SHENHUO COAL&POWER(SZ:000933)2022-12-08 05:36Group 1: Company Performance Overview - The company experienced a net profit of -35,556.88 million yuan in the first half of 2014, a year-on-year decline of 262.81%, marking the most challenging period since its establishment [2] - The average profit per ton of coal was nearly 100 yuan, with the coal segment generating a net profit of 180 million yuan for the company [8] Group 2: Production and Cost Analysis - The production of aluminum products in the first half of 2014 was 172,200 tons, with an average production cost of 10,222 yuan/ton for the high-precision aluminum alloy project, which is 539 yuan/ton lower than planned [5] - The electricity cost increased by 80 million yuan due to maintenance of a 600,000 kW generator set, contributing to a slight increase in losses in the second quarter [3][4] Group 3: Project Development and Capacity Expansion - The Xinjiang project aims to establish a "coal-electricity-metallurgy" industrial chain, with a planned capacity of 800,000 tons/year for high-precision aluminum alloy and 400,000 tons/year for carbon products [4] - The company’s coal mine capacity has been increased from 1.2 million tons/year to 2.4 million tons/year, with additional projects under development expected to be operational by the end of 2015 and 2016 [9] Group 4: Resource Procurement and Market Strategy - The company sources one-third of its alumina from imports, with domestic procurement from various suppliers, aiming to reduce costs based on market price fluctuations [6][7] - The company is collaborating with Central South University to improve the processing of low-grade bauxite resources, expanding the range of usable resources [7]