Core Viewpoint - The financial report of Aoya Co., Ltd. for the first half of 2025 reveals a paradoxical yet significant transformation, showcasing a decline in revenue but a historic surge in cash flow, indicating a strategic shift within the company [1][6]. Group 1: Financial Performance - Aoya Co., Ltd. achieved a revenue of 197 million yuan in the first half of 2025, while the net cash flow from operating activities turned from a net outflow of over 90 million yuan in the same period last year to a net inflow of 527.6 million yuan, representing a year-on-year growth of 681.71% [1][2]. - The significant cash flow is attributed to the company's transition to the "O+EPC+IP+O" model, moving from a traditional "heavy asset EPC contractor" to a "city value operator" [2]. Group 2: Strategic Transformation - The company has shifted its focus from low-priced real estate landscaping to urban renewal and public landscape projects, aligning with national policy directions emphasizing urban quality improvement [3][6]. - Aoya's two core businesses, landscape design and comprehensive cultural tourism, experienced revenue declines of 41% and 983.3 million yuan respectively, yet maintained strong gross margins, with landscape design achieving a gross margin of 45.87% [3]. Group 3: Cultural Tourism and IP Development - In the cultural tourism sector, the gross margin slightly decreased by 3.9% to 20.96%, but still demonstrated resilience amid industry fluctuations [4]. - The company is advancing its "Luo Jia Natural Exploration Center" and has established JoyKey to focus on independent IP operations and commercialization, marking a strategic shift from a design service provider to a "cultural tourism content operator" [4]. Group 4: Technological Innovation - Aoya is accelerating its investment in strategic emerging fields, particularly in the "AI+IP" dual-engine layout, with its self-developed UrbanFlow model being applied to multiple projects [5]. - The collaboration with Web3 technology company Qiyihuo to explore RWA (Real World Asset tokenization) indicates a commitment to integrating digital assets with physical consumption [5]. Group 5: Future Outlook - The report reflects a combination of revenue reduction and increased cash flow and strategic clarity, positioning Aoya to capitalize on urban renewal, IP operations, and AI innovations [6]. - As national policies prioritize quality housing and urban improvement, Aoya's "O+EPC+IP+O" model is expected to mature, potentially allowing the company to evolve into a creator of valuable urban experiences independent of the real estate cycle [6].

Core Viewpoint - The financial report of Aoya Co., Ltd. for the first half of 2025 reveals a significant transformation in its business strategy, marked by a substantial increase in cash flow despite a decline in revenue, indicating a shift from traditional EPC contracting to urban value operation [2][7]. Group 1: Financial Performance - Aoya achieved a revenue of 197 million yuan in the first half of 2025, while the net cash flow from operating activities turned from a net outflow of over 90 million yuan in the same period last year to a net inflow of 527.6 million yuan, representing a year-on-year growth of 681.71% [2]. - The company’s strategic shift has resulted in over 500 million yuan in operating cash flow, which is not a one-time occurrence but a result of its ongoing transformation since 2024 [2][3]. Group 2: Strategic Transformation - Aoya is transitioning from a traditional "heavy asset EPC contractor" to a "city value operator" through its "O+EPC+IP+O" model, which integrates design, general contracting, branding, and operations [2][7]. - The company has successfully implemented innovative approaches in government-led projects, achieving high prepayment ratios through "operational pre-positioning + EPC general contracting + IP integration + long-term operation" [3]. Group 3: Core Business Adjustments - The two core businesses of Aoya, landscape design and comprehensive cultural tourism, experienced revenue declines of 41% and 983.3 million yuan respectively, yet maintained strong gross margins, with landscape design achieving a gross margin of 45.87% [3][5]. - Aoya has strategically chosen to abandon low-priced real estate landscaping in favor of urban renewal and public landscape projects, aligning with the industry's value creation logic [3]. Group 4: Alignment with National Policies - Aoya's strategic choices align with national policy directions, particularly the emphasis on urban renewal and improving living quality as outlined by the Ministry of Housing and Urban-Rural Development [4]. - The company has established deep collaborations with leading real estate firms to create benchmark projects that validate the effectiveness of its "design + operation" approach in enhancing real estate value [4]. Group 5: Cultural Tourism and IP Development - In the cultural tourism sector, Aoya's gross margin slightly decreased to 20.96%, yet it demonstrated resilience amid industry fluctuations, leveraging its brands to build a complete industry chain [5]. - The company is accelerating the nationwide replication of light-asset projects and has established JoyKey to focus on independent IP operation and commercialization, marking its evolution from a design service provider to a content operator in cultural tourism [5]. Group 6: Technological Innovation - Aoya is intensifying its investment in strategic emerging fields, particularly in the "AI + IP" dual-engine layout, with its self-developed UrbanFlow model being widely applied across multiple projects [6]. - The collaboration with Web3 technology company Qiyihuo to explore the tokenization of real-world assets (RWA) indicates a commitment to integrating digital assets with physical consumption [6]. Conclusion - Aoya's mid-2025 report reflects a balance of reductions in revenue and increases in cash flow and strategic clarity, positioning the company to thrive in urban renewal, IP operation, and AI innovation, moving towards becoming a creator of valuable urban experiences rather than relying solely on the real estate cycle [7].