LK(SH:600388) Zhong Guo Jing Ying Bao·2025-04-17 22:37Core Viewpoint - Longking Environmental Protection (龙净环保) reported a decline in revenue and net profit for Q1 2025, primarily due to reduced acceptance and settlement of traditional EPC projects, alongside a significant increase in accounts receivable [2][6]. Financial Performance - In Q1 2025, the company achieved revenue of 1.966 billion yuan, a year-on-year decrease of 13.69%, and a net profit of 185 million yuan, down 6.95% [2][6]. - For the year 2023, revenue was 10.973 billion yuan, a decline of 7.64%, with net profit at 509 million yuan, down 36.74% [4]. - In 2024, revenue was 10.019 billion yuan, a decrease of 8.69%, while net profit increased by 63.15% to 830 million yuan [4]. Accounts Receivable - Accounts receivable have been on the rise, reaching 3.609 billion yuan by the end of Q1 2025, up 5.22% from the end of 2024 [7][8]. - The increase in accounts receivable is attributed to the nature of project revenue recognition and extended payment terms associated with contracts [7][8]. Business Segments - The company’s main business includes air pollution control, energy storage, wind and solar power, water pollution control, carbon capture, hazardous waste disposal, and ecological restoration [3]. - In 2024, the revenue from the environmental equipment manufacturing segment was 8.576 billion yuan, down 12.75%, while the new energy business saw a significant increase of 1072.71% to 430 million yuan [4][5]. Market Conditions - The company faces significant market pressure in traditional environmental protection businesses due to increasing competition and market saturation [5][6]. - Despite the growth in the new energy sector, it has not yet compensated for the decline in traditional business revenues [5].