Core Viewpoint - ST Mingcheng (600136.SH) has shown significant recovery in its performance after a prolonged downturn, with a substantial increase in revenue and a successful turnaround in net profit [1][2] Financial Performance - In the first half of 2025, ST Mingcheng achieved an operating income of 279 million yuan, a year-on-year increase of 596.55% [1] - The net profit attributable to shareholders reached 999,000 yuan, a turnaround from a loss of 21.64 million yuan in the same period last year [1] - Although the net profit after deducting non-recurring items remains negative, it has significantly narrowed compared to the previous year, indicating a stabilization in overall operational performance [1] Business Strategy and Structure - The company's performance surge is primarily attributed to a strategic adjustment in its business structure, forming a dual main business model of "Film and Television Media + Smart Space," with synergistic effects becoming increasingly evident [2] - The film and television segment has rebounded, with five new dramas launched in the first half of the year, covering various genres, and non-box office revenue expansion contributing to growth [2] Operational Highlights - The company’s 13 cinemas attracted over 1.13 million viewers, with 82,500 screenings conducted [2] - The smart space segment has expanded its service area to over 10.26 million square meters, winning 28 projects and earning recognition as a top 20 enterprise in school property services in China [2] - The hotel operations in Sanya achieved an occupancy rate of 86.73%, and the Wuzhishan hotel received multiple industry awards for its unique experience model [2]

Group 1: Impact of DeepSeek on Smart Space Industry - The emergence of DeepSeek has transformed the smart space industry by enabling local deployment of AI language models, addressing data security and privacy concerns for large enterprises and government clients [2] - Prior to DeepSeek, the company had already integrated discriminative AI capabilities into its AIoT platform for fault prediction and energy anomaly detection [2] - DeepSeek's integration allows for enhanced AI applications in smart spaces, including intelligent Q&A, data analysis, and natural language command understanding [3] Group 2: Client Investment in AI Applications - Corporate clients, particularly in enterprise parks, exhibit strong willingness to invest in AI applications for smart spaces [3] - In March 2025, the company launched the V7 version of its AIoT platform, securing an order exceeding 20 million CNY from a well-known domestic commercial bank [3] - Key clients span across finance, technology, and high-end manufacturing sectors, including major firms like CICC, GF Securities, Xiaomi, and CATL [3] Group 3: Benefits of AI Integration - The integration of AI language models with real-time data from the AIoT platform aids clients in achieving cost reduction, efficiency improvement, and enhanced user experience [3] - The AI capabilities help clients in energy conservation, property management optimization, and overall smart park enhancement [3] - The company is positioned to drive the large-scale implementation of AI solutions in enterprise park scenarios due to its strong client base and evolving AI capabilities [3]