Losses increased in the 3rd quarter compared to the same period last month. The company achieved net profit of 430 million yuan in the first three quarters, equivalent to earnings per share of -0.42 yuan. Among them, the single-quarter EPS was 0.02 yuan, -0.19 yuan, and -0.25 yuan, respectively, and the third-quarter performance loss was 255 million yuan, up 109.9% year on year and 29.9% month on month, mainly due to insufficient downstream demand and the continued decline in coal prices. Production in the third quarter increased 3% year on year, and tons of coal lost 91 yuan. The first three quarters produced 7.6537 million tons of coal, a year-on-year decrease of 6.26%, and coal sales volume was 7,537,900 tons, a year-on-year decrease of 2.72%; of these, the company's coal production in the third quarter was 2,653,700 tons, up 3.07% year on year. The price of tons of coal in the first three quarters was 262.52 yuan, a year-on-year decrease of 27.91% or 101.64 yuan, a year-on-year decrease of 263.85 yuan, a year-on-year decrease of 2.33%, and gross profit of tons of coal -1.33 yuan. Regardless of the investment income from the sale of Fangzheng Securities, the company's coal business lost 700 million yuan in the first three quarters, equivalent to a loss of 91 yuan per ton of coal. Pay attention to the reform of state-owned enterprises in Henan and look forward to the injection of group assets. The total approved production capacity of Zheng Coal Group is 37.85 million tons/year, 19 pairs of directly subordinate mines; the total approved production capacity of listed companies outside the body is 26.95 million tons/year, including 12 pairs of directly subordinate mines (approved production capacity is 6.46 million tons/year); 2 mines under construction (design production capacity 5.1 million tons/year); and 100 merged and restructured mines (production capacity 10 million tons/year). The production of Zheng Coal Group in 2012-2014 was 20.62 million tons, 20.7 million tons, and 18.58 million tons. Excluding listed companies, the Zheng Coal Group produced 7.63 million tons in 2014. Other coal mines of Zheng Coal Group are expected to be injected into listed companies by 2018. Results for 15-17 are expected to be -0.60 yuan, -0.90 yuan, and 0.001 yuan. Given the weak profitability of the company's main business, we expect the company to actively seek transformation. Until the company's transformation is clear, we are giving a holding rating for the time being. Risk warning: The market capitalization is small, and actively seeking transformation or state-owned enterprise reform may stimulate stock prices.