The company's net profit declined sharply in '13. In 2013, the company achieved operating income of 20.55 billion yuan, up 2.04% year on year; operating costs were 18.815 billion yuan, up 4.69% year on year; net profit attributable to parent company shareholders was 43 million yuan, down 89.43% year on year; and basic earnings per share of 0.05 yuan. Among them, revenue for the fourth quarter was 5.832 billion yuan, down 19.66% year on year, up 43.49% month on month; operating costs were 5.337 billion yuan, down 5.61% year on year, up 47.43% month on month; net profit loss attributable to parent company was 0.3 billion yuan, down 100.86% year on year and 111.6% month on month. The trading business accounted for 75.86% and was in a state of loss. The company's materials distribution business revenue was 15.552 billion yuan, accounting for 75.68% of total revenue, revenue up 8.76% year on year; cost was 15.312 billion yuan, up 8.65% year on year, and gross margin was only 1.54%. We believe that the company's trade business has mainly increased the size of the company; in fact, it is in a state of loss. In 2013, the company's coal business accounted for 22.51% of revenue, and gross margin decreased by 3.96 percentage points. In 2013, the company's raw coal production was 11.19 million tons, up 0.72% year on year; coal business revenue was 4.627 billion yuan, accounting for 22.51% of total revenue, revenue down 12.03% year on year; coal business costs were 3.13 billion yuan, down 6.56% year on year; gross profit per ton of coal was 134 yuan/ton, down 38 yuan/ton year on year; and coal business gross margin was 32.36%, down 3.96 percentage points year on year. The coal business is still the company's main source of profit. In 2013, the Xinzheng Coal Mine, Baiping Coal Mine, and Jiaojiao Second Mine achieved net profit of 500 million yuan, an increase of 6.43% over the previous year; the company achieved a total net profit of only 211 million yuan. Thus, it can also be launched as a trading business, which accounts for a relatively large share of revenue, and is currently losing serious money. Electricity and rail transportation businesses account for a small share. In 2013, the company's power generation capacity was 388 million kilowatt-hours, down 1.77% year on year; electricity revenue was 172 million yuan, down 1.62% year on year; electricity costs were 182 million yuan, down 10.84% year on year, and electricity gross profit loss was 0.1 billion yuan. Railway transportation business revenue was 41 million yuan, up 17.02% year on year; cost was 021 million yuan, up 15.19% year on year; and gross margin was 50.01%. The revenue of the two businesses accounted for only 1.04% of total revenue, and the company's expenses for the period decreased by 0.58 percentage points. The company's expenses rate for the 13-year period was 5.51%, down 0.58 percentage points from the same period last year. Among them: the sales expenses rate decreased by 0.19 percentage points, the management expenses rate decreased by 0.86 percentage points, and the financial expenses rate increased by 0.47 percentage points. Notes receivable and accounts receivable have grown substantially. At the end of 2013, the company's notes receivable were 954 million yuan, an increase of 44.46% over the previous year; the company's accounts receivable were 279 million yuan, an increase of 42.54% over the previous year. The main reason is the slump in the coal market, there are few monetary and capital settlements for raw coal sales, and the increase in bill settlements; at the same time, it has become more difficult for coal mines to recover this year, and accounts receivable have increased rapidly. Investment rating: The company's coal market is sluggish, and its own material distribution business is huge, but profits are average. These factors are difficult to improve in the short term. We expect the 2014-2015 EPS to be 0.04 and 0.04 yuan/share, respectively. The company's valuation has no advantage and maintains a “neutral” rating. Risk warning: The macroeconomic downturn exceeds expectations; the risk of a sharp rise in policy costs.