In the evening of April 14, Luen Mei Quantum (600167.SH) announced to sign Agreement with the people's government of Sujiatun District of Shenyang City in respect of investment and construction of a cogeneration project with investment up to 2.1 billion Yuan.

The announcement indicated that the project mainly undertook centralized heat supply of Sujiatun District, Hunnan New District, airport area, Quanyun Village and technological town with universities of Shenyang City. After completion, the project will improve reliability and safety of heat supply and obtain good economic and social benefits. The project had promising market prospects.

Sujiatun District cogeneration project not only was a local star project of the industry, but also further manifested Luen Mei Quantum’s steady growth in clean heat supply of Shenyang.

People concerned told reporter of Securities Daily, the project had promising ROI and was expected to achieve annual revenue above 200 million Yuan after it was put into production. According to initial estimate, IRR of feasibility study was about 10%.

It is worth mentioning that since Luen Mei Quantum resumed work in 2020, “good things have happened again and again” and the Company has released good news more than once.

In March, Luen Mei Quantum unveiled a plan for spin-off listing of subsidiary Zhaoxun Media on GEM (growth enterprise market). Inspired by this message, institutions and investors successively predicted an opportunity to rebuild value of Zhaoxun Media and that the parent company would better gather clean heat users and raise the market value.

In the end of March, the Company announced a plan to invest and run Shanghai National Convention and Exhibition Center Energy Station Project and take this opportunity to further accelerate advancing towards the south clean energy market “warm in winter and cool in summer”.

It is understood that Shanghai National Convention and Exhibition Center is the world’s largest individual building and exhibition complex and is a national-level window of opening-up and investment promotion that continually runs throughout the year. From the point of energy, Shanghai National Convention and Exhibition Center has been hailed as an energy-saving benchmark of the architecture industry and it adopts the world’s advanced natural gas distributed combined cooling heating and power technology for energy supply and utilization to satisfy different energy needs for exhibition, conference, commerce, hotel, office and other business types. Presently, this technology is adopted by venues of only a few developed countries, such as Munich International Convention Center and Makuhari Messe.

Relevant responsible person of Luen Mei Quantum said repeatedly that the Company would expand such clean energy businesses as heat supply, gas supply, cooling and power supply nationwide based on existing stable heat supply business and by virtue of clean technological superiority and industry status.

（source：Securities Daily）