1. Overview of the incident Anyuan Coal Industry (600397) released an interim performance report. The company achieved operating income of 2,650 billion yuan in 2015, a year-on-year decrease of 62.63%; realized net profit attributable to shareholders of listed companies - 112 million yuan, a year-on-year decrease of 642.97%; net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss was -118 million yuan, a year-on-year decrease of 971.78%. 2. Analysis and judgment of the volume and price of self-produced coal and coal trade have fallen sharply, and revenue has declined sharply. Affected by resource allocation conditions, changes in production conditions and market changes, in January-June, 2.476 million tons of commercial coal were sold, a year-on-year decrease of 18.25%; the average price of commercial coal was 433.78 yuan/ton, a year-on-year decrease of 13.19%. In the first half of the year, the company improved the quality of trade and reduced the volume of coal trade, and achieved trade sales volume of 2,6701 million tons, a year-on-year decrease of 40.40%; the sales price was 450.96 yuan/ton, a year-on-year decrease of 12.26%. The improvement in the quality of coal trading and mining materials sales business led to an increase of 0.76% in the company's overall gross margin. Due to falling coal prices, the gross margin of self-produced coal declined significantly, to 8.71%, down 8.70% year on year; gross margin increased to 1.79% and 8.75%, respectively, up 0.78% and 7.60% year on year; the company's overall gross margin was 5.50%, up 0.76% year on year. The P2S model of the Jiangxi Coal Trading Center is running well and is expected to become the company's future profit focus. The e-commerce platform and Internet financial platform of Jiangxi Coal Trading Center Co., Ltd. have been launched one after another and are running well. The innovative P2S business model has successfully connected financial capital with the coal supply chain, solved capital bottlenecks in the supply chain, and is expected to become an important profit channel for the company in the future. The company's future prospects: group asset injection, state-owned enterprise reform. The group company's Kengkou power plant, photovoltaic projects, and coal-to-water and gas projects are in the early stages of investigation, and there are expectations that listed companies will be injected into listed companies for incubation in the future; the commencement of construction of the Xinyu coal-power integration project in cooperation with Datang is expected to increase the company's profits. As the only listing platform and energy sector development platform under the Jiangxi Energy Group, the state-owned enterprise reform will greatly improve the company's ability to integrate resources. 3. Profit forecast and investment recommendations The company's 2015-2017 EPS is expected to be 0.00 yuan, -0.01 yuan, and 0.01 yuan, and the corresponding PB will be 1.9 times, 1.9 times, and 1.9 times, respectively, giving a “careful recommendation” rating. 4. Risk warning: coal prices have declined sharply, macroeconomic downturn continues, and systemic risks increase