Blue Flame Holding(SZ:000968)2022-12-04 08:36Group 1: Company Overview and Product Offering - Shanxi Blue Flame Holdings Co., Ltd. focuses on the sale and utilization of coalbed methane (CBM) and coal mine gas, with products categorized based on extraction methods and methane concentration [1][2] - The company primarily supplies CBM to regions including Shanxi Jincheng, Taiyuan, and parts of Henan and Hebei [2] Group 2: Industry Development and Government Support - Shanxi Province emphasizes the development of the CBM industry as a key strategy for resource-based regional transformation and energy structure adjustment [2] - The provincial government aims for a CBM extraction volume of 20 billion cubic meters by 2020, with surface mining capacity reaching 30-40 billion cubic meters per year, and the total industry chain output value expected to reach around 100 billion yuan [2] Group 3: Fundraising and Project Progress - The company has adhered to regulations regarding the management and use of raised funds, with procurement processes for fracturing equipment underway as of June [2] - Ongoing market research for drilling equipment is being conducted, while construction for certain projects has not yet commenced [2] Group 4: Pricing and Subsidy Information - CBM prices are expected to rise seasonally, particularly in the fourth and first quarters, influenced by market supply and demand [3] - The provincial financial subsidy for CBM development increased by 0.05 yuan per cubic meter in 2015 and by 0.1 yuan per cubic meter in 2016, indicating a favorable outlook for subsidy policies [3] Group 5: Production Costs and Management Strategies - The extraction costs for CBM vary by region due to differing geological conditions and production volumes [4] - The company employs strategies to stabilize production in established areas and increase output in new areas, focusing on research and development to mitigate the impact of coal mining on extraction volumes [4]