Fujian Longking Co., Ltd.: history, ownership, mission, how it works & makes money

From its founding in 1971 to becoming the first company in its sector listed on the Shanghai Stock Exchange under ticker 600388 in December 2000, Fujian Longking has grown into a diversified environmental and new‑energy group: by 2016 it recorded annual sales exceeding $1.2 billion and employed over 6,000 staff across manufacturing bases and R&D centers in cities including Shanghai, Xi'an, Wuhan, Tianjin, Zhangjiagang, Suqian, Yancheng, Urumchi and Xiamen, supplying electrostatic precipitators, bag filters, desulfurization/denitrification systems and comprehensive air, water and waste solutions to power, metallurgy, building materials and chemical sectors in China and more than 40 overseas markets; corporate strategy centers on the mission "clean the sky, benefit human" and a dual focus on Environmental Protection and New Energy (energy storage, wind and solar) while ownership shifts - notably Zijin Mining's October 24, 2025 plan to subscribe up to 167,926,112 A shares that could lift its holding to ~33.76% - signal deeper strategic ties; and as of December 17, 2025 Longking's market capitalization stood at 20.38 billion CNY with trailing twelve‑month revenue of 11.22 billion CNY and net income of 963.34 million CNY, trading at a trailing P/E of 20.58 and forward P/E of 15.78, underscoring its financial footprint as it integrates pollution control technologies with new energy projects to generate equipment sales and project service revenue worldwide

Fujian Longking Co., Ltd. (600388.SS): Intro

• Founded: 1971
• Shanghai Stock Exchange listing: December 2000 (600388.SS)
• 2016 annual sales: > USD 1.2 billion
• 2016 headcount: > 6,000 employees
• International reach: products used in 40+ countries and regions

• Publicly listed company with equity traded under 600388.SS.
• Shareholder base comprises institutional investors, retail investors and corporate stakeholders (typical for listed Chinese industrial firms).
• Governance includes a listed-company board structure with management teams overseeing operations, R&D and international projects.

• Primary mission: reduce industrial air pollution and provide advanced environmental control solutions across heavy industry and power generation.
• Strategic priorities: technology innovation through in-house R&D and licensed/introduced technologies; geographic expansion; vertical integration of engineering, manufacturing and after-sales services.

• Design and manufacture air-pollution control equipment (e.g., baghouse filters, dust collectors, flue gas desulfurization and denitrification systems).
• Provide engineering, procurement and construction (EPC) services for large industrial and power-plant projects.
• Deliver aftermarket services: spare parts, filter media, maintenance and performance upgrades.
• Operate R&D centers to adapt and integrate imported technologies from the USA, Germany, Japan and Switzerland into Chinese industrial applications.

• Equipment sales: one-time revenues from sale of filtration and emissions-control hardware to power plants, metallurgy, building materials and chemical companies.
• EPC contracts: multi-year, large-ticket project revenues for design and construction of pollution-control systems.
• After-sales and consumables: recurring revenues from replacement filter bags, filter media, maintenance contracts and technical services.
• Technology and licensing: revenues from proprietary designs and licensed solutions adapted from international partners.

• Key industries served: electric power generation, metallurgy, building materials (cement), chemicals, and other heavy industries.
• Domestic presence: manufacturing and R&D facilities across major Chinese industrial centers (listed above).
• International reach: products and projects delivered to more than 40 foreign countries and regions, supporting cross-border EPC and equipment exports.

Fujian Longking Co., Ltd. (600388.SS): History

• Founded: 1998
• Primary sectors: air pollution control, industrial ventilation, environmental engineering
• Key technologies: baghouse filters, SCR, FGD, dust collectors, system integration

• Major strategic investor: Zijin Mining Group Co., Ltd. (and wholly owned subsidiaries)
• As of Sep 30, 2025: Zijin and subsidiaries held 317,511,529 shares (25.0%).
• Jan 2025 acquisition: +15.8388 million shares, stake reached 24.6% at that time.
• Oct 24, 2025 announcement: Zijin intends to fully subscribe to a private placement of up to 167,926,112 A shares, which would raise total holdings to 485,437,641 shares (~33.76% of share capital) if completed.

• Mission: deliver large-scale, high-efficiency pollution control solutions to decarbonize and reduce particulate and NOx emissions across heavy industries.
• Strategic focus: R&D in filtration and catalyst technologies, integration of digital monitoring, and expansion into waste-to-energy and municipal environmental projects.
• Synergy with Zijin Mining: access to mining-sector clients, capital support, and potential cross-selling into metallurgical and resource-extraction projects.

• Revenue streams:
  • Equipment sales - baghouses, SCR/FGD units, dust collectors (project-based, single large-ticket sales).
  • Engineering, procurement & construction (EPC) contracts - turnkey installations for power, cement, steel, and waste incineration plants.
  • After-sales services - spare parts, filter media, maintenance contracts, and long-term performance guarantees.
• Business model drivers:
  • Large project contracting cycles: multi-year EPC projects with upfront equipment revenue and follow-on service income.
  • Regulatory demand: tightening emission standards drive retrofit and new-build spending.
  • Scale and IP: proprietary filter media and catalyst formulations improve margins and recurring consumable sales.
• Financial dynamics:
  • High upfront working-capital needs for equipment manufacturing and project execution.
  • Gross margin profile: equipment and EPC margins typically higher on proprietary tech; service margins stable and recurring.

• Strategic intent: Zijin's incremental purchases in Jan 2025 (+15.8388M shares) and proposed Oct 2025 private placement (167.926M shares) signal a push to strengthen influence in environmental technology supporting extractive industries.
• Potential outcomes:
  • Enhanced collaboration on metallurgical and mining-plant emission controls.
  • Improved access to capital and larger integrated projects via Zijin's balance sheet and customer network.
  • Concentration risk: Zijin potentially holding ~33.76% could change governance dynamics and strategic priorities.

Fujian Longking Co., Ltd. (600388.SS): Ownership Structure

• Mission: 'Clean the sky, benefit human' - focus on air & water pollution control, waste treatment, ecological restoration and new-energy integration.
• Strategic focus: 'Dual growth drivers' - leveraging environmental protection technologies and new energy initiatives (e.g., hydrogen, energy storage) for growth.
• Values: Technological innovation, environmental stewardship, social responsibility.
• Policy alignment: Supports national emissions-reduction and clean-energy objectives (China's 'dual carbon' goals).

• How it makes money: equipment manufacturing (pollution-control systems), engineering procurement & construction (EPC) contracts, O&M and environmental services, waste treatment fees, and emerging new-energy product sales and services.
• Revenue drivers: large-scale utility & industrial retrofit projects, long-term O&M contracts, expansion into municipal waste and new-energy markets.
• Capital deployment: R&D and factory capacity for specialized equipment, M&A to expand waste-treatment and new-energy footprints, working capital to execute EPC projects.

Fujian Longking Co., Ltd. (600388.SS): Mission and Values

• Environmental Protection: air pollution control (fabric filters, electrostatic precipitators, denitrification SCR systems), water pollution control (treatment modules, membrane systems), solid & hazardous waste disposal (thermal and non‑thermal treatment), and ecological restoration.
• New Energy: energy storage systems (ESS), wind power generation components and services, and solar power EPC and balance‑of‑system solutions.

• Engineering, procurement & construction (EPC) projects: Longking designs and delivers turnkey environmental and renewable energy plants for utilities, industrial clients, and municipal customers - revenue from EPC contracts is recognized over project cycles.
• Product sales and after‑sales: manufacturing and selling filtration equipment, SCR catalysts, energy storage modules and providing long‑term maintenance, spare parts and performance guarantees.
• O&M and services: recurring revenue from operation & maintenance contracts for pollution control systems and energy storage/wind/solar installations.
• R&D and technology licensing: monetization of proprietary control systems, filtration media and battery management systems through licensing and system upgrades.

• Manufacturing bases and major R&D centers are located across China to support scale and regional project delivery, including Fujian province (Fuzhou, Xiamen, Zhangzhou), as well as northern and central hubs for logistics and aftermarket support.
• R&D focuses on high‑efficiency particulate capture, low‑NOx denitrification, advanced battery management, and system integration for hybrid renewable deployments.
• Integration of environmental protection with new energy enables bundled solutions (e.g., power plant emission controls combined with onsite energy storage and renewables) that improve client economics and reduce lifecycle emissions.

• Electric power (thermal power plants, co‑generation)
• Metallurgy and mining
• Building materials and cement
• Petrochemical and chemical processing
• Municipal solid waste and wastewater treatment authorities

• Regulatory demand: strict air and water emission standards in China drive long‑term replacement and retrofit cycles for industrial clients.
• Energy transition: growing deployment of ESS, wind and solar creates cross‑sell opportunities for integrated environmental compliance and energy management.
• Scale and vertical integration: in‑house manufacturing plus EPC/O&M capabilities improve margin capture and project delivery speed.
• Technology advances: investments in battery management, catalysts and filtration media reduce client lifecycle costs and create differentiation.

• Coal‑fired power plant flue gas treatment: equipment sale + EPC + multi‑year O&M contracts; revenue recognized over construction and service terms.
• Large industrial energy storage park: module sales + BMS (battery management system) licenses + performance service fees.
• Municipal hazardous waste thermal treatment: turnkey plant contracts with milestone billing and long‑term service agreements.

• Longking's strategy emphasizes decarbonization and pollution control simultaneously - enabling customers to meet emissions targets while integrating renewables and storage.
• Investors can review the company's stated guiding principles and targets here: Mission Statement, Vision, & Core Values (2026) of Fujian Longking Co., Ltd.

Fujian Longking Co., Ltd. (600388.SS): How It Works

• Core product sales: electrostatic precipitators, bag filters, flue gas desulfurization (FGD) and denitrification (SCR/SNCR) systems, and industrial dust collectors sold to power plants, cement, metallurgy and chemical plants.
• Engineering, procurement and construction (EPC) and project contracting: turnkey air and water pollution control projects, waste disposal and ecological restoration projects billed on contract milestones.
• After-sales and O&M services: long-term maintenance, spare parts, filter media replacement and performance guarantees.
• New Energy projects: energy storage systems (BESS), development and operation of wind and solar farms, and integrated energy solutions producing recurring power sales and service fees.
• Technology licensing and system integration: revenue from digital monitoring, emissions control software and integrated environmental-management platforms.

• Project-based billing: Large EPC contracts are recognized over time under percentage-of-completion accounting, producing lump-sum inflows tied to milestones.
• Product margins: Standardized equipment (bag filters, precipitators) yield higher gross margins than bespoke EPC projects; aftermarket consumables (filter bags, catalyst) provide recurring, high-margin revenue.
• Service contracts: Multi-year O&M contracts stabilize cash flow and improve lifetime customer value.
• New energy cash flows: Power sales from wind/solar and capacity/ancillary service revenue from energy storage add recurring revenue and help diversify away from one-time project revenues.
• Export and cross-border projects: International projects expand addressable market and can carry higher per-unit pricing in some markets.

• Gross margin: Equipment sales typically mid-to-high teens; EPC margins lower but can be elevated for complex, value-added engineering.
• Service margin: Higher-margin, recurring revenue from parts and O&M, often boosting consolidated profitability over time.
• New Energy returns: Project IRRs depend on feed-in tariffs/market prices and capacity payments for storage; contributes to longer-term recurring cash flows once operational.

• Working capital intensive: Large project receivables and inventory for turnkey contracts create cyclical cash conversion requirements; bridging via project financing, advance payments and banking facilities.
• CapEx: Investment in manufacturing capacity, R&D for emissions control and capital deployment into wind/solar and BESS projects-partially funded through project-level financing and equity.

• Cross-selling: Bundling equipment with EPC and long-term O&M increases lifetime customer revenue.
• Product-to-project pipeline: Equipment orders feed into EPC pipelines; successful project delivery drives repeat orders and export opportunities.
• Green transition leverage: Industrial electrification and stricter emission standards sustain demand; new energy projects create platform for recurring power and ancillary service sales.

Fujian Longking Co., Ltd. (600388.SS): How It Makes Money

• Core product sales: industrial dust collectors, baghouse filters, and electrostatic precipitators (largest single revenue source).
• Project & EPC services: turnkey installations and system integrations for heavy industry and power plants.
• New energy segment: wind-turbine auxiliary systems, solar plant balance-of-system components, and related aftermarket services (growing share).
• Maintenance & aftermarket: spare parts, filter replacements, servicing contracts that provide recurring revenue and higher margins.

• Expansion into wind and solar equipment positions the company to capture increasing demand for sustainable energy solutions domestically and abroad.
• Investment and stake increases by partners such as Zijin Mining Group strengthen capital backing, industry access and potential cross-sector projects.
• Ongoing R&D and sustainability initiatives align product roadmap with tightening environmental regulation and global decarbonization trends.