China Coal Energy Company Limited

Welcome to join us in China Coal Energy Company, the 2022 half-year conclusion event. And before the keynote speech, we will have the Q&A session. Now welcome the moderator. Honorable stakeholders, investors, good afternoon. I'm the Secretary Jiang Xun of the President Board. Secretary, welcome to join us in 2022 to the half-year conclusion. Thanks for your support. And today we have the chief of the financial sector, Chai-Qiao Lin, and also the career department, Chai-Qiao Deng, the security department, finance, sales center, and chemical center. Allow me to introduce about the situation of the industry as well as for the half-year performance and the plan for the next half-year. and before the introduction I would like to offer you a very elaboration that all standard require according to the China accounting standard. 2022 the first half year recalling. In the first half year as the stabilization policy has put into implementation and all has been returning very stable especially for the release of the capacity and guarantee of the coal supply can be realized. During the January to July That's 2.56 billion tons, 11.5 percentage growth. We can say that yielding amount has been growing a lot. And the first half year that 5500 for big truck, especially for the steam coal, actually the average price is 721 MB for each tons, like 4 MB for each tons less. And also that is lower than the limit, 49 MB lower than the limit. And in the market coal 2022, especially for the Qinghuangdao part 5500, the steam coal price 1155 and 209 grows. The price is 1683 MB tons. The lowest price is 773. The average is 1176 MB for each ton. From January to July, import is around 179 million tons, 18.2% less. In July, the importing is around 23.52 million, 22.1% dropping, and also like 10.9% less compared with previous months. The first half-year operation situation, I will introduce something on that. Recently, following the China Central State Department and the center of the CPC, as well as for international Chinese state asset and security department, and we have been working in high quality development as our very guideline and to guarantee stability of the coal supply, to guarantee stability of the economy as well as for the growth of the social economy to make our part of contribution. The first need to guarantee the supply of the power stably, guarantee the growth of the first release on the capacity of the coal, especially for the commodity coal that's around 59.523 million tons like 2.47 million tons gross, 4.4 percentage gross. And for the community coal sales, 130 million tons, 22.37 million tons less, 14.4 percentage. And also for the Made in China, 58.65 million tons, 4.7 percentage gross. And also for other sales, what we call the contract is 68.96 million tons, the 27.6% of the dropping. The pricing, 752 for the commodity, 210% growth, 68.7% growth. Contract is 833, and 243 growth, 41% growth. And also for the product, that's 237 for the chemical product, and also for P36.91, And for PPE, that's 38.31. And for the urine, it's 100.241. And for the methanol, it's 97.01. The sales is 90.71. That's production and the sales. And for chemical, for the price of the urine, that's 7.400 RMB. That's 35.3 percentage growth. Methanol is 1919 MB for each town. That's like 224 MB for each town's growth. That's 13.2 percentage growth. Third, about the equipment as well as for finance business growth. For the equipment of the coal, that's 1.5 E. That's 7.7 percentage growth. Revenue is 54.16 E, 9.2 percentage growth. 1 E is 100 million Chinese units. and also finance as we can see revenue is 1.125 E that's 3.8 percentage 3.8 E more and 51 percentage of growth that's a finance situation for revenue for other businesses including importing for the aluminum as well as equipment and for other parts and for the revenue is around 40.72 E and second I would like to use about the market situation as well as for performance growth 2021st half year the revenue is around 1180 E, that's 15.5 percentage growth. And also for the net profit belonging to stakeholders, the 133.77 E, 75.7 percentage of growth. And edge stake, for the profit of the stakes holders, that's 145.29 E, 69.5 percentage growth. And apart from a finance company, as well as for the other reasons of the asset processes and flows, and we got the cash in 200E and 49E, 7.2% of growth for yielding for each stake. And also for the weighted asset income, that's 11% and 3.82% growth. And for the debt, 2.2% and 3.5% less compared to previous year. and for the total debt, that's around 5.3% of ratio and 5.2% of dropping. And for operation cash for each stake, that's 1.25 yuan, so 0.37 for each stake. And for each A stock and for the profit, 9.42 yuan and 0.8 RMB for 9.2% growth. I would like to introduce about the progress of the programs as well as for the project for the green technology allocation. For the last, for the previous half year, especially for the 1500, one, that for the high quality of steam cores, mainly to guarantee, especially as we can see that pilot program has been adjusted from 5 million to 20 million tons. That's approved scope or permitted quotation. and also for the Shaanxi Yulin, especially for the PPE project has been coming to the production. The PPE project has come to production that annual yielding, that's 0.9 million pounds. For the annual four million, especially for the smokeless, for Li Bi and Tai Bao, it has two multipliers with 250 pounds. megawatt has also been progressing especially for 13 megawatt for Shanghai new energy has been coming to construction especially we are working on the in all these areas for the for the coal production between the new energy and the coal energy the third part we are working on the introduction on the plans for and prospect for 2022 the latter half year especially given the tight supply of the global energy as well as we are stabling the price as well as to facilitate the progress and to we believe that the price will maintain at a very rational level and currently it's still at a high level especially as the economy has been recovering and stable policies has coming to be landing that means less fluctuations The plans for 2022, the latter half year, and we will be working on stability, especially during the stability to assure the high-quality development and the green energy development, as well as for the storage of the power and transformation of the status, mainly centered on the 45-year plan to facilitate the project construction and to finish the guarantee and security work, especially to assure that it can be aligned with the national strategy Second, for the national state-owned enterprises with three plans, we are also in compliance with that to assure legislation and to instill more vigor on that part, especially to facilitate refined management to improve efficiency and to finish our projects, reduce the cost, increase the efficiency. First, facilitation about innovation and scientific, especially for the coal energy transformation, transferring of technologies, and to facilitate development by technology, driven way. The tips mainly about security, environment, protection for the COVID prevention and to assure that the six is mainly governance improvement and information sharing, transparency, communication between the stakeholders more fully. And we will always remember our original task and to facilitate our development with all the effort from all different spectrum and to return to the stakeholders to make our contribution That's my introduction, thank you. And now come to the Q&A session and welcome for the questions. And we have multi-panel forms for interactions. We have the phone as a priority for the questions residing and please. If you need to Questions? Ask the risk K first, that number one, so in that way you can ask the question if you want. Ask the risk K, that number one K, so you can raise your question by the phone. Currently, there's no question. I would like to give the collective question first. 1.16E, that's 572 tons more for the asset, tons. It's because of capacity increasement or because of other reasons for such increasing? 1500 for the steam coal high quality 5 million to 20 million for the for coordination for the environment protection that's different policies allocation. The phone number is 6322. Please ask a question, please. Hello, leaders. I'm coming from Citibank. I'm not sure if you can hear me. Yes, please. Congratulations for the first half year with such a very yielding profit. Two aspects I would like to ask. First, mainly about the inflation. For the annual years, that would be mostly considered, but actually for the half year and for around 20 years, less asset value. For the whole year, what would be the asset devalue? Second, I would like to say, especially... Would you introduce... about the four-year prospect on the decrease of the finance situation from finance sector. First about asset devaluation. 19 for the asset value for the EEP. And mainly we are insisting on energy development, green energy development, especially for 2021. Zhong Luqian, Wang Jialing, very modernized the coal. Like 1,212. And also for 50 tons added scale. That means our guarantee, more guarantee for the production. And why would we guarantee supply for China coal? Especially for geographic situation, for the risk control, especially for the other mines. We are also working on evaluation, examining all these mines. During the processes, especially for the asset devalue, we have been ready for that. Especially for some mines, we have been working on the testing for lowering the price, especially the coal price at a high level. For the chemical company also has some loss of the profit. We're also working on some like to assure that asset has less value. That's what we call it. And for the latter half year, we are high quality development is a very important guideline. For the asset, we will still to checking it very carefully based on the principles and requirement to assure that to use a certain form to share the information. Second, from the first quarter to the second quarter. The cost. For the latter, especially for the first quarter, different mines need to have a maintenance. Repairing. And also maintenance can cause the less of the product yielding. That's to say, for the third quarter, first quarter has more cost. Actually, we still are working on scientific management. So the cost is still in the rational scope. That's my answer to your question about the cost. Thanks a lot. I would like to ask another question. The sales of the coal price about made in China coal or the imported coal. We can see Made in China coal has been increasing, but actually imported coal has less price. I want to see the reason behind it or any driving force behind it. The sales manager, please. You talk about the long contracted coal. I think that's still at a very stable stage. From the average price of the half year, 721, compared with the beginning year price, that's four less. For second quarter price, we're at 719. It's a very stable price for that. for the long-term contract call. And for sports, for markets, we believe that a lot of fluctuation has been a lot of fluctuation. For the previous half-year average price, 1176 as a price. And the... from $16.83 to $7.93 for the spot price between that scope. And this normal price is $8.90. So basically, also because the second quarter has the lockdown of the COVID is the main reason. Thanks for the answer. No more questions from me. Another question from the Internet Collection. And my question is coming from Shenzhen Center. About the future performance, dividend promises. Do we have more dividend for the stakeholders? More share for dividends? for the stakeholders or less. The bottom number affected by many factors, we believe, including the price of the product has a lot of impact for the prediction. There's a lot of affinity there actually from the production. still maintain at a very rational rhythm to guarantee the stability. That's the first question. Second question, you talk about the dividend sharing proportion for stakeholders. From getting into listed, we maintain at a very stable proportion. One aspect we consider about the company's input requirement and also to take into consideration of the listed company, there are regulations there. So we will keep a very stable and rational scope, and there's no prediction to rise a lot for proportion for shareholders. Any more questions from the phone end? investor. Please. He clicked the wrong key and have to read it again. And click. Ask the risk or star key and number one to raise the question. Please. I'm sorry for the offline. I'm told this asset got two questions. The first question mainly about dividend to share. I would like to ask that for the cash flow situation and also about the asset allocation, expenditure allocation, especially for the asset flow. That's around 150 E. but actually only for proportion for the net proportion. I think that is stable for the financial situation. I would like to ask for the near future for the expenditure of the asset capital or even buying back. Should we consider more dividend for the shareholders? Second, I would like to ask is that for the market fluctuation, including for the maybe some potential risk for electricity coal, for the steam coal, and for the next second half year prediction on the pricing, driving or lowering. The first question you have talked about, especially for the cash, is very rich. Currently, we have no buy-and-buy arrangement. If there is, we will do it according to the procedures. About the furniture of the capital asset, we made the yearly annual plan. The first half year, the proportion is not so high, especially affected by the pandemic or the weather. We believe that later half year, the expenditure of the asset will be according to the plan to put more input and to enhance efficiency. A second question you have mentioned about for the future market planning at our market department, please. About a lot of our year plan, Especially with China policy with stabilization, the demand is returning. I believe that the price will be stable for the latter half year. About the spot price. especially given the very limitations of NDRC has the very fluctuation range for the pricing for the latter half year I think that will be lowering the favor will be lowering for the market of the high price So there's less possibility to rise a price a lot. And also a very less possibility to have higher price compared to previous year. Second question I would like to ask is that NDRC this year, especially for the long-term contract, and it has very limitation of that, for the spot price and for a long-term contract, what's the proportion between the two different ways of procurement? And after the first half year, according to your understanding that for the next half year, what would be the change for the proportion of the long-term contract and between that and the spot price? has published 303 policy papers and the number 4 claim about the price of the coal has very elaboration of that part and our company has followed that very strictly especially for the policies as well as for the price our our long-term contract as the main proportion for the sales. And we hope for the latter half year, all according to China policies. And we believe that the long-term contract price, 721, just like mentioned by the former, our president, Secretary General, 22 percentage of growing. and that is very important for the performance for our company. It's a part of that. Would you repeat more on the spot? about the spotter price. For the buying channels, the top line, there are some risks for the spotter price. We are working on facilitating about the development of the coal for the part importing. And imported coal will turn better, we believe. Next question, thank you. Mr. Wang and all other leaders. President Wang. I come from CTE Bank. My name is . I would like to ask two questions. Thank you so much for the patience for answering the questions. One is mainly about the industry. from beginning of the year to the end of the year, including the NDRC or the Energy Bureau. And three E tiles for the energy guarantee. Actually, first half year is very limited quotation. Though we set up a goal, actually we put it into the new added capacity that's very limited. So I would like to I want to know that from your analysis does that mean the latter half year new added capacity will be realized very fast in your idea or NDRC Energy Bureau has been actively to earn more input of increasing of the capacity like enlarging of the more supply or the more approving for building new project or the idea of how many capacity they will put into the new building project. Does that mean that a spot rising price can be curbed, like $1,200 or $1,100, maybe dropping, especially we know that the daily consuming spot price? And there are some kind of fluctuations of spot price. if the policies from the NDRC or the other energy bureaus, ministries can be landed. So does that mean that the price, the spot price will be dropping? Second, I would like to ask is that for the cost, for the Made in China cost, will it be still still be like, especially we understand that the three quarter and the first quarter, there'll be more rising of the cost, like 50 to 60 cost of rising, even 90 to 100 or more of the cost. About the cost of rising, do you want to elaborate a little bit on that? First question. About the 3E, actually 300 million, not landed so fast. For the current mine, that will be very beneficial. But if a new building is not so fast, taking some time, especially from the national scope. We do not have a specific data to support that. It still takes some time to respond to the policy. Actually, we believe that to have a very specific speculation, there's no such kind of answer we can get from that current information. So we still believe that spot price is still running at a very high price in the near future. Secondly, you talk about the cost very right. Yes, according to the normal rhythms or situations, the habit, basically that means we have the tradition that maintenance are conducted at the latter half year, cost will be rising. And also there are some prearranged work, medical preparation work for the first half year. So the second half year, that means more higher cost competitive previous half year. And even less compared with 325 for each ton cost. So currently, we are running the cost well. Thank you. Chu Xinjie, the investor, to ask the question. I have mailed to the company for five questions. I still have four more questions. Five questions have been answered recently. 270 tons. and 140 tons, e-tons, for reservation, for yearly exploration. That means that can be running 120 years for exploration, mining, if we do the math for reservation and for each year's yielding. Another is for the debt, for the 800 e, and actually in cash. Only 300 for the cash left. That's a contradiction. The third question is that for 800 cash, and actually the debt is 850 E. For 190, for other type of other debt, type of debt, does that mean the deposit or something like is blurred there? and profit is like 200 E. If we have 400 E for each year without consideration of the debt, a two year time, we can be without debt. It can be that means winning the money and also about dividend. After two years, if a company has become only the cash in, That will be like the other, like 100% you're winning the money. The first question about the running period for the current mines. The total reservations and the year term is not calculated. It's not doing the math in that way. Different mines reservation are different and varying. And also the capacity, the volume and operation situation is different, conditions different. And also about the situation in different mines are different. Also we are working on backup resources exploration. We have no idea that when we gonna explore a new asset for the backup, reservation is also what we are striving for. So if we do the match 120 years, it's difficult to answer. I cannot guarantee, but in general, our current reservation can support our company running to have a stable growth that is enough resource to maintain that, guarantee that. Second question is mainly about our finance sector. About the cash flow and also why is mainly for we have deposited for the cash. For more than three months, we make it into the fixed deposit. Second is mainly for the production. There are limitations for use of the ash. That is also one reason behind the limitation of user cash flow. So there is a gap between the cash in and the cash deposit. Second is about the dividend. For the future about the company's performance, there are lots of reasons to impact that. has taken the first half year situation, like 400E for one year's performance. There is very uncertainty there. For the near future, whether we can have such a 400E revenue or 40 billion revenue, we still have no idea. And according to the 14 five-year plan, and for future arrangement, and for input investment, I believe that for dividend proportion, we will have no further arrangement. If there is arrangement, we will let you know at the very first time. Very clear question. Clear answer. We all know, especially for the cooking coal can be running for 90 years. But for other steam coal and for other coals, other type of coals may be running longer. Last question. about the previous half year to predict the whole year's revenue or profit. That's just an assumption. And $720 as a price. But in Australia, the $400 for each ton of coal in Australia, that'll be just $720 for each ton. So if we can continue our good days, I think that can we share more profit? Yes, thank you. Shandong Rail Development Fund, Feng Lichun. Good afternoon, leaders. I would like to say congratulations for the very good performance for the half year. I'd like to show my concern about still shutting down or why it can put into production again. 20 million tons capacity. How many can used for electricity? How many used for chem? and the sales price for electricity or for the chemical, what will be the pricing for that? Second, for the chemical, how many tons will be used for the chemical cost? Made in China, proportion, how much proportion can be increased if we that put into running? About that has my will progress in our manufacturing department. For the CAM question, Yi from the CAM sector, please answer the question. All the investors like you have asked if that has a situation the previous half year. According to the contract capacity requirement, from $1,500 to $20 million, from $15 million to $20 million increase. Next year, that will put into $20 million. Next year. 50%. percent is used for chemical. Other 50 percent for sales. 1,001 tons, 10 million tons, 60 percent made in China, 10 million tons. or ERDOS 80% made in China. And it used to be imported. Since Da Hai go put into production, Da Hai provide the coal now. After accomplish China coal supply by ourselves, 80% can be supplied by ourselves. About the coal price, according to the price of the market, no matter for the chemical, or for sales, or the set, or according to the price in the market. Thank you. Very specific answers. Thank you. Thank you for the investor. Chen Yan from Dengjing Company. Good afternoon, leaders. I want to ask a small question. First question about the cash. Leaders mentioned about a 45-year plan. Would you offer us a number for the future several years? What will be the maintenance for the current asset input? For 14-5-year plan, what will be the input of the fixed asset? Second, a maintained fixed asset. Second is about geocarbon. for our coal industry is very challenging, we believe, carbon neutrality and carbon decarbon. Do we have new investment into the geocarbon goal project? The third is that the market, the response about the carbon have a fluctuation down. For the average, for the very similar parameter compared with the other years of coal, and there is a response that is less thermal for each unit of coal. The first is about the temperature of the fixed asset and for development department, Xin, please. You can remove the mask if you want. first and mainly including for the new construction or the under construction mines. And would you please speak to the phone so we can hear clearly? First to guarantee the construction, of the under construction mines. Consider for the input of fixed assets and also for production arrangements for the future. is still at $10 billion level for the fixed asset input, but for each year we got a new plan. For next year beginning, we will arrange for a new plan for the fixed asset input. Thank you. Second, about our energy plan, new energy plan. Our company is devoting ourselves to also in the semi-year plan, we are building very actively on the wind power and the solar power. And also the west and north area, we are earning for the new resources for arrangement of renewable energy, but we will keep it transparent. For the wind and the solar, would you introduce more on that? What's the scope? What's the scale for the solar and wind input? There's no specific plan for how much we will invest into the wind and solar currently. about the quality of the coal that each unit can provide and how much is summer. Our production of the mine, Shanxi Tongzhong, in Mongolia, at the end of June. For 5-0-0, And Fuxiute, 4,900. And Xianglong, 5,200 car. And Da'e mine, zhao mine. And this one, they are zero. There's a number for each different mine, zhao mine and resources. Thank you. Any other questions from me? Thank you. About the new energy, and we will offer you further information if we got more data on that. Thank you. Let's see if we have more questions from the phone line. If you need to ask a question, you can ask your risk. button and then number one button. If you need to ask a question, you can click the button asterisk, then click the button of number one and to ask a question if you want. Asterisk and then one, two, Currently, there is no question from the phone end. Thank you. Now, the answer from the internet end. A very interesting question. Currently, the social economy has a lot of challenges, and also some people said that we need to survive as a priority. Do we misestimate the risk? And should we take reducing the debt as our priority? Is there any priority to reduce the debt given such a challenge of the economic crisis worldwide? And any potential for the future risk prevention in one aspect? With all the banks, we have set up a very connection with the banks. The banks providing us a very better proportion For the future financing, we have a very potential for future financing for the mindful exchange and for the other benchmark. We are high quality proportion for the asset portfolio. That is very guaranteed. Third, and we are enhancing the management assets. That means we have very good capability to manage our asset. For the future, we have the readiness on that. And do we have a plan to reduce the debt? Currently, we have no plan for reducing the debt. Because on the debt, that's all according to the standard. We do not reduce the debt earlier. Yeah, that's Another question from . For next half a year planning and for the cooking coal price with international price in alliance, what's the affection in the China market? The sales manager, please. Two questions I've repeated. First day that for the latter half year for imported coal market, what's the planning on that? I'd like to answer the imported coal first. For imported coal price, there's a very reduction compared with previous year. For international market, the demand is huge. supply mainly affected by the Russia war, Ukraine war. And the rising of the coal price in Russia and Ukraine has been rising a lot. And also the international market has been affected a lot. The importing of the coal will not be increasing in the near future. The second question I would like to repeat For the steam coal price and the cooking price of the coal, will that be affecting the Chinese market? I think I have answered all the possible questions. Please wait for a while. A part-time security investor to ask a question. Congratulations for such a very performance for the first half year. For the project, I would like to ask the first day that we can see. There's no reporting about the progress. Is that because of delay of the progress of the construction? Next year, we can see that this year is experimental running. and the year that finished the completion of the construction, that are five million tons of the increasing. Actually, there's no review of the approving of putting to production. When that's here, as all the procedures can be finished next year, in that way, the 20 million tons, it can be, quotation can be realized. And also, about the project, and the two projects, I'd like to know more on the two projects. About Yilanshan, because the geographic situation or because of the other reasons, and the gas, and for the other disaster, and very difficult challenges in there. But that is a slower comparison to the patient, but actually we are working step by step. That's about Yilanshan. About Dahezi, our construction department, Like you have asked about that, this year, according to the China equation, 20 million, we are working on the approving for the production for the procedures. Currently, we are working on the procedures of contract of the 20 million. Oil is running well. We are working on it. Second, about the chemical chemistry, especially we have understand that the chemical for profit, for price, actually is dropping. Actually, for the previous half year, we can see that about urine is very good, but actually for the methanol and for the polyolefin, actually there's a pressure there. especially for the product and for the profit compared with second quarter. Would you introduce a little bit on the PP or the polyolefin price or the market situation? For the chemical, Lee from the chemical department, please. To answer the question for the chemical for the previous half year stable, market fluctuation is huge. The main reasons behind it, there are two. First is for the coal price. The coal price in July, August is still running high, the price. That's good for the coal company. Actually, for the chemistry industry, that means very cost. Actually, for methanol and for the olefin price, no rising of that. That's why less profit for the chemistry company. for uranium and for ammonia and nitrogen actually is working better. But for the latter half year, stable because the big bulk product, especially for chemistry product, has been dropped internationally. And currently our olefin and methanol is still at a very cost margin. and will not drop in further. Actually, if you anticipate a higher rising, that will be also less possible, but stable, I anticipate, for the latter half year. That's my answer. Thank you, thank you. No question from me now. China Weber Group, Luo Chen. I would like to ask a question about Da Hai Zhe mine. As a shareholder, actually, we care a lot on the mine construction progress. And I would like to ask you that Da Hai Zhe mine, the quality similar, how much cost of the progress of the exploration? That's the first question. and Mr. Tian from the Market Department. We about the summer of that you repeated that . Fifteen hundred for the car, mainly for the steam coal use, for power use, for steam coal use. You talk about the cost. about exploration cost from the first half year put into running. Put into running July to around. Put into running that is costing cost is low, and also the equipment, the new maintenance is very less cost. Actually, because just put into production, the production is still not coming to the peak. So the cost compared with other mines is still high. 200 for each ton normally for anticipation. You talk about the price. The price, according to the market price, I'd like to ask specifically for exporting to other countries and how do we understand that Does that mean according to there's not without the affection by the contractor price or we just sell it by the international market price? Mainly through our railroad to transport to other countries according to the NDRC requirement and to maintain that at a rational level. still not only about market price mainly to guarantee the security supply of the China's power of exporting to other countries also based on the long-term contract for exporting for sales for for Answer risk number one and to ask question by the phone if you want. Answer risk number one to ask the question. Another question from . How many proportions used for electricity? How much proportions for the chemistry? 50-50, we have answered that already. Asterisk and one for phone and question. Asterisk and one to ask question by the phone. We introduced the measures about cut the cost and increase efficiency of the company. Question from tonight. One is about the production to have optimization management to reduce the cost of production. Second, for financing, we are, especially there are very supportive policies, preferences, with very good channels, pipelines, is that financing cost can be reduced by the priority of the policies. One aspect of production procedures is to cut the cost, to optimize during the operation, to maintain a very low cost level. Second, for financing and to have a lower cost, to assure the cost at a very stable level. Currently, China is facilitating electricity supply. So, do you have plans to construct new mines to support electricity production? I'd like to answer the question. The company... as the coal as the very pillar we will devote ourselves further to assure that the national security of the power supply so for the future we will continue to build the new mines that will be our very direction development. The coal will be our pillar and we will guarantee the security of supply of energy. And also we will play full advantage of our strength to also to use more different kind of a coal to improve the transferring efficiency in our way to improve efficiency of the, to use the low thermal coal to produce more thermal Another question from the internet. For the chemistry coal, for the first half-year market situation, and then for the latter half-year prediction for the chemistry coal. We have answered the question, if you want, and we can repeat. For the first or previous half-year, the chemistry market, as per your reading, and for the ammonia, urine, nitrogen, ammonia, nitrogen, and for other product is fair. But entering to the July, there are some dropping for the country, mainly because international market on the big bulk product in the July, August is a dawning. It's like a season. And we predicted that for the later half year, The price will be fluctuating, but there will be no rising, a very big rise, no big rise. But also we believe that a current coal price in the latter half year, if we maintain a level of the cost of the coal price, then there will be less profit compared with the first half year for the chemistry. That's my answer. Thank you. China Coal Chen Zhiyang. Good afternoon, leaders. I would like to ask about the cost of the exploration of the coal. A geographic situation Have we solved the challenges of the geographic challenge affecting the cost design department? Currently, that is an open mind. There's not much change. It's at a normal scope. Another question I would like to ask, one project Is that a new project or the new added project or the current project? What I need is a new added project. It can only be changed for three or five years. And currently that will be extended to the east. That's just a subsidiary project. It's not the official funded project to guarantee that the project can be high-efficient, explosive, to guarantee that it's very effective exploration. We built up a square. We built up a village, a town there to assure that it can be maintaining the requirements to guarantee the stability, to guarantee the efficiency. What we call is just like some subsidiary project or the extensive project of my question. Another question from the internet. In July, the chemistry department has a dropping. What's the reason behind it? Is that because of maintenance? If it's because of maintenance, when we can return? Yes, you have answered yourself. It's because of maintenance. We are in maintenance. And currently, really, in August 5th, we have been returning to production in August 15 has returned to backward running. That means maintenance has ended. Another question from internet and asking about the chemistry and for the coal. What's the advantage of integration between the coal production and the coal chemistry? the integration between the coal and the coal chemistry advantage that is very important and we have been proving again and again I think that the coal is a very pillar just like we have mentioned the coal self supply 80% just like I have mentioned not only about the price but also about the quality If we procure that from the other part of the market, we cannot guarantee that the stability and the quality. Second, in China coal, coal and coal chemistry integration is a very important connection. We use a lot of derivative product from the coal production. We are very frontier in this aspect, not only for protection of environment, but also in the west and north area, solve the problem with the water recycling. Solve the problem of the water shortage in the west and north area. We reuse the water, recyclable water to produce derivatives. About the chemistry of the And the price for the internal buying from our self-made coal and sales, competitive sales, what's the price gap? Currently, our chemistry coal, according to the market price, because that's two parts, two different legal persons, that is all based on the market price. Any questions from the phone line? Asterisk and number one for questions. and number one for question by the phone. If there's no question from phone end, let's end this event. And we will answer the question from internet mainly. All the investors, all the analysts, if you have any questions, If no questions, the phone Q&A will come to an end. Thanks a lot for your long time support and caring. I hope you can support us and help us further. If you have any questions, you can call our security department. and we are very willing to answer any question you ask. Thank you. Now we can end the phone part and the net is still running. Thank you so much for joining us.