In the first half of 2015, the company announced that it achieved operating income of 2.9 billion yuan, a year-on-year decrease of 34%, realized net profit of 230 million yuan, net profit after deduction - 160 million yuan, and EPS-0.1 yuan/share. The sharp drop in the volume and price of the coal business caused a sharp loss in the first half of the year. We expect the coal industry to remain sluggish in the second half of the year, and the company's operating conditions will hardly improve significantly. The company's EPS for 2015, 2016, and 2017 is expected to be -0.18 yuan, -0.18 yuan, and -0.19 yuan respectively, giving it a neutral B rating. Affected by the downturn in the industry, coal production and sales have all declined sharply. The company announced that commercial coal production in the first half of the year was 8.19 million tons, and commercial coal sales volume was 7.37 million tons, down 16% and 16%, respectively, compared with the same period last year. The main reason is the overall downturn in the coal industry, and the continued deep drop in coal prices has led to losses in almost the entire industry. The company still falls into a quagmire of losses on the basis of improving quality and efficiency and strictly controlling costs. The coal sector's revenue declined sharply, and losses continued to increase. In the first half of the year, revenue of 2.9 billion yuan was achieved, and the volume and price of coal fell sharply, resulting in a 34% decrease compared to the same period last year, with net profit attributable of 230 million yuan, net profit after deduction - 160 million yuan, and earnings per share - 0.1 yuan/share. The company's production and sales declined in the first half of the year. The average sales price in the first half of the year was 256 yuan/ton, down 115 yuan/ton from 371 yuan/ton in the same period last year, or 31%. The sharp drop in the volume and price of the coal business caused a sharp loss in the first half of the year. We expect the coal industry to remain sluggish in the second half of the year, and the company's operating conditions will hardly improve significantly. It is estimated that the annual revenue will reach 4.9 billion yuan, down 35% from the previous period. Costs have declined, but they are still facing losses. In the first half of the year, the company's operating cost was 2.5 billion yuan, down 23% year on year; production cost of tons of coal was 210 yuan/ton, down 18% year on year; gross profit per ton of coal was 47 yuan/ton, down 60% year on year; net loss of tons of coal was 19 yuan/ton, down 206% year on year. Profit prediction and rating: Give a “Neutral-B” rating. Coal prices continue to be sluggish, and it is difficult to reverse in the short term. The company's EPS is expected to be -0.18 yuan, -0.18 yuan, and -0.19 yuan respectively in 2015, 2016, and 2017, giving it a neutral B rating. Furthermore, the company announced last month that Qinghai Yihai Energy Co., Ltd. promised to increase its holdings of the company's shares in the near future in order to maintain the stability of the securities market and the company's stock price. The increase in holdings will not be less than 10% of the cumulative reduction in holdings in the past six months, and that it will not reduce its holdings within 6 months after the increase is completed, which is worth paying attention. Risk warning: Economic fundamentals are recovering less than expected.