Fujian Longking Co Ltd – Financial Performance and Strategic Developments (Q3 2025)

Fujian Longking Co., Ltd. (stock code 600388) reported robust growth for the third quarter of 2025, reflecting continued demand for its environmental pollution‑control equipment and a strengthening position in the atmospheric‑pollution‑control sector.

1. Third‑Quarter Results

  • Revenue: The company generated ¥31.75 billion in revenue for the third quarter, an increase of 60.16 % year‑over‑year.
  • Operating Income: Total operating income for the first nine months of 2025 reached ¥78.58 billion, up 18.09 % versus the same period in 2024.
  • Net Profit: Net profit attributable to shareholders rose to ¥3.35 billion in Q3, a 54.99 % increase.
  • Cumulative Net Profit: For the first nine months, cumulative net profit was ¥7.80 billion, a 20.53 % year‑over‑year gain.

These figures are consistent with the company’s overall trend of growing revenue and profitability, as evidenced by the 18.09 % increase in cumulative revenue and 20.53 % increase in cumulative net profit reported on October 18.

2. Drivers of Growth

2.1 New Coal‑Power Projects and Existing Unit Upgrades

  • The company benefited from new coal‑power plant construction projects and the environmental upgrades of existing units.
  • The continued demand for atmospheric‑pollution‑control equipment has reinforced Longking’s leading position in this segment.

2.2 Green‑Energy Business

  • Green‑energy operations contributed nearly ¥1.7 billion in net profit during the reporting period.
  • The company has a sizable project reserve, positioning green‑energy activities as a key growth engine for future earnings.

2.3 Technological Innovation – LVE‑Type Zero‑Leakage Vacuum Heat Pipe

  • A flagship project, the LVE‑type zero‑leakage vacuum heat pipe for the National Energy Group’s Nanning 660 MW unit, was selected as a 2025 “Three‑Modification‑Linked” technical‑upgrade case by the China Power Enterprise Federation.
  • The technology achieved a 50 °C reduction in flue‑gas temperature, a 1.88 g/kW·h reduction in coal consumption, and annual coal savings of nearly 7,000 t, translating into a 1.8 t annual carbon‑emission reduction.

3. Financial Position

  • Two‑Factor Financing: On October 16, the company’s financing‑buy‑in reached ¥21.004 million, while the overall financing balance was ¥311 million, representing 1.60 % of its floating market value—below the 20 % historical 20th‑percentile level.
  • Margin of Safety: The company’s financing balance shows a modest increase of 0.13 % from the previous day and remains well under historical thresholds.

4. Market Context

  • Share Price: As of October 15, the closing price stood at ¥15.25 per share, with a 52‑week high of ¥15.77 (October 8) and a 52‑week low of ¥11.17 (April 8).
  • Market Capitalization: The company’s market cap is ¥19.16 billion.
  • Price‑to‑Earnings Ratio: The P/E stands at 20.98, reflecting investor expectations of continued growth.

The company’s performance in the third quarter of 2025 demonstrates sustained revenue expansion, profitability improvement, and the successful deployment of innovative pollution‑control technologies. These developments reinforce Fujian Longking Co., Ltd.’s leadership role in the environmental equipment sector and position it favorably for future growth in both domestic and international markets.