Summary of Shanxi Coking Conference

Leaders present: Chairman Li Feng; Secretary of the Board of Directors Wang Hongyun; Chief Financial Officer Wang Xiaojun

Q: Did the company stop production in the second quarter because of environmental protection and safety supervision? If so, how many days?

A: The company has not stopped production for environmental protection and safety reasons.

Q: In your company's history, the average profit rate of chemical products did not exceed the loan interest rate, so it is recommended not to expand it.

A: By strengthening the coordination between banks and enterprises, the company has developed various financing methods, optimized the financing structure and reduced the financing cost.

Q: Has the company ever thought about becoming a national coke company and going out of Shanxi? Now the coal industry is merging and reorganizing. If yes, can the parent company provide support?

A: The company will actively study industry policies, do fine coking industry, and build advanced coking enterprises with excellent management level and leading environmental protection and safety capabilities.

Q: What is the bargaining power of the company's products? Does the company cooperate with TISCO in the province?

TISCO has been a cooperative customer of our company for many years.

Q: How many tons of coking coal does the company need to produce one ton of coke? Is the transaction price of coke in the company the spot price?

A: By optimizing the coal blending structure, the company reduced the coal consumption and raw material cost. The coke price of the company is traded according to the market contract price.

Question: What is the estimated total investment of Hong Fei, what has been invested so far and what is the planned investment of 202/KLOC-0?

A: According to the requirements of Shanxi Provincial Party Committee and provincial government for modern coal chemical project, Hong Fei Chemical has optimized the project design and product scheme from the aspects of technology and products, and conducted in-depth analysis and research on the whole project to meet the requirements of "three transformations and one type".

Q: Shanxi's environmental capacity is too small to limit production every year. It is recommended not to expand. Do you have any plans to go out of Shanxi?

A: The company belongs to a traditional coking enterprise. Coking Coal Group is the largest producer of coking coal in China, with the most complete coal types and excellent coal quality, which can provide a strong resource guarantee for the company's production and development.

Q: What was the profit growth rate in the first half of the year?

Q: The impairment of Hong Fei is 330 million pounds. Was it withdrawn in the 2020 audit report?

Q: Is there any way for your company to reduce its financial expenses?

A: By strengthening the coordination between banks and enterprises, the company has developed various financing methods, optimized the financing structure and reduced the financing cost.

Q: Is there any way for your company to reduce its financial expenses?

A: By strengthening the coordination between banks and enterprises, the company has developed various financing methods, optimized the financing structure and reduced the financing cost.

Q: Shanxi's environmental capacity is too small, and its annual output is limited. It is recommended not to expand 1.44 million tons. Do you have any plans to go out of Shanxi?

A: According to the policy of reducing coking capacity and increasing capacity, Jiao Shan Group has achieved the capacity index of 6.5438+0.44 million tons, and is currently conducting feasibility report, preliminary design and other demonstration work.

Q: Will the semi-annual report of 2 1 be proactively pre-disclosed?

A: Hello, the company will disclose the semi-annual report according to the arrangement of the exchange and the company's situation. thank you

Q: The company takes out its profits every year. Is the financial cost of the company high?

A: The company's equity distribution in 2020 includes cash dividend per share (including tax) and 0.3 share transfer per share. The company's dividend has nothing to do with the company's financial cost.

Q: If the price of coke is 2800 yuan per ton, what is the gross profit margin?

A: The price of raw materials fluctuates greatly, the cost of coke is changing dynamically, and the gross profit margin is also changing dynamically. This indicator cannot be accurately predicted.

Q: Does the company have any expansion plans in the future? In 20 18, the share capital expanded from1400 million to 2.5 billion now. It makes sense that the stock price will go up after the expansion.

A: The company will focus on the main business of coke, continuously improve the level of production and operation, actively implement the profit distribution policy, and repay investors with good performance.

Q: 202 1 What is the expected profit for half a year?

Q: The company's gross profit margin is a bit low. Are there any improvement plans?

A: The company fully implements lean management and takes a series of measures from planning and process optimization to continuously release the factory capacity and increase the gross profit margin.

Q: Hello, what is the profit per ton of coke at present?

A: As of June 65438+February 3, 20201,the company's coke gross profit margin was 1 1.52%.

Q: What is the position, competitiveness and advantages of the company in the coke industry?

A: After years of development, the company has formed a large-scale coal chemical base dominated by coal coking, relying on comprehensive utilization of coke oven gas, coal coking and deep processing of crude benzene, and trained a large number of production and technical management talents with strong technical force. It has a broad customer base and accumulated rich experience in production, operation and management, laying a solid foundation for the development of new coal chemical industry.

Q: Does Coking Coal Group have a company asset injection plan in the future?

A: There is no such plan at present.

Q: The Hong Fei project failed for eight years, which almost brought down the company. Who is in charge?

A: According to the requirements of the Shanxi Provincial Party Committee and the provincial government for modern coal chemical projects, Hong Fei Chemical has optimized the project design and product scheme from the aspects of technology and products, and conducted in-depth analysis and research on the overall project to meet the requirements of "three transformations and one type". At present, the progress is slow.

Q: The company's performance has increased substantially. Why hasn't the share price gone up since last June 165438+ 10? Has your company ever managed the market value? There is also a detailed introduction to the operation of China Coal Jinan, how the company's coal chemical project is progressing, and what plans the company has in the future!

A: Dear investors, the company's share price is affected by many factors. After the company implemented profit distribution at the end of May, the share price was ex-dividend, and the company will strengthen market value management in the future. As the core enterprise of China Coal Group, China Coal Huajin Group Co., Ltd., the company's shareholding company, has a good production and operation status and implements profit distribution according to the cash dividend policy every year. The coal chemical project is currently conducting in-depth research on the scheme. The company will conscientiously implement the general idea of "four highs and two synchronizations" of the provincial party committee and government, make a refined coking industry, and build an advanced coking enterprise with excellent management level and leading environmental protection and safety capabilities.

Q: Will there be a substantial increase in the performance of the interim report? .

Q: Why are most of the company's by-products such as carbon black and toluene extracted at a loss? As an accessory product. Is the cost of refining more than the market price?

A: At present, the market price of the products of the company's subsidiaries is improving, and the profitability tends to improve.

Q: Hello, Chairman, are you satisfied with the company's market value of 654.38 billion+0.3 billion?

A: The company will continuously improve the level of production, operation and management, and repay investors with good business performance.

Q: What is the progress of the Hong Fei project, how big is the funding gap and how to solve it?

A: According to the requirements of the Shanxi Provincial Party Committee and the provincial government for modern coal chemical projects, Hong Fei Chemical has optimized the project design and product scheme from the aspects of technology and products, and conducted in-depth analysis and research on the overall project to meet the requirements of "three transformations and one type". At present, the progress is slow.

Q: I don't know. Why are all the subsidiary products of the company losing money? If the loss state is refined, it is better to give up.

A: At present, the market price of the products of the company's subsidiaries is improving, and the profitability tends to improve.

Q: I would like to ask the company leaders: At present, the industry is in a great historical development opportunity. Why is the company's share price hovering around the net asset price for a long time, and the market performance can't keep up with the ST Pingneng share price in the sector? Are there any unannounced problems that are unfavorable to the company's development?

A: Dear investors, the company's share price is affected by many factors. At the end of May, 20021year, the company distributed the rights and interests, and the stock price was ex-dividend. The company will continue to manage its market value and safeguard the legitimate rights and interests of all shareholders. At present, the company's production and operation are stable and carried out in an orderly manner according to the annual business plan.

Q: May I ask the distinguished guests: Why are all the subsidiary products of the company at a loss? If the loss state is refined, it is better to give up.

A: At present, the market price of the products of the company's subsidiaries is improving, and the profitability tends to improve.

Q: When will the olefin project be put into production?

A: According to the requirements of the Shanxi Provincial Party Committee and the provincial government for modern coal chemical projects, Hong Fei Chemical has optimized the project design and product scheme from the aspects of technology and products, and conducted in-depth analysis and research on the overall project to meet the requirements of "three transformations and one type". At present, the progress is slow.

Q: How is the olefin project going?

A: According to the requirements of the Shanxi Provincial Party Committee and the provincial government for modern coal chemical projects, Hong Fei Chemical has optimized the project design and product scheme from the aspects of technology and products, and conducted in-depth analysis and research on the overall project to meet the requirements of "three transformations and one type". At present, the progress is slow.

Q: Have any organizations visited the company recently? If so, are there many people investigating?

A: Recently, the company has not organized an investigation to the company. Thank you.

Q: What is the company's position in the Coking Coal Group? What are the advantages of purchasing coking coal compared with the market price?

A: Coking Coal Group is the indirect controlling shareholder of our company, and the coal purchase price is subject to the market price.

Q: The company's performance has increased substantially. Why hasn't the share price gone up since last June 165438+ 10? Has your company ever managed the market value? There is also a detailed introduction to the operation of China Coal Jinan, how the company's coal chemical project is progressing, and what plans the company has in the future!

A: Dear investors, the company's share price is affected by many factors. After the company implemented profit distribution at the end of May, the share price was ex-dividend, and the company will strengthen market value management in the future. As the core enterprise of China Coal Group, China Coal Huajin Group Co., Ltd., the company's shareholding company, has a good production and operation status and implements profit distribution according to the cash dividend policy every year. The coal chemical project is currently conducting in-depth research on the scheme. The company will conscientiously implement the general idea of "four highs and two synchronizations" of the provincial party committee and government, make a refined coking industry, and build an advanced coking enterprise with excellent management level and leading environmental protection and safety capabilities.

Q: The olefin project will be built in several stages. What will be put into production?

A: According to the requirements of the Shanxi Provincial Party Committee and the provincial government for modern coal chemical projects, Hong Fei Chemical has optimized the project design and product scheme from the aspects of technology and products, and conducted in-depth analysis and research on the overall project to meet the requirements of "three transformations and one type". At present, the progress is slow.

Q: When is the first half performance forecast? How's the growth?

Q: What was the company's production in the second quarter? Has the performance in the second quarter improved significantly?

Q: The company's share price plummeted. Is there a plan to cancel the repurchase?

A: The rise and fall of stock prices are affected by factors such as the secondary market environment. At present, the company has no repurchase cancellation plan.

Q: Did the company's net profit attributable to shareholders in 20021,1-6 change significantly compared with the same period last year, was it positive or negative? Will you stop being so vague!

A: China's coke market operated smoothly in the first half of the year, and coke prices continued to improve. The company strives to overcome the impact of COVID-19 epidemic, normalize environmental protection and strictly control, fully implement lean management, and take a series of measures from planning, process optimization and other aspects to continuously release the factory capacity. The overall production and operation of the company maintained a good momentum.

Q: Please tell us about the company's performance in the first half of 20021. thank you

Q: Hello, Chairman. What is the break-even price of coke?

A: In the first half of the year, the market price of products and the purchase price of raw materials fluctuated greatly, and the break-even price of coke was in a dynamic change.

Q: According to the company's previous announcement, the Jiao Shan Hong Fei project is expected to start construction by the end of 2020. How's it going so far?

A: According to the requirements of Shanxi Provincial Party Committee and provincial government for modern coal chemical project, Hong Fei Chemical has optimized the project design and product scheme from the aspects of technology and products, and conducted in-depth analysis and research on the whole project to meet the requirements of "three transformations and one type".

Q: Is the Hong Fei project in a listed company? If it is a listed company, is there a transfer plan and how much is the impairment?

A: Hong Fei Chemical is a holding subsidiary of our company. In 2020, the olefin project undertaken by Hong Fei Chemical Company made slow progress, and the company made provision for asset impairment of 330 million yuan according to the actual situation.

Q: 144 is there a timetable for the commencement of construction?

A: The feasibility report and preliminary design of the 1.44 million-ton project are currently under way.

Q: When will 600,000 tons of olefins be put into production? Will it be put into production by stages or all at once?

A: According to the requirements of the Shanxi Provincial Party Committee and the provincial government for modern coal chemical projects, Hong Fei Chemical has optimized the project design and product scheme from the aspects of technology and products, and conducted in-depth analysis and research on the overall project to meet the requirements of "three transformations and one type". At present, the progress is slow.