

  

 

  

Store leases from Yuanjing Mingde

136,164

77,625

Administrative office leases from Ziroom

51

72

Total operating lease assets

136,215

77,697

Operating lease liabilities, current from Yuanjing Mingde

8,213

4,284

Operating lease liabilities, current from Ziroom

51

26

Operating lease liabilities, non-current from Yuanjing Mingde

125,075

75,449

Total operating lease liabilities

133,339

79,759

For the Year Ended December 31,

2020

2021

2022

    

RMB

    

RMB

    

RMB

(in thousands)

Operating lease cost from related parties

 

  

 

  

 

  

Operating lease cost from Yuanjing Mingde

 

1,529

18,358

18,092

Operating lease cost from Ziroom

 

49

100

175

Operating lease cost from brokerage firms

49

Total

 

1,578

18,507

18,267

26. RELATED PARTY TRANSACTIONS (CONTINUED)

(iv)As of December 31, 2021 and 2022, the Group had the following balances with related parties:

As of December 31, 

2021

2022

    

RMB

    

RMB

(in thousands)

Amounts due from and prepayments to related parties

  

  

Ziroom

 

349,375

 

345,212

IFM

 

7,799

 

7,400

Yuanjing Mingde

7,471

6,806

Tencent

175

2,258

Vanlian

209,087

Shengdu

6,431

Brokerage firms

 

10,485

 

19,551

Others

 

519

 

24,729

Total

 

591,342

 

405,956

Amounts due to related parties

 

  

 

  

Tencent

35,269

34,723

Ziroom

 

30,872

33,530

IFM

 

22,893

27,091

Yuanjing Mingde

 

8,569

6,983

Vanlian

143,804

Shengdu

 

1,498

Brokerage firms

 

339,911

 

315,977

Others

 

1,262

 

7,381

Total

 

584,078

 

425,685

As of December 31, 2022, all amounts due from and prepayments to related parties and amounts due to related parties were trade in nature.

As of December 31, 

2021

2022

    

RMB

    

RMB

(in thousands)

Loan receivables from related parties

  

  

Short‑term loans to IFM

 

20,000

20,000

Short-term loans to others (a)

 

22,788

15,846

Current portion of long-term loans to Xinhewan (b)

14,617

Long-term loans to Xinhewan (b)

 

17,934

Long-term loans to others (a)

 

5,000

Total

 

42,788

73,397

(a)The balance of loans to others included the loans provided to entities that the Group invested and has significant influence in for operating of business of these entities, net of allowance for credit losses.

26. RELATED PARTY TRANSACTIONS (CONTINUED)

(b)In January 2022, the Group entered into a three-year RMB44.5 million loan agreement with Xinhewan at an annual fixed borrowing rate of 12%. The principal and interests are repayable to the Group in thirty-six equal instalments. As of December 31, 2022, RMB14.6 million of the loan was due within one year; the remaining RMB17.9 million was classified as long-term loan receivables from related parties on the consolidated balance sheet.

As of December 31, 2022, all loan receivables from related parties were non-trade in nature. In relation to the loans provided to the related parties stated above, the Group charged the related parties based on fair market interest rate, and cash flows resulted from the loans were presented within investing activities in the consolidated statements of cash flows.

(v)On September 5, 2022, Beike Zhaofang (Beijing) Technology Co., Ltd., a wholly owned subsidiary of the Company, entered into a donation agreement, or the Donation Agreement, with one of our principal shareholder, or the Donator. According to the Donation Agreement, the Donator agreed to donate RMB30 million free of charge during a three-year period to set up a scholarship for Huaqiao Academy run by the Group, or the Huaqiao Scholarship. The Group agreed to manage the Huaqiao Scholarship on behalf of the Donator by solely acting on its instructions. The Huaqiao Scholarship shall only be used to subsidize outstanding students of Huaqiao Academy, who will use the Huaqiao Scholarship to pay the tuition payable to Huaqiao Academy. The Huaqiao Scholarship shall be managed and accounted independently, and shall not be used for any other purpose unless instructed by the Donator, who is responsible for overseeing the use of the donated fund. During the year ended December 31, 2022, donation payment of RMB10 million was made by the Donator to a bank account designated by the Group.