The financial crisis had a significant impact on Yankuang Group

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　　First, from the perspective of the coal industry, international coal prices have declined from high levels; the spot price per ton of thermal coal in Australia has dropped from a peak of $190.95 last year to $79.7. With the global economy declining and energy demand falling, coal prices are likely to continue dropping this year. At the end of last year, national inventory reached 230 million tons, and an additional 200 million tons of production capacity is expected this year, making the supply surplus in the market even more pronounced. Since last October, Yankuang Group has reduced prices on four consecutive occasions. Currently, due to seasonal factors, the total inventory level has decreased, demand for refined coal has picked up, but demand for blended coal remains weak. Due to the unresolved conflict between market pricing mechanisms and electricity price control mechanisms, no agreement was reached in the negotiations between coal suppliers and power producers at this year’s coal ordering meetings; it is expected that the trends in the coal market will become clearer after the first quarter. 　　Secondly, from the perspective of the coal chemical industry, affected by falling international oil prices, both the international and domestic markets have seen rising costs, increasing inventory levels, and declining profitability; most of the major domestic coal chemical companies have been forced to suspend or partially suspend their operations. The prices of the group company’s main products such as urea, methanol, acetic acid, and coke have fallen below their cost levels. In particular, affected by the sharp drop in international oil prices and the continuous increase in import volumes, the price of methanol has kept falling, posing significant difficulties and pressures on the coal chemical production and operations of Yankuang Group. 　　Third, from the perspective of the coal, electricity, and aluminum industry, the international aluminum market remains sluggish; the entire domestic electrolytic aluminum sector is operating at a loss, there is severe overcapacity, and prices are lower than costs. At current market prices, Yankuang will incur a loss of around 5,000 yuan per ton of aluminum. :'( :'( :'( This situation isn’t limited to Yankuang; it’s likely that all coal chemical companies are facing it. Conversely, if even Yankuang faces operational difficulties, one can only imagine how dire the situation is for other smaller coal chemical companies