In July of the same year, Fushan Energy successfully acquired three high-quality coke coal mines in Liulin County, Shanxi Province. There are no coal mines, and there are no Jin Jiazhuang coal mines and Zhaiyadi coal mines. The mining area is 3 1.89 square kilometers, and the annual production capacity of raw coal is 6.3 million tons. Since then, the Group's business development in the coking coal field has been confirmed. Fushan Energy has both coal resources and industrial chain of coal washing plants.
Since the acquisition of the above three China subsidiaries was completed on 25 July 2008 (the "Completion Date"), the Group has been engaged in coal mining business and producing coal washing plants in Shanxi Province. All three coking coal mines are operated by automatic mechanical mining and central computer monitoring system, which can not only improve the production capacity, but also meet the national requirements in terms of safety, environmental protection and equipment. Three high-quality coking coal mines brought the Group a net profit of over HK$ 847 million within five months after the acquisition.
Business prospects:
Looking into the future, it is predicted that the world economic situation will remain very severe in 2009. The operating environment of China coal industry is still full of difficulties and challenges. In order to revitalize China's economy, the central government vigorously launched a 4 trillion yuan stimulus plan to revitalize the economy, expand the development of infrastructure projects, and stimulate employment and domestic demand. This plan will play a supporting role in the development of the steel industry, and the coal industry, as a raw material for steel production, will also benefit from it. At the same time, in 2009, the state decided to improve the concentration of the coal industry, continue to gradually close small coal mines in China, and suspend the application for coal exploration rights until March 20 1 1. It is expected that this resource integration measure will keep the supply of coking coal in China tight, and the plan will benefit coking coal suppliers with production scale such as Fushan Energy.
Facing the challenges and opportunities in 2009, the Group will continue to focus on production and investment in Shanxi Province, China. Thanks to operational knowledge, professional technology, huge sales channels and supporting infrastructure, as well as the improvement of the group's economic scale, it will accelerate the company's future development and further enhance the operational efficiency and competitiveness of the company's existing business.
In terms of business development, the Group will continue to actively enhance its own production capacity. At present, Shanxi Province is building three new coal preparation plants, namely Jin Jiazhuang Coal Preparation Plant, Zhaiyadi Coal Preparation Plant and Jinshan Coal Preparation Plant. Related projects are still in progress and are expected to be put into production in 2009. By then, the Group's annual clean coal production capacity is expected to increase to about 65,438+0,000 million tons. Jin Jiazhuang Coal Preparation Plant is adjacent to Jin Jiazhuang Coal Mine, with an annual washing capacity of 3 million tons. It is expected to be completed in the first quarter of 2009. Zhaiyadi Coal Preparation Plant is also adjacent to Zhaiyadi Coal Mine, with an annual washing capacity of 2,654.38+million tons, which is expected to be completed in the fourth quarter of 2009. Jinshan Coal Preparation Plant is located in Guojiagou, Liulin County, with an annual washing capacity of 5 million tons. It is expected to be completed in the fourth quarter of 2009.
The Group is actively expanding its sales network from coking plant to large steel producers, and will formulate effective business and pricing strategies due to the high quality of the company's products, so that the Group's coking coal business can develop continuously and steadily. According to the long-term strategic cooperation agreement signed with Shougang in 2008 and the new sales agreement signed with Tangshan Iron and Steel Group, Wuhan Iron and Steel Group, Inner Mongolia Baotou Steel Group and Taigang Group, it is predicted that in 2009, Fushan Energy's customer base will be transformed into a large steel producer, which will not only further expand the company's high-quality customer base and increase the revenue source of its coking coal business, but also increase the sales proportion of clean coal at a higher sales price, thus enhancing the profitability of the group.
In order to strengthen the transportation capacity, the group also plans to build a special railway line to connect the coal mine with the national railway transportation station. At the same time, the company also actively discussed the feasibility of resource reorganization with relevant departments in China, with a view to expanding coal resources.
In terms of expanding the production capacity of existing coal mines and expanding the resources of new coal mines, the Group actively negotiated merger and acquisition arrangements with coal mine operators, and discussed the feasibility of acquiring and reorganizing resources with relevant departments in China. At the same time, we also strive to obtain a mining license for mining new coal mines, thereby expanding the Group's coal resources, consolidating the Group's position in the coal industry and laying a solid foundation for its long-term plan.
The information comes from the financial statements of listed companies.