Core Insights - The event held by Shengdu Decoration in Hangzhou celebrated its achievements in 2025, highlighting customer satisfaction and quality service [1] - Shengdu launched the "One Heart One Billion" brand alliance with several well-known brands to enhance home decoration quality and cost-effectiveness for 2026 [1][2] - The company introduced a "payment before renovation" model, which has gained significant attention and led to a transformation in the home decoration industry [2] Group 1 - Shengdu Decoration hosted a customer appreciation banquet with over a thousand attendees, including old and new customers, strategic partners, and key department heads [1] - The event featured speeches from industry leaders, emphasizing the importance of trust between companies and customers as a driving force for industry progress [1] - The "One Heart One Billion" alliance includes reputable brands such as Moganshan, Rabbit Baby, and Boss Appliances, aiming to provide high-quality renovation services [2] Group 2 - In 2025, Shengdu completed renovations for 8,665 homes, with thousands of repeat customers, indicating strong brand loyalty and customer satisfaction [2] - The "funds custody" service introduced by Shengdu has not only attracted consumer interest but has also been adopted by other home decoration companies, showcasing its industry-leading position [2] - The event featured performances by well-known singer Xiong Tianping, enhancing the celebratory atmosphere and engaging attendees [3]

Core Viewpoint - Beike's strategic decision to partner with Shengdu in the home decoration sector three years ago has proven successful, as evidenced by its recent financial performance, particularly in the home decoration segment [1] Financial Performance - In Q3, Beike reported a net income of 23.1 billion yuan, a year-on-year increase of 2.1%, with total transaction volume reaching 736.7 billion yuan [2] - The home decoration segment generated a net income of 4.3 billion yuan, contributing a profit margin of 32%, marking two consecutive quarters of profitability at the city level before deducting headquarters expenses [1][2] Business Segmentation - Beike's total transaction volume for existing homes was 505.6 billion yuan in Q3, reflecting a year-on-year increase of 5.8% [2] - The non-real estate business's net income share rose to 45%, a historical high, with the rental service segment generating 5.7 billion yuan, up 45.3% year-on-year [3] Home Decoration Segment Growth - Beike's home decoration segment has shown steady growth, with projected net incomes of 10.9 billion yuan and 14.8 billion yuan for 2023 and 2024, respectively [3] - In the first half of 2025, the home decoration segment's net income reached 7.5 billion yuan, a year-on-year increase of 16.5% [3] Technological Integration - Beike has been actively developing its home decoration business since 2019, launching various platforms and systems to enhance service quality and operational efficiency [4] - The company has introduced a Home SaaS system to standardize and digitize key processes in home decoration [4] Strategic Initiatives - Beike initiated the "Full Case Decoration Service Provider" strategy to address industry pain points, integrating design, construction, supply chain, and after-sales services [6] - The company has implemented a bidding and centralized procurement model to ensure product quality and streamline supply chain management [6] Consumer Protection Measures - Beike is addressing consumer concerns regarding prepayment in home decoration by offering a fund custody service, which ensures that payments are only released upon successful completion of key project milestones [8][9]

Core Insights - The home decoration industry, valued in trillions, is expected to adopt new standards, with Shanghai Shengdu redefining the comprehensive decoration service model to enhance consumer experience [1] Group 1: Service Upgrade and Consumer Trust - Shanghai Shengdu has launched a brand service upgrade centered on "good products," "guaranteed services," and "true peace of mind," aiming to elevate the standards of comprehensive decoration service providers [1] - The introduction of a "funds custody" service is designed to fundamentally ensure consumer fund safety and establish new industry standards [3] - The funds custody service allows customers to freeze their renovation payments in their bank accounts, releasing funds only after key renovation stages are satisfactorily completed, thus addressing consumer concerns about prepayment risks [3][5] Group 2: Industry Impact and Consumer Protection - The funds custody model has been implemented in 43 cities by Beike, providing safety guarantees for over 25,000 families, with a user adoption rate exceeding 92% and a 97% fund release rate within seven days post-completion [4] - The core value of the funds custody service lies in building trust with consumers, emphasizing a "pay upon satisfaction" principle that directly addresses the financial risks associated with prepayment in the renovation industry [5] - Academic experts support the funds custody mechanism, highlighting its role in creating a trustworthy transaction framework and enhancing consumer rights protection within the home decoration sector [5]

Core Viewpoint - The launch of the fund custody service by Beike Zhengzhuang marks a significant step towards enhancing consumer protection and promoting transparency in the home decoration industry, addressing long-standing issues related to payment and service quality [1][3][10]. Group 1: Fund Custody Service Overview - The fund custody service has been implemented in 43 cities, providing safety guarantees for over 25,000 families in home decoration [1]. - The service aims to address two main consumer pain points: loss of control after payment and lack of fund supervision, which can lead to misuse or fraud [3][5]. - The service operates through a mechanism involving milestone acceptance and bank disbursement, ensuring funds are released only upon consumer satisfaction at key stages of the renovation [5][7]. Group 2: Consumer Benefits and Industry Impact - The fund custody model allows consumers to have more control over their funds, enhancing their bargaining power and ensuring service quality [5][12]. - The service has led to a significant reduction in customer complaints, with complaints halved since its implementation, indicating improved service quality and consumer satisfaction [12]. - The model has been recognized as a response to national policies aimed at promoting high-quality development in the home decoration sector, contributing to a more trustworthy transaction framework [10][12][13]. Group 3: Future Directions and Industry Transformation - Beike Zhengzhuang plans to continue optimizing the fund custody service and expand its coverage to more cities and demographics, reinforcing its commitment to consumer welfare [13]. - The fund custody mechanism is seen as a catalyst for industry reform, pushing companies to focus on service quality and consumer rights, thereby driving high-quality development in the sector [12][13].

Core Viewpoint - The home decoration industry is entering a golden development period driven by the demand for "good houses" and "expanding domestic demand to promote consumption," but it faces challenges such as low consumer trust [1][2] Group 1: Industry Developments - The home decoration industry is adopting new measures to enhance consumer trust and satisfaction, with leading companies implementing innovative solutions [1] - A new funding supervision system has been established by Shenzhen Shengdu Decoration, a brand under Beike, in collaboration with CITIC Bank, aiming to rebuild consumer trust in home decoration transactions [1] - The funding supervision service involves a tripartite regulatory system among customers, banks, and companies, where customer funds are frozen in personal bank accounts until key milestones are met [1] Group 2: Financial Mechanism - The mechanism operates on the principle of "separation of interest and principal," ensuring that interest accrued during the freezing period belongs to the customer, thus protecting consumer rights [1] - The initiative reflects a shift from "oral promises" to "institutional guarantees" in the home decoration industry, marking a significant transformation in industry practices [2] - Beike's home decoration business generated a net income of 7.5 billion yuan in the first half of the year, representing a year-on-year growth of 16.5% [2]