According to the announcement released by FS Anthracite (01738), the group is expected to record a net loss attributable to owners of the parent for the six months ending on June 30, 2024...

Compared with previous years, the group expects production to continue at a relatively low level in the near future. The group's two major coal mines, Yongsheng coal mine and Dayun coal mine, have experienced several gas limit exceeding incidents since October 4 and October 21, 2023, and have been temporarily shut down and rectified several times in accordance with the requirements of the Jinsha County Energy Bureau. Although the group has obtained the official production resumption approval from the Jinsha County Energy Bureau, the delayed resumption, the geological complexity of the current mining working face, the optimization of the mining team, and the impact of the suspension of mining work due to the lag in excavation construction would continue to have adverse effects on the coal production, coal quality, and coal sales prices in 2024.

The decrease in revenue and gross profit for the six months ending on June 30, 2024 was mainly due to: (i) the operational difficulty caused by the geological complexity of the current mining working face and the temporary shutdown mentioned above; (ii) the decline in the price of the mainland China coal market in 2024 compared to 2023, combined with a considerable proportion of coal products sold at the regulated prices to power plants; and (iii) strict safety and environmental protection regulatory environment, which led to the sharp decline in coal production and sales volume, the rise in unit production cost, and the decrease in average selling price of the group's coal products.