SCC(SH:600740) Shang Hai Zheng Quan Bao·2025-04-25 03:00Core Viewpoint - The company, Shanxi Coking Coal, is facing significant operational pressure due to weak demand in the downstream steel industry and declining prices in the coking coal market, leading to a substantial drop in profits for the coking industry overall [5][9]. Company Overview - Shanxi Coking Coal primarily engages in the production and sale of coke and related chemical products, with metallurgical coke as the main product and various chemical by-products [5]. - The company has reported a decrease in production and sales across several key products, including a 2.73% decline in coke production to 2.8291 million tons and a 14.20% drop in operating revenue to CNY 750.68 million [9]. Financial Performance - For the reporting period, the company achieved an operating profit of CNY 24.33 million, down 80.84% year-on-year, and a net profit attributable to shareholders of CNY 26.31 million, a decrease of 79.37% [9]. - The proposed profit distribution plan for 2024 includes a cash dividend of CNY 0.2 per 10 shares, totaling CNY 51.24 million, which represents 19.48% of the net profit attributable to shareholders [4][74]. Market Conditions - The coking market is characterized by weak demand and falling prices, with the overall profit levels in the coking industry experiencing a significant decline due to insufficient cost support from upstream materials and increasing environmental compliance costs [5][9]. - The company is expected to maintain a certain level of liquidity to ensure stable operations amid these challenging market conditions [77]. Governance and Compliance - The company’s board and supervisory committee have confirmed the accuracy and completeness of the annual report, ensuring compliance with relevant laws and regulations [1][11]. - The company has engaged Lianda Accounting Firm to provide a standard unqualified audit report for the financial statements [3]. Future Outlook - The company plans to continue investing in facility upgrades and environmental compliance to enhance operational efficiency and competitiveness in the market [78][81]. - The board has proposed a "valuation enhancement plan" in response to the stock price being below the net asset value per share for 12 consecutive months [59].