On October 31, the “2019 Summit Forum on Improving Quality of Listed Companies and the 21st Golden Bull Award of Listed Companies” was held in Beijing, hosted by China Securities Journal. Luen Mei Quantum (600167.sh) won an award of 2018 for the management of investor relations, and Mr. Liu Sisheng, the secretary of the board of Luen Mei Quantum won an award of 2018 for secretaries of the board.

The Golden Bull Summit Forum on Listed Companies is an authoritative and influential top event. China Securities Journal works with CCIX to establish a system of performance evaluation indicators with a closer link with the values of listed companies through an empirical analysis, which is of awesome referential values to the investment decisions of investors and has been honored as “a wind vane for value investment”.

Industrial insiders believe that the economy of China is undergoing a third power transformation and the market has reached a consensus in the investment of core assets. On this basis, the “Golden Bull Award” this year adopted stricter screening standards for quality companies with a theme of “High-quality Development of Listed Companies”. Among the more than 3,600 listed companies of the A Share, 100 enterprises have won an award for the management of investor relations and 70 secretaries of the board have been awarded. That Luen Mei Quantum has won both awards indicates that its solid and soft strengths have been widely recognized by all investors.

Winning two awards, the company’s governance level recognized by professionals

At the Summit Forum held on October 31, Cao Yong, the deputy director of the listing department of the China Securities Regulatory Commission (CSRC), mentioned in his speech that as the structural reform at the supply side goes on in an orderly manner, the number of listed companies of China has grown steadily and their quality has gradually improved, their capability to create values has been constantly strengthened. They have become an important force to promote the development of national economy, which is mainly reflected in four areas. First, they are prominent in scale advantage. Second, their structure has been optimized constantly and the effect of transformation and upgrade is distinctive. Third, its capacity to repay investors has been strengthened constantly. Fourth, its corporate governance has improved steadily.

As one of the authoritative awards of Chinese capital market, the “Golden Bull Award” this year has adopted a strict system of value appraisal. Authoritative experts of the industry have been invited to conduct a comprehensive evaluation of the listed companies in terms of financial benefits, quality of assets, insolvency risk, development capacity, market performance, etc.

The appraisal and selection of “2018 award for management of investor relations” comprehensively evaluates the profiting capacity, asset management capacity and growth capacity and requires that “listed companies should carefully coordinate the investor relations, warmly receive the visits of shareholders and researchers, and their disclosure of information should be truly timely, correct, complete and legal.” Specifically it requires that the enterprises should be able to excellently complete their disclosure of information, manage their investor relations and the data of shareholders, coordinate the information communication with the securities regulator, shareholders and actual controllers, sponsors, securities service providers, media, etc.

Luen Mei Quantum has also won an “award of 2018 for management of investor relations”, which is a positive evaluation of its business growth and solid strength as well as a recognition to the enterprise for paying attention to the management of its investor relations and building its comprehensive soft strength.

Throughout 2018, Luen Mei Quantum achieved an annual business revenue of RMB 3.037 billion; an annual net profit attributable to the owners of the parent company at RMB 1.317 billion, with a year-on-year growth of 25.68%; and provided a great amount of dividend, planning to offer three shares for every ten shares and a cash dividend of RMB 1.50.

Meanwhile, Mr. Liu Sisheng, the secretary of the board of Luen Mei Quantum was awarded as a secretary of the board of 2018, which was an affirmation to his excellent performance in different areas of work such as disclosure of the company’s information, management of investor relations, capital operation and market management.

It’s reported that the appraisal and selection of winners for the Golden Bull Award for secretaries of the board mainly refers to factors such as the comprehensive value of the evaluation system of listed companies, their market performance in 2018, their investment in the past three years on end, and their uses of financing tools. It requires the secretaries of the board to effectively assist the board of directors to exercise its official power, carefully coordinate the investor relations, warmly receive the visits of shareholders and researchers and ensure that the disclosure of information of the company must be truly timely, correct, complete and legal. Among the more than 3,000 listed companies, only 70 secretaries of the board have won an award.

This time Mr. Liu’s winning the honor has reflected his solid professional quality and competence and been a further recognition to the excellent corporate governance of Luen Mei Quantum.

Driven by double engines, maintaining a robust and steady development for years

So far, Luen Mei Quantum has formed a business pattern driven by two engines “clean heat supply and digital media of high-speed railway” and has maintained a robust and steady growth in business performance for more than a decade on end. In these years, its net profit has grown with a speed of more than 25% annually.

According to its statements of first three quarters disclosed so far, the business revenue of Luen Mei Quantum in the first three quarters is RMB 1.93 billion, with a year-on-year growth of 10.56%; its net profit was RMB 918 million, a year-on-year growth of 25.10%; its net profit after deducting its non-recurring gains and losses is RMB 897 million, with a year-on-year growth of 52.37%. The company’s monetary capital is RMB 3.8 billion. It has carried on a business growth momentum featuring a high profit, a high growth and a high amount of cash as usual.

The clean heat supply of Luen Mei Quantum is an infrastructure project that concerns the national economy and people’s livelihood. Through matching with the large-scale utilization of clean energy, it has indeed saved fuel, reduced environment pollution and achieved a distinctive environment protection effect. Moreover, as the current policies insist that “applying electricity, gas, coal and heat whichever is appropriate”, it will open growth space for the clean heat supply business.

Different organizations attracted to take a bulk-Quantum action as the company’s robust development potential has been recognized

In the positions announced by each major institution, Luen Mei Quantum was among the bulk-Quantum stocks for times. According to the latest statistics of the Love Stock App, a stock market investment platform, there are only 15 bulk-Quantum stocks with a good performance, a high growth and a new organization in the two stock markets. Luen Mei Quantum is one of them.

According to the research report released by Guotai Jun’an Securities, the heat supply business of Luen Mei Quantum, based on its effective coal technology and refined management, shows a sustainable high margin rate. Meanwhile, since the heating regions are highly monopolized, the company’s heat supply area still has growth space. Its digital media business of high-speed railway has grown rapidly with the passenger flow volume of high-speed railway and enjoys a broad space of development. In the future, its business performance is expected to maintain a high growth continuously.