On August 30, Luen Mei Quantum (600167. SH), a well-known  comprehensive energy service provider in China, released its semi-annual report of 2022. In the first half of 2022, the Company earned the operating income RMB 1.943 billion, with a year-on-year increase rate of 2.81%, mainly thanks to the continuous growth of the heating area of the Company and the formal operation of Shandong Fulin Thermal Power Project; the net profit attributable to the parent company after deduction of non-recurring profit and loss was about RMB 675 million, with the year-on-year decrease rate of 9.06%, mainly due to the rise in fuel prices. As the coal price drops and stabilizes in 2022, the decline in profit indicators has been narrowed significantly compared with the end of 2021, and the negative factors have further subsided.

The net assets attributable to shareholders of the listed company at the end of the current reporting period increased by 17.27% compared with the end of the previous year, reaching more than RMB 10.2 billion. Cash in hand was RMB 6.72, with a substantial increase over RMB 5.46 billion at the end of Previous year.

 According to the data, the clean heating business patterns of Luen Mei Quantum mainly include heating, power supply, steam supply and engineering construction.

As a comprehensive energy service provider, Luen Mei Quantum emphasized scientific and technological innovation as the driving force, and has been deeply involved in the field of clean heating for many years. It has built a comprehensive energy supply and service system for the coordinated development of various green and low-carbon technologies, such as clean and efficient coal-fired cogeneration, renewable water source heat pump heating, biomass cogeneration, natural gas cogeneration, waste heat recovery and utilization and has actively made layout on the electric energy storage, hydrogen energy and other emerging fields.

Thanks to Multiple New Policies for High-quality Industries, Market Increment was Released to Comprehensive Energy Industry in Acceleration 

As of the end of August, under the national sustainable development strategy and the "dual carbon" goal, various ministries and commissions have successively issued a number of policies to support carbon reduction of traditional energy and efficient use of renewable energy, encourage all walks of life to develop comprehensive energy, promote energy conservation and emission reduction, and help achieve the "dual carbon" goal. Focusing on the development of the comprehensive energy industry chain, the market continues to be hot, the growth momentum remains strong, and the prosperity is enhanced continuously.

The main business of Luan Mei Quantum includes the clean utilization of traditional energy and the efficient utilization of renewable energy, with the clean heating rate reaching 100%. On the one hand, relying on technological innovation, the company's energy consumption, carbon emissions, pollutant emissions and other indicators of clean coal-fired central heating and cogeneration business and natural gas distributed cooling, heating and power cogeneration business have already reached the industry-leading level; on the other hand, the company has accumulated considerable technical advantages in efficient utilization of various renewable energy sources such as sewage source heat pump heating, biomass energy cogeneration, and effectively boosted to achieve the goal of urban energy conservation and emission reduction.

Deepening the Layout of High Prosperity Industries and Building the Core Competitiveness of Comprehensive Energy

Luen Mei Quantum practices the development concept of "Cleanliness, high efficiency, intelligence and low carbon", relies on its own technological advantages and intelligent energy operation experience, combines the goal of better serving thousands of households with the social responsibility of energy enterprises under the dual carbon background, and actively explores the path of carbon reduction and zero carbon energy supply.

In the first half of 2022, Shenyang Guoxin Environmental Protection New Energy Co., Ltd., a subsidiary of Luen Mei Quantum, carried out the construction of flue gas waste heat recovery project, which is expected to be put into operation by the end of this year. It is estimated that about 470000 GJ of heat can be recovered every year, nearly 20000 tons of standard coal can be saved and about 50000 tons of carbon dioxide emissions can be reduced after the completion of the project.

 After Guohui New Energy owned by Luen Mei Quantum expanded reclaimed water source heat pump project of in the 2021-2022 heating season, it can realize the zero carbon heat supply for the building of more than 3 million square meters, providing a valuable demonstration effect for the comprehensive utilization of urban sewage and zero carbon clean heating.

In combination with the current projects of ultra-low emission transformation of heat source, reclaimed water source heat pump heat supply, industrial waste heat utilization and smart energy operation, Luen Mei Quantum is building a new type of energy system covering multiple nodes of source, network and load, realizing multi-energy complementation and demand, supply interaction, which will further strengthen the company's position as a comprehensive energy service provider driven by scientific and technological innovation.

Luen Mei Quantum's main heating business is a long-term stable high-quality asset. By the first half of 2022, the cash in hand of Luen Mei Quantum had reached RMB 6.7 billion, and the balance sheet structure was excellent. Under the “dual carbon” background, the company's sufficient cash and extremely low asset liability ratio can provide sufficient guarantee for the company to find new growth points, which is conducive to the company's future accelerated layout on a variety of renewable energy, hydrogen energy, energy storage and other new energy fields.

In terms of business layout, on the basis of further consolidating central heating in the north, Luen Mei Quantum vigorously expanded its comprehensive energy service business in the middle and lower reaches of the Yangtze River and South China. Relevant reports show that Luen Mei Quantum is still deepening its business innovation and expanding its comprehensive energy services. Meanwhile, it will strive to form a breakthrough in the business direction of hydrogen, heat and power cogeneration and hydrogen distributed power generation, and integrate core technologies and equipment in the upstream and downstream of the industry, especially in key links of clean energy hydrogen production, high-pressure hydrogen storage and fuel cells, so as to build Luen Mei's core competitiveness for hydrogen energy development.