Recently, consolidation has been the main trend, and the coal-based market has pushed it up some time ago

The 2006 annual report of Xishan Coal and Electricity (000983) was released on March 8, 2007. Due to the comprehensive Coal prices have dropped, and last year the company experienced a phenomenon of increasing revenue without increasing profits. The company also launched a profit distribution plan of paying a cash dividend of 4 yuan (tax included) for every 10 shares as a return to investors.

The company faces many challenges: First, the contradiction between the slowdown in coal market demand and the rapid growth in production capacity has become increasingly prominent. The advancement of structural adjustment and energy conservation and consumption reduction will slow down the growth in coal demand; second, Affected by policy capital increase factors, the company's coal costs will rise. In 2007, Shanxi Province will levy sustainable development funds, mine environmental management recovery deposits and coal mine conversion development funds from coal companies. In addition, the applicable tax standard for coking coal's resource tax will be from The company's current implementation of 3.2 yuan will be increased to 8 yuan, and the company's cost per ton of coal will increase significantly; third, the railway channel capacity does not match resource supply and market demand, and the contradiction between regional supply and transportation demand is still prominent.