Industrial parks serve as key engines driving high-quality economic development, playing crucial roles in aggregating innovation resources, accelerating technology commercialization, driving industrial transformation and upgrading, and fostering new productive forces. They provide solid support for regional economic structural optimization. However, under the dual pressure of external macroeconomic environment and internal operational challenges, the park industry remained in a deep adjustment period during the first half of 2025. The pressures facing the entire park industry go far beyond surface phenomena such as "vacancy rates" or "investment attraction difficulties," but rather represent a fundamental reshaping of underlying logic - transitioning from "policy arbitrage" to "market survival," from "real estate thinking" to "industrial thinking," and from "single chains" to "ecosystem synergy." This is not merely a simple cyclical adjustment, but a profound park "revolution."
Behind this revolution lie not only challenges but also opportunities. Companies with forward-looking strategic vision that have already adapted to industry trends and made corresponding arrangements have demonstrated stronger development resilience in this transformation. They may even emerge as pioneering forces leading this round of industrial transformation, including CEOVU (00798), which has already achieved fundamental stability.
On September 18, CEOVU released its 2025 interim report. Data shows the company's revenue during the reporting period reached 14.71 billion yuan (RMB), up 0.79% year-on-year, with net profit of 21.09 million yuan, maintaining the profitability baseline. Profit before income tax reached 72.239 million yuan, up 104.37% year-on-year.
The ability to achieve steady performance in an environment where industry development remains challenging demonstrates that CEOVU has gained first-mover advantage in the industry's underlying logic reconstruction process. Its current operational strategy and business model have achieved precise grasp of new industry development trends, which not only lays a solid foundation for the company's development but also provides a successful example for the entire park industry's transformation and upgrading. As industrial transformation deepens, CEOVU's competitive advantages will become increasingly prominent, and its value will be discovered and recognized.
**"One Core, Two Wings" Strategic Transformation Shows Results, Park Operation Services Develop Steadily**
While China's park industry remains in a deep adjustment period, a series of important policies introduced in the first half of 2025 have also pointed the direction for industrial park operations, investment attraction model transformation, and government investment fund development. Particularly, the formal implementation of the "Fair Competition Review Regulations Implementation Measures" has promoted the transformation of park investment attraction from "competing on policies" to "competing on services" and "competing on ecosystems," raising higher requirements for park enterprises' operations and accelerating industry consolidation.
CEOVU's ability to achieve steady performance development in such a challenging industry environment benefits from the company's long-term forward-looking strategic layout. As early as 2019, with deep understanding of industry development, CEOVU keenly perceived new trends in industrial development and initiated its "One Core, Two Wings" strategic transformation with park operations as the main body, park development as support, and industrial investment as the engine.
From a business model perspective, the asset-light development model centered on park operations can bring stable cash flow, effectively reducing CEOVU's operational risks. Park development plays a key counter-cyclical adjustment role, while industrial investment serves as an important lever for the company to activate the entire industrial ecosystem. The essence of continuously advancing the "One Core, Two Wings" strategic transformation is CEOVU's ability to achieve deep integration and synergistic development of the park industrial ecosystem, promoting the company's active transition from the "single chain" of park development to "ecosystem synergy" of multi-dimensional industrial resources, continuously enhancing the company's core competitiveness and accelerating growth toward new trends in park industry development.
Currently, CEOVU's "One Core, Two Wings" strategic transformation has achieved significant results. The company's digitally-led full lifecycle industrial park operation service system has demonstrated strong competitive barriers in the market, enabling park operation services to achieve steady development during the reporting period.
Data shows that in the first half of 2025, CEOVU's park operation services revenue reached 10.38 billion yuan, accounting for 70.6% of total company revenue, making this business the company's core business. Among these, design and construction services and property management services are the major components of park operation services, accounting for 25.3% and 28.4% of total company revenue respectively during the reporting period, totaling over 50%.
To address clients' investment attraction difficulties, CEOVU has vigorously promoted "P+OEPC" comprehensive operation services in design and construction business in recent years. Based on investment attraction and operation needs, it provides clients with full-process integrated services, which have been widely welcomed by local governments. During the reporting period, CEOVU optimized and integrated resources across its architectural design institutes and construction subsidiaries to fully leverage business synergy effects for market expansion, achieving design and construction business revenue of 372 million yuan.
In property management services, CEOVU has built an ecosystem for smart communities and smart parks, actively integrating resources and deeply cultivating the entire property service industry chain, providing comprehensive services to development and construction units, industrial parks, property peers, and property owners. During the reporting period, CEOVU's property management services revenue grew 10.8% to 417 million yuan, with managed area of 32.936 million square meters, up 18.92% year-on-year.
Meanwhile, within park operation services, property leasing services and group catering and hotel services experienced rapid growth during the reporting period, with revenues of 80.202 million yuan and 72.387 million yuan respectively, growing 18.1% and 6.1% respectively. Property leasing service revenue growth stemmed from OVU Creator Star's continued expansion of rental area as Central China's largest co-working brand, with total leased property area reaching 285,000 square meters as of June 30, 2025. Group catering and hotel service revenue growth benefited from business synergy effects and enhanced market brand influence.
Additionally, energy services within park operation services advanced steadily during the reporting period. CEOVU's energy services created China's first comprehensive energy low-carbon digital system OVU Low-Carbon Cloud based on the PKS system with dual experimental and production functions, driving the company's energy operation service area to 12.35 million square meters with revenue of 43.394 million yuan during the period.
**Accelerating Construction of Differentiated Core Competitiveness, Park Development Services Show Significant Counter-Cyclical Adjustment Effects**
While the asset-light park operation business model has strong anti-cyclical and stability characteristics, park development business has significant counter-cyclical adjustment features. CEOVU's steady performance development in the first half of 2025 is directly related to the rapid growth of park development services.
During the reporting period, CEOVU's park development services revenue was 431 million yuan, up 22.8% year-on-year, making this business the main driver of the company's total revenue growth.
In fact, park development business faced considerable operational pressure during the reporting period - on one hand, market demand contracted under macroeconomic weakness, and on the other hand, homogenization further intensified market competition. The reason CEOVU's park development services achieved double-digit high growth in adversity is that the company has already built differentiated core competitiveness.
First, CEOVU focuses on excavating high-tech and high-end manufacturing fields with potential new incremental demand based on industrial demand change trends. During the reporting period, the top two contributors to CEOVU's industrial park space sales revenue were Beibei Company and Tianjin Company. Beibei Company focuses on advanced manufacturing and modern services, aiming to create a software-hardware collaborative innovation base for new productive forces. Tianjin Company focuses on next-generation information technology and digital economy, forming core characteristic industrial clusters of "information innovation security + intelligent manufacturing + digital economy." By deeply excavating subdivided fields with potential new incremental demand, CEOVU seized structural opportunities in industrial transformation.
Second, CEOVU fully leverages its advantages by accelerating cross-regional industrial cooperation and resource sharing, achieving comprehensive breakthroughs from single space development to full industrial chain value empowerment, significantly enhancing its service competitiveness in the market.
Additionally, CEOVU continues to advance "agile customization," effectively breaking the shackles of homogeneous competition through personalized rapid customization solutions, making CEOVU's solutions stand out in the market. "Agile customization" has gradually become a key strategy for CEOVU to serve the manufacturing power strategy.
Furthermore, to reduce operational risks in park development, CEOVU has achieved multi-regional park layouts nationwide to ensure realization of industrial park sales targets. During the reporting period, CEOVU's industrial park space sales revenue covered 13 cities and 18 projects, with total sales area of 129,000 square meters and revenue of 315 million yuan, up 31.41% year-on-year, mainly due to increased revenue confirmation from completed deliveries of manufacturing projects in Beibei, Caidian, Ezhou, and other locations.
Notably, CEOVU currently maintains large-scale construction area and land reserves. Data shows CEOVU's newly started industrial park area totaled 41,300 square meters during the reporting period, with newly completed area totaling 132,000 square meters. As of June 30, 2025, total construction area was 582,300 square meters, and the company also reserves approximately 5.32 million square meters of high-quality industrial park land.
Large-scale construction area and sufficient land reserves will lay the foundation for park development services to play a "ballast stone" role, ensuring steady growth of the company's industrial park business scale during the "15th Five-Year Plan" period.
Regarding self-owned park property leasing, as of June 30, 2025, CEOVU had 958,000 square meters of leasable area, 674,000 square meters of leased area, with an occupancy rate of 70%. During the reporting period, rental income reached 117.2 million yuan, up 4.4% year-on-year. High-quality self-owned properties can enrich the park ecosystem, enhance park operational vitality, assist investment attraction, and boost group brand power.
Industrial investment serves as an important lever for park investment attraction and is a strong support point in CEOVU's transformation process, playing a key role in the company's continued advancement of "One Core, Two Wings" strategic layout. CEOVU's subsidiaries CECGF and Zero Degree Capital have established multiple industrial investment funds, with Zero Degree Capital managing 11 funds supporting development in four major fields: digital cities, network information, intelligent manufacturing, and new materials. CECGF completed financing and exits for multiple projects during the reporting period, achieving good capital recovery and returns.
**Industry Environment Sees Marginal Improvement, CEOVU Performance Expected to Bottom Out and Recover**
If CEOVU achieved fundamental stability first during the industry adjustment period in the first half of 2025, then entering the second half, with improving industry environment, CEOVU's business development will gradually recover, potentially providing a satisfactory conclusion to the "14th Five-Year Plan."
In the first half, macroeconomic weakness and changes in international trade conditions caused some downstream demand fluctuations. However, entering the second half, international trade conditions have stabilized, and to ensure steady economic development and successful conclusion of the 14th Five-Year Plan, the market expects monetary and fiscal policies to continue strengthening in the second half. Simultaneously, the Federal Reserve began a new round of rate cuts in September, with mainstream market views suggesting the Fed may cut rates by a cumulative 75 basis points this year, providing ample space for domestic monetary and fiscal stimulus policies.
New infrastructure, as a core direction for driving economic growth, is expected to benefit from stimulus policies, while low-carbon parks and high-end industrial parks, as branches of new infrastructure, are also expected to accelerate development from continued policy support.
Forward-looking signals of fundamental stabilization and recovery can also be found in CEOVU's first-half interim results. Contract signing amounts determine future performance release speed, so contract amounts are often viewed as leading indicators of future performance. In the first half, multiple contract amount indicators for CEOVU achieved significant growth.
Data shows that in the first half, CEOVU achieved new contract signings of 1.539 billion yuan, up 8% year-on-year, with comprehensive operation business contract amounts surging 31% year-on-year. Specifically, design and construction services under comprehensive operation business newly signed the Nanchang Xinjiaq Industrial Park "OEPC" project contract worth 525 million yuan, up 117% year-on-year. CEOVU stated that property management services are expected to enter a high-speed revenue growth channel with continued advancement of smart park and smart community management models.
For park development services, office park contract amounts grew 13% year-on-year during the reporting period, contributing stable strength to park development contract amounts.
To further consolidate the company's leading advantages in this round of industrial transformation and provide CEOVU solutions for building a modern industrial system, CEOVU stated the company will steadily advance business structure transformation and business model innovation, having made detailed deployments for second-half development.
First, CEOVU will unwaveringly advance business transformation with building a "second curve" as the core objective. Facing market competition, the company will form an organic whole, responding systematically, utilizing driving and supporting roles to create systematic business long-tail value, making systematic advantages a moat. In the second half, the company positions comprehensive operation business as the fundamental strategy for addressing the long-cycle deep adjustment of the real estate market, vigorously advancing accelerated implementation of comprehensive operation projects like Xiamen.
Second, CEOVU will actively seek strategic synergy value with China Electronics Corporation. CEOVU's industrial park network can empower China Electronics Corporation to establish a high-level network information industry supply chain system. This year, CEOVU proposed fifth-generation industrial parks and fourth-generation incubators, indicating the necessity of improving spatial service quality around new momentum and new engines. In the future, CEOVU will combine park development and incubator construction with data element industrial ecosystem construction, deeply mining industrial synergy value.
Meanwhile, CEOVU will substantially improve development business operational quality in the second half. With goals of inventory reduction, risk control, and cash flow protection, the company will continue adopting rent-and-sale strategies in the second half, accelerating sales property destocking and improving investment property occupancy rates. New projects will adopt agile customization models to control increments while deepening circle marketing and strengthening cross-regional collaborative investment attraction.
Additionally, CEOVU will reconstruct its investment property operation management system. The establishment of the Asset Management Department is a key measure for CEOVU to integrate resources and improve asset operation quality. The department's establishment strongly confirms the necessity and value of implementing professional management for investment properties. In the future, the Asset Management Department will serve as the group-level unified investment property operation management institution, comprehensively coordinating operations of various investment properties, accelerating construction of core asset management capabilities, thereby creating unique value in the stock market.
From this perspective, with improving industry environment and gradually releasing performance from year-on-year growing contract amounts, plus CEOVU's steady advancement of business deployment from multiple dimensions, CEOVU's performance recovery in the second half is likely a high-probability event, potentially contributing CEOVU strength to the satisfactory conclusion of the "14th Five-Year Plan."
**Conclusion:**
From the capital market perspective, given expectations of CEOVU's fundamental stabilization and recovery, its true value has been significantly undervalued by the market. As of the close on September 25, CEOVU's PB valuation was only 0.2x, at historical lows, with market value significantly below the company's net assets. Moreover, CEOVU maintains stable dividend distribution practices, further highlighting CEOVU's investment value.
Continuous buybacks demonstrate CEOVU's recognition of the company's undervalued intrinsic value and firm confidence in the company's future development. Since June, CEOVU has conducted over 20 buyback transactions, with cumulative share buybacks reaching 79.548 million shares year-to-date, not excluding the possibility of continued future buybacks. The company's genuine continuous buyback measures undoubtedly inject a "booster shot" for enhancing market recognition of CEOVU's value.
It can be anticipated that after true value has been significantly undervalued, with the company's fundamental stabilization and recovery plus support from continuous buybacks, CEOVU is expected to welcome a Davis double-click scenario of both performance growth and valuation improvement, potentially bringing excess return opportunities for investors in the long term.