All Business Sectors of Luen Mei Holding Develop Soundly and the Fundamentals Remain Robust

Luen Mei Holding (600167.SH) released the annual report of 2022 and the first quarterly report of 2023 on April 28. In 2022, Luen Mei Holding achieved an operating income of RMB 3.45 billion and a net profit RMB 944 million attributable to shareholders of the listed company.In the first quarter of 2023, Luen Mei Holding achieved an operating income of RMB 1.656 billion and a net profit RMB 689 million attributable to shareholders of the listed company, indicating a stable recovery in its profit level.

Generally, the company's asset structure was further optimized, and the overall trend of stable fundamentals remained unchanged in 2022.The networking area was growing against the trend, and the unfavorable factors affecting the operating income and profit data were basically reduced. The asset structure was optimized continuously, and new businesses such as hydrogen energy and comprehensive energy are developing rapidly.Meanwhile, Luen Mei Holding continuously rewards investors through methods such as large-proportion dividends, demonstrating significant confidence for the long-term value of the enterprise.

Luen Mei Holding is actively engaged in updating and renovation of the urban space, with the growing service area against the trend.Shenyang and other northern regions have expedited the elimination of small and medium-sized boilers and improvement of the energy conservation and emission reduction for existing heating systems, and the market concentration ratio has increased continuously, which is beneficial to regional leading enterprises.Relevant industry insiders have stated that the advantages and smart energy operation capabilities accumulated by Luen Mei Holding in the field of clean energy heating are expected to occupy a greater advantage in the future market share pattern.

The transformation of comprehensive energy strategy is a top priority for the development of Luen Mei Holding's business.Luen Mei Holding focuses on core products of cooling, heating, electricity and steam, and provides customers with clean, efficient, safe, and stable comprehensive energy services combining the digital technology and integrating the latest energy technology and equipment.The company will leverage its advantages in technology and management experience to implement a batch of symbolic comprehensive energy operation projects in 2023.

It is worth mentioning that Luen Mei Holding will focus on implementing the development plan for the hydrogen energy industry, with demonstration projects expected to be implemented, and continuously develop the application of clean and low-carbon technologies in the energy field in 2023. Luen Mei Holding's relevant person in charge stated that the hydrogen energy business unit of the company collaborated with partners to conduct prospective study researches in hydrogen cylinders, SOEC hydrogen production, organic hydrogen storage and hydrogen refueling stations, etc., and conducted a large amount of research and project reserves throughout the entire industry chain in 2022.

According to the annual report disclosure, the company signed a strategic cooperation agreement with Beijing Gas Pinggu Co., Ltd. to carry out in-depth cooperation in distributed comprehensive energy services, hydrogen refueling stations, hydrogen production and hydrogen cogeneration starting from Pinggu District, Beijing.Luen Mei Holding will accelerate the layout and implementation of hydrogen production, storage, utilization, and transportation in 2023, especially in the early stages of hydrogen production and urban hydrogen cogeneration demonstration projects.(Source: China Securities Journal)