Summary of Jieshun Technology Conference Call Company Overview - **Company**: Jieshun Technology - **Period**: First half of 2025 Key Financial Metrics - Total revenue increased by 30% year-on-year, reaching 7.44 billion CNY [2][3] - Net profit exceeded 40 million CNY, with a year-on-year growth of over 100% [2][3] - Gross margin improved to nearly 38% [2][3] - Operating cash flow grew by 16% year-on-year, amounting to 1.2 billion CNY [3] Business Segments Innovation Business - Innovation business revenue accounted for 55% of total revenue, growing nearly 40% [2][3] - New orders reached 1.4 billion CNY, a 46% increase year-on-year, with innovation business orders growing by 126% [2][3] - Cloud hosting SaaS service revenue grew by 26%, managing 16,600 lanes with a gross margin close to 70% [2][4] - Customer renewal rate for cloud services exceeded 90%, indicating strong market competitiveness [2][4] - Smart parking operation "Jie Parking" saw a 40% revenue increase, with over 140 million users and transaction volume nearing 7 billion CNY [2][5] Traditional Business - Traditional business revenue grew approximately 4% year-on-year, stabilizing despite real estate market challenges [2][6] - Over 90% of equipment sales came from existing projects, with new projects accounting for less than 10% [2][12] Strategic Focus - Future strategy focuses on two main areas: cloud hosting SaaS services and parking operations, including transaction settlement and asset management [2][7] - Emphasis on technology innovation and service upgrades to enhance sustainable growth and profitability [2][7] AI Applications - Significant advancements in AI applications, particularly in parking scenarios [2][10] - Launched two advisory systems: one for car owners and another for parking operators, enhancing operational efficiency [2][10] Market Dynamics - The traditional business's stability is attributed to a shift from new projects to existing market development, leveraging innovation to attract clients [2][11] - Despite fluctuations in gross margin, the overall trend is expected to stabilize and improve due to the high margins from innovation business [2][12] Future Projections - Anticipated addition of 3,000 to 5,000 lanes annually in the parking management business, with a current management of over 4,000 lanes in Shenzhen [2][18] - The shared parking model is expected to alleviate urban parking issues and enhance resource utilization [2][15][16] Additional Insights - The company has successfully implemented a cross-brand e-commerce model, integrating both Jieshun and non-Jieshun devices to expand market reach [2][15] - Revenue generation from platform services is projected to grow, with significant contributions from various urban projects [2][17]