Summary of Shanxi Coking Conference

leaders present: Feng Li, chairman of the board; Wang Hongyun, Secretary of the Board; Chief Financial Officer Wang Xiaojun

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

A: the company has not stopped production due to environmental protection and safety reasons.

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

A: The company has optimized the financing structure and reduced the financing cost by strengthening the coordination between banks and enterprises.

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 an advanced coking enterprise with excellent operation and management level and leading environmental protection and safety capabilities.

Q: what is the bargaining power of the company's products? has the company cooperated with TISCO in the province?

A: TISCO has been our cooperative customer 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 the company's coke at the spot price?

A: the company reduces coal consumption and raw material cost by optimizing coal blending structure. The company's coke price is traded according to the market contract price.

Q: how much is Feihong's estimated total investment, how much has been invested at present, and how much is planned to be invested in 221

A: According to the "three-in-one" requirement put forward by the Shanxi Provincial Party Committee and the provincial government for modern coal chemical projects, Feihong 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 "three-in-one" requirement.

Q: Shanxi's environmental capacity is too small, and there is limited production every year. It is recommended not to expand it. Is there a plan to go out of Shanxi?

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

Q: what is the profit growth rate in the first half of the year?

Q: Feihong's impairment was 33 million yuan, was it withdrawn in the 22 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 carried out various financing methods, optimized its financing structure and reduced its financing costs.

Q: is there any way for your company to reduce the 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 production is limited every year. It is recommended not to expand by 1.44 million tons. Do you have any plans to go out of Shanxi?

A: according to Shanxi province's policy of reducing coking capacity and "turning down the coking capacity", Shanjiao Group has achieved 1.44 million tons of production capacity, and is currently preparing feasibility report, preliminary design and other demonstration work.

q: will the 21-year semi-annual report be voluntarily 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: how much profit will the company share out every year? is the financial cost of the company high?

A: In 22, the company will distribute the cash dividend per share (including tax) and transfer .3 shares per share. The company's dividend has nothing to do with the company's financial cost.

Q: if the price of coke is 28 yuan per ton, what is the gross interest rate?

A: the price of raw materials fluctuates greatly, the cost of coke is in dynamic change, and the gross profit margin is also in dynamic change, so this indicator cannot be accurately predicted.

Q: does the company have any expansion plans in the future? In 218, the share capital expanded from 1.4 billion to 2.5 billion now, and it only makes sense if the share price rises.

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

q: what is the expected profit in the first half of 221?

Q: the gross profit margin of the company is a little low. is there any improvement plan?

A: the company has fully implemented lean management, and adopted a series of measures from the aspects of planning and process optimization, and continuously released the plant capacity to increase the gross profit margin.

Q: hello, what is the current profit per ton of coke?

A: as of December 31, 22, the gross profit margin of the company's coke was 11.52%.

Q: what is the company's position in the coke industry, its competitiveness and its advantages in the industry rankings?

A: after years of development, the company has formed a large-scale coal chemical industrial base with coal coking as the leading factor and comprehensive utilization of coke oven gas, coal coking and deep processing of crude benzene as the backing, and has 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 an asset injection plan in the future?

A: at present, there is no such plan.

Q: the feihong project failed for eight years and almost brought down the company. who is responsible?

A: according to the "three-in-one-type" requirements put forward by the Shanxi provincial party Committee and the provincial government for modern coal chemical projects, Feihong 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 "three-in-one-type" requirements, so the progress is slow at present.

Q: the company's performance has increased substantially. why hasn't the share price gone up since last November? has your company done market value management? 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-weighted, 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 situation, and implements profit distribution in accordance with 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 for four highs and two synchronizations" of the provincial party committee and government, do fine coking industry, and build an advanced coking enterprise with excellent operation and 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 process more than the market price?

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

Q: hello, chairman. are you satisfied with the company's market value of 13 billion yuan?

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

Q: How is the progress of Feihong project, how much is the funding gap, and how to solve it?

A: According to the "three-in-one type" requirements put forward by the Shanxi Provincial Party Committee and the provincial government for modern coal chemical projects, Feihong 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-in-one type", so the progress is slow at present.

Q: 。 Excuse me, why are all the subsidiary products of the company at a loss? If the loss state is refined, it is better to give it up.

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

Q: I would like to ask the company leaders: At present, the industry is in a great historical development opportunity, and why the company's share price has been hovering around the net asset price for a long time, and the market performance can't catch up with the ST Pingneng share price in the sector. Is there a problem that the company is unfavorable to the company's development that has not been announced?

A: Dear investors, the company's share price is affected by many factors. At the end of May 221, the company distributed its rights and interests, and the share 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 guest: why are all the subsidiary products of the company in a loss state? If the loss state is refined, it is better to give it up.

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

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

A: according to the "three-in-one-type" requirements put forward by the Shanxi provincial party Committee and the provincial government for modern coal chemical projects, Feihong 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 "three-in-one-type" requirements, so the progress is slow at present.

Q: how is the olefin project going?

A: according to the "three-in-one-type" requirements put forward by the Shanxi provincial party Committee and the provincial government for modern coal chemical projects, Feihong 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 "three-in-one-type" requirements, so the progress is slow at present.

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

A: recently, the company has no organization to investigate, thank you.

Q: what is the company's position in the coking coal group, and 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 price of purchasing coal is subject to the market price.

Q: the company's performance has increased substantially. why hasn't the share price gone up since last November? has your company done market value management? 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-weighted, 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 situation, and implements profit distribution in accordance with 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 for four highs and two synchronizations" of the provincial party committee and government, do fine coking industry, and build an advanced coking enterprise with excellent operation and management level and leading environmental protection and safety capabilities.

Q: the olefin project will be built in several stages, and what will be put into production?

A: according to the "three-in-one-type" requirements put forward by the Shanxi provincial party Committee and the provincial government for modern coal chemical projects, Feihong 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 "three-in-one-type" requirements, so the progress is slow at present.

Q: when is the performance forecast for the first half of the year? How is the growth?

Q: what was the company's production situation in the second quarter? Did the performance in the second quarter improve significantly?

Q: the company's share price is in a slump. is there a plan to buy back and cancel it?

A: The rise and fall of the stock price are influenced by the secondary market environment and other factors. At present, the company has no repurchase cancellation plan.

Q: may I ask whether the company's net profit attributable to shareholders changed significantly from January to June 221 compared with the same period of last year, whether it was a positive change or a negative change? Can you stop being so vague!

A: China's coke market operated stably in the first half of the year, and the price of coke continued to improve. The company made efforts to overcome the impact of COVID-19 epidemic, normalized environmental protection and strict control, comprehensively implemented lean management, and adopted a series of measures from the aspects of planning and process optimization to continuously release the plant capacity. The overall production and operation status of the company maintained a good momentum.

Q: please tell us about the company's performance in the first half of 221. 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 construction of Shanjiao Feihong Project is expected to start by the end of 22. What is the current progress?

A: according to the requirements of Shanxi provincial party Committee and provincial government for modern coal chemical project, feihong chemical optimizes the project design and product scheme from the aspects of technology and products, and makes in-depth analysis and research on the whole project to meet the requirements of "three transformations and one type".

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

A: Feihong Chemical is a holding subsidiary of our company. In 22, the olefin project undertaken by Feihong Chemical is progressing slowly, and the company makes provision for asset impairment of 33 million yuan according to the actual situation.

Q: 144 Is there a schedule for commencement

A: At present, the feasibility report and preliminary design of the 1.44 million tons project are being prepared.

q: when will 6, tons of olefins be put into production? Will it be put into production by stages or all at once?

A: According to the "three-in-one-type" requirements put forward by the Shanxi Provincial Party Committee and the provincial government for modern coal chemical projects, Feihong 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-in-one-type", so the progress is slow at present.