Ordinary Shares and Treasury Shares

12 Months Ended

Dec. 31, 2023

Statement of Stockholders' Equity [Abstract]

14.	ORDINARY SHARES AND TREASURY SHARES

In 2021, prior to the completion of USIPO, the Company repurchased 177,267,715 Class A ordinary shares from certain shareholders of the Group with an aggregate consideration of RMB1,077,505. The repurchases resulted in a reduction of ordinary shares by RMB12, a reduction of APIC by RMB1,038,564 and compensation expenses of RMB38,929 for the excess of the repurchase prices over the fair values of the ordinary shares repurchased as of the respective repurchase dates.

On June 22, 2021, upon the completion of USIPO, 1,650,000,000 Class A ordinary shares were issued to the public investors and 210,526,314 Class A ordinary shares were issued in the concurrent private placement. Total proceeds of the issuance were RMB11,059,043, net of the issuance cost. On the same date, all convertible redeemable preferred shares were converted into ordinary shares.

In 2021, 866,230,796 stock options were exercised into ordinary shares by employees, of which 351,972,260 were Class A ordinary shares and 514,258,536 were Class B ordinary shares. The Company repurchased 169,834,500 Class B ordinary shares for tax purpose upon the exercise of options, which resulted in a reduction of ordinary shares by RMB11 and a reduction of APIC by RMB626,431.

On April 14, 2022, the Group entered into a share surrender and loan repayment agreement with a shareholder and his certain affiliates in connection to the settlement plan of his subscription receivables. Pursuant to such agreement, the Group settled the US$200 million of subscription receivables from the shareholder by accepting the surrender of 560,224,090 Class A ordinary shares on May 7, 2022. The number of surrendered shares was determined based on US$0.36 per share, the fair value of the Company’s ordinary shares on the date of the settlement notice. The settlement resulted in the

pay-off

of subscription receivable of RMB 1,310,140 with a reduction of ordinary shares by RMB 37 and a reduction of APIC by RMB 1,326,603.

On July 6, 2022, the Company repurchased

and cancelled

an aggregate of 259,095,756 Class A ordinary shares for an aggregate consideration of RMB822,373, based on the market closing price of Class A ordinary shares on July 5, 2022, which resulted in a reduction of ordinary shares by RMB17 and a reduction of APIC by RMB822,356.

In 2022, 318,299,998 stock options were exercised into ordinary shares by employees, of which 112,209,998 were Class A ordinary shares and 206,090,000 were Class B ordinary shares. The Company repurchased 710,080 Class A ordinary shares and 91,165,500 Class B ordinary shares for tax purpose upon the exercise of options, which resulted in a reduction of ordinary shares by RMB6 and a reduction of APIC by RMB257,891. In addition, 1,121,670,655 Class B ordinary shares were reclassified into the same number of Class A ordinary shares during 2022.

In 2023, the Company repurchased 455,039,640 Class A ordinary shares from the open market with an aggregate purchase price of

$147,689 including commission under the share repurchase program. The repurchased shares were recorded in the treasury shares account using cost method upon repurchase. At retirement of the treasury shares, the ordinary shares account is charged only for the aggregate par value of the shares. The excess of the acquisition cost of treasury shares over the aggregate par value is allocated between additional

paid-in

capital and retained earnings. In 2023, 201,197,520 Class A ordinary shares were retired, which resulted in a reduction of ordinary shares by RMB 14 and a reduction of APIC by RMB 439,354.

2023, 131,869,359 stock options were exercised into class A ordinary shares by employees. The Company repurchased 14,166,880 Class A ordinary shares

for tax purpose upon the exercise of options,

which resulted in a decrease of ordinary shares by RMB1 and a reduction of APIC by RMB35,046. In addition, 185,179,040 Class B ordinary shares were reclassified into the same number of Class A ordinary shares during the year ended December 31, 2023.