Core Viewpoint - Longkun Technology reported a stable performance in its 2024 annual report, with total revenue of 1.791 billion yuan, a year-on-year increase of 2.18%, and a net profit attributable to shareholders of 216 million yuan, up 20.51% year-on-year. However, the bioenergy segment faced challenges due to an EU anti-dumping investigation, resulting in a 19.41% decline in revenue from this segment. The company is focusing on technological innovation and market expansion to mitigate these challenges and is accelerating its layout in synthetic biology manufacturing to capture a larger market share in the green economy and health industry [1][4][7]. Group 1: Biomass Resource Recycling Business - Longkun Technology has secured multiple significant projects in the biomass resource recycling sector, including a 25.5023 million yuan project in Beijing and a 1.654 billion yuan project in Tongzhou District, which has a processing capacity of 2,100 tons per day and a concession period of 40 years [4]. - Despite the success in project bidding, the bioenergy business has been impacted by the EU's anti-dumping investigation, which imposed a temporary anti-dumping tax of 23.7%, leading to a 19.41% decline in bioenergy revenue [4][6]. - The management indicated that the profit from the biodiesel business primarily comes from self-produced low-cost raw oil, suggesting that market changes have a limited impact on overall operations [4]. Group 2: Synthetic Biology Manufacturing Business - Longkun Technology is actively developing the human milk oligosaccharides (HMOs) sector, collaborating with institutions like the Hefei Institute of Physical Science to advance products such as LNT and LNnT [5][6]. - The company has made significant progress in product certification and market access, with LNnT receiving approval as a new food additive from the National Health Commission and 2'-FL obtaining Self-GRAS certification from the FDA [6][7]. - The establishment of a 1,000-ton HMO production base is underway, with the first phase expected to begin trial production in the first half of 2025 [6]. Group 3: Profit Model - Longkun Technology's profit model is diversified, comprising biomass resource recycling and synthetic biology manufacturing. The company utilizes BOT and BOO models to charge waste treatment fees and sell biodiesel and green electricity [7]. - In 2024, engineering construction revenue surged by 137.82% to 418 million yuan, while operational service revenue increased by 8.57% to 581 million yuan, indicating stable growth despite the decline in bioenergy revenue [7]. - The synthetic biology manufacturing segment is expected to become a new profit growth point as products gain market access, contributing to a 32.07% year-on-year increase in non-net profit [7].