Summary of the Conference Call for Shanshui Bide Company Overview - Shanshui Bide, established in 2007 and headquartered in Guangzhou, specializes in landscape design, architectural design, and EPC (Engineering, Procurement, and Construction) services. The company holds multiple qualifications, including Class A in urban and rural planning and landscape engineering design [doc id='4'][doc id='5']. Financial Performance - In the first half of 2025, Shanshui Bide reported significant revenue growth of 24.98%, reaching 225 million yuan, while net profit decreased by 84.36% to 1.9067 million yuan due to strategic expansion and investments in new businesses [doc id='2'][doc id='3']. - The company signed new contracts worth 657 million yuan, a year-on-year increase of 71.48% [doc id='3']. - The expected bad debts and asset impairments for 2025 are projected to be between 30 million to 35 million yuan, showing a decrease from previous years due to improved customer structure [doc id='11'][doc id='12']. Business Strategy and Expansion - Shanshui Bide is currently in a growth investment phase, focusing on optimizing its profit structure for future growth [doc id='2'][doc id='9']. - The company is expanding its services beyond traditional landscape business to include architectural design and EPC services, which have lower profit margins [doc id='2'][doc id='7']. - As of now, Shanshui Bide has established 22 city branches across China, with new service points in Xinjiang and Hefei added in July 2025 [doc id='12'][doc id='13']. Technological Integration - The company collaborates with Rocky to leverage AI and AR technologies for urban renewal, creating digital twins and immersive experiences in cultural tourism [doc id='13'][doc id='22']. - Digital tools such as AI and parametric design are being integrated into the design process, enhancing efficiency and quality [doc id='6']. Market Outlook - Despite a challenging overall market, the demand for architectural design, landscape design, and EPC services remains strong. The company anticipates continued revenue growth but acknowledges that profit margins may remain under pressure in the short term [doc id='9'][doc id='17']. - The company aims for a revenue growth target of no less than 10% for 2025 and 21% for 2026, with net profit targets set at 15 million yuan and 20 million yuan, respectively [doc id='18']. Challenges and Risk Management - The expansion into architectural design and EPC services presents challenges, including increased capital requirements and potential receivables accumulation. The company plans to enhance financial management and optimize project execution to mitigate these risks [doc id='14'][doc id='15']. - The company maintains a focus on high-quality clients to reduce financial risks associated with new business ventures [doc id='14']. Industry Dynamics - The landscape industry is experiencing a downturn, but Shanshui Bide's strategic focus on professional and comprehensive services positions it well to capitalize on emerging opportunities [doc id='17'][doc id='19']. - Urban renewal policies are seen as a significant growth opportunity, with the company establishing a dedicated urban renewal group to adapt to market trends [doc id='20'][doc id='21']. Conclusion - Shanshui Bide is navigating a complex landscape of growth and investment, with a clear strategy to enhance its service offerings and leverage technology for future success. The company is poised to capitalize on urban renewal opportunities while managing the challenges of expanding into lower-margin business areas.