Breaking Down Long Yuan Construction Group Co., Ltd. Financial Health: Key Insights for Investors

Long Yuan Construction Group Co., Ltd. (600491.SS) stands as a multifaceted builder of modern China-specializing in housing construction, municipal works, mechanical and electrical installation, foundation engineering, architectural decoration and garden and ancient architecture-backed by special-grade qualifications in housing contracting and multiple first-grade qualifications across engineering sectors; the Shanghai-headquartered firm, with operations nationwide, has earned more than 300 high-quality project awards including the Luban and Baiyulan distinctions, maintains ISO certifications for quality, safety and environmental management, and, as of November 2025, holds an enterprise value of approximately 23.91 billion RMB, all while articulating a mission of customer-focused quality, safety-first culture, integrity and sustainability and a vision to lead the industry through innovation, technological adoption and expanded domestic and international presence.

Long Yuan Construction Group Co., Ltd. (600491.SS) - Intro

• Long Yuan Construction Group Co., Ltd. (600491.SS) is a leading Chinese construction enterprise focused on housing construction, municipal public works, mechanical and electrical installation, foundation engineering, architectural decoration, and garden & ancient architectural engineering.
• Holds special-grade qualification for general contracting in housing construction and first-grade qualifications across multiple engineering disciplines, demonstrating end-to-end project capabilities.
• Recognized with more than 300 high-quality project awards, including national-level honors such as the Luban Award and prominent regional awards like the Baiyulan Award.
• Certified to ISO quality, safety, and environmental management systems, aligning operations with international standards.
• Headquartered in Shanghai with a nationwide project footprint and strategically placed offices to support rapid deployment and client responsiveness.

• Deliver safe, durable, and sustainable built environments that enhance community living and urban resilience.
• Create long-term value for stakeholders through disciplined project execution, technical excellence, and responsible corporate governance.
• Promote innovation in construction methods and digitalization to raise industry standards while preserving cultural heritage in restoration projects.

• Become a benchmark enterprise in China's construction sector for integrated solutions spanning residential, municipal, and heritage projects.
• Lead in green construction and smart-city infrastructure, achieving measurable reductions in carbon intensity across projects.
• Expand enterprise value and market influence while maintaining top-tier safety and quality records.

• Safety First - uncompromising adherence to safety management systems and continuous training.
• Quality Excellence - pursuit of workmanship that earns awards such as Luban and Baiyulan.
• Integrity & Compliance - transparent governance, ISO-compliant management, and regulatory adherence.
• Client-Centricity - timely delivery, cost discipline, and responsive project aftercare.
• Innovation & Sustainability - adoption of low-carbon materials, digital construction, and heritage-sensitive techniques.

• Strengthen core contracting capabilities and expand higher-margin mechanical & electrical and specialized foundation works.
• Scale up green construction practices and certifications to capture public-sector green procurement.
• Optimize balance sheet via disciplined working-capital management and selective bidding aligned with risk-return targets.
• Enhance talent pipelines and technical R&D to reduce project cycle times and improve margin consistency.

• Contract margin by project type (housing vs municipal vs M&E).
• Safety incidence rate (TRIR / LTIR targets).
• Order backlog turnover and average contract bid win rate.
• Carbon intensity per m2 and percentage of projects meeting green certification.

Long Yuan Construction Group Co., Ltd. (600491.SS) - Overview

• Mission Statement: Deliver high‑quality construction services with strict adherence to industry standards, continuous innovation, safety-first operations, transparent business conduct and sustainable practices to support urban infrastructure modernization.
• Vision: Become a trusted national leader in construction and urban infrastructure, recognized for execution excellence, technological adoption and measurable contributions to low‑carbon, resilient cities.
• Core Values: Quality, Safety, Integrity, Innovation, Sustainability, Customer‑centricity.

• Quality and Customer Satisfaction: Targeted client satisfaction score ≥90%; internal quality audit pass rate 98% (2023 actual audit pass rate: 96%).
• Innovation & Efficiency: Adopting prefabrication and BIM to reduce on‑site man‑hours by target 15% over three years; pilot projects reduced construction cycle times by 12% in 2023.
• Safety & Well‑being: Safety management system certified to GB/T/OHS standards; mandatory safety training completion rate 100% for on‑site personnel in 2023.
• Integrity & Governance: SOE‑compliant governance framework with external audit and annual transparency disclosures; receivables turnover improved from 75 days (2022) to 62 days (2023).
• Sustainability: Increasing use of low‑carbon materials and waste recycling; 2023 achieved 54% construction waste diversion at major sites.

• Increase revenue to ¥5.5B by 2026 while improving net margin to ≥5% via higher‑margin infrastructure and O&M contracts.
• Reduce carbon intensity by 25% (vs 2021) by 2030 through materials optimization, energy efficiency and electrification of equipment.
• Achieve LTIFR <0.10 and zero fatality target across all projects annually.
• Raise R&D & digitalization investment to 2% of revenue by 2026 to scale prefabrication and digital project delivery.

Long Yuan Construction Group Co., Ltd. (600491.SS) - Mission Statement

• Deliver high-quality construction projects on time and on budget while maintaining industry-leading safety performance.
• Adopt and integrate advanced construction technologies (BIM, prefabrication, digital project controls) to improve productivity and reduce emissions.
• Expand market presence across key domestic regions and selected international markets through strategic partnerships and project excellence.
• Foster long-term client relationships and stakeholder trust by emphasizing transparency, quality assurance, and social responsibility.
• Invest in employee development and safety culture to sustain a high-performance workforce.

• Industry leadership: benchmark quality, safety, and sustainable design in major urban projects.
• Technology integration: standardize digital workflows and prefabrication across major project lines to reduce cycle times and waste.
• Global footprint: grow selective international project participation and cross-border partnerships.
• Shared value: build long-term relationships with clients, partners, suppliers, and communities.
• Urban sustainability: prioritize low-carbon construction, energy-efficient buildings, and resilient infrastructure.

• Integrity - transparent governance, compliance with regulatory and market standards.
• Safety - zero-harm mindset across construction sites and supply chains.
• Quality - workmanship and materials that meet or exceed contractual requirements.
• Innovation - continuous improvement through technology adoption and process optimization.
• Sustainability - minimizing environmental impact and promoting social value in projects.
• Collaboration - partnering with clients, designers, and suppliers for mutual success.

• Scale prefabrication and modular construction to achieve time and cost reductions of 10-20% on repeat housing and institutional projects.
• Digitalization: roll out company-wide BIM and project controls to cover 100% of large-scale projects within 24 months.
• Carbon reduction: target measurable reductions in construction emissions via material substitution and logistics optimization.
• Market diversification: increase non-domestic revenue share through selective JV and EPC bids.

Long Yuan Construction Group Co., Ltd. (600491.SS) - Vision Statement

• Integrity: honesty and ethical conduct across procurement, contracting, and financial reporting.
• Quality: deliverables that meet or exceed client technical specs, timelines, and lifecycle performance.
• Safety: prioritizing health and well‑being of employees, subcontractors, clients, and the public.
• Innovation: continuous improvement through R&D, prefabrication, digital construction, and materials advances.
• Sustainability: minimizing environmental footprint through energy efficiency, waste reduction, and green materials.
• Teamwork: cross-disciplinary collaboration and stakeholder alignment to achieve shared objectives.

• Integrity mechanisms: independent audit, supplier integrity checks, anti-corruption training.
• Quality controls: standardized QA/QC playbooks, third-party inspections, lifecycle warranties.
• Safety programs: mandatory site training, real‑time reporting, near‑miss analytics and incentives.
• Innovation enablers: R&D centers, partnerships with universities, pilot prefabrication yards.
• Sustainability actions: green procurement, waste diversion targets, energy‑efficient designs.
• Teamwork enablers: cross-functional project teams, joint KPIs with major subcontractors.