Core Viewpoint - The article highlights the recognition of Beike's home decoration segment as a leading enterprise in smart construction by Beijing's housing authority, emphasizing the importance of technological innovation and digital transformation in the home decoration industry [1][2]. Group 1: Company Recognition and Strategy - Beike's home decoration division, Beike Zhengzhuang, is the only home decoration company included in the second batch of leading smart construction enterprises in Beijing [1]. - The company aims to enhance its core competitiveness through technological innovation and to strengthen its industry leadership and collaborative links [1][2]. Group 2: Market Growth and Challenges - The home decoration industry has significant growth potential, but issues such as lack of transparency and low standardization hinder high-quality development [2]. - Beike is leveraging technology to drive digitalization and intelligence in residential services, addressing these industry challenges [2]. Group 3: Financial Performance - In the first half of the year, Beike's home decoration and furniture net income reached 7.5 billion yuan, a year-on-year increase of 16%, accounting for 15.21% of the company's total revenue [4]. - The gross margin for home decoration and furniture improved to 32.3% in the first half of 2025, up nearly two percentage points from the end of 2024 [4]. Group 4: Technological Innovations - Beike's AI design tool, "AI She Niu," has generated over 69 million design images, with more than 2.5 million users utilizing the app for home decoration [3]. - The company employs Building Information Modeling (BIM) technology to create accurate 3D models of home decoration projects, significantly improving design efficiency and reducing material waste [3]. Group 5: Future Directions - Beike plans to focus on enhancing product quality and customer satisfaction, transitioning from a fragmented service model to a comprehensive "full-case decoration service provider" model [6]. - The company is expanding its presence with new model showrooms in various cities, aiming to provide a seamless one-stop home decoration experience [6].

Core Viewpoint - The controversy surrounding the high executive salaries at Beike has intensified public scrutiny, particularly in light of the company's fluctuating profits and the significant income disparity between executives and employees [1][3][20]. Executive Compensation - Beike's CEO and major shareholder, Peng Yongdong, has a reported salary of 400 million RMB for 2024, while co-founder Shan Yigang earns 299 million RMB, which is significantly higher than typical executive compensation in other companies [1]. - Over the past four years, Peng's salary has increased from 8.478 million RMB to 400 million RMB, while Shan's has risen from 6.853 million RMB to 299 million RMB [1]. - The company's net profit has been volatile, with losses in 2021 and 2022, a recovery in 2023, but a projected decline of 30% in 2024 [1][20]. Public Reaction and Employee Concerns - The public's focus has shifted from executive salaries to the relationship between executive compensation, company profits, and employee wages, especially given that Beike employs nearly 500,000 agents with an average annual income of 74,200 RMB [3][9]. - The disparity in income is stark, with Peng's salary being approximately 5,399 times that of the average agent [3]. - Discussions around labor relations have been reignited, highlighting the need for better employee compensation and welfare [3][9]. Corporate Response - In an attempt to mitigate the backlash, Beike announced that Peng would donate 9 million shares, valued at approximately 440 million RMB, to support healthcare for industry workers and rental assistance for graduates [1][17]. - However, this gesture has not significantly alleviated public concern regarding the income gap and the company's treatment of its employees [3][9]. Business Performance and Strategy - Beike's revenue is primarily derived from five business segments, with the core business of existing home transactions seeing a decline in profit margin from 47.2% to 43.2% in 2024 [20][22]. - The company has been actively seeking new growth avenues, introducing a "one body, three wings" strategy to expand into home decoration and rental services, which contributed approximately 31.6 billion RMB in revenue, a 64.2% increase year-on-year [22]. - Despite these efforts, the overall profitability remains a concern, and the company faces pressure to stabilize both its financial performance and employee morale [22][23].