China Coal Energy Company Limited

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Welcome, dear investors, and welcome to the Q3 China Coal briefing. And this briefing is open to investors. The main speakers will also leave you some more time for Q&A. So let's hear from the management of China Coal. Distinguished shareholders, dear investors, this is the Board Secretary of China Coal, Zhang Qun. Welcome to the Q3 briefing of China Coal. I sincerely thank you for your long-term attention and support. And the president at today's meeting, we have Executive Director and President Zhao Ronghe and the Independent Director Zhan Yanjing, Chief CFO, and also our colleagues and partners from different departments, business units, including the coal business unit, coal chemical business unit, and power and energy business unit. And let me brief you on the performance of China Coal for the first three quarters 2024. Firstly, an overview of the performance in the first three quarters. Since the beginning of this year, China Coal Energy has fully implemented the development idea of improving efficiency and incremental transformation. And we have actively stabilized the production and supply, deepening the lean management, striving to improve quality and efficiency. So we have had quite stable production in the previous three quarters, production, sales, and total profit of China coal have exceeded the budget, which has laid a good and solid foundation for the whole year of 2024, the main production and operation data. Coal production and sales in the first three quarters, cumulative output is 102 million tons, up 1.14 million tons at 1.1% year-on-year. advanced production capacity of coal mines such as Pingshuo East Open Pit and Shanxi Dahai Zi was actively released. We've also achieved like 205 million tons of sales volume of commercial coal down 9.29 million tons and the self-produced commercial coal sales was 100 million million tons, increasing at 710,000 tons. Selling price of coal products. The average selling price of self-produced commercial coal is 571 yuan per ton, year-on-year decrease of 32 yuan per ton, down 5.3%. Average selling price of buyout trade coal is 598 yuan per ton. down by 9.4%. Unit sales cost of coal products, the unit sales cost of company self-produced commercial coal is 286 yuan per ton down 8.19 yuan per ton and the transportation logistics have also been actually reducing and also we've actively allocated and also paid benefits and compensation so that the overall influences like energy has actually been reduced by 2.2%. And the first three quarters and the cumulative output of major coal chemical products of polyolefin was 1.14 million tons, increasing 32,000 tons The cumulative output of urea was 1.312 million tons, which was mainly affected by the planned overhaul of Tuke plant in August with a decrease of 220,000 tons. Accumulated sales of urea reached 1.51 million tons, including decentralized sales of 89,000 tons of urea from Lin Shi Chemical, a subsidiary of China Coal Group. Accumulative methanol output was 1.213 million tons, decreasing 244,000 tons, mainly due to the planned overhaul of the devices of the Du Ke plant. And the cumulative sales of methanol is 1.2 million tons, decreasing 259,000 tons. Accumulative output of ammonium nitrate was 423,000 tons, increasing 11,000 tons. The selling price of main coal chemical products are as follows. Average selling price of polyolefin is 6,971 yuan per ton, increasing by 57 yuan per ton. For urine, the sales price was 2,134 yuan per ton. And the methanol, the sales price was 1,767 yuan. And the ammonium nitrate was 2,101 yuan per ton. The unit sales cost of main coal chemical products due to the comprehensive influence of factors such as the reduction of raw coal cost, unit sales cost of polyolefin was 6,015 yuan per ton on year decrease of 56 yuan. Unit sales cost of urine is 1,527 and that of methanol was 1,781 and that of Ammonium nitrate was 1,288 yuan per ton. Equipment business output was coal mine equipment was 7.72 billion yuan down 12.3%. Our financial business, the profit was 1.078 billion yuan up by 11.3%. Then the main financial indicators next. In the first three quarters of 2024, we have achieved operating income of 140 billion yuan decreasing by 10.1%, and the net profit attributable to shareholders was 14.6 billion yuan, and 15.63 billion yuan under international accounting standards. And the net cash flow was 21.7 billion yuan down 1.47 billion, Basic earnings per share was 1.10 yuan down 12.7%. And the asset liability ratio was 47.1% down 0.6%. Main profit increase and decrease factors. Main profit increasing factors in the first three quarters. Firstly, the unit sales cost of self-produced commercial coal decreased. Profit increased by 821 million yuan. And also the self-produced commercial coal decreased by 8.19 yuan per ton. And financial expenses decreased and profits increased by 414 million yuan. So the other factors is something like 97 million yuan. So given the pricing influences, I think that's the main variable affecting our profitability. And the investment, the earning has also down, and the impairment losses is somewhere 200 million something. And for the coal machine, profit decrease is 215 million yuan. So that's the first three quarters, the key financial indicators. Next, the fourth quarter key arrangements and actions. China Coal will continue to thoroughly study and implement the spirit of the third plenary session of the 20th CPC Central Committee, focusing on high-quality development, continuing to strengthen management, and constantly improving the quality and efficiency. We will focus on the following tasks. Firstly, we need to deliver a good job in safety management and safe production. So we need to scientifically and reasonably organize production, overhaul, repair, conditioning, orderly arrange maintenance, strengthening equipment maintenance. And we also need to respond to national policies to meet peak and also fluctuated demands in winter. And also, we need to play the full role to central enterprises' objectives as energy supply and price stability for improving the quality of operation, maintaining good momentum of cost control, controlling unproductive part costs and expenses, speeding up the collection of counts, and clearing the two funds. So the management will be focusing on the safe and efficient development to deliver the objectives and targets we set out for 2024 so that we would also like to build up a solid foundation for next year's operations. So that's all for the brief introduction of the previous three quarters. Let's go into QA next.