Nearly 100 Million Yuan Large Order, Longquan Shares Wins Bid for Xiangyang Water Source Replacement Project

From: Shandong Financial Report

Text | Economic Herald Liu Yong

On March 18, Longquan Co., Ltd. (002671.SZ) announced that on March 17, the Hubei Xiangyang Public Resources Trading Electronic Service System published the bid result announcement for the “Urban Water Source Replacement Project Raw Water Main Pipe and Fittings (Second Bid),” confirming the company as the successful bidder with a bid price of 99.4275 million yuan.

Longquan Co., Ltd. stated that the company has made full preparations in terms of funds, personnel, and technology and has the capacity to fulfill the contract. The bid price accounts for approximately 8.67% of the company’s audited operating revenue for 2024. The execution of this project is expected to have a positive impact on the company’s revenue and profit during the supply period.

Public information shows that Longquan Co., Ltd. was established in 2000 with a registered capital of 563 million yuan. It is headquartered in Zibo City, Shandong Province. The legal representative is Fu Bo. The company was listed on the main board of the Shenzhen Stock Exchange in 2012.

According to Longquan Co., Ltd.'s official website, the company is affiliated with Jianhua Holding Group. Its main businesses include the production, sales, and installation of prestressed concrete pipes and other concrete pipelines; research, production, and sales of metal fittings, steel pipes (including 3PE anti-corrosion steel pipes, stainless steel corrugated pipes); full lifecycle management services for underground pipe networks; and research and manufacturing of power station valves. The company has 12 production bases, with a total pipeline production length exceeding 3,600 kilometers.

Previously, Longquan Co., Ltd. issued an announcement titled “Proposal to Recognize Asset Impairment for 2025,” which stated that the company conducted asset inspections and impairment tests according to the “Enterprise Accounting Standards” and relevant regulations. It plans to recognize a total impairment loss of 73.5934 million yuan in 2025, mainly involving accounts receivable, inventories, fixed assets, and goodwill. It also plans to recover 8.2122 million yuan of impairment and write off 8.7169 million yuan. The goodwill impairment provision of 39.4683 million yuan is mainly due to the underperformance of Wuxi Xinfeng Pipe Industry Co., Ltd. This impairment will reduce the net profit attributable to shareholders of the listed company by 52.9611 million yuan in 2025, with final figures subject to audit results.