shanxi antai group (600408.SH) announced that in order to actively respond to the volatile risks in the coking coal market, it strives to improve its
Zhithong Finance APP news, shanxi antai group (600408.SH) announced that in order to actively respond to the volatile risks in the coking coal market, it seeks to improve its operation through flexible transformation to reduce losses in coking coal products. After market research and negotiations with willing clients, the company has already engaged in entrusted coking business with Xiangfen County Changshengping Coal Industry Co., Ltd. Since the launch of this business, the cooperation between both parties has been smooth. According to the company's financial department's calculation, this business model has significantly reduced the losses of self-operated coking coal products under the same conditions, which is of positive significance to improving the company's business performance. Based on the forecast of the future trend of the coking coal market for a period of time, the company aims to minimize the risks of volatile coal and coking coal markets, and has decided to seek partners with similar intentions to carry out similar businesses.
After preliminary negotiations, the company has reached a cooperation agreement with Jiexiu Jie'an Coal Chemical Co., Ltd. (referred to as "Jie'an Coal Chemical Company"). The company's wholly-owned subsidiary, Shanxi Hong'an Coking Technology Co., Ltd. (referred to as "Hong'an Coking"), has been entrusted by Jie'an Coal Chemical Company to process and produce coking coal using its own equipment. The rights to the produced coking coal and the accompanying raw coal gas belong to Jie'an Coal Chemical Company, and Hong'an Coking charges the corresponding processing fees. Since the raw coal gas still needs further processing and Jie'an Coal Chemical Company does not have the processing capability, they have agreed to resell the raw coal gas on-site to Hong'an Coking.
It is reported that this cooperation helps the company to avoid price fluctuations of coal and coking coal products, receive stable processing fees and production income, and reduce business risks. During this and the previous entrusted processing business cooperation, the company's coking coal production and sales volume and revenue will be significantly reduced, and may even no longer produce coking coal on its own. However, this will correspondingly reduce the operational losses of coking coal products in the current market, which is of positive significance to improving the company's business performance.