In 2010, it turned a loss into a profit, earning 0.04 yuan per share. In 2010, the company's operating income was 4.9 billion yuan, up 32.16% over the same period last year; the total profit was 24 million yuan, with a loss of 405 million yuan in the same period last year; the net profit attributed to the parent company was 40 million yuan, compared with a loss of 4.14 yuan in the same period last year, and basic earnings per share was 0.04 yuan. In the same period last year, the company did not distribute it.

Coking slightly improved, reversing losses depends on investment income. The coking market improved slightly in the second half of 2010 due to production suspension and production restrictions, with coke gross profit margin of 0.99%, an increase of 1.45% over the same period last year, and pig iron gross profit margin of 10.55%, an increase of 20.92% over the same period last year. Coke gross profit margin was 0.8% and pig iron gross profit margin was 6.61% in the first half of 2010, which improved significantly in the second half of the year. Although the coking market has improved slightly, the gross profit margin of the products is still low. The turnround in 2010 is mainly due to the investment income of 37.44 million yuan achieved by selling China Minsheng Banking Corp's equity in the reporting period.

The company benefits from industry integration. The distribution of Shanxi coking industry is scattered, 227 coking enterprises are distributed in more than 60 counties, the industrial concentration is low, the per capita production capacity is less than 700000 tons, the level of industrial technology is low, and the coke ovens with a height of 4.3m or less account for 75.28% of the total production capacity. Shanxi strives to retain about 150 independent coking enterprises by the end of 2011 and 60 independent coking enterprises by the end of 2015. Through integration, the supply situation of the industry will be greatly improved and profitability will be enhanced; the company belongs to the leading coking enterprise in Shanxi, with a production capacity of 2.4 million tons and blast furnaces of more than 6 meters. The company will be the main enterprise of Shanxi integration and will enjoy preferential policies in the process of integration.

The introduction of coke futures is conducive to price discovery. Coke futures will be launched in the near future, we believe that the introduction of futures is conducive to coke price discovery, help the company to organize production reasonably, but also help the company to hedge, and avoid the market risk caused by large fluctuations in coke prices.

Investment rating will not be granted for the time being. The profitability of the industry has not been improved, there is cost pressure above, steel suppression below, the recovery of profitability first look at the strength of industry integration, the second look at the profitability of the iron and steel industry, and the third look at the degree of coking coal resources acquisition. The short-term catalyst comes from the integration of Shanxi industry and the launch of coke futures, but the profitability has yet to be restored. this year, the company focuses on industry integration and the release of integrated coal mine production capacity that the company participates. in view of the uncertainty of the process and the degree of benefit, we will not give investment rating for the time being, and we will continue to track it.