Core Viewpoint - The "Housing Fund Direct Rent Payment" model launched by Beike Shengxin Rent in certain cities has achieved significant results, particularly in Jinan, where it addresses the housing needs of the youth population [1] Group 1: Service Implementation - In November 2023, Beike Huiju Jinan Station, in collaboration with the Jinan Housing Provident Fund Center, became the first in the country to introduce the "Housing Fund Direct Rent Payment" service [1] - The cumulative amount of rent paid directly through the housing fund has exceeded 11 million yuan, benefiting nearly 2,000 tenants and reducing deposits by 4 million yuan [1] Group 2: User Experience - The "Housing Fund Direct Rent Payment" is a core benefit of Beike Shengxin's rental offerings, allowing eligible tenants with a qualifying Alipay Sesame Credit score to enjoy "zero deposit monthly payment" convenience, significantly alleviating financial pressure [1] - Previously, tenants had to pay rent upfront and then withdraw from their housing fund, which was cumbersome and financially burdensome. Now, eligible users can complete the authorization application online through the Beike platform, with the system automatically transferring rent monthly after approval from the housing fund center [1] Group 3: Company Vision - Beike Huiju Jinan Station's General Manager, Li Yantao, stated that the company is actively responding to Jinan's initiative to build a youth-friendly city, aiming to lower the rental threshold for new citizens and young people through innovative payment methods associated with "Shengxin Rent" [1]

Financial Performance and Key Metrics - In Q3 2025, the total Gross Transaction Value (GTV) was RMB 736.7 billion, remaining flat year-over-year. Total revenues reached RMB 23.1 billion, up 2.1% year-over-year [5] - Gross margin declined by 1.3 percentage points year-over-year to 21.4%. GAAP net income was RMB 747 million, down 36.1% year-over-year, while non-GAAP net income was RMB 1.29 billion, down 27.8% year-over-year [6][16] - The company generated net operating cash inflow of RMB 851 million in Q3, with total cash liquidity around RMB 70 billion [17] Business Segment Performance - Revenue from in-home transactions reached RMB 6 billion in Q3, down 3.6% year-over-year, while GTV was RMB 505.6 billion, up 5.8% year-over-year [7] - Revenue from new home transactions was RMB 6.6 billion in Q3, decreasing by 14.1% year-over-year. The contribution margin from new home transaction services was 24.1%, down by 0.7 percentage points year-over-year [9] - Revenue from home renovation and furniture services was RMB 4.3 billion, remaining relatively flat year-over-year, with a contribution margin of 32%, up 0.8 percentage points year-over-year [10] - Home rental services revenue reached a record high of RMB 5.7 billion in Q3, up 45.3% year-over-year, with a contribution margin of 8.7%, up 4.3 percentage points year-over-year [11][13] Market Data and Key Indicators - The company had over 660,000 rental units under management by the end of Q3, compared to over 370,000 in the same period of 2024 [12] - The average market coverage in Shanghai hit a record high in Q3, increasing 1.2 percentage points year-over-year [24] Company Strategy and Industry Competition - The company is shifting its growth engine from scale to efficiency, focusing on enhancing operational efficiency through AI technology [20] - The strategic rationale includes deepening operational capabilities in home renovation and expanding into second and third-tier cities, where the market presents significant growth potential [53][54] - The company is piloting lighter product offerings in lower-tier cities to tap into additional market opportunities [40][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the new home business despite near-term market volatility, citing a shift to a more growth-driven strategy [37] - The company aims to enhance service capabilities and improve operational efficiency, with a focus on AI integration across business scenarios [34][67] Other Important Information - The company spent approximately $281 million on share repurchase during Q3, with a cumulative amount of around $675 million in 2025, up 15.7% year-over-year [17][18] - The company has implemented various cost control measures, resulting in a notable decline in labor costs and improved operational efficiency across business lines [60][62] Q&A Session Summary Question: What is the outlook for the new home business? - Management acknowledged that while near-term performance has been affected by market volatility, they remain confident in the long-term growth potential, citing improved brokerage penetration and collaborative projects [37][39] Question: How did the leasing service business turn losses into profits? - Management attributed the improvement to economies of scale, rapid growth in revenue, and operational efficiency enhancements, resulting in a significant increase in contribution profit [45][46] Question: What is the strategy for the renovation business in cities outside of Beijing and Shanghai? - Management highlighted the importance of the home renovation market in second and third-tier cities and emphasized a conservative approach until operational capabilities are matured [53][55]