Gelonghui, May 17 | Langkun Environment (301305.SZ) announced that Guangzhou Langkun Environmental Technology Co., Ltd. (hereinafter referred to as “Guangzhou Langkun”), a holding subsidiary of the company, plans to carry out technical transformation of the biodiesel deep desulfurization system project. The direct investment of the project is about 9.97 million yuan, and the downtime loss is about 1.94 million yuan, totaling about 11.11 million yuan; after the transformation, it is expected to generate profits of about 12.21 million yuan per year for the company.

The estimated cycle of this technical reform is 90 days. The estimated investment cost consists of direct investment and shutdown loss, with a direct investment of 9.97 million yuan, of which: 5.5 million yuan for equipment, 650 million yuan for civil construction, 1.40 million yuan for construction, and 2.42 million yuan for other expenses. The estimated downtime loss is $1.94 million, and the two combined are estimated to be $11.91 million. After technical improvements are completed, the quality of biodiesel will be further improved. According to comprehensive estimates, the cost will increase by about 4.134 million yuan per year after the transformation, the revenue will increase by 16.344 million yuan, and the annual profit is estimated to generate 12.21 million yuan for the company. The project's static payback period is 0.84 years.