Shanxi Coking: the year-on-year decrease of net profit in 2019 is 63% - 75%

Shanxi Coking Co., Ltd. announced recently that after preliminary calculation by the financial department, it is estimated that the net profit attributable to shareholders of Listed Companies in 2019 will be 384 million yuan to 564 million yuan, which is expected to decrease by 968.6506 million yuan to 1148.6506 million yuan compared with 1532.6506 million yuan in the same period of last year, a year-on-year decrease of 63.20% - 74.95%. Shanxi Coking said that since 2019, due to insufficient domestic demand, financial deleveraging and other factors, the downward pressure on the economy is relatively large, the domestic economic growth slows down, the coking industry's prosperity falls, the domestic metallurgical coke market develops first and then suppresses. Since the second quarter, it has fallen in shock, showing a weak downward trend throughout the year, the chemical product market also shows a downward trend, and the product price continues to decline. The company's production and operation are affected by the market environment. The price of coke and chemical products fluctuates greatly throughout the year. The product sales price shows a downward trend with the market situation as a whole. In terms of raw material procurement, the coking coal market as a whole maintains a high and volatile trend, and the coal price is higher than that in 2018. The company adheres to the goal of "long-term safe and stable operation of production units", and takes various measures in management improvement, cost accounting, potential tapping and efficiency increasing, etc. However, due to the above factors, the company's operating profit has declined significantly. In addition, the net profit attributable to shareholders of the listed company during the non recurring profit and loss impact forecast period is about - 24.6684 million yuan, and the non recurring profit and loss amount in the same period of the previous year is 238.32 million yuan, which is negative in the current period mainly due to the shutdown expenses during the non seasonal and non repair periods, and the non recurring profit and loss has a certain impact on the company's performance forecast; the accounting treatment has no significant impact on the company's performance forecast. Meanwhile, the main business data released in the fourth quarter of 2019 show that the coke output in the fourth quarter of 2019 is 802400 tons, an increase of 11.38% year on year; the coke sales volume is 788400 tons, an increase of 6.55% year on year; the average sales price is 1491 CNY/ton, a decrease of 6.04% year on year; the sales revenue (excluding tax) is 1.175 billion yuan, an increase of 0.11% year on year.