About SILK RD ENERGY Company

Silk Road Energy Services Group Limited (Silk Road Energy Services Group Limited) is a Hong Kong-listed company whose main business is providing coal mining services, heating services, trading other mineral products, and providing money lending services. The Group is one of the main suppliers of mine construction engineering, mechanical equipment installation, coal production and related technical services in the Inner Mongolia Autonomous Region of China. Future development: The provision of coal mining services remains the Group's main source of revenue. Since the effective policies implemented by the Chinese government have gradually balanced supply and demand in the coal market, coal prices have risen sharply, and the market has also been able to recover. Due to market improvements, the financial situation of miners also improved, but the relevant improvements were not reflected in the mining service industry. This is because miners continue to implement strict cost control measures against mining service providers (such as the Group). As a result, due to intense market competition, the Group did not benefit from the relevant improvements. Furthermore, the Group is also facing the problem of increasing production costs (especially labor costs). As China's urbanization process accelerates and environmental regulations speed up the process of converting boiler coal to gas, domestic demand for heating systems has increased, and it is expected to maintain this growth trend in the next few years. In line with the Group's strategy to develop environmentally friendly heating business, the Group is seeking further development in more profitable regions (such as Beijing). In view of fluctuating mineral prices, the Group will pay close attention to changes in the macroeconomic situation and carry out trading operations with caution. As for the Group's money lending business, the Group will strengthen control over loans granted and monitor its outstanding loans receivable in order to reduce the credit risk of this business. Looking ahead, the Group will maintain the healthy development of different business categories to strengthen its business portfolio and diversify its revenue streams. Within the scope of financial resources, the Group is considering entering new business areas, such as the traditional Chinese medicine and health products market, which the directors believe has huge potential and business opportunities, so as to expand its revenue sources, thereby creating greater value for shareholders.