Core Insights - The event marked a significant step towards addressing the pain points of the home decoration industry by introducing a transparent new consumption trust system through a "funds custody service" [1][2][5] - The collaboration between CITIC Bank and Lingjiang Decoration aims to enhance consumer trust and ensure the safety of funds in home decoration transactions [1][3] Group 1: Event Overview - The "Transparent New Consumption Creation Demonstration Project and Home Decoration Funds Custody Launch Ceremony" took place in Changzhou, China, with the participation of various media and industry experts [1][2] - The initiative is guided by the China Interior Decoration Association and aims to create a healthier home decoration market [2] Group 2: Industry Challenges and Opportunities - The home decoration market is at a critical juncture, facing both challenges and opportunities, with a national push to optimize the consumption environment and boost consumer confidence [2] - Lingjiang Decoration is taking proactive steps to address core consumer pain points, aiming to eliminate information asymmetry in the industry [2][4] Group 3: Funds Custody Service Details - The funds custody service allows consumers to pay renovation funds into a dedicated account managed by CITIC Bank, ensuring that funds are released only upon meeting specific project milestones [3][4] - This model aims to prevent early fund misappropriation by decoration companies and enhances transparency in fund usage [3][4] Group 4: Commitment to Consumer Rights - The introduction of the funds custody service reflects a commitment to safeguarding consumer rights and ensuring that funds are used appropriately [3][4] - Lingjiang Decoration emphasizes the importance of building long-term trust with consumers, transitioning from a contractor-led to a customer-led approach in the industry [4] Group 5: Symbolic Launch - The launch ceremony was attended by representatives from CITIC Bank, Lingjiang Decoration, and the China Interior Decoration Association, symbolizing the start of a new era in home decoration consumption [5] - The initiative is expected to accelerate the formation of a positive consumption ecosystem based on funds custody [5]

Core Insights - Beike (NYSE: BEKE; HKEX: 2423) reported a resilient performance in Q3, with a total transaction value (GTV) of 736.7 billion RMB, a net income increase of 2.1% to 23.1 billion RMB, and a net profit of 747 million RMB [1] - The company aims to enhance operational efficiency and customer experience through organizational upgrades and technological innovations, with a focus on AI integration in core business scenarios [1][3] Financial Performance - Total GTV for existing home business reached 505.6 billion RMB, a year-on-year increase of 5.8% [1] - New home business GTV for Q3 was 196.3 billion RMB, with a year-to-date growth of approximately 11% [2] - Home decoration and furniture business net income was 4.3 billion RMB, with a profit margin increase to 32%, up 0.8 percentage points year-on-year [2] - Rental service revenue for Q3 was 5.7 billion RMB, a 45.3% year-on-year increase, achieving profitability before allocating headquarters expenses [2] Business Diversification - Non-property transaction business net income proportion increased to 45%, indicating a more diversified business structure [1] - The company is piloting a "B+" product model in new home business to cover more lower-tier cities, with plans to expand to over 30 cities by year-end [2] AI Integration and Efficiency - The company invested 1.865 billion RMB in R&D over the first three quarters, with Q3 R&D expenses at 648 million RMB, a 13.2% year-on-year increase [3] - AI technology has been integrated into the entire rental business process, enhancing efficiency and reducing costs significantly [3] - Over 414,000 agents are utilizing AI tools to improve client conversion rates, with AI-driven processes leading to a 13% increase in efficiency in property collection [3] Service Enhancements - The company launched a comprehensive service guarantee system in the real estate transaction sector, ensuring authenticity and security in transactions [4] - A dedicated fund management service for home decoration has been implemented in over 30 cities, benefiting more than 20,000 families [5] - The rental business introduced a "direct payment of housing fund" feature in cities like Beijing and Jinan, easing rental pressures for young individuals [5]

Core Viewpoint - The launch of the renovation fund custody service by Shengdu, a direct home decoration brand under Beike, aims to rebuild consumer trust in the home decoration industry by establishing a regulated fund management system involving clients, banks, and enterprises [2][3] Group 1: Fund Custody Service - Shengdu's fund custody service is a collaboration with CITIC Bank, creating a "special account for special funds" system that releases funds based on construction milestones, ensuring consumer control over their funds [2] - The service addresses risks associated with the traditional "pay first, then construct" model, which can lead to issues like construction delays and quality problems [2] - The initiative has already been implemented in over 30 cities, safeguarding 33 billion yuan for more than 20,000 users since its inception last November [3] Group 2: Industry Impact - The introduction of the fund custody model is seen as a significant step towards enhancing consumer confidence and promoting a healthier development of the home decoration industry [2] - Industry leaders emphasize that this model sets a new benchmark for the sector, mitigating risks of fund misappropriation and ensuring funds are used specifically for their intended purpose [2] - The move is expected to facilitate a shift in the industry from a focus on "bad money driving out good" to "good money leading the market," creating a more transparent and secure home decoration ecosystem for consumers [3]

Core Viewpoint - The launch of the renovation fund custody service by Beike's direct home decoration brand, Shengdu, aims to rebuild consumer trust in home decoration transactions through a three-party fund supervision system involving customers, banks, and enterprises [1][3]. Group 1: Fund Custody System - The fund custody system introduced by Shengdu includes three main measures: establishing a third-party supervision account, releasing funds based on construction milestones, and ensuring that interest during the frozen period belongs to consumers [3][5]. - This system addresses risks associated with the traditional "pay first, then construct" model, which has led to consumer concerns over construction delays and quality issues [3][5]. Group 2: Industry Impact - The initiative reflects Shengdu's commitment to social responsibility and sets a new benchmark for the healthy development of the home decoration industry, contributing to the "reassured consumption in Jinan" city brand [3][5]. - The introduction of the fund custody model is seen as a significant step in mitigating fund misappropriation risks and enhancing consumer confidence in the home decoration sector [5][7]. Group 3: Strategic Goals - Beike's overall strategy includes integrating products, delivery, technology, and services, with fund custody being a starting point for enhancing customer satisfaction [9][11]. - The company aims to leverage technology, such as lightweight BIM and smart construction sites, to improve efficiency and consumer trust in the industry [9][11]. Group 4: Performance Metrics - Since the launch of the fund custody model in November last year, it has been implemented in over 30 cities, safeguarding 3.3 billion yuan for more than 20,000 users, with a completion release rate exceeding 99% [15]. - In Jinan, since the service went live on September 27, it has provided fund custody services for over 80 families, amounting to 4.3 million yuan [15].

Core Viewpoint - The launch of the renovation fund custody service by Zhengzhou Shengdu is aimed at rebuilding consumer trust in the home decoration industry and ensuring the safety of consumer funds through a regulated financial system [1][8]. Group 1: Industry Challenges - The home decoration market is facing significant issues, particularly the prevalent "pay first, then construct" model, which can lead to consumer rights violations if companies mismanage funds or fail to meet quality standards [3]. - These challenges not only damage the overall reputation of the home decoration industry but also hinder its sustainable development [3]. Group 2: Company Initiatives - Shengdu has committed to a "customer-first" philosophy since entering Zhengzhou in 2023, and the implementation of the fund custody service is a crucial step in addressing industry pain points and enhancing service standards [5]. - The company emphasizes the importance of "good products," "good technology," "good delivery," and "good service" to promote industry progress and provide a seamless home decoration experience for consumers [6]. Group 3: Fund Custody Service Details - The fund custody service involves freezing customers' renovation payments in their personal bank accounts, ensuring that funds do not enter the company's operational system until the customer is satisfied with the work [8]. - The service operates under the principle of "separation of interest and principal," with interest accrued on frozen funds belonging to the customer, reflecting a commitment to consumer rights [8]. - Since its launch on May 31, 2025, the service has safeguarded over 500 households and more than 40 million in renovation funds, achieving a coverage rate of approximately 98% [9].