Investment Rating - The report maintains a "Buy" rating for Longking Environmental (龙净环保) [1] Core Views - The company reported a 33% increase in non-recurring net profit, with a robust order book in environmental protection and accelerated contributions from new energy [1] - In the first half of 2024, the company achieved revenue of 4.672 billion yuan, a decrease of 5.44% year-on-year, while the net profit attributable to shareholders was 431 million yuan, an increase of 0.8% year-on-year [1] - The company signed new environmental engineering contracts worth 5.527 billion yuan in the first half of 2024, with a total backlog of 19.538 billion yuan, indicating a continuous increase from the end of 2023 [1] Financial Performance - The company’s operating cash flow net amount was 532 million yuan, an increase of 488.85% year-on-year, while the investment cash flow net amount was -1.814 billion yuan, a decrease of 289.3% year-on-year [1] - The company’s total revenue is projected to grow from 10.973 billion yuan in 2023 to 14.312 billion yuan in 2024, representing a year-on-year growth of 30.44% [6] - The net profit attributable to shareholders is expected to increase from 509 million yuan in 2023 to 1.151 billion yuan in 2024, reflecting a growth rate of 126.14% [6] New Energy Development - The company is accelerating the construction and operation of green electricity projects, with significant projects in Tibet and Xinjiang successfully generating power [1] - The first phase of the Tibet Lagao power supply project, which includes 115MW of photovoltaic and 65MW/130MWh of electrochemical energy storage, is operational [1] - The company is also focusing on the green transformation of mining equipment, leveraging opportunities from the transition to electric mining vehicles [1]

Investment Rating - The report maintains a "Buy" rating for Longjing Environmental Protection (600388) with a target price of 16.65 RMB, down from the previous target of 18.10 RMB [3][8] Core Views - Longjing Environmental Protection achieved a 33% YoY growth in non-GAAP net profit in H1 2024, meeting expectations [1] - The company's traditional business has sufficient orders, with a gradually increasing market share [1][8] - The new energy business logic is gradually being realized, with progress in green power and green mining sectors [1][8] Financial Performance - H1 2024 revenue reached 4.672 billion RMB, a 5% YoY decline, while non-GAAP net profit grew 33% to 391 million RMB [8] - Gross margin improved by 0.21 percentage points to 23.46%, and net profit margin increased by 0.62 percentage points to 9.25% [8] - Operating cash flow surged 489% YoY to 532 million RMB [8] Business Operations - New environmental engineering contracts in H1 2024 totaled 5.527 billion RMB, with 57% from power industry and 43% from non-power sectors [8] - The company secured large-scale ultra-low emission projects for new coal-fired power units, enhancing domestic market share [8] - International expansion continued with new orders in Thailand, Vietnam, and Philippines [8] New Energy Development - The first phase of Tibet Laguo power supply project and Xinjiang Wucha 300MW photovoltaic project successfully started power generation [8] - The company launched green mining equipment solutions, focusing on electrification opportunities in mining equipment [8] - Energy storage business is progressing, with 1.499 billion RMB in system and equipment sales contracts [8] Financial Forecasts - 2024-2026 net profit forecasts adjusted to 1.204 billion, 1.524 billion, and 1.934 billion RMB respectively [8] - EPS for 2024-2026 projected at 1.11, 1.41, and 1.79 RMB [8] - 2024 PE ratio estimated at 15x, PB ratio at 2.1x [8] Market Performance - Current stock price at 11.10 RMB, with a 52-week range of 10.13-16.30 RMB [4] - Market capitalization stands at 12 billion RMB [4] - Stock performance shows -2% in 1 month, -6% in 3 months, and -30% in 12 months [7] Valuation Comparison - Comparable companies show 2024 average PE of 11.1x and median of 9.7x [11] - Longjing's 2024 PB valuation of 2.1x is higher than industry average of 1.1x and median of 1.3x [8][11]

Financial Performance - The company's operating revenue for the first half of 2024 was ¥4,672,123,317.62, a decrease of 5.44% compared to ¥4,941,012,911.12 in the same period last year[13]. - The net profit attributable to shareholders of the listed company was ¥431,351,514.48, showing a slight increase of 0.80% from ¥427,920,356.66 in the previous year[13]. - The net profit after deducting non-recurring gains and losses was ¥390,546,048.04, representing a significant increase of 32.66% from ¥294,403,167.88 in the same period last year[13]. - The net cash flow from operating activities reached ¥531,726,095.47, a substantial increase of 488.85% compared to ¥90,298,830.32 in the previous year[13]. - The total assets at the end of the reporting period were ¥25,120,752,371.43, a slight decrease of 0.70% from ¥25,297,488,964.28 at the end of the previous year[13]. - The net assets attributable to shareholders of the listed company increased by 2.41% to ¥7,932,619,736.28 from ¥7,746,009,200.60 at the end of the previous year[13]. - Basic earnings per share remained stable at ¥0.40, unchanged from the same period last year[14]. - The diluted earnings per share also remained at ¥0.36, consistent with the previous year[14]. - The weighted average return on net assets was 5.45%, a decrease of 0.16 percentage points from 5.61% in the previous year[15]. - The company reported a significant increase in the weighted average return on net assets after deducting non-recurring gains and losses, rising to 4.94% from 3.86% in the previous year, an increase of 1.08 percentage points[15]. Environmental Initiatives - The coal-fired power sector is expected to reduce carbon emissions by approximately 20% by 2025 compared to 2023 levels, with a target of 50% reduction by 2027[19]. - The steel industry has seen a 60% reduction in pollutant emissions, with 43% of crude steel capacity undergoing full-process transformation[20]. - Wind and solar power installations continue to grow rapidly, with the company focusing on project operations and new project expansions[22]. - The energy storage market is evolving quickly, with the company enhancing its operational efficiency and product quality while exploring partnerships[23]. - The company emphasizes technological innovation and has intensified R&D efforts in environmental protection and new energy sectors[24]. - The company is actively pursuing high-quality orders in the steel sector and is preparing for potential projects in the coking and cement industries[21]. - The company reported a non-recurring profit of 40,805,466.44 RMB for the period, primarily from government subsidies and asset disposals[16]. Market Development and Strategy - Cash flow management has been strengthened, leading to positive outcomes in operational efficiency[25]. - The company is committed to proactive market development, conducting comprehensive analyses to seize market opportunities[26]. - A specialized marketing meeting was held to enhance the company's market attack capabilities and ensure sustainable contract growth[27]. - The company secured new environmental engineering contracts totaling 5.527 billion RMB in the first half of 2024, with the power industry accounting for 56.79% of the new contracts[30]. - The company is actively expanding its international market presence, particularly in Southeast Asia, securing dust removal and desulfurization projects in Thailand, Vietnam, and the Philippines[31]. Financial Management and Investments - Long-term borrowings increased by 72.87% to approximately 2.57 billion RMB, attributed to new loans from financial institutions[36]. - The company reported a 61.05% decrease in employee compensation liabilities, primarily due to the payment of last year's year-end bonuses[36]. - The total investment for the adjusted project in Tibet is approximately 600 million RMB, down from 2.8 billion RMB, with a revised capacity of 115MW solar and 65MW/130MWh energy storage[39]. - The company achieved a production capacity of 1.2 million high-quality rollers annually, meeting current and future market demands[88]. - The company invested RMB 550 million in principal-protected financial products, with an expected annual yield of 2.35% for a term from April 19, 2024, to April 19, 2027[91]. Environmental Compliance and Monitoring - The company is classified as a key pollutant discharge unit by environmental protection authorities[48]. - The company has a total nitrogen control index of 242.67 tons per annum[50]. - The company has a total sulfur dioxide control index of 95.546 tons per annum[49]. - The company has a total nitrogen oxides control index of 204.739 tons per annum[48]. - The company has a total particulate matter control index of 29.219 tons per annum[48]. - The company has a total ammonia nitrogen control index of 1.062 tons per annum[48]. - The company has a total chemical oxygen demand control index of 10.623 tons per annum[48]. - The company has completed the election of the chairman of the board and the chairman of the supervisory board[45]. - The company has an environmental impact assessment approval document, indicating adherence to regulatory standards[52]. - The company has established a total of 48 monitoring points for unorganized emissions[67]. Shareholder and Governance Matters - The company committed to distributing at least 30% of the average annual distributable profits over the next three years, based on the current profitability and cash flow situation[78]. - The company has ensured that there are no direct or indirect competitive businesses with its controlling shareholder, thus protecting the interests of minority shareholders[78]. - The total amount of guarantees provided by the company during the reporting period, excluding guarantees for subsidiaries, was 11,000,000 RMB[81]. - The company has maintained a good integrity status during the reporting period, with no significant legal or regulatory issues reported[79]. - The company has adhered to the disclosure requirements for related party transactions, with actual transactions not exceeding the estimated amounts[79]. Accounting and Financial Reporting - The company prepares consolidated financial statements based on its own and subsidiaries' financial reports, reflecting the overall financial position, operating results, and cash flows of the group[150]. - The company recognizes long-term equity investments formed by business combinations at the book value of the owner's equity of the acquired entity on the merger date[188]. - The company measures identifiable assets and liabilities of the acquired entity at fair value on the acquisition date, with goodwill recognized if the acquisition cost exceeds the fair value of net identifiable assets[146]. - The company recognizes investment income based on its share of the net profit or loss of the investee, adjusting the carrying amount of the investment accordingly[190]. - The company utilizes the equity method for accounting for joint ventures, reflecting its rights to the net assets of the joint arrangements[156].

福建龙净环保股份有限公司 募集资金存放与实际使用情况的专项报告 募集资金存放与实际使用情况的专项报告 根据上海证券交易所《上海证券交易所上市公司自律监管指引第 1 号——规 范运作》和《上海证券交易所上市公司自律监管指南第 1 号——公告格式》的规 定，将福建龙净环保股份有限公司（以下简称本公司或公司）2024 年半年度募 集资金存放与使用情况报告如下： 本公司已制定《福建龙净环保股份有限公司募集资金管理制度》，对募集资 金的存放及使用等事项做出了明确规定，公司严格按照《募集资金使用管理制度》 的规定管理和使用募集资金。 福建龙净环保股份有限公司 一、募集资金基本情况 经中国证券监督管理委员会《关于核准福建龙净环保股份有限公司公开发行 可转换公司债券的批复》（证监许可[2020]113 号）核准，本公司于 2020 年 3 月 向社会公开发行面值总额人民币 200,000.00 万元可转换公司债券，根据有关规定 扣除发行费用后，实际募集资金金额为 197,958.23 万元。该募集资金已于 2020 年 3 月 30 日到账。上述资金到账情况业经容诚会计师事务所（特殊普通合伙） 容诚验字[2020]361Z0 ...

证券代码：600388 证券简称：龙净环保 公告编号：2024-081 转债代码：110068 转债简称：龙净转债 具体内容详见公司于同日在《中国证券报》和上海证券交易所网站 www.sse.com.cn 所披露的内容。 二、审议：《2024 年半年度募集资金存放与使用情况的专项报告》 福建龙净环保股份有限公司 第十届董事会第七次会议决议公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 福建龙净环保股份有限公司（以下简称"公司"）第十届董事会第七次会议于 2024年8月22日在公司龙岩总部及厦门分部以现场结合视频通讯的方式召开。会 议由董事长林泓富先生主持。会议应参加董事11人，实际参加董事11人，监事列 席会议。会议召开程序符合《公司法》《公司章程》等规定。经审议，通过以下 议案： 一、审议：《2024 年半年度报告》及其摘要 表决结果：11 票赞成，0 票反对，0 票弃权。 第十届董事会审计委员会 2024 年第四次会议审议通过该议案。 表决结果：11 票赞成，0 票反对，0 票弃权。 公司 2024 年半年度募集资金 ...

转债代码：110068 转债简称：龙净转债 证券代码：600388 证券简称：龙净环保 公告编号：2024-082 公司 2024 年半年度报告及其摘要的编制和审议程序符合法律、法规、公司 章程和公司内部管理制度的各项规定，所包含的信息能从各方面真实地反映公司 2024 年半年度的财务状况及经营成果等事项。 监事会在提出本意见前，没有发现参与 2024 年半年度报告及其摘要编制和 审议的人员有违反保密规定的行为。 公司 2024 年半年度报告所披露的信息真实、准确、完整，承诺其不存在虚 假记载、误导性陈述或重大遗漏。 福建龙净环保股份有限公司 第十届监事会第五次会议决议公告 本公司监事会及全体监事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 福建龙净环保股份有限公司（以下简称"公司"）第十届监事会第五次会议 于 2024 年 8 月 22 日在龙岩总部以现场结合视频通讯的方式召开。会议由监事会 主席廖伯寿先生主持。会议应参加监事 3 人，实际参加监事 3 人。会议召开程序 符合《公司法》《公司章程》等规定。会议审议以下议案： 一、 审议：《202 ...

| 证券代码：600388 | 证券简称：龙净环保 | 公告编号：2024-080 | | --- | --- | --- | | 债券代码：110068 | 债券简称：龙净转债 | | 福建龙净环保股份有限公司 关于"龙净转债"可选择回售的第三次提示性公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 风险提示：投资者选择回售等同于以100.73元/张（含当期利息）卖出持有 的"龙净转债"。截至目前，"龙净转债"的收盘价格高于本次回售价格，投资 者选择回售可能会带来损失，敬请投资者注意风险。 福建龙净环保股份有限公司（以下简称"公司"）于2020年3月24日公开发 行面值总额人民币200,000.00万元可转换公司债券（债券简称：龙净转债，债券 代码：110068），扣除发行费用等相关费用后，实际募集资金净额为人民币 197,958.23万元。根据公司实际经营情况，为提高募集资金使用效率，增强公司 营运能力，公司于2024年8月12日召开2024年第三次临时股东大会、"龙净转债" 2024年第一次债券持有人 ...

| 证券代码：600388 | 证券简称：龙净环保 | 公告编号：2024-079 | | --- | --- | --- | | 债券代码：110068 | 债券简称：龙净转债 | | 福建龙净环保股份有限公司 关于"龙净转债"可选择回售的第二次提示性公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 一、回售条款及价格 （一）附加回售条款 重要内容提示： 风险提示：投资者选择回售等同于以100.73元/张（含当期利息）卖出持有 的"龙净转债"。截至目前，"龙净转债"的收盘价格高于本次回售价格，投资 者选择回售可能会带来损失，敬请投资者注意风险。 福建龙净环保股份有限公司（以下简称"公司"）于2020年3月24日公开发 行面值总额人民币200,000.00万元可转换公司债券（债券简称：龙净转债，债券 代码：110068），扣除发行费用等相关费用后，实际募集资金净额为人民币 197,958.23万元。根据公司实际经营情况，为提高募集资金使用效率，增强公司 营运能力，公司于2024年8月12日召开2024年第三次临时股东大会、 ...

| 证券代码：600388 | 证券简称：龙净环保 | 公告编号：2024-078 | | --- | --- | --- | | 债券代码：110068 | 债券简称：龙净转债 | | 福建龙净环保股份有限公司 关于"龙净转债"可选择回售的第一次提示性公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 风险提示：投资者选择回售等同于以100.73元/张（含当期利息）卖出持有 的"龙净转债"。截至目前，"龙净转债"的收盘价格高于本次回售价格，投资 者选择回售可能会带来损失，敬请投资者注意风险。 福建龙净环保股份有限公司（以下简称"公司"）于2020年3月24日公开发 行面值总额人民币200,000.00万元可转换公司债券（债券简称：龙净转债，债券 代码：110068），扣除发行费用等相关费用后，实际募集资金净额为人民币 197,958.23万元。 根据公司实际经营情况，为提高募集资金使用效率，增强公司营运能力，公 司于2024年8月12日召开2024年第三次临时股东大会、"龙净转债"2024年第一 次债券持有 ...

"龙净转债"2024 年第一次债券持有人会议 福建龙净环保股份有限公司 "龙净转债"2024 年第一次债券持有人会议 法 律 意 见 书 地址：福建省龙岩市新罗区龙岩商务运营中心青年创业大厦 18 楼 邮政编码：364000 网址：http://www.fjlihan.com 电话：13959006999 传真：0597-2328998 转 805 电子邮箱:hayeke146100@163.com 1 "龙净转债"2024 年第一次债券持有人会议 关于福建龙净环保股份有限公司 "龙净转债"2024 年第一次债券持有人会议的 法律意见书 致：福建龙净环保股份有限公司 福建力涵律师事务所(以下简称"本所")接受福建龙净环保股份有限 公司（下称"公司"）的委托，指派吴烈豪、蔡志评律师对"龙净转债"2024 年第一次债券持有人会议（下称"本次会议"）进行见证。现依据《中华 人民共和国公司法》《中华人民共和国证券法》《可转换公司债券管理 办法》《上海证券交易所股票上市规则》《上市公司监管指引第 2 号—— 上市公司募集资金管理和使用的监管要求（2022 年修订）》（中国证监 会公告[2022]15 号）等中国现行法律 ...