In the first half of 2006, the company's coal prices fell year-on-year. There was downward pressure on coal prices across the country in the second half of the year. The company's coal prices are expected to follow the market and continue to decline. It is estimated that favorable changes in coal prices in 2006 contributed no less than 120 million dollars to the company's performance.

The current feed-in price adjustment for thermal power in Hunan is 1.85 points, which is higher than the national average of about 1 point. The company's profit is expected to be around 70 million.

2006 was the peak of installed capacity and commissioning in Hunan. The total utilization rate of thermal power units in Hunan is expected to drop by nearly 20% in 06-07, exceeding the national average, offsetting favorable changes in coal prices.

Jinzhushan expanded 2×600,000 kilowatt units were put into operation. The contribution to the company's performance is expected to be around 150 million yuan in 2007. It became a recent highlight, while the planned nuclear power project became the biggest long-term focus.

Judging from valuations, the company's price-earnings ratio was clearly high in 2006, and is expected to fall to the average of high-quality companies in the industry in 2007. The company's valuation advantage is that its net market ratio is only 0.8 times. Due to the excellent quality of power assets, a net market ratio of 0.8 times will effectively resist falling stock prices, and there is some room for improvement, but considering the risk of bad debts, we tend to be cautious about the company's ratings and temporarily give it a “neutral” rating.