Summary of Longking Environmental Conference Call Company Overview - **Company**: Longking Environmental - **Industry**: Environmental Protection and Green Energy Key Points Industry and Market Dynamics - Longking Environmental benefits from the accelerated development of green electricity projects, with new projects and high electricity prices enhancing profitability, expected to be in a continuous release cycle for the next three years [2][3] - The traditional environmental protection business is stable, contributing approximately 900 million in profit annually, corresponding to over 10 billion in revenue [2][6] - The market demand for flue gas governance in the thermal power sector is growing, with a market size of 15-16 billion annually, driven by new installations and replacement needs [7][9] Core Business Segments - **Traditional Environmental Business**: Focused on air pollution control equipment delivery, waste incineration, and hazardous waste treatment, with a historical revenue exceeding 10 billion [6] - **Green Electricity Projects**: Includes self-generated green electricity projects related to Zijin Mining, with both existing and new projects accelerating investment [4][10] - **Equipment Manufacturing**: Involves the production of new energy mining equipment and energy storage solutions, with significant progress in domestic and international projects [4][16] Financial Performance and Projections - New signed orders for 2024 are projected at 10.1 billion, with a backlog of 18.7 billion, sufficient to support two years of revenue recognition [6] - The overall market size for the flue gas governance industry is estimated at 26-27 billion annually, with thermal power accounting for about 60% and non-thermal sectors about 40% [9] - The company’s green electricity business showed significant growth, with profits nearing 100 million in the first half of the year, contributing about 20% to total profits [10][11] Project Highlights - **Xizang Mami Cuo Photovoltaic Storage Diesel Generator Off-grid Project**: Total investment of 2.391 billion, with expected annual profits exceeding 200 million [12] - **Democratic Republic of the Congo 140 MW Hydropower Project**: Total investment of 399 million USD, with a competitive advantage due to low costs and high selling prices [13][14] Future Growth Opportunities - The company is actively pursuing projects in Tibet and overseas, with a projected renewable energy generation target of 30% by 2030 for Zijin Mining [15] - The company has a growth potential from 1 GW to 7 GW in green electricity capacity [15] Valuation and Market Position - Current valuation is approximately 15-16 times earnings, with expected net profit growth of about 30% year-on-year, reaching 1.4 to 1.5 billion next year [18] - The company benefits from supportive policies for direct consumption of green electricity, enhancing its investment appeal [18] Additional Insights - The company has made significant strides in the energy storage sector, achieving profitability in the first half of the year after previous losses [16] - Longking Environmental is expanding into the mining equipment sector, providing comprehensive solutions that include wind and solar energy applications [17]

Core Viewpoint - The China Electrical Equipment Group Co., Ltd. has announced a centralized procurement project for energy storage battery cells, with a total procurement quantity of 7.365604 million units and an expected capacity of 7248 MWh [2]. Group 1: Procurement Details - The procurement is divided into four lots, with specifications for battery cells including 50Ah, 100Ah, 280Ah, and 314Ah [2][5]. - Lot 1 involves 50Ah lithium iron phosphate battery cells with a total expected capacity of 16 MWh, requiring a minimum annual production capacity of 0.1 GWh [3]. - Lot 2 includes 100Ah lithium iron phosphate battery cells with a total expected capacity of 32 MWh, requiring a minimum annual production capacity of 0.2 GWh [4]. - Lot 3 consists of 314Ah lithium iron phosphate battery cells, divided into four sub-packages with a total expected capacity of 7200 MWh, requiring a minimum annual production capacity of 5 GWh [5]. - Lot 4 encompasses a framework for 50Ah, 100Ah, 280Ah, and 314Ah lithium iron phosphate battery cells [6]. Group 2: Qualification Requirements - Respondents must be legally registered entities in China with the capability to fulfill the project requirements [11]. - Specific qualifications include having a minimum annual production capacity and supply performance records for the respective battery cell types [19]. - Each lot allows only one respondent per brand to participate [19]. Group 3: Procurement Process - The procurement documents can be obtained from the "Electricity Smart Procurement" platform until June 11, 2025 [20]. - The deadline for submitting the initial response documents is July 15, 2025 [23]. - The procurement will be conducted through face-to-face negotiations, with specific requirements for electronic submission of documents [24].