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LONG-TERM INVESTMENTS, NET

12 Months Ended

Dec. 31, 2025

12. LONG-TERM INVESTMENTS, NET

The following table sets forth a breakdown of the categories of long-term investments held by the Group as of the dates indicated:


	As of December 31,
	2024		2025
	RMB		RMB

	(in thousands)
Investments in equity method investees	360,965		1,758,510
Investments accounted for at fair value	1,014,400		5,717,276
Equity investments without readily determinable fair value using the NAV practical expedient	60,691		59,446
Equity investments without readily determinable fair value using the measurement alternative	41,377		55,681
Long-term time deposits	15,568,643		11,477,840
Held-to-maturity debt investments	1,808,331		1,079,771
Available-for-sale debt investments	4,935,699		—
Total long-term investments	23,790,106		20,148,524

12. LONG-TERM INVESTMENTS, NET (Continued)

Investments in equity method investees


		Amounts
		RMB
		(in thousands)
Balance at December 31, 2022		370,985
Investments made		183,253
Income from investment		9,098
Investment impairment		(10,369)
Disposal of investment		(101,761)
Dividend received		(14,862)
Balance at December 31, 2023		436,344
Investments made		30,410
Income from investment		10,192
Disposal of investment		(100,154)
Dividend received		(15,827)
Balance at December 31, 2024		360,965
Investments made		1,452,212
Income from investment		16,420
Investment impairment		(61,053)
Disposal of investment		(1,443)
Dividend received		(8,591)
Balance at December 31, 2025		1,758,510

The carrying amount of the Group’s equity method investments was RMB361.0 million and RMB1,758.5 million as of December 31, 2024 and 2025, respectively. For the years ended December 31, 2023, 2024 and 2025, the impairment recognized for equity method investments was RMB10.4 million, nil and RMB61.1 million, respectively. Additionally, an allowance of RMB42.6 million has been recognized for the loan receivable from an equity method investee in accordance with ASC 323-10-35-25.

The Group recognized share of profit from equity method investments of RMB9.1 million, RMB10.2 million and RMB16.4 million for the years ended December 31, 2023, 2024 and 2025, respectively.

12. LONG-TERM INVESTMENTS, NET (Continued)

Investments accounted for at fair value

The following table shows the carrying amount and fair value of investments accounted for at fair value:


				Gross		Gross
				unrealized		unrealized		Exchange
		Cost basis		gains		losses		adjustments		Fair value
		RMB		RMB		RMB		RMB		RMB

		(in thousands)
Marketable securities (i)		96,848		—		(46,420)		5,736		56,164
Unlisted equity securities and loan receivables measured at fair value (ii)		233,088		—		(200,516)		—		32,572
Wealth management products (iii)		896,920		31,766		(3,028)		6		925,664
Balance at December 31, 2024		1,226,856		31,766		(249,964)		5,742		1,014,400
Marketable securities (i)		96,848		—		(47,671)		4,497		53,674
Unlisted equity securities and loan receivables measured at fair value (ii)		245,076		—		(196,696)		—		48,380
Wealth management products (iii)		5,537,500		80,750		(3,028)		—		5,615,222
Balance at December 31, 2025		5,879,424		80,750		(247,395)		4,497		5,717,276

(i)Marketable securities

Marketable securities represent investments in the equity securities of publicly listed companies, for which the Group does not have significant influence. The marketable securities are valued using the market approach based on the quoted prices in active markets at the reporting date. The Group classifies the valuation techniques that use these inputs as Level 1 of fair value measurements.

(ii)Unlisted equity securities and loan receivables measured at fair value

Investment in IFM Investments Limited (“IFM”)

In October 2017, the Group purchased 10.0% ownership in IFM, a company focusing on real estate agency business in the PRC, through subscription of 308,084,916 convertible redeemable preferred shares newly issued by IFM at an aggregated subscription price of RMB60.0 million. Concurrent with the preferred share investment, the Group entered into a convertible note purchase agreement on August 14, 2017 to purchase convertible notes issued by IFM in the principal amount of US$ equivalent of RMB40.0 million with maturity period of 30 months and interest rate per annum of 12.0%. The convertible notes were convertible into IFM’s preferred shares at a discounted price. The Group elected the fair value option to measure the preferred share investments and the entire convertible note with the assistance of an independent valuation firm.

In 2019, the Group launched a series of incentive programs to incentivize real estate brokerage firms to join the Group’s platform. IFM is one of the leading firms in the real estate agency business industry. In May 2019, to incentivize IFM to join the Group’s platform, the Group made additional investment of RMB308.0 million to acquire certain percentage of IFM’s preferred and ordinary shares, converted the convertible note into preferred shares and provided RMB130.0 million loan to IFM’s controlling shareholder, which is secured by 17.5% ownership of IFM. Total consideration of the additional investment in IFM and the loan to IFM’s controlling shareholder was RMB438.0 million. The fair value of the additional investment in IFM and the loan to IFM’s controlling shareholder was RMB120.1 million on the transaction date. The difference of RMB317.9 million between the consideration paid and the fair value received was considered and recognized as deemed marketing expenses.

12. LONG-TERM INVESTMENTS, NET (Continued)

(ii)Unlisted equity securities and loan receivables measured at fair value (Continued)

As the investment in IFM is not in-substance common stock, it does not qualify for equity method accounting, and according to ASC 321, the Group elected to account for this investment at fair value with realized or unrealized gains and losses recorded in the consolidated statements of comprehensive income.

As of December 31, 2024 and 2025, the Group held 37.6% equity interests in IFM and the fair value of the investment amounted to RMB31.9 million and RMB35.6 million, respectively. The fair value of the loan to IFM’s controlling shareholder amounted to RMB0.6 million and RMB0.7 million, respectively. The Group classifies the valuation techniques that use these inputs as Level 3 of fair value measurements.

(iii)Wealth management products

As part of the Group’s cash management program, the Group invested in certain wealth management products with variable interest rates and principal not guaranteed issued by financial institutions. These wealth management products were with a maturity of over one year, or could be redeemed through advance notice and the Group intended to hold the investments over one year, thus were classified as long-term investments. The Group classifies those investments that use similar identifiable transaction prices when applying valuation techniques as Level 2 of fair value measurements and those investments that are measured using significant unobservable inputs as Level 3 of fair value measurements. For the years ended December 31, 2023, 2024 and 2025, gain of RMB11.7 million, RMB16.5 million and RMB80.8 million resulting from changes in fair value of the wealth management products was recorded in earnings in the consolidated statements of comprehensive income, respectively.

Equity investments without readily determinable fair value using the NAV practical expedient

Equity investments without readily determinable fair value include investments in private equity funds accounted for under NAV practical expedient, and investments in private companies accounted for under measurement alternative.

Investments in private equity generally are not redeemable due to the closed-ended nature of these funds. Investments in private equity funds over which the Group does not have the ability to exercise significant influence are accounted for under the NAV practical expedient. As of December 31, 2024 and 2025, the carrying amount of the Group’s investment in private equity funds was approximately RMB60.7 million and RMB59.4 million, respectively. Investments in the private equity fund are subject to a lock-up period of 8 years from September 2018 which restricts investors from withdrawing from the fund during the investment period.

Equity investments without readily determinable fair value using the measurement alternative

As of December 31, 2024 and 2025, investments accounted for under measurement alternative were RMB41.4 million and RMB55.7 million, respectively. There was no upward adjustment identified by the management for the year ended December 31, 2025.

12. LONG-TERM INVESTMENTS, NET (Continued)

The total carrying value of investment in private companies accounted for under measurement alternative held as of December 31, 2024 and 2025 is as follows:


		As of December 31,
		2024		2025
		RMB		RMB

		(in thousands)
Initial cost basis		829,938		842,155
Cumulated unrealized losses (including impairment)		(788,561)		(786,474)
Total carrying value		41,377		55,681

For the years ended December 31, 2023, 2024 and 2025, RMB28.8 million, RMB9.4 million, and RMB2.7 million impairment was recorded for investments in private companies accounted for under measurement alternative. The impairment was recorded in “Impairment loss for equity investments accounted for using measurement alternative” in the Group’s consolidated statements of comprehensive income. The Group classifies the valuation techniques on those investments that using similar identifiable transaction prices as Level 2 of fair value measurements.

Long-term time deposits

The Group’s long-term time deposits are time deposits placed with banks with original maturities of more than one year and those maturity dates within one year will be reclassified to short-term investments. As of December 31, 2025, deposits were denominated in RMB amounting to approximately RMB11.5 billion, among which RMB11.4 billion will mature in 2027 and the remaining RMB0.1 billion will mature in 2028.

Held-to-maturity debt investments

During the year ended December 31, 2025, the Group recorded investment income from its long-term held-to-maturity debt investments of RMB25.5 million in the consolidated statements of comprehensive income. Long-term held-to-maturity debt investments as of December 31, 2025 are shown as below, which would mature in 3 years:


		As of December 31, 2025
		Cost or Amortized		Gross unrecognized		Gross unrecognized
		cost		holding gains		holding losses		Fair value
		RMB		RMB		RMB		RMB	US$

		(in thousands)
Held-to-maturity debt investments		1,079,771		388		(275)		1,079,884	154,421

Available-for-sale debt investments

The following table summarizes the estimated fair value of available-for-sale debt investments with stated contractual dates, classified by the contractual maturity date of the investments:


		As of December 31,
		2024		2025
		RMB		RMB		US$

		(in thousands)
Expected to be redeemed by the issuer in 1 year to 2 years		4,935,699		—		—