The company announced today that its annual operating income was 3.74036 billion yuan, down 41.36% from the same period last year, and its net profit was-447.82 million yuan, down 2928.13% from the same period last year. Earnings per share-0.46 yuan, lower than we expected-0.33 yuan.

According to the announcement, the second coke oven of the second phase of the 2 million t / a coking technical renovation project entered the trial production stage on February 2, 2010. the company's coke production capacity reached 2.4 million tons, an increase of 37% over the same period last year. The company is also actively moving upward, mainly reflected in the resource integration with Fenxi Mining and other main bodies in Luliang, Jinzhong and Jiexiu, but the company can only participate in shares, and because of the high costs at the beginning of the integration, in the past two years, the significance of the company's participation in the integration lies more in the guarantee of the upstream raw material supply, while it is too early to share the benefits brought by the integration of resources.

The company's 800000 tons of fine slag powder project can be put into operation in the first half of the year. Because there is no cost accounting for waste slag, the project will start accounting after reaching production, but the actual cost of raw materials is basically zero. However, considering that there is only one quarter of full production this year and there will be fixed costs such as amortization after completion, it is less likely to contribute to the performance, but there will be performance release from 11 years.

Profit forecast.

We maintain the previous 10-year profit forecast for the company, 10-year earnings per share of-0.44 yuan.

Investment advice: the company is still mainly based on the main coke industry in the future, bigger and stronger, but subject to the downturn of the industry, may still lose money this year. However, the company is actively extending upstream and downstream, with the gradual change of the internal integration pattern of the coke industry, and combined with the company's more flexibility in cost control as a private enterprise, we believe that the company has the value of continuous attention and temporarily maintains a "neutral" rating.