Luenmei Quantum subsidiary halts production amid mounting losses

Shandong Heze Fulin Thermal Power Technology Co., Ltd. (Fulin Thermal Power), a subsidiary of Luenmei Quantum, where the parent company holds a 66% stake, recently suspended production. This decision was made to stem continuous losses attributed to an economic slowdown and decreased demand from local industrial steam customers. Fulin Thermal Power, whose primary product is industrial steam, will assess market conditions before deciding on a potential resumption of operations.

In 2024, Fulin Thermal Power reported a net loss of -CNY 109,448,721.65 from a revenue of CNY 41,821,667.56. For the first nine months of 2025, the subsidiary recorded a net loss of -CNY 20,374,922.77 on revenues of CNY 17,368,588.41. As of September 30, 2025, Fulin Thermal Power had negative net assets of -CNY 60,123,485.63.

The suspension is expected to reduce the subsidiary's impact on Luenmei Quantum's overall performance and benefit shareholders. Luenmei Quantum will continue to monitor the situation, exploring cooperation opportunities and ways to maximize the value of Fulin Thermal Power's assets to minimize the effects of the shutdown.