One Body, Two Wings Strategy Upgrade slide image

One Body, Two Wings Strategy Upgrade

Improving Cost and Expense Structure Cost of Revenue Operating Expenses ④ 贝壳 找房大平台 (RMB mm) (RMB mm) 24.5% 23.9% 19.6% 23.9% 16.4% 28.4% 19.9% 21.3% 18.3% 23.0% 53,621 2.243 64,933 2.990 3,810 3.207 31,827 34,747 1,069 24,847 3.079 11,155 20.3% 4 16.2%4 18.4% 4 14.4% 4 19.2%4 17,174 14,018 747 13,054 236 3,194 1,571 2,478 8,924 17,246 8,377 7,589 14,870 4,157 4,099 778 642 ■236 350 26,307 23,324 8,732 714 19,444 7,799 ■ 738 6,790 2019 2020 2021 2020Q4 5,394 2021Q4 3,106 3,715 4,309 1,884 1,323 2,202 809 2019 2020 2021 2020Q4 2021Q4 ■Commission and Compensation - Internal Commission - Split2 Cost Related to Stores³ ■ Others % Gross Margin ■Sales and Marketing Expenses ■Research and Development Expenses % of Total Revenues ■General and Administrative Expenses ■Impaiment of goodwill and intangible asstes. % of Total Revenue after Adjustments 1 Defined as the compensation paid to the internal agents and other sales professionals, including fixed salaries and variable commissions based on the transactions they assist in closing. 2 Defined as the commissions paid to connected agents and other sales channels for their services to assist in completing new home and existing home transactions. 3 Mainly including rent, decoration, and utility bills for real estate brokerage stores under Lianjia brand. 4 Adjusted operating expense is defined as operating expense, excluding the effects of (i) share based compensations; (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreement; (iii) deemed marketing expense related to IFM acquisition of RMB318 million and RMB43 million in 2019; (iv) impairment of goodwill and intangible assets of RMB236 million, RMB747 million, RMB236 million and RMB350 million in 2020, 2021, 2020Q4 and 2021Q4 respectively. 17
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