On August 27, Luen Mei Quantum (600167.SH), a leader of the clean heat supply industry, released the semiannual report of 2020, which showed revenue of 2.036 billion Yuan with a year-on-year growth rate of 23.77% and net profit of 976 million Yuan with a year-on-year growth rate of 17.50%, including net profit of 939 million Yuan with a year-on-year growth rate of 15.12% vested in common stockholders of listed companies. 

Compared with last year, the Company’s asset structure was continuously optimized, operating efficiency further improved and financial indexes attained sustained growth. The asset-liability ratio of current period was 30.55% with a year-on-year decrease rate of 4.8% and period exchange rate was 0.84% with a year-on-year decrease rate of 0.5%.

Two main businesses of Luen Mei Quantum adopted precharge mode and achieved sound cash return. By the end of this period, the Company had cash money of 3.737 billion Yuan and near cash assets of 4.379 billion Yuan, which not only helped reserve of raw materials and business expansion, but also enhanced financing potential and realized steady future development.

Clean heat supply industry welcomed strategic expansion opportunities

With respect to clean heat supply, Luen Mei Quantum, as the industry leader, has formed a pattern of “heat supply + cooling + power supply + gas supply” multiple energy supply and can realize “clean fire coal + natural gas + reclaimed water + biomass energy + waste heat” multiple energy utilization. When China is constantly promoting ecological civilization construction now, developing clean concentrated heating, developing large units and suppressing small ones and improving heat supply efficiency have become an industrial integration trend and offered a strategic expansion opportunity for leading heat supply enterprises.

PWC mentioned in Review and Future Expectations of Mergers and Acquisitions of the Chinese Energy Industry in 2020 that public utilities featured a low concentration ratio, a large number, scale deficiency and regional distribution and large enterprises tended to realize industry integration through merger and acquisition. Enterprises represented by Luen Mei Quantum will constantly promote industry merger and acquisition and continuous improvement of industry concentration.

Insiders believed that with further integration of the heat supply market, Luen Mei Quantum  will expand business nationwide by virtue of high-quality heat supply service, rich technology and experience and abundant cash. Yield will be fully guaranteed in future as grid connection area and networking area increase constantly.

Released the first “environmental and social governance report”

It is reported that Luen Mei Quantum is a listed company of clean heat supply with the largest A share size, which specializes in heat supply, power supply, engineering, grid connection and advertising release and has grown into an excellent enterprise of environmental protection and public service by virtue of sustained clean technology innovation, high-quality customer service, fine management system and good business performance.

In the meantime of disclosing the semiannual report, Luen Mei Quantum released the first ESG report, namely Luenmei Quantum Co., Ltd 2019 Environmental and Social Governance Report, which interpreted business development concept and social responsibility of the Company in the aspect of company performance, corporate governance, green development safety production, scientific and technological innovation and social benefit in order to realize harmony and unity of economic benefit, social benefit and environmental benefit.

（source：Securities Times）